April 2001
Filtration Industry Analyst
MARKET REPORT: The Growth of the Global Membrane Market Filtration Industry Analyst examines the global membrane industry as it bontends with global consolidation and increasing demands from end user industries. The worldwide market for membranes (including microfiltration, ultrafiltration and reverse osmosis) in 2000 was estimated to stand at US$6.55 billion. This is forecast to increase to US$9.7 billion in 2005 - a growth of 49%, and an annual average growth rate of 8.3%. The total global expenditure on membrane modules is also expected to exceed US$48 billion in the five year period 2000-2005. In the period covered by the report Profile of the International Membrane Industry - Market Prospects to 2005, the dominance of the American markets (North, South and Central) in the global industry will continue.
End-User Markets The main driving forces on the international membrane industry are external to it, and derive largely from the needs of those industrial commercial and domestic sectors that it serves. The strength or weakness of these sectors dictates how well the industry does financially. One of the largest markets for membrane modules in 2000 was the global chemical industry - with around an 18% share in the global market. This was slightly below the Wastewater processing industry that accounted for just under 20% of the worldwide membrane market. Both of these areas are expected to remain stable over the next live years One end user market that is expected to grow over the forecast period of the report is the Biotechnology industry. Split into two parts ~ the steady production of a range
Major Membrane Manufacturers A/G Technology
Corp
Cuno Inc domnick hunter Dow Liquid Separations Ionics Inc Koch Membrane McLeod
Systems
Inc
Russel Holdings
Plc
Millipore Minntech
Corp Carp
Nitto Denko Carp Norit BV Osmonics Inc Pall Carp PC1 Membrane
Systems
Sartorius AG Toray Industries Inc USFilter Corp W L Gore & Associates
of speciality chemicals by fermentation methods, and the high profile bioengineering industry ~ the biotechnology market for membrane separation equipment will have a significant part to play in the future growth of the membrane industry as a whole. Regional Markets The USA is the dominant force in the membrane industry currently holding around 28% of the global membrane module market. As a country it has taken the lead in membrane systems since the mid20th century. The industrial development in the region, especially the development of advanced separation techniques, has helped it to maintain this lead. Within Asia Japan is the major player within the industry accounting for approximately 15% of the market. Japan is still somewhat experiencing the effects of the fall of the Tiger economies in the early 1990s and is now being hit by new financial slowdowns - as it seems so is the rest of the world. While it does represent the second largest market for membranes, it is expected to be the slowest growing between 2000 and 2005. regional The biggest players within Europe are Germany, France and the UK. Germany is the third largest country in Western Europe, but it has the largest population and is economically the most powerful. It has a strong chemical industry, with the two largest such companies in the world, and has strong water and wastesystems, treatment water pharmaceutical and bioprocessing interests. This means that it also has a strong
market for membranes with a 2000 market value estimate1 at US$48 1 million. Consolidation As consolidation an d divestment continue to pla: an important role in the glob al filtration and separation n industry the past two year has seen the industry increas’ its acquisition activity ii moves to capitalise on marke share and realise the potentia of new industry sectors. The increasing impor tance of globalisation ha accelerated the emergence o an international supply an service network and acquisi tion can be a relatively cos efficient way of doing this Acquisition can not only ex pand a company’s geographi cal reach and product range but it also has the additiona 1 bonus of often eliminatin; g a competitor. Even in this issue we set the sell off from Fairey of it filtration interests to Parke Hannitin (see Page l), las month Severn Trent Service purchased Universal Aqu, Technologies Inc though it Purification Solutions divi sions (see Filtration Industr. Analyst, March 2001, pag’e 12). The trends in consolida tion are set to continue withi n the membrane industry fo some time yet. Source: Pyofile of the International Membrane Industry Market Prospects to 2005, Elsevier Advanced Technology
For further information on this market research study, please contact Amanda Arthur; Tel: +44 1865 843181; E-mail:
[email protected]