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Growth in Green Buildings Market Spurred by Rising Interests and Government Support Says Frost & Sullivan - The challenging economic environment affected the overall performance of the environmental industry, especially during the first half of 2009
Growth in Green Buildings Market Spurred by Rising Interests and Government Support Says Frost & Sullivan

 

PRZOOM - /newswire/ - Singapore, Singapore, 2010/01/12 - The challenging economic environment affected the overall performance of the environmental industry, especially during the first half of 2009.

   
 
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The period saw a decline in industrial production, and less waste generation, especially in export-oriented manufacturing sector. Both waste management and wastewater management industries experienced a dip in their revenues from their industrial and commercial customers. Revenues from the municipal sector, however, grew during the same period.

According to Frost & Sullivan's Asia Pacific Consultant of Environmental & Building Technologies Practice Ranajay Dasgupta, the market conditions improved in the latter half of the year as many countries came out of recession and industrial production gradually picked up. A full recovery is expected in 2010 - 2011.

"Waste management companies can expect a rise in revenues in the industrial sector as the economy rebounds in 2010 and industrial production is back to the level of pre-recession days. Earnings from municipal sector will continue to grow due to governments' spending on environmental infrastructure," he says.

He continues, "Solid waste recycling market is expected to grow in ASEAN at a compounded annual rate of 6.5% to 8.5% in the period 2010-2012. Water and wastewater markets will also grow in the region, with Singapore and Malaysian markets expected to grow at a compounded annual rate of 10% and 7.5% respectively in the period 2010-2012."

In terms of industry specifics, water treatment equipments manufacturers in Singapore and Japan will continue to increase their footprints in high-growth markets such as China and Middle East.

"Rising water shortages and cost reduction achieved through technical innovations are spurring the growth of desalination in Middle East and Northern China and water recycling in Australia. High urbanization rate in countries such as Indonesia will drive the growth of water and waste management markets in urban cities," says Dasgupta.

He adds, "Developed countries in the region such as Japan are unlikely to see major construction of new environmental facilities. However, there will be demand for renovation of existing facilities, most of which were constructed 50-60 years back."

Dasgupta identifies sectors that look promising in water and wastewater management to include desalination, recycling, recovery and 'energy from wastewater' solutions such as Upflow anaerobic sludge digestion blanket (UASB) Internal circulation (IC) reactors, and digesters.

Still the industry will continue to face challenges as growth in sectors such as 'waste to energy' has been slow and sporadic. "High capital requirements mean that the market will only exist in parts of the world where clear waste legislations exist. Participants in industrial waste management trying to penetrate countries such as Malaysia continue to face bureaucratic hurdles in obtaining licenses/permits," says Dasgupta.

After a stagnant or slight decline in growth, environmental markets in Asia Pacific are expected to pick up in 2010. Water and wastewater management markets will see a technology-led growth in recycle and recovery, reverse osmosis desalination and 'energy from wastewater' solutions.

"Combined pressures of waste management and energy efficiency requirements will drive the growth in the waste management market. The rising interest of market stakeholders, and support from the governments and green building associations will spur the growth in green buildings market in countries such as Australia, Singapore, South Korea, Hong Kong and Malaysia," says Dasgupta.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

 
 
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Growth in Green Buildings Market Spurred by Rising Interests and Government Support Says Frost & Sullivan

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