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Market Saturation and Small Size Constricting Market Growth in Australia Finds Frost & Sullivan - Escalating Healthcare costs and growing awareness Rev up the RWTE market in Australia
Market Saturation and Small Size Constricting Market Growth in Australia Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Sydney, Australia, 2011/08/08 - Escalating Healthcare costs and growing awareness Rev up the RWTE market in Australia.

   
 
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The uptrend in healthcare costs and rising consumer awareness are the main factors fuelling growth in the residential water treatment equipment (RWTE) market in Australia. Healthcare expenditure in Australia has been rising steadily for several years, with many of the health problems emerging from deteriorating quality of drinking water. This has driven consumer gravitation toward water treatment equipment.

Over the last decade, Southeast Asia's urban inhabitants have become well aware of the extent of contamination in drinking water supplies. The water distributed to communities is pre-treated at municipal plants and care is taken to remove most contaminants. However, the water is supplied through a plumbing system, which is similar to those used in Taiwan and Hong Kong, but has since failed.

New analysis from Frost & Sullivan (environmental.frost.com), Residential Water Treatment Equipment Market in Australia, finds that the market earned revenues of US$94.7 million in 2009 and estimates this to reach US$130.0 million by 2016.

"Inadequate maintenance of pipes has caused corrosion that has resulted in discoloration of water," says Frost & Sullivan Consultant Vidhi Yaduvanshi. "The manufacturers of point of entry systems are expected to leverage corrosion and discoloration problems to increase sales of their UV treatment and carbon block systems."

Water that is supplied can contain a range of chemicals, fertilizers, pesticides, and heavy metals, which cannot be removed by boiling. Manufacturers of RWTE have worked hard to educate consumers about the usefulness of their technology and products in removing these contaminants. Home owners currently understand the importance of RWTE and are making them a priority. Chlorine, hardness, bad taste, odor, and turbidity can be effectively treated by RWTE.

The high price of RWTE is a major factor restraining their uptake. Increasing market saturation, small market size, and an array of competing technologies are constraining market momentum. Apart from this, the market is facing stiff competition with the upsurge in sales of bottled water.

The market for bottled drinking water in Southeast Asia is well established. This acts as a restraint for the installation of RWTE. Most people in the Southeast Asian region prefer bottled water as it is convenient, safe, and has health benefits. The bottled water market is largely believed to act against sales of RWTE.

"According to a 2006 survey done by the Earth Policy Institute, the global consumption of bottled water reached 154 billion liters, with Southeast Asia showing a 12.0 percent increase in consumption over 2004, in spite of its excessively high price compared to tap water," says Yaduvanshi. "This had repercussions on segments of the RWTE market that relate directly to the treatment of water for drinking purposes,"

Price is an important criterion for Australian customers while making purchase decisions on RWTE. In fact, many participants have retained their product prices over the years, as the market is highly competitive and quite fragmented. Consumers perceive RWT products sold by direct selling companies to be of better quality. However, they are disappointed that these products are overpriced and lack quality after-sales services.

Attractive financing packages (installment payment) and money-back guarantees are at present widely adopted pricing strategies in Australia. However, participants can gain the competitive edge by providing attractive pricing of replacement parts, which are currently considered over-priced.

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Residential Water Treatment Equipment Market in Australia is part of the Environmental Growth Partnership Services program, which also includes research in the following markets: Residential Water Treatment Equipment Market in Japan and Residential Water Treatment Equipment Market in South Korea. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Residential Water Treatment Equipment Market in Australia / P4D9

 
 
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Market Saturation and Small Size Constricting Market Growth in Australia Finds Frost & Sullivan

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