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First, favorable factors
(I) Cooperation between Sichuan and Israel in Water Treatment Industry
On September 7, 2017, at the China-Israel (Sichuan) Economic and Trade Innovation Cooperation Conference, Sichuan Province and Israel jointly issued the Action Plan for Strengthening the Sichuan-Israel Innovation Economic and Trade Cooperation with China (Mianyang) Science and Technology City, clearly defining the future Major areas of focus will be strengthened, including electronic information, artificial intelligence, new energy vehicles, aviation, smart manufacturing, new materials, biomedicine, water treatment, modern agriculture, and clean energy. Sichuan governments at all levels will provide all necessary support for the cooperation platform, optimize the allocation of scientific and technological resources, and at the same time, explore the establishment of various industrial cooperation funds to promote the capitalization and industrialization of scientific and technological cooperation achievements. The Sichuan government will implement a series of measures that will effectively promote the development of the water treatment industry.
(II) Severe water pollution and large water treatment demand
The "2016 China Environmental Status Bulletin" shows that among the country's 6,124 groundwater quality monitoring sites that use groundwater aquifer systems as the unit, mainly submerged shallow groundwater and confined water-based medium and deep groundwater, water quality is poor. The monitoring points at the extreme and very bad levels accounted for 45.4% and 14.7%, respectively. At present, the domestic water pollution problem is still serious, and the demand for water treatment is still very large.
(III) Breakthroughs in membrane technology will effectively enhance water treatment technology
Reverse osmosis is currently the core technology of water treatment industries such as desalination, reuse of water, and sewage treatment, but membrane fouling has always been a major obstacle to the further development of reverse osmosis technology and its operating costs. Now domestic universities have made breakthroughs in the preparation technology of antibacterial anti-pollution reverse osmosis membranes, and the prepared reverse osmosis membranes have shown good anti-pollution performance under the conditions of organic pollutants, inorganic pollutants and microorganisms. The preparation method is simple in operation, mild in conditions, taking into account the advantages of high efficiency and economy. Once large-scale preparation of antibacterial and anti-pollution reverse osmosis membranes is realized, the operating costs of reverse osmosis systems will be greatly reduced. With the continuous reduction of reverse osmosis technology costs, the market for water treatment will continue to expand.
(IV) Water rights trading helps the development of water treatment industry
China’s water rights exchange has been officially listed. The promotion of water rights trading has led to a clear trend in the recycling of wastewater. With the further deepening of the price reform, the resource advantages of sewage will be gradually reflected, and the sewage company with a nationwide layout will be promising. With the reclaimed water business, new performance growth points have been achieved. In addition, the construction of water rights trading needs the assurance of basic systems, especially the monitoring of water volume and water supply, and the water supply monitoring equipment industry will usher in a period of rapid market development.
Second, unfavorable factors
(I) Low efficiency of urban sewage treatment facilities
Sewage treatment facilities in domestic cities are incomplete and use efficiency is low, leading to the problem that urban sewage treatment work is not up to standard. At present, China's normal operation of sewage treatment equipment only accounts for about 50% of the total, a large number of sewage treatment equipment due to mechanical failure and poor management are in the outage state, resulting in many sewage treatment plant's actual processing capacity is not in strict accordance with its scale. The low efficiency of the use of facilities will make it difficult for enterprises to reduce operating costs, but it also causes waste of resources.
(II) Sewage treatment and construction projects have large total investment and long cost recovery period
With the advancement of urbanization, the scope of sewage interception management has increased, investment in pipeline networks and sewage treatment plants has increased, and the depreciation costs of fixed assets have increased rapidly. Moreover, because the sewage treatment industry is a capital-intensive industry, it has strong asset specificity and significant precipitation cost characteristics. The total investment in the sewage treatment and construction projects is relatively large and the cost recovery period is longer. Investment in the sewage treatment industry requires companies to have strong financing capabilities and operating capabilities.
China's water treatment industry market size forecast
Based on the above factors, the “Investigation and Forecast Report of China's Water Treatment Industry 2017-2021†issued by China Investment Advisors predicts that the market size of China's water treatment industry will reach RMB 280 billion in 2017, and the next five years (2017-2021). The average annual compound growth rate is about 43.25%. In 2021, the market size will reach 1.179 billion yuan.
China's water treatment industry in the next five years development trend and scale forecast
In 2017, the market size of China's water treatment industry will reach 280 billion yuan, and the average annual compound growth rate will be about 43.25% over the next five years (2017-2021), and the market scale will reach 1.179 billion yuan in 2021.