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Residential Water Treatment Equipment Market in Australia
Frost & Sullivan, March 2011, Pages: 82
This research service highlights the residential water treatment equipment (RWTE) market in Australia. It includes key research findings, country profile, industry challenges, market drivers, market restraints, total market size for RWTE market, revenue forecasts, market share analysis, market size split by RWTE type, market trends, competitive landscape, market opportunities, strategic conclusions, and major participants' profiles.
Research Overview
This Frost & Sullivan research service titled Residential Water Treatment Equipment Market in Australia provides an in-depth analysis of the market drivers and restraints, industry trends, and competitive environment, in addition to the industry challenges and issues faced by market participants. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: point of entry (POE) and point of use (POU).
Market Overview
Escalating Healthcare Costs and High Awareness Levels Spearhead Growth in the Residential Water Treatment Equipment Market in Australia
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 where 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. “Inadequate maintenance of pipes has caused corrosion that has resulted in discoloration of water,” notes the analyst of this research service. “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 of water can be effectively treated by RWTE.
Market Saturation and Small Size Constricting Market Growth in Australia
The high price of RWTE is a major factor restraining 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 and 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 the analyst. “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 residential water treatment 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.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- POE
- POU
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