The report titled “Indonesia Industrial Water and Waste Water Treatment Market Outlook to 2022 – by Region (Sumatra, Jakarta & Java, Sulawesi, Kalimantan, Maluku & Irian Java) and by Industry (Power, Seel, Palm Oil, Food & Beverages, Oil and Gas and Others)” provides a comprehensive analysis on the Indonesia Industrial water and waste water treatment market. The report covers various aspects including introduction, ecosystem, EPC Market size by value of order intake, market segmentation by region (Sumatra, Jakarta & Java, Sulawesi, Kalimantan, Maluku & Irian Java), by Industry (Power, Steel, Palm Oil, Food & Beverages, Oil and Gas and Others), growth drivers, restraints, key regulations, future outlook and analyst recommendation.
This report will help the reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for equipment manufacturers, water treatment consumable manufacturers and suppliers, environmental associations, EPC companies and potential entrants and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
Industrial water and waste water treatment industry in Indonesia registered a positive five year CAGR during 2012-2017. The market size by order intake has increased constantly from 2012 to 2017. The growth was mainly driven by strict implementation of regulatory norms and increased government incentives to bring economic reforms to Indonesia and start its transformation from a service-based economy to a manufacturing-based economy. This has led to an increased demand for energy and a rise in manufacturing industries which in turn has promoted the development of water treatment industry.
By Region: Sulawesi was the biggest market for water treatment industries in 2017. Large cocoa plantations, power plant and infrastructure projects were the key drivers for this growth. Java and Jakarta was the second largest contributors followed by Sumatra especially after its discovery as a destination with geothermal potential. Kalimantan and Maluku had the lowest share due to poor implementation and low industrial penetration.
By Industry: Thermal power plants were the largest users of water treatment facilities in Indonesia. It was followed by Palm Oil Industry. Indonesia is a leader in the global exports for palm oil and is the largest producer in the world. Iron and steel industry was the third in market share due to rising demand for steel consumption in various infrastructure projects that has increased the demand for water treatment in this industry. Indonesia has also emerged as a hub for manufacturing Food & Beverages due to rising investments and rise in user penetration for packaged food products. Pharmaceuticals, Textile, tannery, oil and gas, automobile, electronics are some other key sectors where there is demand of water treatment.
Poor implementation of existing regulations in many parts of the country, lack of WWTPs in SMEs, fragmented market in equipment supply, poor energy efficiency among the waste water treatment facilities, lack of funds, price sensitivity in tenders, and poor investment in R&D are some key restraints in the water treatment business.
Stringent regulations, depleting water resources and degrading water quality, rising industrialization, government initiatives for cleaning up polluted rivers, companies opting for zero liquid discharge through their units and huge untapped market potential due to urbanization and low penetration of water treatment equipments are the key growth drivers in the Indonesia Industrial water and waste water treatment market
It is expected that market will register constant growth registering increasing value of order intake. Demand is expected to be highest in Sulawesi followed by the Java & Jakarta. Cities along river coasts are expected to emerge as new hubs with highest growth potential. Demand is expected to rise in ZLD segment as strict regulations regarding water discharge and conservation comes into play. Significant drop is expected in coal based power plants due to increased use of renewable energy and gas based plants.
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Ankur Gupta, Head Marketing & Communications