Regulations and efficiency are two of the largest factors ensuring the growth of the market for air and water monitoring products to more than $25 billion a year by 2017, according to a report by market research organization the McIlvaine Company.
East Asia will experience the largest growth. Air and water monitoring revenues will approach $9 billion a year in that region by 2017. The market in the NAFTA area will exceed Western Europe by nearly $2 billion in 2017, according to Air and Water Monitoring: World Market.
The oil and gas activity in the US is generating a direct and indirect monitoring market. Shale oil and gas extraction includes monitoring the product, the fracturing fluids and byproducts. The processing of the raw gas requires additional monitoring. Monitoring of water supplies before fracturing establishes a bench mark. Monitoring during and after fracturing detects any contamination caused by the fracturing, the report says.
Indirect monitoring revenues will result from the lower cost of energy and the construction of new chemical, fertilizer and metal processing plants. Another positive factor is regulation of toxics. New air regulations imposed on US coal-fired power generators, cement plants and waste incineration operators require measurement of mercury, toxic metals, hydrogen chloride and toxic organics.
The developing world is increasing its expenditures for ambient monitoring of air and water. This is the first step toward reduction. National as well as local governments are the main customers for these products. Academia and research institutions are major purchasers of air and water monitoring equipment.
Divestment, acquisition, international expansion and offering “total solutions” are four strategies that air pollution control companies can use to adapt to a shrinking market, the McIlvaine Company said last month.
Suppliers of air pollution control systems in the US have relied on huge purchases by owners of coal-fired boilers as the leading source of business since the 1920s. More than 50 percent of US air pollution control purchases have been by the power companies. However, there are not likely to be any new coal-fired boilers in the next decade. This creates a significant challenge but one that can be met, says McIlvaine.