Rapidly growing Sewage Treatment industry benefits from China’s urbanization, government support and foreign investment.
San Francisco, CA (PRWEB) March 16, 2013
Over the past five years, the Sewage Treatment Facilities industry in China has been growing 17.5% annually to $3.4 billion in 2013. Demand for sewage treatment services has grown substantially due to rapid urbanization and the development of various industrial sectors in China, says IBISWorld.
Sewage treatment facilities generate profit either through subsidies from the government or by providing sewage treatment services to the government. Households and businesses also pay sewage treatment fees directly to industry enterprises. These fees are expected to increase in the coming five years, which will improve profitability for treatment plants, says IBISWorld.
The top four firms are estimated to contribute a third of total industry revenue. Although most enterprises in this industry are small-scale, some firms have developed economies of scale through cross-regional operations. The entry of large foreign players may increase the industry concentration level, says IBISWorld. The Sewage Treatment Facilities industry officially opened to foreign investment in 2002. Since then, large foreign players, such as Veolia and Suez, have expanded their businesses in China through partnerships with domestic enterprises. Private and foreign enterprises can operate sewage treatment facilities in China by franchising from the government in the form of: build-operate-transfer (BOT) operations; transfer-operate-transfer (TOT) businesses; and public-private partnerships (PPP).
IBISWorld anticipates that more sewage treatment facilities will be franchised to private or foreign enterprises that specialize in water resource management over the next five years. In addition, industry enterprises will continue to benefit from higher fees and an increasingly urban population.
For more information, visit IBISWorld’s Sewage Treatment Facilities in China industry report page.
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IBISWorld Industry Report Key Topics
Sewage treatment facilities in China collect, treat, purify, and recycle sewage. They also provide consultation and engineering services relating to sewage treatment and recycling. Sewage is generated from households, industrial production, hospitals, commercial entities, slaughterhouses, and agriculture. Recycled water produced by the industry is supplied to households, offices, and factories for non-drinking use.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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