MOUNTAIN VIEW, Calif.(AP) -- The Chilean market claims the most growth potential of all water and wastewater treatment markets in Latin America, according to a new marketing study. Driven by a privatization process that is allowing key companies to introduce state-of-the-art technology, the Chilean market for water and wastewater treatment is expected to grow substantially.
According to new strategic research conducted by Frost & Sullivan (www.frost.com), Chilean Water and Wastewater Treatment Markets, the total market reached $58.5 million in 1997, and it is expected to experience high growth rates by the middle of the forecast period 1998 to 2004.
The government has played an important role in developing the municipal wastewater treatment and potable water market, says the report. Because Chile sees privatization as both a profit-making opportunity and as a way to modernize the country's water infrastructure system, the government is actively participating in order to achieve higher efficiency levels, says Frost & Sullivan Analyst Mirna Saab. However, the activity in this market is also a result of an increasing number of contaminated freshwater sources which adversely affects the ecosystem and makes clean drinking water scarce. Because international and domestic pressures have increased, the Chilean government has placed renewed emphasis on regulations to protect the water supplies.
The municipal water and wastewater treatment equipment market supports subcontracting and bid sharing with local equipment providers, international plant and equipment providers, and plant design and engineering consulting companies. Saab says the new infrastructure developments pave the way for a joint industrial and municipal wastewater market. Municipal water companies plan to serve the local large industries who need to treat large amounts of water, and municipalities are maximizing profitability by offering extra services.
The industrial market relies on industrial growth and on these industries being impelled by the government to treat their effluents at least one year before a local wastewater plant is installed. Opportunities can be found in such industries as mining, fish, and other food processing houses, says the study.
Most equipment manufacturers who are active in the U.S. and Europe are aware of Chile's tremendous growth potential, says Saab. Consequently, this increasing international competition is becoming a threat. It is necessary for companies in the Chilean market to develop relationships early. In the municipal sector, companies must be able to actively network with government and water companies for accurate information on bids and finance options for the large projects that are already underway, according to Frost & Sullivan. In addition, local competitors specializing in a niche market are beginning to diversify into other industries.
This new study by Frost & Sullivan, Chilean Water and Wastewater Treatment Markets, is segmented into the municipal and industrial markets. This study provides trends and demand analysis useful for meaningful involvement in Chile's emerging water and wastewater treatment markets. Also included are revenue forecasts, market shares, competitive issues, and strategies.
This environmental safety industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research include: identification of industry challenges, market engineering measurements, strategic recommendations, and planning and market monitoring. All of the vital elements of this system help market participants navigate successfully through the Chilean water and wastewater treatment markets, according to the study.
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