MOUNTAIN VIEW, Calif. -- Increasing end-user education and technological understanding are facilitating shifts between market segments in the dynamic residential water treatment market. Therefore, some markets are beginning to decline while others experience growth, as end users move away from basic equipment and toward more sophisticated treatment systems.
According to new strategic research conducted by Frost & Sullivan (www.frost.com), U.S. Residential Water Treatment Equipment Markets, revenues reached almost $784 million in 1997. Although growth is expected to continue throughout the forecast period 1997 to 2004, manufacturers must take note of the subtle changes in the marketplace in order to take full advantage of this growth potential, says the company.
Growth is occurring in almost all segments, with faucet-mount, under-the-sink, and ultraviolet point-of-entry equipment experiencing the latest growth. Growth is primarily due to end-users' increasing awareness of drinking water contamination, and a better understanding of the need for water treatment, says Frost & Sullivan Analyst Brent Walker.
New market players have been attracted by increasing consumer interest and the consequent growth in the residential water treatment equipment market. This has resulted in greater product offerings and is adding to end-user confusion, Walker contends. Over one hundred companies manufacture water purification products for the residential sector, but only a few are widely recognized. The establishment of brand recognition is a crucial factor for success in the market, a fact that some companies have already realized and responded to by spending money on advertising to boost their brand name recognition. Those companies who have not done so may be in danger of losing market share, says Frost & Sullivan Analyst Karen Rasmussen.
This new study by Frost & SulIivan, U.S. Residential Water Treatment Equipment Markets, is divided into three major segments: Point of Entry equipment, including ultraviolet equipment, ozone treatment equipment, water softeners and carbon/sediment; Point of Use equipment, including under-the-sink equipment, counter-top equipment and faucet-mount equipment; and filter pitchers. Revenue forecasts and market share analysis are provided for each segment. Also provided in this study are market and technology trends, competitive issues, and strategies. Equipment sold through water dealers, retail chains, wholesalers, multi-level marketing corporations, Internet companies and mail order companies is included.
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