Outsourcing Opportunities in the European Industrial

Water Sector

“This is currently the most exciting and dynamic market in the whole of the

European water industry.”

Arantxa Mencia, Research AnalystFrost & Sullivan, Water GroupMarch 2002

Key features• Detailed market structure

• Analysis of the Western European market for outsourcing opportunities in 6 key regions

• Segmentation of the markets– Industrial Water Service: Water Supply, Process Water and

Wastewater– Type of Contract: O&M, BOT/BOM/BOO/BOF etc.

• Full revenues forecasts from 1998 to 2008

• Comprehensive market share analysis identifying key players

• Detailed discussion of key market trends including drivers and restraints, market opportunities, competitive structure and competitive strategies

• The key challenges of the market

Key content

• Compound Annual Growth rate: 14%• Market Saturation: less than 10%

Outosurcing Opportunities in the European Industrial Water Sector (Market Forecast)

0

200

400

600

800

1000

1200

1400

1600

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Reven

ues $

Industrial Water Market Structure and Segmentation

Water

Bore-holes Surface Mains water Desalinationunderground (river) supply

Water fromtreated effluent

Industrial Customer

Mobile water New water Existing treatment treatment plant

Wastewater

Discharged Off site Wastewaterlocal sewer treatment treatment

Service contract

Managementcontract

BOO/BOT/BOF…

Mobile treatment

Key content

• Detailed Analysis of Industrial End User Trends

• Market Forecasts of 6 European regions

Figure 7-1

Outsourcing Opportunities in the European Industrial Water Sector: Percentage of revenues andgrowth prospects by end-user group (Total Europe), 2001-2007

End-user group

Percentage of

revenues (%)

Growth Prospects

1-2 Years

Growth Prospects

3-4 Years

Growth Prospects

5-6 Years

Food & Beverage 20 Extra High Extra High High

Chemicals 18 High Extra High Extra High

Petrochemicals 10 Extra High Extra High High

Pulp & Paper 10 High Extra High High

Power generation 10 Extra High Extra High Extra High

Pharmaceuticals 10 High Extra High Extra High

Microelectronics 4 High High High

Automotive 4 High High High

Others 14

Total 100

Figure 8-2

Outsourcing Opportunities in the European Industrial Water Sector: Percent of Revenues byGeographic Region (Total Europe),1998-2008

Year Germ. France UK I taly Iberia Rest of

Europe

1998 16.0 33.3 37.7 8.2 1.7 3.1

1999 17.0 31.6 35.8 9.3 2.4 3.9

2000 17.0 30.3 34.9 10.0 3.3 4.4

2001 16.9 29.7 33.9 10.2 4.2 5.1

2002 16.9 29.3 32.7 10.5 5.1 5.5

2003 16.8 28.8 32.2 10.9 5.7 5.7

2004 16.6 28.3 31.8 11.3 6.2 5.7

2005 16.2 27.7 31.5 12.4 6.5 5.7

2006 16.1 27.3 31.0 13.1 6.8 5.6

2007 16.1 27.2 30.4 13.7 7.0 5.6

2008 15.9 27.0 30.0 14.2 7.2 5.6

Who would benefit from this report?• Utilities - the largest and most powerful players,

they need to focus on the growing sectors. How can they protect existing customers, while also seeking new business?

• Process Engineering Companies - with their experience in design and build markets, how can they leverage their skills to exploit the outsourcing market?

• Equipment Manufacturers - will be active directly or through joint ventures or acquisitions, but how will they position their technologies?

• Facilities Management Companies - poised to enter the market, but in what capacity?

Featured Companies

Abridged list of market participants:

AGBAR FISIA SAURALBION WATER GELSENWASSER SEVERN TRENT WATERANGLIAN WATER GRONTMIJ TECMEDBECHTEL IONICS THAMES WATERBINNIE B&V LURGI BAMAG UNITED UTILITIESBIWATER MWH VA TECH WABAGCH2MHILL NORIT VIVENDI WATERDHV WATERNUON WS ATKINSECOLOCHEM RWE YORKSHIRE WATERENEL HYDRO ONDEO EUROWATER PRIDESA e-WATER GROUP … and many more

What to do next:

For more information

Call 01865 398662 or e-mail:

enquiries@frost.com

Please visit our website at:

www.water.frost.com