NEWS RELEASE                                                                                         December 2017

Markets for Treating Liquids are Growing Faster than GDP

The markets for products and services to treat fluids are growing faster than GDP although some industry segments have negatively impacted the results in the last three years. In the 2018-23 period the market should grow at 4 to 5% annually. The pump and valve segments have grown at a slower rate due the slump in the oil and gas sector. Pumps used for oil extraction have comprised a substantial segment of the market.  This market is starting to rebound and will not be a drag in the next five years. New opportunities created by IIoT and Remote O&M could add as much as 2% CAGR to the market.

Water Treatment Markets - three years ago ($ billions)

Product Power Fluid Municipal Industrial and Other Residential/
  Commercial
Total
Pumps 3 8 14 20 8 53
Valves 7 13 7 39 20 86
Cartridge 0 7 1 6 7 21
Sedimentation/Centrifugation 1 0 2 5 0 8
Cross-Flow Membranes 2 0 4 3 1 10
Macrofiltration 1 0 2 4 0 7
Biological/Oxidation/Destruction 1 0 8 4 2 15
Water/Wastewater Chemicals 5 0 9 10 0 24
Total           224

Treatment activities can be segmented into expensive treatment of small quantities of liquids and inexpensive treatment of large quantities. An example of a small segment with high treatment costs is the water for injection (WFI) generated by pharmaceutical companies for injectable drugs.

One of the larger growth segments in the last three years has been ballast water. Ships now treat 200 billion gallons/yr due to new regulations. All the other water needs for ships are only 2 billion gallons/yr.  So, the ballast water regulations expanded the market by two orders of magnitude in terms of volume to be treated.

The water produced by oil drilling amounts to 360 million gallons per day (mgd). This is several orders of magnitude larger than the WFI market and represents the equivalent of 2 percent of the world’s 16,700 mgd desalination capacity. The slowdown in the drilling of new wells has resulted in fewer disposal sites for produced water and the need to therefore treat and reuse this water.  

The biggest applications for water treatment are power plants. The U.S. market is relatively small due to the prohibition on new coal plants.  However, regulations regarding discharges from existing plants have created a modest market. China has slowed down after a huge decade of coal plant construction.  The biggest markets are now the ASEAN nations and India.  They will build more coal fired plants than were ever built in the U.S. and Europe (China already has built twice as many coal plants as the U.S. and Europe combined).

For more information on Air/Gas/Water/Fluid Treatment and Control: World Market, click on:http://home.mcilvainecompany.com/index.php/markets/27-water/445-n064-air-gas-water-fluid-treatment

For more information on specific product reports, click on:

Cartridge Filters: World Market: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/117-n024

Liquid Filtration and Media World Markets: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/118-n006

Pumps World Market: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/116-n019

RO, UF, MF World Market: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/120-n020

Sedimentation and Centrifugation World Markets: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/119-n005

Industrial Valves: World Market: http://home.mcilvainecompany.com/index.php/markets/2-uncategorised/115-n028

Water/Wastewater Treatment Chemicals: World Market: http://home.mcilvainecompany.com/index.php/markets/27-water/449-n026-water-and-wastewater-treatment-chemicals

NEWS RELEASE                                                                                         November 2017

Municipal Wastewater Treatment and Power Plant Environmental Technology Interconnection will expand Wisdom

Wisdom gained in reducing pollutants from power plants can be used to improve municipal wastewater plant performance and vice versa. IIoT promises to interconnect things. Suez, operating a number of treatment plants from a center in France, can be making adjustments to blowers in a plant in Chile to reduce energy consumption and improve nutrient removal. MHPS operating power plants from a center in the Philippines can make adjustments to blowers to improve FGD oxidation in a plant in India.

Data analytics with the help of subject matter experts (SME) can provide guidance to minimize down time and maintenance costs.  However, if the voluminous analytics are made available and utilized in decision systems accessed by disparate plants and industries and if there is sufficient interconnection among SMEs then the decisions will be empowered by the Industrial Internet of Wisdom (IIoW).  The SMEs who focus on a system can them become subject matter ultra-experts (SMUES).

The interconnection among industries is important.  Take power plants and wastewater plants as an example.

  • Municipal wastewater plants could provide the water for use as cooling and process water for power plants
  • Municipal sewage sludge can replace some of the solid fuels used in power plants
  • Co-location of power plants and municipal wastewater plants would allow for waste heat from the power plants to be used for accelerated nutrient removal and sludge drying  in the wastewater plants
  • New methods for mercury removal are equally applicable to  municipal sludge incinerators and coal fired boilers
  • Improvements in liquid, gas and free flowing solids analyzers have applicability to both industries
  • Automation and control system improvements for combustion, scrubbing and liquid solid separation in one industry can be used in the other

McIlvaine has complied Decision Guides on coal fired power:  44I Coal Fired Power Plant Decisions

You can view a recorded presentation on IIoT and Remote O&M for municipal wastewater at

https://youtu.be/AWB-vZIj5gkWe

For more information on IIoT and Remote O&M click on N031 Industrial IOT and Remote O&M

We are presently analyzing aeration blower options for nutrient removal at municipal wastewater plants and seeking to identify subject matter experts.  We welcome any suggestions.  Please contact Bob McIlvaine at This email address is being protected from spambots. You need JavaScript enabled to view it. 847 784 0012 ext. 112

NEWS RELEASE                                                                                         November 2017

Forty Percent of Flow and Treat Products for Desalination will be Purchased by Just Forty Companies Next Year

Desalination is growing faster than the total potable water market.  Next year purchases of flow and treat products will exceed $7.7 billion of which over $3 billion will be purchased by just 40 companies.  This includes large system suppliers, independent operating companies and plant owners.  Due to the increased usage of remote monitoring the purchasing decisions will be made by relatively few individuals who are utilizing data analytics and making choices based on good cost of ownership information.

Desalination Purchases – World – 2018 - $ millions
Products All Purchases Top 40 Owners and EPCs
Pumps 1400 560
Membranes 1000 400
Valves 1300 520
Macrofiltration 200 80
Cartridges 200 80
Guide 900 360
Control 1900 760
Measure 800 320
Total 7700 3080

This opportunity will be analyzed in a McIlvaine free webinar to be held on December 6.  The specific opportunity for each product is analyzed in a series of McIlvaine market reports which also identify the top 40 purchasers

The purchase of GE Water by Suez creates a player with desalination sales close to that of the leader, Veolia and the second largest participant, Doosan.   The largest owner is Taqa of the UAE with close to 2.5 million m3/day of desalination capacity.  It is expanding beyond the UAE to other countries in the Mid-East, Africa and Asia.  However, it is contracting with major EPCs to operate its plants.  So much of the purchasing decision making remains with the large EPC/operators.

Most of the new desalination systems are incorporating reverse osmosis instead of distillation technology.  Remote monitoring and control assures that the proper treatment chemical additions are made to minimize membrane fouling.  Energy efficiency is also optimized through control of the primary and energy recovery pumps.

To  register for the webinar click on:  Free Market Webinars

Detailed product forecasts for desalination are provided in the following

N028 Industrial Valves: World Market

N026 Water and Wastewater Treatment Chemicals: World Market

N031 Industrial IOT and Remote O&M
(including instrumentation and automation)

N024 Cartridge Filters: World Market

N020 RO, UF, MF World Market

N019 Pumps World Market

N006 Liquid Filtration and Media World Markets

N005 Sedimentation and Centrifugation World Markets

NEWS RELEASE                                                                                         November 2017

Gas Turbine Operators will spend $2.9 billion for Valves Next Year

Operators of gas turbines will spend $2.9 billion in 2018 for valves. Fifty-five percent of the total will be for new plants while 25 percent will be replacements and 20 percent will be upgrades of existing plants.  Some of the upgrades will just be valves added for better control and remote monitoring.  Others will be added due to conversion of open cycle to combined cycle operation.

4000 MW of open cycle gas turbines will be converted to combined cycle operation on an average annual basis in the next three years.  Most of this will be in the Middle East and the U.S where most of the units are still not in combined cycle mode. The open cycle mode emits almost as much CO2 as does a coal fired boiler.  Conversions are being made primarily to achieve extra electricity production but greenhouse gas reduction per unit of energy produced is also a consideration.

Gas Turbine Open Cycle Capacity Percent by Region

Region

Percent
Open Cycle

North America 36
South America 40
Europe 4
CIS 16
Africa 53
Middle East 40
Asia 9
TOTAL 26

It is a challenge to operate an HRSG on a fast cycling basis.  More robust automation and control provides part of the fast start HRSG solution.  There have been significant attemperator problems caused by frequent cycling.  One of the problems is leaking valves.  The solution is new valve designs and remote monitoring of valve leakage. McIlvaine is analyzing valve designs for HRSGS and has solicited assistance from the HRSG Users Group which is holding their annual conference in Houston from February 12-14.  https://hrsgusers.org/conference

The acceleration of remote monitoring of valves and the evaluation of total cost of ownership is covered in N031 Industrial IOT and Remote O&M.

The specific valve forecast for each of 12 valve types for gas turbines is provided in each of 80 countries in N028 Industrial Valves: World Market.

The technical issues relative to HRSGs and other gas turbine processes are continually analyzed in 59D Gas Turbine and Reciprocating Engine Decisions.

Profiles of the 50 largest purchasers of gas turbine valves are included along with project tracking in 59EI Gas Turbine and Reciprocating Engine Supplier Program

NEWS RELEASE                                                                                         November 2017

Pursuing the $25 Billion Hot Gas Air Pollution Market in the New IIoT Environment

On November 8, McIlvaine will be conducting a webinar on the air pollution market for combustion sources as well as the new route to market being shaped by IIoT and Remote O&M.

Suppliers of components such as nozzles, mist eliminators, pumps, valves, TR sets, VFDs, fans bags, catalyst and dampers used in hot gas air pollution control systems are finding a market where relatively few end users and suppliers represent most of the potential.

The top 15 operators in the power industry will average system purchases next year of $500 million each. The largest 15 steel companies will average system purchases of $66 million next year.

Hot gas air pollution control is a distinct market. Some large air pollution control companies such as Donaldson do not sell hardware into this market (only filter media). Others such as AAF have been in and out of this market and currently are out of it.

The biggest players are necessarily in the power sector because it represents 64 percent of the new systems market. The largest players also sell the combustors. This includes companies such as Babcock & Wilcox, Doosan, and GE.  Mitsubishi Heavy Industries and Hitachi merged their boiler and hot gas activities to form MHPS.

Hot Gas New Systems Market in 2018 - $ Millions

Industry

Dust

Acid gas

NOx

Total

Percent Share for Top 15

Average Company Purchases

Power 7000 3000 6000 16,000 48% 512
Cement, Stone 2600 180 190 2970 30% 59
Mining 900 130 90 1110 60% 44
Chemical 50 70 70 190 20% 2.5
Refining 90 80 120 290 70% 14
Pulp and Paper 80 300 110 490 30% 10
Steel 1800 70 120 1990 50% 66

There are few stand-alone air pollution control system companies in the power sector. Hamon does not supply boilers but does supply cooling towers as well as air pollution control systems.  Players such as Marsulex, Fuel Tech, and Clyde Bergemann have minor market shares.

Much of the Asian market is served by joint ventures and licensees. However, some of the largest air pollution control companies are now China based. Longking is a stand-alone air pollution control company and ranks at the top in terms of hot gas system sales to the power industry. Other large Chinese air pollution control companies focused on power are owned by coal plant operators.

The non-power hot gas markets have unique requirements and are served mostly by smaller players. Some such as Andritz have moved into power from a strong base in pulp and paper.  Cement is dominated by kiln suppliers and specifically FLSmidth who supplies air pollution control equipment and is the largest kiln supplier.

The operators of hot gas air pollution control systems are starting to embrace IIoT and Remote O&M. This is resulting in centralized corporate determination of lowest total cost of ownership for components. Suppliers such as GE and MHPS are leading the remote monitoring revolution.  The result will be a new marketing route for the component suppliers.

The hot gas system and component forecasts for each industry and for the top 1,000 purchasers are included in the following McIlvaine market reports.

N008 Scrubber/Adsorber/Biofilter World Markets

N018 Electrostatic Precipitator World Market

N021 World Fabric Filter and Element Market

N022 Air Filtration and Purification World Market

N027 FGD Market and Strategies

N035 NOx Control World Market

The sea change brought about by IIoT is analyzed in: N031 Industrial IOT and Remote O&M

For more information or questions contact This email address is being protected from spambots. You need JavaScript enabled to view it. 847-784-0012

To register for the November 8 webinar click on Free Market Webinars

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