NEWS RELEASE NOVEMBER 2015
Purchases of Ultrapure Water Cartridges by Just a Few Companies Total $300 Million
Cartridges play a major role in providing ultrapure water (UPW). In semiconductor plants, the water is first purified in cross-flow membrane systems but then sent long distances to tools. Cartridges located at the tools ensure that any contamination generated in transport is removed. Cartridges are used in ultrapure water systems to provide water for injection (WFI) in the pharmaceutical industry. Systems to provide the pure water needed for steam generation in the power industry also utilize cartridges.
Power plants, electronics manufacturers and pharmaceutical producers will spend $300 million in 2015 on non woven, membrane, ceramic and metal cartridges for their UPW applications. Detailed forecasts are included in N024 Cartridge Filters: World Market.
The purchases will be concentrated among relatively few companies. The top 20 companies will purchase 37 percent of the total cartridges and the top 50 companies will average more than one percent each ($3 million).
The top eight semiconductor companies will account for purchases of $51 million. The top ten power generators will each spend $42 million. The top four flat panel and other electronics manufacturers will spend $18 million.
The Top 10 Purchasers Will Be
Pfizer is the top pharmaceutical purchaser but is only ranked #23 on the list of the 40 largest purchasers.
The large ultrapure water cartridge purchasers are moving toward global sourcing for several reasons. One is the importance of the products to the plant operations. A single small particle can cause rejection of a $300 chip. Contaminated drugs are one of the biggest concerns of pharmaceutical companies. The ultra supercritical power plants which are now under construction require water purity levels far greater than the sub critical power plants which they are replacing.
The second reason for global sourcing is to facilitate evaluations on total cost of ownership. The high cost of these evaluations is spread out among a number of purchases. The benefits of buying the best rather than lowest price cartridge far outweigh the costs.
The combination of concentration of buying power and emphasis on highest quality products creates a new and major opportunity for cartridge providers. McIlvaine has created a new route to market to take advantage of this opportunity. It combines N024 Cartridge Filters: World Market with other McIlvaine services to provide detailed forecasting of Markets, Prospects and Projects.