Research Methodology - Market Definitions
Malaysia
Industrial Water and Waste Water Treatment market: It is defined as the total value of
projects announced for construction of industrial water and waste water
treatment. It includes the EPC contracts, Operation and maintenance, capacity
addition and upgradation and equipment sales. It excludes the revenue generated
by Malaysian firms executing overseas contracts as well as sewage treatment and
municipal water treatment.
Malaysia Operation and Maintenance Market: It is defined as th revenue
generated by providing third party operation and maintenance service for water
and waste water treatment in various private and government industry. It
includes the cost of labour supply, chemicals and others. It excludes the cost
of treatment done by companies themselves.
Malaysia EPC market for Industrial water and
Waste Water Treatment:
It includes the total value of projects allocated in a particular year for
construction of new plants, upgradation of existing plants and capacity
addition. It includes the cost of engineering, construction, material supply
and commissioning. It excludes the water treatment projects for municipal and
sewage treatment.
Malaysia Industrial Water
Treatment Equipment Market: It is defines as the total price paid by EPC
contractors to OEMs and material suppliers in industrial water and waste water
treatment for supply of equipments to be installed and consumed while
construction of ETPs and WTPs.
North: Perlis, Kedah, Penang, Perak
Kuala Lampur : Bukit
Bintang, Titiwangsa, Setiawangsa,Wangsa,MajuBatu,Kepong,Lembah Pantai
South and East Coast: Kelantan, Terengganu, Pahang,
Johor, Negeri
Sabah and Sarawak: Interior, Kudat, Sandakan,Tawau
Research Methodology -
Consolidated Research Approach
Hypothesis Creation: The research team has first framed a
hypothesis about the market through analysis of existing industry factors
obtained from magazines, journals, broker reports, investor presentations and
annual reports of major companies, Ministry of Green Technology and Water,
Water Services Board, Department of Statistics, Sub units of the Ministry of
Finance and other government agencies.
Hypothesis Testing: The research team conducted computer assisted
telephonic interview (CATI) with several industry professionals including
decision makers in EPC and Equipment manufacturing companies. The industry
professionals included several management executives, and other higher level
authorities. Structured interviews were conducted with several industry
veterans including major decision makers from Salcon Berhad, Sigma Water
Engineering, Veolia and Vatech Wabag and other companies. The analyst at Ken
Research collated their insights on the market onboard and to seek
justification to the hypothesis framed by the team.
Sanity Checking @ Decision Tree Analysis: Data has been collected and verified through
cross-sanity checking the opinion and facts received from interview with the
hypotheses framed from public databases. The team has verified the data by
conducting both bottom-to-top and top-to-bottom analysis.
Future Forecasting via Poll Opinions and
Statistical Tools: Multi-Factor
regression was conducted on the lag variables by identifying the independent
and quantifiable variables directly affecting the market. The forecasting was
done by using SPSS statistical tools. The variables were checked for
multi-co-linearity and other bias that could be present in the model. The
conclusion from the regression was then double-checked by conducting poll
opinions. Although the forecasting was done using the SPSS tools provided the
results were not in line with the industry expert opinions which led us to
taking the weighted average approach with the calculations for forecasting. Interpretation
and Proofreading: The final
analysis will then be interpreted in the research report by our expert team
well versed with the Water Industry.
Research Methodology - Market Sizing and Limitation –
Water and Waste Water Treatment Market
Market Sizing:
- Initially, we
identified all major EPC and equipment supplier water treatment companies
operating in the market. We then collated the order intake for current year,
revenue from sale of equipments and O&M contracts. This helped us in
sanity checking the current market size provided by industry veterans.
- We also
collated the information for entire water treatment industry size
including Sewage treatment, Municipal supply and industrial water
treatment and then interviewed industry professionals to seek their expert
opinion on contribution of industrial water and waste water treatment.
- We have
conducted multiple CATIs with industry experts and management of leading
EPC companies and equipment manufacturers to understand the market size,
bidding system, customer acquisition, and their views on future
development. This helped us in estimating revenue generated for the
overall market and validating the future growth in the market.
Limitation:
- It can happen
that some of the projects may get caught up in legal battle or protest
from local bodies which can either delay the project or may even stop the
project. It is also possible that company exit the projects due to some
technical or financial issue.
- Many times,
it may happen that SMEs may either discharge the effluent directly into
the river or in open or may supply it to ETPs after primary treatment even
though they have their own ETPs in order to cut the cost. Other than this
it is also possible that ETPs may not run at their full potential all the
time.
- It might be
possible that some companies may have included equipment supply or
construction cost in their order book and other EPC players may have
included the cost in their EPC contract which may lead to over reporting
or overestimation of the market.
- Market for
O&M was estimated based on opinion provided by industry experts,
however it might be possible that it may vary slightly with margin of
error of 10% from original market size considering that many companies opt
for captive treatment rather than outsourcing the O&M job and gauging
such information was our research constraint.
Research Methodology - Variables (Dependent and
Independent)
Variables
Considered:
- Installed Capacity of Power plant in MW: Installed capacity of power plants play a
very large contribution in water and waste water treatment market as it is
the biggest user of water in the industry.
- Contribution of Manufacturing in GDP: Manufacturing sector is the major demand
creator for industrial water treatment. Increase in manufacturing is
expected to have positive impact on the demand for water treatment
industry.
- Palm Oil Production in Malaysia: The growth of the palm oil sector is
rapid and is forecasted to have an even greater role in the contribution
it makes to the Malaysian economy. Palm oil refining processes have a
heavy reliance on water, more specifically for treated water.
Forecast
Modelling:
- The report
applies Correlation and Regression analysis methods to forecast the future
of the Industrial water and waste water treatment market. The capabilities
of SPSS and predictive analytics software have been leveraged to determine
the relevant indicators used for forecasting this industry. Although the
forecasts were calculated using the tools, the findings were not in line
with the Industry expert information and hence we decided to go with a
weighted average giving specific weight age to our primary and secondary
information available.
- In the
present case, water and waste water treatment market revenue by order
intake has been taken as the dependent variable and other variables such
as installed capacity of thermal power plant, contribution of
manufacturing to GDP, steel production have been taken as independent
variables.
Malaysia Water and Waste Water
Treatment Market Overview
Key Takeaways:
- The global
market for industrial water treatment has gained mileage in the last 5
years due to increasing awareness and requirement for purity of water. The
market is forecasted to grow at a rate of about ~%.
- Water and
Industrial Water treatment facilities and equipment manufacturing have
gained significant interest from the private and public sector. The former
being due to increased economic opportunities and the latter due to a
growing need for the welfare of the rapidly growing Malaysian population.
- The market
for waste water treatment equipment in the South East Asian region alone
is valued at close to USD ~ Billion and is expected to grow at a rate of
close to ~% in the next 5 years. Malaysian Industrial water and wastewater
treatment (IWWT) market is expected to showcase similar growth rate.
- Increased
standards for purity of water and the overall reduction in cost of
treatment making desalination a feasible process combined with an
exhaustion of natural water sources will act as tailwind. This has led to
an increased dependence on the recycling of water.
For more
information on the research report, refer to below link:
Related Reports:
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The report is useful for equipment manufacturers, water
treatment consumable manufacturers and suppliers, environmental associations,
EPC companies and potential entrants and other stakeholders to align their
market centric strategies
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
