Global Markets for Environmental Remediation Technologies

Global Markets for Environmental Remediation Technologies

  • September 2017 •
  • 174 pages •
  • Report ID: 2584389
• The global market for environmental remediation technologies increased from $65.2 billion in 2016. This market is estimated to reach nearly $82.7 billion in 2022 from $67.8 billion in 2017 at a compound annual growth rate (CAGR) of 4.0% for 2017-2022.
• North American market is expected to grow from nearly $33.3 billion in 2017 to $38.0 billion in 2022 at a CAGR of 2.7% from 2017 through 2022.
• Chinese market is expected to grow from nearly $4.5 billion in 2017 to $8.2 billion in 2022 at a CAGR of 12.8% from 2017 through 2022.

Chapter 1: Introduction
Various estimates place the global cost of potential liabilities for owners of environmentally contaminated sites in the trillions of dollars. These potential liabilities have arisen because of contamination of the world’s soil and water with chemicals, metals and other compounds with effects that can range from an offensive odor to a carcinogenic or lethal outcome.

Much of the contamination encountered is historical contamination, originating years or even decades in the past, many times with the original source or cause of contamination unknown or not fully known.

Other contamination may continue to arise as a result of current activities with consequences that are not yet fully understood or, occasionally, as a consequence of irresponsible actions.

Although the global industry for remediation technologies has come into being just over the past several decades, it has been quite successful in cleaning many contaminated sites in the most developed economies of North America, Western Europe, Japan and Australia. However, despite the progress that has been made in cleaning contaminated sites in these regions and countries, there remains significant work to be done.

When considering the emerging economies of the world, it is clear that there exist equally large—if not greater—future potential liabilities stemming from contaminated sites, as many of these sites have yet to be cleaned. A critical component of building and growing economies around the world is the cleaning of contaminated sites, which not only serves to preserve and protect human health but also allows the development of sites that were previously ignored due to contamination.

Study Goals and Objectives
This study seeks to provide a broad perspective and understanding of the most important aspects of the global remediation technology market. Readers will gain a better understanding of the makeup of the global industry in terms of key factors driving and inhibiting market growth; regulatory schema; technological categories and trends in new technological development; patents; and various market dynamics—and how these all interact with one another.

By providing this deep understanding of the market, the report aims to equip its intended audience with the requisite knowledge to better formulate public policy, business and competitive strategy, and/or research and developmental project goals. For private industry, established firms should gain a better understanding of where they may best maximize their current positions, while new firms seeking to enter the market should be able to better identify the points of entry that may afford them the greatest likelihood of success.

Scope of Report
This report examines the global markets for technologies used in the remediation of environmental contamination. In the scope of this report, natural resources affected by environmental contamination include surface water, groundwater and soils (to include soil vapors). Markets are examined in greater detail in later sections of the report that discuss markets from a regional perspective and from the perspective of remediation technologies’ applications to sites associated with certain industries.

The technologies considered to form the core market for remediation technologies are those that are included in the “Remediation Technologies” section of this report. Any technologies that are not included in the aforementioned section are not included in the market quantification, unless otherwise specifically stated.

Also, not included within the scope of this report or in the market size and growth estimates are technologies for cleaning/remediation of contaminated air and any technologies that are applicable solely for treatment (such as wastewater treatment) and not for remediation; however, technologies that can be dually applied and have seen significant use for remediation purposes are included.
Any services or equipment that do not directly support the furtherance of a site remediation project or those that require only general knowledge such that most companies in the economy could provide them equally well have not been included in the market estimations. Direct equipment, materials, reagents, and sales and rentals of remediation technologies have been included as well as the professional services required to assess a contaminated site; to develop a remediation plan for the specific site; and to implement, install or continuously operate the remediation equipment over a defined space and time.

Included in total dollar figures for market estimates are direct costs for design, fabrication and assembly of remediation equipment; costs for materials and chemicals such as surfactants and cosolvents that are used in many remediation methods (electrokinetic remediation, for example); and costs for on-site professional services in assessment and remediation project design and ongoing monitoring of remediation projects.

Many of the technologies applied to remediation of contaminated sites are in fact technological systems or processes (many of which hold patents in various jurisdictions) rather than a single piece of equipment. As such, when considering technological processes, the entire value of the process has been considered. It is also important to note that a large number of remediation technologies use a significant portion of standard equipment such as off-the-shelf pumps or heavy construction equipment (for excavation) that are then built into an overall system, package or process specifically for site remediation that customers can apply to their project’s specific needs.

A complicating factor in estimating the breakdown of market segments for environmental remediation technologies stems from the nature of the various liability laws in jurisdictions around the world. One fairly common practice in environmental remediation is for a governmental body to undertake and see to the complete remediation of a key contaminated site, and, while remediation is underway or once it has been completed, this governmental body will seek payment for the costs of remediation from the responsible party (if this party is still in existence—many times they are not). In instances where such a process has been used successfully, the value of the remediation equipment, services, materials and so forth are applied to that specific industry application.

In developing the market size and growth rate estimates, all regions and industries have been considered. However, this report seeks to provide particular insight into the markets for remediation technologies in emerging economies. The goal of this specific focus is to provide readers with a comprehensive resource for remediation technology companies based in developed economies, such as North America, Western Europe or Australia, that seek to expand their client portfolios regionally through export, licensing or some other transfer of technology or expertise. Moreover, there is already ample and readily accessible information about the markets and their structure in the developed economies of the U.S., Canada, Western Europe and other countries/regions.

However, information on the markets in emerging economies can be more difficult to come by or to fully understand. Extra attention has been paid to markets in regions including China and the broader Asia-Pacific region, Latin
America and the Caribbean region (especially Argentina, Brazil, Chile and Mexico), and the Middle East and Africa region. Most of these regions, as will be discussed in further detail in this report, may see growth rates that outpace the global average during the next five years, providing ready markets for expansion.

Information Sources and Methodology
To quantify the total market size and annual growth rates for environmental remediation technologies, a combination of both top-down and bottom-up approaches were used, and primary and secondary information sources were utilized. Aggregated data were reviewed from trade organizations, professional societies, research institutions and governmental bodies from many different nations.

Analysis of publicly available budgetary, expenditure and contract documents from various national and regional governmental bodies in the U.S. and in other jurisdictions was completed.

A large representative sample composed of individual companies, both privately held and publicly traded, ranging from a few employees to tens of thousands, was also researched and analyzed, and this sample formed part of the basis for developing the market size and growth estimates. These companies included startups, established small and medium enterprises, and global environmental consulting firms and were diverse in their geographies, the solutions provided (equipment manufacturers, service providers, project developers and so forth.), the markets served and the technologies utilized.

In addition to information from supplier firms for the remediation technologies market, public financial filings and other public documents from companies and organizations that have been major purchasers of remediation equipment or services were also analyzed. Investment information and news releases from venture capital firms, when available, were analyzed to determine the level of interest in and success in investing in the industry on the part of private funds. For publicly traded companies, official financial filings were analyzed.

Among the most important sources of information were primary and secondary sources for individual companies. In addition to the individual companies reviewed, a nonexhaustive list of aggregated information sources that were utilized in the development of this report included publicly available data and documents from the following sources.

For technical information regarding contaminants, technologies and current research areas:
• American Academy of Environmental Engineers.
• American Chemical Society (ACS).
• California Environmental Protection Agency.
• Centro de Tecnologia Mineral (Brazil).
• Comisión Nacional del Medio Ambiente (CONAMA) (Chile).
• Federal Remediation Technologies Roundtable (FRTR).
• Groundwater Remediation Technologies Analysis Center (GWRTAC).
• The International Atomic Energy Agency (IAEA).
• Interstate Technology & Regulatory Council (ITRC).
• National Defense Center for Environmental Excellence (NDCEE).
• New Jersey Corporation for Advanced Technology (NJCAT).
• New York City Office of Environmental Remediation.
• Society of Environmental Engineers (U.K.).
• University of Guelph’s (Ontario) University Consortium for Field-Focused Groundwater

Contamination Research.
• The U.S. Department of Energy, and its:
o Brookhaven National Laboratory.
o Pacific Northwest National Laboratory.
o Savannah River National Laboratory.
• The United Nations Environment Programme.
• The U.S. Environmental Protection Agency (EPA), and its:
o Office of Underground Storage Tanks.
o Office of Solid Waste and Emergency Response.
o Technology Innovation and Field Services Division.

For market, economic and patent information:
• Associação Brasileira das Empresas de Consultoria e Engenharia Ambiental (Brazil).
• Asociación Interamericana de Ingeniería Sanitaria y Ambiental (AIDIS).
• The Chinese Ministries of Environmental Protection, Science and Technology, Housing and Urban-Rural Development, and Industry and Information Technology.
• European Patent Office (EPO).
• Pace Environmental Law Review.
• U.S. Bureau of Labor Statistics.
• U.S. Census Bureau.
• U.S. Patent and Trade Office (USPTO).
• The World Bank.
• World Intellectual Property Organization (WIPO).

Geographic Breakdown
In this report, the geographic regions considered for market analysis include and only include:

North America
• U.S.
• Canada.

Latin America and Caribbean
• Brazil.
• Mexico.
• Argentina.
• Chile.
• Colombia.
• Peru.
• Remaining countries in region.

Middle East and Africa
• Nigeria.
• South Africa.
• Turkey.
• Israel.
• Saudi Arabia.
• Egypt.
• Remaining.

Europe
• Germany.
• France.
• U.K.
• Netherlands.
• Belgium.
• Remaining countries in region.

China
Asia-Pacific
• Japan.
• India.
• Australia.
• Russia.
• South Korea.
• Indonesia.
• Remaining Asia-Pacific.

Environmental Remediation Technologies, by Associated Industrial Applications
Mining and Forestry
Oil and Gas
Manufacturing, Industrial and Chemical Production or Processing
Landfill and Other Waste Disposal
Agricultural
Others (military, nuclear and radioactive waste, commercial, etc.)

Chapter 2: Summary and Highlights
The Summary Table below describes the global market for environmental remediation technologies by region from 2016 through 2022. At a global level, the total market for remediation technologies is expected to grow at a modest but healthy compound annual growth rate (CAGR) of 4.0% from 2017 through 2022. With this growth rate, the total market should expand from nearly $65.2 billion in 2017 to $82.7 billion in 2022.

An interesting observation is that by far the highest CAGR is expected to come from China; if China is removed from the analysis, the global market is expected to grow at a much more modest 3.3% CAGR from 2017 through 2022.

Before discussing the market sizes and dynamics further, however, it is important to mention that, although this report projects continued growth in the markets over the next five years and quite likely beyond in the medium term, the industry on a whole exhibits signs of becoming or in some areas having already become a mature market. Although exceptions can be found in specific regions and in certain applications of the technologies for sites associated with specific economic activities, as a whole the market shows some of the signs of a classic “red ocean” market with high competition.

As the table shows, China and the Asia-Pacific region can be expected to grow more quickly than the global average. North America and the European regions can be expected to grow more slowly than the global average.

Since the previous edition of this report was published, there have been several major new developments that have affected, and may potentially affect, the global markets for remediation technologies and services.

These factors are discussed in greater detail in later chapters of this report but include a significant contraction in the mining, oil and gas, and agricultural sectors (itself driven by sharp drops in global commodities prices from mid-2014 to early 2016), significant political uncertainty in several major national markets for remediation (which has already affected the market and may affect it more significantly in the near future), and access to capital both for ongoing research and development as well as growth capital for companies in the industry.

As a result, the global market—while still large, and growing—is projected to grow at a slower rate than previously forecasted. Additionally, in some regions of the world, the market for remediation in fact contracted during 2014, 2015, 2016, and/or 2017, meaning that much of the growth in coming years will simply be to get back to precontraction levels. Contractions of varying levels were seen in Canada, Australia and Brazil, among others. The total global market was approximately $65.2 billion in 2016 and should grow to approximately $82.7 billion by the end of 2022. Such an increase would represent a CAGR of 4.0% from 2017 through 2022—less than the 5.5% 2014–2019 CAGR projected in the previous
edition of this report but still an area of great opportunity and faster growing than the global economy at large.

Ona global scale, the greatest areas of opportunity for the market will be found in North America, China, Asia-Pacific, and the Middle East and Africa and in the applications of industrial site remediation, military, nuclear, and other radioactive site cleanup, and landfill remediation. The mining and forestry and oil and gas applications markets will in fact contract slightly in some regions in the first years of the projection period, followed by rebounding growth.

Growth in Latin America and the Caribbeanwill be significantly affected by economic and political troubles throughout the region, but especially due to severe economic and political turmoil in the region’s largest economy, Brazil. Growth in Europe will be positive, but relatively weak. Althoughthe highest growth rates may be found in the regions mentioned previously, the highest total growth will still come from the market’s powerhouses in North America and Europe.

With an expected combined $7.4 billion in total growth coming from North Americaand Europe between 2017 and 2022, these two markets together would represent 42% of the total expected growth in the markets over the next five years.

Growth in the remediation technologies markets in China is expected to proceed from strong investment in cleanup of contaminated sites across the country by municipal governments as well as by the central government through its allocation of several billion dollars over the next few years for cleanup projects around the country.

There is still an expectation that a more comprehensive and cohesive national environmental cleanup policy will be set in place by the central government in the near future, which would provide more clarity for companies operating or considering operating in the market. Other potentially strong drivers of remediation in China include private financial transactions (mergers and acquisitions, real estate transactions and so forth) and brownfield redevelopment in China’s largest urban areas.

Growth in Latin America and the Caribbean will suffer severely (compared to growth rates seen in previous years), with a great deal of the flagging growth attributable to economic and political troubles in the region’s largest economy, Brazil. A CAGR of REDACTED in the region could grow the market to nearly REDACTED by the end of 2022, up from nearly REDACTED in 2017.

Continuing with the trend of the past two-plus decades, the proportion of the market occupied by in situ technologies compared to ex situ technologies is expected to persist. Examining the market for each category—in situ and ex situ—the highest growth rates are expected for in situ technologies; although the highest total growth can still be expected to come from more traditional and older ex situ technologies.

Beyond the simple categorization of in situ versus ex situ technologies, currently one of the most active areas of the remediation industry in terms of customer interest, public policy and research interest relates to the rise of sustainable remediation technologies.

Companies that seek to enter the market, or to strengthen their existing presence in the market, may increase their likelihood of success by taking advantage of any number of the following trends identified in the market:
• Higher growth rates in emerging economy markets, especially in countries such as China, Indonesia, Mexico, Colombia, Peru and Eastern European countries, including Lithuania, Romania, the Balkan states and Poland as well as in certain medium-income and high-income markets, including Chile and Israel.
• Provision of equipment, reagents and other technologies for in situ treatment of contaminated soil or water.
• Provision of equipment, reagents and other technologies applicable to sites associated with the oil and gas industries, agriculture, landfill and other waste disposal sites, manufacturing and industrial sites, and sites associated with military uses.
• Development of specialized technologies targeted at the booming global shale oil and shale gas industries.
• A focus on providing remediation solutions and whole systems for customers—often municipalities and/or real estate developers—seeking to clean urban brownfield sites ahead of redevelopment.
• Creation of partnerships with other organizations specializing in different types of remediation technologies that could be combined into a series treatment system, providing greater overall value to a customer and potentially higher gross margins for the supplier firms.