More than 50 Percent of The World’s Ultrapure Water Products will be purchased By Just 50 Companies

Power plants, electronics manufacturers and pharmaceutical producers will spend $4.6 billion in 2015 on products and services to purify water to such an exceptional degree that there is a whole classification called “ultrapure” water.  This purity is obtained with a combination of chemicals and physical process steps such as reverse osmosis (RO) and ion exchange.

The purchases will be concentrated among relatively few companies.  The top 20 companies will purchase 37 percent of the total products and the top 50 companies will average more than 1 percent each ($23 million).

The top 8 semiconductor companies will account for purchases of $795 million.  The top 10 power generator purchases will total $625 million. The top 4 flat panel and other electronics manufacturers will spend $284 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 product 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 products far outweigh the costs.

The combination of concentration of buying power and emphasis on highest quality products creates a new and major opportunity for ultrapure water system, product and service providers.  McIlvaine has created a new route to market to take advantage of this opportunity.  It combines N029 Ultrapure Water: World Market with other McIlvaine services to provide detailed forecasting of Markets, Prospects and Projects.

For more information contact Bob McIlvaine at rmcilvaine@mcilvainecompany.com.

Lots of Cleanroom activity in Asia reflected in monthly Updates

Here are the headlines for the last monthly Cleanroom Markets Update:

MARKETS

Expenditures for Cleanrooms Will Exceed $5.6 Billion By 2020

Asian Cleanroom Consumables Market Is Growing At 7% per Year

SEMICONDUCTORS

Mid-Year Global Semiconductor Sales Ahead of Last Year’s Pace by 4 Percent

Tsunami of M&A Deals Underway in the Semiconductor Industry in 2015

TSMC Reports Revenue Increase of 35 Percent Increase from June to July

North American Semiconductor Equipment Industry Posts June 2015 Book to Bill Ratio of 0.98

Record Shipment Levels Continue into the Second Quarter 2015

Daqo New Energy Announces Phase 3A Polysilicon Manufacturing Expansion Project to Increase Production Capacity to 18,000 Metric Tons

PHARMACEUTICAL/BIOLOGICAL

Health Care Microfluidics Market to Grow to Nearly $4 Billion in 2020

Biologics Market to Be Worth $270 Billion in 2019, New Visiongain Analysis Predicts

mHealth Market Expected to Reach $33.7 Billion

Global Ophthalmic Devices Market Predicted to Reach $18 Billion in 2015

Pfizer Receives Approval from European Commission for Pending Acquisition of Hospira

CONSUMER ELECTRONICS

Consumer Sentiment toward Tech Spending Rises in July

Flat Panel Display Revenues Forecast to Fall in 2015

Ovivo Awarded Contract for Water Supply and Treatment at Circuit Board Manufacturing Plant in China

The individual projects are forecasted in 80A World Cleanroom Projects.  The market forecasts are continually revised in N6F World Cleanroom Markets.

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Bob McIlvaine
President
847-784-0012 ext. 112
rmcilvaine@mcilvainecompany.com
www.mcilvainecompany.com