Subject: Air pollution industry profits to increase 1000% in decade
Air pollution industry profits will increase from $1.4 billion in 2004 to $13 billion in 2015 says the McIlvaine Company in its newly released, Air Pollution Control World Markets 2005-15.
According to the report there are three main reasons for the big future profit increases:
(1) Rapidly increasing revenues
(2) Higher margins
(3) Outsourcing and service growth
Rapidly increasing revenues: The total cost to own and operate air pollution control systems will rise from $65 billion this year to over $250 billion in 2015. Much of this growth will come from the power sector which must retrofit existing plants to remove SO2, NOx, and mercury. Furthermore, many countries around-the-world are going to be relying on coal rather than natural gas for new power generation facilities.
In the industrial sector China and other Asian countries will be making big investments to capture air pollutants from steel mills, foundries, pulp mills, cement plants, and other heavy industries.
Higher margins: The air pollution industry has had poor returns on investment. The main reason has been excessive competition. This has been the result of delays in implementation of anticipated regulations. New entries have entered a market which was smaller than anticipated. Now the supply and demand are in balance and the margins have increased significantly and will continue to do so.
Outsourcing and Service Growth: Air pollution control systems are increasingly complex. The reduction of one pollutant can lead to the increase in another. These systems are now incorporating smart sensors which allow remote monitoring and control. These factors will drive the industry to outsource more of the operation and maintenance duties. Thus what are now costs to an owner will be revenues for suppliers.
Service revenue including outsourcing will exceed $60 billion by 2015. This will generate profits for providers of $7 billion and a return on equity (ROE) of more than 25 percent.
Air Pollution Control World Markets 2005-2015 includes forecasts for system supply products and services and with specific forecasts for flue gas desulfurization, fabric filtration, selective catalytic reduction, biofiltration, scrubbing, adsorption, thermal oxidation, and continuous emissions monitoring. It is available from the McIlvaine Company for $875.
For more information click on: http://www.mcilvainecompany.com/Air_Pollution_Control_Markets_2005-2015.htm
McIlvaine Company; 191 Waukegan Road-Ste. 208; Northfield, IL 60093; Tel: 847-784-0012; Fax: 847-784-0061; E-mail: editor@mcilvainecompany.com; www.mcilvainecompany.com