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Titled "Filtering Out Growth Prospects in the $1.5 Billion Membrane Market," the report projects the volume of water that will be treated by membranes in ten market segments, including desalination, municipal water recycling, industrial process water and wastewater treatment, cooling tower and boiler water treatment – as well as in emerging market segments such as oil and gas extraction.
It detailed market size and growth for the four major categories of membranes – reverse osmosis (RO), nanofiltration, ultrafiltration and microfiltration.
Key findings stated that RO membranes are the largest technology but ultrafiltration is set for the fastest growth.
Lux Research said: "Reaching $1.3 billion in 2020, RO membranes will continue to be the biggest segment of the market.
"However, fueled in part by their promise in treating municipal wastewater, industrial process water, and other types of water, ultrafiltration membranes should see a healthy 6.5% compound annual growth rate, expanding from $0.4 billion in 2009 to nearly $0.7 billion in 2020."
The research also showed that while market size continues to grow for RO, profits will become elusive. It said: "The limited number of solutions has forced most providers to pursue similar paths, and the lack of differentiation – and cost erosion – will persist."
Reka Sumangali, a research associate at Lux Research and the report's lead author, said: "Despite the groundswell of growth opportunities beyond RO desalination, entrepreneurs and investors contemplating a leap into the membrane market can expect some challenges ahead.
"A lack of differentiation is driving down product prices, while development of more efficient, longer lasting membranes will keep margins low."
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