The market for ultrapure water systems and consumables will be down in 2009 from the $4.l billion in revenues recorded in 2008, but will rebound to the $4.l billion level again in 2010 and then register positive growth in 2011 and 2012, according to a report by the McIlvaine Company (www.mcilvainecompany.com).

Segment

Flat Panel
Industrial Power
Miscellaneous
Pharmaceutical
Power (coal-fired)
Power (gas turbine)
Semicon
Cosmetics
Soft Drinks
Medical Devices
Hospitals
Total
2009
down
up
down
up
even
even
down
up
up
up
up
down
2010

down
up
up
up
up
up
down
up
up
up
up
up
2011
up
up
up
up
up
up
down
up
up
up
up
up

Source: McIlvaine Company

McIlvaine predicts there will be significant differences in growth rates in the specific industries, with electronics down and other segments up. Semiconductor, the largest ultrapure water sector, is expected to be down, with power, the second largest segment, up.

According to McIlvaine, the market for hardware will be down sharply from 2008 levels, with the market for consumables also showing a slight downward trend.

McIlvaine’s forecasts include consumables such as ion exchange resins, membranes, and treatment chemicals. McIlvaine says companies that supply membranes are not experiencing the severe shrinkage that companies relying on the sale of the turnkey systems are experiencing.

While there is substantial market loss in Europe, McIlvaine predicts this will be offset by solid growth in Asia. Suppliers of electronics have steadily increased manufacturing capability in the areas where the demand is highest for their products and the manufacturing costs are lowest.

The continued trend toward nano technology is a positive influence, reports McIlvaine, a there is attractive growth in military electronics, medical devices, and biotechnology (which is included with pharmaceuticals).