Point of Use Water Treatment Systems Market Size, Share & COVID-19 Impact Analysis, By Product Type (Under the Counter Filters, Countertop Filters, Pitcher Filters, Faucet-mounted Filters, and Others), By Category (RO Filters, UV Filters, Gravity Filters, and Others), By Application (Residential and Light Commercial), and Regional Forecasts, 2022-2029

The global point of use water treatment systems market size was valued at USD 19.58 billion in 2021 and is projected to grow from USD 20.94 billion in 2022 to USD 36.54 billion by 2029, exhibiting a CAGR of 8.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with point of use water treatment systems experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 4.6% in 2020 as compared to 2019.

Point of Use (POU) water treatment systems are installed at residential and non-residential places, where water is utilized for various purposes. These systems are mounted at a sole water connection, typically under the counter of kitchens, bathroom showers, faucets, and other locations. Due to the less volume treatment, these systems are considered an ideal solution for the last stage of water purification in light commercial buildings or at home. The combination of these treatment systems and point-of-entry water treatment systems offers complete purification, from removing harmful contaminants to water softening.   

COVID-19 IMPACT

Reduced Demand amid COVID-19 Pandemic Hampered Market Growth

The outbreak of the COVID-19 pandemic resulted in an unprecedented economic and operational impact on the global point of use water treatment systems industry. However, the water treatment industry falls under essential services, and the overall economic impact is slightly less than other manufacturing industries. To avoid the spread of coronavirus, governments across developed and developing economies imposed partial or complete lockdown. The sudden lockdown resulted in supply chain disruptions across the ecosystem. The Water and Wastewater Equipment Manufacturers Association (WWEMA) surveyed the impact of COVID-19 on its member companies. More than 90% of manufacturers reported the impact on their orders while most reported delays in orders and even predicted no sales growth during the second quarter of 2020.  

LATEST TRENDS

Emergence of Smart Water Treatment Systems is a Significant Trend

The introduction of the Internet of Things has enabled smart water purification systems to emerge as a new technological trend in the water purification industry. These smart purifiers are strategically designed to replace conventional reverse osmosis and ultraviolet water purification systems. They are compact and convenient for use with smartphones. Water can be easily dispensed with just one click. Also, it notifies the user about the frequent replacement of filters before their expiry. Furthermore, users can set specific timing for filling one glass or bottle and track the daily water consumption to avoid excess usage.     

DRIVING FACTORS

Increasing Awareness about Water-borne Diseases is Fueling Demand for Systems Globally

Water-borne diseases are caused due to infections by pathogens such as protozoa, bacteria, viruses, algae, parasitic worms, and other metal contaminants. The consumption of pathogen & metal-contaminated water leads to diseases such as typhoid, diarrhea, chlorella, malaria, campylobacteriosis, lead poisoning, and others. These diseases spread while drinking, showering, washing, or eating food contaminated by raw and untreated water. The WHO predicts around 1.5 million human deaths due to water-borne diseases per year. With the increasing awareness and availability of information on water-borne diseases & water pollution, people are becoming more concerned about their health and prefer clean drinking water to prevent such serious diseases.

Moreover, water campaigns conducted by several environmental agencies are spreading awareness about the health benefits of drinking and using clean water in both developed and developing economies. Point of use water treatment systems can be effectively adopted to improve the quality of daily consumed water and prevent water-borne diseases. Hence, the increasing awareness about water-borne diseases is surging the demand for these systems across the world.  

RESTRAINING FACTORS

High Production and Maintenance Cost of Filters - A Key Challenge for Market

Reverse osmosis filters and ultra-violet filters are expensive. A technically skilled workforce is required to achieve the optimal design and meet standard regulations, which increases the production cost of filters. The maintenance cost of point of use water treatment systems depends upon filters and the technology required. In general, RO water purification systems have higher maintenance costs than other systems. After three to six months, such treatment filters require replacement to maintain the water output quality. This increases the overall maintenance & operational cost of the system. Therefore, the high cost of filters restricts the use of point of use water treatment systems.     

SEGMENTATION

By Product Type Analysis

Owing to Higher Adoption, the Countertop Filters Segment Dominated the Market in 2021  

Based on product type, the market is segmented into countertop filters, under the counter filters, faucet-mounted filters, pitcher filters, and others. The countertop filters segment is the largest and fastest-growing segment in the market. These countertop units don’t require complicated plumbing connections for operations, are easy to install, and are specially designed to acquire minimum space. They also offer good quality water. The filter media used in these systems is activated carbon or ceramic, which is considered ideal filter media to remove contaminants and retain the taste of water.   

The under-the-counter filters segment was the second-largest product type in the market in 2021. These systems are generally installed under the kitchen counter. Due to a higher flow rate, the water dispenses at a high rate through these systems, saving time in filling the bottle. Moreover, these filters save space over the kitchen counter and don’t require too many adjustments to mount. Under-the-counter RO systems are gaining popularity due to their high-quality water output and space-saving designs.   

By Category Analysis

Excellent Features Led the RO Filters Segment to Hold Major Share in 2021

Based on category, the market is divided into RO filters, UV filters, gravity filters, and others. Among these, the RO filters segment accounted for the largest revenue share in the market in 2021. RO systems are highly advanced membrane filtration technology, capable of removing 99% of the water contaminants and delivering the same water quality as bottled water. Therefore, these systems are highly adopted for water purification. They are considered the best solution to treat hard water. Besides this, these systems are expensive, take more time to treat water, and remove essential minerals, such as iron, magnesium, sodium, and calcium, which alter the taste of the water. 

The gravity filters segment held the second-largest share in the market as these systems are easy to install and quite simple. They don’t require electricity as water purification is entirely based on gravitational force. Moreover, these systems can be placed anywhere in the home and require less maintenance. However, frequent filter media replacement is necessary to help gravity filters function properly.

By Application Analysis

Residential Segment to Emerge as the Fastest-growing Application in Market

Based on application, the market is classified into non-residential or light commercial and residential. The residential segment was the largest application segment in 2021 and is projected to retain its position during the forecast period. The usage of water is high in residential buildings compared to light commercial buildings. According to the U.S. Environmental Protection Agency estimates, an average American family uses over 300 gallons of water daily. Out of indoor water use, approximately 20% of water is used for showers, 19% through faucets, and 17% for washing clothes.

Light commercial buildings include banks, restaurants, small shopping centers, offices, academic buildings, and others. Water purification systems installed in light commercial buildings are large-scale units with similar advantages such as residential compact filtration units.  

REGIONAL INSIGHTS

Asia Pacific held the largest market share and is projected to be the fastest-growing region at a CAGR of 10.0% during the forecast period. The market size of the region was USD 7.71 billion in 2021. Rapid urbanization in the region creates lucrative growth opportunities for point of use water treatment systems. According to the World Bank Data, East Asia & Pacific is the world’s most rapidly urbanizing region with a rate of 3% per year. One-third of the world’s urban population resides in this region. China is the major consumer of water treatment systems, followed by Japan, owing to increasing awareness about the benefits of water treatment systems. India is expected to register the highest growth rate in the future. Japan, South Korea, and Australia represent the highest adoption of water treatment systems. Therefore, Asia Pacific is expected to retain its dominance in the market during the forecast period.

Europe was the second-largest contributor, with Germany leading the market followed by the U.K. The increasing water consumption for household usage would result in the rising demand for point of use water treatment systems in this region. According to the European Environment Agency, over 12% of the total water is consumed by households in Europe. On average, 144 liters of water are supplied on the basis of per person per day. According to the European Commission, in 2015, the average consumption of tap water per person in Germany and the U.K. stood at 122 liters and 150 liters, respectively.    

North America accounted for the third-largest share in the market in 2021, with the U.S. emerging as the most significant contributor, followed by Canada. The growth in this region is mainly attributed to the high penetration of water treatment systems among consumers. Moreover, the presence of large-scale commercial manufacturers and their well-established distribution networks fuel the point of use water treatment systems market growth in the region.

The Latin American market is majorly influenced by government policies to reduce single-use plastic water bottles. Also, rising awareness among consumers toward drinking clean water is expected to drive the market in Brazil and Mexico. The growth of commercial sectors including IT, telecom, and banks is fueling adoption of water filters and promoting market growth.

Changing consumer perception toward adopting advanced water filters instead of large water bottles aids the market growth in the Middle East. GCC remains the key market for all water purification products. In Africa, South Africa is a well-established market for POU water treatment systems due to higher consumer spending on healthcare. Also, water awareness campaigns run by the WHO and the UN are pushing the demand for water purifiers in emerging African economies. 

KEY INDUSTRY PLAYERS

Key Players Focus on Organic and Inorganic Growth Strategies to Maintain their Positions in Market

At present, the competitive landscape of this market depicts a fragmented industry, with the top 10 companies accounting for a major share of the market. Key players have invested a considerable amount of resources in researching and developing several point of use water treatment systems, products, and technologies to produce them. A diversified product portfolio, supported by superior operational efficiency, and safe & novel technology development for water treatment systems applications are the strategies used by the market leaders to gain momentum. Companies have adopted new product development and acquisition strategies to increase their regional presence and product offerings.

LIST OF KEY COMPANIES PROFILED:

• A. O. Smith Corporation (U.S.)


• Brita LP (U.S.)


• Pentair PLC (U.S.)


• Culligan International Company (U.S.)


• Unilever PLC (U.K.)


• Panasonic Corporation (Japan)


• LG Electronics (South Korea)


• Helen of Troy Limited (U.S.)


• Best Water Technology Group (Austria)


• Kent RO Systems Ltd. (India)


• Coway Co. Ltd. (South Korea)


• Katadyn Group (Switzerland)


• Eureka Forbes Ltd. (India)


• Global Water Solutions Ltd. (U.S.)


• General Ecology Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2021 – Pentair acquired Pleatco for approximately USD 255 million in cash. Pleatco is used to manufacture water filtration products for pools & spas. With this acquisition, Pentair strengthens the distribution network across the U.S. and Europe.


• July 2021: A.O. Smith Corporation announced the all-cash acquisition of Master Water Conditioning Corporation, a Pennsylvania-based water treatment firm. Master Water's purchase underlines the company's commitment to the North American water treatment industry, which is a major component of the company's goal to supply new, unique water heating and treatment solutions.


• June 2021 – Brita entered into a long-term partnership with Parley for the Oceans, a futuristic form of environmental organization, to reduce the use of single-use plastic water bottles. Both companies together introduced a design, Future of Water, to envision the look of Brita’s future sustainable water treatment products.


• December 2020 – Pentair launched FreshPoint Easy Flow Under Counter Filtration System for residential applications. This system is NSF certified and offers refreshing, filtered water straight from the tap for a year with a single filter.


• July 2020 – Coway Malaysia uncloaked its latest water purifier model - Coway Kecil, primarily equipped with direct filtration technology. It has been designed keeping space-saving needs in mind. This new launch has an incredibly sleek design, which makes an appropriate fit into compact spaces. After the launch of this water purifier, Coway won the platinum award in the water purifier category.

REPORT COVERAGE

The global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, categories, and leading product applications. The report covers the point of use water treatment systems market share analysis by key segments and countries profiled under the scope of study. Besides this, it offers insights into the market, current trends, and highlights the key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation