Competition pattern and market share of sewage treatment industry in China

1, China's sewage treatment industry competition echelon

At present, there are many participants in China's sewage treatment industry, but the major players in the market have large differences in the scale of sewage treatment design due to the different regions where the sewage treatment projects are located. For example, rural sewage treatment is mostly distributed, and a single project is smaller than urban sewage treatment. According to the total scale of sewage treatment design of enterprises, the sewage treatment industry can be divided into three echelons, the first echelon of sewage treatment design capacity of more than 10 million tons/day of enterprises are Beijing Water, the first environmental protection, green water source; The design scale of the second echelon is between 4 million and 10 million tons/day, including energy-saving Guozhen, Chongqing Water, entrepreneurial environmental protection, Xingrong Environment, etc. The design scale of the third echelon sewage treatment is less than 4 million tons/day, and the representative enterprises are Hongcheng Environment, Guozhong Water, Zhongyuan Environmental Protection and so on.

2. Market ranking of China's sewage treatment industry

From the perspective of the whole market, the ranking of sewage treatment is a representation of the absolute position of water enterprises in the sewage market, and municipal sewage treatment is the main battlefield of China's water marketization. In the list of the total scale of municipal sewage of the top ten influential shortlisted enterprises in the water industry by China Water Network in 2021, Beijing Water Holdings ranked first in the list with a total scale of 35 million tons/day, followed by the first environmental protection and green water source, and the total scale of municipal sewage was 14.7 million tons/day and 10 million tons/day, respectively.

3, China's sewage treatment industry market concentration

Since 2014, the market concentration of sewage treatment industry has shown an upward trend, according to the data of China Water Network, in 2021, China's municipal sewage marketization accounted for 45%, and the market concentration (CR10) reached 53%. With the rapid development of China's environmental protection industry, the scale of the sewage treatment market will continue to expand, the demand for industrial market-oriented services will grow, the industry will show the trend of resource integration and cross-regional development, driven by the scale effect, the scale expansion of the industry's leading enterprises will accelerate, and the concentration of the industry will gradually increase.

4, China's sewage treatment industry enterprise layout and competitiveness evaluation

From the perspective of sewage treatment business types, Beikong Water, Bishuiyuan and other enterprises have municipal sewage, village sewage, industrial sewage and other types of sewage treatment capacity; Dayu Water Saving, Jindalai and other enterprises mainly focus on sewage treatment in rural areas; From the perspective of key regional layout, most sewage treatment enterprises are currently concentrated in the regional layout, Beijing Water has a layout in the domestic and overseas, and the sewage treatment business distribution range is wide.

From the perspective of competitiveness of enterprise sewage treatment business, Beijing Holding water business competitiveness is relatively strong, its sewage treatment business revenue in the first half of 2022 reached 4.94 billion Hong Kong dollars, and the enterprise sewage treatment capacity is as high as 25.69 million tons/day. In addition, the water source sewage treatment capacity of more than 20 million tons/day, the total scale of enterprise village sewage treatment projects ranked in the forefront of the country, the rural sewage treatment city accounted for about 4%, its competitiveness is relatively strong.

5. Summary of competition in China's sewage treatment industry

From the perspective of five-force competition model, because of the lack of water resources, the threat of alternatives in sewage treatment industry is very low; The number of existing competitors is large, the industry is in the stage of rapid development, the competition of existing enterprises is more fierce; The upstream suppliers are generally sewage treatment equipment, sewage treatment pharmaceutical suppliers and other enterprises, with moderate bargaining power; The downstream consumer market is mainly enterprises and residents, and the price of sewage treatment is set by the government, and the downstream bargaining power is weak. At the same time, due to the strict entry qualifications of the industry and the high financial and technical thresholds, the threat of potential entrants is less.