Industrial Air Pollution

Control Equipment Market in Australia

Chukiat Wongtaveerat, Consultant

Environment & Building Technologies

07/12/2011

2

Focus Points

• Overview of Air Pollution in Australia

• CEO’s Perspective

• Market Drivers and Restraints

• Market Outlook – 2011 and 2017

• Technology Segments

• Market Segment

• Segment Breakdown Industrial End User Analysis

• Industrial End User Analysis

• End-User Segment Attractiveness Matrix

• Key Competitive Factors

3

Overview of Air Pollution in Australia

CO

42.4%

NOX

11.4%

SOX

10.5%

PM10

9.4%

VOC

25.6%

NH3

0.8%

Electricity

Generation

9.1%

Motor

Vehicles

20.9%

Metal Ore

Mining

3.1%

Other

Industrial

Sources

15.5%

Other Non

Industrial

Sources

51.4%

The industrial sector accounts for 27.7 percent of total air pollution in Australia

Air Pollution by Substance (Australia), 2011 Air Pollution by Activity (Australia), 2011

4

CEO’s Perspective

2Upward trend of FGD and SCR

technologies in the market

3This is a high technology market with

significant expense on R&D

4The top 5 players are dominating

approximately half of the total market

shares

5Opportunities in the key end-user

sector

1IAPCE Market in Australia is a mature

market with small growth rates

Source: Frost & Sullivan analysis.

5

Short Term Medium Term

Ma

rke

t D

rive

rsM

ark

et R

estr

ain

ts

Long Term

High

Key Drivers and Restraints

High

I m

p a

c t

Economic Growth and

Increase in Investments in

Construction Sector

Regulatory requirement and

National Pollutant Inventory (NPI)

Lack of Compliance

Issues

Lack of Significant

Investment in Safety

System by End Users

Unforeseen economic

scenario

Regulatory

Requirement

Australian Industrial Air Pollution Control Equipment Market

Source: Frost & Sullivan

analysis.

6

Note: All figures are rounded; the base year is 2011 Source: Frost & Sullivan analysis.

Market Outlook

Revenue Forecast (Australia), 2011 and 2017

CAGR (2012-2017) = 2.2%

7

Market Segmentation

Selective Catalytic

Reduction (SCR)

Flue Gas Desulfurization

Systems (FGD) Dust Collection

Systems

Industrial Air Pollution Control Equipment

Industrial Air Pollution Controls Equipment Market : Market Segmentation (Australia), 2011

Source: Frost & Sullivan

Fabric Filters

Electrostatic

Precipitators (ESP)

Wet Scrubbing

Others

Activated Carbon

Regenerative

Thermal Oxidization

Catalytic

Oxidization

8

Segment Breakdown

Note: All figures are rounded. The base year is 2011. Source: Frost & Sullivan

analysis.

2011 Percent Sales Breakdown

Industrial Air Pollution Control Equipment Market (Australia) , 2011

Fabric Filter

8.4%Electrostatic

Precipitators (ESP)

11.3%

Wet Scrubbing

29.5%

Selective Catalytic

Reduction (SCR)

25.4%

Others

7.3%

Flue Gas

Desulfurization

(FGD)

18.1%

9

Industrial End User Analysis

Industrial Sector

Power and Energy

Mining and Metal

Petrochemical

Utilities

Market Share Trend

41.2%

24.7%

21.7%

12.4%

IAPCE revenue in energy and power

sector is currently in its saturated stage

with marginal growth but will maintain

the stable growth rate.

IAPCE revenue from mining sector in

Australia is showing a significant

growth opportunity due to the

increasing mining and steel production.

Similarly to power sector, revenue of

IAPCE in petrochemical industry will

increase with constant growth rate after

the spike in 2009-2011

The focus of air pollution control in

utilities segment is mainly on VOC

control equipment while the overall

revenue of IAPCE in this segment is

deceasing.

10

End-User Segment Attractiveness Matrix

Utilities

54.1

42.3

Petrochemical

Power & Energy

13.3

Mining &

Metal

Mark

et

Siz

e in

2011 (

$ M

illio

n) 60.0

30.0

0.0

CAGR from 2011 to 2017 (%)

0.0% 6.0%

28.8

Note: Size and Figures in bubbles indicate estimated market size in 2017 . Source: Frost & Sullivan analysis.

End-User Market Attractiveness (Australia), 2011

- 6.0%

11

Ease of

Management

Key Competitive Factors

Brand

Reputation

Level of

Customization

and Design

Service and

Technical

Support

Efficiency Level

Cost

AUS

Industrial

Air

Pollution

Control

Source: Frost & Sullivan analysis.

12

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For Additional Information

Donna Jeremiah

Corporate Communications

Asia Pacific

+603 6204 5832

djeremiah@frost.com

Carrie Low

Corporate Communications

Asia Pacific

+603 6204 5910

carrie.low@frost.com

Chukiat Wongtaveerat

Consultant

Environment & Building Technologies

apacfrost@frost.com