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Sewage Treatment Facilities in China - Market Research Report (2014-2029)

IBISWorld IBISWorld Beijing, China Last Updated: November 2024 4620

Revenue

$10.1bn

2024

$10.1bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

93,496

Businesses

2,005

Wages

$X.Xbn

Sewage Treatment Facilities in China industry analysis

Demand for Sewage Treatment Facilities industry services has been steady over the past five years. As a result, industry revenue is expected to grow at an annualized 6.5% over the five years through 2024, to total $10.1 billion. This trend includes expected growth of 5.3% in the current year.
Demand for sewage treatment services has grown substantially due to rapid urbanization and the development of various industrial sectors in China. As more sewage treatment and processing facilities are built across China, more households and businesses are connecting to these services, therefore bolstering demand for treatment, processing and recycling.
The industry has a high level of profitability, with profit expected to account for approximately 12.8% of industry revenue in 2024. Industry operators generate profit either through subsidies from the government or by providing sewage treatment services to the government. Households and businesses also pay sewage treatment fees directly to enterprises in this industry. These fees are expected to increase over the next five years, improving profitability for treatment plants.
The industry officially allowed foreign investment in 2002. Both private and foreign enterprises can operate sewage treatment facilities in China by franchising from the government in the form of build-operate-transfer (BOT) operations; transfer-operate-transfer (TOT) businesses; and public-private partnerships (PPP). The industry is anticipated to franchise more sewage treatment facilities to private or foreign enterprises that specialize in water resource management over the next five years.
Over the next five years through 2029, industry enterprises are forecast to continue benefitting from higher fees and an increasingly urban population. As a result, industry revenue is forecast to grow at an annualized 4.4% over the period, to $12.6 billion.

Trends and Insights

  • Demand for Sewage Treatment Facilities industry services has been steady over the past five years. Domestic demand for the Sewage Treatment Facilities industry is directly related to the urbanization process and the development of China's industrial sector.
  • Households are the largest source of sewage. Therefore, the households is the largest market segment of the industry.
  • Industry activity is mainly concentrated in the East, Middle South and North China regions. East China is forecast to account for the largest share of industry revenue in 2023.
  • There is very limited competition between sewage treatment plants. Typically, several suppliers operate as regional monopolies within defined geographical regions, often a town or a city.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 6.5 % over the past five years, to reach an estimated $10.1bn in 2024.

Trends and Insights

The government encourages private capital to enter the industry

  • This industry is part of China's water resource sector, a public operation that the government has monopolized for many years. Before 2002, the industry was characterized by low government investment, work efficiency and profitability. However, after China's accession to the World Trade Organization in 2001, the government issued policies to encourage foreign and private investment into the construction of municipal public facilities.
  • Additional trends and insights available with purchase
Sewage Treatment Facilities in China
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Favorable policies support the development of the industry

  • The Chinese government has set targets to develop the industry. According to the 14th Five Year Plan for the Development of Urban Sewage Treatment and Resource Utilization, by 2025, the centralized collection rate of urban sewage in China will strive to reach over 70%. The sewage treatment rate in the county areas will reach to over 95%.

Biggest companies in the Sewage Treatment Facilities in China

Company
Market Share (%)
2024
Revenue ($m)
2024
Beijing Enterprises Water Group Limited
1,367.2
Veolia China Holding Limited
860.8
Beijing Capital Co., Ltd.
506.4

To view the market share and analysis for all 9 top companies in this industry, view purchase options.

Products & Services Segmentation

Sewage Treatment Facilities in China
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Household and commercial sewage treatment, Industrial sewage treatment and Consultation and engineering services. Household and commercial sewage treatment is the largest segment of the Sewage Treatment Facilities in China.

Trends and Insights

Sewage treatment services generate the largest share of revenue for the industry

  • According to the classification of sewage sources, sewage treatment is generally divided into production sewage treatment and domestic sewage treatment. Production wastewater includes industrial wastewater, agricultural wastewater, and medical wastewater, while domestic wastewater refers to the wastewater generated in daily life.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Firms in this industry collect, treat, purify, and recycle sewage. They also provide consultation and engineering services relating to sewage treatment and recycling. Sewage is generated from households, industrial production, hospitals, commercial entities, slaughterhouses, and agriculture. Recycled water produced by the industry is supplied to households, offices, and factories for non-drinking use.

What's included in this industry?

Sewage collectionSewage treatment and purificationSewage recyclingSewage-related consultation and engineering services

Companies

Beijing Enterprises Water Group LimitedVeolia China Holding LimitedBeijing Capital Co., Ltd.

Purchase this report to view all 9 major companies in this industry.

Related Terms

BUILD-OPERATE-TRANSFER (BOT)TRANSFER-OPERATE-TRANSFER (TOT)PUBLIC-PRIVATE PARTNERSHIP (PPP)

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Demand for Sewage Treatment Facilities industry services has been steady over the past five years. Domestic demand for the Sewage Treatment Facilities industry is directly re...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Households are the largest source of sewage. Therefore, the households is the largest market segment of the industry.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Industry activity is mainly concentrated in the East, Middle South and North China regions. East China is forecast to account for the largest share of industry revenue in 202...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

There is very limited competition between sewage treatment plants. Typically, several suppliers operate as regional monopolies within defined geographical regions, often a to...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Major enterprises are increasing their investment in research and development to enhance their competitiveness. Enterprises with strong research and development capabilities ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Beijing Enterprises Water Group Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Veolia China Holding Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Beijing Capital Co., Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 6 additional companies

Detailed analysis

  • Description and key data for Beijing Enterprises Water Group Limited, and factors influencing its performance in the industry
  • Description and key data for Veolia China Holding Limited, and factors influencing its performance in the industry
  • Description and key data for Beijing Capital Co., Ltd., and factors influencing its performance in the industry
  • Description, key data and performance trends for 6 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Chinese Government has issued a series of laws and regulations in this industry. These rules set requirements for operation licenses, standards for release of treated wat...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The industry has a high level of profitability, with profit expected to account for approximately 13.4% of industry revenue in 2024. Over half of this profit comes from gover...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Sewage Treatment Facilities industry in China in 2024?

The market size of the Sewage Treatment Facilities industry in China is $10.1bn in 2024.

How many businesses are there in the Sewage Treatment Facilities in China industry in 2024?

There are 2,005 businesses in the Sewage Treatment Facilities industry in China, which has grown at a CAGR of 2.3 % between 2019 and 2024.

Has the Sewage Treatment Facilities industry in China grown or declined over the past 5 years?

The market size of the Sewage Treatment Facilities industry in China has been growing at a CAGR of 6.5 % between 2019 and 2024.

What is the forecast growth of the Sewage Treatment Facilities industry in China over the next 5 years?

Over the next five years, the Sewage Treatment Facilities industry in China is expected to grow.

What are the biggest companies in the Sewage Treatment Facilities market in China?

The biggest companies operating in the Sewage Treatment Facilities market in China are Beijing Enterprises Water Group Limited, Veolia China Holding Limited and Beijing Capital Co., Ltd.

What does the Sewage Treatment Facilities in China include?

Sewage collection and Sewage treatment and purification are part of the Sewage Treatment Facilities industry.

Which companies have the highest market share in the Sewage Treatment Facilities in China?

The company holding the most market share in China is Beijing Enterprises Water Group Limited.

How competitive is the Sewage Treatment Facilities industry in China?

The level of competition is low and increasing in the Sewage Treatment Facilities industry in China.

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Competitors

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Methodology

How are IBISWorld reports created?

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in China include:

  • National Bureau of Statistics China
  • General Administration of Customs
  • People’s Bank of China

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

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