1. Municipal sewage treatment capacity continues to improve

        
   

   Sewage treatment refers to the process of removing or reducing solid pollutants and organic pollutants in different types of sewage through various professional treatment technologies and methods, so that the purified water can meet the requirements for reuse or discharge.

   
   

   my country’s sewage treatment industry started in the 1980s and 1990s. Due to its characteristics of people’s livelihood, large investment, and high technical requirements, the initial stage was mainly led by the government. At that time, the investment in the construction of pipe networks and sewage treatment facilities was large. , But the overall industry volume is small. With the gradual liberalization of the marketization of municipal public utilities, the sewage treatment industry's treatment volume and scale have also continued to expand.

   
   

   In the past two decades, my country's municipal sewage treatment capacity has greatly increased. Urban sewage treatment capacity increased from 61.55 million cubic meters per day in 2002 to 191.71 million cubic meters per day in 2019, with a compound annual growth rate of 6.9%; county sewage treatment capacity increased from 871,200 cubic meters per day in 2002 to In 2018, it was 24,832,900 cubic meters per day, with a compound annual growth rate of 23.29%.

                              Chart 1: 2002-2019 National City and County Sewage Treatment Capacity (10,000 cubic meters/day)

2. Broad market space for industrial wastewater treatment 

The rapid development of industrialization is conducive to the enhancement of national power, but the discharge of industrial wastewater has also caused very serious environmental pollution problems. Industrial waste water includes production waste water, production sewage and cooling water. It refers to waste water and liquid waste generated in the industrial production process, which contains industrial production materials, intermediate products, by-products and pollutants generated during the production process that are lost with water. Due to the wide variety of industrial wastewater, complex composition, high treatment difficulty and high cost, the corresponding treatment unit price is also high. In 2019, the scale of my country's industrial wastewater treatment market was RMB 100.75 billion, a year-on-year increase of 8.5%.

   Chart 2: 2014-2019 National Industrial Wastewater Treatment Market Scale (100 million yuan)

3. Improve quality and efficiency to promote the further development of the industry

After the rapid "quantity increase" meets the staged requirements, "upgrade" has become a new driving force for the development of the sewage treatment industry. "Improving standards" means raising sewage discharge standards, and the improvement of discharge standards requires technical upgrades in operation and treatment. The “Ten Water Regulations” issued in 2015 clearly stipulated that “Urban sewage treatment facilities should be transformed to meet the corresponding discharge standards by 2020. Among them, sensitive areas should fully meet the Grade A standard by the end of 2017, and the water quality of built-up areas cannot reach the surface. The new sewage treatment plant facilities required by IV must implement the Grade A standard", which has greatly accelerated the promotion and transformation of sewage treatment plants across the country.

Since 2010, the investment in fixed assets of sewage treatment and recycling facilities in my country is shown in the figure below:

Chart 3: 2010-2019 National sewage treatment fixed asset investment and the number of sewage treatment plants (100 million yuan, home)

With the significant increase in investment in the sewage treatment industry in recent years, the improvement of sewage treatment standards has driven the continuous growth of fixed asset investment and is expected to further promote the innovative development of the industry.