VOCs control has become a key link in controlling air pollution, and the industry will usher in explosive growth

The issue of air pollution control has always been closely related to the "Blue Sky Defense Campaign", and it is one of the three major environmental protection battles that must be tackled. Among them, VOCs treatment has become the focus of air pollution control and has attracted attention from all sectors of society. It is predicted that the VOCs treatment market will experience explosive growth.

Recently, the severe ozone pollution problem in the Beijing-Tianjin-Hebei region has once again raised the attention to the issue of air pollution prevention and control. Both PM2.5 and ozone point to a common governance point - VOCs emissions. 

The VOCs emission reduction targets have been included in the "13th Five-Year Plan", and more than 40 cities across the country have released VOCs governance and rectification plans, and 17 provinces (autonomous regions, municipalities) have issued local VOCs charging standards. The national policies are continuously promoting the VOCs governance process, and local policies are responding to the call for VOCs emission reduction. Some standards have even been higher than the national standards. 

This means that the prosperity of the VOCs governance market has already had the basic conditions for the overall environment. To encourage each province and municipality to implement the VOCs governance tasks, China has introduced VOCs fiscal subsidy policies. Beijing also took the lead in introducing the "Reward Fund Management Measures for Atmospheric Pollution Prevention and Control Technology Transformation Projects" in 2014, improving the basis for VOCs fiscal subsidies. Up to now, except for Beijing, Shanghai, Tianjin, Hebei and other provinces have successively promulgated award and subsidy policies, and Chongqing, Shandong and other places are formulating them. 

The determination of the state and local authorities for VOCs governance is beyond doubt. The formulation of governance plans and plans, goals and tasks have driven the rise of the entire VOCs governance market. According to the statistics of E20 Research Institute, the VOCs market size will exceed 81.5 billion yuan by the end of "12th Five-Year Plan", and the VOCs governance market will experience explosive growth during the "13th Five-Year Plan", with a market size expected to exceed 200 billion yuan. 

A relevant person in charge of the Guangdong Environmental Protection Industry Association once said that the country's increasing attention to VOCs governance will give rise to a huge VOCs governance market, "It is preliminarily estimated that the market cake will reach over 180 billion yuan." Many industry insiders also hold a positive attitude towards the potential of the VOCs governance market. Hao Zhengping, the secretary-general of the Waste Gas Purification Committee of the China Environmental Protection Industry Association, said, "The VOCs governance industry will enter the fast lane of development." 

A research report by Cinda Securities believes that the market space for VOCs monitoring and governance in 2017-2018 is approximately 43.8 billion yuan. Analysts from Haitong Securities believe that by 2020, the market space brought by the reduction and control of VOCs emissions from industrial sources is expected to reach 180.9 billion yuan, and the value of the VOCs monitoring market is estimated to be 4.865 billion yuan. CITICS New Third Board Research believes that the demand for governance facilities during the "13th Five-Year Plan" exceeds 90 billion yuan, and the VOCs governance market size is expected to reach around 40 billion yuan in 2020. 

Although the predictions of industry insiders and research institutions are not entirely consistent, they all fully recognize that the VOCs governance industry will enter an upward period. Such predictions are not completely without trace, and the operational conditions of VOCs governance-related enterprises in the market are sufficient to give a glimpse. 

According to statistics, there are currently 33 VOCs-related companies listed on the New Third Board, accounting for 21.6% of the entire ecological protection and environmental governance industry. In 2016, there were 19 companies in the VOCs governance industry on the New Third Board, with overall revenue/net profit growth rates reaching 9.25%/9.17%, and 6 companies achieved positive net profit growth, with 5 companies growing by more than 5%. 

From the revenue indicators in 2015, more than 100 million yuan was achieved by 42% of the 33 companies, which is a very high proportion in the entire ecological protection and environmental governance industry, indicating that the industry of atmospheric pollution governance enterprises has a high degree of industry prosperity. From the profit indicators in 2015, there were 2 companies with over 50 million yuan and 5 companies with 200 million - 500 million yuan.

In addition, the industry's prediction of a market size of 150-200 billion yuan for VOCs treatment is not groundless. Public data shows that based on the 40-plus cities that have released treatment plans, the number of key VOCs treatment enterprises in each city is taken as the average of 300, and combined with the average treatment cost of 3 million yuan per enterprise, the average treatment cost per city is approximately 900 million yuan. Nine billion for one city, and over 200 cities and regions across the country, a rough estimate suggests that the VOCs treatment market size in the next three years will not be lower than 180 billion yuan.

At this point, in the context of people's call for the return of "blue skies", VOCs treatment has embarked on a broad and prosperous path. From PM2.5 to ozone pollution, waste gas treatment always cannot avoid the key point of VOCs emissions for treatment. Therefore, the rapid development of the VOCs treatment market has become a consensus in the industry.