Market Analysis and Insights
The market for water desalination is projected to grow at a compound annual growth rate (CAGR) of 8.10% from 2022 to 2030, reaching USD 28.85 billion.
.jpg "The Global Water Desalination Market 2020-2030 (USD Billion)")
The market's expansion is being ascribed to rising water shortages, fast urbanization, and increased industrialisation in emerging nations. Rising water demand in all locations is one of the primary reasons for the increased use of water desalination facilities.
Water Desalination Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | USD 28.85 billion |
| Growth Rate | CAGR of 8.10 % during 2022-2030 |
| Segment Covered | By Technology ,By Source , By Application, by Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | SUEZ, Doosan Heavy Industries & Construction, ACCIONA, Genesis Water Technologies, Veolia, Mitsubishi Chemical Corporation, Aquatech International LLC, IDE Water Technologies, Aqua FilSep Inc., and Biwater Holdings Limited. |
Market Definition
The process of eliminating salt and other contaminants from saltwater or brackish water to make it appropriate for drinking, irrigation, industrial operations, or other applications is known as desalination. This is often accomplished via a variety of processes like distillation, reverse osmosis, and electrodialysis, among others. Desalination is an essential technology in regions with limited freshwater resources, as it provides a means to obtain potable water from abundant salt water sources.
The global water desalination market refers to the industry dedicated to the purification of saline water sources, such as seawater or brackish groundwater, to make it suitable for various human, industrial, and agricultural insurance uses. This market includes reverse osmosis, distilling, and electrodialysis, among other methods and amenities used to eliminate salt and pollutants from water. It is essential for tackling the problems associated with water scarcity, particularly in areas where freshwater resources are scarce. The market involves the production and deployment of desalination plants, equipment, and associated services. As the demand for clean and potable water continues to rise due to population growth and climate change consulting, the global water desalination market represents a vital sector for ensuring sustainable access to freshwater resources across the world.
Key Market Segmentation
Insights on Technology
The Reverse Osmosis (RO) segment emerged as the most lucrative
RO is a pressure-driven membrane process that separates salt and other impurities from water by passing it through a semipermeable membrane. RO is a reasonably energy-effective method of desalinating saltwater and brackish water.
MSF (multi-stage flash) is a heating desalination method that dissipates saltwater using heat. Freshwater is produced by condensing the evaporating water. MSF is a more energy-intensive process than RO, but it is more effective at desalinating highly saline water.
Multi-effect distillation (MED) is another thermal desalination technology that uses heat to evaporate seawater. MED uses less energy than MSF, but it is more expensive to install and maintain. MED is most commonly utilized in large-scale desalination plants.
Other desalination technologies include electrodialysis (ED), electrodialysis reversal (EDR), and membrane distillation (MD). These technologies are less widely used than RO, MSF, and MED, but they are gaining popularity due to their advantages, such as lower energy consumption and the ability to desalinate wastewater.
Insight on Source
The seawater category is the most significant and rapidly developing section of the global water desalination market.
This is because seawater is the most abundant source of water on Earth. Seawater desalination is also becoming more efficient and cost-effective, which is driving its growth.
The brackish water segment is the second-largest segment of the global water desalination market, accounting for over 30% of the market share in 2023. Although brackish water tends to be less saline than salt water, it is nevertheless too salty to consume. Brackish water desalination is becoming increasingly popular in areas where freshwater resources are scarce and seawater desalination is not feasible.
The wastewater segment is the smallest segment of the global water desalination market, accounting for less than 10% of the market share in 2023.
However, as governments and companies become more focused on water conservation and reuse, this industry is likely to increase substantially in the future years. By recycling wastewater and making it usable again, wastewater desalination can lessen the need for freshwater resources.
Insights on Application
The Municipal Segment Accounted for the Highest Share
The increasing demand for drinking water in urban areas due to rapid urbanization is driving the growth of the municipal segment. Additionally, government initiatives to provide clean drinking water to all citizens are also contributing to the growth of this segment.
During the projection period, the industrial segment is predicted to develop at the quickest CAGR. The growing need for water from numerous industries such as electricity production, oil & gas, and mining is propelling the expansion of this industry. Additionally, the growing environmental concerns are forcing industries to adopt sustainable water management practices, which is further boosting the growth of the industrial segment.
The other applications segment includes agriculture, tourism, and disaster relief. Due to increased demand for irrigation water, the agricultural segment is likely to rise at a substantial CAGR over the forecast period. Tourism is also predicted to expand steadily, owing to an increase in the number of visitors visiting water-scarce regions.
Insights on Region
The MEA Region Accounted for the Highest Share
The Middle East and Africa (MEA) region is the largest market for water desalination, accounting for over 40% of the global market revenue in 2023. This is due to the region's limited freshwater resources, rapid population growth, and urbanization. Saudi Arabia, the United Arab Emirates, and Qatar are the MEA region's largest desalination markets.
With a CAGR of more than 10% predicted throughout the projection period, the Asia Pacific area is the fastest-growing market for water desalination. Factors such as rising water shortages, population increase, and industrialisation are driving this growth. China, India, and Australia are the Asia Pacific region's largest desalination markets.
The North American region is a mature market for water desalination, with the United States being the largest market in the region. The market is predicted to expand gradually over the forecast period, owing to factors such as rising water shortages in the southwest and western United States.
The European market for water desalination is relatively small, but it is expected to grow at a moderate pace over the forecast period. Aspects such as increasing water scarcity in southern Europe and increasing requirements for desalinated water for corporate usage are driving this expansion. Spain, Italy, and Greece are the leading desalination markets in Europe.
The Latin American market for water desalination is small but has the potential for significant growth in the coming years. The variables such as growing shortages of water in the region's shoreline regions and rising demand for water that is desalinated for tourist and industrial usage are driving this increase. Chile, Mexico, and Peru are the leading desalination markets in Latin America.
Key Company Profiles
Major market companies are investing heavily in research and development to expand their product lines, which will help water desalination grow even further. Market participants are also expanding their global presence through a variety of strategic activities, such as new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other companies. Water desalination competitors are growing their market presence internationally, as the industry is likely to grow in the future.
The top firms in the global water desalination industry are SUEZ, Doosan Heavy Industries & Construction, ACCIONA, Genesis Water Technologies, Veolia, Mitsubishi Chemical Corporation, Aquatech International LLC, IDE Water Technologies, Aqua FilSep Inc., and Biwater Holdings Limited.
COVID-19 Impact and Market Status
In the immediate aftermath, the COVID-19 outbreak had a detrimental influence on the worldwide water desalination business. Demand for water desalination equipment and services fell in 2020 as a result of supply chain problems, building delays, and lower government investment. However, the industry is likely to rebound in the coming years, owing to rising water shortages and the demand for long-term water solutions. It is also supported by a variety of enterprises, including municipal, industrial, and agricultural.
Latest Trends
Growing water scarcity: With two-thirds of the population of the globe residing within resource-stressed locations, water shortage is a serious worldwide concern. Desalination can assist in fulfilling these regions' increased water demand.
Rapid urbanization and industry: Rapid urbanization and industrialization increase water demand and pollution. Desalination can assist in providing a consistent supply of clean water in urban and industrial settings.
Technological advancements: Desalination technologies are becoming more effective and affordable as technology advances. For example, the development of new membrane technologies has led to a significant reduction in the energy consumption of desalination plants.
Government incentive: To solve water scarcity, governments throughout the world are investing in desalination facilities. The Middle East and Africa area, for example, is the largest market for desalination, with governments in the region extensively investing in desalination facilities to address the region's expanding water demands.
Recent Developments in the Global Water Desalination Market: A Snapshot
In July 2023, Saudi Arabia announced plans to build the world's largest desalination plant, with a capacity of 2.5 million m3/d.
In June 2023, the United States Department of Energy awarded $1.5 million in funding to a consortium of companies to develop a new desalination technology that uses solar energy.
In May 2023, the Australian government announced plans to invest $100 million in desalination research and development.
In April 2023, the Chinese company Beijing Enterprises Water Group signed a contract to build a desalination plant in Qatar with a capacity of 600,000 m3/d.
Significant Growth Factors
Water scarcity and depletion of freshwater resources: The global population is growing rapidly, and so is the water demand. However, freshwater resources are limited and are being depleted at an alarming rate due to climate change, pollution, and overexploitation. Many regions of the world are experiencing water scarcity as a result, and desalination is becoming an increasingly significant supply of freshwater.
Rapid urbanization and industrialization: Urbanization and industrialization are also contributing to water scarcity. The demand for water rises as more people live in urban areas. Additionally, industrial activities require large amounts of water. Freshwater supplies are being strained in many urban and industrial regions as a result of this.
Desalination technologies have advanced greatly in recent years, making them more efficient and cost-effective. Desalination is now a more realistic alternative for fulfilling water demands in water-stressed locations.
Government support: Many governments are assisting in the research development and implementation of desalination technology. This is being done through financial incentives, regulatory reforms, and public-private partnerships.
Restraining Factors
High capital and operational costs: The construction and operation of desalination plants require a significant amount of capital investment. Additionally, the energy costs associated with desalination can be high, especially for thermal desalination technologies.
Environmental concerns: Desalination plants can hurt the marine environment, such as through the intake of seawater and the discharge of brine. Brine is a concentrated salt solution produced by the desalination process. f discharged directly into the ocean, brine can damage marine ecosystems by increasing salinity and reducing oxygen levels.
Renewable energy sources are in short supply: Desalination facilities demand a lot of energy to run. While reverse osmosis (RO) desalination is the most energy-efficient desalination technology, it still requires a significant amount of energy. This can be difficult in areas where renewable energy sources are few or prohibitively expensive.
Lack of awareness and technical expertise: In some developing countries, there is a lack of awareness of the benefits of desalination and the technical expertise required to design, build, and operate desalination plants. This can hinder the adoption of desalination technology in these countries.
Despite these restraining factors, the global water desalination market is expected to grow significantly in the coming years, driven by increasing water scarcity and growing demand for clean water in arid and semi-arid regions.
Key Segments
Key Segments of the Global Water Desalination Market
Technology Overview (USD Million)
• Reverse Osmosis (RO)
• Multi-Stage Flash (MSF)
• Multi-Effect Distillation (MED)
• Others
Source Overview (USD Million)
• Sea Water
• Brackish Water
• Wastewater
•Others
Application Overview (USD Million)
• Municipal
• Industrial
• Others
Regional Overview (USD Million)
North America
• U.S.
• Canada
• Mexico
Europe
• Germany
• France
• U.K.
• Spain
• Italy
• Russia
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• South Korea
• ASEAN
• Australia
• Rest of Asia Pacific
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Egypt
• Ghana
• Rest of MEA
Latin America
• Brazil
• Argentina
• Colombia
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The market value of water desalination market in 2030 was USD 28.85 billion.
The water desalination market is growing at a CAGR of 8.10% over the forecast period.
The top companies that hold the market share in water desalination market are SUEZ, Doosan Heavy Industries & Construction, ACCIONA, Genesis Water Technologies, Veolia, Mitsubishi Chemical Corporation, Aquatech International LLC, IDE Water Technologies, Aqua FilSep Inc., and Biwater Holdings Limited.