Desalination Market Analysis Middle East and Africa, APAC, North America, Europe, South America - Saudi Arabia, United Arab Emirates, US, Kuwait, Australia - Size and Forecast 2024-2028

Desalination Market Size 2024-2028

The desalination market size is forecast to increase by USD 9.08 billion with growth at a CAGR of 8.43% between 2023 and 2028. The growth of the market depends on several factors, including an increase in population and a rise in demand for consumable water, a change in climatic conditions and increased investments, and an increase in demand for membrane technology. The primary driver behind the global water desalination market's expansion is the growth in population and the escalating demand for potable water. Projections by the World Bank Group indicate a global population surge to 9.73 billion by 2050, with only 2.2 billion currently accessing safe drinking water. Given the uneven distribution of freshwater resources globally, there's an anticipated rise in desalination demand. Additionally, the surge in clean water requirements is attributed to population growth and dietary shifts, particularly impacting the agricultural sector worldwide.

What will be the  Market Size During the Forecast Period?

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Market Dynamics

 The desalination market refers to the industry dedicated to addressing water scarcity by transforming brackish or seawater into freshwater sources. This process challenges several assumptions, particularly regarding agricultural purposes and consumption patterns. Traditional water resources, such as groundwater and surface water, are increasingly strained due to excess salts, minerals, and other impurities. Desalination technologies, including membrane processes like reverse osmosis and nanofiltration, play a crucial role in mitigating these challenges. These processes rely on osmotic pressures, electric potential, and concentration gradients to separate water from impurities. However, desalination is an energy-intensive process, leading to significant energy usage and byproduct generation.

Feedwater sources for desalination can include brackish water, which contains moderate salt levels, and seawater, which has higher salt concentrations. The desalination process removes excess salts and minerals, resulting in freshwater suitable for various purposes. Desalination processes often utilize water and wastewater treatment chemicals to enhance the efficiency of removing salts and impurities from seawater, ensuring the production of high-quality fresh water. Despite its energy requirements, desalination is an essential solution for securing freshwater sources in water-stressed regions. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

The increase in population and rise in demand for consumable water is the key factor driving the global water desalination market growth. The rising global population and increasing demand for consumable water are the key factors that drive the growth of the global market. By 2050, according to the World Bank Group, the global population is anticipated to reach 9.73 billion, and only 2.2 billion people by the first half of 2022 had access to safe consumable water. Globally, freshwater reserves are unevenly distributed, and the demand for desalination will witness an increase over the forecast period. Moreover, the increasing demand for clean water is mainly due to the rise in population and dietary changes. Clean water is extensively used in the global agricultural sector.

Moreover, the demand for water in the industrial and energy sectors accounts for around 20% of the global demand. For other purposes, such as raw materials for solvent processing, steam generation, and heating and cooling systems, the demand accounts for around 10%. However, the increasing global population, coupled with rapid urbanization, industrialization, and pollution, would trigger the demand for clean and consumable water; this would enhance the growth of the market during the forecast period.

Significant Market Trends 

The increasing use of renewable power sources is the primary trend shaping the market. Due to the high costs involved in the desalination process and the related equipment, the key vendors are focusing on establishing desalination plants that would work on renewable power sources. The highly intensive, energy-consuming desalination process is expected to witness a significant turnaround in terms of energy sources over the forecast period. Adopting renewable power sources would drastically reduce the energy consumption of desalination plants.

Moreover, the use of renewable power sources, including solar power, geothermal power, and photovoltaic arrays, will reduce the dependency on state-run power sectors that supply electricity in bulk for desalination projects. Furthermore, economies, including the US, Australia, South Africa, China, and India, are expected to adopt renewable power sources for desalination projects; this would provide immense growth opportunities for the market during the forecast period.

Major Market Challenge

The high costs of the initial investment in a desalination plant are a major challenge to market growth. The costs of desalination have declined over the last few years, but the CAPEX involved in setting up a desalination plant is still high. The cost of producing desalinated water depends on numerous factors, including power-use efficiency, the capacity of the plant, sources of energy, proximity to water sources, and project funds. It requires substantially more energy than other water treatment technologies and systems. The total system cost will also be impacted by an increase in the salinity of the water.

However, the equipment used in desalination plants is prone to corrosion because of their increased exposure to saltwater and contaminated water. Therefore, they require an effective maintenance system to limit the impact caused by corrosion. These high costs involved in desalination plants hinder the growth of the market.

Market Segmentation 

By Technology

The market share growth by the membrane segment will be significant during the forecast period. The membrane technology segment held the highest share of the market and is expected to retain its dominant position during the forecast period. The technology segment witnessed significant growth during the last decade. It is particularly suitable for regions with high water stress and limited energy resources. The key techniques involved in this segment include RO, electrodialysis, electrodialysis reversal process, Nanofiltration, and others. 

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The membrane segments were valued at USD 10.05 billion in 2018. Membrane technology involves the passage of water through a semi-permeable membrane under high pressure. Recent advances in energy recovery systems have improved the performance of membranes and pretreatment processes. In addition, the advances in material science have increased the efficiency of membrane technology, enabling the system to operate at low pressure, thereby reducing the energy consumed. The advances include the uniformity and production of pores in the membranes. The RO membrane is the finest segregation material available in the industry. The sizes of the pores in RO membranes vary depending on the various techniques used. Such factors will increase the water desalination market growth during the forecast period.

Region Analysis

Middle East and Africa is estimated to contribute 60% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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MEA is expected to maintain its dominance during the forecast period. It is mainly due to the presence of numerous countries with insufficient freshwater resources and high investment capabilities to harness desalination techniques to meet their constant rise in demand for consumable water. The region comprises certain arid areas, including the Middle East and Northern Africa, where the population along the coast exceeds 70%. Desalination offers sustainable solutions to problems related to the scarcity of freshwater resources. Because of the limited rainfall and exhaustive climate in the Middle East and Mediterranean region, the number of desalination plant projects is high. Thermal desalination technology is expected to be the most adopted technology in the region during the forecast period because of its access to low-cost fossil fuel, cogeneration of power and water plants, and high availability of seawater. Furthermore, the region exhibits an increasing demand for membrane technology, particularly RO, because of its cost-effectiveness and reduced energy consumption. Such factors will increase the market growth during the forecast period.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Biwater Holdings Ltd.-  The company offers desalination through advanced water purification systems, incorporating membrane treatment technologies to develop new indirect and direct potable reuse plants that can treat and reuse wastewater for potable consumption. Also, the company provides large-scale water and wastewater solutions for cities across the world.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including: 

Acciona SA, Asahi Kasei Corp., Bechtel Corp., Biwater Holdings Ltd., Consolidated Water Co. Ltd., Doosan Corp., DuPont de Nemours Inc., Ferrovial SA, Hyflux Ltd., IDE Water Technologies, Kurita Water Industries Ltd, Mitsubishi Heavy Industries Ltd., Osmoflo, Poseidon Water LLC, ProMinent GmbH, TEMAK SA, Toyobo Co. Ltd., Veolia Environnement SA, and Webuild

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Technology Outlook 
  • Membrane
  • Thermal
• Application Outlook 
  • Municipal
  • Industrial
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market plays a crucial role in addressing global water shortages and ensuring water security amidst increasing population and urbanization. Utilizing advanced technologies like thermal distillation and membrane separation, these plants combat water pollution and ensure water quality through rigorous desalination procedures. They mitigate environmental issues by implementing environmentally friendly practices and adhering to strict regulations set by environmental bodies like the Wildlife Federation.

Key components such as pressure vessels, evaporators, and energy recovery devices optimize energy efficiencies and reduce capital costs over the lifespan of the plants. Despite initial post-treatment costs and challenges like membrane fouling, the market benefits from ongoing advancements in renewable technologies and partnerships with stakeholders like Engie and EWEC. Inland and marine ecosystems benefit from minimized impingement and intake screen impacts, ensuring minimal disturbance to flora and fauna. As the demand for desalinated water grows, these plants remain pivotal in securing sustainable water resources globally.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market and its contribution  in focus to the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the market across Middle East and Africa, APAC, North America, Europe, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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