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The desalination market is estimated to grow at a CAGR of 8.77% between 2022 and 2027. The size of the market is forecast to increase by USD 8,863.71 million. The growth of the market depends on several factors, including an increase in population and a rise in demand for consumable water, the change in climatic conditions and increased investments, and an increase in demand for membrane technology.
This report extensively covers market segmentation by technology (membrane and thermal), application (municipal, industrial, and others), and geography (Middle East and Africa, APAC, North America, Europe, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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 of which 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.
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.
The increasing use of renewable power sources is the primary trend shaping the water desalination 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.
The high costs of the initial investment in a desalination plant are a major challenge to water desalination 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 fund. 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.
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.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Desalination Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the water desalination market.
biwater.com: - 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 vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The water desalination 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 9,433.57 million in 2017 and continue to grow by 2021. 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. 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.
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Middle East and Africa are estimated to contribute 60% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the water desalination market during the forecast period.
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.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for the Middle East and Africa. However, as a result of large-scale vaccination drives across MEA in 2021, lockdown restrictions were lifted in a large number of nations, which allowed the restoration of several commercial and developmental activities in MEA. Therefore, in 2021, it helped further the desalination plants to resume operations, fueling the growth of the regional water desalination market in MEA during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Desalination Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.77% |
Market growth 2023-2027 |
USD 8,863.71 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.26 |
Regional analysis |
Middle East and Africa, APAC, North America, Europe, and South America |
Performing market contribution |
Middle East and Africa at 60% |
Key countries |
US, Saudi Arabia, United Arab Emirates, Kuwait, and Australia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acciona SA, Aquatech International LLC, Asahi Kasei Corp., Biwater Holdings Ltd., Consolidated Water Co. Ltd., Doosan Corp., DuPont de Nemours Inc., Ferrovial SA, IDE Water Technologies, Kurita Water Industries Ltd., Mitsubishi Heavy Industries Ltd., Osmoflo Water Management Pty. Ltd., Poseidon Water LLC, ProMinent GmbH, Sacyr SA, TEMAK SA, Toyobo Co. Ltd., Veolia Environment SA, Webuild, and Hyflux Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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