Produced Water Treatment Market Analysis North America, Europe, Middle East and Africa, South America, APAC - US, Russia, Saudi Arabia, United Arab Emirates, Brazil - Size and Forecast 2024-2028

Produced Water Treatment Market Size 2024-2028

The produced water treatment market size is forecast to increase by USD 2.98 billion at a CAGR of 7.06% between 2023 and 2028. The market's expansion is driven by various factors, including escalating global apprehensions about water scarcity, particularly in regions reliant on mature oil fields where produced water volumes are on the rise. This trend is further accentuated by the burgeoning global energy demand. These factors underscore the critical need for innovative solutions to efficiently manage water resources in oil production, highlighting the market's growth potential in addressing these challenges. Additionally, the market growth is fueled by the increasing adoption of advanced technologies and solutions to address water scarcity concerns, such as water treatment and recycling technologies. The rising awareness and regulatory focus on water management practices further contribute to market growth, as industries seek sustainable solutions to manage their water resources effectively. The report includes historic market data from 2018 - 2022.

Market Overview :

•  The onshore segment is the fastest growing segment during the forecast year
• The onshore segment was the largest segment and valued at  USD 4.06 billion in 2018
• The Regional Analysis consists of North America, Europe, Middle East and Africa, South America, and APAC
• North America is is most dominating region during the forecast period
• It also includes an in-depth analysis of drivers (factors influencing market growth), trends (emerging patterns or shifts in consumer behavior), and challenges (barriers or obstacles faced by the industry) 

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Market Trends 

The rise of unconventional oil and gas resources is the main trend in the growth of the market. Oil and gas from unconventional sources require advanced completion and stimulation methods, including hydraulic fracturing, acidification, and other advanced techniques. The share of oil and gas produced from unconventional sources is expected to increase significantly over the next decade. Unconventional E and P activities involve large amounts of water use and consequently the need for effective water management services.

As per the US Environmental Impact Assessment (EIA), shale gas and associated gas from tight oil fields will account for nearly two-thirds of the total natural gas production in the country by 2040.  The US EIA expects that global tight oil production will more than double during 2015-2040. Other major contributions to global tight oil production in 2040 will come from Russia, Canada, and Argentina. As per the US EIA, natural gas production from unconventional sources will increase in countries such as China and the US. This will lead to an increased demand for produced water treatment systems in these countries, thereby boosting the growth of the market during the forecast period.

Market Segmentation

By Application

The market share growth by the onshore segment will be significant during the forecast period. The market in the onshore segment is expected to grow moderately during the forecast period. The onshore segment has been the major contributor to global oil and gas production.

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The onshore segment was valued at USD 4.06 billion in 2018. The US shale gas boom in recent years has formed a major base of the produced water treatment market. Shale gas production involves massive amounts of water for injection in hydraulic fracturing, which leads to the release of natural gas trapped in the shale formations. The injected water is received at the surface as produced water. This will drive the growth of the global produced water treatment market during the forecast period.

Regional Analysis

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North America is estimated to contribute 41% 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 market during the forecast period. The US and Canada are the major contributors to oil and gas production in North America. The history of the US oil and gas industry goes back more than a century, and the country is currently the largest producer of crude oil in the world. The majority of the oilfields in the US have neared maturity, leading to increased quantities of produced water. Moreover, the boom in the shale gas industry in the US also contributes to the large quantities of produced water in the North American region.

Market Dynamics

The market is driven by the oil and gas industry's increasing need to treat large volumes of produced water generated during oil and gas exploration and production. With the growth of urbanization and population, the demand for fossil fuels such as crude oil and natural gas is rising, leading to higher industrial activities and transportation needs. As a result, the market for treating produced water from oil and gas reservoirs is expanding. The industry employs various techniques like membrane filtration and electrocoagulation to remove oil droplets, sediments, mud particles, heavy metal particles, salts, hydrocarbons, and organic compounds from produced water, meeting both technological advancements and regulatory requirements. Produced water treatment often involves using water and wastewater treatment chemicals to effectively manage and purify water extracted during oil and gas production, ensuring environmental safety and regulatory compliance.

Our researchers analyzed the data with 2023 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.

Key Market Driver

Growing global concern over water scarcity is a key factor driving the growth of the market. According to the United Nations, water stress begins when a country's available water falls below 1,700 m3/year or 4,600 liters/day per person. Absolute water scarcity is considered for countries with less than 500 m3/year or roughly 1,400 liters/day per person. According to this definition, in the current scenario, almost 49 countries are suffering from water stress, of which 9 are suffering from water stress and 21 are facing absolute water stress. These facts reveal the reason for the global consensus on saving water and saving water.

Geographically, countries and various states with huge industrial bases and large populations, such as California in the United States and Chennai in India, are places of water scarcity and continue to struggle when it comes to allocating adequate amounts of water. This is influenced by energy consumption, market competition, research and development efforts, membrane filtration, electrocoagulation, technological advancements, regulatory requirements, water scarcity, environmental concerns, and freshwater usage While some parts of the world have yet to feel the pressure of water scarcity, it is entirely feasible for businesses to plan and implement water-saving technologies. These factors are expected to boost the demand for produced water treatment during the forecast period.

Major Market Challenge

Increasing the use of renewable energy sources is a major challenge for the growth of the market. Renewable energy sources will play a key role in the transition to a highly sustainable, low-carbon world. In addition, competitive prices for power generation, coupled with low-temperature gas (GHG) emissions from the use of renewable energy sources, are attracting investment in the renewable energy sector around the world. According to the Global Wind Energy Council (GWEC), the EU has set a target of achieving a 35% share of electricity generation from renewable sources by 2030. Hence, the renewable energy sector is growing rapidly due to government support and increasing investment.

Currently, the Euro-VI emission norms are being followed in the EU countries and have become the basis for the formulation of emission norms in other countries such as India. Thus, the reduction in the demand for oil and gas in these nations will directly affect the upstream industry where produced water treatment systems are employed. Such factors will significantly impact the growth of the market during the forecast period.

Market Customer Landscape

The market research 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.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alderley - The company offers produced water treatment solutions such as AP20 Hydrocyclone Liner. Also, under this segment, the company offers gas metering systems, turbine meters, and de-oiling and de-sanding hydro-cyclone equipment.

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

• Aker Solutions ASA
• Alderley Plc
• Aquatech International LLC
• Baker Hughes Co.
• Enviro Tech Systems
• Exterran Corp.
• Frames Energy Systems BV
• Genesis Water Technologies Inc.
• Halliburton Co.
• IDE Water Technologies
• Minerals Technologies Inc.
• NOV Inc.
• Ovivo Inc.
• Prosep Inc.
• Schlumberger Ltd.
• Siemens Energy AG
• SUEZ SA
• TechnipFMC plc
• Veolia Environnement SA
• Weatherford International Plc

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. 

• Application Outlook 
  • Onshore
  • Offshore
• Technology Outlook 
  • Secondary treatment
  • Primary treatment
  • Tertiary treatment
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The oil & gas exploration sector faces challenges related to population growth and water bodies, necessitating the use of saltwater disposal wells and lined evaporation pits. Stringent regulations from the Environment Protection Agency (EPA) govern offshore & onshore drilling activities and the use of chemicals in drilling. To comply, companies employ innovative treatment solutions to manage harmful contaminants in oil-contained water from oil & gas reservoirs. Advanced chemical treatment processes and treatment technologies are vital for ensuring compliance and protecting ecosystems. These efforts address challenges such as scarcity of fresh water and maintain the productivity of oil & gas extraction sites while safeguarding the water table and river streams.

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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