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The produced water treatment market is estimated to grow at a CAGR of 7.93% between 2022 and 2027. The size of the market is forecast to increase by USD 3,200.76 million. The growth of the market depends on several factors, including the increasing global concerns regarding water scarcity, the increased produced water volumes in mature oil fields, and the increase in world energy demand.
This report extensively covers market segmentation by application (onshore and offshore), technology (secondary treatment, primary treatment, and tertiary treatment), and geography (North America, Europe, Middle East and Africa, South America, and APAC). 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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Technavio categorizes the global produced water treatment market as a part of the global water utility market within the global utility market. The parent market, the global water utility market, covers revenue generated by the companies that purchase and redistribute water to the end consumer, including large-scale water treatment companies. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increasing global concerns regarding water scarcity are notably driving the market growth, although factors such as the increasing use of renewable energy sources may impede the market growth. 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.
Key Produced Water Treatment Market Driver
Growing global concern over water scarcity is a key factor driving the growth of the global produced water treatment 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. 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.
Significant Produced Water Treatment Market Trend
The rise of unconventional oil and gas resources is the main trend in the growth of the global electric water treatment market. Oil and gas from unconventional sources require advanced good 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 global produced water treatment market during the forecast period.
Major Produced Water Treatment Market Challenge
Increasing the use of renewable energy sources is a major challenge for the growth of the global produced water treatment 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 global produced water treatment market during the forecast period.
Key Produced Water Treatment Market Customer Landscape
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 Produced Water Treatment 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 market.
alderley.com - 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 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 market share growth by the onshore segment will be significant during the forecast period. The global produced water treatment 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 3,842.83 million in 2017 and continue to grow by 2021. 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.
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North America is estimated to contribute 40% 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.
However, the recovery phase started with the introduction of COVID-19 vaccines in Q4 2020, which led to a decline in the number of COVID-19 cases and the lifting of lockdown restrictions, which led to the resumption of offshore oil and gas projects that, in turn, are expected to positively impact the growth of the market during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Application (Onshore and Offshore), Technology (Secondary treatment, Primary treatment, and Tertiary treatment), and Geography (North America, Europe, Middle East and Africa, South America, and APAC).
Produced Water Treatment Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.93% |
Market growth 2023-2027 |
USD 3,200.76 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.22 |
Regional analysis |
North America, Europe, Middle East and Africa, South America, and APAC |
Performing market contribution |
North America at 40% |
Key countries |
US, Saudi Arabia, United Arab Emirates, Russia, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
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 Group, and Weatherford International Plc |
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, 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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