Desalination Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Desalination Market By Technology (Multi Stage Flash (MSF), Reverse Osmosis (RO), Multi Effect Distillation (MED), Electrodialysis (ED), Others), By Source (Seawater, Brackish water, Wastewater), By Energy Source (Renewable, Non-renewable), By End-User (Municipal, Industrial, Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Desalination Market Size

Global Desalination Market reached US$ 7.5 billion in 2022 and is expected to reach US$ 15.3 billion by 2031 growing with a CAGR of 9.3% during the forecast period 2024-2031.

The desalination market has been experiencing significant growth for the past many years due to several factors including increasing water scarcity, growing population, urbanization, and industrialization are driving the demand for alternative water sources, with desalination being a viable solution. Furthermore, various countries across the globe have invested in the market growth.

For instance, Currently, 76 of Egypt's 90 seawater desalination plants have been finished and are completely operational, with a daily capacity of 850 x 109 M3 and a total capacity of 1.3 x 109 M3. These facilities cost 12 x 109 Egyptian pounds. Additionally, Egypt unveiled a five-year plan in July 2020 to build 47 desalination units worth an estimated US$2.8 billion. By the end of 2025, the program is anticipated to have increased the nation's total desalination capacity by 2.44m3/d.

Desalination Market Summary

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Desalination Market Dynamics

Growing Water Scarcity

According to the United Nations, more than 2 billion people live in countries experiencing high water stress. This means they have limited access to freshwater resources due to various factors such as population growth, climate change, and inefficient water management practices.

Thus to address water scarcity challenges, governments and organizations worldwide are investing in desalination infrastructure. The International Desalination Association (IDA) reported that the global installed desalination capacity reached approximately 95 million cubic meters per day (m3/d) in 2020, with continued growth anticipated.

Furthermore, companies are also investing in reducing water scarcity issues. For instance, On 03 March 2022, Egypt's cabinet announced that Saudi Arabia's Abdul Latif Jameel Energy & Environmental Services and Hassan Allam Holding had submitted an offer to build a huge desalination plant capable of generating around 2.9 million cubic meters of water per day by 2030.

Government Initiatives and Policies

Governments worldwide are providing incentives to encourage private sector investments in desalination infrastructure. These incentives include tax breaks, subsidies, grants, and favorable regulations. By reducing financial barriers, governments aim to attract investment and accelerate the development of desalination projects.

For instance, on April 17, 2023, As part of the water technology initiative plan, the Department of Science and Technology (DST), Ministry of Science and Technology authorized Subhash Chandra of GITAM University to conduct research on the desalination of brackish water for industrial uses with a grant of 48.61 lakhs. A pilot-scale desalination plant will be the project's final product, and it will be tested for desalination in association with Zelence Industries Private Limited. This initiative will be helpful to high-water-use industries including textile, paper, and thermal power plants.

High Capital and Operational Costs

The initial investment required to establish a desalination plant is significant. Building a desalination facility involves purchasing land, constructing infrastructure, installing advanced equipment, and implementing the necessary intake and outfall systems. Additionally, there are costs associated with obtaining permits, conducting feasibility studies, and conducting environmental impact assessments. These capital costs can be a deterrent for many countries and regions, particularly those with limited financial resources.

Furthermore, desalination plants often require chemicals for pre-treatment processes, such as antiscalants and biocides, to prevent scaling, fouling, and microbial growth. These chemicals, as well as other consumables like filter cartridges, contribute to the operational costs. The quantity and type of chemicals needed depend on the specific desalination technology and the quality of the source water.

Desalination Market Segmentation Analysis

The global desalination market is segmented based on technology, source, energy source, end-user and region.

Growing Advancements In Reverse Osmosis Technology

Reverse osmosis is expected to show significant growth in the global desalination market covering nearly half in 2022. RO can remove many chemicals and ions, making it suitable for industrial and potable uses. In traditional osmosis, a solvent naturally moves from a region with a low solute concentration to one with a high solute concentration over a membrane. The flow of a pure solvent lowers the system's free energy by bringing the solute concentrations on either side of the membrane into equilibrium and generating osmotic pressure. 

Furthermore, over the years, there have been continuous advancements in reverse osmosis technology, leading to improved efficiency, reliability, and cost-effectiveness. Innovations in membrane materials, module design, and system optimization have contributed to higher water recovery rates, reduced energy consumption, and enhanced overall performance of RO desalination plants.

Global Desalination Market Geographical Share

Middle East And Africa’s Rapid Population Growth, Coupled With Limited Freshwater Resources

In 2022, the Middle East and Africa dominated the desalination market and generated more than 40.1% of global revenue. The region has experienced rapid population growth, coupled with limited freshwater resources, which has driven the demand for desalinated water. Several countries in the region heavily rely on desalination to meet their freshwater needs.

Countries like Saudi Arabia, the United Arab Emirates (UAE), and Kuwait have been at the forefront of the global desalination market. These countries have invested significantly in desalination infrastructure and have some of the largest desalination capacities in the world. The abundance of seawater, favorable climatic conditions, and government support have contributed to the growth of the desalination market in this region.

Global Desalination Market Companies

The major global players include Acciona, S.A, Fluence Corporation Limited, Doosan Heavy Industries & Construction Co Ltd, Genesis Water Technologies, Inc, DuPont, IDE Technologies Ltd, Koch Membrane Systems Inc, Lanxess AG, SUEZ Water Technologies & Solutions SA and Veolia Environnement S.A.

COVID-19 Impact OnDesalination Market Growth

COVID Impact

The pandemic presented operational challenges for existing desalination plants. The implementation of safety protocols, social distancing measures, and reduced workforce capacity affected the efficiency and productivity of plant operations. Maintenance and repair activities also faced delays, leading to potential disruptions in plant performance. 

Furthermore, the COVID-19 crisis highlighted the importance of water security and the need for reliable water sources. Governments and water utilities recognized the value of desalination as a resilient and drought-resistant water supply option. This increased awareness could drive future investments in desalination projects to enhance water resilience.

Russia-Ukraine War Impact 

The Russia-Ukraine conflict had not directly impacted the global desalination market. However, it is important to note that geopolitical conflicts can have indirect and broader implications for various sectors, including water resources and infrastructure.

Geopolitical tensions and conflicts can create an uncertain business and investment environment. This can affect the willingness of investors and lenders to provide funding for large-scale infrastructure projects, including desalination plants. Political instability and economic sanctions can limit the availability of capital and hinder the development of desalination projects.

Key Developments

• On 03 March 2022, Egypt's cabinet announced that Saudi Arabia's Abdul Latif Jameel Energy & Environmental Services and Hassan Allam Holding had submitted an offer to build a huge desalination plant capable of generating around 2.9 million cubic meters of water per day by 2030.
• DuPont launched a new biofouling prevention solution for reverse osmosis installations on March 30, 2021, to decrease operational expenses while increasing plant uptime and dependability. DuPont intends to demonstrate innovative leadership and dedication to solving client water concerns with this new patent-pending solution.
• On 03 December 2020, To design a decentralized ultrafiltration treatment plant with a minimal liquid discharge solution that achieves an overall water reclamation of about 80% in Badr City, Cairo, DuPont partnered with Integrated Environmental Technology and Oil Services Company S.A.E (IETOS), an Egypt-based water and wastewater treatment engineering company.

Why Purchase the Report?

• To visualize the global desalination market segmentation based on technology, source, energy source, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of desalination market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global desalination market report would provide approximately 69 tables, 68 figures and 219 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies