Desalination Technologies Market Size, Share & Industry Analysis, By Technology Type (Multi Stage Flash Distillation (MSF), Multi-Effect Distillation (MED), Reverse Osmosis (RO), Electrodialysis (ED), Nanofiltration, and Others), By Source (Sea Water, Brackish Water, River Water, and Others), By End-User (Municipal, Industrial, and Power Generation), and Regional Forecast, 2024-2032

The global desalination technologies market size was valued at USD 23.77 billion in 2023 and is projected to be worth USD 25.68 billion in 2024 and reach USD 49.80 billion by 2032, exhibiting a CAGR of 8.63% during the forecast period.

Desalination technology is the process of removing salt and impurities from water sources to produce fresh water suitable for consumption and irrigation. It typically involves methods such as reverse osmosis, distillation, or electrodialysis and plays a crucial role in addressing water scarcity in arid regions and coastal areas globally. For major countries, the driving factors for the market are the lack of surface and groundwater resources, coupled with sufficient natural and financial resources to engage in energy-intensive and costly desalination projects. Globally, continued growth has been observed in this market, and more new projects are awarded to develop desalination plants with increased capacity for each. Desalination technologies are growing fast to bridge the gap between the available freshwater and the increasing requirements.

The global impact of COVID-19 on the desalination technologies market was negative, as it hampered consumption in many end-use industries' growth due to supply chain disruption of services and technology and hindrance in activities due to social distancing norms. Furthermore, Saudi Arabia and UAE are among the significant countries that manufacture and deploy desalination technology. Conversely, these countries underwent various regional and national level shutdowns of residential, commercial, and industrial operations to contain the spread of this viral infection, which led to a fall in demand for desalination technologies.

Desalination Technologies Market Trends

Development of Innovative Technologies Along with Government Support Expected to Create Lucrative Opportunities

Desalination, specifically in Gulf countries, is currently done using an energy-intensive evaporation process carried out entirely using fossil fuels. Filtration-based technology, reverse osmosis (R.O.), is considered reliable and less energy-intensive. Still, the electricity used to create the required pressures for this process is substantially generated using fossil fuels. To overcome this, various government initiatives are taken to support the development of advanced technologies for the sustainable and efficient functioning of desalination and providing access to clean water.

The decarburization targets globally have sped up countries’ technological investments, and the Middle East, which traditionally relied on hydrocarbon for its energy needs, made great efforts to adopt more sustainable practices. The movement has been highly collaborative with many governments. For instance, In March 2023, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) signed an advisory agreement to support Egypt in structuring and implementing public-private partnership (PPP) desalination projects. As per the agreement, EBRD and IFC are working with The Sovereign Fund of Egypt for Investment and Development (TSFE) and the Egyptian government, which aims to increase the water supply in the country, specifically from sustainable and unconventional sources.

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Desalination Technologies Market Growth Factors

Hybrid Desalination Offering High-Quality Water to Augment the Desalination Technology Market Growth

Hybrid desalination systems are a cutting-edge approach that offers effective solutions to meet water consumption needs and enhance the sustainability of desalination plants. It combines two or more desalination technologies to achieve the comparative advantages of the technologies.

Some hybrid systems employ combined thermal distillation membrane desalination or both approaches, whereas other innovative technologies involve thermal. In a hybrid MSF/Reverse Osmosis (RO) desalination process, a seawater RO plant system is combined with a new or existing dual-purpose thermal desalination plant, offering several benefits, including extended RO membrane life.

Due to good operational flexibility and water-matching ability with lower energy consumption, hybrid configurations have attracted growing attention in the following years. Various hybrid systems have been developed, such as thermal distillation/membrane desalination hybrid systems and desalination/electricity co-generation systems. For instance, the implementation of RO-MSF and RO-multieffect distillation (RO-MED) in desalination and power plants, such as Ras Al-Khair in Saudi Arabia, Fujairah I and II in UAE, and Az-Zour in Kuwait has displayed the feasibility of hybrid systems on a large scale. Moreover, the regions where these desalination plants are situated have recorded an increase in energy conservation and a reduction in the production costs incurred throughout the desalination processes.

Increasing Water Requirements and Freshwater Scarcity are Driving the Demand for Water Desalination

Global demand for water continues to increase with population growth and economic development, while freshwater sources are becoming more scarce due to increasing demand for natural resources and the impacts of climate change, specifically in semi-arid and coastal/island regions. According to UN OCHA (United Nations Office for the Coordination of Humanitarian Affairs), global water withdrawals exceed 4,000 billion m3 per year, and over 25% of the world's population encounters freshwater scarcity.

Increasing demand for water resources owing to population growth and evolving consumption patterns has increased water scarcity globally. The global population is expected to reach over 9.3 billion by 2050, which is projected to increase the urban areas and the need for health and sanitation, energy, food, and other goods and services that require water for their production and delivery. As per the UN World Water Development Report 2021, desalination is presented as one of the technological options to provide an additional source of fresh water for irrigation, especially in water-stressed coastal areas, with cost-effective options in tightly controlled environments. According to the International Desalination Association's (IDA) recent report, as of February 2020, almost 21,000 desalination plants are either constructed or contracted to be constructed. The global installed and cumulative freshwater production stood at 97.2 million cubic meters per day (m3/d) and 114.9 million m3/d (114.9 billion litres per day), respectively.

RESTRAINING FACTORS

High Investment Costs and Environmental Impact to Hamper Market Growth

Desalination technologies consume a lot of energy to process fresh water. Energy costs largely dominate the price of a desalination plant. Most fossil fuel-based sources fulfill the energy requirement, which amplifies climate change and increases GHG emissions. Moreover, the site-specific aspects also significantly impact final costs, including feed-water transportation, freshwater delivery to end-users, brine disposal, and plant size. Therefore, the economic feasibility of desalination depends strongly on local availability and energy costs, which eventually impact the operation and maintenance of desalination plants. The desalination water treatment process, on average, consumes about 75 TWh annually, which is over 0.4 % of the total global energy, and it produces about 76 Mt-CO2 annually, which is expected to reach 218 Mt CO2 annually in 2040 owing to an increased number of installed water desalination plants.

Desalination plants dump brine water heavily loaded with salt particles, discharge it at high temperatures, and contain traces of other harmful chemicals and heavy metals. These discharge waste products reduce the oxygen content of water, inhibit the growth of aquatic organisms, and decrease biodiversity. According to the estimate of the State Water Resources Control Board, on an annual basis, about 70 bn marine life and fish larvae are killed by California's desalination coastal power plants.

Desalination Technologies Market Segmentation Analysis

By Technology Analysis

Reverse Osmosis Dominates The Market Since it is the Most Advanced And Highly Efficient Technology

Based on technology type, the market is segmented into multi-stage flash distillation, multi-effect distillation, reverse osmosis, electrodialysis (E.D.), nanofiltration, and others.

Reverse osmosis holds a dominant share in the market since it is one of the most advanced desalination and highly efficient technologies. It generates four-and-a-half times fewer greenhouse gas emissions than all other technologies. Reverse osmosis membrane has the advantage of better chemical and biological stability, high desalination rate, low power consumption, low working pressure, and long service life, and the desalination rate of a single membrane can reach 99.6%.

Multi-Stage Flash Distillation (MSHE) was a global leader in seawater desalination before the R.O. technology came to the desalination technologies market. It has a low operating cost when excess heat is utilized for the distillation process and has a high GOR (Gain Output Ratio). In some low-income countries, multi-stage flash distillation is the most prevalent method due to the high expense of pretreatment of saltwater prior to the reverse osmosis process.

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By Source Analysis

Sea Water Holds a Dominant Share Due to Easy Availability across Coastal Areas

Based on source, the market is segmented into sea water, brackish water, river water, and others.

Sea water segment holds a dominant desalination technologies market share. It is almost an inexhaustible source of water for desalination to fulfill fresh water requirements. Seawater desalination systems do not rely on anything other than the ocean or seawater, whereas other water sources heavily rely on uncontrollable factors, such as rain or snowfall. Even in times of droughts, there is sufficient access to fresh water supply through seawater desalination, which makes it a widely preferred water source for desalination.

Brackish water holds the second major share in the global market after seawater. Many studies show that freshwater can be produced from brackish water with high productivity, reduced specific energy consumption, and reduced brine flow rate into the environment compared to seawater desalination. But brackish groundwater is extracted from suitable locations, often below freshwater aquifers, and requires more energy to draw the water than it takes to pump seawater. Brackish water has less feed water TDS, and the disposition of its produced concentrate is difficult, giving seawater desalination an advantage in energy demand.

By End-User Analysis

Municipalities Hold a Dominant Share Due to the Extension of Megacities Globally

Based on end-user, the market is segmented into municipal, industrial, and power generation.

Municipal hold a dominant share of the market, as municipal systems are the suppliers of usable water to most people, and governments maintain the safety level of water. It is also driven by the nonstop extension of megacities globally and a critical increment within the defilement of surface water and groundwater supplies that augment the higher demand for secure drinking water.

The industrial segment is the second most dominant segment after municipal, which is mainly attributable to increasing water quality requirements across various industrial sectors, such as mining, manufacturing, and chemicals for performing various crucial functions, including processing steam, cooling, and others. Advancements in desalination technologies, such as energy recovery devices and improved membrane materials, are making desalination more energy-efficient and cost-effective.

REGIONAL INSIGHTS

The market has been studied geographically across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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Globally, the Middle East & Africa dominates the market and account for the majority of installed desalination capacity. The region has arid climate and the rainfall in the region is at scarcity, resulting in high evaporation rates and water scarcity. Moreover, increasing population along with intense socio economic developments has led to disparity between supply and demand of fresh drinking water. Desalination is the technology majorly used in the region to fulfill the water demands in the region. The majority of GCC countries are dependent on desalination technologies for their water needs. In December 2023, GS Inima and its partner Abu Dhabi National Energy Company PJSC (TAQA), signed a contract for a Water Purchase Agreement (WPA) for the Shuweihat 4 Reverse Osmosis Independent Water Project (IWP) (S4 R.O.) in the Emirate of Abu Dhabi. The project will desalinate seawater using low-carbon R.O. technology and supply up to 70 million gallons of drinking water per day, which is equivalent to 318,225 cubic meters per day.

Asia Pacific is the second leading region in the desalination technologies market. Numerous projects started in the past decade and have started operations in recent years. Moreover, many new projects are under development and are to be launched with advanced technology for implementation. For instance, In February 2024, the Tseung Kwan O desalination plant started operation, which is the first of its kind desalination plant to use R.O. technology in Hong Kong.

North American desalination technologies market growth is due to the increasing adoption of advanced desalination technologies, paired with the robust presence of several favorable initiatives that have initiated desalination projects and provided incentives to encourage higher investments in the desalination infrastructure. In order to ensure sustainable social and economic development of expanding metropolitan centers, desalination assists in meeting their water needs.

In Europe, a small fraction of freshwater is obtained through seawater desalination. Still, desalination is also one of the rapidly growing sectors of the Blue Economy, with over 2300 seawater desalination units present in Europe. It generates over 9.2 million cubic meters of desalinated water every day, which is 10% of total global capacity. In this region, about 1,200 plants provide a capacity of 2.37 billion m3, which is over 82% of the total E.U. desalination capacity.

In Latin America, Peru, Mexico, and Chile lead the desalination market in the region, predominantly, which is used for agriculture, industry, and municipal water.

List of Key Companies in Desalination Technologies Market

Key Market Players Are Catering to Customized Demands of the Customers

The global desalination technologies market is highly fragmented, with large and some medium-scale regional players delivering a wide range of products at local and country levels across the value chain. Numerous companies are actively operating across different countries to cater to the specific demands of the customers.

GE is expected to account for a significant market share owing to its extensive product portfolio, strong brand value, and continuous technology development. Furthermore, the company is also focused on enhancing its sales, distribution, and marketing channels through partnerships with different local associates to fortify its product reach globally.

List of Key Companies Profiled:

• Ampac USA (U.S.)


• General Electric (U.S.)


• DuPont (U.S.)


• BWT Holding GmbH (Austria)


• Aquatech (U.S.)


• Genesis Water Technologies (U.S.)


• Lenntech (Netherlands)


• IDE Technologies (Israel)


• Acciona (Spain)


• Biwater Holdings Limited (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• May 2024- The Balearic Water and Environmental Quality Agency signed ACCIONA and Aqualia consortium for the operation, maintenance and conservation of the three desalination plants in Ibiza for the next four years. The contract is worth USD 15.27 million, and includes the management of the Santa Eulària and San Antonio desalination plants, as well as the management of the Ibiza Town desalination plant and the system.


• January 2023- IDE Technologies, a world leader in water treatment solutions, announced the opening of a new regional office in Dubai. The company is trying to grow its presence in MENA and deliver water treatment solutions to local industries and municipalities. The change supports IDE’s mission to provide seawater desalination plants, endwise water treatment solutions, reclamation, and purification to needy regions.


• June 2022- IDE Technologies, a world leader in water treatment solutions, announced that it will project, engineer, and supply a seawater reverse osmosis desalination plant in Brazil, carrying a new, sustainable water solution to the area. The Fortaleza Desalination Plant will be Brazil's latest IDE-engineered and major desalination plant.


• February 2024 - The Water Corporation of Western Australia has nominated the ACCIONA-led consortium to project, build, operate, and uphold the future Alkimos Seawater Desalination Plant (ASDP) in Perth for ten years. The new plant will have a Stage 1 capacity of 150,000 m³/day and an additional capacity of 150,000 m³ /day under Stage 2.


• October 2020- ACCIONA launched and put into service the LEAD ("Leading Experimental Accelerator in Desalination"). It features digital innovation strategies such as advanced data analysis, IoT, machine learning, and decision-making support systems. This new technology is deployed at the San Pedro del Pinatar II desalination plant in Murcia, Spain.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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