Produced Water Treatment Market Size, Share & Trends Analysis Report By Treatment (Physical, Chemical, Biological), By Application (Onshore, Offshore), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global produced water treatment market size was estimated at USD 7,676.3 million in 2022 and is anticipated to grow at a compounded annual growth rate (CAGR) of 7.5% from 2023 to 2030. The global water treatment market is expanding as a result of the rapid urbanization and population growth, rising demand for water supplies, and efforts to combat diseases brought on by contaminated water. Also, the use of a number of cutting-edge technologies, including oxidation, ceramic micro- and ultrafiltration, media filtration, adsorption, and others, is anticipated to boost market expansion. Produced water is produced as a byproduct of oil and gas exploration and production operations. In the oil and gas industry, produced water is treated using various primary, secondary, and tertiary separation procedures to remove oil droplets, sediments, mud particles, heavy metal particles, salts, hydrocarbons, and other organic compounds.

Rising use of freshwater, coupled with the prolonged discharge of oil contained treated water is expected to pollute the existing resources and lead to scarcity issues in the future. Hence, governments of developed countries including Germany and the U.S. have regulated stringent environmental policies and practices by imposing minimized or zero discharge limits of oil concentrations in disposed streams.

Furthermore, increased oil & gas drilling activities around the world have resulted in massive amounts of produced water. Various chemicals used in drilling activities also interact with water, making it more hazardous to the environment. As a result, it is critical to clean the produced water. For instance, in Guyana, ExxonMobil is embarking on a drilling program and aggressive exploration that is expected to see over a dozen wells drilled this year. These factors are expected to drive the demand for offshore & onshore drilling activities, thereby driving the demand for the oil & gas production water treatment systems market.

The growing global population poses a huge challenge to the availability of safe drinking water. As a result of population growth, continuous industrialization and increased oil and petrol operations are predicted to raise global need for generated water treatment. For example, the National Framework for Water Resources projects that by 2050, England would require an additional 3,435 million liters of water per day to meet future difficulties. This is expected to increase demand for treated generated water.

Regulatory support for increasing E&P spending on coal bed methane (CBM) and gas hydrates in Durgapur and Andaman and Nicobar in India, respectively is expected to open up new avenues over the next few years. Furthermore, the emergence of the U.S. and Canada as production destinations for alternative sources including tight oil and shale gas as a result of increasing spending on hydraulic fracturing is projected to have a significant impact on the market growth.

Application Insights

On-shore application segment accounted for 71.5% of the global revenue share in 2022. Produced water is a huge waste stream that occurs during onshore oil and gas exploration and production when water is drawn up from the reservoir along with the oil/gas. They can include physical, chemical, and biological approaches, as well as a combination of these, for onshore activities, although biological treatment technologies are frequently unsuitable for offshore operations because to their huge environmental footprint.

Onshore produced water can be processed and used for civil purposes, disposed of in the reservoir in accordance with rules and permissions, or reinjected to aid in further oil and gas recovery. For instance, Pall Corporation, provides Ultipleat High Flow filters to facilitate onshore generated water treatment that complies with environmental requirements and lowers contamination risks.

Offshore application segment accounted for 28.5% of the global revenue share in 2022. In order to recover oil and gas and clean the “produced water” before releasing it into the ocean, offshore oil and gas production frequently incorporates produced water treatment. For instance, LiqTech SiC membrane technology guarantees secure overboard discharge.

Offshore produced water can be re-injected into reservoirs, discharged to the sea after appropriate treatment, or carried onshore for appropriate treatment and disposal. Furthermore, because to space limits in offshore extraction facilities, compact physical and chemical treatment technologies such as hydrocyclones, coagulation, photo-electrocatalytic processes, and flocculation are favored.

Treatment Insights

Physical treatment segment accounted for 43.3% of the global revenue share in 2022. Physical treatment methods include improved floatation, adsorption, and cyclones. Membrane filtration technologies, nanofiltration, reverse osmosis, electrodialysis (ED) and electrodialysis reversal (EDR), and adsorption procedures are all commonly utilized for wastewater treatment, particularly generated water. As a result, the market is predicted to rise due to the increasing acceptance of the aforementioned physical treatments.

Chemical treatment segment accounted for 29.1% of the global revenue share in 2022. Coagulation or flocculation paired with flotation and filtration, precipitation-flocculation, electroflotation, electrokinetic coagulation, and typical oxidation procedures using several oxidants to break down different contaminants are examples of chemical treatment methods. Additionally, many aspects such as chemical dosage, oxidant type, wastewater constituents, and contact time influence the oxidation rate. As a result, the aforementioned factors are projected to boost market demand throughout the forecast period.

The biological treatment segment is likely to grow at a CAGR of 8.0% over the forecast period. Biological treatment is an efficient and cost-effective approach for treating oil effluent, and it employs both anaerobic and aerobic treatments. As a result, the rising oil and gas industry, together with the implementation of biological wastewater treatment methods, is likely to drive market demand.

Regional Insights

North America dominated the market in 2022, accounting for 42.8% share of the total revenue. Strong presence of crude oil reserves in the U.S. and Canada is expected to increase the usage of water management services.

Asia Pacific is projected to remain the fastest-growing regional market, expanding at a CAGR of 8.7% over the forecast period. Implementation of First Shale Gas Policy and Open Acreage Licensing Policy (OALP) by the governments of China and India, respectively will be a key driver over the next few years.

Russia is the largest oil producer in Europe and has the eighth largest oil reserves across the globe. In addition, other major oil reserves of the region are found in countries including Norway and the U.K. Presence of large oil reserves in the region is expected to drive the market over the forecast period. For instance, in 2020, ECOLOG, a leading global provider of integrated environmental services, technologies, and solutions, partnered with Siemens Energy to provide a service-oriented efficient disposal solution for the wastewater industry. This partnership will make it possible for industrial wastewater treatment to be done locally.

Key Companies & Market Share Insights

The manufacturers adopt several strategies, including acquisitions geographical expansions, new joint ventures, product developments, and mergers to enhance market penetration and cater to the changing technological requirements from various applications such as onshore, offshore.

For instance, under the financing opportunity announcement (FOA) DE-FOA-0002004, Low Cost, Efficient Treatment Technologies for Produced Water, the Department of Energy's (DOE) Office of Fossil Energy announced up to USD 5 million in government funding for cost-shared research and development projects. Some prominent players in the global produced water treatment market include:

• Weatherford International

• Halliburton Company

• General Electric Company (GE)

• Enviro-Tech Systems

• Baker Hughes

• Mineral Technologies, Inc.

• Siemens AG

• Exterran Corporation

• Ovivo

• Veolia Environnement S.A.

• Schlumberger Limited

Produced Water Treatment Market Report Scope

Global Produced Water Treatment Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global produced water treatment market report on the basis of treatment, application, and region:

• Treatment Outlook (Revenue, USD Million; 2018 - 2030)

  • Physical Treatment

    • Filtration

    • Flotation

    • Other

  • Chemical Treatment

    • Precipitation

    • Oxidation

    • Other

  • Biological Treatment

• Application Outlook (Revenue, USD Million; 2018 - 2030)

  • Onshore

  • Offshore

• Regional Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE