Water Desalination Equipment Market Analysis By Technology (RO, MSF, MED), By Application (Municipal, Industrial), By Source (Sea, Brackish, River), By Region, And Segment Forecasts, 2014 - 2025

Industry Insights

The global water desalination equipment market size was estimated at USD 11.58 billion in 2016 and is anticipated to grow at a CAGR of 9.1% over the next eight years. Increasing water concerns and usages of aqua resources by rising population is expected to drive the market over the forecast period.

The process to separate salt and other minerals from the sources including sea, brackish, and river are carried out by desalination equipment. Its primary components compromise of valves, actuated valves, energy recovery unit, pumps, connecting hoses, filtration unit, and separators. However, the principal raw material used to produce this equipment is filtration system and pumping units which are available with original equipment manufacturers such as Kubota, ITT, KSB, Grundfos, Sulzer, and so on.

U.S. water desalination equipment market by application, 2014 - 2025 (USD Million)

In the U.S. state of California, the State Water Resources Control Board have embraced revision in its quality control plan for sea medium of California. The amendment says the use of the sea as an alternate source of traditional fresh aqua sources. The revision policy permits saline treatment facilities statewide with the regional board as the regulatory board to supervise implementation, monitoring, and reporting schedule.

Portion of the policy which implements the federal Clean Water Act has been already approved by the U.S. Environmental Protection Agency (EPA). The regulation based amendments will provide the required support for the development of desalination industry in the country. 

The equipment is used as an active source to generate water for the growing population. It is also needed in industrial units for various functions. The major advantage of this apparatus is that it would prevent the exploitation current aqua supplies such as lakes, ponds, ground water, and so on. As the majority of the product are used to treat sea saline source. In the U.S. application based market of the product is likely to be dominated by municipal sector demand during the predicted timeline.

Companies present in the industry are focusing on the development of new technology to enhance efficiency and reduce energy dependency. Furthermore, many vendors are moving towards forwarding integration as major producers are turning their focus towards supply and distribution.  

Furthermore, the increasing demand of the aqua along with the focus to find a viable source to produce aqua is driving the development of new technologies in the market. For instance, a team at Massachusetts Institute of Technology (MIT) has developed an innovative method to treat saline sources. The technology uses electrically deployed shockwaves to separate salt and fresh source.

Technology Insights

Reverse osmosis (RO) segment accounted for over 58% of the market in 2016. The segment is expected to show the similar growth trend over the forecast period. The reverse osmosis technology is gaining popularity due to its enhanced efficiency and capability to consume less energy. It can treat sea, brackish, and river water.

Reverse osmosis segment market is followed by multi-stage filtration (MSF). The segment is expected to grow at a CAGR of 9.1% from 2017 to 2025. MSF is a thermal based process of to treat saline source. The process is primarily concentrated in the Middle East region as it uses a tremendous amount of energy to carry out the salt removal technique. The cheap energy rates make the process feasible in the Gulf countries due to low power rates. However, this technology is highly expensive for the developing economies.

Similarly, multi-effect distillation (MED) segment is also a thermal based process. The MED segment is expected to grow at a CAGR of 8.9% during the predicted timeline. The major advantage of MED is that it requires less energy compared to other thermal processes. Also, it can operate continuously for 24 hours with minimal supervision required. The segment is expected to grow at steady pace in the Middle East region owing to the demand for thermal based processes.

Other technologies include microfiltration, nanofiltration, and so on. The demand for other technologies is expected to grow at sturdy pace, owing to the demand in the developing economies. The other membrane based technologies require less investment and need low energy to process saline sources. Thus, the demand for other technologies based equipment is likely to be driven by evolving economies such as India, Malaysia, and so on.

Application Insights

The municipal application was the primary application sector, which accounted for over 51% of the overall demand in 2015. The function for a municipal application is to provide fresh medium. The municipal application is expected to show the similar growth in the forecast period. The segment is projected to grow at an estimated CAGR of 9.1% from 2017 to 2025.

Furthermore, development of smart cities around the world is likely to accelerate the market growth. The use of sensors to track aqua usage and avoid wastage will help to achieve efficiency in the municipal segment. The growing scarcity of aqua and growing population are likely to act as a key catalyst for the growth of municipal-based desalination equipment.

The demand for equipment in the industrial sector is also growing significantly. Industrial application is expected to grow at robust pace in the projected timeline. The industrial development in the developing economies of South America and Asia-Pacific has accelerated the growth in industrial applications of saline treated aqua.

Potable source is required in industries such as construction, paper and pulp, food and beverages, oil and gas, and so on. It is used to perform the function of coolant in the power generation plants, curing solution in construction, and so on. The industrial application is expected to grow at a CAGR of 9.3% from 2017 to 2025.

Source Insights

Sea water segment is likely to remain the primary source for the process of saline source treatment across the world. The segment accounts for over 67% of the total sources used for desalination. The segment is anticipated to grow at a CAGR of 9.2% over the forecast period. The water state board of California state in the U.S. has already accepted sea medium as the viable alternative for the fresh sources. The legal support from the government bodies will help the segment to grow in the coming years.

Brackish water segment is expected to witness steady demand during the forecast period. The demand is supposed to increase at a CAGR of 8.8% in the projected timeline. The easy treatment of brackish source, when compared to sea, will drive the segment towards growth. The brackish consists of fewer parts per million (ppm) compared to sea source.

River water desalination equipment is likely to grow at a CAGR of 9.0% during the forecast period. The changing climatic conditions have decreased the aqua levels in the rivers around the world. With focus to treat sea saline aqua and conserve fresh supplies such as rivers, lakes, and ponds, the segment is expected to observe sturdy demand from the North America and Asia-Pacific regions.

Regional Insights

The Middle East and Africa is a leading region, followed by Asia-Pacific for the desalination equipment. The demand in the region is high owing to the fresh aqua demand in the area. The region accounted for over 41% of the global demand in 2016.

Global water desalination equipment market revenue by region, 2016, (%)

 Saudi Arabia is one of the largest producers of saline treated aqua, followed by the U.S. and UAE. Spain, China, Australia, and India are also a key country for the growth of industry in the coming years. Asia Pacific is a promising region owing to the presences of emerging economies such as India and China.

However, the robust growth is expected in the South America region. Although, region has rich sources of fresh aqua, lack of efficient distribution channels results in scarcity. To improve distribution network and provide efficient mean to provide facility, governments in the region are engaging in treatment process. Development of treatment plant in the region will provide required demand for the growth of equipment in the projected timeline.

Rising population coupled with robust growth in urbanization is likely to act as a key driver for the increase in consumption of aqua. The increasing aqua use will generate the demand for fresh sources which in turn will create the demand for plant and equipment.

Competitive Insights

The industry is fragmented, with no outright leader present. Key players are focusing on developing new technologies to reduce energy consumption and increase product efficiency. The key players, as well as small-scale regional players, are investing in research & development activities and trying to develop new and better product for the end-user industries to gain market share.

Furthermore, some of the countries such as China is promoting its local players to engage in desalination equipment manufacturing. As the government of China plans to significantly increase its aqua capacity, it also plans to procure nearly 60% of the required equipment from local manufacturers. Initiatives as such would provide the opportunity for the vendors in the market.

Key players include Genesis Water Technologies, Doosan Heavy Industries and Construction, GE Corporation, Koch Membrane Systems (KMS), IDE Technologies, Degremont SAS, Biwater, Hyflux Ltd., Acciona, S.A., and others.

Report Scope

Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global water desalination equipment market on the basis technology, application, source and region:

• Technology Outlook (Revenue, USD Million, 2014 - 2025)

  • Reverse osmosis (RO)

  • Multi-stage filtration (MSF)

  • Multi-effect distillation (MED)

  • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Municipal

  • Industrial

  • Others

• Source Outlook (Revenue, USD Million, 2014 - 2025)

  • Sea water

  • Brackish water

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S

  • Europe

    • Spain

  • Asia Pacific

    • China

    • India

    • Australia

  • Central & South America

    • Chile

  • Middle East and Africa

    • Saudi Arabia

    • UAE