Water Desalination Equipment Market Size, Share & Trends Analysis Report By Technology (Reverse Osmosis (RO), Multi-Stage Flash (MSF) Distillation, Multi-Effect Distillation (MED)), By Product (Membrane Systems, Pumps, Evaporators), By Application (Municipal, Industrial), By Region (North America, Asia-Pacific, Europe, Latin America, The Middle East and Africa) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

Water desalination equipment encompasses the technology and machinery specifically developed to eliminate salt and other contaminants from seawater or brackish water. It is appropriate for various uses, such as drinking, industrial operations, and agriculture. Desalination is essential in areas experiencing water scarcity, particularly in dry regions where traditional freshwater sources are restricted.

Growing water scarcity and rapid depletion of freshwater resources are the primary factors driving the global water desalination equipment market share. Freshwater reserves are scarce in many arid areas due to the absence of surface water sources such as rivers and lakes. Furthermore, as the world's population grows, so does the water demand, which propels the market forward.

Furthermore, deteriorating environmental conditions, such as shifting weather patterns, deforestation, and increased pollution, have resulted in water scarcity and drought-like conditions worldwide. These factors are expected to drive the growth of the global water desalination equipment market.

Market Dynamics

Global Water Desalination Equipment Market Drivers:

Water Scarcity and Increasing Demand

Global water scarcity, caused by population growth, urbanization, and climate change, has increased demand for alternative water sources, resulting in the widespread use of water desalination technology. The Middle East and North Africa (MENA) region is a prime example of a region dealing with severe water scarcity, prompting the widespread adoption of water desalination technologies. Countries such as Saudi Arabia, the United Arab Emirates (UAE), and Qatar rely heavily on desalination to meet their growing water demands. According to a World Bank report, the MENA region has the world's lowest freshwater availability, with an annual renewable water resource of approximately 1,200 cubic meters per person. This is far below the international water poverty line of 1,700 cubic meters per person per year. The region's population growth and limited freshwater sources drive the demand for alternative water supply solutions such as desalination.

Furthermore, the United Nations predicts global water demand will rise by 20-30% by 2050, with water scarcity affecting approximately 5 billion people. In response to these projections, countries experiencing acute water scarcity are investing heavily in desalination projects to ensure a reliable water supply for their people. Desalination, mainly through advanced technologies such as reverse osmosis, is becoming a strategic option for governments in these regions to ensure water security and economic development. As the global population grows and water stress becomes more common, the water desalination equipment market trend is expected to continue and spread to other regions facing similar challenges.

Global Water Desalination Equipment Market Restraints:

Environmental Impact of Brine Disposal

The environmental impact of brine disposal is a significant concern, particularly in coastal areas where desalination plants regularly discharge concentrated brine back into the sea. Brine is the byproduct of seawater desalination. The water is extremely salty, with a TDS of over 35,000 mg/l. Brine disposal can harm the marine environment and biodiversity. For example, with its high salinity levels, the Red Sea has faced significant environmental challenges due to brine disposal from desalination plants along its coastline. According to the International Desalination Association (IDA), desalination plants worldwide produce approximately 50 billion cubic meters of brine annually. Desalination plants will have 141.5 million cubic meters of brine daily in 2023, up 50% from previous estimates. Managing this brine, frequently twice as salty as seawater, presents challenges. Improper brine disposal can harm marine ecosystems, fish, and other marine species, causing biodiversity loss.

Brine is most commonly disposed of in the Arabian Gulf by returning it to the sea. Most desalination plants are located closer to the sea, making it easier to dispose of waste effluent directly into the ocean via pipes. However, excess salt in brine reduces the amount of dissolved oxygen in the water, potentially suffocating seafloor animals.

Global Water Desalination Equipment Market Opportunity:

Renewable Energy Integration

Integrating renewable energy sources, such as solar and wind power, into desalination plants presents a significant opportunity to address the process's high energy consumption. Using clean and sustainable energy, desalination projects can become more environmentally friendly and economically viable. A desalination facility is proposed for March 2023 that will use renewable energy sources such as solar, wind, and wave. For example, Jordan's Aqaba-Amman Water Desalination and Conveyance Project uses renewable energy to desalinate water from the Red Sea. The project will provide 300 million cubic meters of water annually to the capital, Amman, and its surrounding areas.

The International Renewable Energy Agency (IRENA) estimates that the global renewable energy capacity for desalination projects will be nearly 510 gigawatts (GW) by 2023. This represents a 50% increase over 2022 and the fastest growth rate in the past 20 years. Solar PV accounts for three-quarters of all new capacity additions globally. According to the IRENA report, integrating renewables can reduce the carbon footprint of desalination plants by up to 77%, contributing to global efforts to combat climate change. Reducing greenhouse gas emissions is accomplished by replacing traditional energy sources, such as fossil fuels, with clean and sustainable alternatives. As renewable energy technologies advance and costs fall, incorporating solar, wind, and other renewable sources into desalination projects becomes more economically feasible.

Regional Analysis

The Middle East and Africa Dominate the Global Market

The global water desalination equipment market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America.

Middle East and Africa are the most significant global water desalination equipment market shareholders, estimated to grow at a CAGR of 9.0% over the forecast period. The Middle East and North Africa are the world's driest regions. This region is home to 15 world's top 20 water-scarce countries. Approximately 70% of global water desalination capacity is concentrated in extra-large and large water desalination plants worldwide, with the Middle East and Africa alone accounting for more than 50%. The region's water scarcity is expected to worsen due to population growth, unsustainable water management, rapid economic growth, and ongoing conflicts. Thus, the UAE and its neighbors have come to rely on desalination, with the MENA accounting for approximately 48% of the 95.

Additionally, the Middle East construction sector is expected to expand significantly with strong government support for infrastructure development, increased investments to improve logistical connections, and reconstruction efforts in conflict-affected areas. The Middle East (MENA) region will award USD101 billion in construction projects in 2023. 67% of this value, or USD44 billion, went to Saudi Arabia, while the UAE received USD23 billion. Both markets have increased since the same period in 2022. This will boost consumption and benefit the water desalination equipment market over the forecast period.

Asia-Pacific is anticipated to exhibit a CAGR of 9.3% over the forecast period. Asia-Pacific is expected to experience the fastest growth in the water desalination equipment market during the forecast period, owing to rising demand for clean water among the region's ever-increasing population. Urbanization is a megatrend in the region, driven by increasing GDP per capita and infrastructure development, resulting in a rapid shift from rural to urban areas. Asia-Pacific is the world's fastest-urbanizing region, with an average annual urbanization rate of 3%. As of September 2023, Asia-Pacific (APAC) cities were home to 2.2 billion people, accounting for half of the world's urban population. This figure is expected to grow by 50% by 2050, adding 1.2 billion people to the region's urban population. This abrupt shift in growth patterns has pushed cities into unsustainable water consumption models, resulting in increased demand for clean water supplies. 

Therefore, to meet these demands, regional government organizations are now focusing on constructing more water treatment facilities to provide people with safe drinking water. In 2021, China's state planning agency announced a five-year investment plan to build new desalination plants and increase capacity to 2.9 million tonnes per day by 2025. Furthermore, the region has one of the largest agricultural sectors, meeting the needs of more than two-thirds of the world's population. And, as demand continues to rise, farmers in the region are focusing on increasing yield. However, using fresh water for irrigation depletes water resources, leading to water scarcity in rural areas. As a result, regional government organizations are deploying water treatment facilities to help farmers meet their irrigation water demands using saline water resources.

North America has a significant share of the water desalination market due to growing concern about rising water pollution levels, water scarcity, changing climatic conditions, and a growing population. For example, The Canadian Drought Monitor described a drought in the Great Plains occurring once every fifty years in June 2023. The drought began in the spring of 2021, following an unusually dry fall and winter, threatening extreme drought in southern Manitoba and Saskatchewan. To address these issues, the regional government focuses on implementing various water purification and desalination technologies in the industrial and municipal sectors, allowing individuals to access recycled water for drinking and irrigation purposes.

Furthermore, various governmental and environmental organizations, such as the Environmental Protection Agency (EPA), impose stringent regulations regarding the recycling and discharge of effluent from the industry fuel market growth.

Europe holds a significant market share. More than half of all European desalination equipment sales come from Spain. Regarding desalination capacity, the country ranks fifth worldwide, accounting for approximately 6% of global capacity. Currently, the government has 216 small capacity plants (100-500 m³/day), 450 medium capacity plants (500-10,000 m³/day), and 99 large capacity plants (10,000-250,000 m³/day).

Latin America is one of the largest emerging markets, with many desalination projects set to begin in the next five years. Thirty desalination projects are underway in the region, with a total investment of approximately USD 25 billion expected by 2025. Chile and Mexico are the key countries that contribute significantly to the regional market.

Segmental Analysis

The global water desalination equipment market is segmented based on technology, product, application, and region.

The market is further segmented by technology into Reverse Osmosis (RO), Multi-Stage Flash (MSF) Distillation, and Multi-Effect Distillation (MED).

Reverse Osmosis (RO) generates the most revenue in the market.

Reverse Osmosis (RO)

Reverse Osmosis (RO) is a popular desalination technology that works on the principle of selectively permeable membranes. In RO, seawater is pressurized and forced through semi-permeable membranes, allowing water molecules to pass while rejecting salts and impurities. This process produces fresh water on one side of the membrane while leaving concentrated brine on the other. RO is known for its efficiency, lower energy consumption than other methods, and versatility, making it suitable for many feedwater types, including seawater and brackish water.

Multi-Stage Flash (MSF) Distillation

Multi-Stage Flash (MSF) Distillation is a thermal desalination process in which seawater is heated at low pressure until it evaporates or flashes into steam. The steam is then condensed into fresh water. The process occurs in several stages or chambers, each operating at progressively lower pressures. MSF is distinguished by its ability to handle high salinity feedwaters and its historical importance as one of the first desalination methods. Conversely, MSF is an energy-intensive process that requires a significant amount of heat frequently derived from fossil fuels.

Based on product, the market is sub-segmented into Membrane Systems, Pumps, and Evaporators.

Membrane Systems holds the highest market share.

Membrane Systems

Membrane systems are essential to desalination technology, particularly reverse osmosis (RO) processes. These systems typically include semi-permeable membranes that selectively allow water molecules to pass through while preventing salts and impurities. Membranes are essential in separating freshwater from saline water, making them an integral component of RO desalination plants. Advances in membrane technology help desalination systems run more efficiently, recover more water, and last longer. Polyamide, cellulose acetate, and thin-film composite membranes are some of the most notable membrane materials.

Pumps

Pumps are required for pressurizing feedwater in desalination processes, particularly reverse osmosis. RO uses pressurized seawater to overcome osmotic pressure, allowing water to pass through the membrane. Pumps generate the necessary pressure, and their efficiency directly impacts the desalination plant's overall energy consumption. Pump technology advancements aim to improve desalination system reliability, reduce maintenance requirements, and increase energy efficiency. Desalination processes commonly use high-pressure pumps, such as positive displacement and centrifugal pumps.

By application, the segment can be further bifurcated into Municipal and industrial.

Municipal accounts for the largest market share.

Municipal

Municipal applications supply fresh water for residential, public, and community use in urban or municipal areas. As cities' populations grow and traditional water sources become insufficient, municipal desalination projects become critical to ensuring a stable and sustainable water supply. Desalinated water can be incorporated into municipal water systems to meet the needs of homes, schools, hospitals, and other public facilities. Municipal desalination is critical in addressing water scarcity in densely populated urban areas, increasing the resilience and reliability of municipal water sources.

Industrial

Desalinated water is used in various industrial processes, including manufacturing, power generation, and agriculture. Industries frequently require large amounts of water with specific quality standards, and desalination offers a viable solution, particularly in areas where freshwater availability is limited. Desalinated water has applications in manufacturing, power plant cooling systems, and agricultural irrigation.

Impact of covid-19

For instance, the market disruption across the value chain and record decline in the global service sector is set to hamper the market growth for NMVE over fiber channel. The decrement in the worldwide GDP and fall in the countries' GDP constitutes a considerable share in the global market to curtail the market's growth perspectives. The current market volatility is also discouraging organizations from making some technological developments in the company jeopardizing the company's financial stability. This scenario and the pessimistic approach of organizations to cope with the current crises restrict the market's growth.

Recent Developments

January 2024- ACCIONA leads a project to extract high-value elements from seawater brine.

November 2023- Veolia and Vendée Eau opened France's first unit for reusing treated wastewater to produce drinking water as part of the Jourdain program. This solution will provide an additional 1.5 million m3 of drinking water from May to October during increased scarcity in the Vendée.

December 2023- SICASIL, SUEZ, and Agglomération Cannes Lérins committed to preserving water resources in the Cannes region and producing very high-quality drinking water through the new So'EAU service.