Desalination System Market, by Technology (Membrane-Based (RO) , Thermal Mechanical Vapor Compression, Thermal Multi-Effect Distillation, Others) , by Process (Reverse Osmosis, Solar Distillation, Nanofiltration, Electrodialysis, Gas Hydrate Formation), by Application (Municipal, Industrial, Others) : Global Opportunity Analysis and Industry Forecast, 2024 - 2033

Key Market Dynamics

As industries such as power generation, oil & gas, chemicals, and manufacturing continue to expand, their need for large quantities of water also increases. Many of these industries operate in regions where freshwater resources are either limited or under stress, prompting a shift toward desalinated water as a reliable alternative. Furthermore, the chemical and manufacturing industries, which require high-purity water for various processes, are increasingly turning to desalination to meet their needs. The consistent quality of desalinated water, free from contaminants found in traditional water sources, makes it an attractive option for industries that prioritize process integrity and product quality. All these factors are expected to drive the desalination system market growth. However, osmosis (RO) is the most widely used technology in desalination, but it is highly susceptible to membrane fouling, which can severely impact the efficiency and operational lifespan of desalination plants. Fouling occurs when particles, microorganisms, or chemical substances accumulate on the surface of the RO membranes, leading to reduced water flow, increased energy consumption, and frequent maintenance needs.

Membrane fouling causes significant operational disruptions, as it requires regular cleaning and, in some cases, early replacement of the membranes, both of which contribute to increased operational costs. The need for frequent maintenance and downtime reduces the overall productivity of desalination plants, making the process less cost-effective and reliable. This increases the cost of producing desalinated water and creates uncertainty in the continuous supply, which major concern for industries and municipalities relying on consistent water availability. All these factors are expected to hamper the desalination system market growth. As the global water crisis deepens due to factors such as population growth, urbanization, and climate change, many regions are increasingly relying on desalination to secure a reliable freshwater supply. This has led to a wave of new projects, particularly in water-scarce regions such as the Middle East, North Africa, and parts of Asia, where traditional water sources are insufficient to meet growing demands.

Furthermore, the focus on sustainability and environmental impact in upcoming desalination projects creates opportunities for companies to offer more energy-efficient and eco-friendly solutions. Projects that integrate renewable energy sources, such as solar or wind power, with desalination processes are becoming increasingly common, presenting growth prospects for companies that provide these integrated solutions. All these factors are anticipated to offer new growth opportunities for the global desalination system market forecast period.

Wastewater Production

In the global desalination system market, the Asia-Pacific region leads with a significant share of 46.8% of the total volume, reflecting its major role in driving demand due to its rapidly growing population and industrialization, which necessitate substantial water resources. North America and Europe also play key roles, with shares of 19.7% and 20.0% respectively, driven by their advanced infrastructure and increasing investments in water treatment technologies. Meanwhile, Sub-Saharan Africa, despite having a smaller share of 13.5%, is experiencing growing interest in desalination due to its water scarcity issues and the need for sustainable water solutions.

Market Segmentation

The desalination system market is segmented into technology, process, application, and region. By technology, the market is classified into membrane-based (RO) , thermal mechanical vapour compression (MVC) , and thermal multi-effect distillation (MED) , and others. By process, the market is divided into reverse osmosis, solar distillation, nanofiltration, electrodialysis, gas hydrate formation. By application, the market is categorized into municipal, industrial, and others. Region-wise the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Regional Market Outlook

The Middle East and Africa emerged as the largest market for desalination systems. The demand for desalination systems in the region is mainly due to the growing demand for desalinized water for drinking and industrial and agricultural use. In the Middle East, countries such as Saudi Arabia, the United Arab Emirates, and Qatar are leading the way in desalination technology. These nations have made substantial investments in advanced desalination plants and infrastructure to ensure a reliable supply of freshwater. For instance, Saudi Arabia, which is the world’s largest producers of desalinated water, has been investing heavily in both reverse osmosis (RO) and multi-effect distillation (MED) technologies.

Competitive Landscape

The major players operating in the desalination system market include Veolia Environnement S.A., Suez S.A., Doosan Heavy Industries & Construction Co., Ltd., Abengoa S.A, Acciona, S.A., Toray Industries, Inc, Aquatech International LLC, Biwater Holdings Limited, Hyflux Ltd, Xylem. In April 2022, Veolia Water Technologies, a prominent subsidiary of the Veolia group and a leading expert in water treatment, unveiled its innovative Barrel technology in the Asia-Pacific region. This integrated, plug-and-play reverse osmosis (RO) system is designed to produce high-quality freshwater that meets all regulatory standards and aligns with the evolving needs of the desalination market. The Barrel offers a cutting-edge solution that combines efficiency and compliance, addressing both the operational and regulatory demands of water treatment in the region.

Industry Trends

• According to a statement from the Ministry of Logistics and Water, the Safi seawater desalination plant has officially begun operations. The plant is set to achieve an ambitious goal of producing around 10 million cubic meters of drinking water by the end of 2023.
• According to World Bank data, in Morocco, the agricultural sector – responsible for 14% of the country’s GDP - accounts for almost 88% of total national water demand. Reduced water availability and lower crop yields due to water scarcity could reduce GDP by up to 6.5% the significant water demand from agriculture and the potential 6.5% GDP reduction due to water scarcity are driving increased investment in desalination systems.

Key Sources Referred

1. Invest India
2. International Renewable Energy Agency (IREA)
3. International Energy Agency (IEA)
4. India Brand Equity Foundation (IBEF)
5. Smart Water Magazine
6. Energy For Growth Hub
7. Climate Technology Centre and Network
8. Arab Center Washington DC

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the desalination system market share, segments, current trends, estimations, and dynamics of the desalination system market analysis from 2024 to 2033 to identify the prevailing desalination system market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the desalination system market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global desalination system market trends, key players, market segments, application areas, and market growth strategies.