Water Treatment Chemicals Market Expected to Reach $53.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Water Treatment Chemicals Market," The water treatment chemicals market was valued at $37.5 billion in 2022, and is estimated to reach $53.8 billion by 2032, growing at a CAGR of 3.8% from 2023 to 2032.

Water treatment chemicals include coagulants, flocculants, disinfectants, and pH adjusters, which are used to enhance the quality of water by addressing impurities and contaminants. Coagulants aid in particle aggregation, whereas flocculants facilitate their removal. Disinfectants combat microorganisms, ensuring water safety. pH adjusters regulate acidity/alkalinity for optimal treatment efficacy.

The burgeoning growth of the power generation sector acts as the key driving force of the water treatment chemicals market size. As the power generation sector expands globally to meet increasing energy demands, water treatment chemicals play a pivotal role in ensuring the efficiency and sustainability of power plants. These chemicals are essential for treating water used in various processes, such as cooling and steam generation, safeguarding equipment from corrosion and scaling. Furthermore, the demand for water treatment chemicals is expected to surge as power generation facilities strive to optimize operational performance, adhere to stringent environmental regulations, and extend the service life of critical infrastructure.

According to the International Energy Agency (IEA), global renewable electricity capacity is expected to increase by more than 60% from 2020 levels to over 4800 GW by 2026. As per the Indian Ministry of Power, the energy generation target for thermal, hydro, nuclear, and Bhutan imports has been set at 1,356 billion units. This is a 9.83% increase in 2021–22 over the actual generation of the previous year. Consequently, the water treatment chemicals market share is expected to witness robust growth, driven by the imperative need for effective water management solutions within the burgeoning power generation landscape, fostering a mutually beneficial dynamic between these interconnected sectors.

However, water treatment chemicals market growth is hindered primarily by the stringent environmental regulations imposed by governments and agencies such as the EPA. The use of certain water treatment chemicals can have adverse effects on the environment, leading to challenges in compliance and a negative public perception of the industry. End users are increasingly seeking water treatment solutions that are both environmentally friendly and provide long-term efficacy.

However, manufacturers encounter difficulties in developing cost-effective and highly efficient environmentally friendly water treatment chemicals, as there are concerns about the economic viability of green chemistries. In addition, the release of patented water treatment chemicals into the public domain makes them vulnerable to imitation, with some Asian manufacturers offering counterfeit products at lower prices, presenting a significant challenge for legitimate water treatment chemical manufacturers.

The increasing demand for eco-friendly water treatment solutions has opened avenues for innovative products that prioritize sustainability. Market players are capitalizing on this water treatment chemicals market trend by introducing cutting-edge solutions such as bio-based water treatment chemicals, smart water treatment technologies, nanotechnology-driven treatments, modular water treatment systems, and low-temperature water treatment chemicals. These advancements address environmental concerns and offer more sustainable alternatives for water treatment.

The market's response to these innovations is expected to foster opportunities for growth within the water treatment chemicals industry. As industries recognize the importance of environmentally friendly practices, the implementation of these innovative solutions not only meets regulatory standards but also reflects a commitment to responsible and sustainable water treatment practices. This shift toward greener alternatives signifies a positive trajectory for the industry, aligning with the global focus on eco-conscious solutions.

The global water treatment chemicals market is into type, end-use industry, and region. By type, the market is fragmented into coagulants, pH adjusters & softeners, flocculants, biocides & disinfectants, scale inhibitors & dispersants, corrosion inhibitors, and others. Based on the end-use industry, it is bifurcated into industrial and municipal. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

Depending on the type, scale inhibitors, and dispersants is projected to be the fastest-growing segment and corrosion inhibitors has garnered the highest share in the water treatment chemicals market.

By end-use industry, Municipal is projected to be the fastest-growing segment, and industrial has garnered the highest share in the water treatment chemicals market.

The major players operating in the global water treatment chemicals market are Akzo Nobel N.V., Baker Hughes Company, BASF SE, Cortec Corporation, Ecolab, Italmatch Chemicals spa, Canadian Clear, Dober, Kemira, Hydrite Chemical, Dow, Lonza, Nouryon, Solenis, Solvay, American Water Chemicals, Inc., Kurita Water Industries Ltd., SNF, US WATER SYSTEMS INC., and Veolia.

Key Findings Of The Study:

• Based on the type, the scale inhibitors & dispersants segment is expected to grow at a CAGR of 4.4%, in terms of revenue, during the forecast period.
• Depending on the end-use industry, the municipal segment is expected to grow at a CAGR of 4.0%, in terms of revenue, during the forecast period.
• Region wise, Asia-Pacific garnered a major share in 2022 in terms of revenue.