The global water desalination equipment market was valued at USD 11.45 billion in 2020 and is expected to grow at a CAGR of 8.9% during the forecast period. Speedy deletion of freshwater sources and growing water scarcity are predicted to boost demand for H2O desalination equipment over the forecast period.
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The major industry players and manufacturers are investing heavily in R&D to improve efficiency and reduce energy consumption, which boosts demand and supply for equipment worldwide. The growing trend of desalinated H2O replacing diminishing freshwater supplies is expected to provide sufficient growth prospects for the global water desalination equipment market.
Rapid industrialization across the globe has led to an increase in the need for freshwater. In the U.S. alone, more than 14,800 Mgal of H2O is used by industries, and according to World Bank, India’s demand for H2O for industries is growing by 4.2% per year, with an estimated 228 billion cubic meters of H2O required by 2025 from 67 billion cubic meters in 1999. This increased demand will fuel the growth of the global equipment market over the coming years.
The emergence of novel technologies in H2O desalination is the future for the global equipment market. Companies are developing energy-efficient desalination plants powered by solar and wind energy. For instance, in 2020, GivePower launched containerized, solar-powered aqua desalination and purification plants in Kenya and Haiti, operating with power wall battery storage technology developed by Tesla. Solar water farm systems developed by GivePower are priced at only USD 500,000 with a 20-year expected lifespan.
COVID-19 pandemic is expected to slow down the growth of the global market due to the shortage of laborers and disruption in the supply chain of construction materials which is expected to hinder the construction of desalination plants during lockdown imposed in many parts of the world.
The global equipment market is driven by factors such as increasing population, scarcity of fresh aqua resources, abundant availability of sea aqua, and rapid industrialization during the forecast period. Increasing investment by governments to build mega desalination plants and advancements in technology such as the development of energy-efficient technologies is expected to propel the global equipment market growth further.
In partnership with private companies, governments across the globe are investing heavily to build mega desalination plants to fulfill the demands of the public and industry. For instance, in 2020, a USD 384 million contract was given to Acciona and RTCC by Saline Water Conversion Corp. (SWCC) to construct the Shuqaiq 1 desalination plant in Saudi Arabia. Last year, India started constructing four desalination plants in the state of Gujarat along the Arabian Sea coast. These developments will augment the growth of the global market.
The industry players are launching new products, raising funds, and are entering into collaborations to develop new innovative technologies. For instance, the DOE introduced USD 9 million challenges such as the "Solar Desalination Prize" in April 2020 to promote the systems that employ solar-thermal energy to generate clean H2O from highly saline H2O.
Hydro Wind Energy, based in UAE, launched a device, Quench Sea, in March 2020. The device is used to desalinate sea aqua through reverse osmosis to generate fresh H2O, and the hand-held H2O desalination device is priced at just USD 30.
The market is primarily segmented on the basis of technology, source, application, and region.
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The reverse osmosis segment dominated the market and generated the highest revenue, in 2020, on account of its potential to treat various types of feed aqua, ease of processing, low cost of installation, and limited use of chemicals. The ability of the technology to consume less energy and increase efficiency are the key factors that drive the segment's growth.
MSF distillation segment is projected to grow at a high growth rate during the study timeframe. Increased Gain Output Ratio (GOR), minimal maintenance and operational costs, and flexibility to work with the dual-purpose power plants are likely to increase acceptance of technology, particularly in desalination applications.
The municipal segment generated the highest revenue in 2020, owing to the increasing urban population and burgeoning megacities, driving the need for desalination equipment in the municipal sector. In addition, the decreasing cost of desalinated H2O, along with the rising cost of surface H2O in major cities, is expected to boost demand for the equipment.
The industrial segment is anticipated to grow at a high rate due to the speedy industrial development in emerging economies such as Thailand, India, and Malaysia have led to the increasing demand for the equipment. The growing global population has led to the growing development in the industrial sectors such as food & beverage, oil & gas, pharmaceuticals, pulp & paper, and manufacturing. All these factors drive equipment market growth in the forecast period.
The Middle East & Africa equipment market is the most significant region for the global equipment market. The severe scarcity of fresh H2O and rainfall in the region is anticipated to create a need for the desalination equipment market over the projected period.
Countries such as Saudi Arabia have some of the biggest desalination plants globally, and the governments in this region are investing heavily in desalination solutions. In addition, the growth in tourism, particularly in the Middle East region, and increasing per-capita consumption of H2O will further drive the equipment market growth.
Asia Pacific market is expected to be the fastest region for the global market due to rapid industrialization, substantial growth in agriculture, and huge population in countries like China and India. These two countries are the largest populated countries and fastest-growing economies in the world. This will increase the demand for freshwater, which will boost the growth of the equipment market.
Major players in the equipment market are investing hugely in R&D to develop innovative energy-efficient desalination solutions. Companies are also devising key strategies such as new product launches, collaborations, and acquisitions to expand their footprint in the global equipment market.
Some of the major players operating in the water desalination equipment market include Acciona, S.A., Aquatech International LLC, Biwater Holdings Limited., Cadagua, Degrémont, Doosan Heavy Industries & Construction Co., Ltd., General Electric Company, Genesis Water Technologies, Guangzhou KangYang Seawater Desalination Equipment Co., Ltd. (KYSEARO), IDE Technologies, Koch Separation Solutions (KSS), SUEZ, Veolia, Xylem.
Market size value in 2020
USD 11.45 billion
Revenue forecast in 2028
USD 19.65 billion
8.9% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million/billion and CAGR from 2021 to 2028
By Technology, By, Source By, Application, By Region
North America Europe Asia Pacific Latin America; Middle East & Africa
Acciona, S.A., Aquatech International LLC, Biwater Holdings Limited., Cadagua, Degrémont, Doosan Heavy Industries & Construction Co., Ltd., General Electric Company, Genesis Water Technologies, Guangzhou KangYang Seawater Desalination Equipment Co., Ltd. (KYSEARO), IDE Technologies, Koch Separation Solutions (KSS), SUEZ, Veolia, Xylem.