Desalination Market
By Source;
Sea Water, Brackish Water, River Water, and OthersBy Technology;
Membrane and ThermalBy Application;
Municipal, Industrial, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Desalination Market Overview
Desalination Market (USD Million)
Desalination Market was valued at USD 17,764.81 million in the year 2024. The size of this market is expected to increase to USD 29,665.15 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.6%.
Desalination Market
*Market size in USD million
CAGR 7.6 %
Study Period | 2025 - 2031 |
---|---|
Base Year | 2024 |
CAGR (%) | 7.6 % |
Market Size (2024) | USD 17,764.81 Million |
Market Size (2031) | USD 29,665.15 Million |
Market Concentration | Medium |
Report Pages | 388 |
Major Players
- Asahi Kasei Corp
- Doosan Heavy Industries & Construction Co. Ltd.
- DuPont de Nemours Inc
- Hyflux Ltd
- IDE Technologies
- Kurita Water Industries Ltd
- Mitsubishi Heavy Industries Ltd
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Desalination Market
Fragmented - Highly competitive market without dominant players
The Desalination Market is gaining momentum as global reliance on alternative water sources increases. By converting seawater and brackish water into freshwater, desalination ensures consistent supply for households and industries. Insights reveal that nearly 55% of new large-scale water supply projects now incorporate desalination as a core solution.
Technological Advancements Driving Adoption
Innovation in reverse osmosis, thermal distillation, and hybrid systems is propelling market growth. Research indicates that over 60% of operational desalination plants use membrane-based technologies for their efficiency and cost benefits. These advances are making large-scale operations more economical and effective in addressing water demand.
Rising Demand for Sustainable Water Solutions
The increasing pressure of water scarcity has accelerated the shift toward sustainable water strategies. Studies show that more than 50% of green water initiatives prioritize desalination because of its reliability. Integrating renewable energy into desalination processes further strengthens its role as a sustainable and scalable water solution.
Increasing Use in Industrial Applications
Beyond municipal supply, desalination is playing an expanding role in industrial applications. Current data shows that nearly 45% of industrial water needs are being met through desalination in critical sectors. Power generation, oil & gas, and manufacturing industries are among the leading adopters, ensuring uninterrupted operations through reliable water access.
Future Growth Potential
The desalination industry continues to evolve with strong support from technology upgrades and rising investments. Reports indicate that almost 40% of upcoming water infrastructure projects highlight desalination as a priority component. With its growing applications across multiple sectors, the market is positioned for sustained expansion.
Desalination Market Recent Developments
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April 2022: Veolia Water Technologies, a subsidiary of the Veolia group and leading specialist in water treatment announced the Asia-Pacific launch of the Barrel, an integrated plug-and-play reverse osmosis (RO) technology. The Barrel produces fresh water that complies with all water quality regulations while meeting the demands and expectations of the desalination market.
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August 2022: Doosan Enerbility signed a contract with Shuaibah Three Water Desalination Co., a special purpose company established by ACWA Power, to construct the Shuaibah 3 seawater desalination plant to build a seawater desalination plant worth JPY 840 billion (USD 633 billion) in Saudi Arabia. This project involves building a reverse osmosis (RO) seawater desalination plant about 110 km south of Jeddah City.
Desalination Market Segment Analysis
In this report, the Desalination Market has been segmented by Source, Technology, Application, and Geography.
Desalination Market, Segmentation by Source
The Global Desalination Market has been segmented by Source into Sea Water, Brackish Water, River Water, and Others.
Sea Water
Sea water dominates the global desalination market, powering nearly 70% of desalination plants worldwide. Its widespread adoption in coastal and arid regions highlights its role in addressing acute freshwater shortages. Growing urbanization and industrialization further fuel the demand for sea water-based solutions.
Brackish Water
Brackish water contributes to about 20% of the market, offering a cost-efficient alternative due to its lower salinity. It is a preferred choice in inland regions, particularly for agriculture and municipal supply, where access to sea water is limited.
River Water
River water holds nearly 7% share in the market, serving as a reliable source where freshwater quality is compromised by pollution or scarcity. Projects are expanding in regions prioritizing sustainable water management.
Others
Other sources, such as wastewater and industrial effluents, account for around 3% of the market but are growing steadily. This segment aligns with efforts toward water recycling, sustainability, and resource optimization in industries.
Desalination Market, Segmentation by Technology
The Desalination Market has been segmented by Technology into Membrane, and Thermal.
Membrane
The membrane segment dominates the global desalination market, accounting for approximately 65% of all projects. Its popularity stems from superior energy efficiency and lower operating costs. Technologies like reverse osmosis (RO) have further accelerated adoption across municipal supply and industrial applications.
Thermal
The thermal desalination segment represents nearly 35% of the market, especially in regions with abundant low-cost energy such as the Middle East. Methods like multi-stage flash (MSF) and multi-effect distillation (MED) are effective for treating high-salinity seawater, making them vital despite higher energy requirements.
Desalination Market, Segmentation by Application
The Desalination Market has been segmented by Application into Municipal, Industrial, and Others.
Municipal
The municipal desalination segment accounts for nearly 60% of the global market. Growing urban populations and rising pressure on existing water resources are fueling demand for safe and reliable drinking water, especially in water-stressed regions.
Industrial
The industrial segment contributes approximately 30% of the total market. High adoption across oil & gas, power generation, and manufacturing is driven by the need for process water and compliance with strict regulations.
Others
The others category, making up close to 10% of the market, covers agriculture, tourism, and defense facilities. These applications are expanding in arid and remote regions, supporting irrigation, hospitality, and military operations.
Desalination Market, Segmentation by Geography
In this report, the Desalination Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Regions and Countries Analyzed in this Report
Desalination Market Share (%), by Geographical Region
North America
The North American desalination market contributes close to 15% of the global share. Regions like California and Texas are investing heavily due to drought conditions and rising urban demand.
Europe
Europe accounts for nearly 12% of the market, led by countries such as Spain and Italy. The region relies on desalination to support agriculture, tourism, and sustainable urban water supply.
Asia Pacific
The Asia Pacific region dominates with about 40% of the market. Nations like China, India, and Japan are expanding desalination infrastructure to tackle water scarcity amid rapid industrialization.
Middle East & Africa
The Middle East & Africa hold nearly 25% of the market. Countries including Saudi Arabia, UAE, and Israel source more than 70% of their drinking water from desalination due to extreme scarcity.
Latin America
Latin America represents around 8% of the market, with rising adoption in Chile, Brazil, and Mexico. The segment is driven by mining, agriculture, and coastal urban needs.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Desalination Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Water scarcity
- Population growth
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Increasing urbanization - Increasing urbanization is a significant driver influencing the dynamics of the global desalination market. As more people migrate to cities, especially in coastal areas, the demand for freshwater escalates, straining existing water resources. Urbanization leads to higher water consumption for domestic, industrial, and commercial purposes, exacerbating water scarcity in already stressed regions. This trend underscores the crucial role of desalination in providing a reliable and sustainable water supply to meet the needs of growing urban populations.
The expansion of urban areas also presents opportunities for the desalination market. Cities facing water shortages or poor water quality often turn to desalination as a viable solution to supplement local freshwater sources. Governments and municipal authorities increasingly invest in desalination infrastructure to ensure water security and support economic development in urban centers. This proactive approach not only addresses immediate water challenges but also fosters resilience against future uncertainties, such as climate change impacts and population growth.
However, increasing urbanization poses challenges for desalination projects, particularly concerning land use, environmental impact, and community acceptance. The construction and operation of desalination plants require significant space and can affect local ecosystems and coastal landscapes. Balancing urban development with sustainable water management practices is essential to mitigate these challenges effectively. Moreover, integrating desalination with renewable energy sources and improving efficiency through technological innovation are critical strategies to optimize urban water management and enhance the sustainability of desalination operations in urbanized areas.
Restraints:
- High energy costs
- Environmental concerns
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High initial investment - High initial investment is a key restraint affecting the global desalination market, particularly in the deployment of large-scale desalination projects. The capital-intensive nature of desalination infrastructure includes costs associated with plant construction, equipment procurement, and site development. These upfront expenses often present a barrier to entry for governments, private investors, and utilities considering desalination as a solution to water scarcity challenges.
The significant capital outlay required for desalination projects can deter potential investors and stakeholders despite the long-term benefits of securing a reliable freshwater supply. Financing large-scale desalination facilities involves navigating complex financial arrangements and securing funding from diverse sources, including public budgets, international loans, and private sector investments. Overcoming these financial hurdles requires strategic planning, risk assessment, and collaboration among stakeholders to mobilize resources effectively and ensure project feasibility.
Despite the initial investment challenges, advancements in desalination technologies and project management practices offer opportunities to reduce costs and enhance financial viability. Innovations in membrane technology, energy efficiency improvements, and modular plant designs contribute to lowering capital expenditures and operational costs over the project lifecycle. Additionally, favorable regulatory frameworks, government incentives, and partnerships with technology providers can mitigate financial risks and accelerate the deployment of cost-effective desalination solutions worldwide.
Opportunities:
- Innovation in membrane technology
- Integration of renewable energy
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Public-private partnerships - Public-private partnerships (PPPs) play a crucial role in addressing the challenges and opportunities within the global desalination market. These collaborative arrangements between governments and private sector entities are instrumental in leveraging resources, expertise, and innovation to develop and operate desalination projects effectively.
One of the primary advantages of PPPs in desalination is their ability to mobilize private sector investment and expertise, thereby easing the financial burden on public budgets. Private companies bring specialized knowledge in project development, construction, and operation, which can optimize project efficiency and reduce costs over the long term. This collaboration allows governments to benefit from private sector innovation and efficiency while maintaining oversight and accountability in ensuring public service delivery standards.
However, successful PPPs in desalination require careful consideration of regulatory frameworks, risk allocation, and stakeholder engagement to ensure transparency and accountability. Clear contractual agreements outlining responsibilities, performance metrics, and dispute resolution mechanisms are essential to managing the complexities inherent in such partnerships. Effective governance and regulatory oversight help maintain public interest, safeguard environmental concerns, and uphold the long-term sustainability of desalination operations.
Competitive Landscape Analysis
Key players in Global Desalination Market include:
- Asahi Kasei Corp
- Doosan Heavy Industries & Construction Co. Ltd.
- DuPont de Nemours Inc
- Hyflux Ltd
- IDE Technologies
- Kurita Water Industries Ltd
- Mitsubishi Heavy Industries Ltd
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Source
- Market Snapshot, By Technology
- Market Snapshot, By Application
- Market Snapshot, By Region
- Desalination Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Water scarcity
- Population growth
- Increasing urbanization
- Restraints
- High energy costs
- Environmental concerns
- High initial investment
- Opportunities
- Innovation in membrane technology
- Integration of renewable energy
- Public-private partnerships
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Desalination Market, By Source, 2021 - 2031 (USD Million)
- Sea Water
- Brackish Water
- River Water
- Others
- Desalination Market, By Technology, 2021 - 2031 (USD Million)
- Membrane
- Thermal
- Desalination Market, By Application, 2021 - 2031 (USD Million)
- Municipal
- Industrial
- Others
- Desalination Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Desalination Market, By Source, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Asahi Kasei Corp
- Doosan Heavy Industries & Construction Co. Ltd.
- DuPont de Nemours Inc
- Hyflux Ltd
- IDE Technologies
- Kurita Water Industries Ltd
- Mitsubishi Heavy Industries Ltd
- Company Profiles
- Analyst Views
- Future Outlook of the Market