Water scarcity and water stress are increasingly affecting regions around the globe, presenting substantial opportunities for the global water treatment chemicals market. According to the United Nations, by 2050, approximately 1.8 billion people are expected to live in areas facing absolute water scarcity, and about two-thirds of the global population could experience water-stressed conditions. These alarming statistics, coupled with rapid urbanization and escalating industrial activities, have created a situation where the demand for water—both potable and non-potable—far exceeds supply.
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To address this widening gap between water supply and demand, a broad range of water treatment chemicals is essential. These chemicals are crucial for making water suitable for drinking, irrigation, and industrial uses. As a result, the focus is shifting towards recycling, reuse, and effective treatment methods to combat water scarcity.
Biocides and Scale & Corrosion Inhibitors to See Robust Growth
In the water treatment chemicals market, coagulants and flocculants have traditionally dominated, accounting for over one-third of total consumption in 2018. However, biocides and scale & corrosion inhibitors are gaining traction due to their wide-ranging applications. Scale and corrosion inhibitors play a critical role in preventing scale formation and metallic corrosion in cooling systems, thus prolonging the lifespan and efficiency of these systems. Biocide chemicals, on the other hand, are instrumental in controlling microbial growth, which can otherwise have detrimental effects on both the environment and human health. Additionally, these chemicals help eliminate unpleasant odors and tastes from water, enhancing its quality.
Asia Pacific Region to Lead Market Growth
In 2018, Asia Pacific emerged as the leading region in terms of water treatment chemicals consumption. Many rural areas in China, India, and Southeast Asia still face challenges in accessing quality water. The region’s rapid industrialization and urban population growth have intensified the demand for clean water. Governments in Asia Pacific are investing significantly in improving water infrastructure and ensuring quality supply, which is expected to drive substantial growth in the water treatment chemicals market. Conversely, North America and Europe are projected to experience slower growth due to stringent environmental regulations and rising treatment costs.
Major End-Users: Oil & Gas, Power Generation, and Mining
Water-intensive industries such as oil & gas, power generation, food & beverages, textiles, and mining are the primary end-users of water treatment chemicals. The industrial sector accounts for around 20% of total freshwater withdrawals and generates substantial amounts of wastewater that requires treatment before discharge. The increasing demand for energy and the expansion of membrane usage in the mining sector are expected to boost the need for water treatment chemicals.
Municipal sectors are also significant users of these chemicals, utilizing them for treating both drinking water and wastewater from daily activities. The growing need for clean and high-quality water is a key factor driving market growth in municipal and commercial sectors.
The Impact of Water Treatment Equipment on Chemical Demand
Over the past decade, the water treatment industry has seen significant advancements, with a growing focus on alternative treatment methods. The use of filtration membranes is rising across various end-use industries, and water treatment chemicals are essential for the pretreatment of these membranes. These chemicals help remove free chlorine from feedwaters and enhance the efficiency and longevity of membrane systems. Scale and corrosion inhibitors, pH adjusters, and defoamers are commonly used in the pretreatment process. The increasing adoption of water treatment filtration and equipment is anticipated to further drive the growth of water treatment chemicals.
Regulatory Pressures and Environmental Concerns
The water treatment chemicals industry is facing evolving technologies and regulatory challenges due to heightened health and environmental concerns. Developed economies, including those in the EU, have stringent regulations governing wastewater treatment and water quality. For instance, in 2020, the EU revised its Drinking Water Directive to ensure safe and clean drinking water across member states. Compliance with these regulations is expected to impact manufacturers’ profitability, as they adapt their products to meet stringent standards.
To address these challenges, companies are innovating with new products designed to meet extreme conditions. For example, in 2020, Genesys, a subsidiary of H2O Innovation Inc., launched a specialized anti-scalant and cleaner product for the mining industry. This versatile product can operate effectively under extreme pH conditions, offering Genesys a competitive edge in the rapidly growing mining sector.
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