Global Desalination System Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Technology;
Membrane-Based (RO), Thermal Mechanical Vapor Compression, Thermal Multi-Effect Distillation, and Others.By Process;
Reverse Osmosis, Solar Distillation, Nanofiltration, Electrodialysis, and Gas Hydrate Formation.By Application;
Municipal, Industrial, and Others.By Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Desalination System Market (USD Million), 2021 - 2031
In the year 2024, the Global Desalination System Market was valued at USD 1,669.98 million. The size of this market is expected to increase to USD 2,349.84 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 5.0%.
The global desalination system market has experienced significant growth in recent years and is expected to continue expanding from 2024 to 2030, driven by the rising demand for fresh water and the growing challenges posed by water scarcity. Desalination, the process of removing salt and other impurities from seawater to produce potable water, has become increasingly important, especially in regions facing water stress and limited freshwater resources. As climate change exacerbates droughts and the global population increases, the demand for freshwater continues to outpace supply, making desalination a critical solution to ensure water availability. The desalination market encompasses a variety of technologies and processes, ranging from traditional membrane-based methods, such as reverse osmosis (RO), to more advanced thermal methods like multi-effect distillation (MED) and mechanical vapor compression (MVC).
These technologies have evolved significantly, becoming more energy-efficient and cost-effective, enabling their widespread adoption across municipal, industrial, and other sectors. Governments, industries, and municipalities worldwide are investing in desalination systems to ensure a reliable and sustainable water supply, particularly in arid regions or coastal areas where natural freshwater sources are scarce. Additionally, growing environmental concerns and the increasing availability of renewable energy sources, such as solar and wind power, are spurring the development of more sustainable desalination solutions, such as solar distillation and other energy-efficient methods. Innovations in desalination technology are also improving the efficiency of existing systems, reducing energy consumption, and lowering operational costs.
As the need for clean water continues to rise, the desalination system market is poised for further growth, with significant investments in both large-scale desalination plants and decentralized desalination solutions for smaller communities and industries. The forecast period from 2024 to 2030 is expected to see a surge in technological advancements, regulatory support, and market expansion, making desalination a key solution for addressing global water scarcity challenges.
Global Desalination System Market Recent Developments
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In 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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In 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.
Segment Analysis
The Global Desalination System Market has been segmented by Technology, Process, Application, and Geography, the market is divided into membrane-based systems, thermal processes, and other emerging technologies. Membrane-based technologies, such as Reverse Osmosis (RO), dominate the market due to their cost-effectiveness, efficiency, and scalability. Thermal processes, including Mechanical Vapor Compression (MVC) and Multi-Effect Distillation (MED), are typically used in areas with abundant thermal energy resources, such as the Middle East. Newer technologies, such as electrodialysis, are gaining traction due to their potential in specific applications, such as brackish water desalination and smaller-scale operations.
In terms of process, the market is categorized into Reverse Osmosis (RO), solar distillation, nanofiltration, electrodialysis, and gas hydrate formation. RO remains the leading process due to its high efficiency in seawater desalination. However, solar distillation is becoming increasingly popular, especially in regions with abundant sunlight, as it provides a sustainable and low-cost solution for producing fresh water. Nanofiltration, electrodialysis, and gas hydrate formation are emerging processes, with specific applications in niche markets such as brackish water desalination, water treatment in industrial applications, and small-scale systems.
Regarding application, the desalination market serves various sectors, including municipal, industrial, and others. Municipal applications dominate the market, driven by the growing demand for drinking water in urban areas. Industrial applications, particularly in the power, oil and gas, and chemical industries, also account for a significant portion of the market, as these sectors require large volumes of fresh water for cooling, processing, and other operations. Agricultural applications, although not the primary focus, are growing as desalinated water is increasingly used for irrigation in water-scarce regions.
Global Desalination System Segment Analysis
In this report, the Global Desalination System Market has been segmented by Technology, Process, Application, and Geography.
Global Desalination System Market, Segmentation by Technology
The Global Desalination System Market has been segmented by Technology into Membrane-Based (RO), Thermal Mechanical Vapor Compression, Thermal Multi-Effect Distillation, and Others.
The global desalination market is divided into several key technologies, including membrane-based technologies, thermal processes, and other emerging technologies. Membrane-based technologies, such as Reverse Osmosis (RO), dominate the desalination market due to their efficiency and scalability. RO membranes filter seawater by allowing water to pass through a semi-permeable membrane while blocking salts and other impurities. This technology is highly effective and widely used in large-scale desalination plants. Another important membrane technology is nanofiltration, which is often used for brackish water desalination, offering a more energy-efficient alternative to RO.
Thermal desalination processes, such as Multi-Effect Distillation (MED) and Mechanical Vapor Compression (MVC), use heat to separate fresh water from saltwater and are commonly used in regions with abundant thermal energy. Multi-Effect Distillation (MED) is widely used in the Middle East, where energy resources are plentiful. Mechanical Vapor Compression (MVC) is also used in regions with access to thermal energy sources. Emerging technologies, such as electrodialysis and gas hydrate formation, are still in the early stages but hold promise for smaller-scale desalination applications. Electrodialysis uses electric fields to separate ions in water, and gas hydrate formation is an experimental method that uses gas hydrates to extract water from seawater.
Global Desalination System Market, Segmentation by Process
The Global Desalination System Market has been segmented by Process into Reverse Osmosis, Solar Distillation, Nanofiltration, Electrodialysis, and Gas Hydrate Formation.
The process segment of the desalination market includes Reverse Osmosis (RO), solar distillation, nanofiltration, electrodialysis, and gas hydrate formation. Reverse Osmosis (RO) remains the leading process due to its efficiency in removing salts and contaminants from seawater. RO is commonly used in large-scale desalination plants due to its proven effectiveness and scalability. Solar distillation is a process that uses solar energy to evaporate seawater and condense the vapor to produce fresh water.
This process is particularly useful in small-scale, decentralized systems in regions with abundant sunlight, making it ideal for rural or off-grid areas. Nanofiltration is used primarily for desalinating brackish water, as it offers lower energy consumption compared to RO. It is often employed in regions where brackish water is more readily available than seawater. Electrodialysis is gaining attention for its ability to desalinate brackish water efficiently, particularly in areas with low salinity levels. Gas hydrate formation is an emerging process that may be used for small-scale desalination in the future, especially for regions where access to traditional desalination infrastructure is limited.
Global Desalination System Market, Segmentation by Application
The Global Desalination System Market has been segmented by Application into Municipal, Industrial, and Others.
Desalinated water is used in various sectors, including municipal, industrial, and other applications. The municipal sector dominates the market, as desalination is increasingly being used to supply drinking water to growing urban populations. Municipal applications involve the construction of large desalination plants to meet the water demand of cities and towns facing water scarcity. The industrial sector also plays a significant role in the desalination market, as industries such as power generation, oil and gas, and chemical processing require large volumes of fresh water for cooling, processing, and other operations.
In industrial settings, desalination is used to ensure a continuous water supply for operations and to reduce dependence on natural water resources. Agricultural applications, though not the largest segment, are growing as desalinated water is used for irrigation in water-scarce regions. The other category includes niche applications, such as small-scale desalination units for rural areas or remote industrial operations, where centralized desalination plants may not be feasible.
Global Desalination System Market, Segmentation by Geography
In this report, the Global Desalination System Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Desalination System Market Share (%), by Geographical Region, 2024
The Middle East and Africa have emerged as the leading market for desalination systems due to the growing demand for fresh water for drinking, industrial, and agricultural purposes. The increasing need for desalinated water in this region is driven by several factors, including rapid population growth, urbanization, and the scarcity of surface water resources. Countries such as Saudi Arabia, the UAE, Egypt, Iran, Kuwait, Oman, and South Africa are particularly affected by these challenges, making desalination a critical solution for ensuring a reliable water supply.
In Saudi Arabia, water scarcity is particularly severe, positioning the country as one of the most water-scarce nations globally. Despite its arid environment, Saudi Arabia ranks among the world's largest water consumers, second only to the United States and Canada, with an average daily water consumption of 250 liters per capita. To address this, the Kingdom has become the largest producer of desalinated water worldwide, supplying 25% of the global desalinated water. Saudi Arabia is also home to some of the largest desalination plants, highlighting its commitment to meeting its water needs through advanced desalination technologies.
In March 2022, Saudi Arabia announced a significant expansion of its water infrastructure with over 60 new desalination projects worth SAR 35 billion (approximately USD 9.33 billion). These projects are designed to solidify Saudi Arabia's position as the world leader in desalination and increase its desalination capacity to 7.5 million cubic meters of water per day by 2027, nearly tripling its current output of 2.54 million cubic meters per day. This ambitious plan reflects the country's strategic efforts to ensure a sustainable water supply for its growing population and industrial needs.
Algeria has also been heavily impacted by water scarcity, particularly due to a significant decline in rainfall over the past decade, which has decreased by 30% to 40%. As a result, the country has been expanding its desalination capabilities to meet the increasing demand for water in both residential and industrial sectors. Algeria's Hamma Seawater Desalination Plant, the largest in Africa, produces 200,000 cubic meters of fresh water per day, playing a crucial role in securing the country's water supply.
In the UAE, the Emirates Water and Electricity Company (EWEC) has been advancing desalination initiatives to meet the rising demand for water. In October 2022, EWEC received proposals from three international companies—Spain's Acciona, France's Engie, and GS Inimah—regarding the development of the Shuweihat desalination plant in Abu Dhabi. This plant, which is expected to supply up to 70 million imperial gallons of water daily, will serve the Al Dhafra region, further boosting the UAE's desalination capacity.
The Middle East and Africa’s reliance on desalination systems will continue to grow as these regions face ongoing challenges related to water scarcity. With large-scale desalination projects underway and planned across several countries, the region is set to strengthen its position as a global leader in water desalination. These efforts underscore the critical role of desalination technology in securing a sustainable future for water resources in some of the most water-stressed areas of the world.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Desalination System Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Growing Water Scarcity and Increasing Global Water Demand
- Advancements in Desalination Technology
- Increasing Investments in Desalination Infrastructure
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Expansion of Industrial and Municipal Water Demand- The rapid expansion of industrial and municipal sectors in urbanized and developing regions is significantly driving the demand for desalinated water. Urbanization and industrialization are accelerating the need for fresh water in various applications, including drinking water, industrial processes, and agricultural irrigation. Municipalities, particularly in water-scarce regions, are investing in desalination plants to meet the rising demand for potable water. With urban populations increasing and the strain on natural water resources becoming more apparent, desalination offers a reliable solution for municipalities to supply water to their populations.
The industrial sector, including power generation, oil and gas, and chemical processing industries, is also becoming a major consumer of desalinated water. As industries grow, they require larger volumes of fresh water for their operations, such as cooling processes, cleaning, and processing. This increased demand from both municipal and industrial sectors is pushing governments and industries to explore desalination as a key solution to meet future water needs. Additionally, with water scarcity becoming a more pressing issue, desalination is seen as an important tool for sustainable water management in growing cities and industrial hubs.
Restraints
- High Energy Consumption and Operational Costs
- Environmental Concerns Related to Brine Disposal
- Limited Availability of Fresh Water Sources in Certain Regions
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Technical and Financial Barriers in Developing Countries- In many developing countries, the high upfront capital costs and technical challenges associated with desalination systems present a significant barrier to adoption. Desalination plants require substantial investments in infrastructure, technology, and maintenance, making them financially challenging for countries with limited budgets or access to financing. Additionally, the technical expertise required to operate and maintain desalination systems may be scarce, hindering the widespread adoption of desalination technology in certain regions.
While advanced technologies like Reverse Osmosis (RO) have proven effective, their implementation is often hindered by the need for skilled labor and technical support. In addition to the capital and expertise challenges, many developing countries face economic difficulties that make large-scale desalination projects less viable. As a result, these barriers limit the ability of many countries to fully leverage desalination as a solution for their water needs, despite the growing demand for fresh water. Overcoming these challenges will require significant investment in both infrastructure and training to build the necessary capabilities in these regions.
Opportunities
- Advancements in Solar Desalination Technology
- Integration of Renewable Energy Sources in Desalination Systems
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Emergence of Small-Scale and Decentralized Desalination Solutions- Emerging markets, particularly in regions such as Africa, Southeast Asia, and the Middle East, are increasingly recognizing the need for sustainable water solutions. Rapid urbanization, industrial growth, and climate change are placing significant pressure on available freshwater resources, prompting governments and industries in these regions to invest in desalination technologies. In these areas, desalination is seen as a viable solution to provide a reliable source of fresh water, especially in coastal regions where seawater is abundant. Moreover, the growing demand for sustainable water solutions presents opportunities for the development of new, energy-efficient desalination technologies, such as solar-powered desalination and hybrid systems that integrate renewable energy sources.
These technologies align with the sustainability goals of emerging markets, offering a more affordable and environmentally friendly solution to water scarcity. As the awareness of water scarcity increases, emerging markets are likely to expand their investments in desalination systems, creating significant growth opportunities for companies in the desalination sector. Furthermore, international development agencies and private investors are becoming more willing to fund desalination projects in emerging markets, recognizing the potential for economic development and improved quality of life through access to clean water.
Competitive Landscape Analysis
Key players in Global Desalination System Market include:
- Xylem
- Veolia Environment S.A.
- Aquatech International LLC
- Biwater Holdings Limited
- Toray Industries, Inc.
- Suez S.A.
- Abengoa S.A.
- Doosan Heavy Industries & Construction Co., Ltd.
- Hyflux Ltd.
- Acciona, S.A.
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 Technology
- Market Snapshot, By Process
- Market Snapshot, By Application
- Market Snapshot, By Region
- Global Desalination System Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Growing Water Scarcity and Increasing Global Water Demand
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Advancements in Desalination Technology
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Increasing Investments in Desalination Infrastructure
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Expansion of Industrial and Municipal Water Demand
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- Restraints
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High Energy Consumption and Operational Costs
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Environmental Concerns Related to Brine Disposal
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Limited Availability of Fresh Water Sources in Certain Regions
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Technical and Financial Barriers in Developing Countries
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- Opportunities
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Advancements in Solar Desalination Technology
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Integration of Renewable Energy Sources in Desalination Systems
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Emergence of Small-Scale and Decentralized Desalination Solutions
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- 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
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Global Desalination System Market, By Technology, 2021 - 2031 (USD Million)
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Membrane-Based (RO)
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Thermal Mechanical Vapor Compression
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Thermal Multi-Effect Distillation
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Others
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Global Desalination System Market, By Process, 2021 - 2031 (USD Million)
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Reverse Osmosis
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Solar Distillation
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Nanofiltration
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Electrodialysis
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Gas Hydrate Formation
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- Global Desalination System Market, By Application, 2021 - 2031 (USD Million)
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Municipal
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Industrial
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Others
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- Global Desalination System 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
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- Competitive Landscape
- Company Profiles
- Xylem
- Veolia Environment S.A.
- Aquatech International LLC
- Biwater Holdings Limited
- Toray Industries, Inc.
- Suez S.A.
- Abengoa S.A.
- Doosan Heavy Industries & Construction Co., Ltd.
- Hyflux Ltd.
- Acciona, S.A.
- Company Profiles
- Analyst Views
- Future Outlook of the Market