Global Water Treatment Chemicals Market - Analysis and Forecast, 2017 to 2021

Market Overview

Improper water treatment and management services have a direct impact on the public health and leads to air, land, and groundwater pollution. Moreover, the rising incidences of droughts and floods is giving rise to the outbreak of diseases such as cholera, and malaria, among others. It is estimated that globally, approximately 3.5 million people die annually, because of inadequate water sanitation and hygiene. Degraded water quality and lack of hygiene contribute to about 88% of the deaths from diarrhoeal diseases. The high number of deaths are mostly witnessed in developing countries as compared to the developed economies. Along with the environmental hazards, disease outbreak results into extra municipal expenditures, thus restricting municipalities from investing in other civic amenities, further creating issues in the overall developmental process of any region or country. 

Increased globalization, surge in waste water volumes and depleting resources for fresh water have led to an increasing supply and demand gap for water globally. According to the United Nations, in 2013, an increase in water withdrawal from fresh water resources was expected to grow by 50% in developing countries, and 18% by developed countries in 2025.  It is also estimated that by 2025, approximately 1,800 million people will live in absolute water scarce region and approximately two thirds of the global population will dwell in water stress regions. Therefore, the need for water treatment has increased largely at the global scale.

The water treatment industry is expected to advance extensively due to a surge in waste water volumes, increasing water demand and stringent regulations among others in the developing and under developed economies. Existing players have an established platform for increased commercialization and business expansion across the various water infrastructure segments such as chemicals and equipment. The use of traditional water treatment methods is declining owing to the rapid industrial development and population growth. To meet the growing demand and sustain to the pace of the rapidly mounting market, major players in the water industry are emphasizing on producing innovative treatment products for local as well as the global market. Some of the key growth drivers for the water treatment chemicals market are declining freshwater availability, aging water infrastructure in the developed regions, and stringent regulations.

Financial barriers and lack of infrastructure for the solid waste management can be tackled by the involvement of private players. Thus, they have an immense opportunity to expand their business throughout the value chain. Numerous water treatment chemicals manufacturers are shifting their production bases to the developing countries in Asia Pacific because of low labor costs and the absence of stringent environmental regulations, which is future expected to drive the regional market. Several regulations, and investment cost are key factors attracting the companies to invest in the region. Moreover, companies are coming up with various sustainable options to treat water involving green chemistry.

The water treatment chemicals market is expected to grow from $XX billion in the year 2016 to $24.33 billion by 2021 at a CAGR of 5.3%. The high growth rate of the market is due to the increasing demand from high end sectors like oil & gas, pulp & paper, and mining industries. Additionally, high demand in the market is also aided by the burgeoning demand growth for biocides & disinfectants. During the forecast period, water treatment chemicals market is expected to witness growth backed by the rampant demand in the end uses and rising environment regulatory concerns.

The water treatment chemicals market encompasses a wide array of product type such as corrosion inhibitors, coagulants & flocculants, scale inhibitors, anti-foaming agents, biocides & disinfectants, and pH adjusters, among others. Coagulants & flocculants are majorly utilized in the treatment of municipal water, and in some industrial applications involving oils, and chemicals. Chemicals like anti-scalants, corrosion inhibitor, and biocides are predominantly used for circulating water in varied industries. Apart from these, anti-foaming agents, and chelating agents are also some of the important water treatment chemicals used in commercial as well as industrial processes. Corrosion inhibitors form a significant part in the water treatment in various end-user industries like oil & gas, power, and pulp & paper sectors. 

Water treatment chemicals have applications in a vast range of allied end markets including municipal, power, oil & gas, pulp & paper, chemical, food & beverage, and mining, among others. Key factors contributing to the growth in these end-markets are aging water infrastructure, drastic climatic conditions, rising demand supply gap, and rapid growth in urban population.

The trends of the water treatment chemicals market vary with different geographical regions. The water treatment chemicals market holds a prominent share in various countries of North America, Europe, Asia-Pacific (APAC) and Rest of the World (RoW). Presently, Asia Pacific is at the forefront of the water treatment chemicals market, with high market penetration in countries like China, Japan, South Korea and India, among others. During the forecast period, Asia Pacific region is expected to display the highest market growth from 2016 to 2021. Factors such as water scarcity, urban population growth in megacities and developing countries, and climatic change issues, among others, have triggered the demand for water treatment chemicals in the region.

Competitive Landscape

The competitive landscape for the water treatment chemicals market demonstrates an inclination towards companies adopting strategies such as product launch and development, and partnerships and collaborations. The major established players in the market are focusing on product launches and developments to introduce new technologies, or further enhance their existing product portfolio. Ecolab Inc., Kemira OYJ, Kurita Water Industries, BASF, K+S AG, Chembond Chemicals, Solenis, SNF Floeger, Buckman, Suez, Akzo Nobel N.V., and Organo Corporation, among others, are some of the prominent players in the water treatment chemicals market. The market is highly fragmented with the presence of a huge number of small-sized to medium-sized companies.  

The key players operating in this market have ramped up their product launch activities over the recent years, in order to generate public awareness about their existing and new products and technologies and compete with the competitors’ product portfolio. It has been the most widely adopted strategy by the players in this market. Driven by the rapid evolution of the water treatment chemicals industry, there has been a swift growth in the research and development activities by many important players in this market, leading to increased product launches during the last three years.