Water Crisis: An Issue that can No Longer be Overlooked
Water scarcity and water stress are already affecting every part of the world, creating wider opportunities for the global water treatment chemicals market. The UN states, by 2050 around 1.8 billion people are likely to be living in regions with absolute water scarcity and 2/3rd of the global population possibly be living under water-stressed conditions.
With these glaring statistics, rapid urbanization, and growing industrial activities demand water, potable and non-potable, has surpassed the supply. Hence, a wide range of water treatment chemicals is required to make water acceptable for drinking, irrigation, and industrial usage. The widening gap between supply-demand necessitates recycling, reuse, and the right treatment of water to tackle water scarcity issues.
Biocides and Scale and Corrosion Inhibitors to Remain Popular as Uses Cover Wider Treatments
Coagulants and flocculants lead the water treatment chemicals market and accounted for more than 1/3rd of the total consumption in 2018. Biocides and scale & corrosion inhibitors are also among sought-after treatment chemicals and are projected to obtain significant revenue growth over the coming years. Scale & corrosion chemicals prevent or delays scale formation thus, protecting the cooling systems from metallic corrosions and scale build-up. Biocide chemicals aids in controlling microbial growth, which otherwise can have hazardous implications on the environment as well as human health. They are also preferred chemicals to remove odour and bad taste from water.
Asia Pacific to Lead Global Water Treatment Chemicals Market as Emerging Economies See Rapid Industrialization
Asia Pacific was the leading region in terms of consumption in 2018. There is still a dearth of quality and reliable water supply in a large section of rural areas in China, India, and Southeast Asia. Additionally, rapid industrialization and growth in the urban population have resulted in a surge in demand for clean water in these countries. Governments in Asia Pacific region are investing in improving the water infrastructure and maintaining quality supply. This is projected to offer ample growth opportunities for water treatment chemicals over the coming years. In contrast, North America and Europe are expected to witness sluggish growth owing to the stringent environmental regulations related to dosage levels and rising treatment costs.
Oil & Gas, Power Generation, and Mining Continue to be the Leading End-users
Oil & gas, power generation, food & beverages, textile, and mining are water-intensive industries. The industrial sector consumes around 20% of the total freshwater withdrawals. These industries generate a large amount of wastewater, which demands it to be treated before being discharged. Growing energy demand and burst in membrane usage from the mining industry are expected to up the demand for water treatment chemicals.
Municipal is another major sector that uses water treatment chemicals. These chemicals are used to treat drinking as well as wastewater generated through routine activities. Increasing requirement of clean and quality water supply is a growth determining factor for water treatment chemicals in municipal and commercial sectors.
Will Increase in Water Treatment Equipment Supplement Growth for Chemicals?
In the past decade, the water treatment industry has observed dynamic changes and is looking for alternatives to traditional treatment methods. The use of filtration membranes is on the rise across all the end-use industries. Water treatment chemicals are also used for pretreatment in these filtration membrane systems. These chemicals are used to remove free chlorine from the feedwaters. Besides, they also aid in improving the efficiency and productivity of the membranes. Few of these chemicals prolong the life of membrane systems. Scale and corrosion inhibitors, pH adjusters, and defoamers are a few of the widely used chemicals in the pretreatment process. Increasing usage of water treatment filtration and treatment equipment is anticipated to support the growth of water treatment chemicals.
Regulatory Pressure and Rising Environmental Concerns Affecting Profitability of Manufacturers
The technologies in water treatment chemicals are constantly changing due to rising health and environmental concerns. Developed economies have stringent regulations for the treatment of wastewater (municipal as well as industrial). EU and other regulatory authorities have set chemical parameters for water treatment and have set parameters and standards for quality water supply.
In 2020, the EU adopted the revised Drinking Water Directive, which ensures safe and clean water for human consumption inside all EU member states. As companies comply with these regulatory changes, it is expected to affect their profitability.
Companies are launching new products that can meet extreme conditions, especially risky chemistries in the mining industry. In 2020, Genesys (a subsidiary of H2O Innovation Inc.), launched an anti-scalant and cleaner product designed specifically for water treatment in the mining industry. The product is highly versatile and can operate at extreme pH levels (acidic or alkaline). This launch is expected to offer a significant advantage to Genesys in the novel and fast-growing mining industry.