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The global water treatment chemicals market stood at $44.7 billion in 2017 and is projected to reach $58.7 billion by 2023, registering 4.7% CAGR during the forecast period (2018–2023). Among all regions, Asia-Pacific (APAC) is expected to be the fastest-growing market, driven primarily by the growing population along with rapid urbanization and industrialization in China, India, and Southeast Asian countries.
Fundamentals Governing Water Treatment Chemicals Market
Chemical water treatment is majorly carried out by the flocculation method, in which a clarifying agent is used to remove suspended pollutant particles from water. However, new chemical-based water treatment methods are being developed that aim to enhance the efficiency of the treatment process. Besides, increased focus on research and development activities has resulted in the development of new water purification compounds, such as poly iron and zinc silicate sulfate (PFZSS) flocculants, aluminum sulfate, ferric sulfate, and sodium aluminate. These provide higher flock density and faster rate of sedimentation. Thus, the development of new chemical solutions for water treatment is a major trend witnessed in the water treatment chemicals market.
Rapid industrialization and urbanization across the world have resulted in the large-scale discharge of toxic pollutants into freshwater reserves, with major contributors being industrial plants, power plants, households, and commercial facilities. This has made water unfit for human consumption. As a result, countries are increasingly focusing on improving water quality by implementing a stringent regulatory framework that mandates the treatment of wastewater before it is discharged into water bodies. Thus, the increasing adoption of a regulatory framework mandating water treatment is expected to boost the water treatment chemicals market growth during the forecast period.
In recent years, countries such as India, China, Indonesia, and Thailand have witnessed rapid economic growth characterized by large-scale industrialization and construction, development of new power plants, and expansion of housing projects. However, this has also resulted in the release of pollutants in water bodies. Due to the growing concerns over water pollution in developing countries, the need for water treatment has increased more than ever. Thus, developing countries offer huge scope for the players operating in the water treatment chemicals market to address the growing demand for solutions for treating water.
Segmentation Analysis of Water Treatment Chemicals Market
Coagulants and flocculants accounted for the largest share in the water treatment chemicals market when the market was segmented on the basis of the type of chemical. The category accounted for around 30% market share in terms of both value and volume in 2017. This can be attributed to the high adoption of these chemicals for various applications, including water clarification, lime softening, solids removal, and sludge dewatering and thickening. Increasing application areas of these chemicals are further expected to boost the market growth in this category during the forecast period.
The water treatment chemicals market, during the forecast period, is projected to witness the fastest growth in the construction application, with around 6% CAGR in terms of both value and volume. This can be ascribed to the growing construction activities in developing countries, including India, China, and Brazil. Increasing construction of domestic and commercial buildings, industrial facilities, and infrastructural projects is expanding the scope for the adoption of chemicals for treating wastewater generated during construction activities.
Geographical Analysis of Water Treatment Chemicals Market
Globally, APAC generated the highest demand for water treatment chemicals in 2017. Moreover, it is expected to continue leading the market during the forecast period, registering a CAGR of 6.9% in terms of value. This can be majorly attributed to the region’s high demand for treated water for industrial applications and for potable water for drinking purposes. China and Japan account for the highest demand for chemicals for treating water in the region. China, being a manufacturing hub, is also among the largest contributors to water pollution in the world. In the past few years, the unchecked discharge of effluents from industries has deteriorated the quality of water in water bodies in major cities of the country. However, the government in the country is taking necessary steps by imposing strict rules on power plants, industries, and construction companies with respect to the treatment of water released by them during production activities.
Competitive Landscape of Water Treatment Chemicals Market
The global water treatment chemicals market is highly fragmented in nature, with top four market players accounting for a marginal 25% share in 2017. Key players involved in the manufacturing and sale of chemicals are BASF SE, Solenis LLC, Ecolab Inc., Kemira Oyj, SUEZ, SNF s.a.s., Akzo Nobel N. V., Lonza Group Ltd., Buckman Laboratories International Inc., and DowDuPont Inc.
Recent Strategic Developments of Major Market Players
In recent years, major players in the water treatment chemicals market have taken several strategic measures, such as product launches, business collaborations, and geographical expansions, to gain a competitive edge in the industry. For instance, BASF SE combined its paper and water chemical business with Solenis LLC in 2018 to utilize service capabilities of Solenis and vast product portfolio of BASF to serve customers in the water treatment industry better.
In addition, SUEZ was awarded a contract by the local water authority HAWASUCO1 for the supply of sanitation solutions to Vi Thanh, the capital of Vietnam's southern province of Hau Giang in 2018. The $11.2 million contract included the construction of a wastewater treatment plant and a sewerage network to improve the living standard of over 6,500 inhabitants and protect the Xang Xa No city canal from pollution.
Market Size Breakdown by Segment
The Water Treatment Chemicals Market report offers comprehensive market segmentation analysis along with market estimation for the period 2013–2023.
Based on Type
Based on Application
Key Questions Addressed in the Report