Implementation of stringent government regulations, increasing desalination globally, and growing concerns of waterborne diseases drive the consumption of water treatment chemicals. Owing to such factors, the water treatment chemicals market is expected to reach $85,341.8 million by 2030, showcasing a CAGR of 5.2% during the forecast period (2020–2030).
The COVID-19 pandemic has offered the industry numerous opportunities for growth, with a surge in the consumption of chemicals for water treatment. Frequent hand hygiene is one of the most important measures to prevent the spread of novel coronavirus. Performing hand hygiene by following the right technique with soap and water is critical, hereby water disinfection and sanitation treatment are. It is essential to keep water supplies safe starting with protecting the source water and treating water at the point of distribution. This, in turn, is increasing the consumption of water treatment chemicals across the globe.
Coagulants and Flocculants to Generate the Highest Revenue
Based on type, the water treatment chemicals market is categorized into coagulants and flocculants, corrosion inhibitors, scale inhibitors, chelating agents, biocides and disinfectants, pH adjusters and stabilizers, anti-foaming agents, oxygen scavengers, oxidants, and others. Among these, the coagulants and flocculants category generated the highest revenue in 2019, and the trend is projected to continue during the forecast period. This is primarily ascribed to the ability of coagulants and flocculants to remove solids and purify untreated water. Owing to this, the consumption of coagulants and flocculants is expected to increase, which, in turn, would boost the water treatment chemicals market during the forecast period.
On the basis of application, the market is classified into raw water treatment, water desalination, cooling, boiler, effluent water treatment, and others. Of these, the raw water treatment category accounted for the highest consumption in 2019. Raw water treatment includes treatment of water from infiltration wells, and from water bodies such as seas, rivers, and lakes, as well as groundwater and rainwater. With increasing need to suffice the water demand, consumption of chemicals for raw water treatment is witnessing a high demand, and the trend is likely to continue in the coming years.
Geographically, the water treatment chemicals market in APAC is expected to witness the fastest growth primarily on account of the presence of large industrial base in developing countries of the region, which include China, India, Thailand, and Indonesia. Governments in these countries have started implementing a strong focus on water treatment with growing consciousness regarding diseases caused by untreated water as well as need to preserve fresh water.
Mergers and Acquisitions Being Adopted as a Key Strategy in the Market
Players operating in the water treatment chemicals market are heavily engaging themselves in strategic mergers and acquisitions of companies in order to strengthen their water treatment business portfolio. For instance, in February 2019, Platinum Equity Advisors LLC completed the acquisition of Lonza Group Ltd. water care business, a deal worth $630 million. The company operates six production facilities under water care business providing water treatment solutions.
Additionally, in August 2018, WCS Group acquired assets of SUEZ Water Conditioning Services (WCS) UK and also incorporated B&V Water and Sentinel Water. WCS Group is the water treatment division of Marlowe plc.
Kemira Oyj, BASF SE, SUEZ, Solenis LLC, SNF s.a.s., Ecolab Inc., Akzo Nobel N.V., Buckman Laboratories International Inc., Solvay S.A., and The Dow Chemical Company are some of the key players operating in the global water treatment chemicals market.