Global Desalination Market Trends & Summary

Freshwater scarcity has fast become one of the most urgent environmental and humanitarian issues of the 21st century. As climate change intensifies droughts, populations rise, and industrial demand expands, millions of people are facing growing challenges in securing clean, drinkable water. It is within this global crisis that the desalination market emerges as one of the most critical and fast-growing sectors of the water industry.

According to Renub Research, the global desalination market is projected to grow from US$ 17.64 billion in 2024 to nearly US$ 40.28 billion by 2033, expanding at an impressive CAGR of 9.61% between 2025 and 2033. Driven by technological advancements, government initiatives, and an urgent need for drought-proof water supplies, desalination is becoming an indispensable pillar of global water security.

This report breaks down the market by technology, application, region, and company performance to provide a comprehensive understanding of where the industry stands today—and where it’s headed.

Global Water Desalination Market Overview

Desalination is the process of removing dissolved salts, minerals, and contaminants from seawater, brackish water, or wastewater to produce fresh, potable water. The two dominant technologies powering the industry today are:

Reverse Osmosis (RO) – uses semi-permeable membranes to remove salts

Thermal Desalination – includes Multi-Stage Flash (MSF) and Multi-Effect Distillation (MED), where heat is used to evaporate and condense freshwater

While desalination has existed for decades, it has evolved into an economic and technological lifeline for regions with limited freshwater resources.

Countries like Saudi Arabia, the UAE, Israel, Australia, and Singapore rely heavily on desalination to meet municipal water needs. Meanwhile, industrial sectors — particularly oil & gas, manufacturing, and power generation — depend on desalinated water to maintain operations when traditional water sources fall short.

As worldwide water stress intensifies, desalination is no longer a choice; it is a necessity for millions.

Key Growth Drivers for the Global Desalination Market

1. Growing Water Scarcity

Water scarcity remains the single largest driver of the global desalination market. Population growth, climate change, and rapid industrialization are stressing existing surface and groundwater resources.

Key global water facts:

Nearly 4 billion people — two-thirds of the global population — face severe water scarcity at least once per year.

Over 2 billion people live in countries with inadequate water supply.

By 2025, half of the world’s population will live in water-stressed regions.

By 2030, up to 700 million people could be displaced due to extreme water shortages.

By 2040, 1 in 4 children will live in areas with extremely high water stress.

Desalination directly responds to this crisis by creating new, reliable water supplies independent of rainfall or depleted freshwater resources.

2. Technological Advancements in Desalination

Breakthroughs in membrane science, automation, and energy recovery systems are redefining what desalination can achieve. Technologies like next-generation RO membranes, nanofiltration, and smart digital monitoring systems have significantly improved efficiency and reduced operating costs.

Notable industry development:

December 2023 – R-evolution (Hexagon AB) announced a global desalination program utilizing digital twin technologies to improve efficiency and scalability in desalination plants.

These innovations allow desalination plants to operate with lower energy consumption, reduced maintenance, and improved sustainability—critical for long-term growth.

3. Government Initiatives and Infrastructure Investments

Governments across the Middle East, Asia-Pacific, and North America are investing heavily in desalination as part of national water security strategies. Policy support, public-private partnerships (PPPs), subsidies, and regulatory frameworks continue to accelerate plant construction.

Recent government actions:

September 2023 – Saudi Arabia established a Global Water Organization in Riyadh to strengthen global water security initiatives and invest in major projects worldwide.

April 2022 – Saudi Arabia launched a large-scale cloud seeding initiative to diversify water sources and reduce reliance on energy-intensive desalination.

These programs ensure long-term capital flow into desalination infrastructure.

Challenges in the Desalination Market

1. High Energy Consumption & Operational Costs

Despite improvements, desalination remains an energy-intensive process. Energy costs account for a major part of total plant operations, making the technology expensive for low-income nations.

Non-renewable energy use amplifies carbon emissions, complicating environmental sustainability goals.

2. Environmental Concerns

Desalination waste brine — highly concentrated saltwater — poses a threat to marine ecosystems when improperly discharged. Additionally, energy consumption increases carbon footprints.

Balancing water production needs with ecological responsibility remains a major challenge for the industry.

Market Segment Insights

Reverse Osmosis (RO) – The Market Leader

RO dominates the global desalination market due to its:

lower energy requirements

cost-effectiveness

continual improvements in membrane efficiency

RO systems are used widely for municipal and industrial applications. As research and development continue to optimize energy use and scale-up capabilities, RO’s dominance is expected to strengthen in the years ahead.

Municipal Desalination Market

With rapid urbanization and expanding populations, municipalities remain the largest consumers of desalinated water. Governments are investing in large-scale plants to ensure stable water supplies for households, cities, and public infrastructure.

Regions like the Middle East, Asia-Pacific, and the southwestern United States are leading municipal desalination adoption.

Industrial Desalination Market

Industries such as:

manufacturing

petrochemicals

oil & gas

power generation

rely on large volumes of purified water. With greater sustainability expectations and tighter water regulations, industrial desalination is becoming central to environmental compliance and resource planning.

Energy recovery and modular plant designs are accelerating adoption.

Seawater Desalination Market

Seawater desalination remains the largest water-source segment, dominated by countries with long coastlines and limited freshwater reserves. Advanced RO and MED technologies are making seawater conversion more energy-efficient and environmentally friendly.

Leading adopters include the UAE, Saudi Arabia, China, and Australia.

River and Brackish Water Desalination

River and brackish water desalination is gaining traction in agriculture, industry, and inland municipal applications. This segment benefits from:

lower salinity levels

reduced energy requirements

growing demand for treated water for irrigation and processing

Technologies like nanofiltration and RO continue to power this segment.

Regional Market Highlights

United States

Water stress in states like California, Arizona, and Texas is accelerating desalination adoption. The U.S. is prioritizing RO and renewable-powered desalination technology.

Recent development:

Nov 2024 – Kubota Corporation invested in OceanWell, a California-based startup pioneering deep-sea desalination.

Germany

Germany’s desalination market is driven primarily by industrial demand and sustainability goals. The nation is investing heavily in green desalination technologies.

Recent development:

Oct 2023 – Boreal Light completed Europe’s largest solar desalination system in Mykolaiv, Ukraine, producing 125 m³ of water per hour.

China

China's rapid urbanization and water scarcity are pushing large-scale desalination growth. Coastal cities are leading adoption, supported by strong government funding.

Recent development:

May 2024 – Veolia opened its first ion exchange regeneration plant in China, improving resource efficiency and water sustainability.

United Arab Emirates

The UAE is a global leader in desalination, continually building some of the world’s largest and most energy-efficient plants.

Recent development:

May 2024 – Veolia announced it will design the technology for the Hassyan RO desalination plant in Dubai, set to become the world’s largest solar-powered RO facility.

Desalination Market Segments

Technology: Reverse Osmosis, MSF Distillation, MED Distillation, Others

Application: Municipal, Industrial, Others

Water Source: Seawater, Brackish Water, River Water, Others

Regions Covered: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

Key Players Covered

Acciona

Dow

Evoqua Water Technologies

Siemens AG

DuPont

Doosan Enerbility

Toray Industries, Inc.

Xylem

Each company has been analyzed from four perspectives: overview, key persons, recent developments, and financial insights.

Final Thoughts

The global desalination market is experiencing a profound transformation driven by a perfect storm of climate stress, population growth, and technological advancement. As freshwater sources continue to deplete, desalination is evolving from an optional capability to a foundational necessity for national water security.

With governments, industries, and technology innovators committing substantial investment to sustainable water technologies, the sector is expected to show rapid expansion through 2033. Desalination's shift toward renewable energy integration and eco-friendly solutions will further solidify its role as a cornerstone of future water infrastructure.

In a world where demand for clean water will only rise, the desalination market is not just growing — it is becoming essential for humanity’s survival.