China Water Desalination Market Set to Reach $4.66 Billion by 2033 Amid Freshwater Shortages and Industrial Demand

Market Overview

According to Renub Research Latest Report China Water Desalination Market is expected to grow from US$ 1.84 billion in 2024 to US$ 4.66 billion by 2033, achieving a CAGR of 10.88% between 2025 and 2033.

Rising freshwater shortages, rapid industrialization, and government investment in desalination infrastructure are fueling market expansion. Advanced technologies, including reverse osmosis (RO), multi-stage flash (MSF) distillation, and electrodialysis, are enhancing efficiency and capacity to provide clean water for residential, industrial, and municipal use.

Desalinated water is increasingly vital for coastal cities, industrial hubs, and emergency water supply, helping China address both population growth and environmental pressures.

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Key Market Drivers

Severe Freshwater Shortages

Northern China faces acute water scarcity due to rapid urbanization, industrialization, and uneven rainfall distribution. Large-scale desalination plants are emerging as a strategic solution to ensure reliable water supply.

By 2050, over 3,000 sub-basins worldwide, including many in China, are projected to experience critical water stress, affecting billions. Desalination is emerging as a central pillar in national water security strategies.

Government Initiatives and Investments

China’s government is aggressively supporting desalination projects through subsidies, favorable policies, and strategic placement along the coast.

14th Five-Year Plan and the 2021 national action plan aim to boost desalination capacity to 3.5 million cubic meters/day by 2025.

Coastal provinces like Tianjin and Shandong are key hubs for large-scale plants, ensuring sustainable urban and industrial water supply.

Technological Innovations

Energy-efficient RO and hybrid desalination technologies are driving down operational costs and increasing efficiency.

In March 2025, ACWA Power opened an Innovation Centre in Shanghai focusing on photovoltaics, wind energy, green hydrogen, and seawater desalination, signaling a strong focus on sustainable and innovative water solutions.

Market Challenges

High Operating and Energy Costs

Despite technological advances, desalination remains energy-intensive, limiting adoption in inland cities and smaller municipalities due to high operational expenses.

Environmental Concerns

Desalination produces brine waste, threatening marine ecosystems if not managed responsibly. Strict environmental regulations require innovative and sustainable disposal solutions, particularly for coastal projects.

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Segment Analysis

Technology

Reverse Osmosis (RO): Dominates the market due to lower energy costs and high efficiency, particularly in coastal cities.

Multi-stage Flash (MSF) and Multi-effect Distillation (MED): Used in large-scale projects but more energy-intensive.

Application

Municipal: Coastal cities like Shanghai, Shenzhen, Tianjin rely on desalination to supplement drinking water for growing populations.

Industrial: Power plants, chemical facilities, and refineries increasingly depend on desalinated water to reduce freshwater reliance.

Water Source

Seawater: Largest segment, especially along China’s extensive coastline.

Brackish & River Water: Emerging in inland cities like Chengdu where salinity and pollution affect conventional water supplies.

City Insights

Shanghai: Critical hub using RO and hybrid systems for municipal water supply; hosts WATERTECH CHINA 2025, the largest international water solutions exhibition.

Beijing: Relies on brackish water and imported desalinated water to counter northern water scarcity.

Shenzhen: Expanding seawater desalination plants support its industrial and urban growth.

Chengdu: Focuses on brackish water desalination for industrial parks and high-tech industries.

Key Players

Major companies driving the China desalination market include:

Guangzhou KangYang Seawater Desalination Equipment Co.

Genesis Water Technologies

Biwater

Aquatics International

IDE Technologies

Acciona SA

SUEZ Environment

Veolia Environment SA

These companies are focusing on innovative, energy-efficient, and large-scale projects to meet growing urban and industrial water demands.

Future Outlook

China’s water desalination market is poised for rapid growth, driven by:

Acute freshwater shortages, especially in northern regions.

Government-backed expansion projects and favorable policies.

Technological innovations in RO and hybrid desalination systems.

Rising municipal and industrial water demand in coastal and inland regions.

Sustainability initiatives and environmental management strategies.

By 2033, desalination will be a key component of China’s water security strategy, ensuring stable water supply for urban centers, industries, and agriculture while supporting sustainable development.

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