Global Desalination Market Size and Forecast 2025–2033

According to Renub Research Latest Report desalination market is projected to grow from USD 17.64 billion in 2024 to approximately USD 40.28 billion by 2033, representing a compound annual growth rate (CAGR) of 9.61% from 2025 to 2033. This rapid expansion is driven by escalating global water scarcity, rising demand for potable water, technological advancements in desalination, and significant government and private sector investments worldwide.

Global Desalination Market Overview

Desalination is the process of removing dissolved salts, minerals, and impurities from seawater, brackish water, or wastewater to produce fresh, potable water. The most widely used technologies include reverse osmosis (RO), which passes water through a semi-permeable membrane, and thermal desalination, such as multi-stage flash (MSF) and multi-effect distillation (MED), which rely on heating water to extract salts.

Desalination serves municipal, industrial, and agricultural needs, particularly in arid and semi-arid regions with limited freshwater resources. Nations like Saudi Arabia, UAE, and Israel rely heavily on desalination to meet water demands. Industrial applications include supplying water for oil and gas, power generation, and manufacturing, while agriculture benefits from desalinated water for irrigation in water-scarce zones. Desalination is increasingly recognized as a critical solution to global water challenges.

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Growth Drivers in the Global Desalination Market

1. Growing Water Scarcity

Population growth, urbanization, industrialization, and climate change have intensified water scarcity worldwide. Approximately four billion people experience severe water shortages for at least one month annually, and two billion people live in countries with inadequate water supply. By 2025, half of the global population may reside in water-stressed regions. By 2030, 700 million people could face displacement due to extreme water scarcity. By 2040, one in four children will live in regions with high water stress. Desalination offers a renewable and stable supply of freshwater, particularly in coastal and arid regions.

2. Technological Advancements

Technological innovations are making desalination more energy-efficient, cost-effective, and environmentally sustainable. Advances include:

Next-generation RO membranes reducing energy consumption

Energy recovery systems optimizing operational costs

Automation and digital twin solutions, improving plant efficiency and replicability

For example, in December 2023, Hexagon AB’s R-evolution initiative established a desalination program leveraging digital twin technology to enhance scalability and operational efficiency.

3. Government Initiatives and Investments

Governments worldwide are investing heavily in desalination to ensure water security. Initiatives include public-private partnerships, subsidies, and supportive policies. Key examples:

Saudi Arabia (Sep 2023): Launch of a Global Water Organization with over USD 6 billion invested in water and sanitation projects.

Saudi Arabia (Apr 2022): Cloud seeding projects as a sustainable alternative to energy-intensive desalination.

Middle Eastern, North African, and Asia-Pacific countries are leading the expansion of desalination capacity due to strategic government efforts.

Challenges in the Desalination Market

1. High Energy Consumption and Costs

Desalination remains energy-intensive, particularly thermal processes, accounting for a significant portion of operational costs. While RO and advanced technologies have reduced energy requirements, installation and maintenance costs are still high, especially in low-income nations.

2. Environmental Impact

Desalination generates brine waste, which can harm marine ecosystems. Additionally, energy use contributes to carbon emissions, creating a balance challenge between freshwater supply and environmental sustainability. Innovations and regulations are critical to mitigate ecological effects.

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Market Segmentation

By Technology

Reverse Osmosis (RO): Most widely used due to energy efficiency and cost-effectiveness; market growth fueled by new membrane technologies.

Multi-Stage Flash (MSF) Distillation: Thermal process used in large-scale municipal and industrial applications.

Multi-Effect Distillation (MED): Advanced thermal technology improving efficiency and reducing energy use.

Others: Includes electrodialysis, nanofiltration, and hybrid technologies.

By Application

Municipal: Large-scale plants supplying drinking water to urban areas; critical in water-scarce regions.

Industrial: Provides industries such as petrochemical, manufacturing, and power generation with a reliable water supply.

Others: Includes agriculture, tourism, and niche industrial applications.

By Water Source

Seawater: Dominates the market due to abundance; increasingly energy-efficient with RO and MED technology.

Brackish Water: Found in estuaries and inland areas; treated using RO and nanofiltration.

River Water: Emerging segment using filtration and RO to produce potable and industrial water.

Others: Includes wastewater and reclaimed water applications.

By Country/Region

North America: United States, Canada – Focus on advanced RO technologies and integration of renewable energy.

Europe: Germany, France, Italy, Spain, UK, Belgium, Netherlands, Turkey – Industrial desalination with emphasis on energy efficiency and eco-friendly solutions.

Asia Pacific: China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, New Zealand – Rapid growth due to urbanization and government investment.

Latin America: Brazil, Mexico, Argentina – Expanding desalination projects to address freshwater scarcity.

Middle East & Africa: UAE, Saudi Arabia, South Africa – Leading desalination adoption with large-scale seawater plants and renewable energy integration.

Regional Market Insights

United States

The U.S. desalination market is growing in Arizona, Texas, and California, driven by urban water scarcity. Investments in RO and renewable energy integration, along with federal and private sector support, are propelling sustainable water supply solutions. For instance, Kubota Corporation (Nov 2024) invested in OceanWell Co., a startup developing deep-sea desalination technology in California.

Germany

Germany emphasizes industrial desalination, focusing on chemical and manufacturing sectors. Investments in R&D enhance desalination efficiency and sustainability. In Oct 2023, Boreal Light completed Europe’s largest solar desalination system in Mykolaiv, Ukraine, producing 125 cubic meters of clean water per hour.

China

China’s desalination industry is expanding due to urbanization and water scarcity. Coastal seawater plants and technological collaborations with global players enhance capacity. In May 2024, Veolia opened its first ion exchange regeneration plant, recycling spent resins to improve sustainability.

UAE

The UAE is the global leader in desalination, integrating solar power and energy-efficient technologies. The Hassyan seawater desalination plant in Dubai (May 2024) will be the second largest RO plant globally, fully powered by solar energy, exemplifying long-term water security initiatives.

Market Outlook

The global desalination market is expected to witness robust growth driven by:

Rising water scarcity and demand for potable water

Technological advancements reducing energy consumption and operational costs

Government initiatives and public-private partnerships supporting infrastructure

Growing industrial and municipal requirements for sustainable water solutions

Despite challenges such as high energy costs and environmental concerns, the market’s innovative technologies and strategic investments are likely to ensure sustained growth through 2033.

Key Players in the Global Desalination Market

Acciona

Dow

Evoqua Water Technologies

Siemens AG

DuPont

Doosan Enerbility

Toray Industries, Inc.

Xylem

These companies are focusing on R&D, sustainable desalination technologies, global expansion, and strategic collaborations to address increasing water demands efficiently and sustainably.

Conclusion

Desalination is emerging as a critical solution to global water scarcity, addressing municipal, industrial, and agricultural demands. While challenges such as energy intensity and environmental impact remain, technological innovations, government investments, and strategic public-private partnerships are propelling market growth. With rising water stress projected worldwide, desalination is positioned to play an essential role in ensuring sustainable water security through 2033.

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