The increase in population and the industrial activities are driving the demand for clean and fresh water.
The demand is also influenced by various factors such as water availability, its usage pattern, the presence of pollutants, government policies, and trade-offs among various chemical compounds.
Stringent regulations concerning the emission and treatment of industrial wastes coupled with depleting freshwater resources are the factors that are driving the market. However, shifting demand for alternative and environment-friendly water treatment technologies is affecting the market growth.
In addition, the growing industrialization and increasing demand for specific formulations are providing opportunities for the market players. However, chemical manufacturers are facing challenges because of the need for eco-friendly formulations.
Due to the COVID-19 pandemic, the economic growth of several countries had declined owing to the suspension of the manufacturing facilities, declining demand for oil and gas and industrial products, and disruption of supply chains.
The demand for industrial wastewater treatment chemicals decreased in several end-use industries in 2020. There is a rise in the prices of synthetic and bio-based chemicals due to short supply and restricted imports, which is expected to increase the cost of water treatment technologies and chemicals in the near future. The price hike will be passed on as the hike is steep.
Effectiveness of Biocides & Disinfectants
Biocides and disinfectants is the largest segment by type for the Industrial wastewater treatment chemicals market.
Biocides are chemicals designed to eliminate all sizes and life stages of organisms present in the water. The effectiveness of biocides varies with the concentration of the chemical and duration of exposure.
Biocides are mainly used in drinking water treatment, sewage treatment, ship ballast treatment, and as antifouling agents. Biocides are manufactured in liquid and powder forms, in ready-to-use formulations or as concentrates, and are applied using a variety of techniques.
Growing populations and the increasing rate of urbanization mandate increased potable water requirements, which is a major driver for the biocides and disinfectants segment.
Power Generation & Wastewater Treatment Chemicals
Power generation sector is the largest segment by end-use industry for the Industrial wastewater treatment chemicals market. The power sector uses industrial wastewater treatment chemicals mainly for treating boiler feed water, boiler makeup water, and cooling water.
North America accounts for the largest share in the industrial wastewater treatment chemicals market for the power generation industry. Middle East and Africa are the fastest-growing market shares in that same market. In the future, increased investments by major utilities, new technological developments in the renewable sector, and improved government regulations are expected to boost the power sector growth, thereby increasing demand for industrial wastewater treatment chemicals.
North America accounted for the largest share of the Industrial wastewater treatment chemicals market in 2020, followed by Europe and APAC. North America has certain advantages over other regions such as cost-efficient processes for chemical water treatment, rising population, and increasing awareness among people for clean water. The major end users of industrial wastewater treatment chemicals in North America are power, pharmaceuticals, municipal, pulp and paper, food and beverage, oil and gas, and refineries sectors.
The U.S. dominates the industrial wastewater treatment chemicals market in North America in terms of value and volume. Oil, gas and power are some of the most vital end users in the U.S. and Canada. Mexico, on the other hand, is an emerging nation, and the scope of oil production and water treatment activities is high. As such, the growth prospect for the industrial wastewater treatment chemicals market in Mexico is high.
Leading Industrial Wastewater Treatment Chemicals Suppliers
The leading players in the Industrial wastewater treatment chemicals market are BASF SE (Germany), Ecolab Inc. (U.S.), Kemira Oyj (Finland), Suez SA (France), Veolia Group (France), Lonza Group Ltd. (Switzerland), Kurita Water Industries Ltd. (Japan), Thermax Limited (India), Baker Hughes Inc. (U.S.), Akzo Nobel N.V. (Netherlands), Dow Inc. (U.S.), and SNF Floerger (France).
These companies have adopted various organic as well as inorganic growth strategies between 2018 and 2021 to strengthen their positions in the market.
New product developments, mergers and acquisitions, and expansions were among the key growth strategies adopted by these players to enhance their product offerings and regional presence while meeting the growing demand for the Industrial wastewater treatment chemicals in the emerging economies.
Developments in the Industrial Wastewater Treatment Chemicals Market
- Suez Group inaugurated “Kelani riverbank,” a wastewater treatment plant in Colombo, Sri Lanka.
- Suez acquired Heritage Hills Water & Sewer Systems in New York to serve industrial and municipal customers through its owned and operated water treatment system. The deal size was $1.4 million.
- Suez and Schneider Electric formed a joint venture for a software solution for the optimization of water treatment infrastructure.
- Suez and Dijon Metropole partnered to create the first multi-service public company with single operations called Odivea, which is a public water and wastewater service in France.
- Ecolab acquired Purolite for $3.7 billion. Purolite is a high-value separation and purification life science solution provider. The deal provides another strong and adjacent global growth platform within Ecolab with double-digit growth prospects in both life sciences and industrial markets.
- Kemira opened its new APAC R&D center in Pujiang Town, Shanghai, China, to meet rapidly growing market demand and to accelerate efforts to develop renewable, biodegradable, and recyclable products in the region.
- Ecolab Inc. launched flotation 360 under its Nalco water segment, specifically targeting mining and mineral processing.
Solar Cell Manufacturing Example
A solar cell manufacturer was faced with an ultra-pure water requirement for use in solar photovoltaic device washing. UPW is also required in semiconductor and pharmaceutical industries for proper and effective production of products.
Thermax offered ultra-pure water grade resin to meet the standards for water purity in semiconductor and solar cell manufacturing. The Tulsion grade resins were used to produce UPW for these facilities, resulting in supply provided to a photovaltaic cells manufacturer. The manufacturer was satisfied with the performance of the resins for its application.