Trends and Key Player Analysis in the Global Desalination and Water Treatment Infrastructure Industry

Industry Overview

The global desalination and water treatment infrastructure industry continues to experience sustained growth and technological innovation against the backdrop of global water scarcity, climate change, urbanization, and industrialization. This industry covers a diverse range of applications, including the supply of drinking and industrial water, sewage and wastewater treatment, water reuse, and desalination, serving as the foundation of social infrastructure. Water treatment refers to a series of processes that remove impurities and harmful substances from water and adjust its quality according to its intended use, and is categorized into segments such as water purification, sewage treatment, reuse, and desalination.
The global water treatment market is projected to reach approximately 84.78 billion USD by 2026 and 127.5 billion USD by 2032, with a compound annual growth rate (CAGR) of 6.96%. The desalination market is expected to expand to 22.65 billion USD in 2026 and 41.55 billion USD by 2032, with a high projected CAGR of 10.64%. Demand growth is particularly notable in the Middle East and North Africa (MENA) and the Asia-Pacific region. The industrial water treatment market is also growing steadily, reaching 51 billion USD in 2026 and 83.8 billion USD by 2036, with a CAGR of 5.1%.

The value chain is broadly divided into strategy formulation (management and business planning), planning and construction (EPC: Engineering, Procurement, and Construction; O&M: Operation and Maintenance; finance), and maintenance (operation and management). Diverse service models such as EPC, O&M, PPP (Public-Private Partnership), and concessions (granting of long-term operating rights) are being deployed, with the weight of PPP and O&M increasing in recent years. In particular, the ability to provide total solutions from facility design and construction to after-sales service is the key to securing profitability.

Regarding service trends, there is a shift from the traditional equipment supply model to comprehensive water management services, performance-based contracts, and digital monitoring and optimization services. The digital water sector, which utilizes AI, IoT, and digital twins for operational optimization, remote monitoring, and predictive maintenance, is growing rapidly, contributing to energy efficiency, labor savings, and reduced operating costs.

Technology Trends

Membrane Technology (RO, LSRRO)

Reverse Osmosis (RO) is the mainstream technology for current seawater desalination and advanced water treatment. Thin-film composite (TFC) polyamide membranes are the standard for RO, requiring a salt rejection rate of 99.5% or higher, high water permeability, chemical resistance, and anti-fouling properties. In recent years, the introduction of advanced materials such as nanomaterials, hydrophilic coatings, AI-assisted design, graphene, and MOFs (Metal-Organic Frameworks) has led to extended membrane life and reduced energy consumption. New technologies such as Low-Salinity RO (LSRRO) and high-pH RO have also emerged, contributing to improved recovery rates, scale inhibition, and reduced operating costs.

Thermal Methods (MSF, MED)

Multi-Stage Flash (MSF) and Multi-Effect Distillation (MED) are traditional thermal methods that have been adopted, particularly in large-scale plants in the Middle East. While MSF has high reliability and large-scale capacity, its high energy consumption and CO₂ emissions are challenges. MED operates at lower temperatures and with higher efficiency than MSF, and integration with waste heat utilization and renewable energy is progressing. In recent years, hybridization with RO and demonstrations of renewable energy-powered MED are also underway.

Electrochemical and MBR

Electrodialysis (ED) is particularly effective for low-salinity water and specific ion removal, and new technologies such as monovalent selective ED and Capacitive Deionization (CDI) have emerged in recent years. Membrane Bioreactor (MBR) technology is becoming widespread for advanced treatment and reuse of sewage and industrial wastewater, with progress in miniaturization and higher efficiency.

ZLD/MLD and Brine Management

Zero Liquid Discharge (ZLD) and Minimal Liquid Discharge (MLD) are attracting attention from the perspective of stricter wastewater regulations and water resource circulation. By combining RO, high-pH RO, evaporators, and crystallizers, recovery rates of over 90% and the conversion of solid salts into resources are possible. However, high energy consumption and costs, as well as trade-offs in waste management and GHG emissions, remain challenges. In recent years, progress has been made in AI-driven operational optimization, integration with renewable energy, waste heat utilization, and lithium and metal recovery technologies from brine.

Energy Recovery Devices (ERD) and Decarbonization

Approximately 40% of the energy consumption in RO plants is attributed to high-pressure pumps. Energy Recovery Devices (ERDs) such as pressure exchangers (PX), turbochargers, and Pelton turbines have been introduced, reducing energy consumption to 3–4.5 kWh per cubic meter. Integration with renewable energy (solar, wind, waste heat), AI-driven operational optimization, and visualization of carbon footprints are also progressing.

Digital Water and Operational Optimization

Operational optimization utilizing AI, IoT, and digital twins has been proven to reduce energy consumption by 30%, chemical costs by 20%, and CO₂ emissions by 25%. The adoption of smart water treatment, including real-time monitoring, predictive maintenance, remote operation, what-if analysis via simulation, and wide-area network optimization, is accelerating. Digital twins are also being used for operational simulation in virtual space, facility expansion planning, and operator training.

Cost Analysis

Cost Structure and Key Indicators

The costs of desalination and water treatment are composed of capital expenditure (CAPEX), operating expenditure (OPEX), energy costs, chemical and maintenance costs, and waste disposal costs. Key economic indicators used include the Levelized Cost of Water (LCOW), Specific Energy Consumption (SEC), and the Levelized Cost of Energy (LCOE) for ZLD.
For RO-based seawater desalination, the LCOW is typically 1 to 2 USD/m³, and energy consumption is generally 3 to 4.5 kWh/m³. MSF has high energy consumption at 10 to 16 kWh/m³ and tends to have higher costs. MED consumes 5 to 9 kWh/m³, and cost reductions are expected through the use of waste heat and integration with renewable energy. ZLD systems can achieve recovery rates of over 90%, but they have high energy consumption and costs, requiring optimal design based on application and regulatory requirements.
By application, municipal water supply accounts for the largest market, with diverse needs including industrial water (semiconductors, food, chemicals, power generation), agricultural water, on-site reuse (building and factory circulation), and high-purity water (semiconductors and pharmaceuticals). The cost of industrial water treatment varies significantly depending on the application, scale, and regulatory requirements, but long-term cost reductions are possible through the introduction of reuse and recycling.
Internationally, SDG 6 (ensuring availability and sustainable management of water and sanitation) has been set as a 2030 goal, but progress is currently significantly behind schedule, and investment levels six times higher than current levels are required. The World Bank, national governments, and the EPA (U.S. Environmental Protection Agency) are promoting funding and strengthening regulations, with the U.S. requiring over 630 billion USD in infrastructure investment over the next 20 years. Various financing methods such as green bonds, performance contracts, and PPP schemes are being utilized.
Environmental regulations are also being strengthened, with progress in marine discharge regulations, PFAS (per- and polyfluoroalkyl substances) regulations, waste management, and microplastic countermeasures being made in various countries. In Europe, China, and India, the mandatory reuse of industrial wastewater and the tightening of discharge standards are accelerating the adoption of ZLD/MLD technologies.

Past Restructuring and M&A Cases