Produced Water Treatment Market Size, Share & Growth | 2031

Report Description

Produced Water Treatment Market Outlook 2031:

The global produced water treatment market size was valued at USD 9.81 Billion in 2022 and is projected to reach USD 15.88 Billion by 2031, expanding at a CAGR of 5.5% during the forecast period 2023 - 2031. The market growth is attributed to the rising need to recycle resources and strict environmental regulations implemented by various governments across the world.

Produced water is the naturally occurring water byproduct while the extraction of oil and natural gas from the rocks or wells. Most of the oil and gas reserves contain water in them. Almost every oil and gas extraction produces some amount of water. However, the volume of water generated can vary based on the location and the lifespan of the oil & gas well.

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The oil and gas industry produces the largest volume of produced water. This water contains elements such as pollutants, heavy metals, and petroleum hydrocarbons. Furthermore, industrial manufacturing and processing activities are rising across the globe owing to this there is a significant rise in produced water. As environmental protection has become highly important, it has become essential to perform various treatments on the produced water to make it reusable.

There are different methods through which the treatment of produced water can be done. These methods are of three types physical, biological, and chemical. The physical water treatment method involves membrane filtration and absorption and the biological method includes biological aerated filters, activated sludge, and others. While the chemical method involves precipitation and oxidation processes.

The recycling of produced water makes it usable for various operations. Additionally, the processes help in reducing water pollution and preventing the release of harmful chemicals into nature. Since the water is recycled it does not need to be transported to another location for disposal. In fact, it can be used for several procedures such as agricultural irrigation, industrial reuse, livestock watering, habitat, and wildlife watering.

The produced water treatment systems help companies in oil & gas industrial power generation and others in saving costs and improving their sustainability efforts, which is a highly demanded aspect in the current times.

COVID-19 Impact on Produced Water Treatment Market

The report provides produced water treatment market overview in detail. The market report finds that the COVID-19 pandemic hampered the growth of the market due to the slowdown in demand for oil and gas during the time.

The lockdown regulations and the slowdown in industrial activities declined the demand for produced water treatment systems in different regions across the globe.

In addition, the shortage of workforce due to the physical distancing measures reduced the manufacturing activities across the sectors, which also impacted the water treatment demand in the market. However, the resumption of normal operations in different industries, post the wide vaccination has shown positive signs for market growth.

Produced Water Treatment Market Dynamics

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global produced water treatment market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.

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Key Trends

Rising Oil & Gas Activities

According to the recent statistics published by Statista, worldwide oil production counted 89.9 Barrels each day in 2021. While the production of natural gas amounted to around 4.04 Trillion cubic meters in 2021. The increase in oil and gas activities is owing to the rising demand for oil and gas in different industries as well as for transportation purposes.

Nations around the world are increasing oil and gas activities to make themselves self-dependable in terms of energy needs. Emerging economies such as India, China, and others in South Asia are trying to be self-reliant for their energy requirements.

Several countries are also exploring new locations for oil and gas reserves, creating crude oil reserves. Private companies in these regions are focused on exploring new ways for extraction, processing, and supply of oil and gas.

Such a rise in production and processing activities for oil and gas reserves across the globe is expected to boost the market growth in the coming years.

Strict Government Regulations to Protect the Environment

The preservation and cleanliness of ecological resources have become highly important due to the rising global warming, flooding, pollution, and other climate factors. Worldwide environmental organizations are pushing governments from various countries to form and implement strict regulations and guidelines to protect and preserve resources.

The strict regulations by various governments to protect environmental resources are driving various corporations to follow various measures to ensure sustainability in operations.

Different companies are focused on increasing the recycling and renewability of utilized resources or extracted resources such as water byproducts in their operations.

As the produced water volume is high in power generation and in the oil & gas industry, the demand for water treatment is also going up. The recycling and reuse of produced water are expected to aid global companies in improving sustainability efforts.

Drivers

Growing Issue of Fresh Water Scarcity

Fresh water availability is not in similar proportion across the worldwide regions. The lack of fresh water in large volumes results in the obligation to use available water resources in a careful manner. The produced water provides an alternative option to recycle the water and use it as fresh water for various purposes.

Produced water can be used for cleaning, agricultural, wildlife requirements, and industrial needs, among others. As the water shortage issue is growing across the globe, the need for water treatment is consistently growing, which is expected to drive produced water treatment market growth.

Increasing Incidences of Water-borne Diseases

As water is considered a most important resource for human survival, ensuring its safety is highly important. The produced water contains harmful substances in it and can cause various diseases in humans and animals if come in direct contact.

As the incidences of water-borne diseases are increasing, companies are ensuring to perform various treatments on produced water to make sure it is safe for living beings.

Different treatments such as biological, physical, or chemical help in making produced water safe for use, which is expected to fuel the demand growth for produced water treatment systems in the coming years.

Restraints

Emerging Clean Energy Alternatives to Oil & Gas

The reduced dependence on oil and gas is expected to restrain the market growth during the forecast period. Dependence on oil and gas means more carbon emissions into the environment. Alternative energy solutions for oil and gas are coming up, which is expected to decrease the extraction of oil and gas, resulting in a decline in the volume of produced water output.

Various governments and organizations around the world are focused on reducing carbon emissions.  Renewable energy solutions such as electric vehicles, solar energy, and other clean energy sources are emerging, which is anticipated to decline in demand for oil and gas, resulting in restraining the demand for produced water treatment from oil and gas companies.

Opportunities

Development of Advanced Water Treatment Techniques

The development of advanced techniques for the treatment of produced water is expected to create lucrative opportunities for key players in the market. The energy requirements of the world are rising, owing to the increasing population and high dependence on energy products. As the major energy suppliers, oil and gas companies have to consistently produce higher outputs, resulting in more extraction of produced water.

The oil and gas industries, energy sector, and others have a large stream of produced water as a waste material, The development of innovative techniques such as the dissolve air floatation (DAF) is gaining popularity in the treatment of produced water.

DAF is a well-known alternative clarification process for treating industrial waste water with lighter particles such as color-causing organics or algae. Several key players in the oil and gas industry are focused on adopting DAF and other innovative water treatment processes to enhance the results.

Scope of Produced Water Treatment Market Report

The global produced water treatment market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Produced Water Treatment Market Segment Insights

What are Main Aspects that Boost the Reverse Osmosis/Membrane Treatment Segment?

Based on type, the global produced water treatment market is divided into chemical treatment, physical treatment, biological treatment, reverse osmosis/membrane treatment, combined systems, and others.

The reverse osmosis/membrane treatment segment is expected to expand at a significant growth rate during the forecast period. Reverse osmosis (RO) or membrane treatment enables the highest degree of produced water purification, which is expected to boost its demand in the global market.

The RO treatment is a pressure-driven procedure for separating elements from water. It employs the principles of crossflow filtration and semipermeable membrane for the separation process. The demand for membrane water and wastewater treatment (WWT) is rising across industries owing to increased industrial operations to meet the growing consumer demands for various products.

The RO process is a well-known and highly sought water purifier technology. It enables the finest level of water filtration as it is highly effective in eliminating various contaminants from the water.

Combined systems segment is also expected to hold a key share in the market, owing to the rising development of advanced techniques to effectively separate pollutant particles from the produced water.

As there are strict regulations to recycle industrial wastewater, sustainable and advanced techniques are preferred, which is expected to fuel the demand for combined water treatment systems in the coming years.

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Which Major Factors influence the Substantial Growth of the Tertiary Treatment Segment?

On the basis of service, the global market is segregated into primary treatment, secondary treatment, and tertiary treatment. The tertiary treatment segment is projected to register a considerable CAGR during the projection period.  

The tertiary treatment segment growth is attributed to the growing preference for advanced water treatment technologies across the oil and gas industries. The tertiary treatment service includes coagulation and reverse osmosis, which facilitates the maximum levels of water filtration, making it safer for reuse and can even be used as drinking water.

The secondary treatment segment is also expected to witness significant market growth during the forecast period, owing to highly effective ways to remove dissolved components from the produced water.

The secondary treatment combines various treatment procedures such as the floatation method, biological process as well as membrane treatment. The secondary treatment of produced water eliminates organic compounds and suspended solids.

Why is Onshore Segment More Prevalent than the Offshore Segment?

Based on application, the global produced water treatment market is bifurcated into onshore and offshore. The onshore segment held the key share of the market in 2021 and is expected to expand at a substantial growth rate during the forecast period.

The onshore segment growth is attributed to the high demand for onshore produced water solutions from rising oil & gas projects. The onshore solutions are highly cost effective and less complex as compared to offshore solutions.

The onshore water treatment also provides an alternative to reinject the produced water to extract maximum oil and gas from it. Furthermore, the treated water then can be reused for various civil purposes or could be disposed into the reservoirs as per the regulations and permissions from the local authorities.

The onshore option enables more space for water treatment as compared to offshore, which is also one of the major aspects driving the onshore segment growth.

Offshore segment is also expected to hold the key market share during the projection period, owing to the increasing number of offshore projects across the worldwide regions, The offshore water can be used for industrial operations, reinjected into the sea or other reservoirs post the suitable purification treatment. The development of innovative techniques and technologies is expected to drive offshore segment growth.

How is Oil & Gas Segment Generating More Revenue Share in the Produced Water Treatment Market?

On the basis of end-user, the global market is segregated into power generation, oil & gas, industrial, and others. The oil & gas segment is projected to register the highest revenue share of the market during the forecast period. The revenue growth in the oil & gas segment is attributed to the highest demand for produced water treatment in oil and gas industry owing to the large volume of produced-water generated during the extraction process.

Additionally, to extract maximum output, the key players in the oil and gas industry use produced water treatment solutions. With the strict government regulations regarding the protection of the environment and the safety of water reservoirs, the oil & gas industry players have to ensure the purification of produced-water before disposing it into the sea or other reservoirs.

Industrial segment is also anticipated to hold the key market share during the projection period, owing to the rising industrial activities across the world. Water is one of the main resources, which is commonly utilized throughout different industrial operations. Companies are required to follow ESG regulations to improve their sustainability. In addition, the purification of water enables its reuse or safe disposal, which aids companies in improving their resource utilization and saving costs.

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Why is North America Dominating the Produced Water Treatment Market?

In terms of region, the global produced water treatment market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market size of North America is anticipated to dominate the market during the forecast period, owing to the rising exploration of oil & gas activities in the region.

The demand for oil & gas for fulfilling energy requirements across North America is expected to boost the projects related to the extraction of oil and gas in the region. The key players in the oil & gas industry are focused on maximizing production output while minimizing the environmental impact caused by produced-water.

The strong regulations to follow ESG protocols are also driving various industrial firms in the region to opt for produced water solutions, to purify water and reuse it for different purposes.

Asia Pacific is expected to be the second fastest growing region in the global market, owing to the rising energy demands in the region. Emerging economies such as India and China have the largest energy requirements, owing to which several projects related to oil & gas activities, and energy generation are driving the demand for produced water treatment solutions in the region.

The growing water scarcity issues and the need to meet freshwater demands of the largest population from developing countries including China and India in Asia Pacific region, is giving rise to produced water solutions.

In addition, investment by governments and private organizations in the oil and natural gas exploration is rising in Asia Pacific and it is expected to considerably aid the market growth in the region.

Middle East & Africa is also anticipated to witness considerable growth in the market. The oil & gas export is highest from the Middle East countries. The region also faces freshwater shortage issues. The exploration to generate freshwater by different means is expected to aid the demand for market solutions in the region.

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