The global produced water treatment market was valued at USD 7.47 Billion in 2022 and is projected to reach USD 13.22 Billion by 2030, registering a CAGR of 7.1% for the forecast period 2023-2030.
Market Definition
Produced water treatment is defined as a procedure of handling and cleaning the water that is sourced along with natural gas and oil. Produced water is the water segregated from production fluid during natural gas and oil production. This water is a blend of inorganic and organic compounds and a high volume of derivatives developed during the recovery functioning of oil and gas. The produced water consists of numerous impurities and contaminants, such as chemicals, salts, solids, and oil. To retrieve the beneficial resources from the produced water, to fulfill regulations on environments, and to safeguard ecosystems, proper treatment of water is important. As there is a rise in industrial activities, the induction of produced water has surged globally and its treatment for reuse is also essential from the environmental perspective. Various physical, chemical, biological, and other methods are used for the treatment of the produced water.
The increasing gas and oil production is a major factor driving the market growth of the produced water treatment. As the energy demand continues to increase, the greater the capacity of the produced water needs to be treated before reuse or disposal. Also, the issues regarding water scarcity aid in boosting the produced water treatment market for using treated water for agricultural and industrial uses and maintaining freshwater.
Market Size:
- 2022: USD 7.47 billion
- 2030: USD 13.22 billion
- CAGR (2023-2030): 7.1%
Produced Water Treatment Market Dynamics
Drivers Propelling the Demand for Produced Water Treatment include:
Rising demand for oil and gas production is surging the market growth of the produced water treatment:
Rising demand for oil and gas production is a major factor surging the market growth of the produced water treatment. Due to industrialization, and the increasing energy demand, the greater is the production of oil and gas which leads to the treatment of the produced water before use. Produced water is a byproduct of this production process and consists of various impurities and contaminants that need to be treated before reuse or disposal. The more the production, the more is the treatment needed for the produced water. Also, environmental regulations on proper disposal of produced water lead to a growth in the produced water treatment market, as the production of oil and gas rises, stricter regulations are imposed by the government to ensure effective treatment and proper disposal of the high amount of the produced water. To eliminate environmental risks and maintain the ecosystem, produced water treatment plays a crucial role. Thus, with the growing production of oil and gas, a high amount of produced water needs to be treated which accelerates the produced water treatment market growth.
The growing issue of water scarcity drives the market of produced water treatment:
In regions with scarce water resources, the effective use of water plays an important role. In such water scarcity regions, there is a high focus on conserving and reusing water. Produced water which is initially treated and disposed of can be treated to support regulations and then reused in other oil and gas processes. This preserves freshwater resources and also decreases the demand for other new water sources and makes produced water treatment economically alluring. Also, the places where fresh water is scarce and costly, treating produced water and reusing it could be more economical than sourcing fresh water for oil and gas functions. Various oil and gas companies have accepted sustainability goals to lower environmental concerns. Treating produced water and reusing it line up with these sustainability goals by decreasing the consumption of water and reducing its harmful impact on water reservoirs and ecosystems. Thus, the growing issue of water scarcity increases the demand for produced water treatment for reusing the treated water for various purposes and to maintain the ecosystem by proper disposal of it.
Recent Developments
In February 2021, According to SLB, innovative national project Egypt Upstream Gateway was launched for the digitalization of subsurface information. This digital platform permits worldwide access to the country's subsurface data, which is kept evergreen by improving legacy datasets through reprocessing and new studies. This unique digital initiative is used to unlock the potential of Egypt's petroleum sector and promote the country's exploration and production potential globally.
In June 2020, Siemens Energy and Ecology International signed an agreement to provide an efficient and service-oriented treatment option to the water and wastewater industry. This cooperation provides industrial customers in the energy and petrochemical sectors with a solution to locally treat industrial wastewater containing spent caustic and hazardous waste. The strategic alliance brings to local markets patented Zimpro Wet Air Oxidation technology, supplied by Siemens and operated and maintained by Ecolog.
Restraint
Scaling and volume restrains may hamper the market growth of the produced water treatment:
The sheer capacity of produced water developed by oil and gas operations can devastate the existing treatment infrastructure. It would make it difficult for the treatment facilities to carry the vast volume efficiently, which may lead to a decrease in the effectiveness of the treatment. Also, the increasing volume of the produced water due to the high demand for oil and gas creates problems for the current treatment systems to treat these rising volumes of produced water. This increasing volume gives rise to enlargement in the treatment facilities that need investment, which also may decline the market growth of the produced water treatment. Further, the treatment of such a sheer volume of the produced water which contains various contaminants also develops scales on the surfaces of the treatment equipment which requires continuous maintenance to retain efficiency and also increases the operational cost. Also, scaling can lead to delays in the treatment of the produced water as equipment needs to be stopped for maintenance. These delays lead to disruption in the schedules of oil and gas production and may cause financial losses. This increased operational cost and financial loss may also become a barrier to the growth of the produced water treatment market.
Challenges
Designing treatment systems and meeting environmental regulations creates a challenge for the produced water treatment market:
Based on the process of extraction and source, the composition of the produced water changes significantly. Different composition leads to the designing of treatment equipment and systems that can effectively suit the variability of the composition of the water. Designing such structures creates a challenge for the manufacturers. Meeting stringent environmental regulations also creates a challenge for the produced water treatment market to treat the produced water at high standards before disposal. As produced water treatment contains various materials such as mud particles, droplets of oil, metal particles, and organic compounds it needs to be treated before disposal or reuse. Also, water treatment systems can face a challenge in producing cost-efficient treatment as carrying treatment with complex contaminants becomes costly. Achieving cheap treatment for such complex contaminants while meeting environmental regulations creates a challenge for both operators and providers of treatment technology.
Opportunities
Research and development along with advanced technologies pose an opportunity for the produced water treatment industry:
Research and development in the field of produced water treatment creates opportunities for developing technologies with high efficiency. Advancements in filtration, chemical processes, and separation can treat the water more effectively while decreasing the cost of treatment and enhancing efficiency. Improved technologies lead to a decrease in the use of energy and chemicals giving rise to cost-benefit for treatment of produced water. Thus, research and development play a vital role in providing opportunities to establish technologies with great efficiency. Advanced technologies including AI, IoT sensors, and automation systems, permit monitoring through remote and management of treatment processes. This supports efficiency in operation, decreases the use of on-site personnel, and reduces downtime. Hence, the advanced technologies create opportunities for treatment systems to use IoT sensors and other automation in the produced water treatment sector.
Snapshot
| Attributes | Details |
| Global Produced Water Treatment Market | 2022 |
| Global Revenue (USD Billion) | 4.47 |
| Compound Annual Growth Rate (CAGR) | 6.45 % |
| Segment covered | By Production Source, By Service, By Treatment Type, By Application, By End Use & By region |
| Regions Covered | North America; Europe; Asia Pacific; Latin America; MEA |
| Country Scope |
U.S.; Canada; Mexico; UK; Germany; France; Italy; Spain; India; Japan; China; Southeast Asia, Brazil; Argentina; GCC Countries, UAE, and South Africa. |
| Key Company Profiled | The major players operating in the market are Aquatech International L.L.C, Veolia, Pentair, SUEZ, Xylem Inc., Evoqua Water Technologies LLC, Dryden Aqua, Dresden, Ecolab., Samco Technologies, Inc., DAS Environmental Expert GMBH, and others. |
| Customization scope | Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
| Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
Segment Analysis of the Produced Water Treatment Market
The produced water treatment market is segmented by production source, service, treatment type, application, end-user, and region.
By Service
The tertiary treatment segment held the largest market share in 2022:
Tertiary treatment dominated the produced water treatment market in 2022 as this treatment is essential for developing produced water for disposal or reuse in the oil and gas industry. Tertiary treatment is used to eliminate contaminants such as heavy metals, hydrocarbons, mud particles, and oil droplets. Tertiary treatment paves the way for proper disposal or reuse of the produced water by removing the complex contaminants while meeting environmental regulations. As the issue of water scarcity is rising in some regions the need for sustainable practices such as reuse is also increasing. With the demand for reuse operations, the utilization of tertiary treatment surges to ensure proper treatment of the produced water for applications in the oil and gas industry.
However, the primary treatment has also significantly impacted the produced water treatment market. The primary treatment being an initial step in the treatment of produced water helps in eliminating large particles, and oil. This treatment ensures that posterior treatment processes work smoothly without getting overloaded by large particles. Primary treatment methods such as gravity-based separators are often cheap in contrast with the advanced treatment techniques.
By treatment type
The physical treatment segment was the leading segment in 2022:
Physical treatment methods such as adsorption, hydrocyclones, and separators play a crucial role in discarding solid particles and deposits from the produced water. This is vital in eliminating the fouling of the equipment and helps in the smoothening of the posterior processes. Physical treatment methods are easy to execute and operate. This treatment is not based on difficult specialized equipment and is reliable for a broad level of produced water constituents. Physical treatment is also cheap in differentiation from the other treatment methods, as it requires fewer chemicals and has less maintenance and operational cost. This cost-effectiveness factor makes this treatment type appealing for the operators. Thus, the application of physical treatment type in creating efficiency for the posterior processes and its cost-effectiveness makes it dominant in the produced water treatment market.
The chemical treatment type is expected to grow at a robust rate during the forecast period due to its flexibility in managing particular contaminants. Chemical treatment is productive in treating a wide range of contaminants and impurities present in produced water such as heavy metals, solids, and oils. Chemical treatment can be utilized in concurrence with biological and physical treatments to enhance efficiency.
By End Use
The oil and gas segment dominated the produced water treatment market in 2022:
The rising demand for oil and gas leads to the expansion of the oil and gas industry which in turn increases the generation of the produced water. Produced water being the byproduct of the hydraulic fracturing and oil extraction process is generated in a large volume. This capacity of produced water is greater than the other industries developing a significant demand for the treatment of the produced water. Also, the stringent environmental regulations imposed on the oil and gas sector for the proper disposal of the produced water or its reuse in the same industry or other purposes. These regulations build the need for the treatment of the produced water generated by the oil and gas industry leading to the growth of the oil and gas segment in the produced water treatment market.
The industrial segment also contributes highly to the produced water treatment market. The mining sector generates water that needs to be treated before disposal as it contains numerous heavy metals, solids, and residues. The chemical industry also generates wastewater of numerous chemical compositions which needs to be treated as it contains various organic and inorganic compounds.
Regional Analysis
North America occupied the largest market share in 2022:
North America dominated the produced water treatment market in 2022. The factors propelling the growth of the market in this region are the increasing consumption of fuel and rising oil and gas sourcing operations. Also, the perforation of advanced water treatment technologies and the existence of key market players in the region contribute to the growth of the produced water treatment market in this region. The presence of stringent environmental regulations and the expansion of the oil and gas industry in the region leads to an increase in the utilization of the treatments for produced water leading to the dominance of the produced water treatment market in this region.
The produced water treatment market in the Asia Pacific is expected to grow at a rapid pace due to the execution of the first shale gas policy and improvement in the technologies used for water treatment. Also, some regions of Asia Pacific face the issue of water scarcity which also becomes a major reason for the growth of the produced water treatment market for treating water and reusing it for various purposes.
Segmentation Analysis of the Produced Water Treatment Market
By Production Source
- Natural Gas
- Crude Oil
- Primary Treatment
- Secondary Treatment
- Tertiary Treatment
- Reverse Osmosis
- Chemical Treatment
- Physical Treatment
- Biological Treatment
- Combined Systems
- Others
- Offshore
- Onshore
- Oil and Gas
- Industrial
- Power Generation
- Others
Competition Analysis
- Aquatech International L.L.C
- Veolia
- Pentair
- SUEZ
- Xylem Inc.
- Evoqua Water Technologies LLC
- Dryden Aqua
- Dresden
- Ecolab.
- Samco Technologies, Inc.
- DAS Environmental Expert GMBH
Impact of the COVID-19 Pandemic on the Produced Water Treatment Market:
COVID-19 significantly impacted the produced water treatment market. The pandemic led to disruption in the worldwide supply chain due to disturbance in the supply of components, equipment, and chemicals, used in the treatment of produced water. Many oil and gas projects were temporarily closed or delayed due to the lockdown, travel restrictions, and disturbance in the supply chain. Also, lockdowns led to a reduction in the demand for energy in some regions, decreasing the oil and gas sourcing or extraction activity, reducing the oil and gas production, and subsequently affecting the produced water treatment market. The pandemic realized the need for remote monitoring in the oil and gas industry leading to an enhancement in the efficiency of the process.
Post COVID-19 as economies recovered from the pandemic, the energy demand rebounded leading to an increase in the production of oil and gas and subsequently of the produced water leading to a rise in the treatments of the produced water. Also, stringent environmental regulations supporting sustainability also helped the produced water treatment market to grow.
