The global water treatment chemicals market is estimated to be valued at US$38.0 billion in 2022 and is expected to exhibit a CAGR of 6.67% over the forecast period 2023–2030, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
Water treatment chemicals are used to remove impurities and contaminants from water, making it suitable for various applications such as drinking water, industrial processes, and wastewater treatment. These chemicals offer several advantages, including disinfection, scale and corrosion inhibition, pH adjustment, and coagulation and flocculation. As the demand for clean water continues to rise due to population growth, industrialization, and stringent environmental regulations, the market for water treatment chemicals is expected to witness significant growth.
- B) Market Key Trends:
One key trend in the Water Treatment Chemicals Market is the increasing adoption of sustainable and eco-friendly chemicals. With growing environmental concerns, there is a shift towards using chemicals that are less harmful and have lower environmental impact. For example, the use of bio-based chemicals, such as enzymes and biopolymers, is gaining traction as they offer effective water treatment properties without the drawbacks of conventional chemicals. This trend is driven by the need for sustainable water treatment solutions and the rising awareness about the impact of traditional chemicals on the environment.
- C) Porter’s Analysis:
- Threat of new entrants: Medium – The water treatment chemicals market has high entry barriers due to the requirement for significant capital investment, specialized knowledge, and stringent regulatory compliance. However, the market’s growth potential may attract new players.
- Bargaining power of buyers: High – Buyers have a strong bargaining power due to the presence of multiple suppliers and intense competition in the market. Buyers can easily switch to alternative suppliers to negotiate better terms.
- Bargaining power of suppliers: Moderate – Suppliers of water treatment chemicals have moderate bargaining power, as they provide essential products to the market. However, their power is limited due to the availability of multiple suppliers and the competition in the market.
- Threat of new substitutes: Low – The threat of new substitutes is low, as water treatment chemicals are essential for effective water treatment processes. There are limited alternatives that can provide similar results.
- Competitive rivalry: High – The water treatment chemicals market is highly competitive, with several key players dominating the market. Intense competition leads to price competitions, product innovations, and strategic alliances among market players.
- D) Key Takeaways:
- The global Water & Wastewater Treatment Chemicals Market is expected to witness high growth, exhibiting a CAGR of 6.67% over the forecast period, due to the increasing demand for clean water. Rapid urbanization, industrialization, and stringent regulations for water quality and wastewater treatment are major drivers for market growth.
- The Asia Pacific region is expected to be the fastest-growing and dominating region in the water treatment chemicals market. The rapid industrialization in countries like China and India, coupled with the increasing population and urbanization, drives the demand for water treatment chemicals in the region.
- Key players operating in the global water treatment chemicals market are BASF S.E., Suez S.A., Kemira OYJ, BWA Water Additives, Ecolab Inc., Cortec Corporation, DowDuPont Inc., Baker Hughes Incorporated, Akzo Nobel N.V., and Solenis LLC. These companies focus on strategic collaborations, new product launches, and expanding their distribution networks to gain a competitive edge in the market.