Forecast
Period
|
2026-2030
|
Market
Size (2024)
|
USD
957.33 Million
|
Market
Size (2030)
|
USD
1,728.10 Million
|
CAGR
(2025-2030)
|
10.18%
|
Fastest
Growing Segment
|
Membrane
|
Largest
Market
|
South
India
|
Market Overview
The India Desalination Plant Market was valued at USD 957.33 Million in 2024
and is expected to reach USD 1,728.10 Million by 2030 with a CAGR of 10.18% during
the forecast period. The India Desalination Plant Market is witnessing
substantial growth due to the increasing demand for potable water, particularly
in regions suffering from water scarcity and poor groundwater quality. India,
with its vast coastline and an increasing population, faces significant
challenges in ensuring a sustainable water supply for its growing urban and
agricultural needs. Desalination, the process of removing salts and minerals
from seawater to produce fresh water, has become a viable solution to address these
issues. As traditional freshwater sources such as rivers and groundwater face
depletion and contamination, desalination offers a reliable and efficient
method to meet the country’s water demands.
The market is primarily driven by the urgent need
for water security in coastal cities like Chennai, Mumbai, Kochi, and Mumbai,
where freshwater availability is limited and heavily dependent on seasonal
rainfall. The implementation of desalination plants is seen as a crucial
strategy to mitigate the effects of droughts and water shortages, especially in
these urban areas with rapidly increasing populations. , the industrial demand
for water in sectors such as power generation, pharmaceuticals, textile
manufacturing, and food processing is also a significant driver for the
desalination plant market.
Government support plays a vital role in the
expansion of the desalination industry. The Indian government has launched
several initiatives, including the National Water Mission, to promote water
conservation and management, encouraging the adoption of advanced technologies
like desalination. private players are increasingly entering the market,
attracted by the potential for long-term investment and the need for
sustainable water sources. Innovations in reverse osmosis (RO) technology,
which forms the backbone of most desalination plants, have significantly
reduced operational costs and improved the efficiency of desalinated water
production, making it a more economically viable solution for India.
However, the desalination market in India faces
challenges such as high energy consumption and environmental concerns related
to brine disposal, which may impact marine ecosystems. Despite these concerns,
advancements in energy-efficient technologies and the development of
eco-friendly brine management practices are addressing these hurdles. The
market is expected to witness continued growth, driven by rising demand for
clean water, ongoing technological advancements, and the growing need for
sustainable water solutions in India’s coastal regions and beyond.
Key Market Drivers
Increasing Water Scarcity and Depletion of
Freshwater Resources
India is facing an escalating water crisis, driven
by factors such as population growth, climate change, and the depletion of
freshwater sources. Rivers, lakes, and groundwater levels are increasingly
under pressure due to over-extraction, pollution, and erratic rainfall
patterns. This scarcity has made traditional sources of water unsustainable,
particularly in coastal cities and arid regions. Desalination offers a reliable
and consistent source of potable water by converting seawater into fresh water,
ensuring a stable supply for urban, industrial, and agricultural needs. The
growing urgency to secure clean water resources is a primary driver of
desalination plant adoption across India, particularly in areas where
freshwater availability is limited. Over
60% of India’s freshwater resources are facing depletion, intensifying the need
for alternative water sources like desalination to meet both domestic and
industrial water requirements, particularly in water-scarce coastal states.
Government Initiatives and Policies
The Indian government has recognized the importance
of desalination in addressing the country’s water security challenges and has
launched several initiatives to support its growth. Programs such as the National
Water Mission and Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) focus on water
conservation, infrastructure development, and the promotion of innovative water
solutions, including desalination. , state governments in coastal regions have
also implemented favorable policies and incentives, encouraging the
construction of desalination plants. These government efforts, coupled with
financial subsidies and tax exemptions, are key drivers for the market’s
growth, making desalination an attractive investment for both public and
private entities. The Ministry of Jal Shakti has been allocated USD 11.49
billion in 2024-25, towards Department of Drinking Water and Sanitation for the
development of water-related infrastructure, including desalination plants,
aiming to address water scarcity issues and promote sustainable water
management practices.
Growing Urbanization and Industrialization
India’s urban population is rapidly increasing,
with urban areas becoming the focal points of economic and industrial
development. This surge in urbanization places significant pressure on existing
freshwater resources. To meet the water demands of rapidly growing cities,
desalination plants are being viewed as a strategic solution, particularly in
coastal cities like Chennai, Mumbai, and Kochi. These urban areas require
large-scale water supply systems to support industries, power generation, and
residential areas. Similarly, industrial growth, particularly in
water-intensive sectors such as textiles, chemicals, and food processing,
necessitates a reliable and sustainable water source, further driving the
demand for desalinated water. India’s urban
population is expected to reach 600 million by 2031, significantly increasing
demand for freshwater supply. With more than 50% of India's population
projected to live in urban areas, the demand for desalinated water for drinking
and industrial use is expected to surge.
Technological Advancements in Desalination
Technological innovation plays a crucial role in
making desalination a more viable and cost-effective solution. Reverse Osmosis
(RO) technology, which is widely used in desalination plants, has seen
significant advancements in terms of energy efficiency, membrane durability,
and system performance. These improvements have reduced operational costs and
increased the feasibility of desalination, even in areas where it was
previously considered too expensive. , advancements in energy recovery devices,
which reduce the energy consumption of desalination processes, have made the
technology more sustainable. These developments are key drivers, as they
improve the economic viability and scalability of desalination plants in India.
According to India Desalination Association, there could be more than 1,000
membrane based desalination plants of various capacities ranging from 20m3/day
to 10,000m3/day to meet the rising demand for water in coastal and industrial
regions.
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Key Market Challenges
High Capital and Operational Costs
One of the significant challenges for the India
desalination plant market is the high initial capital investment required for
setting up desalination facilities. Constructing a desalination plant involves
substantial expenditure on infrastructure, technology, and equipment. Reverse
Osmosis (RO) systems, which are the most commonly used in desalination, require
significant upfront costs for installation and maintenance. The high energy
demands of desalination plants, particularly in regions with limited access to
renewable energy, further exacerbate operational costs. As a result, the
economic feasibility of desalination projects becomes a key concern, especially
for smaller municipalities and industries with limited budgets. Although
government subsidies and incentives are available, the financial burden remains
a challenge for many stakeholders, limiting the widespread adoption of
desalination solutions.
High Energy Consumption
Desalination is an energy-intensive process,
particularly reverse osmosis desalination, which requires large amounts of
electricity to pump seawater through membranes and remove salts and other
impurities. The high energy consumption of desalination plants poses a
significant challenge, especially in a country like India, where the energy
sector still relies heavily on fossil fuels for power generation. This results
in high operational costs and environmental concerns related to the carbon
footprint of desalinated water production. As energy prices continue to rise,
it becomes increasingly challenging for desalination plants to remain
economically viable without incorporating energy-efficient technologies or
transitioning to renewable energy sources. , India’s current energy
infrastructure may struggle to support the growing demand for energy required
by desalination plants, potentially leading to grid strain and supply
disruptions.
Environmental Concerns and Brine Disposal
The disposal of brine, the highly concentrated
saltwater byproduct of the desalination process, presents significant environmental
challenges. Brine disposal is a critical concern because its release into the
ocean can harm marine life and ecosystems. High concentrations of salt,
chemicals, and heavy metals in the brine can damage aquatic habitats, disrupt
biodiversity, and affect local fishing industries. Managing brine disposal in
an environmentally responsible way is a complex issue that requires careful
planning, technological innovation, and regulatory compliance. Despite advances
in brine management technologies, the challenge of minimizing the environmental
impact of brine remains one of the most contentious issues facing the
desalination industry in India.
Water Quality and Contamination Risks
Although desalination plants are designed to
produce high-quality drinking water, there are concerns about water quality and
the potential for contamination. In some cases, desalinated water may contain
residual chemicals used in the filtration process, which could pose health
risks if not adequately managed. , the desalination process may fail to remove
certain harmful substances, including microplastics and heavy metals,
particularly in plants using older or inefficient technologies. The safety of
desalinated water depends on the maintenance of the filtration systems,
ensuring that water quality is consistently monitored and meets health
standards. The risk of contamination, however, increases if the desalination
plant is not properly operated or maintained, thereby posing a challenge to
public health and safety.
Regulatory and Policy Challenges
The regulatory framework for desalination plants in
India is still evolving, and the absence of clear, standardized policies for
the construction and operation of these plants presents a challenge. While the
Indian government has expressed support for desalination as a means of addressing
water scarcity, regulatory hurdles such as land acquisition, environmental
clearances, and water usage rights can slow down the implementation of
desalination projects. , there is a lack of comprehensive guidelines for
monitoring and regulating desalinated water quality, as well as the proper
management of brine disposal. These regulatory uncertainties and
inconsistencies create risks for investors and developers, limiting the speed
at which desalination technologies can be adopted. , shifting government
priorities and funding allocations may affect the long-term stability of the
desalination market in India.
Key Market Trends
Technological Advancements in Desalination
Processes
Technological innovation is rapidly transforming
the India desalination plant market. The adoption of more energy-efficient
desalination methods, such as reverse osmosis (RO), is driving the growth of
the industry. As energy consumption is a major concern in desalination,
companies are investing in improving energy efficiency to make desalination
plants more cost-effective. Advanced pre-treatment processes, energy recovery devices,
and the development of low-energy desalination technologies have all
contributed to reducing the environmental and operational costs of these
plants. Improvements in desalination membranes and more efficient brine
disposal methods are enhancing the sustainability of these plants. The
application of solar desalination technologies is also gaining momentum, as
renewable energy solutions can reduce operational expenses and environmental
impacts, offering a more sustainable alternative to traditional
energy-intensive desalination methods. These technological advances are
expected to drive the market forward in the coming years.
Growing Urbanization and Industrial Water Demand
India’s rapid urbanization is leading to increased
demand for water in urban centers, especially in coastal regions. With
population growth, the need for potable water in cities like Chennai, Mumbai,
and Kochi is rising at an unprecedented pace. Desalination plants are seen as a
sustainable solution to meet this demand, providing a consistent and reliable
source of drinking water. The industrial sector, particularly industries such
as power generation, textiles, and food processing, also requires large amounts
of water, which can further strain freshwater resources. To ensure water
security and meet these demands, desalination plants are becoming increasingly
integral to the country’s water supply infrastructure. As urbanization continues,
there will be an increasing need for desalination plants in major cities,
contributing significantly to market growth.
Private Sector Investment and Participation
The participation of private players in the India
desalination plant market is another growing trend. With the increasing demand
for water in both urban and industrial sectors, private companies are seeking
opportunities to invest in desalination projects, often through public-private
partnerships (PPPs). These collaborations are becoming more common as private
companies bring in technological expertise and capital, while governments
provide regulatory support and financial incentives. This trend is especially
evident in states such as Tamil Nadu and Gujarat, where private companies are
involved in the construction and operation of desalination plants. The
involvement of the private sector is expected to accelerate the growth of
desalination infrastructure in India, as these companies drive innovation and improve
operational efficiency. Private investment also helps mitigate the financial
burden on the government, making desalination more feasible as a long-term
solution to the country’s water scarcity challenges.
Environmental and Sustainability Concerns
As desalination technology continues to grow in
India, so do the concerns related to its environmental impact. One of the major
challenges is the disposal of brine (the byproduct of desalination), which can
cause harm to marine ecosystems if not managed properly. To address this, there
is an increasing trend toward the development of eco-friendly brine management
techniques that ensure minimal environmental damage. The focus is shifting
toward making desalination processes more sustainable by using renewable energy
sources, such as solar and wind, to power desalination plants. This trend not
only helps reduce the carbon footprint of desalination plants but also makes
them more cost-effective in the long run. As environmental concerns become more
prominent, there will be a continued emphasis on improving sustainability
within the desalination industry, driving further innovation and adoption of
greener technologies.
Segmental Insights
Technology Insights
Thermal segment dominated in the India Desalination Plant market in
2024, due to its
long-established technology, reliability, and suitability for large-scale
desalination projects, particularly in coastal areas where the need for
freshwater is high. Thermal desalination, primarily through processes like Multi-Stage
Flash (MSF) and Multi-Effect Distillation (MED), has been widely used in India,
particularly in Gujarat and Tamil Nadu, where industrial and municipal water
demand is growing rapidly. One key factor driving the dominance of thermal
desalination is its ability to handle large volumes of seawater and produce
high-quality freshwater. Thermal desalination plants are particularly
advantageous in regions where the energy infrastructure is sufficient to
support the high energy requirements of these processes. India’s coastal areas,
particularly in Mumbai, Chennai, and Kochi, already have access to established
energy sources, making thermal desalination a practical choice. The energy
recovery systems used in thermal desalination help reduce the overall energy
consumption, improving the efficiency and cost-effectiveness of these plants. Tthermal
desalination technologies are highly reliable and have been in operation for
decades, which provides a sense of confidence for stakeholders in terms of
proven performance. This reliability factor is particularly important when
dealing with critical water supply systems in urban areas. The thermal segment
also benefits from government support, as the National Water Mission and
state-level programs provide subsidies for large-scale infrastructure projects
like thermal desalination plants.
Despite the increasing focus on reverse
osmosis (RO) and other technologies, thermal desalination remains the preferred
choice for large-scale installations due to its operational scale and ability
to meet the growing water demands of industrial and municipal sectors. As the
demand for water continues to rise in coastal cities, the thermal desalination
segment will continue to lead the market, offering both operational efficiency
and scalability to meet India’s long-term water security needs.
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Regional Insights
South India dominates the India Desalination Plant
market in 2024, due to
several key factors that make the region particularly conducive to the adoption
of desalination technologies. First and foremost, the coastal states of Tamil
Nadu, Kerala, Andhra Pradesh, and Karnataka face significant water scarcity
issues, making desalination a viable solution to supplement existing water
sources. These states experience high levels of water stress due to a
combination of limited freshwater resources, unpredictable monsoon patterns,
and growing population demands. Coastal areas, in particular, have abundant
seawater, which is an ideal resource for desalination processes, giving South
India a natural advantage for establishing desalination plants. Tamil Nadu, in
particular, is a leader in desalination plant implementation, with major cities
like Chennai already relying on desalinated water to meet their urban water
supply needs. The city's existing desalination plants have demonstrated the
effectiveness of the technology in providing clean drinking water to a growing
urban population. The state's strategic location along the coast also
facilitates easy access to seawater, making desalination more feasible. South
India’s high industrial demand for water further drives the need for
desalination. The region hosts numerous industries such as textiles, food
processing, and power generation, all of which require substantial amounts of
water for their operations. As freshwater resources become more strained,
desalination plants provide a reliable and sustainable alternative for
industries in these sectors.
Government initiatives like the National
Water Mission and state-specific schemes also play a significant role in
promoting desalination in South India. These initiatives provide financial
incentives and regulatory support, which encourage the establishment and
expansion of desalination infrastructure. As water scarcity continues to be a
major concern, the ongoing development and scaling up of desalination plants in
South India will continue to drive its dominance in the market through 2024.
Recent Developments
- In September 2024, Indian water technology company
VA Tech Wabag (WABAG) has successfully secured a significant Engineering,
Procurement, Construction, and Commissioning (EPCC) contract worth 1.2 billion
Saudi riyals ($317 million) for a large-scale seawater desalination project in
Saudi Arabia. This contract highlights WABAG's expertise in delivering
innovative water solutions on a global scale and strengthens its position in
the international desalination market. The project underscores the growing demand
for sustainable water sources in the region and represents a major step forward
for WABAG in expanding its footprint in the Middle East's water infrastructure
sector.
- In August 2023, India took a significant step
toward addressing water scarcity and saline groundwater intrusion by announcing
the construction of Asia's largest desalination plant. This move underscores
India's commitment to enhancing water security while setting a benchmark for
other nations facing similar challenges. The project aims to alleviate the
growing water crisis, ensuring a sustainable and reliable water supply, and
positions India as a leader in the adoption of advanced desalination technology
for long-term water management solutions.
- In March 2023, under the Indo-Danish Green
Strategic Partnership, a pilot project utilizing wave-powered desalination
technology will be launched to supply drinking water to coastal hamlets and
islands. This initiative aims to harness renewable energy for sustainable water
production, addressing water scarcity challenges in these regions while
aligning with green energy goals. The project underscores a commitment to
innovation and collaboration in advancing water security and environmental
sustainability in India’s coastal areas.
- In October 2024, the Tamil Nadu government is
preparing to release tenders for the development of a 60 million litres per day
(MLD) desalination plant in Thoothukudi, a key port city in southern India.
This project aims to cater to the increasing industrial demand in the region.
Operating under a hybrid annuity model, the tender process is expected to begin
soon, marking a significant step towards enhancing the region’s water supply
infrastructure to support its growing industrial base.
Key
Market Players
- VA Tech Wabag Limited
- Thermax Limited
- Ion Exchange (India) Limited
- Doshion Private Limited
- Ide Technologies India Private Limited
- Suez India Private Limited
- Aquatech Systems (Asia) Private Limited
- Hitachi India Private Limited
- Hyflux Engineering (India) Private Limited
- Genesis Global India Operations Private limited
By Technology
|
By End-Use Sector
|
By Region
|
|
- Municipal
- Industry
- Power
- Others
|
- North India
- South India
- West India
- East India
|
Report Scope:
In this report, the India Desalination Plant Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Desalination Plant Market, By
Technology:
o Membrane
o Thermal
o Hybrid
- India Desalination Plant Market, By
End-Use Sector:
o Municipal
o Industry
o Power
o Others
- India Desalination Plant Market, By Region:
o North India
o South India
o West India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India Desalination
Plant Market.
Available Customizations:
India Desalination Plant Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Desalination Plant Market is an upcoming
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