The water treatment chemicals market comprises the segments of coagulants & flocculants, scale & corrosion inhibitors, disinfectants & biocides, antifoam, pH Conditioners and others. By technique type, the market is further divided into coagulation & flocculation, filtration, disinfection, pH correction and others. Major end users are municipal authorities and industrial organizations.
Coagulants & flocculants are anticipated to witness higher uptake among other water treatment chemicals and the market for the same is likely to grow at the highest CAGR, both by value and volume. These chemicals are extremely cost effective and are widely used for treating both water and effluents.
The municipal segment held the largest share of the water treatment chemicals market in 2018, and is expected to continue its dominance during the forecast period, largely due to increasing demand for clean and treated potable water across both urban and rural areas worldwide. Power, chemicals, oil & gas, mining, paper & pulp and food & beverage are some of the largest water-consuming industries worldwide and are anticipated to drive the demand for value-added water treatment chemicals.
The overall consumption of water treatment chemicals in India is anticipated to register high growth. This is largely due to increasing urbanization and population growth, which in turn are augmenting the demand for safe drinking water. Moreover, with ongoing industrial development in the country, price-intensive specialty chemicals are being increasingly consumed by manufacturing units. The revenue growth for water treatment chemicals is largely driven by gradual price rises and usage of these high-grade specialty chemicals.
Rest of Asia Pacific (RAPAC) accounted for the largest share of the water treatment chemicals market in 2018, and is expected to continue its dominance during the forecast period. Demographic growth and industrial output, coupled with rising investment towards improvisation of water and sanitary infrastructure, are anticipated to help materialize a high growth in consumption of the considered chemicals in the region.
The Middle East and Africa are at the cusp of an alarming water crisis and have been exploring water reclamation and desalination techniques, which will further fuel the demand for water treatment chemicals. The recovery in Latin American economies after a period of downturn is expected to augur well for market growth over the forecast period.
The market for water treatment chemicals in North America and Europe is already at a mature stage. However, increasing incidences of global warming, coupled with rising focus on conservation of water resources, is expected to boost the growth in consumption of water treatment chemicals in these regions.
With increasing water stress, regulatory bodies worldwide have been implementing stringent water and wastewater treatment legislations, such as Clean Water Act, Safe Drinking Water Act, Water Act and Water Framework Directive among others. These, in turn, are expected to promote the growth of the water treatment chemicals market during the forecast period.
However, increasing research into eco-friendly alternatives/non-chemical technologies poses a threat for the water treatment chemicals market.
The market is highly fragmented with large presence of small-scale enterprises that are largely involved in the manufacturing and distribution of commodity water treatment chemicals. These small and regional participants influence the overall pricing and distribution patterns in regional markets, especially in Asia Pacific, Middle East and Africa. Specialty chemicals are price intensive and mostly supplied by large-scale global companies, predominantly for specialized industrial applications. Overall prices of water treatment chemicals are expected to register low growth due to increasing commercialization of the market.
Water treatment chemical manufacturers are anticipated to emphasize more on vertical integration to maintain their control over the supply chain. While large-scale companies are focused more on forward integration (manufacturing of equipment and systems), medium- and small-scale companies are likely to adopt backward integration techniques (raw material production). Moreover, the market is expected to witness mergers and acquisitions activities among companies to expand their product offerings and stay ahead of the competition.