The market for Industrial water treatment chemicals is anticipated to register a CAGR over 6% during the forecast period 2019 - 2024. Factors such as growing production activities in chemical and paper industry are driving the industrial water treatment chemicals market.
- Increasing production of shale gas in the US is expected to drive the demand for the industrial water treatment chemicals market during the forecast period.
- Lack of stringent regulations in developing countries are likely to hinder the market's growth.
- Increasing need of recycling of waste water for reuse is projected to act as an opportunity for the market in future.
Key Market Trends
Increasing Production of Shale Gas in United States
- Industrial water treatment chemicals are majorly used in oil & gas and power sector for treating used water.
- The production of shale gas is increasing in the United States owing to the rise in profitability in shale gas production through technological innovations and government policies lately.
- The giants in shale gas production are increasing their production activities to meet the surge in demand in the near future. New shale play discoveries are further expected to support the production activities in the country in the coming years.
- Adopting the new technologies and chemicals, the major producers of shale gas are increasing the production output from their existing fields as well. The newly developed technologies such as artificial lift systems and enhanced oil recovery.
- As per the forecast of EIA, the production of Shale Gas in the United States is projected to be 23,212 Billion Cubic Feet by 2020, growing at a CAGR of 10.24% over the period of 2018-2020, which in turn will lead to the increasing demand of water for operations.
- All the aforementioned factors are supporting the consumption of industrial water treatment chemicals.
North America to Dominate the Industrial Water Treatment Chemicals Market
- North America dominated the global industrial water treatment chemicals market share in 2018. This can be attributed to the presence of a large number of mining, oil & gas and power generation activities in the United States.
- The United States is the largest single producer and consumer of natural gas and particularly shale gas, accounting to a large chunk of global capacity in 2018.
- Canada has a large reserve of oil sands and with the steady higher prices of crude oil in the market, the production of crude from oil sands has become viable. This is also expected to drive the market of industrial water treatment chemicals in the region.
- Further, the stringent regulations of government for the outlet water by the industrial sector increases the requirement for industrial water treatment.
- The significant growth in the shale gas exploration and production along with the recovery in the mining outputs in the country are expected to support the consumption of industrial water treatment chemicals at a steady rate during the forecast period.
The industrial water treatment chemicals market is fragmented in nature. Key players in the industrial water treatment chemicals market include SUEZ, BASF SE, Kemira, Ashland, DuPont and Dow.
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