Produced Water Treatment Market by Application (Onshore, Offshore), Source (Conventional, Unconventional), Treatment (Primary treatment, Secondary treatment, Tertiary treatment) and Region - Global Forecast to 2029
Produced Water Treatment Market Size, Share, Trends, Growth Report & Forecast
The global produced water treatment market in terms of revenue was estimated to be worth $10.7 billion in 2024 and is poised to reach $13.4 billion by 2029 growing at a CAGR of 4.7% from 2024 to 2029.
Globally, the energy demand is growing significantly with precipitous increase in the population, especially in developing nations. Further, the growing urbanization and industrialization are contributing significantly to global energy requirement. Currently, oil & gas comprise approximately 80% of global energy demand. This drives investment in exploration and production activities, leading to higher demand for produced water treatment solutions, which in turn is expected to boost the market worldwide.
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Produced Water Treatment Market Dynamics
Driver: Rising global oil and gas production and growing concerns over water resource management
Increasing drilling activities and investments in the oil and gas sector have been a notable trend in recent years. Rising global oil and gas production presents significant growth opportunities for produced water treatment. This is particularly crucial considering the environmental and regulatory concerns associated with untreated water disposal. Efficient water treatment technologies and processes will be essential to mitigate environmental risks and ensure compliance with regulations as oil and gas production escalates globally. The shift towards a more sustainable approach has been driven by the growing concerns over water scarcity and the need to conserve freshwater resources. One of the key strategies employed by the industry is the use of produced water for well completions, reducing the reliance on freshwater sources. This not only conserves freshwater resources but also reduces the costs associated with water disposal and transportation. North America and European markets have comparatively more stringent regulations regarding disposal of produced water. As of 2023, approximately 20% of produced water in the Permian Basin (US) is being recycled and reused for well completions, up from only 10% a few years ago.
Restraint: Requirement of high capital investment and complexity of produced water composition
The high capital investment required for setting up advanced treatment infrastructure is a significant challenge for small and medium-sized oil and gas companies. The economic burden of these investments can be prohibitive for smaller operators, who may not have the financial flexibility of larger companies. This is compounded by the additional costs of pre-treatment, handling, and managing air emissions.
Furthermore, The complexity of produced water composition, which varies significantly depending on the reservoir and production processes, poses a significant challenge for developing standardized treatment solutions. The presence of unidentified organic compounds, due to the lack of comprehensive analytical methods and standard materials, adds another layer of complexity to the treatment process. This diversity in composition necessitates tailored treatment approaches for each site, as a one-size-fits-all solution is impractical, which remains a challenge.
Opportunities: Use of produced water in industrial processes
The use of produced water in industrial applications presents several significant opportunities. By treating produced water, industries can reduce reliance on freshwater sources, thereby alleviating stress on drinking water supplies. Innovations in water treatment and distillation technologies allow produced water to be repurposed for beneficial uses such as offsetting make-up water needs, which can be critical in water-scarce regions. Additionally, treated water can be used in green hydrogen production, contributing to cleaner energy initiatives and reducing overall emissions.
Challenges: Fluctuating oil and gas prices and economic uncertainties
Fluctuating oil and gas prices, exacerbated by economic uncertainties such as geopolitical risks, can significantly impact investment decisions in produced water treatment. The recent large movements and volatility in oil and gas prices, driven by factors like the pandemic, the war in Ukraine, and rising tensions in the Middle East, create uncertainty for investors in the oil and gas industry. During periods of heightened geopolitical risks, investors may become cautious, leading to reduced investment in infrastructure, including produced water treatment facilities. The post-pandemic recovery period saw significant price volatility, further complicating investment decisions in produced water treatment. With oil and gas prices experiencing large-scale fluctuations, companies may prioritize short-term cost-cutting measures over long-term sustainability initiatives like water treatment. Moreover, weak demand and higher non-OPEC production amidst geopolitical tensions can create a challenging operating environment for oil and gas companies, potentially leading to budget constraints and reduced investment in environmental projects.
Produced Water Treatment Market Ecosystem
Leading companies in this market include well-established, financially secure providers of produced water treatment solutions. These corporations have been long operating in the market and have a differentiated product portfolio, advanced technologies, and robust sales and marketing networks. Some of the major companies in this market include SLB (US), Baker Hughes Company (US), TechnipFMC plc (UK), Siemens Energy (Germany), DuPont (UK), and Veolia Environment SA (France).
Tertiary treatment is expected to be the fastest growing segment by treatment type during the forecast period.
Tertiary treatment processes, which include methods like reverse osmosis and advanced oxidation, provide high levels of contaminant removal, making the treated water suitable for reuse in industrial processes or even as potable water. The key factors contributing to this growth include strict environmental laws, the necessity for high-quality water recycling, and advancements in water treatment technologies. Technological innovations in tertiary treatment, such as improved membrane filtration and the integration of multiple treatment techniques, are further driving market development.
By source, offshore is expected to be the fastest segment during the forecast period.
Offshore operations refer to oil and gas activities conducted at oceans or seas. Offshore produced water treatments regularly require more complicated technologies due to the tougher and more varying conditions at sea. This segment is expected to be the fastest in the produced water treatment market due to rising global demand for oil and gas, exploration of new reserves. Major Investments in offshore oil and gas projects are boosting the demand for produced water treatment solutions. For example, Egypt announced an $8.1 billion investment in offshore gas exploration, and Shell has invested $5 billion in Nigeria’s offshore oil production?. These investments indicate a rising focus on offshore extraction, requiring effective water treatment solutions.
“Asia Pacific”: The fastest growing region in the produced water treatment market.
Asia Pacific is the fastest growing region in the produced water treatment market owing to the region experiencing significant population growth and economic development, leading to a corresponding increase in energy demand. The region has vast untapped offshore reserves, particularly in Southeast Asia. Even though Asia Pacific Oil & gas production witnessed a decline during the pandemic years, it is expected to bounce back during the forecast period owing to growing investment in new projects and expansion of shale gas exploration. These are some of the factors that are augmenting the market growth in the region.
Key Market Players
The produced water treatment market is dominated by a few major players that have a wide regional presence. The major players in the produced water treatment market are SLB (US), Baker Hughes Company (US), TechnipFMC (UK), Siemens Energy (Germany), DuPont (US), and Veolia Environment SA (France).
Between 2020 and 2024, strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the produced water treatment market.
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Scope of the Report
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Report Metrics |
Details |
Market size available for years |
2021–2029 |
Base year considered |
2023 |
Forecast period |
2024–2029 |
Forecast units |
Value (USD), Volume (Million bbl) |
Segments Covered |
Source, Application, Treatment |
Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
Companies covered |
SLB (US), Siemens Energy (Germany), Baker Hughes Company (US), Weatherford International ltd (US), Veolia (France), Nov Inc (US), TechnipFMC Plc (FRANCE), Industrie de nora S.P.A (Italy), Dupont (US), Minerals Technologies Inc. (US), Tetra Technologies, Inc. (US), Ovivo water Ltd (Canada), Alderley Plc (UK), Cannon S.P.A (Italy), Aquatech (US), BPC (India), Genesis water technologies (US), Diva Envitec (India), Enhydra Ltd (UK), Lewa GMBH (UAE), Filtra system (US), Neer Shakti (India), Enviro Tech Systems (US), Brisbane water (US), Integrated Sustainability consultants Ltd (Canada) |
This research report categorizes the Produced water treatment market by Source, Application, Treatment, and region.
On the basis of source:
- Conventional
- Unconventional
On the basis of application:
- Onshore
- Offshore
On the basis of treatment:
- Primary treatment
- Secondary treatment
- Tertiary treatment
On the basis of region:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In April 2024, SLB and ChampionX Corporation announced a definitive agreement for SLB to purchase ChampionX in an all-stock transaction. ChampionX Corporation is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. This acquisition would allow SLB to enhance its product portfolio.
- In September 2023, SLB signed a subsurface technology partnership with INEOS Energy to collaborate on subsurface technologies, including AI capabilities, to enhance operational performance, growth, acquisitions, and Carbon Capture and Storage (CCS).
- In April 2022, Veolia water technologies launched barrel, an integrated plug-and-play reverse osmosis (RO) technology, catering to the desalination market and water reuse applications. This technology offers a sustainable source of fresh water meeting all quality standards.
- In July 2021, TechnipFMC plc acquired the remaining 49% of shares of TIOS AS which provides fully integrated Riserless Light Well Intervention (RLWI) services. TIOS AS is a joint venture between TechnipFMC and Island Offshore which was formed in 2018.
Frequently Asked Questions (FAQ):
What is the current size of the produced water treatment market?
The current market size of the produced water treatment market is USD 10.7 billion in 2024.
What are the major drivers for the produced water treatment market?
The major driver of the produced water treatment market is rising global oil & gas production.
What is the major restraining factor of produced water treatment market?
High capital investment for the water treatment infrastructure is the major restraint of produced water treatment market.
Which is the largest region during the forecasted period in the produced water treatment market?
North America is expected to dominate the produced water treatment market between 2024–2029.
Which is the second fastest segment, by application, during the forecasted period in the produced water treatment market?
The onshore segment is expected to be the second fastest market during the forecast period. There's a resurgence of onshore drilling activity globally, particularly in shale oil and gas sector. This is due to advancements in horizontal drilling techniques and the development of unconventional resources that are more abundant onshore. These activities require a significant amount of water treatment solutions, thus driving the market growth. .
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The study involved major activities in estimating the current size of the produced water treatment market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study on the produced water treatment market involved the use of extensive secondary sources, directories, and databases, such as Hoovers, Bloomberg, Businessweek, Factiva, International Energy Agency, and United States Energy Association, to identify and collect information useful for a technical, market-oriented, and commercial study of the global market. The other secondary sources included annual reports of the companies involved in the market, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
The produced water treatment market comprises several stakeholders such as produced water treatment manufacturers, produced water treatment service companies, suppliers and distributors of produced water treatment in the supply chain. The demand side of this market is characterized by the increasing oil & gas exploration activities. The supply side is characterized by rising demand for contracts from the oil & gas sector and mergers & acquisitions among big players. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Following is the breakdown of primary respondents:
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the total size of the produced water treatment market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market share in the respective regions has been determined through both secondary and primary research.
- The industry’s value chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primaries.
Global Produced Water Treatment Market Size: Top-down Approach
Global produced water treatment Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market has been split into several segments and subsegments. The complete market engineering process is done to arrive at the exact statistics for all the segments and subsegments, also data triangulation and market breakdown processes have been employed, wherever applicable. The data has been triangulated by examining various factors and trends from both the demand- and supply sides. Along with this, the market has been validated through both the top-down and bottom-up approaches.
Market Definition
Produced water, which is a byproduct of oil and gas exploration process, requires active treatment to meet environmental regulations and helps in reuse or safe disposal. This produced water has a mixture of injected water, Natural formation water, and any other chemicals used in the exploration and drilling process.
Key Stakeholders
- Produced water treatment manufacturers and providers
- Manufacturing industries
- R&D laboratories
- Consulting companies from the energy & power sector
- Distributors of produced water treatment
- Government and research organizations
- State and national regulatory authorities
Objectives of the Study
- To define, describe, segment, and forecast the produced water treatment market by application, by source, and by treatment in terms of value and volume.
- To describe and forecast the market for six key regions: North America, Europe, Asia Pacific, South America, the Middle East, and Africa, along with their country-level market sizes, in terms of value.
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing market growth
- To strategically analyze the micro markets with respect to individual growth trends, prospects, and contributions to the overall market size
- To provide supply chain analysis, trends/disruptions impacting customer business, ecosystem/market map, pricing analysis, Porter’s five forces analysis, case study analysis, and regulatory standards pertaining to produced water treatment
- To analyze opportunities for stakeholders in the produced water treatment and draw a competitive landscape of the market.
- To strategically analyze the ecosystem, tariffs and regulations, patents, and trading scenarios pertaining to produced water treatment
- To compare key market players based on product specifications and applications.
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as contracts and agreements, investments and expansions, mergers and acquisitions, partnerships, joint ventures, and collaborations, in produced water treatment
Available Customizations:
With the given market data, MarketsandMarkets offers customizations as per the client’s specific needs. The following customization options are available for this report:
Geographic Analysis
- Further breakdown of region or country-specific analysis
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Produced Water Treatment Market