Produced Water Treatment Market

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

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.

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