Solar Water Desalination Plant Market

Solar Water Desalination Plant Market Size

The solar water desalination plant market was valued at USD 2.6 billion in 2023 and is anticipated to register at a CAGR of 7.5% between 2024 and 2032. With the combination of increasing global freshwater scarcity and its rising demand, Solar Water Desalination Plant is a sector that has expanded immensely over the recent years. These plants use a process called distillation, wherein saltwater is converted into fresh water. The fresh water extracted is then utilized for agriculture and industrial purposes. Due to the severe shortage of freshwater, desalination offers a solution to the alarming concern.

Moreover, consumers are also shifting towards the employment of these cost-effective Water Desalination plants due to heightened focus on conserving and sustaining water. Improving membranes, easy construction designs and use of less components are just a few examples of the technological advancements done in Solar Water Desalination Plants.  With increased efficiency, their usage and demand is projected to grow along with development in these technologies.

In comparison with the traditional methods of filtration, Solar Water Desalination Plants’ preliminary expenses like that of panels, filtration gear, and infrastructural development tend to be pricier. As per the International Renewable Energy Agency (IRENA), the cost estimates for the solar filtration plants hover around 1000 to 5000 US dollars per cubed meter, scaling with the technological options, size of the plant, and other factors. Without a doubt, these preemptive investments impose serious difficulties towards solar projects’ global outreach and deter potential investors from putting their money into solar desalination initiatives.

Solar Water Desalination Plant Market Trends

Newer membrane technologies are being employed in solar water desalination plants like reverse osmosis (RO) and nanofiltration (NF) for improving water treatment efficiency while lowering energy consumption. Compared to conventional thermal desalination methods, membrane-based water desalination technologies reduce environmental impacts elevating water recovery rates while also requiring less energy. Nanofiltration (NF) membranes provide high salt rejection and moderate energy demand compared to conventional reverse osmosis membranes. Because of this, operating expenses for solar desalination plants are lower.

Solar Water Desalination Plant Market Analysis

Based on technology type, the solar thermal desalination segment was reached USD 1.2 billion in 2023 and is expected to cross USD 2 billion by 2032. Plants that use solar thermal desalination exploit solar energy to derive heat which in turn allows them to evaporate seawater and subsequently produce fresh water using non-membrane thermal processes, such as distillation. When compared to Photovoltaic desalination (PV), energy consumption tends to be relatively lower making it more efficient. A study published in the journal Renewable & Sustainable Energy Reviews have reported that depending on the type of technology used, performance, and working parameters, solar thermal desalination systems are able to attain energy conversion efficiency in the range of 30% to 50%.

Based on capacity, the medium segment dominated the market in 2023, capturing a substantial revenue share of 41.2% and is projected to hit USD 969.9 million by 2032. From the point of view of end clients and the community, medium-scale solar thermal desalination plants offer the required flexibility and adjustability to cater to different operational conditions and water needs. These plants can be retrofit with systems to treat various salinity grades, water quality and different production rates enabling specific solutions that meet the challenges and requirements posed at the local scale. As stated in the journal Desalination, medium-scale desalination plants are being more and more coupled with the water infrastructure or industrial facilities that exist in order to increase the supply of water and water security. Many medium-scale solar desalination projects have already been successfully started in the world. For instance, in Maldives, the solar desalination plant of 5000 cubic meter is providing fresh water to several islands.

I2023, the municipal segment emerged as the market leader, commanding a substantial share of the 52.02% and is anticipated to reach a valuation of USD 1.3 billion by 2032. Many metropolitan regions have started experiencing water shortages which challenge their existing water resources owing to burgeoning population, greenhouse emissions, and the unsustainable utilization of freshwater resources. The World Resources Institute suggests that nearly one in four people, around 25% of the population globally, reside in water-stressed areas of which urban regions are the most susceptible. Solar water desalination plants present an opportunity for Municipalities as alternative sources of water by using solar energy to convert seawater into freshwater, which decreases dependence on scarce freshwater resources and alleviates stress on the available water resources.

North America captures 31.2% share of the solar water desalination plant market in 2023 and is projected to hit USD 1.4 billion by 2032. In North America, growth of the population and broadening of the area of urbanization translates to increase in the demand for fresh water resources in commercial, industrial, municipal and even agricultural segment. The United Nations claims that North America is amongst the highest urbanized in the world, with 82% of the population residing in cities. This growth in the urban population, accompanied by an disposable income, economic growth, increases the need for reliable and sustainable water supply systems.

Country level analysis

The US continues to dominate the North America solar water desalination plant market as it did in previous years, generating $825.1 in revenue in 2023 and expecting it to grow to around $1.4 billion by 2032. In North America, particularly in southwestern United States and part of Mexico, water shortage issue is rising. This creates a demand for desalination that is only higher, which is likely to increase the need for desalination plant components and materials as well. 

In addition, a rise in off grid or remote community application modular desalination plants is likely to increase in the US now market. The trend would perhaps prefer the packaging that can not only safeguard these modular units but also make them easy to move about.

Europe Solar Water Desalination Plant is expected to grow tremendously at a compound growth rate of around 27.1%. Climate change has affected a lot of people in Europe resulting in water stress. Countries in Europe have started facing droughts making the European Environment Agency worrying about the water scarcity becoming more severe. Solar water desalination is regarded as most efficient way to deal with water shortage.

In regards to the market share, the U.K. was the leader with approximately 31.6% share in the European market. The government of the United Kingdom has pledged to make changes to incorporate renewable energy and aims to achieve zero net greenhouse gas emissions by 2050. The Solar water desalination plant utilizes solar energy which in turn is inline with the government policies.

According to the world population statistics issued by the United Nations, the world's population is more than 50% concentrated in Asia, and its urban population will continue to expand massively in the decades to come. The growth of population and industrialization in Asia Pacific has been tremendous. Hence, there is an increasing requirement for freshwater resources which implies that there is also a growing need for alternatives to freshwater. Thus, it can be anticipated that solar water desalination plant projects will succeed in Asia Pacific.

Within the region, China ranked highest for total market share with approximately 23.03% of the Asia Pacific market. As stated by the Ministry of Water Resources of China, the per capita water resources of the country weighs only at approximately 25% of the average which is available across the world, leading to drying in several regions. Due to the exponential increase in population, urban growth, and shifts in industrial practices, China is also currently going through some critical water scarcity and freshwater resource stress. Solar water desalination plants along the coastline of China can be a viable way to address the shortage of water by providing an alternative source for freshwater and simultaneously preserving the existing resources.

Solar Water Desalination Plant Market Share

The key players operating in the market are ACCIONA, Desolenator, Elemental Water Makers B.V, Aquatech, and IDE. all together comprises a market share of 10-20% in 2023. The market is moderately fragmented, showing signs of consolidation. It's a dynamic market with a mix of established players and new entrants, but with a tendency for some larger companies to hold a strong position.

Solar Water Desalination Plant Market Companies

Major players operating in the solar water desalination plant industry include:

• SolarSpring GmbH
• Aqua Green Engineering Co.
• Solar Water Solutions Inc.
• SolAqua Inc.
• SunDesal Systems Ltd.
• PureSun Desalination LLC
• SolarDrops Technologies Ltd.
• AquaSun Innovations Pty Ltd.
• SolarClear Water Solutions Ltd.
• SunDrop Desalination Systems Inc.
• SolarStream Desalination LLC
• AquaSolar Solutions Ltd.
• SunPure Water Technologies Inc.
• SolWaves Desalination Ltd.
• SolarAqua Desalination Systems Inc.
• ACCIONA
• Desolenator
• Elemental Water Makers B.V
• Aquatech
• IDE
  

Solar Water Desalination Plant Industry News

• In November 2023, Veolia starts operating the largest solar power plant on a desalination plant in the Middle East. This effort is part of the Group’s continuous ambition to decarbonize its activities as well as assist its clients in achieving their carbon neutrality objectives. The 17 megawatt-peak (MWp) solar project is the first of its kind in the Middle East.
  
• In October 2023, the German company Boreal Light installed Europe’s largest solar water desalination system. The 460 kWp system in Mykolaiv, located in southern Ukraine, is able to produce 125 cubic meters of clean water in an hour.
  
• In September 2023, The Egyptian Electricity Holding Company (EEHC) has issued a tender for the establishment of five concentrated solar power (CSP) plants that are intended to power water desalination plants located at the north coast.
  

The solar water desalination plant market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) and volume (Thousand units) from 2021 to 2032, for the following segments:

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Market, by Technology Type

• Solar Photovoltaic Desalination
• Solar Thermal Desalination

Market, by Cooling Capacity

• Small scale (below 1,000 cubic meters per day)
• Medium scale (between 1,000-10,000 cubic meters per day)
• Large scale (above 10,000 cubic meters per day

Market, by End Use

• Agricultural
• Industrial
• Municipal
• Commercial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia
  • Indonesia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA