Stringent norms regarding treatment and disposal of produced water will remain the key force, propelling the demand for a range of produced water treatment systems. Generated from the oil and gas industry, produced water often comprises hydrocarbon formulations and a few other hazardous chemical characteristics. Water treatment systems that are specifically designed for produced water serve to safeguard the quality of treated water before it is reused or released off.
The global produced water treatment systems market has been witnessing moderate growth since the past few years. During the five-year period 2015-2020, the global market for produced water treatment systems is likely to take a leap from US$ 4.6 Bn observed in 2015, to cross US$ 6.0 Bn by 2020 end in terms of revenues. The market will expand at a CAGR of 6.1% over the forecast period.
Soaring demand for oil and gas, followed by increasing extraction, will continue to primarily drive the market for produced water treatment systems on a global level. In addition to stringent government regulatory measures regarding the environmental impact of produced water disposal, reinjection norms in the petroleum sector are anticipated to accelerate the market growth. Scarcity of usable water in developing regions will also remain a key driver to emergence of better water treatment solutions, eventually escalating the market growth. Rising prevalence of land gas drilling will also push the market growth by 2020 end.
Produced water volumes are projected to spike up to nearly 340 billion barrels by 2020 end, up from over 202 billion barrels generated recently in 2014. After disposal of around 70% of these barrels, the remaining were re-injected into off-shore oil fields. This has been a key booster to the generation of increasing volumes of produced water within the recent past. Moreover, burgeoning oil-to-produced water ratio is also foreseen to sustain the demand for efficient produced water treatment systems. In addition, rising unconventional production levels of the oil and gas industry will remain an important factor propelling the demand over the next few years. Increased exploration rate of off-shore and on-shore reserves of oil and gas, is another key trend expected to support the market growth.
Since the past few years, depleting crude oil reserves in key OPEC countries has compelled oil and gas companies to adopt other alternative sources, including gas hydrates, tight oil, shale gas, and CBM. This trend has been a key promoter of the use of produced water treatment systems. Emergence of several new methodologies, including polymer membrane ultra-filtration, membrane distillation, forward osmosis, and adsorption will persist to positively hit the industry.
However, higher installation and operational costs may remain a longstanding challenge to the global produced water treatment systems market growth. Leading companies in the market are increasingly concerned about scaling of water treatment technologies.
By technology, the global produced water treatment market is segmented into three key segments viz. primary, secondary, and tertiary treatment systems. In 2015, secondary treatment systems segment registered the largest revenue share of over 38%. However, this segment is likely to witness a fall during the forecast period; the Y-o-Y growth in 2017 over 2016 will be of 5.4%. PMR indicates that tertiary treatment systems segment will thrive at the fastest CAGR of 9.1% over 2015-2020.
North America will remain the dominant market through to 2020, with over 41% share in terms of revenues. From US$ 1.73 Bn recorded in 2015, this region is estimated to exceed US$ 2.5 Bn by 2020 end. While tertiary treatment segment in North America is estimated at a 12.5% CAGR, secondary treatment segment will expand at a CAGR of 7.1%. Europe and Asia Pacific, collectively registering a market share of nearly 43% in 2015, will remain the major markets over the forecast period as well. Latin America, despite registering a negligible share in 2015, is expected to emerge at a substantial rate during 2015-2020.
Key Market Players
Some of the key companies profiled in the global produced water treatment systems market report, include Siemens AG, Aker Solutions, FMC Technologies, Inc., Alderley plc, Veolia, Frames Group, CETCO Energy Services, Aquatech International, Eco-Tec, Schlumberger Limited, Ovivo, ThermoEnergy Corporation, Global Water Engineering, Ecosphere Technologies, Inc., and Miox Corporation.
With exploding demand for oil and gas, and increased need for usable water, are the two prime factors driving the global market for produced water treatment systems. A newly published report by Persistence Market Research (PMR) offers a five-year forecast on the global produced water treatment systems market over 2015-2020. The report considers XX as the base year and provides data for the following X years. This research report provides a detailed analysis of the market, while identifying the factors directly or indirectly contributing to growth of the market across the regions.
This study offers extensive insights about the market dynamics and trends of various regional markets that are influencing the current nature and future dynamics of the global produced water treatment systems market during the aforementioned forecast period. The report begins with a general overview of the global market for produced water treatment systems, and further defines the market values and forecast period. The next section includes an exhaustive analysis of drivers, restraints, recent market trends, and upcoming opportunities that are likely to impact the market.
In order to understand and assess the demand and opportunities in this market, the report is categorically split into three major sections, on the basis of the technology – primary treatment, secondary treatment, and tertiary treatment. This section discusses each technology sub-segment in detail in terms of market values (US$ Mn), both historic and estimated. The report also provides an extensive data about all the key regional markets for produced water treatment systems. The regional analysis evaluates each geographical market based on various factors impacting the market, covering the present scenario and future prospects. The regions discussed in the report include North America, Latin America, Europe, Asia Pacific, and Middle East and Africa.
The final section of the report i.e. key players analysis, offers a competitive landscape that includes a dashboard view of various comparison points including revenue bracket, key application areas, and global presence amongst others. It also enables identification and evaluation of key competitors based on in-depth assessment of their capabilities and success in the marketplace. Key players profiled in the global produced water treatment systems market report are Siemens AG, Aker Solutions, FMC Technologies, Inc., Alderley plc, Veolia, Frames Group, CETCO Energy Services, Aquatech International, Eco-Tec, Schlumberger Limited, Ovivo, ThermoEnergy Corporation, Global Water Engineering, Ecosphere Technologies, Inc., and Miox Corporation.
A detailed analysis has been provided for every segment in terms of market size analysis for the global produced water treatment systems market. In order to offer an accurate forecast, we started by sizing up the current market, which forms the basis of how the market is expected to develop in the future. Given the characteristics of the market, we triangulated the outcome of three different types of analysis based on supply side, downstream industry demand, and the economic envelope.
It is vital to note that in an ever-fluctuating global economy, we not only conduct forecast in terms of CAGR, but also analyze the same on the basis of key parameters such as, year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities for established as well as newly entering market players.
Another key feature of this report is the analysis of all segments in terms of absolute dollar. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as identify potential resources from a sales and delivery perspective in the global produced water treatment systems market. In addition to this, our report also offers insights into strategic recommendations and key success factors for new entrants in the global produced water treatment systems market.