India Water Treatment Chemicals Market, By Type (Coagulants & Flocculants, Corrosion Inhibitors, Scale Inhibitors, Biocides & Disinfectants, Chelating Agents, Others), By End User Industry (Municipal, Power, Oil & Gas, Mining, Chemical, Food & Beverage, Pulp & Paper, Others), By Region, Competition, Forecast & Opportunities, 2018-2028F

Market Overview

India Water Treatment Chemicals Market has valued at USD 1760.38 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.39% through 2028. India Water Treatment Chemicals Market is anticipated to grow significantly rate in the projected period of 2028 which is driven by the increasing demand from oil & gas industry. In 2021, the volume of crude oil production in India amounted to about 27.67 million metric tons. India Water Treatment Chemicals Market is expected to expand during the projected period due to increasing demand from oil & gas industry as this sector faces various challenges related to water management, including the need for efficient water treatment solutions which help in increasingly adopting water conservation and reuse practices to minimize freshwater consumption. India Water Treatment Chemicals Market is a dynamic and competitive sector that offers opportunities for growth and innovation. The market players are focusing on expanding their product portfolio, enhancing their quality standards, improving their distribution network, and increasing their market share. For instance, in 2022, water treatment solutions provider Daiki Axis Japan announce that it plans to set up its third plant in the country in the southern region. Along with this, merger, and acquisition activity in the Water Treatment Chemicals Market enhances companies' presence in the region as these acquisitions help companies to better serve their customers and meet the growing demand for Water Treatment Chemicals in India in the projected year.

Key Market Drivers

Rising Demand from the Power Industry

The power industry plays an important role in India. Power plants, especially thermal power plants, require large quantities of water for cooling purposes. Cooling water is used to maintain optimal operating temperatures for power generation equipment, such as boilers and turbines. To prevent scaling, corrosion, and microbial growth within the cooling water system, water treatment chemicals like scale inhibitors, corrosion inhibitors, and biocides are used. The demand for water treatment chemicals in the power industry is driven by the need to maintain efficient and reliable cooling water systems, minimizing downtime, and maximizing power generation capacity. Similarly, steam generation is a vital process in power plants, and it requires high-quality boiler feedwater. The treatment of boiler feedwater is essential to prevent scaling, corrosion, and fouling in boilers, which can reduce their efficiency and lifespan. Water treatment chemicals, such as oxygen scavengers, pH adjusters, and antiscalant, are employed to optimize boiler water quality and ensure efficient steam generation.

The increasing number of power plants in India and the focus on enhancing operational efficiency drive the demand for water treatment chemicals for boiler water treatment. In addition, the power industry is subject to strict environmental regulations aimed at minimizing its impact on water resources. Power plants are required to comply with water quality standards and ensure the proper treatment of wastewater before discharge.

Water treatment chemicals are utilized to treat power plant wastewater, removing contaminants and pollutants to meet regulatory requirements. The need to adhere to environmental regulations and minimize the industry's ecological footprint contributes to the rising demand for water treatment chemicals in the power sector. Along with this, water scarcity is a significant concern in India, necessitating the adoption of sustainable water management practices in the power industry.

To address water scarcity challenges, power plants are increasingly focusing on water conservation, water reuse, and recycling. Water treatment chemicals play a crucial role in treating and purifying wastewater for reuse in power plant processes, reducing freshwater consumption and minimizing the strain on water resources. The emphasis on sustainable water management practices drives the demand for water treatment chemicals in the power sector. For instance, Ion Exchange (India) Limited produced series of an ion exchange resins by the name of INDION that are used for water treatment & specialty applications in nuclear power plant. Therefore, increasing demand of water treatment chemicals in the power industry led to the growth of India Water Treatment Chemicals Market in the upcoming years.

Growing Demand of Water Treatment Chemicals in the Municipal Sector

As urbanization and industrialization continue to accelerate, the demand for water treatment chemicals in the municipal sector has witnessed significant growth. Water treatment chemicals are essential in municipal water treatment plants to ensure the removal of impurities, disinfection of water, and maintenance of optimal water quality standards. The growing urban population directly correlates with the rising demand for water treatment chemicals in the municipal industry. Many municipalities in India are grappling with aging water supply infrastructure, leading to challenges in maintaining water quality.

Aging pipelines and storage tanks are prone to corrosion, which can introduce impurities and contaminants into the water supply. Water treatment chemicals, including corrosion inhibitors, play a crucial role in mitigating corrosion-related issues, preserving water quality, and ensuring the delivery of safe drinking water to citizens. Moreover, Indian government has played a crucial role in supporting the growth of the Water Treatment Chemicals market by implementing favorable policies and regulations. Initiatives such as the ". Swachh Bharat Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT)” are two significant government programs aimed at improving water supply and sanitation infrastructure in urban areas.

For instance, AMRUT 2.0 is a step towards Aatma Nirbhar Bharat by Indian government with aim of making the cities 'water secure' and providing functional water by effecting water source conservation, rejuvenation of water bodies and wells, recycle/ reuse of treated water, and rainwater harvesting by involving community at large. Furthermore, waterborne diseases pose a significant public health threat in India, particularly in densely populated urban areas. Contaminated water can harbor harmful microorganisms, bacteria, and viruses that cause diseases such as cholera, typhoid, and dysentery. To prevent waterborne diseases and protect public health, municipal water treatment facilities rely on water treatment chemicals, including disinfectants and biocides, to eliminate or neutralize pathogens present in the water supply. The increasing emphasis on preventing waterborne diseases fuels the demand for water treatment chemicals in the municipal sector. Hence, the increased use of water treatment chemicals in the treatment of municipal wastewater fueling the India Water Treatment Chemicals Market growth in the projected period.

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Key Market Challenges

Cost Considerations and Affordability

India's economic diversity presents a unique challenge in the water treatment chemicals market. The nation's economy comprises a mix of high-income urban centers and lower-income rural areas. Ensuring access to affordable water treatment solutions that cater to a wide range of economic conditions poses a significant challenge. Effective water treatment often requires substantial infrastructure investments, including equipment, facilities, and skilled personnel. However, many municipalities and industries, particularly in less developed regions, struggle with limited budgets for water treatment infrastructure. The cost of raw materials used in water treatment chemicals production can be volatile, impacting the affordability of the end products. Fluctuations in the prices of chemicals, minerals, and other raw materials can lead to unpredictable cost variations. Energy costs are a significant component of water treatment operations, especially in processes like filtration, disinfection, and desalination. Fluctuating energy prices can impact the overall cost-effectiveness of water treatment solutions.

Regulatory Compliance and Standards

The water treatment chemicals industry in India operates within a comprehensive regulatory framework that involves multiple regulatory bodies, including the Central Pollution Control Board (CPCB) and various state pollution control boards. Navigating through a complex web of regulations, permits, and approvals can pose challenges for manufacturers and suppliers. Adherence to various laws, such as the Water (Prevention and Control of Pollution) Act and Environmental Protection Act, necessitates a profound comprehension of legal obligations and their ramifications. India's federal structure allows individual states to establish their own environmental regulations and standards, leading to regional variations in compliance requirements. The India Water Treatment Chemicals Market caters to industries with diverse water quality requirements, encompassing power generation, textiles, and pharmaceuticals. These sectors encounter rigorous discharge regulations for treated water, aimed at safeguarding water bodies and the environment. Ensuring compliance with these stringent standards necessitates a steadfast commitment to innovation and substantial investments in research and development.

Key Market Trends

Adoption of Environmentally Friendly Solutions

Environmental awareness is a driving force behind the shift towards eco-friendly water treatment solutions in India. The principles of green chemistry are gaining traction in the water treatment chemicals market. Green chemistry emphasizes the design of products and processes that minimize environmental impact while maintaining performance. Water treatment chemical manufacturers are focusing on reducing toxicity, minimizing waste, and improving the biodegradability of their products, aligning with the ethos of sustainable and responsible chemistry. The increasing focus on environmentally friendly solutions is catalyzing innovation in water treatment technologies. Novel and advanced approaches are emerging, leveraging natural processes and alternative methods to achieve effective water treatment while reducing reliance on chemicals. These advancements not only promote sustainability but also alleviate the chemical burden associated with water treatment processes, offering viable alternatives to conventional chemical treatment methods.

Rising Demand for Potable Water

Chemical solutions, such as disinfectants and coagulants, play a vital role in neutralizing pathogens, removing impurities, and enhancing the overall safety of water supply systems. Industries in India, ranging from manufacturing to agriculture, rely heavily on water for their operations. Water treatment chemicals are essential to managing industrial effluents and maintaining water quality for discharge into water bodies. As the nation faces challenges arising from urbanization, population growth, and industrial expansion, the importance of effective water treatment becomes crucial. The implementation of innovative water treatment chemicals not only guarantees the availability of safe drinking water but also promotes environmental sustainability and public health. This trend highlights the vital role that the water treatment chemicals industry plays in safeguarding India's water resources and fostering a healthier, more sustainable future for its citizens.

Segmental Insights

Type

In 2022, the Water Treatment Chemicals market was dominated by the coagulants & flocculants segment and is predicted to continue expanding over the coming years.

End-User Industry Insights

In 2022, the Water Treatment Chemicals market was dominated by municipal segment and is predicted to continue expanding over the coming years.

Regional Insights

The West region has established itself as the leader in the India Water Treatment Chemicals Market.

Recent Developments

• In September 2022, Toray Industries, Inc. inaugurated the Toray India Water Research Center in Chennai, India. The center aims to enhance research and development efforts in the application of its water treatment membrane technology, supporting India's growing demand for treatment solutions.
• In August 2022, Daiki Axis constructed its second sewage treatment facility, with a capacity of 1,000 units, in Palwal, Haryana, through its subsidiary Daiki Axis India.
• In March 2023, WABAG was acknowledged by Water Digest and honored with the prestigious "Best Water Treatment Solution Provider" award at the Water Digest Water Awards 2022 – 23. WABAG has established itself as a trusted partner for governments and industries worldwide, offering innovative and advanced water treatment solutions that ensure the provision of safe and clean drinking water, as well as sustainable sanitation for millions of people.
• In December 2022, WABAG secured a significant Industrial Wastewater Treatment order in Romania valued at approximately INR 260 Crores (EUR 30 million). The project aims to upgrade the Industrial Wastewater Treatment Plant (WWTP) in Victoria, Brasov County. Originally designed to handle 5,820 m3/day of wastewater from resin production, the Purolite Victoria WWTP is now required to accommodate increased production, resulting in higher wastewater flow.

Key Market Players

• BASF India Ltd.
• Dow Chemical International Pvt. Ltd.
• Solvay Specialities India Private Limited
• SNF India Pvt Ltd
• Thermax Limited
• Ion Exchange (India) Limited
• Chembond Chemicals Limited, India
• Pon Pure Chemicals Group
• Mishitek Chemicals
• Sicagen India Ltd.