Produced Water Treatment Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Produced Water Treatment Market Size - Analysis

Produced Water Treatment Market Trends

The global oil and gas industry has been facing challenges posed by large volumes of produced water generation during hydrocarbon extraction processes. As oilfields around the world near depletion, operators are relying more on unconventional resources like shale oil and gas that generate extremely high quantities of contaminated water.

At the same time, availability of water is becoming a major issue for drilling and hydraulic fracturing activities in many arid regions. This has heightened the importance of recycling and reuse of produced water within oilfield operations.

Governments across the world are tightening regulations related to management and discharge of oilfield wastewater due to rising public scrutiny on environmental performance of petroleum industry. Even underground injection into disposal wells is facing opposition over induced seismicity fears. Ever more stringent discharge standards are being established with stricter limits on chemical oxygen demand, toxicity, chlorides, and other impurities.

Regular audits and monitoring under regulatory scanner are driving investment in online instrumentation, automated process control as well as advanced wastewater characterization. Producers must also systematically handle issues around treatment sludge handling and disposal, which will drive growth of the produced water treatment market.

Market Challenge - High Costs Involved in the Deployment of Advanced Water Treatment Technologies

Moreover, the logistical challenges of setting up extensive treatment infrastructure at remote production sites also translates to higher costs. While reuse and recycling of produced water helps reduce freshwater usage and disposal volumes to some extent, the costs of advanced treatment often outweigh these benefits for operators.

One key opportunity area for the produced water treatment market is the rising shale gas exploration activities worldwide. Hydraulic fracturing techniques have enabled commercial production from shale reservoirs, boosting natural gas supplies.

This presents promising opportunities for companies in the produced water treatment market offering fit-for-purpose water treatment solutions tailored for the shale gas industry. Developing technologies that allow for cost-effective treatment and reuse of produced water at shale well sites will be key to sustainably address these rising produced water treatment needs.

Key winning strategies adopted by key players of Produced Water Treatment Market

Strategic acquisitions and partnerships: In 2021, Halliburton acquired NexTier's produced water treatment business, strengthening its chemistry and midstream capabilities. Similarly, Schlumberger acquired Twister BV to enhance its solid/liquid separation portfolio for produced water.

Expanding into sustainable applications: Complying with stringent regulations and reducing environmental impact has driven growth. Companies like Severn Trent and Schlumberger have started recycling of treated water for uses like irrigation, dust suppression etc. Baker Hughes launched its H2prO produced water solution in 2020 focusing on beneficial reuse of resources. Such initiatives boosted their sustainability credentials and revenues.

Segmental Analysis of Produced Water Treatment Market

Insights, By Technology: Primary Treatment Technology Meets the Need for Effective Treatment

As one of the first steps in the treatment process, primary treatment technologies such as skimming and coagulation address the large quantities of free oil, grease, and suspended solids present in produced water. Therefore, primary treatment plays an indispensable role in protecting infrastructure integrity and meeting stringent regulatory discharge standards.

In terms of application, onshore contributes 62.4% share of the produced water treatment market, as the vast majority of oil and gas production still occurs on land. According to estimates, over 90% of global wells and associated infrastructure are based onshore, generating enormous volumes of produced water daily.

Growing environmental oversight also poses unique compliance challenges for terrestrial operations pertaining to land use and subsurface disposal. As such, dependable onshore treatment remains a high priority, underpinning produced water treatment spending even as offshore activity gradually increases.

Insights, By Service: Ensuring Project Compliance and Performance

As regulations evolve and projects expand, adaptive re-design remains critical. Therefore, high-quality front-end system design forms the basis for sustained compliance, protecting industry reputation and facilitating continued resource production for decades to come.

Additional Insights of Produced Water Treatment Market

• Onshore Segment Dominance: The onshore application segment holds approximately 62.35% of the produced water treatment market share due to the prevalence of onshore drilling activities globally.
• North America held the largest share of 43% in the produced water treatment market in 2023, with Europe expected to experience the fastest growth.
• Regional Growth: The Asia Pacific region is anticipated to register the highest growth rate in the global produced water treatment market, attributed to escalating oil exploration projects and stricter environmental norms.
• Service Segment Insights: The operation & maintenance subsegment accounts for 45.25% share of the produced water treatment market, highlighting the ongoing need for system upkeep.
• Offshore drilling companies in the produced water treatment market are increasingly adopting mobile treatment units to manage produced water, reducing the need for transportation and disposal.

Competitive overview of Produced Water Treatment Market

The major players operating in the produced water treatment market include S.C. Johnson & Son, Godrej Consumer Products Ltd., Dabur India Ltd., Reckitt Benckiser, Spectrum Brands Holdings Inc., Veolia Environnement S.A., Schlumberger Limited, Siemens AG, Halliburton Company, Baker Hughes Company, SUEZ, Alderley plc, Ovivo Inc., CETCO Energy Services, and Aquatech International LLC.

Recent Developments in Produced Water Treatment Market

Produced Water Treatment Market Segmentation

• By Technology
  • Primary Treatment
    • Skimming
    • Coagulation
  • Secondary Treatment
    • Biological Aerated Filters
    • Membrane Bioreactors
  • Tertiary Treatment
    • Advanced Oxidation Processes
    • Ion Exchange
• By Application
  • Onshore
    • Conventional Oil Wells
    • Unconventional Oil Wells
  • Offshore
    • Shallow Water
    • Deepwater
• By Service
  • Design
    • Process Engineering
    • System Integration
  • Construction
    • Equipment Installation
    • Infrastructure Development
  • Operation & Maintenance