India Water Treatment Chemicals Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

India Water Treatment Chemicals Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The India Water Treatment Chemicals Market size was valued at USD 2,045.08 million in 2020 and the market is projected to register a CAGR of over 6% in terms of revenue during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Owing to the pandemic scenario, various end-user industry such as petrochemical had cut their throughput production during the lockdown, considering the decline in the demand. For example, Indian Oil Corporation Ltd, with the production capacity of 5 million barrels per day of crude oil, had cut its crude oil processing by about 30% to 40% and shut its Panipat cracker located at Haryana of India as of march end 2020, thus led to a decrease in the production of wastewater from these end-user industries, which in turn negatively impacts the market demand for water treatment chemicals within the country.

Key Highlights

• Over the short term, the increasing demand from the chemical manufacturing industry is expected to drive the market's growth. However, the toxicity of water treatment chemicals is restraining the demand for water treatment chemicals in the country.
• Among the applications, power generation sector accounts for the largest market share and is likely to dominate the market during the forecast period. Among the product types, corrosion and scale inhibitors segment is dominating the market.
• The increasing investments in sewage treatment plants in the country is to provide a major growth opportunity to the market studied.

Key Market TrendsIncreasing Demand from Corrosion and Scale Inhibitors Segment

• Corrosion inhibitors are general-purpose chemicals applied to counter the corrosion caused in boilers. Corrosion occurs due to the reaction of oxygen with metallic parts in a boiler, which forms oxides. Corrosion affects the metallic part of the boiler and thereby increases the cost of energy and maintenance. It acts by forming a thin layer of barrier over the exposed parts of the boiler from the water.
• Several types of corrosion inhibitors are used in water boilers, including - condensate line corrosion inhibitor, diethyl hydroxylamine, polyamine, morpholine, cyclohexylamine, and carbon dioxide corrosion inhibitor.
• These inhibitors are also used in cooling water treatment, to ensure metal protection and prevent metal loss, which may lead to critical system failures in recirculating water piping, process cooling equipment, and heat exchangers.
• The scale is a precipitate formed on the surface of water treatment towers, as a result of precipitation of soluble solids that become insoluble as temperature increases. This, in turn, causes metallic corrosion that affects the functioning and maintenance of the cooling water towers. This deposition increases corrosion rates, causing loss of production, restricting water flow, and interfering with heat transfer.
• In the boiler water treatment, if untreated water is used in the boiler, it brings with it a number of soluble salts. These remain soluble in cold water, but with the rise in temperature inside the boiler, salts become insoluble. Carbonates and bicarbonates are formed from calcium and magnesium chemicals dissolved in water.
• Water boilers, heat exchangers, cooling systems are the key equipments of the chemical industry. According to the India Brand Equity Foundation (IBEF), the Indian chemicals industry was valued at USD 178 billion in 2019 and is expected to reach USD 304 billion by 2025, registering a CAGR of 9.3%. The demand for chemicals is expected to expand by 9% per year by 2025, thus led to increase in the demand for corrosion and scale inhibitors, which in turn expected to stimulates the demand for the water treatment chemicals market within in the country.
• In the first half of FY2020, India has produced about 5.81 million tons of major chemicals and the production volume of major chemicals was accounted for about 11.58 million tons in FY2019, with a growth rate of about 4.6% compared to the previous year, thereby enhanced the demand for the water chemicals market in the country.
• Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Power Industry to Dominate the Market

• India's power sector consists of conventional sources, ‘such as coal, hydro, and nuclear power’ to non-conventional sources, such as wind, solar, and agriculture and domestic waste.
• Water in the power generation industry is used in steam production for spinning turbines, humidifying airflow into gas turbines, the inter-cooling air in gas-turbine plants, and various other applications.
• The electric power generation industry is one of the major sources of industrial wastewater. Their wastewater contains significant levels of toxic metal impurities, such as lead, mercury, arsenic, chromium and cadmium, among others. These impurities can cause significant damage to the environment, if not treated properly. Therefore, the electric power generation industry needs water treatment chemicals.
• The electricity generation in India was amounted to about 1,613 terawatt hour (TWh) in 2019, with a decline rate of about 0.31% compared to the previous year, thus led to a decrease in the production of waste water at the electric generation facility, which in turn negatively impacts the market demand for water treatment chemicals in India.
• Electricity demand in the country is expected to grow in the coming years, owing to growing industrialization, urbanization, and population.
• Therefore, the aforementioned factors are expected to show significant impact on the market in the coming years.

Competitive Landscape

The Indian water treatment chemicals market is partially fragmented, with no player in the market accounting for a significant share of the market. Key players in the market studied include Thermax Limited, ION EXCHANGE, Chemtex Specialty Limited, SicagenChem, and Ecolab (Nalco), among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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