Market Trends of India Water Treatment Chemicals Industry
This section covers the major market trends shaping the India Water Treatment Chemicals Market according to our research experts:
Increasing 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 inhibitors, 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.
- 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, and cooling systems are the key equipments of the chemical industry. According to the IBEF, the Indian chemicals industry is expected to reach USD 304 billion over the next three years, registering a CAGR of 9.3%. The demand for chemicals is expected to expand by 9% per year over the next three years, thus leading to an increase in demand for corrosion and scale inhibitors, which in turn is expected to stimulate the demand for the water treatment chemicals market within the country.
- The government has designated four PCPIRs (petroleum, chemicals, and petrochemical investment regions) as areas for investing in these industries and related services. The new PCPIR Policy 2020-35 aims to invest Rs. 10 lakh crore (USD 142 billion) in all PCPIRs over the next three years, Rs. 15 lakh crore (USD 213 billion) by 2030, and Rs. 20 lakh crore (USD 284 billion) over the next 13 years.
- Major Chemicals' output volume witnessed a y-o-y growth of 5.75% to 4.35 million tonnes in FY2023 (up to July 2022), from 4.15 million tonnes in the same period the year before, thereby enhancing the demand for the water chemicals market in the country.
- Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
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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. The country has an installed power capacity of 408.71 GW as of October 31, 2022, and is the third-largest producer and user of energy globally.
- 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.
- Previously, the total electricity generation in India amounted to about 1,491.85 billion units, with a growth rate of about 7.96% compared to 2020, thus leading to an increase in the production of wastewater at the electric generation facility, which in turn positively 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 a significant impact on the market in the coming years.
