Cooling Water Treatment Chemicals Global Market Report 2025

The cooling water treatment chemicals market size has grown strongly in recent years. It will grow from $16.41 billion in 2024 to $17.4 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to health and safety regulations, corrosion control, biofouling mitigation, energy efficiency concerns, and water scarcity.

The cooling water treatment chemicals market size is expected to see strong growth in the next few years. It will grow to $22.15 billion in 2029 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to digitalization, water recycling initiatives, climate change, urbanization, and microbial control. Major trends in the forecast period include ultraviolet and ozone treatment, antiscalants and dispersants, bio-based chemicals, advanced formulations, and a shift towards multifunctional chemicals.

The forecast of 6.2% growth over the next five years reflects a modest reduction of 0.9% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through limited supply of phosphates and biocides from Belgium and Brazil, increasing maintenance costs for industrial cooling systems. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The surge in demand from power industries is anticipated to be a significant driver in propelling the growth of the cooling water treatment chemicals market in the foreseeable future. Within the power industry, responsible for electricity generation, there is a critical need for these chemicals to combat corrosion and microbiological growth, ensuring the reliability and efficiency of power plant equipment and operations. Cooling water treatment chemicals play a pivotal role in maintaining efficient heat transfer and safeguarding the optimal performance and longevity of equipment within power facilities. A notable illustration of this demand trend is evident in data released by the U.S. Energy Information Administration (EIA) in December 2023. The report highlights a substantial increase in total electricity consumption in the United States during 2022, marking a growth of approximately 3.2% compared to the previous year. Additionally, electricity sales to residential and commercial sectors surged by approximately 2.6% and 4.7%, respectively, further underlining the heightened demand within the power industry. Consequently, the growing reliance on power generation is poised to fuel the expansion of the cooling water treatment chemicals market.

Key players in the cooling water treatment chemicals market are actively engaged in product innovation to enhance effectiveness, efficiency, and sustainability in water treatment processes. A notable trend in this regard is the development of smart-tagged polymers, which incorporate embedded markers for tracking, identification, or responsive actions across various applications. For example, Italmatch Chemicals GB Ltd., a UK-based chemical company, introduced Lumiclene in October 2022, a line of smart-tagged polymers designed for industrial water treatment applications such as open-recirculating and closed-cooling systems. Lumiclene offers superior scale inhibition and dispersing capabilities, facilitating precise online monitoring and control of free-active polymer content in water. This innovative solution empowers industries with enhanced scale control, leading to improved system performance, reduced maintenance costs, and significant environmental benefits.

In April 2021, Kurita Water Industries Ltd., a Japan-based provider of groundwater and soil remediation services, made a strategic move by acquiring Keytech Water Management for an undisclosed sum. This acquisition is expected to bolster Kurita Water Industries' presence in the North American market by expanding its geographical reach and strengthening its product and service offerings. Keytech Water Management, headquartered in Canada, specializes in providing cooling water treatment chemicals, thus complementing Kurita Water Industries' strategic objectives for growth and diversification in the region.

Cooling water treatment chemicals are essential substances utilized to uphold the effectiveness and durability of cooling systems by managing scale, corrosion, and microbial growth. These chemicals play a crucial role in preventing the accumulation of mineral deposits, which can impede heat transfer and diminish system efficiency. Among these chemicals are scale inhibitors, which work by sequestering or dispersing scale-forming ions such as calcium, magnesium, and silica to deter scale formation.

The primary categories of cooling water treatment chemicals include scale inhibitors, corrosion inhibitors, biocides, and other additives. Scale inhibitors, specifically, serve to forestall the buildup of mineral scale deposits within cooling water systems, thereby sustaining efficiency and extending equipment lifespan. These chemicals find application across diverse sectors such as raw water treatment, water desalination, cooling processes, boilers, effluent water treatment, among others. They are widely employed by industries spanning power generation, steel manufacturing, mining, metallurgy, petrochemicals, oil and gas, food and beverage, textiles, and various other sectors.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The escalating U.S. tariffs and rising trade tensions in spring 2025 are expected to significantly affect the chemicals sector, which is facing a disproportionate impact - particularly from tariffs on petrochemicals and intermediates, where affordable domestic alternatives are limited. Specialty chemical producers, who rely heavily on Chinese raw materials, are encountering production disruptions. Meanwhile, fertilizer manufacturers are seeing their profit margins squeezed due to tariffs on phosphate imports. In response, companies are increasing investments in R&D for bio-based alternatives, forming procurement alliances to strengthen purchasing power, and relocating production to tariff-neutral countries like Saudi Arabia.

The cooling water treatment chemicals market research report is one of a series of new reports that provides cooling water treatment chemicals market statistics, including cooling water treatment chemicals industry global market size, regional shares, competitors with a cooling water treatment chemicals market share, detailed cooling water treatment chemicals market segments, market trends and opportunities, and any further data you may need to thrive in the cooling water treatment chemicals industry. This cooling water treatment chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the cooling water treatment chemicals market are Dow Chemical Company, Ecolab Inc., Arkema S.A., Lonza Group Ltd, Solenis LLC, Kemira Oyj, Veolia Water Technologies & Solutions, Innospec Inc., Hydrite Chemical Co, Italmatch Chemicals S.p. A., DuBois Chemicals Inc., Ixom Operations Pty Ltd, Chem-Aqua Inc., Shandong Taihe Water Treatment Co Ltd, Aquapharm Chemicals Pvt. Ltd., Kurita Water Industries Ltd, Guardian Chemical Specialties Inc., Chemtex Speciality Limited, Accepta Ltd, BWA Water Additives UK Ltd., Zaozhuang Kerui Chemicals Co Ltd, Aries Chemical Inc., SNF Floerger.

Asia-Pacific was the largest region in the cooling water treatment chemicals market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the cooling water treatment chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cooling water treatment chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cooling water treatment chemicals market consists of sales of cleaners, filming inhibitors, alkalinity builders, anti-foaming agents, and oxygen scavengers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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