China Water Desalination Market is expected to reach US$ 4.66 billion in 2033, up from US$ 1.84 billion in 2024, at a CAGR of 10.88% during 2025-2033. Freshwater shortage, industrialization, and the government's initiative to increase desalination plants are driving growth. Sophisticated reverse osmosis and distillation technologies are expanding capacities to supply water.
The uses of water desalination cut across residential, commercial, and industrial areas. It supplies drinking water to coastal towns, aids agriculture in dry areas, and delivers process water for industries such as power generation, oil and gas, and manufacturing. Desalinated water also plays an important role during emergencies when normal freshwater sources are not available.
In China, water desalination popularity is growing rapidly with increased water shortage in northern parts of the country, industrial water demand, and government efforts towards water sustainability. Large desalination plants along China's southeastern coast are enabling urban cities and industrial bases to obtain stable water supplies, putting the nation at the center of the international desalination industry.
China Water Desalination Market Outlook
Water desalination is the treatment of seawater or brackish water by removing salt, minerals, and other contaminants to make fresh, drinkable water available for human use and industry. The technology is vital in areas suffering from freshwater shortages as a result of population increase, industrialization, and global climate change. Desalination is most commonly obtained by using techniques like reverse osmosis (RO), multi-stage flash (MSF) distillation, and electrodialysis, all of which convert saline water into useful resources.The uses of water desalination cut across residential, commercial, and industrial areas. It supplies drinking water to coastal towns, aids agriculture in dry areas, and delivers process water for industries such as power generation, oil and gas, and manufacturing. Desalinated water also plays an important role during emergencies when normal freshwater sources are not available.
In China, water desalination popularity is growing rapidly with increased water shortage in northern parts of the country, industrial water demand, and government efforts towards water sustainability. Large desalination plants along China's southeastern coast are enabling urban cities and industrial bases to obtain stable water supplies, putting the nation at the center of the international desalination industry.
Growth Drivers in the China Water Desalination Market
Increasing Freshwater Shortage
China is facing a desperate crisis of freshwater shortage, an issue especially severe in its northern provinces. There, the insistent rhythm of urbanization and industrialization places immense stress upon already overstretched natural resources. It is compounded by scarce rainfall and a baffling imbalance in water distribution, where some regions face desperate shortages while others are relatively better supplied. To this growing crisis, there has been a wide spread of serious investments which aim to construct sophisticated desalination plants. These plants mark a strategic transition where cities and industries seriously look for reliable alternative water sources to maintain their expansion and cope with the needs of their fast-growing populations. This pressing search for solutions is fast changing the scenery, driving a large market demand for massive desalination schemes promising to relieve pressures of freshwater shortages and secure a more water-secure future for the region. By 2050, more than 3,000 sub-basins are likely to be threatened by both quality and quantity of water risks. This scenario would affect another 40 million square kilometers of basin area and influence nearly 3 billion more individuals who would have difficulty accessing clean water. China will probably be among the areas most impacted by this situation.Government Initiatives and Investments
The government of China is aggressively promoting the development of water desalination, supported by a package of accommodative policies, open-ended subsidies, and its strategic placement in the overall scheme of national water security. Major projects have been initiated in coastal provinces such as Tianjin and Shandong, strategically located to amplify the country's overall desalination capacity. This strong policy action not only demonstrates the government's dedication to water scarcity mitigation but also acts as an accelerator of sustainable market development in the desalination industry, guaranteeing a secure and expansive future for water supplies. The 2021 written national action plan proposed to boost the desalination capacity to 3.5 million cubic meters per day by 2025 and to encourage the application of desalinated seawater in municipal water supplies. The national government, as part of the 14th Five-Year-Plan, has a vision to be the world's leader in sustainable water solutions. The most recent projects fit into both plans, both in terms of scale and innovation.Technological Innovations in Desalination
Combining energy-efficient reverse osmosis (RO) and hybrid desalination technologies is greatly improving cost-effectiveness in the water treatment industry. These innovative technologies not only reduce operating costs but also increase overall efficiency in desalination plants. Optimizing performance, they improve viability and attractiveness of large-scale projects, thus driving market growth in China. As these new technologies become ingrained, they open doors to a more sustainable and economically viable future for water resource management. March 2025, ACWA Power, the world's largest private water desalination business and energy transition leader, has inaugurated its first overseas Innovation Centre in Pudong New Area, Shanghai. The centre, in which RMB 20 million (USD 2.8 million) has been invested, will be dedicated to photovoltaics, wind, energy storage, green hydrogen, and seawater desalination and features an R&D Centre as well as a Green Energy Laboratory. It has been awarded the 'Group Open Innovation (GOI)' by the Pudong New Area Government.Issues in the China Water Desalination Market
High Operating and Energy Costs
In spite of the incredible advancements in technology, the process of desalination remains to be defined by its high energy requirements and corresponding costs. The energy needs of large-scale desalination plants can increase operational costs and result in a heavy financial burden. Such an economic hurdle tends to limit the use of such technologies, particularly in inland areas and smaller municipalities that do not have the resources to sustain these energy-intensive operations.Environmental Concerns
Desalination operations, although vital to meet water shortage demands, generate heavy brine waste, which poses serious threats to marine life if not disposed of sensibly. The dilemma of disposing of the concentrated saltwater in an environmentally responsible manner is further complicated by tightening environmental legislation. In China, such legislative frameworks combined with the acute need for sustainable brine disposal solutions pose significant challenges for the establishment and operation of desalination facilities. Balancing the need for clean water with the conservation of sensitive marine ecosystems is a constant battle that needs innovative solutions and close monitoring.China Water Desalination Reverse Osmosis Market
The RO segment controls China's desalination industry owing to its efficiency and relatively lower energy costs vis-à-vis thermal approaches. RO membranes are applied extensively in coastal cities for both industrial and municipal water supply. Increased usage of advanced membrane technologies is driving efficiency, which makes RO the favored option for forthcoming desalination additions in China.China Municipal Water Desalination Market
Municipal desalination in China is increasing as seacoast cities look for sustainable sources of freshwater to meet growing populations. Shanghai, Shenzhen, and Tianjin projects represent the most prominent examples of municipal projects. Such plants provide drinking water to metropolitan regions where there is insufficient groundwater and river supplies, providing long-term water security with increasing urbanization.China Industrial Water Desalination Market
Industrial desalination demand is on the rise in China's manufacturing and energy industries. Power plants, chemical plants, and refineries demand huge amounts of process water. Desalination provides a reliable source of water in water-scarce areas, primarily for industrial clusters along the coast. Use of large-scale desalination decreases freshwater reliance, which is consistent with China's industrialization and sustainability objectives. Apr 2025, SUEZ has initiated the largest industrial membrane seawater desalination plant in China for Wanhua Chemical's Penglai Industrial Park to satisfy industrial demand with the limited water resources.China Seawater Desalination Market
Seawater desalination is the biggest segment in China because of the extensive coastline of the country. Coastal provinces' desalination plants supply water for urban, industrial, and agricultural use. Seawater projects are dominating the national plans, with expansions at Bohai Bay, Yangtze Delta, and Pearl River Delta to serve urbanization and industrial development.China River Water Desalination Market
Desalination of Chinese river water targets brackish and polluted river sources. Although smaller in size compared to seawater projects, the market is increasing in inland areas where salinity and pollution limit the use of freshwater. Advanced membrane and electrodialysis technologies are employed by industries and municipal plants to provide clean water for drinking and operations.Shanghai Water Desalination Market
Shanghai is a critical desalination hub due to its heavy population density and industrialization. Different projects along the Yangtze Delta employ hybrid systems and reverse osmosis to supplement the municipal water supply. The fast urbanization and industrialization of the region provide a strong case for desalination to cater to the economic rise of the city and to reduce water stress. In April 2025, Herui Group and Informa Markets will organize WATERTECH CHINA 2025, the world's largest international exhibition covering process, drinking, and wastewater solutions. This event will be back for its 17th edition at the National Exhibition and Convention Center in Shanghai.Beijing Water Desalination Market
Though landlocked, Beijing relies on brackish water and coastal-project-imported desalinated water to counter extreme water shortages. Desalination-based water transfer projects are being invested in by the government. Industrial usage and municipal emergency supply propel market demand, underscoring desalination's strategic position in northern China's water management strategies.Shenzhen Water Desalination Market
Shenzhen's market is growing with its role as a central manufacturing and technology center. Being close to the South China Sea, massive seawater desalination plants have the capability to supply industrial and municipal water. Industrial demand and continuous population growth will drive the city's dependence on desalination technologies.Chengdu Water Desalination Market
Chengdu is an inland city that emphasizes brackish water desalination and high-level water treatment solutions in preference to enormous seawater projects. Industrial parks and high-tech industries depend upon treated and desalinated water to supplement conventional sources. Expansion is augmented by the city's growing industrialization and local water sustainability efforts.Market Segmentation
Technology
- Reverse Osmosis
- Multi-stage flash (MSF) Distillation
- Multi-effect (MED) distillation
- Others
Application
- Municipal
- Industrial
- Others
Water Source
- Seawater
- Brackish Water
- River Water
- Others
Cities
- Shanghai
- Beijing
- Shenzhen
- Chongqing
- Guangzhou
- Suzhou
- Chengdu
- Hangzhou
- Tianjin
- Rest of Others
All companies have been covered with 5 Viewpoints
- Overviews
- Key Person
- Recent Developments
- SWOT Analysis
- Revenue Analysis
Key Players Analysis
- Guangzhou KangYang Seawater Desalination Equipment Co.
- Genesis Water Technologies
- Biwater
- Aquatics International
- IDE Technologies
- Acciona SA
- SUEZ Environment
- Veolia Environment SA
Table of Contents
1. Introduction3. Executive Summary
2. Research & Methodology
4. Market Dynamics
5. China Water Desalination Market
6. Market Share Analysis
7. Technology
8. Application
9. Water Source
10. Cities
11. Investment and Project Analysis
12. Porter's Five Forces Analysis
13. SWOT Analysis
14. Key Players Analysis
Companies Mentioned
- Guangzhou KangYang Seawater Desalination Equipment Co.
- Genesis Water Technologies
- Biwater
- Aquatics International
- IDE Technologies
- Acciona SA
- SUEZ Environment
- Veolia Environment SA
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | August 2025 |
| Forecast Period | 2024 - 2033 |
| Estimated Market Value ( USD | $ 1.84 Billion |
| Forecasted Market Value ( USD | $ 4.66 Billion |
| Compound Annual Growth Rate | 10.8% |
| Regions Covered | China |
| No. of Companies Mentioned | 8 |
