Produced Water Treatment Market

Market Definition

The market encompasses services, technologies, and solutions for managing and treating water generated during oil and gas production activities. It includes chemical, physical, and other treatment methods to remove contaminants.

It spans applications across both onshore and offshore oil and gas operations, addressing the distinct challenges of each setting. The report offers a thorough assessment of the main factors driving market expansion, along with detailed regional analysis and the competitive landscape influencing industry dynamics.

Produced Water Treatment Market Overview

The global produced water treatment market size was valued at USD 8,120.0 million in 2023 and is projected to grow from USD 8,637.7 million in 2024 to USD 14,087.5 million by 2031, exhibiting a CAGR of 7.24% during the forecast period.

Market growth is driven by an increased emphasis on water reuse and sustainability. Amid growing global water scarcity, the oil and gas industry is increasingly turning to treatment technologies that enable the recycling of produced water for reuse in various operations, agriculture, and potable water production in water-stressed regions.

Major companies operating in the produced water treatment industry are BioPetroClean, Veolia Water Technologies, Aquatech, Cannon Artes S.P.A., OVIVO Inc., SLB, TETRA Technologies, Inc., Minerals Technologies Inc., Weatherford, DuPont, Siemens AG, Industrie De Nora S.p.A., NOV, TechnipFMC, and Baker Hughes Company.

Moreover, advancements in water treatment technologies are supporting market expansion. Innovations such as cutting-edge filtration systems, membrane-based processes, and hybrid solutions that integrate physical, chemical, and biological treatment methods are enhancing the efficiency and cost-effectiveness of treating produced water.

These technologies enhance contaminant removal, minimize reliance on chemical additives, and improve treatment performance. Their ongoing advancement offers more flexible, sustainable, and cost-efficient solutions, fueling market growth.

• In April 2025, WaterBridge initiated an open season to gather commitments for the development of the Speedway Pipeline. This project will feature dual 30-inch pipelines running through the Northern Delaware Basin, linking Lea and Eddy counties to pore space on the Central Basin Platform, with the goal of enhancing produced water handling capacity in the region.

Key Highlights:

1. The produced water treatment industry size was recorded at USD 8,120.0 million in 2023.
2. The market is projected to grow at a CAGR of 7.24% from 2024 to 2031.
3. North America held a share of 36.55% in 2023, valued at USD 2,967.9 million.
4. The chemical treatment segment garnered USD 3,843.2 million in revenue in 2023.
5. The onshore segment is expected to reach USD 8,457.9 million by 2031.
6. Asia Pacific is anticipated to grow at a CAGR of 7.96% over the forecast period.

Market Driver

"Increased Focus on Water Reuse and Sustainability"

The expansion of the produced water treatment market is driven by the increasing focus on water reuse and sustainability. With growing global water scarcity, the demand for effective treatment solutions is rising, particularly in water-stressed regions.

Oil and gas operations are facing pressure to reduce reliance on fresh water sources, making produced water resuse essential. This shift is supported by environmental considerations and economic benefits of recycling water for various operational uses, including irrigation, industrial processes, and reinjection for enhanced oil recovery.

The market is experiencing a surge in demand for advanced treatment technologies that enable the safe and sustainable reuse of produced water, contributing to a more sustainable and resource-efficient energy sector.

• In January 2025, the European Union reported that water scarcity remains a critical issue in southern Europe, with about 30% of the population residing in areas under permanent stress and up to 70% affected by seasonal summer shortages. Agriculture, public water supply, and tourism  are key contributors to this strain. The issue further extends beyond southern Europe, affecting multiple river basins due to high urban population density and water extraction for public supply, energy, and industry.

Market Challenge

"Complexity of Managing High Volumes of Highly Contaminated Produced Water"

The major challenge in the produced water treatment market is the complexity of treating high volumes of highly contaminated produced water. Produced water often contains diverse pollutants, including hydrocarbons, heavy metals, salts, and suspended solids, making treatment resource-intensive.

The variability in water composition, depending on the source and geographical location, further complicates the treatment process, often requiring tailored solutions. This increases operational costs and reduces efficiency.

A potential solution to this challenge is the adoption of advanced hybrid treatment technologies that combine multiple treatment methods such as physical filtration, chemical treatment, and biological processes into a single integrated system.

These solutions are more adaptable and efficient, allowing operators to handle various water compositions effectively while reducing costs and improving overall water recovery and reuse.

Market Trend

"Technological Advancements in Water Treatment Solutions"

A key trend in the produced water treatment market is innovations in water treatment solutions. Companies are increasingly investing in cutting-edge technologies to enhance the efficiency and sustainability of produced water treatment processes.

The development of advanced filtration and membrane technologies, which offer higher contaminant removal efficiency while reducing the need for chemical additives is supporting this trend.

Additionally, hybrid treatment methods that integrate chemical, physical, and biological processes are gaining traction, as they provide more comprehensive solutions for handling complex produced water compositions.

These technologies improve the water treatment, performance and lower operational costs while minimizing the environmental footprint. This aligns with the industry's growing focus on sustainable water management practices.

• In December 2024, TETRA Technologies, Inc. unveiled the commercial launch of TETRA Oasis TDS, a comprehensive water treatment and desalination technology tailored for beneficial re-use and mineral extraction applications in produced water from oil and gas operations. The company also completed a successful commercial pilot in the Delaware Basin, meeting Texas Railroad Commission standards and passing Whole Effluent Toxicity (WET) testing.

Produced Water Treatment Market Report Snapshot

Market Segmentation

• By Treatment Type (Chemical Treatment, Physical Treatment, and Others): The chemical treatment segment earned USD 3,843.2 million in 2023 due to its effectiveness in breaking emulsions and preventing corrosion and microbial growth in complex water compositions.
• By Application (Onshore and Offshore): The onshore segment held a share of 57.32% in 2023, fueled by the higher number of onshore wells and easier access to treatment infrastructure.

Produced Water Treatment Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America produced water treatment market share stood at around 36.55% in 2023, valued at USD 2,967.9 million. This dominance is primarily attributed to the region’s strong oil and gas industry in the United States and Canada, particulaly in shale gas and tight oil operations.

Environmental regulations, along with growing pressure to optimize water resource management have led to increased adoption of advanced treatment technologies. Additionally, the presence of established service providers and developed infrastructure boosts regional market expansion.

• In February 2024, Five Point Energy and Bechtel announced the continued pilot operations of their Low Energy Ejector Desalination System in Midland, Texas. Designed to address water scarcity challenges, LEEDS efficiently recovers more than 50% of treated produced water for reuse, offering a cost-effective solution for converting produced water into valuable resources for agricultural, industrial, and community applications.

Asia Pacific produced water treatment industry is poised to grow at a CAGR of 7.96% over the forecast period. This growth is supported by rising energy demand, rapid urbanization, and expanding oil and gas exploration across countries such as China, India, Indonesia, and Australia.

Governments are introducing policies focused on responsible water use and environmental management, promoting greater investment in treatment systems. The increasing need to address water scarcity and reuse treated produced water for agriculture or industrial purposes is further contributing to regional market expansion.

Additionally, the emergence of local service providers and growing awareness of operational sustainability are influencing regional market.

Regulatory Frameworks

• In the U.S., the Clean Water Act (CWA) is the primary regulatory framework governing the discharge of produced water into surface waters. The CWA aims to restore and maintain the integrity of the nation's waters by preventing point-source pollution.
• In India, the Environment (Protection) Act, 1986, governs produced water discharge. Specific standards for oil and gas operations are issued by the Central Pollution Control Board (CPCB), including limits on oil and grease, pH, and total dissolved solids. Both offshore and onshore discharges must adhere to these standards and undergo environmental audits and monitoring.

Competitive Landscape

Companies in the produced water treatment industry are heavily investing in R&D to innovate more efficient and cost-effective treatment technologies, including compact modular systems and advanced chemical formulations tailored to varying water chemistries.

Strategic collaborations and partnerships with oil and gas operators are employed to secure long-term service contracts and expand project portfolios, particularly in regions with growing exploration activities.

Mergers and acquisitions are enabling companies to diversify their service offerings, gain access to proprietary technologies, and strengthen their regional footprints.

Numerous players are prioritizing the development of integrated treatment solutions that combine physical, chemical, and biological methods to meet evolving environmental standards and operational requirements.

Additionally, there is a growing emphasis on digitalization, with the integration of automation, remote monitoring, and data analytics to improve system efficiency and reduce operational costs. These strategies reflect the industry's focus on long-term sustainability, operational scalability, and adaptability to regional regulatory frameworks.

• In August 2024, LiqTech International, Inc. received an order from a leading global integrated energy company to supply a pilot system for produced water treatment in the U.S. The initiative aims to support the design of future commercial systems for onshore oil and gas applications, strengthening the collaboration between the two companies.

List of Key Companies in Produced Water Treatment Market:

• BioPetroClean
• Veolia Water Technologies
• Aquatech
• Cannon Artes S.P.A.
• OVIVO Inc.
• SLB
• TETRA Technologies, Inc.
• Minerals Technologies Inc.
• Weatherford
• DuPont
• Siemens AG
• Industrie De Nora S.p.A.
• NOV
• TechnipFMC
• Baker Hughes Company

Recent Developments (Partnerships)

• In March 2025, TETRA Technologies, Inc. collaborated with EOG Resources, Inc. to pilot the TETRA Oasis Total Desalination Solution (TDS), a system for treating and desalinating produced water from oil and gas operations. The solution leverages proprietary processes and exclusive membrane technologies to handle varying water qualities across different basins.
• In July 2024, LiqTech International, Inc. delivered a commercial pilot unit to National Energy Services Reunited Corp. (NESR) for produced water treatment in the Middle East. The containerized PureFlow system, featuring LiqTech’s silicon carbide ceramic ultrafiltration technology, is designed to support re-injection and reuse,  while meeting evolving regulatory requirements in the Gulf Cooperation Council countries.