Solar Water Desalination Plant Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Solar Water Desalination Plant market is estimated to be valued at USD 1.45 billion in 2024 and is expected to reach USD 3.85 billion by 2031, growing at a compound annual growth rate (CAGR) of 14.6% from 2024 to 2031. This significant growth reflects increasing investments and advancements in solar desalination technologies aimed at addressing global water scarcity challenges while promoting sustainable energy utilization.

Market trends indicate a strong shift towards integrating renewable energy sources, particularly solar power, with traditional desalination methods to reduce environmental impact and operational costs. Innovations in photovoltaic and membrane technologies are enhancing efficiency, driving adoption across water-stressed regions. Additionally, supportive government policies and rising awareness of water security are fueling demand for solar water desalination plants worldwide.

Segmental Analysis:

By Technology: Dominance of Multi-Effect Distillation (MED) in Solar Water Desalination

In terms of By Technology, Multi-Effect Distillation (MED) contributes the highest share of the market owing to its strong efficiency in utilizing solar thermal energy for desalination processes. MED technology operates by evaporating seawater multiple times across successive stages, allowing steam from one effect to serve as the heat source for the next, thereby optimizing energy usage. This makes it particularly well-suited for integration with solar thermal plants, enhancing the overall sustainability of the desalination process. The ability of MED systems to operate effectively at lower temperatures and pressures compared to other thermal methods such as Multi-Stage Flash (MSF) impacts the reduction of energy losses, lowering operational expenses in the long term. Additionally, MED offers greater adaptability in scaling capacity and handling variations in feedwater salinity, making it versatile for diverse geographical locations with fluctuating water quality. The technological maturity of MED, combined with its relatively high water recovery rates and reduced fouling tendencies, further accentuates its appeal among utilities aiming for consistent and reliable water production using renewable solar input. Consequently, sectors prioritizing energy efficiency and lifecycle cost reductions often favor MED installations, enabling this technology to maintain its dominant market position in solar water desalination.

By Application: Municipal Sector as the Primary Driver for Solar Water Desalination Adoption

By Application, the Municipal segment contributes the highest share of the solar water desalination plant market, driven primarily by the critical need for secure and sustainable water supplies for urban populations. Rapid urbanization and increasing water scarcity in many regions have compelled municipalities to seek alternatives to conventional freshwater sources, with solar desalination offering an environmentally friendly solution. The integration of solar-powered desalination units into municipal water systems helps reduce dependency on overexploited groundwater and conventional energy-intensive desalination processes. Furthermore, governments and local authorities are often incentivized or mandated to incorporate renewable energy solutions in public infrastructure projects, propelling the adoption of solar desalination for municipal supply. This segment benefits from stable funding mechanisms and larger-scale projects that ensure better economies of scale for plant construction and maintenance. Additionally, the consistent daily demand for potable water in urban areas guarantees steady operational output, justifying investments in solar desalination technologies. The municipal sector also benefits from evolving policies aimed at lowering carbon footprints and enhancing climate resilience, positioning solar water desalination as a strategic resource for sustainable urban water management.

By Plant Capacity: Prevalence of Small-Scale (< 5,000 m³/day) Plants Due to Flexibility and Accessibility

In terms of By Plant Capacity, the segment of plants with a capacity of less than 5,000 cubic meters per day commands the highest share of the market. This trend is largely driven by the flexibility and ease of deployment offered by small-scale solar water desalination plants. Smaller plants require lower initial capital expenditure, making them more accessible for remote communities, off-grid locations, or agricultural settings where large centralized infrastructure may not be viable. The modular nature of small solar desalination units facilitates phased expansions and easier maintenance, which is particularly attractive for emerging markets and regions with limited technical expertise. Additionally, smaller capacity plants are often designed with simpler operational frameworks, reducing the need for extensive skilled labor and complex logistics. These factors allow municipalities and private entities to adopt solar desalination solutions tailored to localized demand without incurring the risks associated with larger projects. Improved solar panel technologies and energy storage systems have also enhanced the efficiency and reliability of small-scale plants, making them a preferred choice for areas facing intermittent solar irradiance or seasonal water scarcity. This segment's growth is further supported by increasing efforts to provide decentralized water treatment solutions that promote water security and economic development in rural and peri-urban areas.

Regional Insights:

Dominating Region: Middle East and Africa

In the Middle East and Africa, the dominance in the Solar Water Desalination Plant market is driven by the region's acute water scarcity challenges and abundant solar energy potential. Many countries in this region face critical freshwater shortages, motivating governments and private sectors to invest heavily in sustainable desalination solutions powered by renewable sources. Government policies strongly support renewable energy integration, with several national initiatives targeting large-scale solar desalination projects as strategic components for water security. The presence of well-established energy companies and engineering firms specializing in large infrastructure projects further strengthens the market ecosystem. Trade dynamics also benefit from regional cooperation agreements and investments from international firms focusing on green technologies. Notable companies such as ACWA Power (Saudi Arabia), Masdar (UAE), and IDE Technologies (Israel) play pivotal roles by developing cutting-edge solar desalination plants that combine efficiency with environmental sustainability.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the Solar Water Desalination Plant market owing to rapid urbanization, expanding industrial zones, and increasing water demand amidst constrained freshwater resources. Countries like India, China, and Australia are intensifying efforts to harness solar energy to reduce reliance on conventional desalination methods, which are often energy-intensive and environmentally taxing. Supportive government policies promoting renewable energy adoption, coupled with increasing foreign direct investments and public-private partnerships, create a conducive environment for market expansion. The region hosts a vibrant industrial ecosystem that encompasses technology innovators, plant manufacturers, and system integrators focusing on scalable and modular solar desalination technologies. Leading corporations such as Tata Power Solar (India), Sungrow Power Supply (China), and Redflow (Australia) contribute significantly by advancing innovative solutions catering to both urban and rural water requirements.

Solar Water Desalination Plant Market Outlook for Key Countries

Saudi Arabia

The Saudi Arabian market benefits from the nation's strategic commitment to diversify its energy matrix through the Vision 2030 framework, which strongly emphasizes renewable energy adoption to address water scarcity. Major players like ACWA Power have spearheaded large-scale solar desalination projects, combining advanced solar thermal and photovoltaic technologies to reduce the environmental footprint of traditional desalination. Investments in research and collaboration with global technology providers position Saudi Arabia as a regional leader in sustainable water production.

India

India's market dynamics are shaped by a combination of severe water stress in several regions and escalating energy costs, driving a pivot toward solar-powered desalination. Government programs such as the National Solar Mission facilitate subsidies and policy support for renewable energy integration. Tata Power Solar and Thermax are key contributors, delivering turnkey solutions that target both coastal and inland water-stressed areas. The focus on modular and scalable plants enhances adaptability for diverse municipal and agricultural applications.

United Arab Emirates

The UAE leverages its vast solar resources alongside high capital availability to promote large-scale solar desalination infrastructure. Masdar and Dubai Electricity and Water Authority (DEWA) have launched flagship projects, integrating cutting-edge concentrated solar power (CSP) with desalination to enhance efficiency. The UAE's conducive regulatory environment and emphasis on sustainability attract global partnerships, fostering innovation and export potential for adapted solar desalination technologies.

China

China continues to lead the Asia Pacific market with aggressive investments in renewable energy and advanced desalination facilities to ensure water security amidst industrial expansion. Companies like Sungrow Power Supply and China National Chemical Corporation contribute through comprehensive projects integrating solar photovoltaic arrays with reverse osmosis desalination plants. Government-led initiatives including the ‘Blue Sky' strategy underline China's dual focus on environmental protection and resource optimization.

Australia

Australia's market growth is propelled by increasing drought occurrences and a national commitment to reduce carbon emissions in water treatment processes. Local companies such as Redflow and Planet Innovation emphasize flexible and energy-efficient solar desalination solutions, targeting remote and off-grid communities. Government grants supporting clean water initiatives and research into hybrid desalination systems reinforce Australia's advancement toward sustainable water infrastructure.

Brazil

Brazil is emerging as a promising market with vast coastal regions facing water contamination and uneven freshwater distribution. The government supports integration of renewable energy with water treatment through environmental policies and funding mechanisms. Corporations including Enel Green Power and local engineering firms are pioneering pilot solar desalination plants, focusing on combining solar energy with traditional desalination to improve rural water supply, particularly in northeastern states. This gradual adoption reflects growing awareness and infrastructural investments for long-term water sustainability.

Market Report Scope

Market Segmentation

Technology Insights (Revenue, USD, 2020 - 2032)

• Multi-Effect Distillation (MED)
• Reverse Osmosis (RO)
• Multi-Stage Flash (MSF)
• Electrodialysis
• Others

Application Insights (Revenue, USD, 2020 - 2032)

• Municipal
• Industrial
• Agricultural
• Residential
• Others

Plant Capacity Insights (Revenue, USD, 2020 - 2032)

• < 5,000 m³/day
• 5,000-20,000 m³/day
• 20,000 m³/day
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• IDE Technologies
• Aquatech International
• Acciona Agua
• Abengoa
• Hytech Power
• Tata Projects
• Solar Spring
• Seawater Greenhouse Ltd
• AquaVenture Holdings
• EnerSun
• DNV GL