The ACS Desalination Outlook for 2025–2026: Navigating Growth, Innovation, and Water Security

As global water scarcity intensifies due to climate change, growing urban populations, and stressed freshwater resources, the desalination sector is entering a period of notable expansion and strategic relevance. The desalination and water reuse market is projected to experience robust growth through 2025 and 2026, driven by escalating demand for reliable water supplies and the imperative to build resilient infrastructure worldwide.

Strong Market Growth and Investment Trends

Global installed desalination capacity has risen sharply in recent years, with recent industry analysis reporting a 40 percent increase since 2020 and significant investments in both desalination and water reuse infrastructure. Utilities and industrial users are increasingly adopting unconventional water sources to mitigate drought risks and secure long-term water availability.

Market research forecasts continued expansion of the desalination equipment market, with projected growth driven by rising demand in water-scarce regions, ongoing urbanisation, and increasing industrial water needs. Advanced technologies such as reverse osmosis, energy-efficient systems, and AI-driven monitoring are enhancing operational performance and reducing lifecycle costs.

Regional Projects Reflect Strategic Priorities

Major desalination projects coming online or under development highlight the geographic breadth of demand:

• In the Middle East and North Africa, large-scale plants continue to be central to national water security strategies, with investments aimed at expanding capacity and integrating renewable energy sources to reduce carbon intensity.

• California’s Bay Area recently commissioned a new desalination facility to supply a significant portion of municipal water needs, underscoring the sector’s role in drought-resilience planning for U.S. utilities.

• In Africa and Asia, plants like the Mamelles facility in Senegal are scheduled to begin operations around 2025, adding critical potable water capacity for rapidly growing cities.

Further ambitious infrastructure developments are underway, including major conveyance projects that will link desalination outputs directly to urban and agricultural regions, exemplifying the strategic shift toward integrated water management planning.

Technological Advancements and Sustainability Focus

Technological innovation will be central to desalination’s near-term trajectory. Advances in membrane technology, hybrid systems, and energy recovery are reducing operational costs and environmental impact. Market trends point to sustained adoption of energy-efficient desalination solutions that leverage renewable energy sources, address brine management challenges, and improve overall sustainability.

Challenges and Strategic Considerations

Despite strong prospects, the industry faces ongoing challenges. High capital costs, energy consumption, and environmental considerations such as brine disposal and marine impact remain key issues for developers and regulators. Projects must balance immediate water security benefits with long-term sustainability planning, including integration with water recycling, conservation, and broader water-resource strategies.

Our Conclusions

Over 2025–2026, desalination is poised to play an increasingly central role in global water strategies. Expanding capacity, technological innovation, and strategic investments will enable utilities, governments, and industries to enhance water security in the face of mounting climate pressures. At the same time, continued attention to cost, sustainability, and environmental impact will shape how desalination contributes to comprehensive water management solutions.