Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| Growth Rate | 8.00% CAGR |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
India Cooling Water Treatment Chemicals Market Analysis
The India Cooling Water Treatment Chemicals Market is expected to register a CAGR of greater than 8% during the forecast period.
India's industrial landscape is undergoing significant transformation, particularly in sectors requiring extensive cooling systems. The country's position as the third-largest producer and consumer of electricity globally has created substantial demand for industrial water treatment chemicals solutions. The power sector's robust growth is evidenced by the total installed generation capacity distribution as of March 2023, with the private sector contributing 210,278 MW, followed by the state sector at 105,726 MW, and the central sector at 100,055 MW. This extensive power infrastructure requires sophisticated cooling systems, driving the demand for cooling water treatment chemicals.
The chemical manufacturing sector is experiencing remarkable growth, with the industry market size projected to reach USD 300 billion by 2025. The sector serves as a crucial building block for various end-user industries, including food and beverage processing, personal care, and agrochemicals. The government's emphasis on reducing dependency on imports and promoting domestic manufacturing has led to increased investments in chemical manufacturing facilities, subsequently driving the demand for cooling tower chemicals and water treatment chemicals.
Infrastructure development has received significant attention, with foreign direct investment (FDI) inflow in the power sector reaching USD 16.57 billion between April 2000 and December 2022. Notable projects include the implementation agreement between the Government of Himachal Pradesh and NHPC Limited in 2023 to develop the 500 MW Dugar Hydroelectric Project in the Chamba district. Such large-scale projects demonstrate the continuing expansion of power infrastructure and the corresponding need for efficient water treatment chemicals systems.
The industry is witnessing a shift toward sustainable and environmentally friendly solutions, with an increasing focus on green chemicals and advanced treatment technologies. Companies are investing in research and development to create innovative solutions that offer improved efficiency while minimizing environmental impact. The emphasis on water conservation and sustainable practices has led to the adoption of advanced monitoring systems and automated chemical dosing solutions, enabling better control over water treatment processes and reduced chemical consumption.
India Cooling Water Treatment Chemicals Market Trends
Increasing Demand from Power Industry
The power industry represents one of the major drivers for cooling tower chemicals in India, driven by the rapid expansion of power generation infrastructure and growing electricity demand. According to the Ministry of Power, as of February 2023, India's total installed generation capacity reached 412,212 Megawatts (MW), with fossil fuel-powered plants contributing 57.4% of this capacity. The sector's critical need for cooling tower treatment chemicals stems from the extensive use of cooling systems in power plants, where these chemicals play a vital role in maintaining equipment efficiency and preventing corrosion, scaling, and biological fouling. The government's focus on achieving universal electrification and establishing a single national grid has further accelerated the sector's growth, with power generation surging to the highest level in three decades in 2022-23.
The growth trajectory of India's power sector is further evidenced by significant recent developments and investments. According to the Central Electricity Authority, India may need to commission over 28 GW of new coal-fired power plants by 2032 to meet increasing power demands. Various government schemes, such as the Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), are driving widespread electrification across India. Notable recent projects include the implementation agreement between the Government of Himachal Pradesh and NHPC Limited in August 2022 to develop the 500 MW Dugar Hydroelectric Project. Additionally, as of March 31, 2023, the country has 20 projects comprising 39 units with a total capacity of 27,410 Megawatts (MW), indicating substantial growth in power infrastructure that will drive demand for water treatment chemicals.
Understand The Key Trends Shaping This Market
Download PDF
Other Drivers
The demand for cooling tower treatment chemicals is significantly driven by diverse industrial applications, particularly in Heat Ventilation and Air Conditioning (HVAC), oil and gas refineries, pharmaceuticals, and chemical manufacturing sectors. In the HVAC industry, the rapid growth of data centers represents a major driver, with the National Association of Software and Service Companies (NASSCOM) projecting the data center industry to reach USD 4.6 billion by 2025. The oil and gas sector's expansion also contributes substantially to market growth, with India maintaining its position as the world's third-largest oil consumer and fourth-largest LNG importer, driving the need for cooling tower chemicals in refineries and processing facilities.
The chemical and pharmaceutical sectors further augment the demand for cooling tower biocides. According to the Department of Chemicals & Petrochemicals and the Ministry of Chemicals & Fertilizers, the total chemical production stood at 907,639 MT in August 2022, while petrochemical production reached 1,727,019 MT. The pharmaceutical industry, being the largest provider of generic drugs globally with a network of around 10,500 companies, requires extensive cooling systems for various processes. Recent developments include significant investments in new facilities, such as Balaxi Pharmaceuticals' new US-FDA compliant plant in Telangana and Sandoz Technical Operations' manufacturing facility in Mumbai, both commissioned in 2022-2023, indicating growing demand for HVAC water treatment chemicals across these industrial sectors.
Segment Analysis: Chemical Type
Corrosion and Scale Inhibitors Segment in India Cooling Water Treatment Chemicals Market
Corrosion and Scale Inhibitors dominate the India cooling water treatment chemicals market, commanding approximately 63% market share in 2024. These cooling system corrosion inhibitors play a crucial role in preventing scale formation and protecting metal surfaces from corrosion in cooling systems. The segment's prominence is driven by its widespread application across power generation, oil and gas refineries, and chemical manufacturing industries where maintaining equipment integrity is paramount. The segment is also experiencing the fastest growth rate in the market, projected to grow at nearly 9% during 2024-2029, driven by increasing industrialization and the critical need to extend equipment life spans. The effectiveness of these inhibitors in preventing deposit formation and reducing maintenance costs has made them indispensable in industrial operations. Modern corrosion and scale inhibitors are increasingly focusing on environmentally friendly formulations while maintaining high performance standards, addressing both regulatory requirements and sustainability concerns.
Remaining Segments in Chemical Type
The other significant segments in the market include cooling tower biocides, pH Adjusters, and other chemical types such as defoamers and bio-dispersants. Cooling tower biocides play a vital role in controlling microbial growth and preventing biofilm formation in cooling systems, particularly crucial in the food and beverage and pharmaceutical industries where maintaining sterile conditions is essential. pH Adjusters are fundamental in maintaining optimal water chemistry and enhancing the effectiveness of other treatment chemicals. The other chemical types segment, comprising defoamers and bio-dispersants, addresses specific operational challenges such as foam control and deposit removal, contributing to the overall efficiency of cooling systems. These segments collectively provide comprehensive solutions for various water treatment challenges, ensuring optimal cooling system performance across different industrial applications.
Segment Analysis: End-User Industry
Power Generation Segment in India Cooling Water Treatment Chemicals Market
The power generation sector dominates the India cooling water treatment chemicals market, holding approximately 33% of the market share in 2024. This significant market position is driven by the country's status as the third-largest producer and consumer of electricity globally, with an installed capacity of over 411 GW as of early 2023. The sector's dominance is further reinforced by the government's focus on achieving 'power for all' initiatives and substantial investments in the energy sector, with power generation projects accounting for 24% of the total expected capital expenditure in the National Infrastructure Pipeline. The increasing electricity consumption, which reached significant levels with double-digit growth, coupled with the government's commitment to expanding manufacturing capacity, continues to drive the demand for cooling system chemicals in power plants. Additionally, the sector's growth is supported by various government schemes such as the Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY), which aim to augment widespread electrification across India.
Oil and Gas Segment in India Cooling Water Treatment Chemicals Market
The oil and gas segment is projected to exhibit the fastest growth in the India water treatment chemicals market during 2024-2029, with an estimated CAGR of approximately 9%. This robust growth is primarily driven by significant expansion activities in the refinery sector, including major projects like the Gujarat refinery expansion and the establishment of new refineries. The segment's growth is further supported by India's position as one of the largest non-OECD contributors to global petroleum consumption growth, with petroleum product consumption showing substantial year-over-year increases. The government's supportive policies, including 100% Foreign Direct Investment (FDI) allowance in many areas of the sector, are attracting significant investments in export-oriented infrastructure such as product pipelines and export terminals. The increasing demand for oil and gas, coupled with the expansion of refining capacities, is expected to drive substantial growth in the demand for cooling tower water treatment chemicals in this sector.
Remaining Segments in End-User Industry
The other significant segments in the India cooling water treatment chemicals market include chemical manufacturing, food and beverage, pharmaceutical industry, and various other end-user industries. The chemical manufacturing sector plays a crucial role due to its extensive cooling requirements in various processes and its position as a building block for multiple industries. The food and beverage segment maintains steady demand due to its essential cooling requirements in processes like pasteurization and sterilization. The pharmaceutical industry, though smaller in market share, represents a critical segment due to its stringent water quality requirements and continuous cooling needs in drug manufacturing processes. Other end-user industries, including sugar processing, textile and dyes, and steel and metal industries, collectively contribute to the market's diversity and overall growth, each with their specific cooling tower applications and chemical treatment requirements.
India Cooling Water Treatment Chemicals Industry Overview
Top Companies in India Cooling Water Treatment Chemicals Market
The cooling water treatment chemicals market in India is characterized by companies focusing on continuous innovation and technological advancement. Leading players are investing heavily in research and development to develop eco-friendly and biodegradable chemical solutions while implementing digital monitoring and control systems for enhanced performance. Companies are expanding their service offerings beyond chemical supply to include comprehensive water management solutions, technical support, and automated dosing systems. Strategic partnerships with end-users and distributors have become crucial for maintaining market position, while operational agility is demonstrated through customized solutions for specific industries. The market leaders are also emphasizing value-added services like water analysis, performance reporting, and troubleshooting support to differentiate their offerings and strengthen customer relationships.
Consolidated Market Led By Domestic Players
The Indian cooling water treatment chemicals market exhibits a highly consolidated structure dominated by established domestic manufacturers with strong local manufacturing capabilities and distribution networks. Companies like Chembond Chemicals and Sicagen have established themselves as market leaders through their extensive product portfolios and deep understanding of local industrial requirements. While global players like Ecolab and Solenis maintain a presence, domestic companies hold significant market share due to their strong relationships with local industries and ability to provide customized solutions at competitive prices.
The market shows limited merger and acquisition activity, with companies primarily focusing on organic growth through capacity expansion and technology upgrades. The competitive landscape is characterized by a mix of large chemical conglomerates offering diverse product portfolios and specialized water treatment chemicals manufacturers. Market entry barriers are moderately high due to the technical expertise required, established customer relationships, and the need for extensive service networks, which has helped maintain the consolidated nature of the market.
Innovation and Service Excellence Drive Growth
Success in the cooling water treatment chemicals market increasingly depends on companies' ability to offer integrated solutions combining chemical expertise with digital capabilities. Market incumbents need to focus on developing environmentally sustainable products, investing in smart water management technologies, and expanding their service infrastructure to maintain their competitive edge. Building strong technical support teams, establishing research and development facilities, and creating customer-centric solutions are becoming crucial factors for maintaining market leadership.
For new entrants and smaller players, opportunities lie in developing niche solutions for specific industries or focusing on emerging technologies like bio-based chemicals and automated monitoring systems. The market's future will be shaped by increasing environmental regulations, growing water conservation needs, and rising demand for cost-effective solutions. Companies that can address these challenges while providing comprehensive industrial water treatment chemicals solutions will be better positioned for growth. The relatively low threat of substitution from alternative technologies and high customer switching costs provide stability for established players, while the concentrated nature of key end-user industries necessitates strong relationship management capabilities.
India Cooling Water Treatment Chemicals Market Leaders
-
Suez
-
Ecolab
-
Solenis
-
Kemira
-
Chemtex Specialty Limited
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
India Cooling Water Treatment Chemicals Industry Segmentation
India Cooling water treatment chemicals market report includes:
| Product Type | Corrosion Inhibitors |
| Scale Inhibitors | |
| Biocides | |
| Others | |
| End-user Industry | Power |
| Steel, Mining, & Metallurgy | |
| Petrochemicals and oil & gas | |
| Food & Beverage | |
| Textiles & Dyes | |
| Others |
Product Type
| Corrosion Inhibitors |
| Scale Inhibitors |
| Biocides |
| Others |
End-user Industry
| Power |
| Steel, Mining, & Metallurgy |
| Petrochemicals and oil & gas |
| Food & Beverage |
| Textiles & Dyes |
| Others |
Need A Different Region or Segment?
Customize Now
India Cooling Water Treatment Chemicals Market Research FAQs
What is the current India Cooling Water Treatment Chemicals Market size?
The India Cooling Water Treatment Chemicals Market is projected to register a CAGR of greater than 8% during the forecast period (2025-2030)
Who are the key players in India Cooling Water Treatment Chemicals Market?
Suez, Ecolab, Solenis, Kemira and Chemtex Specialty Limited are the major companies operating in the India Cooling Water Treatment Chemicals Market.
What years does this India Cooling Water Treatment Chemicals Market cover?
The report covers the India Cooling Water Treatment Chemicals Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Cooling Water Treatment Chemicals Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Page last updated on: June 9, 2023
