In its infancy, the water desalination market was based largely on processes such as thermal and multiflash distillation, which were used to remove concentrates from seawater in a technique known as desalination. However, both were expensive – primarily due to high energy demands – which had the practical effect of making large-scale production of fresh water cost-prohibitive.

But with the development and expansion of a technology known as reverse osmosis – which uses microfiltration rather than heat to purify seawater – desalination's potential grew significantly. As a result, it has now emerged as one of the primary long-term solutions to the global water-shortage crisis. This is expected to significantly expand the market potential of Water Standard Company – now and in the future – as scarcity and limited alternatives drive a growing demand for available, natural renewable resources.

• While desalination constitutes 3 percent of the current global water supply, that is expected to double by 2015. Moreover, double-digit growth is predicted for new capacity:
  • 2006 – 39.9 million cubic meters per day
  • 2010 – 64.3 million cubic meters per day
  • 2015 – 97.5 million cubic meters per day
• A 61 percent increase in capacity is expected during the next five years, and a 140 percent increase is expected during the next 10 years. Beyond 2015, the rate of growth is forecast to accelerate further.
• Regulatory drivers are accelerating acceptance of desalination as the only new supply alternative after demand management and reuse.
• Timing and social and environmental impact of new reservoir development creates uncertainty in planning models.
• Global environmental organizations are having a significant impact on how new water is sourced.
• Desalination is now viewed as a viable alternative in all countries bordering an ocean and – along with strategies such as conservation and reuse – is widely considered to be an important solution to the global water crisis.
• The demographic shift to coastal areas changes the economics of ground water sources and delivery, as certain regions – such as the U.S. West Coast, India, Australia, and Saudi Arabia – rely on water being pumped from distant locations. This makes desalination a more attractive alternative.
• Technology advances, such as with reverse osmosis filtration, have significantly reduced the cost of desalination.