Water and Wastewater Treatment Market By Treatment Type (Primary Treatment {Screening, Sedimentation, Grit Removal, Flocculation & Coagulation}, Secondary Treatment {Activated Sludge Process, Trickling Filters, Rotating Biological Contactors (RBCs), Membrane Bioreactors (MBRs)}, Tertiary Treatment {Filtration, Chemical Precipitation, UV Disinfection, Reverse Osmosis (RO), Ion Exchange}, Advanced Treatment {Electrochemical Treatment, Advanced Oxidation Processes (AOPs), Zero Liquid Discharge (ZLD) Systems, Forward Osmosis (FO)}), By Equipment Type (Filtration Systems, Disinfection Systems, Desalination Systems, Aeration Systems, Clarifiers & Sedimentation Tanks, Sludge Treatment Systems), By Industrial Use (Power Generation, Pharmaceuticals, Chemicals & Petrochemicals, Food & Beverage, Textiles, Pulp & Paper, Oil & Gas, Mining & Metals, Others), By End-user (Municipal Authorities, Industrial Enterprises, Agricultural Enterprises), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Water and Wastewater Treatment Market accounted for USD 72.68 Billion in 2024 and is expected to reach USD 156.16 Billion by 2035, growing at a CAGR of around 7.2% between 2025 and 2035. The Water and Wastewater Treatment Market has also been rapidly growing as the public is developing awareness about the issue, laws governing water usage become stringent, and water resources become scarce.

The emergence of new industrialization and urbanization also increases the demand for dealing with wastewater all over the municipal, industrial, and agricultural sectors. In the current market, there have been emerging innovations in filtration, disinfection, and biological systems; smart water metering techniques; and IoT meters. Modern governments and industries are moving towards finding permit solutions such as water reuse and decentralized treatment. Since climate change is putting pressure on the development of better ways on how water is utilized, the industry is expected to have more development and growth in the future.

Report Scope:

Market Dynamics

Increasing demand for sustainable water reuse and conservation solutions.

The need for water reuse and conservation is increasing worldwide since the water supply is becoming scarce due to climatic changes, increased population, zero liquid, and industrialization. Borrowing from the government and industries, currently, there are membrane filtration technologies such as ultrafiltration, reverse osmosis technologies, and biological treatment to support water reuse. High-stakes environmental regulations require that the municipal and industrial systems transition to zero-liquid discharge (ZLD) recovery plans. Due to the integration of the Internet of Things and Artificial Intelligence, it is possible to monitor and control the use of water in smart water management systems.

Pharmaceuticals, food processing, and power generation industries are some of the manufacturing segments that are adopting closed-loop water recycling in a bid to determine ways by which to reduce operational costs and ensure sustainability. There are many decentralized wastewater reuse projects being carried out in urban areas to increase the availability of water bodies. PPPs are playing the role of enhancing infrastructure for water conservation. Advanced methods in desalination, as well as stormwater harvesting, are also playing a good role in managing water resources. Given the rise in consumers’ awareness, firms are obliged to embrace ‘green’ policies towards water conservation. By and large, the modern trends in using water are promoting the dissemination of sustainable reuse of wastewater around the globe.

Expanding cities require efficient wastewater management infrastructure and technologies.

The rapid development is also fueling the development of proper wastewater management for adequately addressing existing and emerging demands from the increasing population and growing industry. Growing urbanization creates more wastewater production, hence the need for effective treatment measures that can reduce pollution of water sources and enhance health standards among the public. The government is also spending on advanced sewage systems and sophisticated decentralized water treatment plants along with smart or advanced water management systems. Membrane filtration, biological treatment, and advanced oxidation processes are much used in the purification process due to avoiding environmental regulations.

By integrating IoT in wastewater treatment and applying AI analysis, flow rates and energy consumption decrease, and plants’ turnaround time increases. The scarcity of water has been resolved through sustainable measures like water recycling and the usage of harvested stormwater. A social issue that has recently been emerging is implementing necessary and sufficient infrastructural improvements and enhancements, especially as such projects are increasingly being funded through public-private partnership mechanisms (PPPs). Urban planners are using technical interventions, such as constructed wetlands and permeable pavements, for proper management of stormwater. The drive towards near-zero discharge of wastewater is currently laying down the line of future city projects. In general, proper management of wastewater is a critical measure for the development of sustainable and smart cities.

Rising costs of chemicals and membranes impact treatment plant affordability.

Concerning the important inputs to the WWTP, the costs of chemicals and membranes are on the rise, thereby raising the costs of constructing the wastewater treatment plants. Waste treatment chemicals for essential treatment processes like coagulants, flocculants, and disinfectants also have increased in price due to the disruption of supplies and a rise in the unit cost of raw materials. In the same category, there is a similar trend in the cost escalation of membrane filtration processes like reverse osmosis and ultrafiltration from increasing expenses in resourceful polymers and energy-requirement-intensive delay manufacturing processes. These have caused the cost of operations to rise greatly, putting more pressure on municipalities and various industries in their attempt to develop cheap methods of removing contaminants from the water.

These include challenges of finances, where small firms, especially in the developing world, are unable to adopt sophisticated water treatment technologies. Also, compliance with regulations is costly in the sense that, as the standards of water quality get tighter and tighter, it will call for a need to use costly ways of treating the water. Today many firms face problems of high expenses; that is why they begin to use various materials and develop energy-saving technologies. However, the scenario of an influx of operations costs and financing on the utilities and industries may cause a delay in infrastructure improvements. It is here that government incentives and partnerships with private companies come in to advance solving these cost challenges. Achieving sustainable wastewater treatment involves critical issues that relate to the comparability of wastewater management technology with cost implications and concerns of the environment.

Increasing freshwater shortages drive demand for advanced wastewater recycling solutions.

The demands for necessities like food and shelter, increased population growth, climate change, and emerging industrialization contribute to water scarcity, thus demanding efficient use of water. New methods of water reuse through technologies including membrane filtering, reverse osmosis, and advanced oxidation are increasingly appealing for reusing the reclaimed water for industrial, agricultural, and municipal applications, among others. The governments and regulatory bodies are putting in place measures that enhance the use of these technologies regarding water conservation and sustainability. Across the world, industries, especially food & beverage manufacturers, textile mills, and pharmaceutical firms, have now shifted to sustainable WWTPs to cut down dependence on freshwater sources.

Further, advanced control and monitoring in water management have been developed with IoT and AI. Decentralized wastewater treatment plants, which are also recognized as small-scale treatment systems, are gradually gaining importance due to the increase of load on conventional sewage treatment plants. Another method adopted is through partnerships between the government and private firms to encourage long-term investment in WRR plants. The circular economy transition encourages what was formally considered waste to be instead considered a resource: wastewater. Being one of the most pressing concerns of the modern world, global water scarcity is resulting in an increased popularity of wastewater recycling technologies.

Consumers and industries increasingly prioritize wastewater management and sustainability initiatives.

Consumers and industries are now focused on wastewater management and sustainability measures concerning water shortage and pollution. The increased level of awareness regarding the conservation of water and control of pollution has led to a heightened demand for cost-efficient products in wastewater treatment. Manufacturing industries, food processing companies, and pharma industries are the early adopters of water recycling and zero liquid discharge technologies so that they do not waste water. The governments and other regulating authorities are adopting stringent discharge standards, which have led to the companies seeking better treatment solutions.

Sustainability and green certification metrics are also already influencing the organizations’ actions toward the proper use of water resources. New technologies like IoT, artificial intelligence, and decentralized treatment are being incorporated into the wastewater management system. Namely, the PPPs are being promoted to enhance the infrastructural development of wastewater treatment and reuse. Customers and the public are thereby encouraging sustainability in water usage in brands by influencing corporate policies. They are becoming popular as circular economy systems means that instead of perceiving wastewater as a problem, it is considered as an asset. With the increasing awareness of environmental issues around the world, sustainable wastewater management is among the main strategies of sustainable development.

Industry Experts Opinion

“As previously communicated, by bringing advanced wastewater treatment systems to North America and engaging with groups like Fleming’s CAMIIT, as well as CAWT, we are continuing to build the foundation to deploy our systems globally. This alliance will drive innovation in sustainable water management and bring smarter, state-of-the-art solutions to manage all wastewater needs.”

• Michael O’Connor, CEO of Rainmaker Worldwide Inc.

“We are thrilled to be selected as a nominee for Water Technology Company of the Year and to stand side by side with other water industry giants. Our veteran application experts work hard every day to provide wastewater solutions that enable our customers to remove nutrients in municipal and industrial applications. They are laser-focused on providing unique technologies for customers in a variety of geographies, ranging from rural/remote communities to large urban areas.”

• Chris McIntire, CEO of Axius Water

Segment Analysis

Based on the Treatment Type, the Water and Wastewater Treatment Market is classified into primary, secondary, and tertiary. The initial steps of the wastewater treatment process include sedimentation and screening, which will help to remove large materials. Secondary treatment involves biological digestion in the form of activated sludge and percolation through trickling filters. This further treatment process consists of filtration, chemical disinfection, and nutrient removal to an acceptable standard. More people are moving to the urban areas, thereby demanding secondary and tertiary treatments to meet the higher standards that accrue from industrialization. Due to the fast embrace of new technologies and improved biological treatment processes, the innovation in membrane technologies is being boosted. The application of advanced treatment techniques and the use of reused water by municipalities and industries has increased. These trends are further backed by increasing awareness of the negative impact of the environment and the scarcity of water.

Based on the Equipment Type, the Water and Wastewater Treatment Market is classified into Filtration Equipment, including Membrane Bioreactors (MBR), Reverse Osmosis (RO), Ultrafiltration (UF), and Microfiltration (MF). Equipment that can be used in the removal of pathogens includes the use of ultraviolet disinfection, chlorination, and ozonation. There is the use of biological treatment equipment, for example, activated sludge systems, which are made up of sequencing batch reactors (SBR) and trickling filters for the breakdown of organic wastes. Stations for dewatering and digesting sludge, as well as incinerators, which will be used to deal with solid waste, are also involved. It should be noted that suspended solids such as sedimentation tanks and dissolved air flotation (DAF) systems facilitate clarification equipment. Pumping systems are employed to transport or pump the wastewater through the treatment plants. In removing the contaminants, treatment apparatuses like coagulation and flocculation are used in chemical treatment. Thirdly, purging systems that incorporate diffused and surface aerators assist in supplying the needed oxygen for biochemical activities.

Regional Analysis

North America holds the highest share of the wastewater treatment system owing to strong environmental legislation, well-developed infrastructure, and enhanced industrial wastewater discharge. The discharge norms are very stringently regulated by the U.S. Environmental Protection Agency (EPA), which continues to encourage industries and municipalities to use sophisticated treatment systems. The market is also driven by developments of key players and interests in membrane filtration, biological treatment, and sludge management. Increasing water recycling measures, particularly in the water-scarce regions of the globe, including California, are resulting in heightened calls for tertiary treatment as well as desalination. It is noticeable that of all industries, oil & gas, pharmaceuticals, and food & beverage industries have the greatest impact on adopting wastewater treatment facilities. Smart water treatment solutions are also in the early stages of development, and advancement in this area is slowly becoming apparent. Higher governmental support and the development of public-private cooperation contribute to the further improvement of the position of the region’s market.

Currently, the Asia-Pacific region leads in the growth of the Water and Wastewater Treatment Market for the reasons of increased urbanization rate and industrial development, as well as increasing regulatory requirements. Some of the developed nations, such as China, India, and Japan, are now seeking to establish new sophisticated WWTPs due to increased water pollution and scarcity. Finally, there are numerous governmental programs leading to market development, for example, the Water Ten Plan in China or Namami Gange launched in India. This is due to factors such as using renewed water to emit less or no pollutants into the environment or the use of water in the manufacturing of products like pharmaceuticals, chemicals, and food processing, among others. Membrane filtration, biological treatment, and water reuse technologies have perhaps been the improvement. There are lots of developments that have been enhancing sustainable water management as people become aware of the need for improvement. This is through the continued inflow of foreign investments and, more importantly, the soaring public-private partnership (PPP) that was tagged as the key driver of the regional market growth.

Competitive Landscape

The Water and Wastewater Treatment Market is generally saturated with key major players, TNCs, who focus on innovation, M&A strategies, and down-the-line sustainability. Current key players for water treatment services include biological, chemical, and membrane companies such as Veolia, Suez, Xylem, Evoqua Water Technologies, Ecolab, and Pentair. Takeovers and acquisitions are also quite prevalent due to firms’ efforts to achieve increased market share and technological advancement. Smart renewables such as smart water treatment solutions, Internet of Things (IoT)-based monitoring, and artificial intelligence-integrated automated operations are increasingly becoming popular, improving operational effectiveness.

Current urbanization trends call for wastewater treatment solutions to be sustainable and cost-effective, and energy-efficient technologies contribute to innovative development in sludge. To cut the Gordian knot of the competition, players have to design solutions to cater to the regional requirements and water quality. Higher spending for R&D and authorities’ attempts at water recycling and saving also build the extent of competition. As climate change and inadequate fresh water supply increase, a lot of firms are shifting towards the circular economy and investing in ZLD technologies.

Water and Wastewater Treatment Market, Company Shares Analysis, 2024

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Recent Developments:

• In April 2024, Thermax launched a state-of-the-art manufacturing facility in Pune, focused on producing advanced water and wastewater treatment solutions. This milestone highlights Thermax’s dedication to resource conservation and long-term sustainability. Covering two acres, the facility reflects the company’s commitment to engineering excellence, driven by innovation, quality, and customer-centricity. Additionally, the facility will showcase Thermax’s latest technologies, such as softener and filter vessels, tubular membrane modules, and capacitive deionization solutions.
• In May 2023, Xylem Inc. acquired Evoqua. Evoqua provides water treatment solutions for various end-use industries, such as food and beverage, power generation, life sciences, and microelectronics. With this initiative, the company will expand its presence in the European and North American markets.

Frequently Asked Questions (FAQs)