Expanding Water and Wastewater Treatment Market Anticipated to Reach USD 551.4 Billion by 2034, Driven by a Consistent 5.5% Annual Growth Rate
The global water and wastewater treatment market is set to experience a substantial increase in size, with a compound annual growth rate (CAGR) of 6.42% from 2025 to 2034. In 2024, the market was valued at USD 352.19 billion, and it is projected to reach approximately USD 656.67 billion by 2034.
Several factors are driving this growth. Stricter environmental regulations are compelling companies and governments to invest more in water treatment technologies to reduce pollution and ensure compliance. The increasing trend of urbanisation and industrialisation worldwide leads to higher demand for clean water and effective wastewater management systems.
Technological advancements are also playing a crucial role. The integration of technologies like artificial intelligence (AI) and innovative materials such as graphene is transforming the efficiency and sustainability of water treatment processes. AI helps in predictive maintenance and optimising resource recovery, while graphene offers advanced filtration solutions.
Growing public awareness about water scarcity and pollution, along with corporate sustainability objectives, are further driving investments in this sector. The focus on a circular economy and water reuse initiatives is also contributing to market growth, as companies and governments seek more sustainable water management practices.
Innovative solutions like direct potable reuse, ZLD technologies, and algal-based treatment systems are gaining traction for their potential to address water scarcity and waste management challenges. For instance, ZLD technologies aim to eliminate liquid waste by recovering all water from industrial effluents, while algal-based treatment systems utilise microalgae to treat wastewater while producing biofuels.
The use of Public-Private Partnerships (PPPs) is enabling the construction and operation of advanced treatment facilities, addressing the growing demand for clean water and wastewater management. PPPs offer a risk-sharing model that encourages private sector involvement in public utility projects, leading to increased investment and innovation in the sector.
However, challenges remain. Public skepticism remains a challenge for initiatives like direct potable reuse. Studies have detected high levels of PFAS (per- and polyfluoroalkyl substances) in treated wastewater effluents, raising concerns about the safety of recycled water. Elevated contamination levels of PFAS have been detected in 95% of U.S. sewage sludge and downstream wastewater plants, highlighting the need for stricter regulations and advanced treatment solutions.
In the United States, the Environmental Protection Agency (EPA) enforces the Clean Water Act through Effluent Limitation Guidelines, and stricter regulations are prompting industries to adopt advanced treatment solutions to meet water quality standards. Financial support mechanisms like the Clean Water State Revolving Fund and related federal infrastructure programs in the U.S. have allocated billions toward upgrading treatment facilities and chemical dosing systems.
In developing regions like India, the treatment gap is substantial. India produces nearly 38,354 million litres per day (MLD) of municipal sewage but has the capacity to treat only 11,786 MLD. Government initiatives in India prioritise the expansion of water infrastructure and the use of centralised and decentralised wastewater treatment technologies.
In 2023, SUEZ Environnement S.A. produced 29,715 megalitres of recycled water and supplied 83,565 tonnes of biosolids to farmers, achieving a 12% reduction in its waste footprint. In 2024, North America led the market, accounting for a dominant 47.2% share.
In conclusion, the global water and wastewater treatment market is set for significant growth in the coming years, driven by a combination of environmental regulations, technological advancements, public awareness, and the need for sustainable water management practices. However, challenges such as public skepticism and the need for stricter regulations to address contaminants like PFAS will need to be addressed to ensure the safe and effective treatment of wastewater.
[1] Grand View Research Inc., "Water and Wastewater Treatment Market Size, Share & Trends Analysis Report By Product (Water Treatment, Wastewater Treatment), By Application (Municipal, Industrial), By Region, And Segment Forecasts, 2021 - 2030" (2021). [2] United Nations, "World Urbanization Prospects: The 2020 Revision" (2021). [3] World Health Organization, "Water, sanitation, hygiene and waste management for the COVID-19 virus" (2020). [4] United States Environmental Protection Agency, "Wastewater Treatment" (2021). [5] National Science Foundation, "Graphene and 2D Materials for Water Purification" (2020).
- The growth in the global water and wastewater treatment market is not only influenced by stricter environmental regulations and increased investment by companies and governments but also accelerated by advancements in science, such as the integration of artificial intelligence (AI) and innovative materials like graphene, which enhance the efficiency and sustainability of water treatment processes.
- In addition to the environmental and scientific aspects, the market growth is facilitated by the intersection of finance and business, as the focus on a circular economy, water reuse initiatives, and public-private partnerships (PPPs) attract more investments from the private sector, driving innovation in the industry.
