Water Treatment Market

Market Overview

The global water treatment market size was valued at USD 65.1 billion in 2023 and is projected to reach USD 119.8 billion by 2032, registering a CAGR of 7.0% during the forecast period (2024-2032). The need to reduce contamination and the demand for virus-free products are driving the water treatment market growth. Water treatment enhances water quality to make it suitable for specific uses such as drinking, industrial processes, irrigation, and environmental applications. Water treatment removes contaminants and impurities from raw water or wastewater to meet quality standards and regulatory requirements. 

The growing awareness of waterborne diseases such as diarrhoea, cholera, typhoid, amoebiasis, and hepatitis fuels the growth of the water treatment market. Furthermore, increased water use in various industrial sectors such as oil and gas, pharmaceuticals, and chemicals drives market growth. Industries are increasingly recognizing the importance of treating and managing water resources responsibly to meet regulatory standards and minimize environmental harm, driving demand for water treatment solutions and services.

However, water treatment unit installation and maintenance costs limit the market's growth. On the other hand, advances in water treatment technology, such as low-salt-rejection reverse osmosis (LSRRO), which have the potential to provide affordable and energy-efficient desalination of highly saline water, are expected to create numerous growth opportunities for the market in the future.

Highlights

• Preliminary Treatment generates the highest revenue share by system type.
• Waste Water Treatment is the most common application in the market.
• Municipality is the major end-user of the market by end-user.

Market Dynamics

Global Water Treatment Market Drivers:

Increasing Water Scarcity

Growing global population and urbanization, combined with climate change effects such as droughts and decreased precipitation, exacerbate water scarcity. For example, The United Nations predicts that the world's population will reach 9.7 billion by 2050. Rapid urbanization, particularly in developing countries, drives up water demand for municipal, industrial, and agricultural purposes. This emphasizes the importance of efficient water treatment technologies for effectively utilizing limited water resources.

Additionally, access to clean and safe water is our world's "great connector" and critical to promoting peace, according to the 2024 United Nations World Water Development Report released on World Water Day. According to the report, 2.2 billion people worldwide still lack safe drinking water, while 3.5 billion lack safe sanitation. As of 2022, roughly half of the world's population faced at least temporary severe water scarcity. By 2024, 1.8 billion people will live in regions or countries with absolute water scarcity, defined as less than 500 cubic meters per person per year.

Moreover, water scarcity increases the demand for advanced water treatment technologies such as desalination, membrane filtration, and water reuse systems. Companies invest in technologies that improve water efficiency, reduce energy consumption, and treat wastewater for reuse. Furthermore, governments enact stricter regulations to manage water resources sustainably, encouraging investment in water treatment infrastructure and technologies.

Global Water Treatment Market Restraints:

High Capital Cost

High capital costs refer to the significant initial investments to plan, build, and equip water treatment facilities with advanced technologies. These costs include infrastructure development, treatment equipment procurement, system installation, and initial operational setup.

Additionally, industrial water treatment is a complex set of technologies and systems that serve a variety of industries and applications. Regarding industrial water treatment systems, lower flow rates mean lower capital costs. While this rule applies to most systems, the flow rate can be more critical for certain technologies than others. For most industrial applications, a 150,000 GPD WWTS would cost between USD 500,000 and USD 1.5 million, which includes all design, engineering, equipment, installation, and startup. More complex streams, higher flow rates, and higher effluent quality standards will all increase the system cost.

Furthermore, a raw water treatment system with a 200-1000 gallons capacity per minute (GPM) can range from USD 975,000 to USD 3 million, depending on water quality and flow rate. A 100 GPM cooling tower water treatment system can cost between USD 50,000 and USD 250,000, with additional costs for softening and desilication. Continued innovation in water treatment technologies, cost-effective solutions, and financing mechanisms are critical for breaking through capital cost barriers.

Global Water Treatment Market Opportunity:

Smart Water Management

Smart water management combines IoT (Internet of Things), AI (Artificial Intelligence), and data analytics to improve water treatment and distribution systems' efficiency, dependability, and sustainability. This method enables real-time monitoring, predictive maintenance, and optimization of water resources, thereby increasing operational efficiency and lowering costs. Schneider Electric engineers, for example, used smart water management to reduce water consumption by 57% in a plant, improve waste optimization by 64%, and reduce CO2 emissions by 61%.

Additionally, ABB announced the acquisition of Canadian company Real Tech, a leading supplier of innovative optical sensor technology for real-time water monitoring and testing. ABB will expand its strong presence in the water segment and add optical technology, which is critical for smart water management, to its product portfolio through the acquisition. Unlike traditional water quality measurement, which can be time-consuming, Real Tech's product portfolio delivers critical measurements in real time. This improves process control and ensures continuous water quality assurance. Real Tech's patented solutions encompass the entire digital water value chain for water quality monitoring, focusing on data generation and analytics.

Hence, continued investment in IoT, AI, and data analytics solutions will be critical for utilities, municipalities, and industries seeking to optimize water resources, improve service delivery, and effectively mitigate water-related risks. Embracing smart water management solutions can have long-term benefits for communities worldwide, such as increased resilience to climate impacts and improved water security.

Regional Analysis

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global water treatment market shareholder and is estimated to grow at a CAGR of 7.4% over the forecast period. The Asia-Pacific region is currently the largest market for water treatment, driven by rapid industrialization, urbanization, and population growth. Countries like China and India are experiencing significant demand for clean water due to increasing pollution levels and limited freshwater resources. The region's expanding industrial sector and stringent environmental regulations have spurred investments in advanced water treatment technologies and infrastructure. The growing awareness of water scarcity issues and the need for sustainable water management practices fuel the market. The diverse water treatment applications across Asia-Pacific's residential, commercial, and industrial sectors make it a critical hub for the industry.

Furthermore, regional growth is driven by the expanding food and beverage industries, which rely heavily on process filtration and water treatment systems to ensure safe and sanitary food production. For example, in January 2023, the United States Department of Agriculture and the Global Agricultural Information Network reported that China's food and beverage production increased by 6.3% in 2021. The increase in food and beverage production drives demand for advanced water treatment solutions, contributing to the market's growth. Furthermore, governments in several countries, including Japan and South Korea, have allocated funds to financial institutions such as the Asian Development Bank to assist the water sector in providing clean and safe water to residents. 

Hence, this proactive involvement is helping to drive regional market expansion. For example, in May 2021, the Asian Development Bank (ADB) funded a wastewater treatment project in China, focusing on Henan, Shaanxi, Heilongjiang, and Guangdong provinces. This initiative aimed to improve water quality in the Yellow River Basin, thereby driving water treatment market growth.

North America is anticipated to exhibit a CAGR of 6.9% over the forecast period. This growth is primarily attributed to the modernization of aging water infrastructure, stricter environmental regulations, and increased emphasis on sustainability. The U.S. and Canada see rising investments in innovative water treatment solutions, including advanced filtration, desalination, and wastewater reuse technologies. The industrial sector, particularly in oil and gas, pharmaceuticals, and food and beverage, drives demand for efficient and reliable water treatment systems. Additionally, North America's increasing focus on zero liquid discharge and water recycling underscores the region's commitment to addressing water scarcity and ensuring long-term water security.

For example, in June 2023, Indiana American Water will build a new water treatment plant in Sheridan, Indiana. The plant will cost USD 30 million and be capable of processing more water. It will also include new equipment to make the water cleaner and safer, benefiting people for many years. 

Furthermore, the region's water treatment market is expanding rapidly due to the increasing adoption of innovative technologies such as nanotechnology and ultrafiltration. These address water quality concerns effectively and stimulate demand for advanced water treatment solutions.  This growing demand for cutting-edge technologies is critical to driving market growth. For example, in March 2023, DuPont introduced the new versatile ultrafiltration technology, DuPont Multibore PRO. It offers a diverse range of dependable and long-lasting modules and module structures that can address water treatment challenges.

Europe has a decent market share. The UK water treatment systems market is expected to grow due to the government's initiatives to improve the country's water quality. The Water Services Regulation Authority (Ofwat) in the United Kingdom oversees the financial operations of the country's water utility companies. The agency oversees ecological control, while the Drinking Water Inspectorate regulates drinking water quality. The Environment Act of 2021 establishes strong regulatory authorities to combat pollution and improve water quality.

Segmental Analysis

The global water treatment market is segmented based on system type, application, and end-use. The market is further segmented by system type into Preliminary Treatment, Water Treatment, Membrane Bio-reactor (MBR), Reverse Osmosis (RO), Micro-filtration (MF), Nano/Ultra Filtration (NF/UF), Disinfectants (UV, Ozone), Sludge treatment, Activated Sludge, Sludge Thickening and Dewatering, Sludge Drying, Other Sludge Treatment Technology.

Preliminary Treatment is the first stage of the water treatment process, and it focuses on removing large debris, grit, and solids that may damage or impair downstream treatment equipment. This stage typically includes screening, which removes large objects like sticks and trash, and grit removal, which extracts smaller particles like sand and gravel. 

A Membrane Bioreactor (MBR) combines biological treatment and membrane filtration to provide an advanced wastewater treatment method. In MBR systems, microorganisms degrade organic pollutants in wastewater, converting them into simpler substances. The primary feature of MBR is the use of membrane filters (usually ultrafiltration or microfiltration membranes) to separate treated water from activated sludge, resulting in high-quality effluent suitable for reuse or discharge. 

The market can be bifurcated by application into Process Water/ Water Treatment, Waste Water Treatment, Zero Liquid Discharge, and Desalination. Wastewater Treatment is the most dominant application segment in the water treatment industry. This is due to its critical role in managing and treating wastewater from various sources, thereby protecting the environment and public health. Wastewater treatment facilities use a variety of physical, chemical, and biological processes to remove contaminants, organic matter, and pathogens from wastewater before it is safely discharged or reused.

Process water/water treatment refers to the Treatment of water used in industrial processes to meet quality standards for specific applications such as manufacturing, cooling towers, boilers, and pharmaceutical production. This segment focuses on ensuring appropriate water quality for industrial use to improve process efficiency and product quality.

Based on end-use, the market is fragmented into Residential Buildings, Commercial Buildings, Municipality, Industrial, Chemical and Petrochemicals, Oil and Gas, Mining and Metals, Food and Beverage, Pharmaceuticals, Thermoelectric Power Plants, Semiconductors, Pulp and Paper, Sugar Mills, Textiles, Leather. Municipality has become the dominant segment in the water treatment market by end-use. Municipalities are responsible for providing safe drinking water to residents and treating wastewater before it is discharged into the environment. This segment includes various water treatment technologies and infrastructure investments to meet rising urbanization, regulatory demands, and public health standards.

Residential buildings require water treatment to provide safe drinking water and manage wastewater. Treatment processes such as filtration, disinfection, and softening improve water quality for household use.

Recent Developments

• March 2024- Kurita developed a strategic alliance with Waterplan as the first Japanese company with its platform to measure, respond to, and report water risks.
• June 2024- AECOM and Aquatech to Use DE-FLUORO™ Technology for PFAS Destruction.
• May 2024- ACCIONA was awarded the operation and maintenance of the middle Jarama basin wastewater treatment plants.
• April 2024- The Bilbao City Council gave ACCIONA the contract for the management, upkeep, cleaning, and operation of the city's municipal water sanitation and sewerage network. 350,000 residents will benefit from the €35 million three-year contract that can be extended. Geographic information systems (GIS) and the company's own GOTA CIA platform will be implemented.