Water and Wastewater Treatment Equipment Market Analysis | 2025-2032

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Water & Wastewater Treatment Equipment Market

• The annual demand for water & wastewater treatment equipment was USD 69.4 billion in 2024 and is expected to reach USD 73.3 billion in 2025, up 5.7% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the water & wastewater treatment equipment market is expected to grow at a CAGR of 5.3%. The annual demand will reach USD 105.3 billion in 2032, which is almost 1.5 times the demand in 2025.
• During 2025-2032, the water & wastewater treatment equipment industry is expected to generate a cumulative sales opportunity of USD 710.4 billion, which is almost 2 times the opportunities during 2019-2024.

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High-Growth Market Segments:

• Asia-Pacific generated the highest demand with the largest market share in 2024, with China & India as the key growth drivers in the region.
• By range type, Filtration segment accounted for the largest share of the water and wastewater treatment equipment market.
• By process type, Tertiary segment accounted for the largest share of the water and wastewater treatment equipment market.
• By end-user type, Municipal segment is the largest and fastest-growing segment of the water and wastewater treatment equipment market.

Market Statistics

Have a look at the sales opportunities presented by the water & wastewater treatment equipment market in terms of growth and market forecast.

Market Dynamics

Water and wastewater treatment equipment is the technology and machinery employed to treat, purify, and manage water and wastewater to make it safe for human consumption, industrial use, or environmental discharge. This equipment includes filters, clarifiers, disinfection units, sludge treatment systems, and membrane technologies that remove contaminants, solids, and harmful microorganisms from water, ensuring compliance with regulatory and safety standards.

The water and wastewater treatment equipment market is witnessing steady growth, driven by rising investments in water infrastructure, increasing freshwater scarcity, and stricter environmental regulations. Growing demand for safe drinking water, wastewater reuse, and sustainable water management is accelerating the adoption of advanced filtration, membrane, disinfection, and monitoring technologies. A key trend shaping the market is the increasing deployment of smart and decentralized water treatment solutions to improve operational efficiency and water security.

Market Drivers

Rising Investments in Water Infrastructure are Driving Market Growth

Increasing investments to modernize aging drinking water and wastewater infrastructure are driving the market growth of the water and wastewater treatment equipment market. Governments and utilities are upgrading pipelines, treatment plants, and distribution networks, creating strong demand for advanced filtration, membrane, disinfection, and monitoring equipment.

• According to the U.S. Environmental Protection Agency (EPA), approximately USD 625 billion will be required to maintain and improve the country's drinking water infrastructure over the next 20 years. Rising infrastructure investments are accelerating the deployment of advanced water treatment equipment.

Growing Water Scarcity and Urbanization are Expanding Market Share

Growing freshwater scarcity and rapid urbanization are expanding the market share of the water and wastewater treatment equipment market. Increasing pressure on freshwater resources is encouraging municipalities and industries to invest in water reuse, desalination, and advanced treatment technologies to ensure reliable water supplies.

• According to the UNESCO World Water Development Report 2024, global freshwater demand has increased by approximately 1% annually since the 1980s. Rising water demand is supporting the adoption of advanced water and wastewater treatment equipment worldwide.

Stricter Wastewater Regulations are Driving Market Demand

Stricter wastewater discharge regulations are driving the market demand for water and wastewater treatment equipment. Governments are strengthening pollution control standards, encouraging utilities and industries to upgrade biological, sludge, and tertiary treatment systems.

• According to the U.S. EPA Clean Watersheds Needs Survey, approximately USD 630 billion will be required over the next 20 years to improve wastewater and stormwater infrastructure. Regulatory-driven infrastructure upgrades are increasing demand for advanced water treatment equipment.

Market Challenges

High Capital and Operating Costs Restrain Market Growth

High capital and operating costs continue to restrain the market growth of the water and wastewater treatment equipment market. Advanced technologies such as membrane filtration, desalination, UV disinfection, and PFAS treatment require substantial investments in equipment, energy, and maintenance, limiting adoption among smaller municipalities and utilities.

• According to the U.S. EPA, approximately USD 107 billion in future investments will be required for drinking water treatment facilities alone. High infrastructure and operating costs continue to challenge the widespread adoption of advanced treatment technologies.

Energy-Intensive Treatment Processes Challenge Market Demand

Energy-intensive treatment processes are challenging the market demand for water and wastewater treatment equipment. Desalination and advanced wastewater treatment technologies require significant electricity, increasing operating costs and sustainability concerns for water utilities.

• According to UNESCO, industry accounts for approximately 20% of global freshwater withdrawals, requiring extensive treatment and processing capacity. Rising industrial water treatment requirements are increasing the need for energy-efficient treatment equipment.

Emerging Contaminants Increase Compliance Complexity

The growing presence of emerging contaminants is increasing compliance complexity in the water and wastewater treatment equipment market. Pollutants such as PFAS, microplastics, pharmaceuticals, and other trace contaminants require advanced treatment processes and continuous monitoring, increasing compliance costs for utilities.

• According to the U.S. EPA, new treatment requirements and contaminant mitigation needs are contributing to the growing investment required for drinking water infrastructure modernization. Increasing regulatory scrutiny is accelerating demand for advanced treatment technologies while raising compliance challenges.

Market Opportunities

Expansion of Water Reuse Projects Strengthens Market Forecast

The expansion of water reuse and recycling projects is strengthening the market forecast for the water and wastewater treatment equipment market. Governments and industries are increasingly investing in wastewater recycling to improve water security, creating demand for membrane bioreactors, tertiary treatment systems, and advanced filtration technologies.

• According to the UN-Water Progress on Wastewater Treatment 2024 Update, only 60% of wastewater is safely treated among countries with available data. The significant opportunity to improve wastewater treatment is expected to accelerate investments in advanced treatment equipment.

Growing Demand for Decentralized Treatment Creates New Market Opportunities

Growing demand for decentralized treatment systems is creating new opportunities in the water and wastewater treatment equipment market. Remote communities, industrial facilities, and developing regions are increasingly adopting localized treatment solutions that require lower infrastructure investments while improving water accessibility.

• According to UNESCO, more than 2 billion people experience water stress each year. Increasing water stress is supporting demand for decentralized water and wastewater treatment equipment.

Smart Water Technologies are Emerging as a Key Market Trend

The adoption of smart water technologies is emerging as a key market trend in the water and wastewater treatment equipment market. Utilities are increasingly deploying sensors, automation, AI-based monitoring, and predictive maintenance solutions to improve operational efficiency and strengthen infrastructure resilience.

• According to the U.S. EPA Office of Inspector General (2024), drinking water systems serving approximately 193 million people have cybersecurity vulnerabilities. Growing investments in secure and digitally connected water infrastructure are creating opportunities for smart water treatment equipment.

Segments' Analysis

By Type

“Filtration segment accounted for the largest share of the water and wastewater treatment equipment market.”

• The water and wastewater treatment equipment market is segmented by type into filtration, disinfection, desalination, sludge treatment, biological, and testing.
• Filtration segment accounted for the largest share of the water and wastewater treatment equipment market, due to its critical role in removing suspended solids, particulates, and contaminants from water.
• The rising emphasis on water reuse and sustainable treatment practices has accelerated the adoption of advanced filtration technologies such as membrane and media filters for efficient and reliable water purification.
• Moreover, increasing urbanization, industrialization, and stricter regulatory standards have heightened demand for effective filtration systems in municipal and industrial applications.

By Process Type

“Tertiary segment accounted for the largest share of the water and wastewater treatment equipment market.”

• The water and wastewater treatment equipment market is segmented by process type into primary, secondary, and tertiary.
• Tertiary segment accounted for the largest share of the water and wastewater treatment equipment market. Tertiary treatment is the final process in wastewater and water treatment, where the treated water is polished for high-quality standards before discharge or reuse. 
• Tertiary treatment involves advanced filtration, chemical processes, or disinfection methods like UV and membrane filtration to remove remaining contaminants such as heavy metals and pathogens. As water quality standards tighten and reuse demand rises, this stage is essential for ensuring water is safe for applications like irrigation, industry, or potable reuse.

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Regional Insights

"The Asia-Pacific region accounted for the largest market share in 2024 and is expected to be the fastest-growing region over the forecasted period.”

• In terms of region, the water and wastewater treatment equipment market is segmented into the North American region, the European region, the Asia-Pacific region, and the rest of the world.
• Asia-Pacific region accounted for the largest market share in 2024 and is expected to be the fastest-growing region over the forecasted period, driven by rapid industrialization, urbanization, and population growth in countries such as China, India, and Southeast Asian nations. These factors have led to increased water pollution and scarcity, necessitating substantial investments in advanced treatment infrastructure.
• Moreover, governments across the region are implementing stringent environmental regulations and policies aimed at improving water quality and promoting sustainable water management practices.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the water and wastewater treatment equipment market:

• Xylem, Inc.
• Pentair plc.
• Evoqua Water Technologies LLC
• Aquatech International LLC
• Ecolab Inc.
• DuPont
• Calgon Carbon Corporation
• Toshiba Water Solutions Private Limited (TOSHIBA CORPORATION)
• Veolia Group
• Ecologix Environmental Systems, LLC

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments / Mergers and Acquisitions

Mergers & Acquisitions

• In May 2026, De Nora acquired BW Water, completing the transaction in July 2026 for US$60.8 million at closing, with the enterprise value capped at US$66.5 million. BW Water generated US$91.5 million in revenue in 2025 and had an order backlog of approximately US$190 million, strengthening De Nora's turnkey engineering, fabrication, and industrial water treatment project execution capabilities.

• In September 2025, Kemira announced an agreement to acquire Water Engineering, Inc. for approximately US$150 million in cash. The acquisition expands Kemira's portfolio beyond water treatment chemicals into engineered water services, including equipment management, monitoring, maintenance, and technical support for industrial and commercial customers across North America.

• In June 2025, Grundfos announced an agreement to acquire Newterra from Frontenac, completing the transaction in August 2025. The acquisition expanded Grundfos' North American water treatment business to more than 1,500 employees and over US$350 million in annual revenue, strengthening its portfolio of modular water and wastewater treatment systems.

• In May 2025, Veolia acquired CDPQ's remaining 30% stake in Water Technologies & Solutions for US$1.75 billion, securing full ownership of the business. The transaction is expected to generate approximately €90 million in annual cost synergies by 2027, while strengthening Veolia's industrial water treatment equipment, chemicals, mobile water, and service operations.

Recent Developments

• In February 2026, EKKI HOMA launched its Linus clog-resistant sewage pump platform in India after successful field testing at approximately 100 sites. Supported by a brownfield expansion targeting an initial production capacity of 30,000 pumps annually and a planned network of 75 dealers, the launch expands pumping solutions for industrial, municipal, commercial, and residential wastewater applications.

• In September 2025, JSP Enviro successfully deployed its Bio-Electrochemical Anaerobic Digestor System at two industrial facilities in Tamil Nadu. A 100 m³/day installation can reportedly reduce nearly 80 tonnes of CO₂ emissions annually while lowering aeration requirements, chemical consumption, sludge generation, and maintenance costs.

• In May 2025, Veolia secured approximately US$750 million in new water technology contracts, including a US$550 million project for a major U.S. Midwest microelectronics facility, along with additional projects in San Francisco, Brazil, and the UAE. The contracts support growing demand for ultrapure water production, wastewater recycling, and advanced treatment systems in water-intensive industries.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The water and wastewater treatment equipment market is segmented into the following categories.

By Type

• Filtration
• Disinfection
• Desalination
• Sludge Treatment
• Biological
• Testing

By Process Type

• Primary
• Secondary
• Tertiary

By End-User Type

• Municipal
• Industrial

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s water and wastewater treatment equipment market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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