The water and wastewater treatment market is expected to grow at a CAGR of 7.5% during the forecast period of 2023 to 2030. The global COVID-19 epidemic has been unprecedented and astounding, resulting in a demand for water and wastewater treatment that is lower than anticipated across all regions when compared to levels that existed prior to the pandemic. The growth of the water and wastewater treatment equipment market is likely to be driven during the forecast period by the rising demand for water and wastewater treatment equipment in municipal and industrial applications. During the period under consideration, an increase in product demand is anticipated as a result of an increase in the need for clean water as a result of industrialization and expanding urbanisation, in conjunction with limited freshwater supplies. The market is anticipated to be driven by increasing environmental concerns, the requirement to adhere to stringent regulations imposed by governments, and the rising demand for water and wastewater treatment in countries all over the world. In a similar fashion, increasing expenditures on wastewater treatment facilities are anticipated to fuel the expansion of the market.
It is essential for humanity to treat its water and wastewater if it is to satisfy the rising demand for water resources. This is true not only for uses related to municipal and agricultural activities but also for essential industrial processes. Over 40% of the world's population currently resides in areas that are experiencing extremely high levels of water stress. Countries that are experiencing severe water scarcity have been forced to conduct treatment to convert saltwater to freshwater through a procedure known as desalination because just around 1% of the water that is accessible on earth is considered to be freshwater.
Expanding Population, Increasing Urbanisation Enforcing the Need for Waste Water Treatment
It is anticipated that by the year 2050, more than half of the world's population, or 57%, will reside in regions that experience water scarcity for at least one month of every year. The ever-rising population of the world, and notably the population of cities, is one of the most important driving forces behind the rise of industry. It is anticipated that the majority of the world's population expansion that will occur over the next 40 years will take place in urban areas, particularly in emerging regions. Because of the increased population density that results from urbanisation, there is a corresponding rise in the amount of stress placed on the available water supplies. The development that has taken place has led to an increase in the amount of water consumed per person, which in turn has put further strain on the available water supply in the area. It is anticipated that by the year 2050, approximately 6 billion people would be affected by a lack of access to clean water. (Source: United Nations World Water Development Report).
It is anticipated that by the year 2050, more than two-thirds of the world's population would reside in urban areas. Rapid urbanisation opens the door to new possibilities for economic growth; nevertheless, it also leads to an increase in the consumption of freshwater resources. An increase in the amount of waste produced in metropolitan areas is likely to result in the contamination of water with many types of pollutants. These pollutants include nutrients and pathogens derived from human excrement, plastics, and chemicals derived from personal care items. In the years to come, it is anticipated that this will speed up the need for technologies pertaining to water and wastewater.
Nearly 1.2 billion people, or approximately one-fifth of the world's total population, are all regions of the world home where there is a shortage of physically available water as well as other problems associated with drinking water. Additional 1.6 billion people, or over one-quarter of the world's population, are affected by the lack of economic assistance for accessing fresh water from a variety of water resources. This accounts for a significant portion of the world's population. The diminishing water resources and deteriorating water quality are key concerns in a number of developing regions across the globe. In addition, nations like India and China, which both have substantial populations, present an opportunity for growth in the market for water and wastewater treatment equipment.
Regulations Enforcing Water Treatment
Increased scrutiny is being directed into the processes of treating and disposing of wastewater. The Urban Waste Water Treatment Directive's primary purpose in the European Union (EU) is to safeguard the natural world against the detriments that can be caused by the discharge of wastewater. The Water Framework Directive (2000/60/EC) provides a framework for the protection of groundwater, rivers, and lakes, as well as estuaries, transitional waters, and coastal waters. Its goal is to ensure that all bodies of surface water are in healthy chemical and ecological status, with minimal symptoms of effect from human growth. Therefore, the demand for wastewater treatments has increased as a result of expanding industrialization, population, and urbanisation, which has been driving the expansion of the worldwide water and wastewater treatment market.
The volume of wastewater generated has increased dramatically throughout the recent past as a direct result of the proliferation of technologically advanced production processes. Companies that process chemicals, pesticides, rare metals, and other potentially hazardous chemicals and materials produce effluents that are hazardous to the environment and have the potential to cause catastrophic effects if they are not adequately treated before being dumped into freshwater sources. Therefore, organisations like the United States Environmental Protection Agency (EPA) and the Food and Agriculture Organization (FAO) have established regulatory limitations on the traces of such compounds that can be found in effluents before they are released into the environment. For instance, the Environmental Protection Agency (EPA) has disseminated the Oil and Gas Extraction Effluent Guideline & Standards, which were most recently revised in 2016. This document addresses the wastewater that is released from activities such as oil drilling, production, and wellness treatment, and it applies to coastal areas, land, and offshore locations.
The regulations involve incarceration as well as significant penalties as consequences for anyone who violates them. Because of the prevalence of such stringent rules, enterprises have been forced to construct treatment plants and perform timely maintenance. As a result, it is anticipated that the market will be driven forward in the years to come by the implementation of rigorous laws for industries regarding the treatment of water and wastewater around the world.
High Expenses of Installation, Equipment, And Ongoing Operations Are a Constraint
The installation of water and wastewater treatment equipment is expensive, despite the fact that there are several benefits associated with water treatment. In the market for water treatment equipment, one element that acts as a restraint is the high cost of both the equipment itself and the operation of the system. Technologies of disinfection such as chemical treatment through the use of chlorine gas require massive storage facilities for the water that is to be treated. In undeveloped countries, the level of infrastructure and equipment of this kind is very low. Ozonation and ultraviolet light equipment are too expensive for use in low-volume industrial settings. The municipal sectors of developed countries in Europe and North America have utilised ozonation and ultraviolet (UV) equipment, however, the market share of these technologies is very low in other regions, including APAC. The cost of desalination equipment is prohibitively high for countries that are still in the process of building their economies. In a similar vein, the costs associated with the operation and maintenance of the water treatment systems are rather substantial. For instance, the processing and treatment of water by treatment systems require a significant amount of energy, which the treatment systems themselves consume. These issues are brought into sharper focus in economically developing countries in Africa, where around 45% of the population does not have access to water that is fit for consumption due to a lack of infrastructure. In addition, many nations lack the fundamental infrastructure necessary for the distribution and storage of water. This may prove to be a roadblock in the path of expansion of the water and wastewater treatment business around the world.
Growing Demand for Improved Water Treatment Technologies That Are Also Energy Efficient Presents an Opportunity
The current worldwide energy problems are not only caused by the depletion of conventional energy reserves; they are also caused by the environmental effects of conventional energy sources, which are caused by their extraction, treatment, emissions related to their use, waste disposal, and recycling. As a result, equipment used for water treatment is likewise being pressured to meet the growing demand for solutions that are less draining on the environment's resources. Equipment for the treatment of water that is based on membranes plays a significant part in the preservation of sustainability in relation to water and energy. The majority of these membranes find their most extensive usage in a variety of industrial settings. Examples include the treatment of wastewater and water using membrane reactors (MBR), the desalination of seawater using RO, membrane-based fuel cells, lithium-ion battery packs, and other types of battery packs. In addition to alleviating concerns regarding water and energy scarcity, membrane systems meet sustainability benchmarks concerning environmentally favourable parameters, land utilisation, flexibility, and adaptability. Alternately, improvements need to be made to membrane technology in terms of cost and affordability, energy consumption, and efficiency. Therefore, technological advancements in membrane equipment are necessary in order to accomplish such improvement. Because of these conditions, possibilities for the development of membrane technologies and the advancement of membrane equipment are anticipated to arise in the future in order to address issues of water and energy sustainability.
The High Initial Investment Restraining the Market Expansion
Even though enterprises are subject to severe rules on the treatment of wastewater, businesses are discouraged from installing modern treatment technologies on their premises because the construction of such plants requires significant financial investment. The complexity of the operations results in a greater need for human labour, which in turn contributes to a rise in the cost of operations. However, because of rising levels of competition and shrinking profit margins, businesses are becoming less interested in making such big expenditures, which in turn has a negative impact on the expansion of the water and wastewater treatment sector.
Infrastructure Remains Outdated, New Installations or Modernization to Cost Significantly
The majority of the world's wealthy nations are currently grappling with the problem of ageing infrastructure. These nations have water treatment infrastructure that was established decades ago, however, they continue to employ the same outdated systems. The reinstallation and modernization of these ageing infrastructures will need significant financial investments. Developed economies were responsible for building all of the necessary water infrastructures in the early years of the industrial revolution. In contrast to this, a number of developing nations that still have a large population that lacks access to sufficient water resources have only recently begun to construct their water infrastructure. In most cases, water and wastewater treatment plants have reached the end of their useful lives. This is due to the fact that water and wastewater treatment systems have a service period that ranges from around 70 to 80 years. In addition, the water mains in some countries are not properly maintained, leading to water quality issues. As a result, substantial investments are required across the board in order to restore and modernise the deteriorating water infrastructure. The intended rehabilitation or rebuilding of outdated water facilities will add to the supply of fresh water; however, the installation and upgrade of new equipment and system to replace the existing infrastructure is anticipated to take place in a relatively small quantity.
Membrane Separation Segment Dominates the Global Revenues Among Other Equipment
In 2021, the membrane separation category held the largest share of the market revenues, accounting for 20% of the global sales. During the forecast period of 2023 to 2030, it is anticipated that this market category would increase at the highest CAGR. The process of membrane separation is a type of physical treatment that consists of extracting particular components from a solution by forcing feed water under high pressure through a membrane that is only partially permeable to liquids. In comparison to other technologies, membrane separation offers a variety of benefits, the most notable of which are the limited space required for operation and excellent filtration performance.
Biological treatment is typically a second step that comes after primary treatment and is used to remove any contaminants that are still present. Strict rules require the use of environmentally friendly methods in the manufacturing and municipal sectors with the goal of reducing the amount of water pollution produced. It is anticipated that developed markets, such as the United States of America, Canada, Germany, and Japan, will experience an increase in the demand for biological treatment equipment.
During the period covered by the forecast, it is anticipated that the sludge treatment segment will record the second-highest CAGR. The processes of drying, screening, thickening, and dewatering sludge are included in these systems. In order to prevent the disturbance of the succeeding sludge treatment operations, screening equipment for sludge is utilised to remove particles such as plastics, fibres, and hair from the sludge.
Tertiary Treatment Leading Among Process Segments
In 2021, the tertiary treatment process segment was the market leader contributing about 45% of the global revenues. Furthermore, this segment is anticipated to expand further at the quickest CAGR of 5.5% from 2023 to 2030. The quality of the effluent is improved by the use of tertiary treatment before it is either reused or released into the environment. Following the completion of secondary treatment operations, this step removes any inorganic chemicals and compounds, as well as any remaining bacteria, viruses, and parasites from the water, making it suitable for subsequent usage.
Primary treatment involves removing heavy solids and floating debris from the effluent using mechanical and chemical processes. The treatment process for wastewater involves the use of numerous tanks and filters, which work together to remove impurities from the water. During the upcoming time period, it is anticipated that the primary treatment's relatively low operating costs and high market visibility will play important roles in expanding the application breadth of the therapy.
It is anticipated that the secondary treatment process segment would record the second-fastest CAGR throughout the period from 2023 to 2030, which is 5%. Trickling filters, bio-towers, rotating biological contactors, and activated sludge systems are all examples of the types of equipment used in secondary treatment, which is mostly utilised for the removal of soluble organic matter and compounds like phosphorus and nitrogen. Both aerobic and anaerobic biological methods may be utilised in the subsequent treatment of wastewater.
An advanced treatment system known as a membrane bioreactor is one that integrates the conventional biological treatment processes, such as the activated sludge process, with membrane filtration in order to facilitate the removal of organic and suspended solids in a manner that is both more efficient and effective. Membranes designed for either microfiltration or ultrafiltration are utilised in order to accomplish solid-liquid filtration.
Municipal Application Segment Dominated the Revenues in 2021
In 2021, the municipal application segment was the most profitable and held the market leadership position, accounting for 65.0% of the total revenue. It is anticipated that there will be an increase in product demand in the municipal sector, particularly in developing markets like China, India, and Brazil. This increase will be driven by a growing urban population as well as favourable government policies that are focused on promoting infrastructure development.
Effluent Organic Matter (EfOM), pathogens, and nutrients are removed from wastewater as part of the treatment process at municipal wastewater treatment plants. This is done primarily for the purpose of protecting natural aquatic systems and water resources. The growth of this market segment is anticipated to be boosted throughout the forecast period as a result of rising awareness concerning wastewater treatment and an increasing focus on the part of governments around the world to improve water and wastewater treatment infrastructure.
During the period covered by the forecast, the industrial application segment is predicted to see the highest CAGR, which is expected to be 5.3%. This market offers a wide range of potential applications for both unprocessed and treated water in a variety of business sectors. High demand for fresh water and water that has been purified is the result of rapid industrialization, the development of new technologies, and an increase in the number of manufacturing units. It is projected that the aforementioned elements will contribute to an increase in the product's penetration in the industrial market.
The environment has deteriorated as a result of industrial wastewater effluents that have either not been treated at all or have received insufficient treatment as the number of industrial operations and the rate of urbanisation have increased. On the other hand, an increasing number of people are becoming aware of the damage that is being done to the environment, which, in conjunction with increasingly stringent regulations regarding the discharge of effluents from industries into water bodies, is expected to drive the growth of the segment.
Commercial enterprises, healthcare facilities, industrial units, sports facilities, educational institutions, and transportation facilities are all included in the non-residential portion of the real estate market. It is anticipated that this market segment will experience the most rapid expansion in terms of both volume and value.
During the period of the forecast, the Wastewater Treatment Segment is Expected to Experience Significant Growth
When broken down by application, it is anticipated that the wastewater treatment segment would post the highest CAGR over the course of the projected period. The rapid growth of industrialization and urbanisation, the rising focus on water quality from the industrial sector, the depletion of freshwater resources, the increasing necessity for recycling and reusing water, and the growing focus on industrial wastewater treatments are all factors that are contributing to the expansion of this market segment.
The consumption of water for agricultural purposes accounts for more than 30% of the world's total demand, which contributes to the municipal sector's market domination. In addition, the utilisation of municipal water for recreational activities like swimming pools and adventure parks is anticipated to significantly raise the demand for innovative treatment technologies. In the following years, it is anticipated that the industrial sector would enjoy a significant amount of expansion. This might be ascribed to the application of stricter restrictions, which are anticipated to be applied in developing nations. In the not-too-distant future, the progression of technologies such as ozone treatment and bioremediation, both of which were developed by Culligan Industrial Water and Suez Worldwide, will be an essential component in driving the growth of specific market segments.
Distillation System Led the Technology Market
The distillation systems market is anticipated that this market segment would witness the fastest growth during the forecast period of 2023 to 2030. This purification procedure ranks up there with some of the earliest technologies. After the water has been heated to its boiling point, the vapour that results from the boiling process rises into a condenser, where it is subsequently cooled, condensed, collected, and finally stored. The vast majority of contaminants are removed through this procedure; those that remain are stored within the vessel. The procedure, on the other hand, is not thought to be entirely risk-free and necessitates a more comprehensive evaluation.
PoU Installation to Lead the Growth During the Forecast Period
The point of use (POU) units and the point of entry (POE) units are the two primary segments that make up the market for water treatment systems. The point-of-use (POU) installation market is anticipated to display a CAGR of 8.5% during the forecast year 2023 to 2030. This is primarily attributable to the segment's competitive price, as well as its easy installation and utilisation of the product line. In developing nations like India and South Africa, the widespread adoption of faucet-mounted filters is particularly notable. On the other hand, point-of-entry systems are becoming increasingly popular throughout Europe and North America, mostly because of the aesthetic value they provide. Due to the fact that POE devices are installed centralised and inconspicuously, the installation of separate filters is unnecessary.
APAC Remains as a Global Leader
In 2021, the Asia-Pacific region was the most lucrative market for water treatment systems, accounting for more than 35% of the total revenue worldwide. It is anticipated that the rapid rate of industrialization and urbanisation in the region, as well as the improvement of public infrastructures, such as healthcare, transportation, and sports facilities in countries such as China, India, and South Korea, will have a positive effect on the growth of the market over the course of the forecast period. Specifically, it is anticipated that this effect will be positive.
The increasing population, urbanisation, and socioeconomic development are some of the variables driving the demand for water in the region are some of the reasons that are projected to drive demand in the market for water treatment systems in Europe. According to the World Resources Institute (WRI), nations like Greece, Italy, Portugal, and Spain are already experiencing significant levels of water stress, which is forecasted to become even more severe in the years to come as a direct result of climate change. Therefore, it is anticipated that the growing need for water desalination would push the requirement for water desalination, thereby driving up the demand for water desalination equipment in the years to come. In addition, because Europe is home to a sizable population of refugees and migrants, many of whom have fled war-torn countries like Syria, Afghanistan, and Iraq, the region is likely to experience an increase in the need for water that can be consumed safely.
The markets in North America and Europe are pulling ahead of the competition in the global market for water treatment systems, with a combined revenue share of approximately 42%.
It is anticipated that growing investments in the chemical, pharmaceutical, food and beverage, and automotive industries of the United States and Canada will play a significant role in driving the demand for water treatment systems in North America during the projected period. This is due to the fact that these industries use large amounts of water in their production processes. A surge in the demand for water treatment systems can be attributed to the growing popularity of multifamily housing complexes as well as an increase in consumer knowledge regarding the need for water filtration. The Environmental Protection Agency of the United States is responsible for carrying out administrative actions to guarantee that public water systems offer clean and safe water for consumption. It is predicted that the government's announcement in May 2021 of the Drinking Water and Wastewater Infrastructure Act of 2021, which includes an investment of $35 billion, will also present opportunities for the market for point-of-entry water treatment systems. The percentage of homes that are connected to wastewater treatment facilities ranges from approximately 97% in western and central Europe to approximately 70% in southern, south-eastern, and eastern Europe. Having said that, urban wastewater treatment is currently focusing on tackling difficulties such as changes in demographics, climate change, and the appearance of contaminants. As a result, they are garnering a large amount of attention from various stakeholders.
Over the course of the projected period, it is anticipated that the demand for water treatment systems in MEA will exhibit a CAGR of 7% during the forecast period. In the next years, it is anticipated that the need for water treatment systems will be further driven by rising water usage on a per-person basis in the region, in addition to the region's expanding population as a direct result of greater immigration into the region. In addition, an increase in tourism, particularly in the Middle East, is anticipated to place a strain on the water resources in this region. As a result, it is projected that the expanding hospitality sector will function as a key driver for the growth of the water treatment systems market over the course of the following years. This growth will coincide with economic expansion in the region.
Market Remains to Be High- Fragmented and Competition to Intensify During the Forecast Period
The market is characterised by the presence of both multinational and regional players who are engaged in the designing, manufacturing, distribution, and installation of a wide range of products the market is characterised by the presence of both multinational and regional players. Large corporations have made significant investments in research and development projects. In addition to this, they are concentrating on incorporating cutting-edge technology in order to come up with solutions that are more effective and efficient and which can be used in the market. Vigie COVID-19 is an innovative technology for rapidly identifying and computing the COVID-19 virus, which is highly prevalent in wastewater. Veolia, IAGE, which is a company, and the IPMC at the CNRS-Université Côte d'Azur are continuing to collaborate on its development.
This strategy was initially implemented for the first time in September 2020. Researchers have already been able to recognise and calculate the Alpha, Gamma, and Beta versions, as well as the potentially harmful delta variant from a year ago and the new Omicron variant that is being discovered right now.
Companies are concentrating on the water and wastewater treatment equipment's potential economic impact as a result of its widespread application in the industrial and municipal sectors. Market participants are developing relationships with manufacturing businesses to give technical expertise in a variety of industries, including the food and beverage industry as well as the oil and gas industry. There are certain transitions that leading the market currently. For example, SéchéEnvironnement and Veolia reached a consensus and signed a contract in the month of May 2023. SéchéEnvironnement has reached an agreement with Veolia to take over a section of the industrial water treatment services business that Veolia currently operates in France.
In the market for water and wastewater treatment equipment, some of the leading companies include Veolia Water Solutions & Technologies (France), SUEZ SA (France), Xylem, Inc. (United States), Dow Water & Process Solutions (United States), GE Water & Process Technologies (United States), Evoqua Water Technologies LLC (United States), Aquatech International LLC (United States), Ecolab, Inc. (United States), 3M (Uni The competition among these firms is fierce, and the primary areas in which they fight with one another are product prices and quality, product portfolios, after-sale services, customised solutions, and so on.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Water and Wastewater Treatment market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Equipment
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Technology
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Installation
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
