Industrial Water Reuse and Recycling Market Report 2026

The industrial water reuse and recycling market size has grown strongly in recent years. It will grow from $16.32 billion in 2025 to $17.86 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to stringent environmental regulations on wastewater discharge, increasing industrial water demand, rising awareness of water scarcity, adoption of conventional water treatment technologies, growth in manufacturing and process industries.

The industrial water reuse and recycling market size is expected to see strong growth in the next few years. It will grow to $25.46 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increasing focus on sustainable industrial practices, technological advancements in filtration and treatment systems, rising industrial water reuse initiatives, adoption of smart water monitoring solutions, expansion of industrial wastewater management programs. Major trends in the forecast period include rising adoption of advanced membrane filtration systems, increasing implementation of zero liquid discharge solutions, growing focus on industrial wastewater recycling, expansion of chemical and biological water treatment technologies, integration of real-time water monitoring and analytics.

The rising water scarcity is expected to drive the growth of the industrial water reuse and recycling market. Water scarcity occurs when the demand for water exceeds its available supply in a given region, resulting in insufficient access for basic needs. This scarcity is increasing due to climate change, which leads to altered precipitation patterns, more frequent droughts, and higher evaporation rates, all of which reduce water availability. Industrial water reuse and recycling help address water scarcity by lowering freshwater demand, making them particularly suitable for industries with high water consumption. These systems enhance water efficiency by treating and reusing water, supporting sustainable water management in water-stressed areas. For example, in August 2025, the World Health Organization (WHO), a Switzerland-based intergovernmental organization, reported that in 2024, 2.1 billion people worldwide lacked access to safely managed drinking water, including 106 million who relied on untreated surface water, highlighting ongoing challenges in water availability. Consequently, the growing water scarcity is fueling the expansion of the industrial water reuse and recycling market.

Leading companies in the industrial water reuse and recycling market are prioritizing the development of innovative solutions, such as advanced oxidation processes (AOPs), to improve treatment efficiency, remove emerging contaminants, reduce environmental impact, and meet strict water quality standards. AOPs are a set of highly effective water treatment technologies that utilize powerful oxidants, such as ozone, hydrogen peroxide, or UV light, to break down and eliminate organic pollutants, pathogens, and emerging contaminants from water. For example, in May 2024, Xylem Inc., a US-based water technology company, introduced Reuse Brew, a Bavarian lager made from high-quality recycled wastewater. The brew is produced using advanced oxidation processes, including ozonation, UV irradiation, hydrogen peroxide treatment, and nanofiltration, which remove 99.999% of chemicals and contaminants, ensuring exceptional safety and purity. This groundbreaking launch underscores the transformative potential of advanced water recycling technologies in fostering sustainable water management and enhancing climate resilience.

In September 2023, CECO Environmental Corp., a US-based diversified industrial company, acquired Kemco Systems Co. LLC for an undisclosed amount. Through this acquisition, CECO aims to expand its industrial water and wastewater treatment offerings in North America, strengthen its water recycling and energy conservation solutions, and serve high-value sectors such as food processing, commercial laundry, and ready-mix concrete. Kemco Systems Co. LLC, based in the United States, specializes in industrial water reuse, wastewater treatment, and energy-efficient water management systems.

Major companies operating in the industrial water reuse and recycling market are Veolia Environnement S.A., SUEZ SA, Xylem Inc., Evoqua Water Technologies, Aquatech International LLC, DuPont Water Solutions, Kurita Water Industries Ltd., IDE Technologies Ltd., Fluence Corporation Limited, Pentair plc, GE Water & Process Technologies, Hitachi Zosen Corporation, Thermax Limited, Ovivo Inc., Toshiba Infrastructure Systems & Solutions Corporation, Kubota Corporation, Ecolab Inc., Triveni Engineering And Industries Limited, Trojan Technologies Group, Gradiant Corporation, IDEXX Laboratories (industrial water division), MWH Globa.

North America was the largest region in the industrial water reuse and recycling market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial water reuse and recycling market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial water reuse and recycling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The industrial water reuse and recycling market consists of revenues earned by entities by providing services such as water treatment and filtration, water recovery services, desalination, maintenance and support, and water quality monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. The industrial water reuse and recycling market also includes sales of products including membrane filtration systems, clarifiers and settlers, activated carbon filters, disinfection systems, and chemical treatment solutions. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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