Water and Wastewater Treatment Equipment - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The water and wastewater treatment equipment market is projected to grow from USD 73.82 billion in 2025 and USD 76.41 billion in 2026 to USD 98.72 billion by 2031, and is expected to register a CAGR of 5.26% between 2026 and 2031. This report is Segmented by Equipment Type (Filtration Equipment, Membrane Separation Systems, and More), Application (Water Treatment, Desalination, and More), End-Use Industry (Municipal and Industrial), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Water and Wastewater Treatment Equipment Market Trends and Insights

Rising Industrial Water Reuse Mandate

Industrial water reuse has shifted from a voluntary target to a formal operating requirement in several major economies, giving the water and wastewater treatment equipment market a more stable demand base. In April 2026, the U.S. Environmental Protection Agency launched Water Reuse Action Plan 2.0, explicitly linking reuse to semiconductor manufacturing, data centers, and energy production, which places advanced treatment equipment within national industrial priorities. In the water and wastewater treatment equipment market, this is significant because reuse projects typically require more treatment stages than discharge-only systems, including filtration, membrane separation, and disinfection. Industrial buyers are treating water reuse as a supply-security measure, not only an environmental response, as water access now affects uptime in production-intensive facilities. This shift supports equipment demand even when broader capital spending turns selective, since water reuse can protect output and ensure compliance. It also increases the value of suppliers that can package equipment with controls, remote monitoring, and performance guarantees in a single offering.

Expansion of Modular Decentralized Treatment Systems

Modular systems are shortening project lead times and widening the addressable base for the water and wastewater treatment equipment market. In 2025, Grundfos completed the acquisition of Newterra, indicating that major suppliers view packaged and decentralized systems as an important part of future growth in treatment solutions. Modular systems reduce site engineering complexity and can be deployed across remote communities, industrial parks, and smaller treatment points. They also allow customers to phase capital spending over time, which is useful in markets where centralized infrastructure projects progress slowly. As modular adoption increases, equipment standardization becomes more feasible, supporting faster replication across locations. Basic modular assemblies may become more price competitive, while differentiated suppliers maintain stronger pricing through controls, service, and application-specific design.

High Capital Investment and Operational Costs

High capital and operating costs remain a key restraint on the water and wastewater treatment equipment market, particularly for advanced systems. A 2025 article in Nature Reviews Clean Technology described zero and minimal liquid discharge systems as capital-intensive and highlighted the burden created by energy use, concentration steps, and downstream brine handling. This cost pressure divides buyers into two groups: large utilities and industrial users that can proceed with investments, and smaller operators that delay upgrades. The challenge is more pronounced in emerging economies, where project timing often depends on public finance capacity and lender support. Even when compliance pressure exists, upfront expenditure on membranes, pumps, polishing units, and thermal stages can defer procurement decisions by several years. This leaves suppliers under pressure to demonstrate lower lifecycle costs, phased deployment options, and improved operating efficiency before customers commit.

Other drivers and restraints analyzed in the detailed report include:

• Tighter Zero-Liquid-Discharge Compliance
• Growth in Per- and Polyfluoroalkyl Substances (PFAS), Microplastics, and Emerging Contaminants
• Membrane Fouling and Brine Disposal Challenges

Segment Analysis

Filtration equipment held 28.74% of 2025 revenue, while membrane separation systems are forecast to grow at 6.52% CAGR through 2031. Filtration maintains its lead in the water and wastewater treatment equipment market due to its use across municipal intake treatment, industrial pretreatment, and final polishing stages. Its broad installed base supports recurring replacement demand in mature regions, while greenfield projects in Asia sustain volume growth. Membrane separation systems are growing faster as they are central to reuse, desalination, pathogen control, and advanced contaminant removal. Their stronger growth also reflects their role in helping customers meet tighter performance requirements within smaller plant footprints.

DuPont launched upgraded FilmTec NF270 nanofiltration elements for drinking water applications in March 2026, with the release focused on biofouling resistance, permeability, and lower energy consumption. This product direction aligns with the water and wastewater treatment equipment market, where buyers weigh operating costs as closely as treatment performance. Disinfection equipment continues to benefit from pathogen control requirements, and UV systems remain relevant as utilities manage treatment quality and by-product concerns. Sludge treatment and biological treatment equipment are also seeing upgrade activity as plants respond to tighter handling and removal requirements. SUEZ won a sludge dewatering contract in Hong Kong in January 2026, demonstrating that dense urban projects continue to support specialized equipment demand in large treatment facilities.

Complete Report Scope:

• By Equipment Type
  • Filtration Equipment
  • Membrane Separation Systems
  • Disinfection Equipment
  • Sludge Treatment Equipment
  • Biological Treatment Equipment
  • Other Equipment Type
• By Application
  • Water Treatment
  • Wastewater Treatment
  • Water Reuse and Recycling
  • Desalination
• By End-use Industry
  • Municipal
  • Industrial
• By Geography
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • North America
    • United States
    • Canada
    • Mexico
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Russia
    • Rest of Europe
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle-East and Africa
    • Saudi Arabia
    • South Africa
    • Rest of Middle-East and Africa

Geography Analysis

Asia-Pacific accounted for 40.32% of 2025 revenue and is projected to record the fastest regional CAGR of 5.82% through 2031, giving it the largest share by geography in the water and wastewater treatment equipment market. The region combines municipal infrastructure expansion with industrial compliance enforcement, supporting both volume growth and increasing technology intensity. India remains a major demand center, where large household water programs drive municipal capital expenditure while compliance requirements continue to tighten across water-intensive industries. The Central Pollution Control Board reinforced this direction in 2025 through zero-liquid-discharge enforcement actions affecting hundreds of textile units, signaling stricter compliance in industrial clusters. Mature markets such as Japan, South Korea, and Singapore show spending concentrated on membrane upgrades, advanced disinfection, and digital control systems rather than basic capacity expansion.

North America is the second-largest regional market for water and wastewater treatment equipment, driven by aging infrastructure renewal, per- and polyfluoroalkyl substances (PFAS) treatment demand, and water stress linked to data-center expansion. The U.S. Environmental Protection Agency outlined nearly USD 1 billion in PFAS-related support in 2026, translating policy into procurement of adsorption, ion exchange, and membrane technologies. The U.S. Senate introduced the Advancing Water Reuse Act in 2025, which adds a fiscal mechanism that could improve the economics of reuse projects for equipment manufacturers. Grundfos expanded dosing skid production in Fresno in 2025, reflecting suppliers localizing output to reduce lead times and serve North American projects more directly. Canada and Mexico are smaller in absolute equipment demand but continue to generate opportunities in mining water management and industrial effluent treatment.

Europe is characterized by high replacement intensity and detailed regulation, which keeps the water and wastewater treatment equipment market active even where basic treatment coverage is already mature. Directive (EU) 2024/3019 requires member states to implement broader urban wastewater treatment obligations, including expanded collection and treatment requirements that will support plant upgrades. Directive (EU) 2026/805 introduces tighter water quality standards, which will affect industrial discharge conditions across manufacturing regions. In the Middle East and Africa, long-tenor performance contracts in Oman and Jordan illustrate how suppliers are bundling equipment, operations, and digital oversight under single commercial structures. South America and Sub-Saharan Africa remain longer-cycle opportunities, where coverage gaps and industrial water demand are building future project pipelines, though financing conditions continue to shape project timing.

List of Companies Covered in this Report:

• Aquatech International LLC
• Calgon Carbon Corporation
• DuPont
• Ecolab Inc.
• Grundfos Holding A/S
• H2O Innovation Inc.
• HUBER SE
• Industrie De Nora S.p.A.
• Kurita Water Industries Ltd.
• METAWATER Co., Ltd.
• Organo Corporation
• Ovivo Inc.
• Pentair
• Smith and Loveless Inc.
• SUEZ S.A.
• Sulzer Ltd.
• Thermax Limited
• Trojan Technologies
• Veolia
• Xylem

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support