U.S. Water and Wastewater Treatment Market Size, Share & Industry Analysis, By Segment (Chemicals {pH Conditioners, Coagulants & Flocculants, Disinfectants & Biocidal Products, Scale & Corrosion Inhibitors, Antifoam Chemicals, and Other Chemicals}, Equipment {Biological, Filtration, Sludge Treatment, Disinfection, Demineralization, and Other Equipment}, and Services {Designing & Installation, Operations, Maintenance, and Others}), By Application (Industrial and Municipal), and Country Forecast, 2024-2032

The United States water and wastewater treatment market size was valued at USD 113.76 billion in 2023 and is projected to grow from USD 121.40 billion in 2024 to USD 206.64 billion by 2032, exhibiting a CAGR of 6.9% during the forecast period.

Water and wastewater treatment is the process of purifying and cleaning water that is contaminated or considered unfit for consumption in different applications such as industrial and municipal. This process includes both the purification of water before it is used for consumption and the treatment of wastewater to get rid of impurities before it is released back into the environment. Companies in this sector offer services such as disinfection, filtration, chemical treatment, membrane separation, utilizing advanced technologies to remove contaminants from water and wastewater.

The COVID-19 pandemic raised the need for an improvised supply chain and the adoption of flexible working practices. Traditional supply chains of water and wastewater treatment are heavily dependent on human workforce, and faced significant challenges during the outbreak due to a shortage of workforce. Leading manufacturers experienced disruptions, delaying orders, and business impacts. As economies reopen, the ongoing pandemic-related issues continue to strain supply chains with inventory buffers, diversity pressure, changing consumer behavior, price fluctuations, trade wars, freight imbalances, and manufacturing shifts. Supply chains are becoming costly and sometimes represent the company’s highest cost.  The disruptions occurring in multiple countries have exposed the weakness in traditional supply chains. Additionally, the operations within the value chain are not flexible enough to adjust to changes, such as behavior, price fluctuations, trade wars, freight imbalances, and manufacturing shifts, resulting in an inability to meet stakeholder expectations and the demands of consumers.

U.S. Water and Wastewater Treatment Market Trends

Increased Industrial Activity and Adoption of Advanced Technologies is a Latest Trend

Industrial expansion presents a significant opportunity in the market as increased industrial activity raises demand for high-quality water and effective wastewater management systems. Pharmaceuticals, food and beverage, chemicals, and textile industries require large volumes of clean water for their processes and produce significant amounts of wastewater that must meet regulatory standards through treatment.

For example, the pharmaceutical industry requires large amounts of water for drug manufacturing and cleaning operations. It must ensure thorough treatment of its wastewater, which may contain dangerous chemicals and active medicinal components, before release. Membrane bioreactors and advanced oxidation processes are increasingly being used to comply with rigorous environmental laws while also ensuring operational sustainability.

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United States Water and Wastewater Treatment Market Growth Factors

Surging Demand from Power Sector to Fuel Market Growth

The power sector is creating significant opportunities for the U.S. water and wastewater treatment market. Power plants, particularly thermal power plants, require large volumes of water for cooling and other operational processes, often necessitating treatment to meet specific quality standards before and after use. In 2021, according to the U.S. Department of Energy, the power sector accounts for approximately 40% of the total freshwater withdrawals in the U.S. As the electricity demand continues to grow, the need for efficient water treatment solutions in power plants becomes increasingly crucial.

One area of opportunity lies in advanced water and wastewater treatment technologies, such as Zero-Liquid (ZLD) systems. These systems enable the recycling and reuse of wastewater within power plants, reducing freshwater withdrawals and minimizing environmental discharge impacts. Additionally, the adoption of dry cooling technologies, which significantly reduce water consumption in power plants, has created opportunities for companies offering water and wastewater treatment solutions. California and Arizona, which face water scarcity challenges, have implemented policies encouraging the use of dry cooling systems in new power plant projects.

RESTRAINING FACTORS

Highly Flammable Nature of Water and Wastewater Treatment to Restrict Market Growth

Even though there are strict regulations for water and wastewater treatment, many industries are discouraged from using advanced treatment technologies on-site due to high investments in constructing water and wastewater treatment plants. However, with increased competition and reduced profit margins, companies are becoming more reluctant to make significant investments, leading to a slowdown in the United States water and wastewater treatment market growth. A country's capacity to treat contaminated water and wastewater is correlated with its income level. The treatment capacity in high-income countries is over 70% of wastewater production, compared to 8% in low-income countries. Moreover, it is also challenging to collect and process liquid waste compared to solid waste.

Wastewater management is a time-consuming and complex process that requires significant capital investment and incurs high operational costs for maintaining wastewater collection and processing equipment. Wastewater handling requires skilled workers to perform different duties. As they need to work in other locations, retaining highly professional staff to carry out smooth operations can sometimes be challenging. In addition, liquid waste easily pollutes freshwater resources or the land, emphasizing the need for careful handling. Furthermore, water and wastewater treatment plants become less efficient over time due to the accumulation of deposits in piping systems.

United States Water and Wastewater Treatment Market Segmentation Analysis

By Segment Analysis

Service Segment Dominates Owing to Larger Investment in Maintenance of Water and Wastewater Treatment Facilities

Based on segment, the market is classified into chemicals, equipment, and services. The services segment is anticipated to account for the largest United States water and wastewater treatment market share during the forecast period. The services segment is sub-divided into designing & installation, operations, maintenance, and others. The segment is expected to experience the highest growth as companies focus on constructing novel treatment plants and maintaining existing facilities. Moreover, the increasing requirement to upgrade existing sewage treatment facilities in developed countries also propels the segment’s growth.

The chemicals segment is further segmented into antifoam chemicals, coagulants & flocculants, pH conditioners, scale & corrosion inhibitors, disinfectants, and others. The coagulants & flocculants sub-segment dominates the chemicals segment due to its wide use in the treatment of sludge.

The equipment segment is subdivided into demineralization, filtration, biological, disinfection, and sludge treatment. The disinfection segment is projected to grow at a faster rate due to increasing investment by the government to cut down water-related diseases.

By Application Analysis

Rising Wastewater Demand across Residential Sector to Aid Growth of the Municipal Segment

By application, the market is bifurcated into industrial and municipal. 

The municipal segment held the largest U.S. water and wastewater treatment market share in 2023. Higher production of wastewater through residential buildings and usage of municipal water for adventure parks and swimming pools will boost the water treatment demand from the municipal segment.

 The industrial segment is expected to experience considerable growth in the forthcoming years due to stringent regulations across developing nations. Advancing technologies, such as bioremediation and ozone treatment, pioneered by Culligan Industrial Water and Suez Worldwide, are vital factors fueling market expansion.

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KEY INDUSTRY PLAYERS

Key Players are Adopting Expansion Strategies to Maintain their Position in Market

The market is fragmented, with key players, such as ProMinent, DR. KÜKE GmbH, Ecolab, and Evoqua Water Technologies LLC, holding a leading market share. Manufacturers in this industry are expanding their business to cement their position in the market and alleviate the threat of new entrants. In addition, these firms have signed contracts, inked acquisition deals, and formed strategic partnerships with other market leaders to expand their existing product range and market presence.

LIST OF KEY COMPANIES PROFILED:

• Veolia (France)


• Acciona S.A. (Spain)


• Hydro International (U.K.)


• Orenco Systems (U.S.)


• Aquatech International LLC (U.S.)


• BioMicrobics Inc. (U.S.)


• Calgon Carbon Corporation (U.S.)


• Kemira Oyj (Finland)


• Suez Worldwide (France)


• Xylem (U.S.)


• DuPont (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: Aquatech International partnered with Fluid Technology Solutions, Inc., a producer of sophisticated membranes and separation technologies, to deliver innovative solutions enhanced brine concentration, advanced separation, and water reuse solutions.


• January 2023: Xylem Inc. reached a definitive agreement to acquire Evoqua in an all-stock deal with an enterprise value of roughly USD 7.5 billion. The merged business delivers a comprehensive range of cutting-edge solutions by leveraging Xylem’s global leading position in water solutions and Evoqua’s specialty in advanced treatment systems and services.


• April 2022: To assist the development of cutting-edge water and industrial innovations, Xylem announced investments in venture capital funds Burnt Island Ventures and The Wastly Group’s Funds. These investments were expected to strengthen Xylem Innovation Labs’ open innovation network and its dedication to quickly and widely commercialize the most significant advancements in water technology.


• October 2021: ACCIONA announced its decision to construct the new Ermidas do Sado (Portugal) water treatment plant. The facility features a cutting-edge biological treatment line with a lamination and pretreatment tank, reducing its environmental impacts. The company is using this biological treatment for the first time in Portugal.


• November 2021: BHSL, a parent company of Hydro International, acquired Glan Agua, a leading wastewater and clean water solutions enterprise. The acquisition was made to double BHSL’s revenue and increase its market share in waste and water management services.