Wastewater Treatment Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Wastewater Treatment Services Market is projected to expand from USD 59.12 Billion in 2025 to USD 84.53 Billion by 2031, reflecting a compound annual growth rate of 6.14%. This sector involves the specialized operation, management, and maintenance of infrastructure capable of converting municipal and industrial effluents into environmentally safe water. Key growth determinants include intensifying regulatory mandates to curb pollution and the critical necessity for water reuse amidst global freshwater shortages. Furthermore, rapid urban development is driving the need for expanded sanitation systems, while industrial sectors are increasingly outsourcing complex treatment tasks to ensure regulatory adherence and prioritize their primary production objectives.

Despite these drivers, the industry encounters substantial hurdles due to the massive capital investment needed for infrastructure updates and capacity growth. The fiscal pressure on utility providers often results in the postponement of crucial upgrades, which hinders service efficiency and wider market expansion. Highlighting this financial bottleneck, the American Water Works Association noted in 2025 that financing capital improvements was the primary industry challenge, with merely 41 percent of utilities indicating that current fee structures were sufficient to meet these critical expense requirements.

Market Drivers

The urgent need to modernize and retrofit aging municipal infrastructure serves as a major growth engine for the global wastewater treatment services industry. Utilities worldwide face the imperative to upgrade deteriorating sewer networks and treatment facilities to prevent overflow incidents and comply with increasingly stringent effluent regulations. This operational requirement fuels the outsourcing of maintenance and upgrade initiatives to specialized providers equipped to handle complex capital projects. The magnitude of necessary investment is illustrated by Ofwat's July 2024 'PR24 Draft Determinations', which proposed a record £88 billion spending plan for water companies in England and Wales to enhance infrastructure and services over the coming five years.

Concurrently, the rising demand for water reclamation and reuse strategies is accelerating market growth as organizations strive to mitigate water scarcity risks. Operational models are transitioning from linear disposal methods to circular systems that repurpose purified wastewater for industrial cooling, irrigation, or aquifer replenishment. This shift demands advanced tertiary treatment capabilities, creating significant opportunities for companies specializing in filtration and disinfection. The urgency of this trend is highlighted by the United Nations' 'World Water Development Report 2024', which notes that agriculture consumes approximately 70 percent of global freshwater, necessitating the substitution of potable water with treated effluent. Supporting this transition, the US Environmental Protection Agency allocated nearly $5.8 billion in 2024 through State Revolving Funds for critical water infrastructure endeavors.

Market Challenges

The substantial capital requisite for expanding capacity and modernizing infrastructure represents a major obstacle to the Global Wastewater Treatment Services Market. Utilities are contending with heavy financial loads as they strive to update aging systems in compliance with rigorous environmental standards. These fiscal constraints frequently compel leadership to delay critical projects or reduce the scope of external service agreements, thereby curbing market growth potential. Consequently, the inability to obtain adequate funding results in a growing backlog of deferred maintenance, hindering the implementation of holistic treatment solutions.

The severity of this funding shortage is highlighted by recent industry analyses revealing the gap between required upgrades and available financial resources. According to the American Society of Civil Engineers, the annual funding shortfall for water and wastewater infrastructure in the United States reached an estimated $91 billion in 2024. This figure emphasizes the intense financial pressure that restricts utilities from fully meeting their operational requirements. As these capital limitations endure, the service market faces a consequent deceleration, with potential initiatives postponed until sufficient funding can be secured.

Market Trends

The integration of Artificial Intelligence and Digital Twin technologies is transforming the service sector by allowing utilities to shift from reactive maintenance to predictive asset management strategies. Service providers are increasingly utilizing machine learning algorithms to generate virtual models of treatment plants, facilitating the simulation of operational variables and energy optimization without physical adjustments. This digital evolution is being propelled by significant sector-specific funding aimed at reducing the risks of technology adoption; for example, the BCS, The Chartered Institute for IT, reported in October 2025 that the regulatory body Ofwat expanded its Innovation Fund to £600 million to foster the proliferation of these advanced digital solutions throughout the water industry.

In parallel, the application of Advanced Oxidation Processes for the removal of micro-pollutants has become a rapidly expanding service niche, spurred by a heightened focus on eradicating persistent organic pollutants such as PFAS. Unlike traditional biological treatments, these specialized tertiary protocols are crucial for breaking down stubborn chemicals, necessitating that industrial and municipal clients engage targeted purification services to meet stricter environmental mandates. The commercial potential of this segment is growing swiftly; as noted in Veolia’s 'Key Figures at 30 September 2025' report, the company aims to generate $1 billion in PFAS treatment revenue by the end of the decade, highlighting the significant opportunities for providers skilled in these complex chemical engineering applications.

Key Players Profiled in the Wastewater Treatment Services Market

• Veolia Environnement S.A.
• Xylem Inc.
• Pentair PLC
• Danaher Corporation
• ITT Inc.
• American Water Works Company, Inc.
• Essential Utilities, Inc.
• Siemens AG
• Stantec Inc.

Report Scope

In this report, the Global Wastewater Treatment Services Market has been segmented into the following categories:

Wastewater Treatment Services Market, by Industry:

• Manufacturing
• Pharmaceutical
• Chemical
• Pulp & Paper
• Petrochemical
• Semiconductor
• Others

Wastewater Treatment Services Market, by Treatment Technologies:

• Membrane Separation
• Reverse Osmosis Membranes
• Ultrafiltration Membranes
• Micro-Filtration Membrane
• Nano-Filtration Membrane
• Others

Wastewater Treatment Services Market, by Process:

• Primary Treatment
• Secondary Treatment
• Tertiary Treatment

Wastewater Treatment Services Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Wastewater Treatment Services Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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