Global Water Market Outlook to 2030

Global Water Market Overview

• The global water market reached a valuation of USD 303 billion in 2023, driven by increasing urbanization, industrial demand, and the need for advanced water management solutions. The market is propelled by the growing necessity for clean and safe water amidst rising population densities and environmental concerns. Technological advancements in water treatment and desalination further bolster the market's growth prospects.
• Key players in the global water market include Veolia Environnement, Suez Environnement, Xylem Inc., Danaher Corporation, and Ecolab Inc. These companies have a significant presence due to their extensive portfolios in water treatment, wastewater management, and desalination technologies. Their strategic acquisitions and technological innovations have positioned them as leaders in the industry.
• In 2024, Suez Environnement has secured three new water projects in Asia, focusing on digital solutions, seawater desalination, and water reuse. This initiative, announced at the Singapore International Water Week, highlights Suez's commitment to addressing critical water issues and enhancing community resilience against climate impacts.
• The United States dominates the global water market due to its extensive industrial base, advanced infrastructure, robust regulatory framework, and significant government initiatives like the Clean Water State Revolving Fund (CWSRF). Additionally, the presence of major market players such as Xylem Inc. and Ecolab Inc., along with substantial investment in research and development, drives continuous innovation and efficiency in water management technologies.

Global Water Market Segmentation

The Global Water Market can be segmented based on several factors such as product type, application, and region.

By Product Type: Market segmentation by product type is divided into water treatment technologies, desalination plants, and smart water management systems. In 2023, water treatment technologies lead the global water market by product type, accounting for the largest value share. This dominance is driven by the essential role these technologies play in ensuring safe and clean water supply for municipalities and industries. Companies like Veolia and Suez are at the forefront, providing innovative and efficient treatment solutions.

By Application: Market segmentation by application is divided into municipal water supply, industrial water use, and agricultural water use. In 2023, the municipal water supply sub-segment leads the global water market by application, accounting for the largest value share. This dominance is driven by the increasing urban population and the need for sustainable water infrastructure in cities. Government initiatives aimed at ensuring access to safe drinking water are significant contributors to this segment's growth.

By Region: Market segmentation by region is divided into North America, Europe, APAC, Latin America, and MEA. In 2023, North America dominates the global water market by region, capturing the largest value share. This is due to the region's extensive industrial base, high demand for advanced water management systems, and significant investments in water infrastructure. The presence of major companies and government initiatives further supports this dominance.

Global Water Market Competitive Landscape

• Ecolab Inc.: In 2024, Ecolab made a minority equity investment in Aquatech International. This partnership enhances both companies' capabilities in providing comprehensive water management solutions, reflecting their commitment to advancing sustainable water practices.
• Xylem Inc: In 2024, Xylem committed USD 50 million to expand its corporate venture capital investments, focusing on innovations in water scarcity, quality, and decarbonization. This initiative aims to support startups and technologies tackling critical water challenges, reflecting Xylems dedication to advancing solutions for sustainable water management.

Global Water Market Analysis

Market Growth Drivers

• Increasing Urbanization and Population Growth: The global urban population is expected to reach 6 billion by 2045, significantly driving the demand for municipal water supply systems. Cities are expanding their infrastructure to provide clean drinking water and manage wastewater effectively. In India, urban water demand is estimated to grow to 70 billion cubic meters by 2025, necessitating substantial investments in water treatment and distribution networks.
• Industrial Expansion and Water Usage: Industries such as manufacturing, pharmaceuticals, and energy are increasing their water use for cooling, processing, and cleaning purposes. Industrial water usage in China is reached 96.84 billion cubic meters in 2024, driven by rapid industrialization and stringent environmental regulations aimed at reducing wastewater discharge.
• Climate Change and Water Scarcity: Climate change is exacerbating water scarcity issues globally, compelling governments and organizations to invest in advanced water management solutions. In 2024, regions like the Middle East and North Africa (MENA) are particularly affected, with the World Bank estimating that water scarcity could cost these regions up to 6% of their GDP. Investments in desalination plants and water reuse technologies are crucial to address these challenges.

Global Water Market Challenges

• High Operational Costs: The high operational and maintenance costs associated with water treatment and desalination plants pose significant challenges. The cost of desalinated water in Saudi Arabia is around USD 2.5 per cubic meter in 2024, making it a financially burdensome option for many regions. These costs include energy consumption, plant maintenance, and distribution infrastructure.
• Aging Infrastructure: Many regions, particularly in developed countries, are grappling with aging water infrastructure that requires extensive upgrades and replacements. In the United States, the Environmental Protection Agency (EPA) reported in 2024, the next 20 years to maintain and upgrade the country's water infrastructure, highlighting a critical challenge in ensuring reliable water supply and quality.

Global Water Market Government Initiatives

• Clean Water State Revolving Fund (CWSRF): In 2024, the United States allocated USD 8.5 billion to the Clean Water State Revolving Fund (CWSRF) to finance a wide range of water infrastructure projects. This initiative aims to address critical water infrastructure needs, including wastewater treatment, stormwater management, and water quality improvement projects across the country.
• EU Water Framework Directive: The European Union's Water Framework Directive continues to be a significant regulatory initiative, driving investments in water quality improvement and sustainable water management practices. In 2024, the EU support member states in implementing measures to achieve the directive's goals by 2027, emphasizing the importance of protecting and enhancing water resources.

Global Water Market Future Outlook

The market outlook for 2028 will be driven by continuous advancements in water management technologies and increasing investments in sustainable practices. The integration of smart systems, decentralized solutions, and circular water management will significantly shape the market.

Market Future Trends

• Growth in Circular Water Economy: By 2028, the adoption of circular water management practices, where wastewater is treated and reused for various applications, will increase significantly. Governments and industries will prioritize water recycling to conserve resources and reduce environmental impact. It is estimated that over 50 billion cubic meters of wastewater will be reused annually, supported by advancements in membrane filtration and biological treatment technologies.
• Expansion of Decentralized Water Systems: Decentralized water systems will gain prominence in the next five years as cities and rural areas seek resilient and cost-effective water solutions. These systems, which include localized treatment plants and rainwater harvesting units, will reduce reliance on centralized infrastructure. By 2028, decentralized systems are expected to serve over 1 billion people worldwide, enhancing water accessibility and reducing infrastructure costs.