Water Recycle & Reuse Technologies Market - Global Forecast 2025-2030

The Water Recycle & Reuse Technologies Market size was estimated at USD 15.56 billion in 2024 and expected to reach USD 16.88 billion in 2025, at a CAGR 9.10% to reach USD 26.25 billion by 2030.

The accelerating challenges of water scarcity, driven by prolonged droughts, shifting precipitation patterns, and rapid urbanization, are underscoring the critical importance of recycling and reuse technologies. In regions such as California, ongoing drought conditions and heightened agricultural and urban demand have prompted innovative onsite water-reuse initiatives that recycle greywater for non-potable applications and explore direct potable reuse to secure municipal supplies. Concurrently, the U.S. Environmental Protection Agency’s National Water Reuse Action Plan highlights growing demands from data centers and manufacturing facilities, which increasingly rely on reclaimed water to support uninterrupted operations and enhance resilience against supply disruptions. As a result, water reuse has emerged as a vital tool for communities, industries, and agricultural sectors seeking reliable, alternative water sources.

The water recycle and reuse sector is undergoing a profound digital transformation, leveraging Internet of Things (IoT) sensors, real-time monitoring platforms, and artificial intelligence to optimize treatment processes and forecast demand patterns. Utilities and industrial operators are deploying predictive maintenance algorithms to reduce downtime and extend equipment lifecycles, while data analytics enable dynamic control of membrane bioreactor performance and energy consumption. At the same time, decentralized water treatment modules are gaining traction, providing modular, scalable solutions closer to end users and reducing the reliance on extensive distribution networks. These localized systems can integrate multiple water sources, including rainwater, stormwater, and greywater, to serve commercial complexes and residential communities efficiently. Public-private partnerships and innovative financing models have emerged to address high capital requirements and de-risk project development, attracting private investment into municipal recycling initiatives and cross-sector collaborations. Furthermore, the convergence of renewable energy integration and decarbonization efforts is reshaping system design, with solar-powered desalination units and biogas recovery from anaerobic digestion reducing the carbon footprint of water reuse facilities. Alongside these advancements, membrane bioreactors, reverse osmosis, and ultraviolet disinfection continue to evolve, delivering higher contaminant removal efficiencies and supporting both non-potable and potable reuse applications across diverse market segments.

In April 2025, the U.S. government implemented a baseline reciprocal tariff of 10 percent on all imported goods, including critical components for water treatment systems, as part of a broader strategy to rebalance trade deficits and strengthen domestic manufacturing capacity. Targeted duties of 25 percent on steel and aluminum used in tanks, piping, and structural elements, 34 percent on filtration membranes from key producers, and 20 percent on smart sensors and IoT devices have substantially increased procurement costs for treatment equipment. The reverse osmosis membrane industry has experienced average import cost increases of approximately 20 percent, while midstream production equipment imports have risen by around 10 percent, placing additional price pressures on U.S. manufacturers and forcing many to reconsider their supply chain strategies. Downstream water treatment and industrial users have faced higher project budgets, prompting delays or scope reductions; surveys indicate that nearly one-quarter of end users have deferred equipment renewals in response to elevated costs.

The market for water recycle and reuse technologies is segmented by a diverse array of treatment platforms, from conventional activated sludge processes and ion exchange systems to advanced membrane solutions such as ultrafiltration with capillary and hollow fiber modules, nanofiltration, and reverse osmosis utilizing spiral wound and tubular membranes. Membrane bioreactor configurations are further distinguished by flat sheet and hollow fiber designs, each offering distinct trade-offs in footprint, fouling resistance, and energy efficiency. Source water categories range from brackish water desalination and stormwater harvesting to the treatment of rainwater, greywater, and treated wastewater effluent, the latter encompassing both domestic and industrial effluent streams. Plant scale considerations vary widely, with large-scale municipal installations coexisting alongside medium and small decentralized units that serve commercial and residential applications directly. Across application verticals, systems are tailored to the specific demands of municipal water supply, industrial process reuse-spanning sectors from chemicals and petrochemicals to pharmaceuticals, food and beverage, power generation, and pulp and paper-and residential and commercial non-potable uses. This multi-dimensional segmentation enables stakeholders to align technology selection with water quality requirements, spatial constraints, and economic considerations.

In the Americas, the United States leads with robust federal initiatives such as the National Water Reuse Action Plan and complementary state-level programs, exemplified by California’s direct potable reuse pilots and Texas’s recent produced water legislation, which collectively drive investment in advanced treatment and resource recovery. Canada’s focus on nutrient recovery from agricultural runoff and Latin American governments’ emphasis on public-private partnerships reflect region-specific water security imperatives. Across Europe, Regulation (EU) 2020/741 has established harmonized quality and monitoring standards for agricultural irrigation reuse, but implementation challenges in smaller municipalities have sparked calls for regulatory refinement to ensure broader access and cost-effective compliance. France has emerged as a pioneer, with Veolia’s Jourdain project demonstrating large-scale potable reuse during dry seasons and leveraging compact Barrel™ units to expand drought-resilient supply. In Asia-Pacific, Singapore’s integrated Deep Tunnel Sewerage System and Tuas NEWater expansion are set to increase recycled water contributions from 40 percent to over 55 percent of total demand by 2025, showcasing comprehensive wastewater reclamation paired with membrane bioreactor and RO purification modules to meet industrial and potable requirements.

Veolia has been instrumental in scaling wastewater reuse technologies at a global level, inaugurating France’s first potable reuse unit in Vendée under the Jourdain program and deploying the compact Barrel™ membrane system to provide up to 1.5 million cubic meters of drinking water during peak dry seasons. In Qatar, Veolia Water Technologies and Katara Project launched a flagship reuse facility capable of supplying up to 15,000 cubic meters of treated wastewater daily for cooling and irrigation at the Katara Cultural Village, reducing fresh water consumption and energy use by over 80 percent. In North America, Veolia’s $62.4 million plan to treat PFAS in Delaware’s Stanton Water Treatment Plant and a $181 million collaboration with Tampa Bay Water to expand regional drinking water supply underscore its commitment to infrastructure resilience and regulatory compliance. Xylem has enabled the reuse of 18.1 billion cubic meters of water globally since 2019 through its portfolio of membrane, pump, and digital monitoring solutions, achieving all 2025 customer sustainability goals ahead of schedule and setting new targets to reduce annual water demand by 2 billion cubic meters by 2030. Its innovative “Reuse Brew” beer produced from treated wastewater in Bavaria further illustrates the potential to shift public perceptions and demonstrate water recycling’s viability in consumer-facing applications.

Industry leaders should accelerate investments in digital and AI-enabled monitoring ecosystems to optimize treatment performance, predict maintenance needs, and reduce non-revenue water through data-driven insights and advanced analytics. To mitigate the impact of trade tariffs and supply chain disruptions, companies are advised to diversify procurement channels, develop local manufacturing capabilities for critical components such as membranes and sensor modules, and consider regional assembly hubs to control costs and lead times. Engaging proactively in public-private partnerships and collaborative financing models can unlock capital for large-scale reuse infrastructure projects, while early coordination with regulators ensures alignment on risk-based treatment benchmarks and permits. Embracing renewable energy integration and decarbonization strategies, such as co-locating solar arrays or biogas units at treatment plants, will lower operational emissions and enhance long-term sustainability credentials. Finally, organizations should explore circular economy approaches that upcycle wastewater streams into valuable byproducts, including nutrient recovery and biosolids-derived energy, to create new revenue streams and reinforce environmental stewardship narratives.

This research combined primary qualitative interviews with water utility executives, treatment technology providers, and regulatory agencies to capture firsthand insights on emerging challenges, technology performance, and policy developments. Secondary sources included government publications such as EPA’s National Water Reuse Action Plan updates, European Commission regulatory documents, industry press releases, and peer-reviewed journals to validate technological trends and regional policy impacts. Data triangulation across these multiple sources ensured robustness and mitigated bias, while structured review sessions with subject-matter experts provided quality assurance. Limitations include evolving tariff policies and fluctuating raw material costs, which were monitored through continuous literature surveillance and expert consultations to update assumptions and maintain accuracy.

The global urgency to address water scarcity and climate-driven variability demands an integrated approach that leverages advanced treatment technologies, digital transformation, and collaborative frameworks to unlock the full potential of water recycle and reuse solutions. As digitalization and renewable integration converge with modular, decentralized systems, the sector is poised for accelerated innovation and broader adoption across municipal, industrial, and residential segments. Continued alignment between regulators, technology providers, investors, and end users will be essential to streamline permitting pathways, secure financing, and sustain public acceptance, ensuring that the next generation of water infrastructure delivers resilience, efficiency, and environmental benefits at scale.

For tailored insights and comprehensive data on market trends, competitive strategies, and region-specific developments in water recycle and reuse technologies, reach out to Ketan Rohom, Associate Director of Sales & Marketing. He can guide you through the report’s full breadth of analysis, answer any queries, and facilitate your acquisition of this essential resource to drive informed decisions and strategic planning.