U.S. water and wastewater treatment market projected to reach $238 billion by 2034

The U.S. water and wastewater treatment market is forecast to grow from approximately US $130.3 billion in 2025 to about US $238.4 billion by 2034, representing a compound annual growth rate (CAGR) of roughly 6.94%, according to a Towards Chem&Materials report.

The report states that municipal utilities account for nearly 52% of the market in 2024, with industrial treatment services close behind at 38% — and poised for the fastest growth. The treatment technology segment is similarly shifting: membrane filtration held nearly 27% of market share in 2024, while water reuse and recycling, at around 8%, is expected to grow rapidly.

Key drivers include aging infrastructure, mounting regulatory pressure and water scarcity concerns. The report highlights that advances in digital water solutions, AI/IoT and smart monitoring systems are increasingly shaping the industry’s future. On the equipment side, nearly 45% of market value in 2024 came from hardware, while software and digital solutions, though only about 10% of that year’s market, are forecast to expand at the fastest rate.

Regionally, the South led in market share at about 33% in 2024, driven by rapid industrial expansion and population growth. The West, at 26%, is expected to grow quickly due to water scarcity and aging asset issues.

For wastewater utilities and technology providers, the forecast underscores a robust opportunity landscape — particularly for those offering advanced treatment technologies, digital solutions and retrofit services aimed at municipal and industrial end-users.