Water Reuse & Recycling Market Forecasts to 2032 - Global Analysis By Source, System Type, Offering, Treatment Technology, Application, End User and By Geography

According to Stratistics MRC, the Global Water Reuse & Recycling Market is accounted for $19623.90 million in 2025 and is expected to reach $42575.28 million by 2032 growing at a CAGR of 11.7% during the forecast period. Water Reuse & Recycling involves converting wastewater into usable water through advanced treatment processes, enabling it to be reapplied in multiple sectors. By recovering water from domestic, industrial, or farming activities, this practice supports conservation, minimizes ecological impact, and strengthens water availability in drought-prone areas. Treated recycled water may be used for agriculture, industry, replenishing aquifers, or drinking after proper purification. Overall, water reuse encourages sustainable resource management by optimizing how communities and industries utilize limited freshwater sources.

According to the United Nations, at least half of the world population, around 4 billion people, deal with water shortages for one month of the year. By the year 2025, around 1.8 billion people are expected to experience severe water shortages and deal with absolute water scarcity.

Market Dynamics:

Driver:

Growing corporate sustainability goals

Corporate sustainability initiatives are increasingly shaping investment in water reuse and recycling systems. Companies across industries are committing to ambitious environmental targets, including reduced freshwater consumption and minimized discharge. These goals are driving adoption of advanced treatment technologies that enable closed-loop water cycles. Firms are also aligning with global frameworks such as ESG reporting and circular economy principles. The integration of water reuse into sustainability strategies enhances brand reputation and regulatory compliance. As a result, corporate responsibility is becoming a powerful catalyst for market expansion.

Restraint:

Complexity of integrating systems

Legacy networks often lack compatibility with modern treatment technologies, requiring costly retrofits. Coordination between municipal authorities, industrial operators, and technology providers adds layers of complexity. Data management and monitoring systems must be harmonized to ensure efficiency and compliance. These integration hurdles can delay project timelines and increase capital expenditure. Consequently, system complexity remains a key restraint on widespread adoption.

Opportunity:

Decentralized and modular systems

The systems allow localized treatment and recycling, reducing dependence on centralized facilities. Modular designs enable scalability, making them suitable for both small communities and large industrial sites. Advances in containerized treatment plants and plug-and-play technologies are accelerating deployment. Decentralization also enhances resilience by diversifying water sources and reducing vulnerability to supply disruptions. This flexibility positions modular systems as a major growth driver in the coming years.

Threat:

Falling cost of alternative water sources

The declining cost of alternative water sources, such as desalination and groundwater extraction, poses a competitive threat. As these options become more affordable, they may reduce the urgency for investment in reuse technologies. Subsidies and government incentives for conventional water supply can further distort market dynamics. In some regions, abundant natural resources diminish the perceived need for recycling infrastructure. The falling cost of alternatives therefore represents a structural challenge for the reuse market.

Covid-19 Impact:

The pandemic reshaped priorities in water management, highlighting the importance of resilience and hygiene. Lockdowns disrupted construction and delayed commissioning of new recycling projects. At the same time, heightened awareness of sanitation boosted demand for reliable water treatment solutions. Industries reassessed supply chains, leading to increased interest in decentralized and flexible systems. Municipalities invested in monitoring technologies to ensure safe reuse under public health pressures.

The municipal wastewater segment is expected to be the largest during the forecast period

The municipal wastewater segment is expected to account for the largest market share during the forecast period. Urbanization and population growth are driving demand for large-scale recycling solutions. Municipal systems provide consistent volumes of wastewater, making them ideal for reuse applications. Governments are prioritizing investments in municipal treatment to meet sustainability and regulatory targets. Emerging technologies such as advanced membrane filtration and nutrient recovery are being integrated into city-level projects.

The industrial segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the industrial segment is predicted to witness the highest growth rate, due to rising water scarcity is pushing industries to adopt reuse solutions for operational continuity. Sectors such as food processing, pharmaceuticals, and chemicals are investing heavily in closed-loop systems. Advanced treatment technologies are enabling industries to meet stringent discharge regulations. Partnerships between technology providers and industrial operators are accelerating adoption. As industries seek both cost savings and sustainability, this segment is poised for rapid expansion.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, due to rapid industrialization and urban growth are driving demand for water reuse across the region. Countries such as China, India, and Singapore are investing in large-scale municipal and industrial projects. Government-backed initiatives and regulatory frameworks are supporting adoption. Technological innovation, including smart monitoring and advanced filtration, is being pioneered in regional hubs.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to rising awareness of water scarcity and sustainability is fueling adoption across industries and municipalities. The region is embracing decentralized and modular systems to enhance resilience. Trends include integration of digital monitoring, AI-driven optimization, and advanced treatment technologies. Strong regulatory frameworks and incentives are accelerating investment in reuse infrastructure.

Key players in the market

Some of the key players in Water Reuse & Recycling Market include Veolia, Black & Veatch, Grundfos, SUEZ, Koch Membrane, Pentair, Xylem, Kurita Water, Toray Industries, Evoqua Water, Aquatech, IDE Technologies, DuPont Water, AECOM, and Jacobs.

Key Developments:

In November 2025, Toray Industries, Inc., and Aichi Medical University announced that they have initiated an open innovation framework to propel wide-ranging drug discovery research into amyotrophic lateral sclerosis (ALS), a rare disease commonly known as Lou Gehrig's disease. This initiative will draw on a drug efficacy evaluation technology that they jointly developed for this disease, collaborating with pharmaceutical companies to accelerate ALS treatment R&D.

In October 2025, TotalEnergies and Veolia have signed a memorandum of understanding for further cooperation in several key areas of energy transition and circular economy, in line with their respective approaches to reduce their greenhouse gases emissions and water footprint. This cooperation will benefit the entire industry through the scaling up of innovative processes and the advancement of research into future-oriented challenges.

Sources Covered:

• Municipal Wastewater
• Industrial Wastewater
• Stormwater / Rainwater
• Agricultural Runoff

System Types Covered:

• Centralized Systems
• Decentralized / On-Site Systems

Offerings Covered:

• Treatment Equipment
• Monitoring & Control Systems
• Consumables
• Services

Treatment Technologies Covered:

• Physical Treatment
• Biological Treatment
• Membrane Technologies
• Chemical Treatment
• Disinfection
• Hybrid / Integrated Treatment Systems

Applications Covered:

• Agricultural Irrigation
• Municipal Non-Potable Use
• Industrial Reuse
• Cooling & Boiler Feed Water
• Groundwater Recharge
• Indirect Potable Reuse
• Direct Potable Reuse
• Other Applications

End Users Covered:

• Municipalities & Water Utilities
• Industries
• Commercial Buildings
• Residential Communities
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances