Global Industrial Water Reuse and Recycling Market - 2025-2032

Global Industrial Water Reuse and Recycling Market reached US$ 17.47 billion in 2024 and is expected to reach US$ 37.19 billion by 2032, growing with a CAGR of 9.9% during the forecast period 2025-2032.

The global industrial water reuse and recycling market is experiencing significant growth, driven by increasing water scarcity and the need for sustainable water management practices. This expansion is fueled by stringent environmental regulations and the rising demand for treated water in industrial applications. Industries are increasingly adopting advanced water treatment technologies, such as membrane filtration and advanced oxidation processes, to enhance the efficiency of water recycling and reuse systems.

The innovations not only improve water quality but also reduce operational costs, making them attractive solutions for various sectors. Governments and industries are embracing the circular water economy, promoting zero-liquid discharge (ZLD) and water recycling as sustainability goals. The World Business Council for Sustainable Development (WBCSD) highlights that economic development will increase global demand for water by 50% by 2030, supporting the global push for sustainable development.

Asia-Pacific is the fastest-growing market for industrial water reuse and recycling, driven by rapid industrialization, urbanization and water scarcity. Countries like China and India are implementing strict regulations to curb freshwater extraction and promote wastewater reuse. For instance, China is advanced in terms of wastewater reuse compared with some countries, such as Spain, where the volume of reclaimed water is about 368.2 Hm3 per year.

Japan's advanced wastewater treatment facilities and Singapore's NEWater initiative serve as benchmarks for effective industrial water management. The region's growth is further supported by significant investments in infrastructure to treat and recycle wastewater efficiently.

Dynamics

Increasing Water Scarcity and Need for Sustainable Water Management

Water scarcity is a pressing global issue, with the United Nations reporting that approximately 4 billion people experience water shortages for at least one month each year. By 2025, an estimated 1.8 billion people will face severe water shortages and absolute water scarcity. This escalating crisis is primarily due to factors such as population growth, urbanization, industrialization and climate change, which collectively strain existing freshwater resources. Moreover, the adoption of water recycling practices aligns with corporate sustainability goals and enhances brand reputation.

Companies that proactively address water scarcity issues demonstrate environmental stewardship, which lead to competitive advantages in the market. For instance, PepsiCo announced that it aims to become "Net Water Positive" by 2030. This means that PepsiCo will replenish more water than it uses, aiming to replenish more water than it consumes. Government policies and regulations also play a pivotal role in driving the adoption of water reuse and recycling. Many countries have implemented stringent discharge regulations and offer incentives for water conservation initiatives.

Adoption of the Water Reuse and Recycle from Diverse Industries

Industries are among the largest consumers of water, utilizing it for processes like cooling, cleaning and manufacturing. As freshwater availability diminishes, there is a critical need for industries to adopt sustainable water management practices to ensure operational continuity and environmental compliance. Implementing water reuse and recycling systems allows industries to treat and repurpose wastewater, thereby reducing dependence on freshwater sources and mitigating environmental impacts.

Technological advancements have significantly enhanced the feasibility and efficiency of industrial water reuse. Innovations such as membrane filtration, reverse osmosis and advanced oxidation processes enable the treatment of wastewater to meet specific quality standards required for various industrial applications. According to the United Nations World Water Development Report, Global water demand for all uses will increase by 20% to 30% by 2050, up to 5,500 to 6,000 km3 per year, emphasizing the urgent need for efficient reuse systems.

High Initial Investment and Operational Costs

The adoption of industrial water reuse and recycling systems is often hindered by the high initial capital investment required for setting up advanced treatment facilities. Technologies such as reverse osmosis, advanced oxidation processes and zero liquid discharge systems involve substantial costs for procurement, installation and integration into existing infrastructure.

According to the International Desalination Association (IDA), the cost of implementing industrial-scale reverse osmosis systems can range from US$ 500,000 to over US$ 1 million per facility, depending on the scale and complexity. Operational costs remain another critical challenge.

Advanced water treatment systems often demand continuous energy input and chemical usage to maintain efficiency and meet regulatory standards. A report by the U.S. Department of Energy highlights that energy expenses alone account for 30-40% of the operational costs in water treatment facilities, making it one of the most energy-intensive industrial processes.

Segment Analysis

The global industrial water reuse and recycling market is segmented based on equipment, capacity, technology, end-user and region.

Biological Treatments Meet the Demand for Sustainable Solutions

Biological treatment processes are critical for managing and recycling industrial wastewater, particularly in sectors like food processing, pharmaceuticals and textiles, where high levels of organic contaminants are present. Techniques such as activated sludge processes, moving bed biofilm reactors (MBBRs) and sequencing batch reactors (SBRs) are widely used due to their efficiency in degrading organic matter.

Processes like coagulation, flocculation and chlorination are extensively used in industries such as petrochemicals, pulp and paper and mining, where wastewater often contains heavy metals and hazardous chemicals. Around 52% of industrial wastewater is treated in wastewater treatment plants, underscoring the demand for these technologies.

Industries are increasingly adopting advanced biological systems that integrate real-time monitoring and process optimization to comply with environmental standards, ensuring efficient and cost-effective operations. The United Nations Industrial Development Organization (UNIDO) reports that demand for biological treatment systems is growing at a robust rate, driven by stricter discharge norms and water quality standards.

Geographical Penetration

Rising Demand for Industrial Water Reuse in North America

North America dominates the industrial water reuse market due to advanced infrastructure, technological adoption and supportive policies. U.S. Environmental Protection Agency (EPA) and Canadian Water Act promote sustainable water management, driving the adoption of water recycling technologies. U.S. Department of Energy highlights that power plants recycle up to 80% of their cooling water, reducing freshwater withdrawals by millions of gallons annually.

Chevron's oil refineries in California utilize membrane systems for water recycling, achieving over-significant reuse. Similarly, PepsiCo's "Positive Water Impact" initiative in North America underscores the role of water recycling in reducing consumption across manufacturing plants. The region is expected to witness sustained growth due to increased investments in infrastructure and technological advancements. According to the Water Environment Federation, the North American industrial water reuse market is projected to grow at a CAGR of 8% through 2030, reinforcing its leadership in the sector.

Competitive Landscape

The major global players in the market include Alfa Laval, Dow Chemical Company, Evoqua Water Technologies, Fluence Corporation Limited, Hitachi Ltd., Kubota Corporation, Melbourne Water, Siemens, SUEZ Water Technologies & Solutions and Veolia Water Technologies.

Sustainable Analysis

The shift toward sustainable water practices aligns with global goals such as the United Nations Sustainable Development Goal 6 (Clean Water and Sanitation), which emphasizes efficient water use and the reduction of water pollution. Industrial water reuse minimizes the need for freshwater extraction, alleviating pressure on natural water bodies and supporting ecosystem health.

Energy efficiency and carbon reduction are also integral to sustainability in the industrial water reuse market. For example, according to the U.S. Department of Energy, using energy-efficient reverse osmosis systems lower energy costs by compared to conventional methods. Additionally, the adoption of zero-liquid discharge (ZLD) systems and advanced wastewater treatment technologies significantly reduces the release of contaminants into the environment, promoting cleaner industrial operations.

The measures reduce industrial wastewater discharge magnificently, contributing to global water sustainability targets. Furthermore, recycling and reusing industrial wastewater decreases the reliance on energy-intensive freshwater extraction and transportation systems, reducing the overall carbon footprint of industrial operations.

Integration of Renewable Energy & Decarbonization in Industrial Water Reuse and Recycling

The integration of renewable energy into industrial water reuse systems is transforming the market by enhancing sustainability and reducing operational costs. Solar-powered water treatment facilities and wind-powered desalination plants are emerging as viable solutions to energy-intensive processes. According to the U.S. Environmental Protection Agency, by incorporating energy efficiency practices into their water and wastewater plants, municipalities and utilities can save 15 to 30 percent.

Decarbonization is increasingly prioritized in industrial water management as industries aim to reduce their carbon footprints while optimizing water use. The United Nations Industrial Development Organization (UNIDO) emphasizes that carbon-neutral water treatment systems, supported by innovations like biogas recovery and energy-efficient technologies, are essential to achieving sustainability.

Recent Developments

• In April 2023, the World Bank approved a US$ 500 million loan to support water reuse and recycling projects in India. This investment is targeted at alleviating water stress in urban and industrial regions by funding the construction of advanced wastewater treatment plants and promoting technologies like zero-liquid discharge (ZLD) systems.
• In April 2023, Hydraloop introduced water recycling systems designed for residential applications, marking a notable advancement in the accessibility of water reuse technologies. The systems recycle water from baths, showers and laundry activities, enabling its reuse for non-potable purposes such as flushing toilets and irrigating gardens and landscapes.
• In February 2023, the European Union launched a groundbreaking initiative to increase the share of reused water in member states by 20% by 2030. This initiative underscores the EU's commitment to sustainable water management and aligns with its broader environmental goals.

Why Purchase the Report?

• To visualize the global industrial water reuse and recycling market segmentation based on equipment, capacity, technology, end-user and region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the industrial water reuse and recycling market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global industrial water reuse and recycling market report would provide approximately 70 tables, 67 figures and 201 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies