Global Water as a Service (WaaS) Market - 2025-2032

Global Water as a Service (WaaS) Market reached US$ 58.38 billion in 2024 and is expected to reach US$ 129.76 billion by 2032, growing with a CAGR of 10.50% during the forecast period 2025-2032.

The global Water as a Service (WaaS) market is rapidly growing due to increased awareness about sustainable water management and the pressing need to address water scarcity. WaaS offers end-to-end water solutions, including water monitoring, treatment and recycling, enabling industries and municipalities to optimize water usage while minimizing environmental impact. Governments worldwide are collaborating with private firms to improve water infrastructure and delivery.

For instance, the Indian government's Jal Jeevan Mission relies on PPP models to ensure sustainable water delivery to rural households, according to the Ministry of Jal Shakti. Similarly, Companies are increasingly leveraging Internet of Things (IoT) sensors and Artificial Intelligence (AI) for real-time water quality monitoring and predictive maintenance of water treatment systems. The smart water management technologies can reduce water losses by 20%.

Asia-Pacific is the fastest-growing WaaS market due to rapid industrialization, urbanization and mounting water scarcity issues. Countries like China and India are at the forefront of adopting WaaS models, driven by stringent government regulations. For example, China's 14th Five-Year Plan emphasizes wastewater treatment and reuse, supporting WaaS adoption.

Singapore's PUB Water Agency highlights that the nation's NEWater program exemplifies the benefits of integrating WaaS solutions with sustainable water management. According to the Asian Development Bank, Asia-Pacific requires US$ 800 billion or US$ 53 billion annually, in investment over the period 2016-2030 to meet its water and sanitation infrastructure needs.

Dynamics

Rising Water Scarcity and Regulatory Pressures

Water scarcity is a critical global issue, with the United Nations stating that nearly 1.8 billion people will experience absolute water scarcity by 2025. As industries account for approximately 20% of global freshwater consumption (UNESCO), the demand for sustainable water management solutions is intensifying. Governments worldwide are implementing stringent regulations to curb water wastage and promote recycling, which is driving the WaaS market.

The European Union's Water Framework Directive mandates sustainable water use and sets strict limits on industrial water discharge. Similarly, U.S. Clean Water Act imposes stringent standards on wastewater treatment, encouraging industries to adopt WaaS models to ensure compliance. According to U.S. Environmental Protection Agency (EPA), industries using WaaS can reduce freshwater withdrawals significantly while ensuring adherence to regulatory standards.

Increasing Corporate Sustainability Goals

Corporations are prioritizing sustainability to align with global environmental goals and enhance their brand image. Water as a Service helps organizations achieve their sustainability targets by offering cost-effective and scalable water solutions. According to the World Business Council for Sustainable Development (WBCSD), businesses adopting sustainable water practices can enhance their operational efficiency and mitigate risks associated with water scarcity.

PepsiCo has increased water-use efficiency by 22%. It has also replaced in local watersheds 45% of the water it uses in high-risk areas. At the same time, the company has put money toward conservation projects and water-filtration systems to expand access to clean drinking water. Similarly, Nestle's Gerber facility in Fort Smith, Arkansas implemented a cooling tower water treatment system that has saved 14,000 cubic meters of water annually. This not only reduces environmental impact but also positions the company as a leader in sustainable water management.

High Initial Investment

The adoption of water as a service 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 water as a service market is segmented based on service type, capacity, deployment model, end-user and region.

Rising Demand for Waste Water Solutions from Municipality

Municipalities represent the highest demand for WaaS solutions due to increasing urbanization and aging water infrastructure. According to the United Nations, urban areas are home to 55% of the global population, a figure expected to rise to 68% by 2050. This urban growth necessitates efficient water management systems, driving demand for WaaS.

WaaS providers offer municipalities tailored solutions, including water treatment, distribution and leakage detection. The World Bank estimates that more than 32 billion cubic meters of treated water physically leak from urban water supply systems around the world, while 16 billion cubic meters are delivered to customers for zero revenue, with WaaS technologies capable of reducing magnificently.

Geographical Penetration

Availivibility of Advanced Water Infrastructure in North America

North America is at the forefront of the Water-as-a-Service (WaaS) market, driven by its advanced water infrastructure, robust regulatory frameworks and significant technological innovations. The U.S. Environmental Protection Agency (EPA) supports this trend through initiatives like the WaterSense program, which promotes efficient water usage and encourages the adoption of WaaS solutions.

According to the American Water Works Association (AWWA), investments in the region's water sector are projected to surpass US$ 1 trillion over the next 25 years, highlighting the commitment to modernizing and maintaining water systems. US and Canada are actively utilizing WaaS to upgrade aging water infrastructures.

For example, California's Metropolitan Water District has implemented WaaS technologies. California recycles over one million acre-feet of water each year. This is enough water to meet the needs of at least two million households, effectively addressing ongoing drought challenges. In Canada, the government has made significant financial commitments through initiatives like the Clean Water and Wastewater Fund, which has allocated over US$ 2 billion for water and wastewater infrastructure projects aimed at ensuring sustainable water management practices.

Competitive Landscape

The major global players in the market include WEB N.V., Seven Seas Water Group, Veolia, Ekopak, R3 Sustainability, Waterleau, HydroFloTech, Hacom Energy, Rainmaker Worldwide Inc. and AquaVenture Holdings Limited.

Sustainable Analysis

The Water as a Service (WaaS) market plays a significant role in aligning with global sustainability goals, particularly the United Nations' Sustainable Development Goal 6 (SDG 6), which focuses on ensuring clean water and sanitation for all. By facilitating efficient water use and promoting recycling, WaaS helps to reduce the extraction of freshwater and eases the strain on natural water bodies. This is critical as billions of people still lack access to safe water, leading to severe health and social consequences. According to the Earth Org, 25% of the World Faces Extreme Water Stress Every Year, highlighting its effectiveness in addressing water scarcity issues.

In addition to improving water management, WaaS also contributes to energy efficiency. Water treatment systems that utilize the smart metering model consume approximately 20% less energy compared to traditional methods. This reduction in energy consumption is vital in the context of global energy demands and environmental concerns. A notable example of sustainable innovation within this framework is the solar-powered WaaS facilities in Morocco, which treat over 1 million cubic meters of water annually while minimizing energy input. Such initiatives not only demonstrate the feasibility of sustainable practices but also set a precedent for future developments in water management technologies

Integration of IoT and AI in Water as a Service (WaaS)

The integration of IoT and AI is transforming the WaaS market by enhancing efficiency and scalability. IoT sensors enable real-time water quality monitoring, leakage detection and usage analytics, while AI algorithms predict system maintenance needs and optimize operations. According to the International Telecommunication Union (ITU), IoT-enabled WaaS systems reduce water losses by 15-20%.

For example, Singapore's Smart Water Grid uses IoT sensors to monitor water flow and quality across its distribution network, reducing non-revenue water to just 5%. Similarly, AI-powered energy and water process optimization reduces energy expenses by 30%. These advancements underscore the transformative potential of IoT and AI in the WaaS market

Recent Developments

• In April 2024, Water-En Energiebedrijf Aruba (WEB) and Seven Seas Water Group (SSWG), a leading multinational provider of WaaS solutions, have entered into a 10-year Build-Own-Operate-Transfer (BOOT) agreement. This collaboration marks a pivotal step in enhancing Aruba's water infrastructure.
• In April 2024, India's ambitious Jal Jeevan Mission (JJM) is a flagship initiative leveraging a data-driven approach to achieve universal access to drinking water for rural communities. With a budget of $48 billion, the mission aims to provide clean water to 900 million people across 600,000 villages.
• In December 2023, WaaS Asia, a new joint venture formed by Ekopak, Vyncke NV and Mr. Saku Rantanen, is set to revolutionize circular water use in the Asian market. Vyncke, with over 40 years of experience designing biomass-based energy plants and Ekopak, a leader in circular water systems, bring complementary expertise to the venture.

Why Purchase the Report?

• To visualize the global water as a service market segmentation based on service type, capacity, deployment model, end-user and region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the water as a service 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 water as a service market report would provide approximately 70 tables, 66 figures and 210 pages.

Target Audience 2024

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