Water Treatment Systems Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2028, Segmented By Installation (Point of Entry (PoE), Point of Use (PoU)), By Application (Residential, Non-Residential), By Technology (Filtration, Reverse Osmosis, Water Softener, Distillation, Sedimentation, and Others) By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 54.34 Billion
CAGR (2026-2031)	7.98%
Fastest Growing Segment	Point of Entry (PoE)
Largest Market	North America
Market Size (2031)	USD 86.13 Billion

Market Overview

The Global Water Treatment Systems Market will grow from USD 54.34 Billion in 2025 to USD 86.13 Billion by 2031 at a 7.98% CAGR. Global Water Treatment Systems encompass a diverse array of technologies and processes designed to remove contaminants and undesirable components from water, rendering it suitable for specific end-uses such as municipal consumption, industrial manufacturing, or environmental discharge. The market’s expansion is primarily supported by distinct fundamental drivers, including the enforcement of increasingly stringent environmental regulations regarding wastewater discharge and potable water quality. Furthermore, rapid global urbanization and industrial growth are necessitating robust infrastructure to address escalating water scarcity and ensure security of supply. These structural drivers create a sustained demand for advanced filtration, disinfection, and desalination capacities, independent of transient market trends.

Despite this growth potential, the market faces a significant challenge regarding the financing of necessary infrastructure modernization and the adoption of advanced technologies. High capital expenditure requirements often delay the implementation of critical system upgrades, particularly for public utilities operating under tight budget constraints. According to the American Water Works Association, in 2024, only 41% of utilities reported feeling very or fully able to cover the costs of essential upgrades and new technologies through current rates and fees. This financial gap in capital improvement funding poses a substantial hurdle, potentially impeding the widespread deployment of next-generation water treatment solutions.

Key Market Drivers

Escalating global water scarcity creates a critical necessity for advanced water treatment systems to secure reliable supplies for municipal and industrial use. As freshwater sources diminish due to climate variability, nations are increasingly dependent on technologies that treat alternative sources, such as seawater desalination and wastewater reclamation. This hydrological stress drives the implementation of filtration and purification infrastructure to bridge the gap between supply and demand. According to the World Meteorological Organization, October 2024, in the 'State of Global Water Resources 2023' report, 2023 was the driest year for global rivers in over three decades, with river flows reaching record lows. This data underscores the urgent market need for resilient systems capable of processing lower-quality water inputs to maintain potable standards.

Concurrently, the implementation of stringent environmental regulations acts as a mandatory catalyst for market adoption. Governments are establishing rigorous limits on emerging contaminants, requiring utilities to deploy specialized treatment processes like reverse osmosis and ion exchange. According to the United States Environmental Protection Agency, April 2024, in the 'Final National Primary Drinking Water Regulation for Six PFAS' release, $1 billion in funding was made available to help states and territories implement PFAS testing and treatment. This regulatory pressure forces immediate capital allocation toward compliance-focused technologies. Furthermore, broader infrastructure investment supports this regulatory alignment. According to Ofwat, in 2024, a spending package of £88 billion was proposed for water companies in England and Wales to deliver cleaner rivers and reliable supplies over the next five years.

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Key Market Challenges

High capital expenditure requirements impose a substantial constraint on the global water treatment systems market. The considerable financial outlay necessary for constructing new facilities and modernizing aging infrastructure often exceeds the available budgets of municipal and industrial operators. Consequently, this lack of capital delays the procurement of essential filtration and processing technologies, effectively stalling market momentum. When utilities cannot secure adequate funding, they are forced to defer critical system upgrades, which directly reduces the volume of new orders for equipment manufacturers and service providers.

This financial bottleneck is particularly acute when regulatory compliance costs rise faster than available revenue. The burden of funding these projects creates a distinct gap between the need for advanced treatment capacities and the actual ability to pay for them. According to the National Association of Clean Water Agencies, in 2024, local public utilities were required to fund nearly 95% of all clean water infrastructure investments and compliance mandates directly, highlighting a severe dependency on limited local revenue streams. This heavy reliance on internal financing restricts the ability of operators to adopt new treatment solutions, thereby hampering overall market growth.

Key Market Trends

The Integration of Artificial Intelligence and IoT for Smart Water Management is fundamentally reshaping utility operations by enabling real-time monitoring and data-driven decision-making. Water utilities are increasingly deploying advanced metering infrastructure (AMI) and connected sensors to detect leaks, optimize distribution pressure, and reduce non-revenue water losses without requiring extensive physical infrastructure expansion. This shift from reactive repair to proactive network management is accelerating the procurement of digital-ready hardware and software platforms. According to Badger Meter, February 2024, in the '2023 Annual Report', utility water sales increased 28% year-over-year, a growth trajectory directly attributed to the continued market adoption of smart water AMI solutions and water quality monitoring technologies.

Concurrently, the Expansion of Industrial Wastewater Reuse and Circular Water Economy Models has emerged as a critical trend as corporations seek to decouple their growth from freshwater extraction. Major industrial operators, particularly in water-intensive sectors like semiconductor manufacturing and food and beverage, are actively implementing closed-loop systems to recover and recycle process water onsite. This adoption is driven by corporate sustainability mandates to achieve net-positive water impact and mitigate operational risks associated with local supply volatility. According to Intel, May 2024, in the '2023-24 Corporate Responsibility Report', the company conserved approximately 10.2 billion gallons of water in 2023 through onsite conservation efficiencies and circular water management strategies across its global operations.

Segmental Insights

The Point of Entry segment represents the fastest growing area within the Global Water Treatment Systems Market, driven by the rising demand for comprehensive whole-house filtration solutions. Unlike localized filtration, these systems treat water at the primary source, safeguarding plumbing infrastructure and appliances from sediment and scaling while ensuring safe usage throughout the property. Furthermore, increasing adherence to stringent water quality mandates from organizations like the U.S. Environmental Protection Agency compels residential and commercial sectors to adopt these centralized units, thereby mitigating contamination risks more effectively than single-point alternatives.

Regional Insights

North America commands the largest share of the water treatment systems market, supported by a strong industrial base and strict environmental compliance mandates. The United States Environmental Protection Agency enforces established standards for wastewater discharge and drinking water quality, compelling industries to adopt effective treatment solutions to avoid penalties. Furthermore, increasing awareness regarding water reuse and sustainable resource management drives the adoption of these technologies. This regulatory pressure, combined with ongoing investments to upgrade aging municipal infrastructure, ensures North America remains the primary region for market expansion.

Recent Developments

• In September 2025, Veolia launched its next-generation Hubgrade Center in Scottsdale, Arizona, designed to transform wastewater treatment services across the western United States. This facility functions as a digital command center, combining human expertise with artificial intelligence and real-time data to optimize water operations for municipalities. The center utilizes advanced technologies, including digital twin infrastructure models and remote monitoring tools, to provide 24/7 oversight. It enables local utilities to enhance operational efficiency, reduce energy consumption, and ensure regulatory compliance without requiring significant capital investment, thereby supporting communities in conserving critical water resources.
• In September 2025, Pentair Pool announced the addition of Flexible Demand capabilities to its pool automation equipment, including the IntelliFlo3 VSF Pool Pump and IntelliCenter Pool Control System. This suite of smart, cloud-connected features enabled pool equipment to respond automatically to energy grid demand signals, thereby supporting grid stability during peak hours. The technology allowed consumers to seamlessly enroll via a dedicated app and wirelessly connect with utility providers to report real-time energy usage. By facilitating smarter energy choices, the new system helped pool owners reduce costs while contributing to a more resilient and sustainable energy future.
• In December 2024, Xylem acquired a majority stake in Idrica to deepen the strategic partnership between the two entities and accelerate the digital transformation of water utilities. This collaboration combined the company's digital portfolio, Xylem Vue, with the GoAigua technology platform to create an integrated suite of software and analytics. The joint offering empowered water and wastewater utilities to optimize their infrastructure and address critical challenges such as water scarcity and aging assets through real-time data insights. The move aimed to simplify the customer experience by providing a secure, holistic view of digital assets and streamlining operational decision-making.
• In December 2024, LG Water Solutions introduced two new product lines, QuantumFlux and QuantumPure, at the IDRA World Congress in Abu Dhabi. The QuantumFlux line featured advanced ultrafiltration and membrane bioreactor membranes engineered with polyvinylidene fluoride chemistry to offer superior durability and reliability for various treatment applications. Concurrently, the QuantumPure line debuted with high-performance ion exchange resins designed for deionization and softening processes. These innovations expanded the company's portfolio beyond its existing reverse osmosis offerings, positioning it as a comprehensive provider of total water solutions capable of meeting evolving industry demands for efficient and robust treatment technologies.

Key Market Players

• 3M Company
• Culligan International
• Honeywell International Inc
• Watts Water Technologies Inc
• Pentair PLC
• The Dow Chemical Company
• Calgon Carbon Corporation
• Best Water Technology AG
• Danaher Corporation
• Ecolab Inc.

By Installation	By Application	By Technology	By Region
Point of Entry (PoE) Point of Use (PoU)	Residential Non-Residential	Filtration Reverse Osmosis Water Softener Distillation Sedimentation Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Water Treatment Systems Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Water Treatment Systems Market, By Installation:

• Point of Entry (PoE)
• Point of Use (PoU)

• Water Treatment Systems Market, By Application:

• Residential
• Non-Residential

• Water Treatment Systems Market, By Technology:

• Filtration
• Reverse Osmosis
• Water Softener
• Distillation
• Sedimentation
• Others

• Water Treatment Systems Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE