Membrane Bioreactor Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Configuration (Submerged MBR, Side-Stream MBR, External MBR), By Application (Municipal Wastewater Treatment, Industrial Wastewater Treatment, Water Reuse and Recycling) By End-User Industry (Textiles, Pulp and Paper, Petrochemicals, Chemicals, Pharmaceuticals, Food and Beverage Industry), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.32 Billion
CAGR (2026-2031)	9.34%
Fastest Growing Segment	Side-Stream MBR
Largest Market	Asia Pacific
Market Size (2031)	USD 7.38 Billion

Market Overview

The Global Membrane Bioreactor Market will grow from USD 4.32 Billion in 2025 to USD 7.38 Billion by 2031 at a 9.34% CAGR. A Membrane Bioreactor (MBR) is a wastewater treatment technology that integrates a biological degradation process with membrane filtration, such as microfiltration or ultrafiltration, to separate solids from liquids effectively. The primary drivers fueling the expansion of this market are the escalating global water scarcity that necessitates efficient water reclamation and the enforcement of stringent government regulations regarding effluent discharge quality. Additionally, the growing requirement to retrofit aging infrastructure for increased capacity within limited physical footprints further supports the adoption of MBR systems.

According to the International Desalination and Reuse Association, in 2024, the global contracted water reuse capacity reached approximately 259.33 million cubic meters per day, underscoring the critical role of advanced filtration technologies in addressing water security. Despite this strong demand, a significant challenge that could impede market expansion is the high initial capital expenditure and elevated operational costs associated with energy consumption and membrane fouling control.

Key Market Drivers

Stringent government regulations regarding wastewater discharge are the primary force accelerating the adoption of the Global Membrane Bioreactor Market. Legislative bodies worldwide are enacting rigorous effluent standards that necessitate advanced treatment technologies like MBR to remove nutrients and micropollutants effectively. A defining regulatory update occurred when, according to the European Commission, December 2024, the revised Urban Wastewater Treatment Directive was formally adopted, which significantly lowered the compliance threshold to include smaller agglomerations of 1,000 population equivalents. This expansion of regulatory oversight compels a broader range of municipal facilities to upgrade their infrastructure, directly driving the deployment of compact and efficient membrane systems to meet stricter environmental mandates.

Rising global water scarcity and the consequent demand for water reclamation further stimulate market expansion. As freshwater sources deplete, governments are aggressively investing in infrastructure to treat and reuse sewage, transforming wastewater into a valuable resource. This trend is exemplified by rapid capacity additions in high-growth regions. According to the Press Information Bureau, January 2025, in the 'Year End Review 2024', India completed 16 sewerage infrastructure projects in the Ganga basin during the year, creating a new treatment capacity of 750 million liters per day. Such large-scale development underscores the vital role of treatment technologies in enhancing water security. Highlighting the sector's resulting financial momentum, according to Veolia, February 2025, in its '2024 Annual Results', the company's Water division achieved an organic revenue growth of 5.6%, reflecting robust global demand for water management solutions.

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Key Market Challenges

The substantial financial burden associated with Membrane Bioreactor systems presents a formidable barrier to their widespread adoption in the global market. While this technology offers superior effluent quality, the initial investment required for membrane modules and specialized infrastructure is significantly higher than that of conventional activated sludge processes. Furthermore, the operational phase incurs considerable expenses due to the intense energy requirements for aeration and pumping, which are essential to mitigate membrane fouling. These elevated costs frequently deter municipalities and industrial facilities with restricted budgets from transitioning to this advanced treatment method, thereby slowing market penetration.

The severity of these financial constraints is evident in recent industry assessments. According to the American Water Works Association, in 2024, financing capital improvements emerged as the primary challenge for the water sector, with only 41% of surveyed utilities reporting that they were fully able to cover their costs through existing rates and fees. This lack of financial confidence directly impacts the membrane bioreactor market, as utility operators are less likely to approve capital-intensive projects when basic funding mechanisms are already under strain. Consequently, economic feasibility remains a critical hurdle for market growth.

Key Market Trends

The Integration of Artificial Intelligence and IoT for Smart Monitoring is fundamentally reshaping the operational landscape of the membrane bioreactor market by addressing the critical challenges of membrane fouling and high energy consumption. Operators are increasingly deploying predictive analytics and real-time sensor data to optimize aeration rates and cleaning cycles, which significantly reduces operational expenditures (OpEx) while ensuring consistent effluent quality. This digital transformation allows facilities to transition from reactive maintenance to proactive asset management, thereby maximizing the lifespan of membrane modules. Highlighting the substantial financial impact of these operational improvements, according to Veolia, February 2025, in its '2024 Annual Results', the company achieved €398 million in efficiency gains, a performance partly attributed to the accelerated deployment of digital technologies and AI under its strategic GreenUp program.

The Adoption of Durable Ceramic Membranes in Industrial Applications is simultaneously gaining momentum as facilities require robust filtration solutions capable of withstanding harsh chemical environments and extreme temperatures. Unlike conventional polymeric membranes, ceramic alternatives offer superior mechanical strength and chemical resistance, making them ideal for treating aggressive industrial wastewaters in sectors such as petrochemicals and pharmaceuticals. This shift towards high-durability materials is driving revenue growth for specialized manufacturers focused on long-lifecycle filtration systems. Underscoring this robust market demand, according to METAWATER Co., Ltd., April 2025, in its 'Consolidated Financial Results for the Fiscal Year Ended March 31, 2025', the company reported net sales of 179,094 million yen, marking an 8.2% increase year-on-year, driven by steady performance in its environmental engineering and solution businesses.

Segmental Insights

The Side-Stream Membrane Bioreactor segment is currently identified as the fastest-growing category within the global market, primarily due to its superior operational flexibility and maintenance advantages. Unlike submerged systems, side-stream configurations position the filtration unit outside the bioreactor, allowing for easier cleaning and module replacement without disrupting the biological process. This design supports higher cross-flow velocities, which effectively mitigates membrane fouling and manages high-solid loads. These characteristics make the technology particularly suitable for treating complex industrial wastewaters, driving its accelerated adoption across the chemical, pharmaceutical, and manufacturing sectors.

Regional Insights

Asia Pacific dominates the Global Membrane Bioreactor Market due to extensive industrialization and escalating requirements for water reclamation. The region faces severe water stress, prompting governments to enforce rigorous wastewater discharge laws. In China, the Ministry of Ecology and Environment mandates high-quality effluent standards, which necessitates the use of membrane bioreactors for municipal and industrial applications. Furthermore, the Central Pollution Control Board in India imposes strict guidelines on sewage treatment plants to mitigate pollution. These regulatory pressures effectively compel municipalities and industries to invest in membrane bioreactor systems to ensure compliance and support sustainable water reuse strategies.

Recent Developments

• In August 2025, Veolia Water Technologies presented breakthrough findings from a pilot project focused on optimizing membrane bioreactor performance for water reuse applications. The research demonstrated the system's ability to operate effectively under high-flux conditions while managing solids and hydraulic retention times. The company highlighted that these advancements enabled a lower cost of ownership and increased operational flexibility for utilities. The study emphasized the technology's capacity to produce high-quality effluent suitable for both non-potable and potable reuse without the need for secondary clarifiers, thereby confirming its viability as a compact and efficient solution for water-scarce regions.
• In December 2024, H2O Innovation secured a contract to supply a wastewater treatment system for a developing community in Southwestern Ontario, Canada. The project involved the implementation of a three-train membrane bioreactor system utilizing an enhanced biological phosphorus removal process. The company designed the facility to treat approximately 886 cubic meters of wastewater per day. Under this agreement, the firm provided biological and membrane tanks alongside prefabricated buildings with pre-installed industrial mechanical equipment. This delivery model was selected to minimize on-site installation time and overall project costs while ensuring the facility met stringent environmental discharge standards.
• In December 2024, LG Water Solutions launched its new QuantumFlux line of membranes during the IDRA World Congress in Abu Dhabi. This product release included hollow fiber membranes designed for ultrafiltration and membrane bioreactor applications, manufactured using a thermally induced phase separation process. The company engineered these membranes to provide enhanced mechanical and chemical durability, addressing the growing global need for reliable wastewater treatment solutions. The Head of LG Water Solutions stated that the new product line complemented their existing reverse osmosis portfolio, positioning the company as a comprehensive provider of advanced water treatment technologies for diverse industrial and municipal sectors.
• In March 2024, Toray Industries announced the commencement of a demonstration project for a sewage reuse system in Chennai, India. The company collaborated with the Indian Institute of Technology Madras to implement this initiative, which integrated membrane bioreactor technology with reverse osmosis membranes. The system was designed to filter organic matter and microorganisms from sewage, rendering the water suitable for indirect reuse or discharge into water bodies. This project aimed to address the region's severe water shortages and inefficient sewage treatment practices. Toray utilized its advanced water-treatment membranes to establish an energy-saving solution for the rapidly urbanizing area.

Key Market Players

• SUEZ
• Evoqua Water Technologies LLC
• Veolia Environnement S.A
• Kubota Corporation
• Mitsubishi Chemical Aqua Solutions Co., Ltd
• Toray Industries, Inc
• Koch Membrane Systems, Inc
• Smith & Loveless Inc
• Bio-Microbics, Inc
• Nitto Denko Corporation

By Application	By End-User Industry	By Region
Municipal Wastewater Treatment Industrial Wastewater Treatment Water Reuse and Recycling	Textiles Pulp and Paper Petrochemicals Chemicals Pharmaceuticals Food and Beverage Industry	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Membrane Bioreactor Market, By Application:

• Municipal Wastewater Treatment
• Industrial Wastewater Treatment
• Water Reuse and Recycling

• Membrane Bioreactor Market, By End-User Industry:

• Textiles
• Pulp and Paper
• Petrochemicals
• Chemicals
• Pharmaceuticals
• Food and Beverage Industry

• Membrane Bioreactor 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