Water Utility Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Application (Residential, Commercial and Industrial), By Type (Single Function Water System and Integrated Water System), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 70.96 Billion
CAGR (2026-2031)	6.43%
Fastest Growing Segment	Commercial
Largest Market	North America
Market Size (2031)	USD 103.13 Billion

Market Overview

The Global Water Utility Services Market will grow from USD 70.96 Billion in 2025 to USD 103.13 Billion by 2031 at a 6.43% CAGR. The Global Water Utility Services Market encompasses entities responsible for the abstraction, treatment, transmission, and distribution of potable water, alongside the collection and management of wastewater for residential, commercial, and industrial sectors. Growth in this sector is fundamentally driven by rapid urbanization and the critical necessity to rehabilitate deteriorating infrastructure to ensure service reliability and regulatory compliance. According to the American Water Works Association, in 2024, 81% of utilities were actively implementing capital improvement plans to address these pressing infrastructural demands. This substantial investment activity underscores the urgent operational requirement to modernize systems amidst escalating global consumption.

However, a significant challenge that could impede market expansion is the immense financial burden associated with these capital-intensive projects. Utilities frequently encounter substantial funding gaps where the cost of upgrading aging assets and meeting stringent environmental standards exceeds available revenue streams. This economic strain is often exacerbated by political or regulatory resistance to raising consumer rates, which can delay essential modernization projects and hinder the adoption of necessary efficiency improvements.

Key Market Drivers

Rehabilitation of aging water infrastructure stands as a primary catalyst for market growth, driven by the critical need to replace deteriorating pipelines and modernize treatment facilities that are nearing the end of their operational lifecycles. Utilities globally are compelled to undertake capital-intensive projects to prevent system failures, reduce leakage, and ensure the delivery of safe drinking water to expanding urban populations. This operational imperative forces significant spending on asset renewal programs designed to enhance resilience against climate stress and operational inefficiencies. For instance, according to California Water Service Group, March 2025, in a press release regarding its infrastructure programs, the utility invested a record $471 million in capital improvements throughout 2024, specifically targeting main replacements and facility upgrades to bolster system safety.

Simultaneously, the market is being propelled by increasing investments in sustainable water solutions, as stakeholders prioritize long-term resource security and environmental stewardship. Financial flows are shifting toward technologies that address water scarcity, such as advanced recycling systems and energy-efficient treatment processes, reflecting a broader industry pivot toward decarbonization and climate adaptation. This positive sentiment is evident in capital deployment trends; according to White & Case LLP, May 2025, in the 'Currents of Capital 2025' report, 72% of surveyed organizations expect to increase their investment in water assets in 2025 compared to the previous year. This surge in funding supports the wider adoption of green technologies, contributing to robust sector performance. According to Veolia, in 2025, this strong demand environment helped drive a 5.6% organic revenue growth in its water division for the fiscal year 2024.

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Key Market Challenges

The immense financial burden associated with capital-intensive infrastructure projects stands as a formidable barrier to the growth of the Global Water Utility Services Market. Utilities are increasingly confronted with a severe disparity between the capital required to replace aging assets and the actual revenue generated from consumer rates. This fiscal deficit compels many operators to defer essential modernization programs and limit their engagement with external service providers. Consequently, the market for treatment, transmission, and management services stagnates because utilities lack the liquidity to underwrite necessary contracts. The inability to secure adequate funding effectively halts the adoption of advanced technologies required for efficiency, forcing the sector to operate in a reactive rather than proactive capacity.

This funding shortage is quantifiable and underscores the severity of the market restraint. According to the American Society of Civil Engineers, in 2025, the investment gap for drinking water infrastructure projects stood at approximately $309 billion. This figure highlights a critical shortfall that directly impedes market expansion, as the cost of meeting stringent environmental standards and rehabilitating deteriorating systems far outstrips available financial resources. Without the capital to bridge this gap, utilities are unable to initiate the large-scale service contracts that drive broader market revenue.

Key Market Trends

The Widespread Deployment of Advanced Metering Infrastructure (AMI) is accelerating as utilities transition from manual data collection to digitized network management. This shift enhances operational visibility, allowing operators to detect leakage in real-time and provide customers with usage data that incentivizes conservation. Unlike traditional infrastructure rehabilitation which relies on physical asset replacement, this trend leverages IoT connectivity to optimize existing networks and reduce non-revenue water. According to Smart Water Magazine, January 2025, in the 'Severn Trent customers saving four million litres of water a day through their smart meters' article, Severn Trent had installed more than 350,000 smart meters to help identify network issues more rapidly and improve billing accuracy.

Simultaneously, the Adoption of Advanced Technologies for PFAS and Contaminant Removal is reshaping capital allocation as utilities comply with rigorous new toxicity standards. This trend necessitates integrating sophisticated systems like granular activated carbon and ion exchange to eliminate per- and polyfluoroalkyl substances, distinct from broader sustainability initiatives due to its specific regulatory urgency. The financial scale of this mandate is substantial; according to Black & Veatch, February 2025, in the '2025 Water Report', a study conducted for the American Water Works Association estimated that the national annual cost for water systems to remove PFOA and PFOS to compliance levels exceeds $3.2 billion.

Segmental Insights

The commercial sector identifies as the fastest-growing segment in the global water utility services market due to rapid urban development and the expansion of non-residential infrastructure. This growth is propelled by stricter wastewater discharge mandates from regulatory entities such as the U.S. Environmental Protection Agency, which necessitate professional water management and treatment solutions for business establishments. Additionally, the increasing focus on corporate sustainability and resource efficiency compels hospitality, retail, and office complexes to outsource utility operations. These factors collectively drive the heightened demand for specialized water services within the commercial landscape.

Regional Insights

North America maintains a leading position in the Global Water Utility Services Market due to rigorous regulatory frameworks and extensive infrastructure modernization requirements. The United States Environmental Protection Agency enforces strict compliance standards for water quality and wastewater treatment, compelling utilities to invest consistently in operational upgrades. Furthermore, the region prioritizes the rehabilitation of aging distribution networks to address leakage and ensure service reliability. This sustained focus on regulatory adherence and the integration of digital monitoring technologies creates a stable demand for utility management solutions, securing North America’s dominant status in the global landscape.

Recent Developments

• In October 2025, American Water Works Company, Inc. and Essential Utilities, Inc. entered into a definitive agreement to combine in an all-stock merger, creating a leading regulated utility in the United States. The transaction, valued at a combined enterprise value of approximately $63 billion, aimed to establish a single entity serving approximately 4.7 million water and wastewater connections across 17 states. The Chairman of Essential Utilities noted that the deal would bring together two companies with deep historical roots to enhance service delivery. The combined company planned to maintain significant investment in critical infrastructure while targeting long-term earnings growth and operational efficiencies.
• In May 2025, Veolia Environnement S.A. signed an agreement to acquire the remaining 30% stake in Veolia Water Technologies & Solutions from Caisse de dépôt et placement du Québec (CDPQ). The transaction, valued at approximately $1.75 billion, allowed the company to achieve full ownership of the subsidiary, which specializes in water treatment technologies and services. The Chief Executive Officer of Veolia stated that the acquisition would simplify the group's structure and unlock operational synergies estimated at €90 million. This strategic move was designed to strengthen the company's position in the water technology sector and accelerate value creation for its industrial and municipal clients.
• In December 2024, Severn Trent Plc received final regulatory approval from Ofwat for a transformational £15 billion investment programme for the 2025-2030 period. This plan, described by the regulator as outstanding, included commitments to improve river health, reduce storm overflows, and create 7,000 jobs in the region. The Chief Executive of Severn Trent highlighted that the initiative would secure water supplies and deliver cleaner rivers while maintaining affordable bills for customers. The utility also announced a £575 million financial assistance package to support households, ensuring that the substantial infrastructure upgrades would be delivered responsibly and sustainably.
• In June 2024, Veolia Water Technologies & Solutions and Capture6 announced a global collaboration to deploy innovative carbon capture and water recovery technologies. The partnership focused on integrating Capture6’s direct air capture technology with the utility company’s water treatment expertise to produce fresh water from brine while permanently sequestering carbon dioxide. This joint effort aimed to address the dual challenges of water scarcity and climate change by creating water-positive decarbonization solutions for industrial and municipal clients. The collaboration facilitated the commercial scalability of these systems, providing a sustainable approach to managing water resources and reducing greenhouse gas emissions.

Key Market Players

• Veolia Environment SA
• Suez SA
• American Water Works Company Inc.
• Aqua America Inc.
• United Utilities Group PLC
• Severn Trent PLC
• Thames Water Utilities Limited
• Yorkshire Water Services Limited
• Anglian Water Services Limited
• Southern Water Services Limited

By Application	By Type	By Region
Residential Commercial and Industrial	Single Function Water System and Integrated Water System	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Water Utility Services Market, By Application:

• Residential
• Commercial and Industrial

• Water Utility Services Market, By Type:

• Single Function Water System and Integrated Water System

• Water Utility Services 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