Global Water Utility Services Market to Grow at a CAGR of 5.8% by 2032
The global Water Utility Services market was valued at approximately USD 73.04 Billion in 2024 and is projected to reach around USD 101.36 Billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of around 4.18% between 2025 and 2032.
Global Water Utility Services Market Revenue, 2023 - 2032 (USD Billion)Â
The water utility services market involves the management, treatment, and distribution of water for residential, commercial, industrial, and municipal use. The market is driven by increasing global water consumption, urbanization, rising demand for clean water, and regulatory frameworks enforcing stringent water quality standards. The focus on infrastructure upgrades, smart water management systems, and sustainable practices continues to stimulate growth across all service segments.
A significant growth driver is the rising need for reliable water supply and wastewater treatment solutions in densely populated urban regions. Climate change, water scarcity, and aging infrastructure are pushing governments and private players to invest in resilient, energy-efficient water utility systems. The implementation of digital technologies, including IoT and AI in smart water networks, is also transforming traditional operations and enabling predictive maintenance and real-time monitoring.
Rapid urbanization and population growth are significantly increasing the demand for water utility services. By 2032, it's estimated that 60% of the global population will reside in urban areas, placing immense pressure on existing water infrastructure. This demographic shift necessitates the expansion and modernization of water supply and wastewater treatment systems to meet the growing needs of urban populations.
Governments worldwide are implementing stringent regulations to protect water resources and ensure public health. For instance, the U.S. Environmental Protection Agency's introduction of national regulations for limiting per- and polyfluoroalkyl substances (PFAS) in drinking water requires utilities to invest in advanced treatment technologies to comply with these standards. Such regulatory pressures drive the adoption of modern infrastructure and sustainable practices within the water utility sector.
The integration of advanced technologies is revolutionizing water utility services. Innovations such as smart water meters, IoT-enabled sensors, and data analytics enable utilities to monitor water usage in real-time, detect leaks promptly, and optimize distribution networks. These technological advancements enhance operational efficiency, reduce water losses, and improve service delivery, thereby driving market growth.Â
The water utility services market is experiencing significant growth driven by factors such as population growth, stringent regulatory requirements, technological advancements, infrastructure modernization, climate change, and collaborative investments. Addressing these drivers effectively is essential for ensuring a sustainable and resilient water supply to meet the needs of growing urban populations.
Global Water Utility Services Market Share (%), by Product Type, in 2024Â Â
By Type, in 2024, the drinking water services segment held the largest share due to the global focus on providing safe and accessible drinking water. Governments and NGOs are increasingly investing in water access initiatives, especially in developing economies. The segment benefits from the need to meet WHO and EPA water quality standards and growing health consciousness. Drinking water supply forms the core of global water infrastructure, ensuring access to safe and clean water for residential, commercial, and industrial use. In developed countries, the focus is on upgrading aging infrastructure, improving water quality monitoring, and reducing distribution losses through smart metering and leak detection technologies. In contrast, emerging economies are investing heavily in expanding access to safe drinking water, particularly in rural and underserved urban areas. The demand for sustainable water sourcing, coupled with stricter regulatory standards and rising public health awareness, continues to drive innovation and infrastructure development in this segment.
The wastewater treatment segment is witnessing robust growth due to increasing environmental regulations and the need for sustainable water resource management. As urbanization and industrialization expand, so does the volume of wastewater, necessitating advanced treatment technologies to protect ecosystems and public health. Governments and municipalities are increasingly mandating biological, chemical, and membrane-based treatment solutions to meet effluent discharge standards. Moreover, there's a growing push toward energy-efficient and resource-recovery wastewater plants, which not only treat water but also recover energy and nutrients, making the sector more circular and future-ready.
Recycled water distribution is gaining significant attention as a sustainable solution to address global water scarcity. This segment involves treating wastewater to a high standard for reuse in agricultural, industrial, and even potable applications. Countries like Singapore, Australia, and parts of the U.S. are leading the way in implementing large-scale water recycling systems. The growth of this market is fueled by increasing water stress, environmental conservation efforts, and the push for sustainable urban planning. Public acceptance and regulatory clarity remain key challenges, but advancements in treatment technology and public education are helping bridge the gap.
Stormwater management is becoming increasingly important as climate change leads to more frequent and intense rainfall events, exacerbating urban flooding and water pollution. Traditional drainage systems are being upgraded or replaced by green infrastructure solutions like permeable pavements, rain gardens, and retention ponds to better capture and treat runoff. Municipalities across the globe are investing in smart stormwater systems that use IoT sensors and data analytics to monitor flow and prevent overflow in real-time. While historically underfunded, this segment is now recognized as critical for resilient urban infrastructure, with growing funding and policy support.
By application, the residential application segment led the market in 2024. Growing urban populations and expanding housing developments across both developed and emerging markets have increased demand for domestic water supply and sewage management. Efforts to reduce non-revenue water and improve metering and billing efficiency also contribute to segment growth. Commercial users—such as offices, hotels, retail centers, and educational institutions—require a stable and high-quality water supply for daily operations. Water efficiency is becoming a priority for many businesses aiming to reduce utility costs and meet sustainability goals. As a result, this segment is seeing increased investment in water reuse systems, greywater recycling, and advanced plumbing technologies. Regulations around building sustainability (e.g., LEED certification) are also pushing commercial establishments to integrate more efficient water management solutions. Growth in urban commercial real estate directly supports demand in this segment.
The industrial sector is a significant and complex consumer of water, with usage spanning manufacturing, food processing, energy generation, mining, and chemical industries. These operations often require large volumes of process water and generate heavily polluted wastewater. Environmental regulations are forcing industries to invest in on-site wastewater treatment, zero-liquid discharge systems, and water recycling technologies. Moreover, water scarcity in key industrial regions is leading to a shift toward water-efficient production techniques and alternative sourcing methods. This segment is poised for strong growth as industries move toward sustainable operations and resource recovery.
Municipalities play a central role in managing water supply, wastewater treatment, stormwater control, and overall public water infrastructure. They are often responsible for ensuring compliance with national and local regulations, maintaining infrastructure, and delivering services to residential and commercial users. With aging infrastructure, limited budgets, and increasing climate-related risks, municipalities are under pressure to modernize systems using smart water technologies, AI-based leak detection, and data-driven management platforms. Public-private partnerships are emerging as a key strategy to fund and implement large-scale projects in this segment, especially in urban areas facing rapid growth.
By services, among these, the water supply & distribution service segment dominated in 2024. Continuous infrastructure development, leakage control programs, and modernization of pipeline networks are major factors driving this segment. The increasing use of automation and SCADA systems to improve water delivery reliability and efficiency is also playing a critical role. A rapidly expanding segment due to stricter environmental regulations and sustainability goals. Advanced treatment technologies (biological, chemical, membrane-based) are being adopted to meet water reuse standards and reduce environmental impact. Increasing demand for real-time monitoring to ensure compliance and public safety. Digital sensors, IoT, and AI-powered analytics are enabling utilities to detect contaminants quickly and respond proactively to water quality issues. With the rise of smart meters and digital platforms, utilities are modernizing customer engagement. Automated billing, usage tracking, mobile apps, and personalized services are enhancing transparency and consumer trust.
In 2024, North America held a significant share of the water utility services market due to advanced infrastructure, stringent environmental regulations, and high adoption of smart water technologies. However, the Asia-Pacific region is projected to witness the fastest growth rate over the forecast period, driven by increasing urbanization, water stress, and large-scale investments in water treatment infrastructure in countries like China and India. Europe focuses on sustainability, circular water management, and meeting EU water directives. Countries like Germany, the Netherlands, and the UK lead in wastewater treatment and water recycling. Green infrastructure and digital transformation are also central to regional water strategies. Latin America an emerging market with infrastructure challenges, especially in rural and peri-urban areas. Brazil and Mexico are key players, with ongoing investments in basic water access and sewage treatment. International aid and private sector involvement are crucial to development. The Middle East leads in desalination and water reuse (e.g., UAE, Saudi Arabia), while Africa focuses on expanding access to clean drinking water and basic sanitation. Infrastructure funding and climate adaptation are top priorities across the region.
Key Market Players:
Veolia Environnement S.A.
Suez S.A.
American Water Works Company, Inc.
Thames Water Utilities Limited
Xylem Inc.
United Utilities Group PLC
China Water Affairs Group Limited
Severn Trent plc
SABESP (Companhia de Saneamento Básico do Estado de São Paulo)
Aqua America, Inc.
Recent Development:
2023: Veolia Environnement launched a new AI-driven platform for real-time water quality monitoring and leak detection. This move strengthens its digital water capabilities and improves service efficiency.
2022: American Water Works expanded its operations in Pennsylvania by acquiring local municipal systems, aiming to improve water quality and distribution networks in underserved areas.