Water Recycle and Reuse Market: Urban Water Demand, Advanced Treatment Technologies & Market Forecast

According to IMARC Group's latest research publication, global water recycle and reuse market size reached USD 26.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 63.6 Billion by 2033, exhibiting a growth rate (CAGR) of 9.87% during 2025-2033.

How AI is Reshaping the Future of Water Recycle and Reuse Market

Real-Time Water Quality Monitoring and Treatment Optimization: Machine learning algorithms analyze sensor data from treatment facilities to detect contamination and optimize purification processes with precision.

Predictive Maintenance and Equipment Failure Prevention: AI monitors pump performance, membrane pressure, and filtration efficiency across water recycling infrastructure to predict equipment failures before breakdowns occur.

Agricultural Irrigation Optimization and Contamination Risk Management: AI systems leverage weather forecasts, soil moisture sensors, and crop water requirements to optimize recycled water distribution for agricultural use.

Download the Most Recent 2026 Market Forecasts

Water Recycle and Reuse Industry Overview:

Water scarcity concerns are driving unprecedented investment in recycling infrastructure worldwide, with major technology companies and data centers leading adoption. Google's Douglas County data center diverts 30% of wastewater from municipal treatment plants for cooling operations, contributing nearly USD 1.5 billion to Georgia's GDP while reducing freshwater consumption.

Water Recycle and Reuse Market Trends & Drivers

Government funding programs are accelerating water recycling project development across multiple regions and applications. The U.S. Bureau of Reclamation allocated USD 223 million to 18 water recycling and desalination projects, targeting production of over 305,000 acre-feet annually through advanced water purification facilities including a new plant in Phoenix.

Regulatory frameworks are evolving rapidly to enable safe water reuse across diverse applications and end uses. California became the second state after Colorado to adopt direct potable reuse regulations in October, establishing treatment and pathogen-reduction standards for onsite systems using graywater, roof runoff, and stormwater.

Industrial sectors are implementing water recycling to reduce operational costs and ensure supply security amid intensifying scarcity. Semiconductor fabrication facilities require water volumes equivalent to small cities for chip rinsing and equipment cooling, making recycling essential for new plants in water-restricted communities.

Leading Companies Operating in the Global Water Recycle and Reuse Industry:

• Alfa Laval AB
• Aquatech International LLC
• DeLoach Industries Inc.
• Ecolab Inc.
• Element Solutions Inc.
• Evoqua Water Technologies LLC
• Fluence Corporation Limited
• Hitachi Zosen Corporation
• Industrial Water Equipment Ltd.
• Lenntech B.V.
• Praj Industries Limited
• Samco Technologies Inc.
• Siemens AG
• Veolia Environnement S.A.

Water Recycle and Reuse Market Report Segmentation:

By Technology:

• Conventional Treatment and Recycling Technologies
• Membrane Filtration Technologies
• Chemical Treatment and Disinfection Technologies

Membrane filtration technologies represent the largest segment, as advanced membranes enable effective removal of contaminants and pathogens for diverse reuse applications.

By End User:

• Industrial
• Agricultural
• Domestic and Commercial

Domestic and commercial applications account for the largest market share owing to growing urban water demand and municipal infrastructure investment.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America exhibits clear dominance in the water recycle and reuse market due to advanced infrastructure, stringent environmental regulations, and substantial government funding programs.

Recent News and Developments in Water Recycle and Reuse Market

• September 2025: Veolia announced a consortium agreement with SATORP to implement a USD 500 million water recycling project in Jubail Industrial City, Saudi Arabia. The facility will treat complex petrochemical effluents with 8.8 million cubic meter annual capacity, representing the largest industrial wastewater reuse plant in the Middle East with a 30-year operation contract starting in 2028.
• March 2025: Amazon Web Services and Microsoft received the Global Industrial Water Reuse Champions Award from the International Desalination and Reuse Association. AWS operates 21 data center locations using recycled wastewater in Virginia and California with plans to quadruple capacity, while Microsoft expanded recycled water use in Texas, Washington, California, and Singapore.
• January 2026: The Bureau of Reclamation obligated USD 236.5 million for three large-scale water recycling projects in California and Utah selected in 2024. The projects serve rural, suburban, and urban communities with remaining USD 71.5 million pending Interior Department approval of grant agreements for two additional facilities.

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