Biological Wastewater Treatment Market Size, Share, and Industry Analysis By Process Type (Aerobic, Anaerobic, and Anoxic), By End-User (Municipal and Industrial), and Regional Forecast, 2026-2034

The global biological wastewater treatment market size was valued at USD 10.99 billion in 2025. The market is projected to grow from USD 11.67 billion in 2026 to USD 18.87 billion by 2034, exhibiting a CAGR of 6.19% during the forecast period.

The global biological wastewater treatment market continues to thrive with increasing environmental pressure and application needs for sustainable water management. Biological treatment is a technique that uses microorganisms to degrade organic contaminants in wastewater. Biological treatments are energy-efficient and environmentally friendly approaches that are preferred in a variety of contamination sources, including municipal, industrial, and agricultural applications.

• In 2023, according to Eurostat, European Commission, 77% of wastewater treatment facilities used biological treatment methods, a real reflection of the synchronisation and implementation of sustainable wastewater practices in the region.

Biological wastewater treatment is sometimes a complex process, where systems have wide application areas in municipal wastewater, industrial effluent treatment, and reuse water systems. Current technologies include integrated nutrient removal and membrane bioreactors, preserving the air and environment whilst still producing operational benefits and conforming to stricter discharge limits.

Biological Wastewater Treatment Market Driver

Government Regulations And Industrial Growth Drive Market Growth

Important national legislation on wastewater discharges or environmental protection has been a driving force in the use of biological treatment technologies. In the United States, for example, the U.S. Environmental Protection Agency indicated that 72% of wastewater treatment plants in the U.S. used some biological process as of 2023. Similarly, the growth of industrial activity across the Asia-Pacific is producing unprecedented volumes of wastewater management, with 49% of India’s wastewater systems incorporating biological treatment methods according to the India Brand Equity Foundation.

Biological Wastewater Treatment Market Restraint

High Costs And Skill Shortages Hinder Market Growth

The high initial capital costs and continuing operational costs of biological wastewater treatment technologies still represent significant limitations to market acceptance. The incremental adoption of these technologies is still difficult for small and medium-scale industries that may not have the capital budget to invest in new advanced systems. In addition, the lack of skilled humans to operate complex biological systems and automation systems has also limited efficiency as a whole. The variability of wastewater in different industry sectors adds complications to implementing standardized solutions. Customized solutions are required, but they also come at a cost.

Biological Wastewater Treatment Market Opportunity

Decentralized Systems Drive Market Growth

The market has a tremendous opportunity for growth through decentralized and modular treatment systems, allowing for scalability and flexibility in areas lacking treatment facilities or in remote locations. By supporting circular economy initiatives that take energy and nutrients out of wastewater, the resulting sustainable processes will open up fresh revenue streams. Furthermore, the demand for reliable wastewater treatment in emerging markets, such as Africa and Latin America, will undoubtedly create a large opportunity for growth in the industry.

Segmentation

Key Insights

The report covers the following key insights:

• Micro and Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies of Key Players
• SWOT Analysis of Key Players
• Key Industry Developments (Mergers, Acquisitions, Partnerships)
• Regulatory and Environmental Impact
• Regional Market Growth Trends
• Technological Advancements
• Adoption of Decentralized Systems and Resource Recovery

Analysis by Process Type

By process type, the market is divided into aerobic, anaerobic, and anoxic.

The aerobic segment is expected to dominate its market share of biological wastewater treatment as it is increasingly used by municipalities, and it is simpler to implement. Aerobic processes reduce organic matter, and aerobic processes are more likely to align with and improve stricter environmental regulations and which typically promotes treatment types that perform more efficiently. Urban population growth and subsequent advancement of sewage treatment systems are expected to sustain the aerobic segment's current market influence.

The anaerobic segment should register a significant growth rate over the coming years, particularly in industrial applications. Anaerobic processes will likely fit into growth for biological wastewater treatment due to anaerobic advantages related to energy recovery and lower sludge generation from the treatment of high-strength industrial wastewater. The analysis around sustainability and reduction of operating costs through process energy recovery and sludge minimization also represents strong support for the anaerobic segment.

Analysis by End-User

By end-user, the market is divided into municipal and industrial.

Biological wastewater treatment is going to be strongest in the municipal sector, spurred by continued urbanization and government efforts towards infrastructure. The growing need for centralized sewage treatment and regulations requiring safe discharge is supporting the market position of the municipal segment. The growth and expansion of public hygiene and sanitation programs in regions of the world further support their dominance.

The biological wastewater treatment market in the industrial segment in broad sectors is forecasted to enjoy considerable growth due to the growing industrial effluent produced and unique wastewater issues in each industry. Industries of all types are buying more biological treatments to meet regulatory requirements and make sustainability claims. The trend towards in-house treatment systems in industrial sectors such as chemicals, food & beverage, and pharmaceuticals will further drive the growth of the industrial segment.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

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The biological wastewater treatment market will be largely driven by the Asia-Pacific region due to the rapid urbanization in many areas, emerging industries, and government programs to update existing wastewater infrastructure. A handful of countries, led by China and India, seem to be on the path to managing their expanding environmental issues and are pledging to update their wastewater systems and processes. The region will continue to push its expansion as long as the growing urban population and increasing urbanization continue to drive the demand for wastewater treatment.

North America will also continue to be relevant to the growth of the substantive treatment market, and the continued advancement of sustainable wastewater practices is attributable to environmental regulations and a government-adaptable environment. The region has been proactive in adopting new treatment technologies and ensuring solutions move clearly into municipal or industrial systems. New and continuous advancements in technology and regulatory situations provide a great position for North America.

Europe is still a key region affecting the market, due to environmental policies promoting (and adopting) the best biological treatment solutions. The European focus on resource recovery, energy efficiency, and circular economic approaches to wastewater solutions in this region will continue to solidify their leadership. With continued and strong government support and public awareness, demand for biological wastewater treatment is likely to continue in European countries.

Key Players Covered

The report includes the profiles of the following key players:

• Veolia Water Technologies, Inc. (France)
• SUEZ (France)
• Aquatech (U.S.)
• Evoqua Water Technologies LLC (U.S.)
• Xylem (U.S.)
• OVIVO Inc. (Canada)
• Ecolab (U.S.)
• Samco Technologies, Inc. (U.S.)
• JSC Biotechnologijos Grupė (Lithuania)
• DuPont (U.S.)

Key Industry Developments

• In June 2023, Fluence Corporation won a significant wastewater treatment project in India. This project represents a key milestone in Fluence’s expansion in the Asia-Pacific region and indicates a growth trend towards effective and decentralized biological treatment alternatives in emerging markets.
• In May 2023, Xylem acquired Evoqua, which provides Xylem with an innovative alternative in the area of biological treatment of wastewater. The acquisition complements Xylem's broad portfolio of advanced water treatment technologies and strengthens its position as a leader in integrated water solutions globally.