Water Recycle and Reuse Market Size, Share, and Industry Analysis By Technology (Membrane Filtration, Biological Treatment, Advanced Oxidation Processes, Conventional Treatment, Disinfection, and Others), By End Use (Commercial, Residential, and Industrial), and Regional Forecast, 2026-2034

The global water recycle and reuse market size was valued at USD 20.78 billion in 2025. The market is projected to grow from USD 23.35 billion in 2026 to USD 59.22 billion by 2034, exhibiting a CAGR of 12.34% during the forecast period.

The global water recycle and reuse market is meant to grow at a fast pace due to an increase in demand from challenges posed by water scarcity emanating from rapid industrialization and urbanization. The market growth is propelled by more stringent environmental regulations, betterment of water treatment technologies, and increasing acceptance by the power generation, oil and gas, and farming industries.

• According to the Israel Ministry of Environmental Protection, 80% of Israel's sewage is treated and reused for agriculture.

Water Recycle and Reuse Market Driver

Increasing Water Scarcity, Stringent Environmental Regulations, and Technological Advancements

The accelerated population growth, urbanization, and industrialization have increased water demand on an unprecedented scale, with concomitant depletion of freshwater resources. Scarcity in water resources is rapidly paving way toward the acceptance of water recycling and reuse measures for sustainable water management.

Governments around the world now put into force laws to regulate wastewater discharge and induce sustainable water use. These regulations encourage industries and the municipal sector to invest in advanced water recycling and reuse technologies.

Innovations in technology for water treatment with regard to membrane filtration and advanced oxidation processes have made recycling systems much more efficient and less expensive. This has led to greater availability and reliability of these water reuse options to myriad sectors.

Water Recycle and Reuse Market Restraint

High Initial Investment and Infrastructure Costs and Regulatory and Policy Variability May Affect Market Expansion

Setting up facilities to recycle water involves a considerable investment in advanced technologies and infrastructure. This large initial investment, however, is a constraint, particularly for smaller organizations or developing regions that cannot invest in adopting proper systems for sustainable water recycling.

Rejection of the use of recycled water results from safety and health issues and allaying such suspicion will require intense public sensitization and awareness campaigns on the benefits, safety measures, and gains over time of water reuse in terms of global water scarcity challenges.

Regulatory inconsistencies across different territories create barriers to the standardization of water recycling practices. These disparities, however, create a lot of uncertainty for the industry and municipalities and subsequently reduce investments in water reuse technologies by preventing the development of global practices.

Water Recycle and Reuse Market Opportunity

Industrial Applications, Agricultural Irrigation, and Technological Innovations to Offer New Growth Avenues

Water recycling has arrived as an option - rather, an ever-emerging necessity - for power generation, oil and gas, as well as pharmaceuticals. These sectors are bringing state-of-the-art technologies that minimize use of freshwater in compliance with environmental regulations while going forward toward sustainability.

Treated wastewater will be a good source of irrigation for semi-arid or drought-prone regions. It saves freshwater and provides reliable and constant access to irrigation water for agriculture, supporting sustainability and increasing the productivity of the farming enterprise.

Water treatment technologies innovate for maximum efficiency and cost reduction. They advance avenues for industrial, municipal, or agricultural water reclamation projects as a sustainable solution to the worldwide water scarcity challenge.

Segmentation

Key Insights

The report covers the following key insights:

• Water Scarcity Levels and Demand Trends, By Key Countries
• Adoption Rates of Water Recycling Technologies Across Major Regions
• Major Market Drivers, Trends, and Emerging Investment Opportunities
• Business Strategies Adopted by Key Players and Industry Developments (Mergers, Acquisitions, Partnerships)
• Overview: Regulatory Frameworks, Government Policies, and Environmental Guidelines

Analysis by Technology

By technology, the water recycle and reuse market is divided into membrane filtration, biological treatment, advanced oxidation processes, conventional treatment, disinfection, and others.

Membrane filtration technology is presumed to exhibit phenomenal growth on the basis of efficient contaminant removal, bringing in recycled water of enhanced quality. The water purification area engages a lot of investment in industries, which drives the adoption of reverse osmosis (RO) and nano-filtration technology in this sector.

Biological treatment is an emerging technology on account of being very cost-effective and environmentally friendly. Its demand is chiefly expected to surge in municipal wastewater treatment plants treating waste, aided through biological processes to break down organic matter. This intensifies water quality plus bowel discharge with stringent environmental regulations, pushing the significant expansion of the segment.

The Advanced Oxidation Processes (AOPs) segment is expected to clock substantial growth as these technologies are able to destroy micropollutants and non-biodegradable contaminants. The AOP demand is mainly driven by the requirement for high-purity industrial-grade water in pharmaceutical and chemical industries.

Traditional technology gains solid market share mainly on the basis of its established use in undeveloped regions. Conventional treatment methods consist of processes such as sedimentation and coagulation, which are generally considered in both municipal and industrial injection due to their negligible operational costs.

Chlorination and UV disinfection are the technologies that have been traditionally used for disinfection and are likely to show steady growth as awareness of waterborne diseases increases and health and safety regulations are enhanced. The technologies are widely accepted; they are cheap and easily retrofitted to existing systems.

Other technologies refer to emergent technologies and hybrid systems combining different processes for better water purification. This segment is bound to experience growth as R&D activities are set toward the development of innovative solutions to cater to the growing global demand for clean water.

Analysis by End Use

Based on end use, the water recycle and reuse market is divided into commercial, residential, and industrial.

Residential applications are emerging at a moderate pace, assisted by a growing awareness of water conservation and government subsidies for greywater recycling. Decentralized systems are being used in urban households, particularly in water-scarce areas, to curtail consumption and costs.

The industrial end-use segment commands the market, with opportunities in power, oil & gas, chemicals, textiles, and food processing. The solutions provide upgrades for water reuse systems to satisfy compliance, increase cost savings, and ensure sustainability.

In the commercial end-use sector, sustainable requirements have been seen to advance in the hospitality, office, and retail industries. The primary forces driving the acceptance of water recycling systems in these buildings are green certifications, along with water conservation regulations.

Regional Analysis

Based on region, the water recycle and reuse market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America leads the market for water recycling and reuse, due to increased environmental regulation surrounding water reclamation and stimulant policies for wastewater treatment and water reuse. The existence of industry leaders with constant technological development enhances the market with advanced water treatment solutions in various industrial applications.

Europe accounts for the second-largest share of the market, with environmental consciousness and the strict enforcement of EU directives on water management contributing to the same. Water recycling is highly encouraged due to water scarcity issues in a few regions as industries and municipalities endeavor to establish an adequate and sustainable water supply.

Asia Pacific is maintaining excellent growth, owing to swift industrialization and urbanization in China and India. This has led to the increased demand for water and disposal of wastewater, requesting proper water recycling measures. On the other hand, government support and investments in sustainable water management infrastructure act as accelerators for the growth of the market in the region.

Key Players Covered

The report includes the profiles of the following key players:

• Aquatech (U.S.)
• Calgon Carbon Corporation (U.S.)
• Kurita America Inc. (U.S.)
• Tetra Tech, Inc. (U.S.)
• Hitachi, Ltd. (Japan)
• Veolia (France)
• SUEZ Worldwide (France)
• Xylem (U.S.)
• Evoqua Water Technologies LLC (U.S.)
• Dow (U.S.)

Key Industry Developments

• In December 2024, TETRA Technologies launched the TETRA Oasis TDS, a water treatment and desalination technology aimed at beneficial reuse and mineral extraction from produced water in the oil and gas industry.
• In September 2024, rural towns in southeastern New Mexico are exploring the reuse of treated oil wastewater, known as produced water, as a solution to drought conditions, with pilot projects demonstrating the feasibility of this approach.
• In August 2024, Sydney Water announced plans to introduce purified recycled water into the city's drinking supply by 2032, aiming to manage growing water demand due to population growth.