Industrial Water Treatment Market is projected to expand at a 6.03% CAGR, attaining USD 24.524 billion by 2030 from USD 18.298 billion in 2025.
Industrial water treatment refers to the process of removing impurities and contaminants from water used in industrial processes. The main purpose of industrial water treatment is to ensure that water used in industrial processes is free from harmful chemicals, bacteria, and other impurities that can damage equipment, affect product quality, and harm the environment. Industrial water treatment involves various techniques such as sedimentation, filtration, disinfection, and chemical treatment. These methods can be used separately or in combination to achieve the desired water quality. The rising threat of water pollution drives the demand for industrial water treatment systems. Similarly, the growing rate of industrialization, increasing demand for water treatment solutions, increased awareness of water conservation, technological advancements, etc. are some driving factors of the industrial water treatment market.
The growth of industries such as power generation, oil and gas, and chemical processing is driving the demand for water treatment solutions. These industries require large quantities of water for their operations and therefore need efficient and effective water treatment solutions to meet their needs. According to data from WorldBank national accounts and OECD national accounts, the percentage of value added to the global GDP from industrialization increased from 26.2% in 2020 to 27.6% in 2021. Also, the average annual growth of the percentage of value added to the global GDP from industrialization has gone up significantly from -2.4% in 2020 to 6.1% in 2021 as per the same source. Industrial production in the United States of America has increased by 0.8% in 2023 according to the Federal Reserve. Furthermore, the significant investments made in the development of industries will also contribute to the increasing demand for industrial water treatment systems, thereby highlighting their crucial role in driving market growth. For instance, in March 2022, according to the finance minister of Germany, the country allocated 200 billion euros ($220 billion) towards supporting industrial transformation from 2022 until 2026. Thus, the rising rate of industrialization will fuel the growth of the industrial water treatment market in the coming future.
Industrial water treatment plays a critical role in water treatment plants, which are responsible for treating and supplying clean water to communities and industries. The increasing amount of funding aimed at the development of water treatment plants worldwide is expected to have a significant impact on the growth of the industrial water treatment market. For instance, in January 2023, North Carolina's Governor Roy Cooper revealed funding of $462.9 million to support 249 infrastructure projects across 80 communities throughout the state. These projects aim to enhance the quality and reliability of North Carolina's drinking water, wastewater, and stormwater systems. Similarly, in August 2021, the Canadian government unveiled plans for the development of a new water treatment system in Petit-Rocher, New Brunswick, and pledged nearly $20 million in funding for various water infrastructure projects across the Yukon province. In July 2021, Lenzing Group, a significant supplier of wood-based speciality fibres for the nonwoven and textile industries, invested £20 million (€23.3 million) in constructing a new, advanced wastewater treatment plant in the UK. This investment was part of the company's objective to reduce wastewater emissions by 2022. Therefore, the augmented funding for the expansion of water treatment plants is expected to substantially enhance the growth of the industrial water treatment market.
Rapid industrialization, stringent government regulations, the rising threat of water pollution, etc. are some of the factors due to which the industrial water treatment market is expected to show maximum growth in this region. For example, according to the Ministry of Statistics and Programme Implementation, in India, industrial production went up by 5.4% in 2022 as compared to 2021. The National Bureau of Statistics states that industrial production in China went up by 3.6% between 2021 and 2022. Furthermore, the alarming decline in the number of people having access to safe and clean water sources has led to an increased demand for water treatment systems to safeguard public health and well-being. For instance, in India, the share of the population having access to improved water sources was 5.05% in 2019 which then decreased to 4.53% in 2020, as per WHO/UNICEF Joint Monitoring Programme (JMP) for Water Supply and Sanitation. The same source also indicates that this number has decreased in South Korea from 0.16% to 0.7% between 2019 and 2020. The threat of increased water pollution in the countries of this region has led governments to take initiatives to improve the water treatment plants which will directly affect the growth of the industrial water treatment market. For instance, in June 2022, Daiki Axis Japan, a leading provider of water treatment solutions, established its second plant in India at Haryana with an investment of Rs 200 crore. According to Kamal Tiwari, CEO of Daiki Axis India, the Palwal plant had the capacity to manufacture 1,000 sewage treatment units using Japanese "Johkasou" technology. All these factors collectively contribute to the growth of the industrial water treatment market in the Asia Pacific region.
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