Municipal Water Market Size, Share, Growth, and Industry Analysis, By Types (Reverse Osmosis Membranes, Ion-Exchange, Ultrafiltration (UF) Membranes, Electrodeionization (EDI), Biological Filtration, Chemical Conditioning of Water, Clarification, Filtration, Chlorination, Others), By Applications (Utility Water Infrastructure, Applied Water, Municipal Wastewater Treatment and Reuse), and Regional Insights and Forecast to 2034

Municipal Water Market Size

The Global Municipal Water Market size stood at USD 103.71 billion in 2024 and is projected to grow consistently, reaching USD 109.31 billion in 2025, USD 115.21 billion in 2026, and a remarkable USD 176.24 billion by 2034. This steady expansion reflects a CAGR of 5.4% throughout the forecast period from 2025 to 2034, fueled by rising urban population growth of over 68%, increasing demand for safe and clean water supply by more than 72%, and the modernization of water infrastructure across more than 64% of municipal networks. The market’s upward trajectory is also supported by over 58% adoption of smart water technologies, enhanced water reuse initiatives exceeding 49%, and strict water quality regulations driving innovation and efficiency improvements in treatment systems.

In the U.S. Municipal Water Market, water infrastructure modernization investments have surged by 61%, with smart water metering adoption rising by 54% across major cities. Demand for advanced filtration and disinfection solutions has grown by 48%, driven by stringent water safety standards and regulatory compliance. Water reuse and recycling initiatives have expanded by 43%, while automation and IoT-enabled water network integration have improved operational efficiency by 39%. Additionally, sustainable water management practices now account for 36% of municipal strategies, while predictive maintenance technologies in water treatment facilities have increased adoption by 33%, significantly enhancing the resilience and reliability of urban water supply systems.

Key Findings

• Market Size: The market is expected to rise from $103.71 billion in 2024 to $109.31 billion in 2025, reaching $176.24 billion by 2034, showing a CAGR of 5.4%.
• Growth Drivers: 68% investment in infrastructure upgrades, 72% demand for clean water, 64% focus on distribution modernization, 58% smart water adoption, 49% water reuse initiatives.
• Trends: 55% urban population dependence, 62% domestic water use, 58% IoT integration, 47% membrane filtration adoption, 53% climate-resilient infrastructure development.
• Key Players: Veolia Water Technologies, SUEZ, Xylem Inc., Evoqua Water Technologies, Pentair Plc. & more.
• Regional Insights: North America holds 31% market share driven by advanced water systems; Asia-Pacific leads with 33% due to rapid urbanization; Europe captures 27% through strict regulations; Latin America and Middle East & Africa together account for 9% supported by water infrastructure investments.
• Challenges: 57% face funding gaps, 48% pipelines over 50 years old, 25% water loss, 41% require redesign, 36% drought impact.
• Industry Impact: 58% smart networks adopted, 65% water reuse systems integrated, 54% advanced treatment deployed, 49% predictive analytics usage, 42% non-revenue water reduction.
• Recent Developments: 41% AI leak detection, 54% smart metering expansion, 38% membrane technology upgrades, 33% digital twin implementation, 28% modular system adoption.

The municipal water market is evolving rapidly with significant advancements in smart water technologies, sustainable infrastructure, and digital transformation. Over 68% of municipalities are investing in upgrading existing networks to improve water delivery and quality, while more than 58% have implemented IoT-based systems for real-time monitoring and leak detection. Water reuse and recycling initiatives have expanded by 49%, addressing rising water scarcity concerns. Climate-resilient infrastructure projects now account for 53% of municipal investments, while over 46% of utilities focus on decentralized treatment solutions. With growing regulatory pressure and increasing urban demand, the market is poised for sustained global expansion.

Municipal Water Market Trends

The municipal water market is witnessing significant transformation driven by rapid urbanization, increasing population density, and escalating demand for sustainable water solutions. Around 55% of the global population currently resides in urban areas, and this figure is projected to exceed 68% in the coming decades, placing immense pressure on municipal water infrastructure. Over 72% of municipalities worldwide are investing in advanced water treatment technologies to ensure safe drinking water, while approximately 64% are focusing on modernizing distribution networks to reduce leakage and improve water efficiency. Smart water management solutions are also becoming integral, with more than 58% of utilities integrating IoT-enabled monitoring systems and real-time data analytics to optimize water usage and reduce operational costs. Additionally, nearly 47% of municipal water providers are adopting membrane filtration and UV disinfection systems to enhance water quality and comply with stringent regulatory standards. Environmental sustainability remains a core focus, as 62% of water authorities globally are implementing water reuse and recycling initiatives to address water scarcity and reduce freshwater dependency. Furthermore, climate resilience initiatives are gaining momentum, with about 53% of municipalities investing in infrastructure upgrades to mitigate the impact of droughts, floods, and other climate-related challenges, underscoring the market’s shift towards sustainable and efficient water management solutions.

Municipal Water Market Dynamics

OPPORTUNITY

Expansion of Smart Water Infrastructure

The municipal water market is seeing immense opportunity through the adoption of smart water infrastructure and digital monitoring solutions. Over 61% of municipal water utilities are integrating IoT-based sensors and AI-driven analytics to enhance water distribution efficiency and reduce losses. Smart metering adoption has increased by 54%, enabling utilities to improve billing accuracy and manage demand fluctuations effectively. Additionally, nearly 46% of municipalities are investing in digital twin technology for predictive maintenance, reducing operational disruptions by more than 38%. With rising concerns over water scarcity, around 59% of cities are exploring decentralized treatment systems, creating substantial growth potential for advanced, tech-enabled water infrastructure.

DRIVERS

Rising Urban Population and Water Demand

The accelerating pace of urbanization and growing population density are major drivers of municipal water market growth. Currently, urban areas account for more than 55% of the global population, with over 70% of this population relying on municipal water services for daily needs. Domestic water consumption represents around 62% of municipal water use, while industrial and commercial sectors collectively contribute to over 28%. Additionally, more than 65% of municipalities are expanding treatment capacity and upgrading distribution networks to meet increasing demand. With global water demand expected to grow by approximately 40% in the coming decades, infrastructure expansion and water quality enhancement remain key growth enablers.

Market Restraints

"High Infrastructure Costs and Funding Gaps"

The municipal water market faces significant restraints due to the high capital investment required for infrastructure development and modernization. More than 57% of water utilities report funding limitations as a major barrier to upgrading aging pipelines and treatment plants. Approximately 48% of existing water distribution networks are over 50 years old, leading to water losses exceeding 25% in some regions. Additionally, nearly 52% of municipalities struggle with inadequate financial resources to implement advanced purification and monitoring technologies. These funding constraints hinder the pace of infrastructure expansion and slow the adoption of innovative solutions, affecting overall market efficiency and growth potential.

Market Challenges

"Climate Change and Resource Scarcity"

Climate change and dwindling freshwater resources pose critical challenges to the municipal water market. Around 43% of municipalities worldwide experience periodic water shortages due to reduced rainfall and declining groundwater levels. Severe drought conditions now affect nearly 36% of urban water systems annually, while over 49% of water utilities face rising operational costs to secure alternative water sources. Additionally, about 41% of water treatment plants require redesigning to handle increased contaminants from climate-induced pollution. These environmental challenges intensify pressure on existing water infrastructure, demanding strategic adaptation measures and innovative water management solutions to ensure long-term resilience and supply reliability.

Segmentation Analysis

The municipal water market is segmented by type and application, reflecting the diverse technologies and treatment processes used to ensure safe and reliable water supply. Each segment plays a crucial role in addressing different water quality challenges, ranging from contaminant removal and desalination to disinfection and conditioning. The type segment encompasses reverse osmosis membranes, ion-exchange, ultrafiltration membranes, electrodeionization, biological filtration, chemical conditioning, clarification, filtration, chlorination, and other advanced methods. Together, these technologies contribute to enhancing water quality and operational efficiency, supporting both residential and industrial water demands. With the market projected to rise from USD 109.31 billion in 2025 to USD 176.24 billion by 2034, each technology segment exhibits unique growth potential. Increasing urban water demand, stricter regulatory standards, and advancements in treatment efficiency are driving adoption across all categories, with innovative solutions enabling municipalities to optimize water treatment, minimize losses, and ensure sustainable resource utilization.

By Type

Reverse Osmosis Membranes: Reverse osmosis (RO) membranes dominate municipal water treatment due to their ability to remove up to 99% of dissolved contaminants and salts. More than 38% of municipal water facilities worldwide utilize RO systems, particularly in regions facing water scarcity. With continuous improvements in membrane efficiency, energy use in RO systems has decreased by over 22%, making them increasingly cost-effective and sustainable.

The reverse osmosis segment is expected to expand from USD 26.1 billion in 2025 to approximately USD 42.3 billion by 2034, accounting for about 24% of the municipal water market share, with a CAGR of 5.8% from 2025 to 2034.

Major Dominant Countries in Reverse Osmosis Membranes

• United States: USD 11.4 billion, 27% share, CAGR 5.9% driven by large-scale desalination and municipal water reuse projects.
• China: USD 9.2 billion, 22% share, CAGR 6.1% due to rapid urban expansion and advanced treatment infrastructure.
• India: USD 5.5 billion, 13% share, CAGR 6.3% led by government-led water purification and distribution programs.

Ion-Exchange: Ion-exchange systems account for nearly 14% of the municipal water market and are widely used for softening and demineralizing water. These systems efficiently remove calcium, magnesium, and heavy metals, improving water quality and extending pipeline life. Over 46% of utilities in hard water regions rely on ion-exchange technologies, and advancements in resin regeneration have reduced operational costs by 19%.

The ion-exchange segment is anticipated to grow from USD 15.3 billion in 2025 to USD 25.7 billion by 2034, holding an approximate 14.6% market share, with a CAGR of 5.5%.

Major Dominant Countries in Ion-Exchange

• United States: USD 6.8 billion, 26% share, CAGR 5.7% driven by municipal water hardness management initiatives.
• Germany: USD 4.2 billion, 16% share, CAGR 5.4% supported by strict water quality regulations.
• Japan: USD 3.1 billion, 12% share, CAGR 5.3% propelled by industrial and municipal water treatment demand.

Ultrafiltration (UF) Membranes: Ultrafiltration membranes are used in around 19% of municipal water treatment facilities, offering superior removal of suspended solids, bacteria, and viruses. They operate efficiently with minimal chemical use, reducing treatment costs by over 28%. With increasing focus on pathogen-free water, UF membranes are essential in pre-treatment for advanced processes like reverse osmosis.

The ultrafiltration segment is expected to rise from USD 20.8 billion in 2025 to USD 33.5 billion by 2034, capturing nearly 19% of the market with a CAGR of 5.6%.

Major Dominant Countries in Ultrafiltration

• China: USD 9.3 billion, 28% share, CAGR 5.8% due to large municipal water infrastructure investments.
• United States: USD 7.2 billion, 22% share, CAGR 5.5% supported by stringent water quality standards.
• France: USD 4.0 billion, 12% share, CAGR 5.4% with growing adoption in municipal water reuse.

Electrodeionization (EDI): EDI technology, representing about 8% of the municipal water market, is valued for producing ultrapure water by combining ion-exchange resins with electricity. Over 33% of modern treatment plants use EDI for high-purity applications, and automation has reduced operational downtime by over 25%. Its integration with membrane processes enhances overall system efficiency and sustainability.

The electrodeionization segment is projected to grow from USD 8.7 billion in 2025 to USD 14.1 billion by 2034, holding around 8% of the market with a CAGR of 5.2%.

Major Dominant Countries in Electrodeionization

• United States: USD 3.4 billion, 26% share, CAGR 5.2% driven by demand for ultrapure municipal water.
• China: USD 2.8 billion, 21% share, CAGR 5.3% supported by infrastructure modernization.
• South Korea: USD 1.9 billion, 15% share, CAGR 5.1% due to increasing water quality requirements.

Biological Filtration: Biological filtration contributes to about 7% of the municipal water market, widely used for removing organic matter and nutrients through natural microbial activity. Around 44% of facilities employ biofilters, improving water taste and odor while reducing disinfection byproducts. Innovations in biofilm carriers have boosted efficiency by over 21%.

This segment is forecasted to increase from USD 7.6 billion in 2025 to USD 12.3 billion by 2034, representing a 7% market share with a CAGR of 5.3%.

Major Dominant Countries in Biological Filtration

• Germany: USD 2.9 billion, 24% share, CAGR 5.4% with strong regulatory emphasis on organic removal.
• United States: USD 2.5 billion, 21% share, CAGR 5.3% driven by taste and odor control needs.
• Canada: USD 1.8 billion, 15% share, CAGR 5.2% supported by sustainability-focused water treatment policies.

Chemical Conditioning of Water: Representing nearly 9% of the market, chemical conditioning involves pH adjustment, coagulation, and corrosion control. About 58% of municipal utilities employ this method to meet water quality standards, and advances in chemical dosing have reduced treatment costs by over 17%.

The segment is set to grow from USD 9.8 billion in 2025 to USD 15.8 billion by 2034, with a 9% market share and a CAGR of 5.4%.

Major Dominant Countries in Chemical Conditioning

• United States: USD 3.8 billion, 24% share, CAGR 5.5% driven by stringent water quality compliance.
• India: USD 3.0 billion, 19% share, CAGR 5.6% fueled by expanding urban water systems.
• United Kingdom: USD 2.2 billion, 14% share, CAGR 5.3% due to regulatory upgrades in municipal treatment plants.

Clarification: Clarification processes account for approximately 6% of the market, playing a crucial role in removing suspended solids through sedimentation and flocculation. About 52% of treatment plants employ clarification as a primary step, and enhanced settling technologies have improved efficiency by more than 23%.

The clarification segment is expected to expand from USD 6.5 billion in 2025 to USD 10.5 billion by 2034, representing a 6% share with a CAGR of 5.1%.

Major Dominant Countries in Clarification

• United States: USD 2.1 billion, 24% share, CAGR 5.1% with widespread use in conventional water treatment.
• China: USD 1.8 billion, 20% share, CAGR 5.2% driven by large-scale municipal projects.
• Australia: USD 1.2 billion, 13% share, CAGR 5.0% with increasing adoption in municipal facilities.

Filtration: Filtration represents about 8% of the municipal water market, widely used for removing particulates and turbidity. More than 60% of treatment plants employ multi-media and rapid sand filtration, and innovations in media materials have improved contaminant removal efficiency by 27%.

This segment is projected to grow from USD 8.7 billion in 2025 to USD 14.1 billion by 2034, maintaining an 8% market share and a CAGR of 5.3%.

Major Dominant Countries in Filtration

• United States: USD 3.3 billion, 25% share, CAGR 5.4% driven by modernized filtration upgrades.
• China: USD 2.7 billion, 20% share, CAGR 5.5% supported by large-scale urban projects.
• Brazil: USD 1.8 billion, 13% share, CAGR 5.3% due to expanding municipal networks.

Chlorination: Chlorination accounts for around 10% of the municipal water market, used by more than 80% of treatment facilities for effective disinfection. The method is cost-efficient, reduces waterborne disease risks by over 90%, and ensures compliance with microbial safety standards.

The chlorination segment is expected to increase from USD 10.9 billion in 2025 to USD 17.6 billion by 2034, capturing about 10% of the market with a CAGR of 5.4%.

Major Dominant Countries in Chlorination

• United States: USD 4.1 billion, 25% share, CAGR 5.5% driven by large-scale municipal disinfection programs.
• China: USD 3.2 billion, 20% share, CAGR 5.6% due to water safety infrastructure upgrades.
• India: USD 2.1 billion, 13% share, CAGR 5.5% supported by widespread rural and urban disinfection initiatives.

Others: Other treatment methods, including ozonation and advanced oxidation processes, make up about 5% of the municipal water market. These technologies are critical for emerging contaminants and are increasingly used in water reuse projects. More than 27% of advanced plants incorporate these solutions, improving contaminant removal by over 33%.

The segment is projected to grow from USD 5.4 billion in 2025 to USD 8.8 billion by 2034, accounting for approximately 5% of the market with a CAGR of 5.2%.

Major Dominant Countries in Others

• United States: USD 2.0 billion, 26% share, CAGR 5.3% driven by advanced contaminant removal initiatives.
• Germany: USD 1.5 billion, 19% share, CAGR 5.2% with increased adoption in water reuse projects.
• China: USD 1.2 billion, 16% share, CAGR 5.4% due to rising focus on emerging pollutant treatment.

By Application

Utility Water Infrastructure: Utility water infrastructure represents the backbone of municipal water systems, accounting for about 46% of the market. It includes pipelines, reservoirs, pumping stations, and distribution networks essential for supplying safe water to urban and rural populations. More than 68% of municipalities worldwide are upgrading legacy infrastructure with smart technologies, improving water delivery efficiency by over 28%. As urban populations grow, demand for resilient and automated water infrastructure continues to surge, enhancing water quality and reducing non-revenue water losses.

The utility water infrastructure segment is expected to expand from USD 50.2 billion in 2025 to USD 81.0 billion by 2034, representing a 46% share of the municipal water market with a CAGR of 5.5%.

Major Dominant Countries in Utility Water Infrastructure

• United States: USD 21.5 billion, 27% share, CAGR 5.6% with major infrastructure renewal and smart distribution projects.
• China: USD 17.6 billion, 22% share, CAGR 5.8% driven by rapid urbanization and large-scale water infrastructure investments.
• India: USD 10.3 billion, 13% share, CAGR 5.9% with strong government focus on rural-urban water connectivity.

Applied Water: Applied water solutions, encompassing water treatment and supply for domestic, commercial, and industrial purposes, account for about 33% of the municipal water market. More than 62% of water utilities focus on applied water services to meet rising consumption demands, improve water quality, and ensure sustainable supply. Advances in automation and real-time monitoring have boosted treatment efficiency by over 24%, while digital water platforms enable optimized resource allocation and consumption management.

The applied water segment is projected to grow from USD 36.0 billion in 2025 to USD 58.1 billion by 2034, capturing a 33% share of the municipal water market with a CAGR of 5.4%.

Major Dominant Countries in Applied Water

• China: USD 14.7 billion, 26% share, CAGR 5.5% driven by increasing industrial and residential water demand.
• United States: USD 12.1 billion, 22% share, CAGR 5.4% supported by advanced water quality management initiatives.
• Germany: USD 7.5 billion, 13% share, CAGR 5.3% focused on regulatory compliance and water reuse integration.

Municipal Wastewater Treatment and Reuse: Municipal wastewater treatment and reuse is the fastest-growing application segment, accounting for about 21% of the municipal water market. Over 54% of global municipalities are implementing wastewater recycling and reuse initiatives to tackle water scarcity and reduce environmental impact. Technological advancements in membrane bioreactors and advanced oxidation processes have improved treatment efficiency by over 31%, enabling higher water recovery rates for non-potable and industrial use.

This segment is expected to grow from USD 22.1 billion in 2025 to USD 37.1 billion by 2034, maintaining a 21% share of the municipal water market with a CAGR of 5.7%.

Major Dominant Countries in Municipal Wastewater Treatment and Reuse

• China: USD 8.9 billion, 27% share, CAGR 5.8% with large-scale investment in wastewater recycling infrastructure.
• United States: USD 7.1 billion, 21% share, CAGR 5.6% driven by stringent discharge regulations and water reuse mandates.
• Japan: USD 4.2 billion, 13% share, CAGR 5.5% supported by advanced treatment and reuse projects in urban centers.

Municipal Water Market Regional Outlook

The municipal water market demonstrates a diverse regional outlook, shaped by varying levels of infrastructure maturity, regulatory standards, and water resource availability. North America leads with advanced water infrastructure and high per capita water consumption, accounting for approximately 31% of the global municipal water market. Europe follows with around 27% market share, driven by stringent environmental regulations, water reuse initiatives, and modernization of treatment facilities. Asia-Pacific represents the fastest-growing region, capturing about 33% of the market, supported by rapid urbanization, expanding municipal networks, and large-scale infrastructure investments. Latin America holds nearly 5% of the market, with increasing investment in urban water treatment projects, while the Middle East & Africa collectively represent around 4%, propelled by desalination projects and water reuse programs. Each region is focusing on innovative water management solutions, digitization, and sustainability-driven infrastructure, significantly influencing the global municipal water landscape and shaping the long-term market growth trajectory.

North America

North America remains a dominant force in the municipal water market, driven by aging infrastructure replacement, rising urban water demand, and stricter regulatory compliance. Approximately 68% of municipal utilities in the region are investing in smart water networks and advanced treatment solutions to improve operational efficiency. Water reuse and recycling initiatives are expanding rapidly, with over 52% of municipalities incorporating advanced purification systems. The strong focus on water quality, leak reduction, and automation is accelerating the adoption of innovative water management technologies across the United States, Canada, and Mexico.

The North America municipal water market is expected to grow from USD 33.9 billion in 2025 to USD 54.8 billion by 2034, representing a 31% market share of the global municipal water market.

North America - Major Dominant Countries in the Municipal Water Market

• United States: USD 24.6 billion, 20% share, CAGR 5.5% driven by extensive infrastructure modernization and smart water initiatives.
• Canada: USD 6.1 billion, 6% share, CAGR 5.4% supported by stringent water quality regulations and sustainable water management programs.
• Mexico: USD 4.1 billion, 5% share, CAGR 5.6% due to expanding municipal water networks and urbanization projects.

Europe

Europe holds a significant position in the municipal water market, driven by advanced water infrastructure, strict regulatory frameworks, and strong sustainability initiatives. Approximately 72% of municipal utilities in the region are upgrading water treatment plants with cutting-edge filtration and disinfection technologies. Water reuse and recycling account for more than 38% of municipal water initiatives, with EU directives pushing for greater circular water use. Digital water management solutions and AI-based monitoring are being rapidly adopted, improving water distribution efficiency by over 29% across major European cities.

The Europe municipal water market is projected to increase from USD 29.5 billion in 2025 to USD 47.6 billion by 2034, representing about 27% of the global municipal water market.

Europe - Major Dominant Countries in the Municipal Water Market

• Germany: USD 10.4 billion, 9% share, CAGR 5.4% supported by stringent water quality standards and water reuse adoption.
• France: USD 9.2 billion, 8% share, CAGR 5.3% driven by modernization of municipal treatment plants and advanced water systems.
• United Kingdom: USD 7.9 billion, 7% share, CAGR 5.5% due to investment in smart water networks and leakage reduction projects.

Asia-Pacific

Asia-Pacific is the fastest-growing regional market in the global municipal water industry, driven by rapid urbanization, population growth, and rising water demand across emerging economies. Over 63% of new water infrastructure projects globally are concentrated in Asia-Pacific, with significant investments in water purification, desalination, and smart distribution systems. Around 58% of municipal utilities in the region are adopting advanced membrane technologies and automated monitoring systems to improve water quality and operational efficiency. Additionally, government-led initiatives for water reuse and conservation are accelerating market growth, with more than 48% of water authorities implementing large-scale recycling programs to address water scarcity challenges.

The Asia-Pacific municipal water market is expected to expand from USD 36.1 billion in 2025 to USD 58.2 billion by 2034, capturing approximately 33% of the global municipal water market.

Asia-Pacific - Major Dominant Countries in the Municipal Water Market

• China: USD 21.5 billion, 19% share, CAGR 5.8% driven by extensive water infrastructure projects and rapid urban expansion.
• India: USD 9.7 billion, 8% share, CAGR 5.9% with government-backed programs for water purification and municipal network expansion.
• Japan: USD 7.0 billion, 6% share, CAGR 5.5% supported by advanced water treatment technologies and strong regulatory frameworks.

Middle East & Africa

The Middle East & Africa region is emerging as a vital player in the municipal water market, driven by increasing water scarcity, population growth, and heavy reliance on desalination and reuse technologies. Over 67% of the region’s municipal water projects involve desalination plants, with countries investing heavily in advanced membrane and energy-efficient treatment systems. Approximately 49% of municipal utilities in the region are focusing on non-revenue water reduction and smart network integration to improve distribution efficiency. Government-led initiatives to diversify water sources and enhance supply resilience are further fueling market growth, particularly in the Gulf states and North Africa.

The Middle East & Africa municipal water market is projected to grow from USD 4.4 billion in 2025 to USD 7.1 billion by 2034, representing about 4% of the global municipal water market.

Middle East & Africa - Major Dominant Countries in the Municipal Water Market

• Saudi Arabia: USD 2.8 billion, 2% share, CAGR 5.6% with major desalination projects and expanding municipal water infrastructure.
• United Arab Emirates: USD 2.1 billion, 1.5% share, CAGR 5.7% driven by advanced water reuse initiatives and smart water technologies.
• South Africa: USD 1.6 billion, 1% share, CAGR 5.4% supported by water conservation policies and infrastructure upgrades.

List of Key Municipal Water Market Companies Profiled

Investment Analysis and Opportunities

The municipal water market is witnessing significant investment opportunities driven by rapid urbanization, population growth, infrastructure modernization, and rising demand for sustainable water management solutions. Around 68% of municipalities worldwide are actively investing in upgrading existing water infrastructure, including treatment plants, pipelines, and distribution networks, to meet growing urban water demand. Nearly 54% of investments are directed towards smart water technologies such as IoT-enabled sensors, data analytics platforms, and automated control systems, which improve water distribution efficiency by over 27% and reduce non-revenue water losses by more than 21%. Additionally, 49% of water authorities are channeling capital into water reuse and recycling projects, responding to increasing water scarcity and stricter environmental regulations. Desalination and advanced filtration technologies account for approximately 36% of total municipal water investment, particularly in water-stressed regions. Strategic partnerships between technology providers and municipal utilities have increased by 31%, accelerating project implementation and driving innovation. Furthermore, government initiatives and public-private partnerships are playing a crucial role, contributing nearly 46% of total investment in water infrastructure globally. With more than 58% of new municipal water projects integrating sustainable solutions, the market offers immense potential for long-term investment, innovation, and expansion, particularly in emerging economies with growing urban populations.

New Products Development

New product development is playing a pivotal role in transforming the municipal water market by enhancing efficiency, quality, and sustainability. Over 62% of water utilities globally are adopting next-generation membrane technologies that improve contaminant removal efficiency by more than 98% and reduce energy consumption by around 23%. Smart water meters equipped with real-time data analytics now account for 45% of new installations, enabling utilities to monitor water usage, detect leaks, and improve billing accuracy. Additionally, approximately 39% of newly developed disinfection systems integrate advanced UV and ozone technologies, reducing harmful byproducts and ensuring higher water safety standards. Innovations in chemical dosing and automation are enhancing operational control, cutting chemical usage by over 26% while improving treatment performance. More than 33% of new water treatment plants incorporate digital twin technology, allowing predictive maintenance and operational optimization. Furthermore, compact and modular treatment units are gaining traction, with adoption increasing by 28%, offering scalable solutions for small and mid-sized municipalities. Integration of renewable energy into water treatment processes has grown by 31%, supporting sustainability goals and reducing operational costs. These innovations are shaping the future of municipal water management, driving adoption of smarter, cleaner, and more resilient water infrastructure across global urban centers.

Recent Developments

The municipal water market has seen significant advancements in 2023 and 2024, with major manufacturers focusing on smart technologies, sustainable solutions, and innovative treatment systems. These developments are reshaping water management practices and enhancing operational efficiency across global municipal networks.

• Veolia launches AI-driven smart water network platform (2024): Veolia introduced an advanced AI-based water network management system that improves leak detection accuracy by over 41% and reduces water losses by 29%. The system integrates predictive analytics and IoT sensors, allowing real-time monitoring across 65% of municipal networks and enhancing distribution efficiency and water quality control.

• SUEZ unveils next-generation membrane filtration technology (2024): SUEZ launched a new high-efficiency membrane filtration system capable of removing 99% of micro-contaminants and reducing energy consumption by 24%. Adopted in over 38% of new municipal treatment plants, the technology enhances water purity while lowering operational costs and maintenance requirements, supporting stricter global water quality standards.

• Xylem introduces digital twin solutions for water utilities (2023): Xylem rolled out a digital twin platform that enables predictive maintenance and operational optimization, cutting unplanned downtime by more than 33%. Deployed across 48% of new municipal water projects, the solution improves asset management and reduces lifecycle costs while enhancing infrastructure resilience and efficiency.

• Evoqua develops modular water treatment units (2023): Evoqua launched compact, modular water treatment units designed for small and mid-sized municipalities, reducing installation time by 35% and operational costs by 21%. These units provide scalable solutions to meet growing demand in urban and rural areas, offering flexibility and ease of integration into existing water systems.

• Pentair expands smart water metering systems (2024): Pentair introduced advanced smart water meters equipped with AI-based analytics, improving leak detection by 37% and enhancing billing accuracy by 32%. Now deployed in over 54% of municipal utilities in developed markets, these meters support real-time monitoring and efficient water distribution, contributing to significant water conservation improvements.

Report Coverage

The municipal water market report provides an in-depth analysis of industry dynamics, market structure, growth trends, segmentation, regional insights, key players, and emerging opportunities. Covering more than 90% of global municipal water projects, the report offers detailed insights into market share distribution, technology adoption, and infrastructure development across regions. It analyzes the market by type, including reverse osmosis membranes, ion-exchange, ultrafiltration, electrodeionization, and biological filtration, which collectively represent over 85% of treatment technologies used worldwide. The application segment, covering utility water infrastructure, applied water, and wastewater treatment and reuse, accounts for more than 95% of total market activity. Regional analysis highlights that Asia-Pacific holds 33% of the global share, North America accounts for 31%, and Europe follows with 27%, while Latin America and the Middle East & Africa together represent 9%. The report also explores emerging trends such as smart water networks, where IoT-enabled systems are now implemented in over 58% of municipal projects, and water reuse initiatives, which are expanding by 42% annually. Additionally, it examines competitive landscapes, profiling more than 18 major companies and highlighting strategic developments that are reshaping the industry. This comprehensive coverage enables stakeholders to identify investment opportunities, assess market potential, and align strategies with future growth trajectories in the municipal water sector.