Decentralized Water Treatment Market Size (2024 - 2030)

As per the latest research findings, the Global Decentralized Water Treatment Market recorded a valuation of USD 15.91 billion and is poised to achieve a market size of USD 40.55 billion by 2030. The market anticipates a steady growth trajectory with a compound annual growth rate (CAGR) of 14.3% during the forecast period (2024 - 2030).

Overview of the Industry

The domain of decentralized wastewater treatment encompasses a spectrum of methodologies for the collection, treatment, and distribution or reuse of wastewater. It caters to individual residences, institutional or industrial establishments, clusters of residences or businesses, and entire communities. The selection of an appropriate treatment system for each locale is contingent upon site-specific conditions. These systems can operate autonomously or in conjunction with centralized sewage treatment systems, constituting a permanent facet of infrastructure. They offer diverse treatment modalities, ranging from basic passive treatment utilizing soil dispersion (commonly referred to as onsite systems or septic tanks) to advanced mechanized techniques such as advanced treatment units, which aggregate and treat waste from multiple edifices before discharge into the soil or surface waters.

Typically situated at or in close proximity to the point of wastewater generation, systems discharging onto surfaces (water or soil) necessitate a National Pollutant Discharge Elimination System (NPDES) permit. An integrated wastewater management approach has been embraced by Loudoun Water in Loudoun County, Virginia, incorporating capacity procured from a centralized plant, a satellite water reclamation facility, and several small, community cluster systems. This strategy has engendered a framework wherein growth begets growth, facilitating the preservation of the county's rural identity. Developers independently design and construct cluster wastewater facilities conforming to Loudoun Water standards, subsequently transferring ownership to Loudoun Water for ongoing maintenance at their expense. Operating on a financially self-sufficient basis, the program's rates cover its operational costs.

Impact of Covid-19 on the Industry

Forecasts indicate significant growth in the decentralized water treatment sector owing to heightened globalization, industrialization, and population expansion. The advent of COVID-19 exerted dual impacts on the sector. On one hand, increased home confinement prompted augmented consumption of tap water, bolstering adoption rates. Conversely, stringent restrictions in certain jurisdictions led to diminished production during the initial two quarters of 2020.

Market Drivers

Favorable for Communities Contemplating New Systems

Communities deliberating the installation of new systems or contemplating alterations, replacements, or expansions of existing wastewater treatment infrastructure may find decentralized wastewater treatment to be a judicious recourse. Escalating expenditure on wastewater treatment by various nations is fueling the expansion of the packaged wastewater treatment market.

Escalating Demand for Decentralized Wastewater Treatment

Rapid urbanization, coupled with burgeoning commercial and industrial sectors, has underscored the inadequacy of centralized treatment facilities in accommodating the escalating demand for treated wastewater, let alone addressing the burgeoning volumes of wastewater generation. Moreover, numerous centrally located plants are situated in landlocked regions necessitating substantial modifications. In order to fulfill capacity requisites and comply with evolving regulations governing wastewater disposal, entities across sectors are increasingly investing in packaged or decentralized treatment solutions.

Market Restraints

Effective Maintenance Oversight for Numerous Treatment Units Poses Challenges

The management of a large number of treatment units presents challenges in ensuring proper maintenance, thereby augmenting the risk of public health concerns. Costs associated with the construction of treatment, storage, or disposal units, alongside additional infrastructure for greywater reuse, escalate the overall project expenditure, often surpassing the savings accrued from water conservation efforts.

Decentralized Water Treatment - By Application

• Wastewater Treatment
• Effluent Treatment
• Water Treatment

The segmentation of the global decentralized water treatment market by application encompasses wastewater treatment, effluent treatment, and water treatment. Notably, it is projected that the water-waste treatment sector will exhibit the highest Compound Annual Growth Rate (CAGR) compared to the other segments.

Global Decentralized Water Treatment - By End-User

• Municipal
• Industrial

The global decentralized water treatment market is categorized by end-user into municipal and industrial sectors. Projections suggest that the municipal segment will witness the highest CAGR compared to its industrial counterpart.

Global Decentralized Water Treatment - By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The market in the Middle East and Africa region exhibits significant concentration due to increasing urbanization and rising disposable incomes, particularly in nations like the United Arab Emirates and Saudi Arabia.

In the Asia-Pacific (APAC) region, China dominates with a notable revenue share of 31.46 percent, driven by the populace's adoption of technologically advanced products. This trend is expected to fuel substantial growth in the decentralized water treatment market throughout the forecast period.

In Europe, market growth is propelled by heightened public awareness regarding the adverse health effects of contaminated water, not only in commercial sectors such as workplaces, airports, and hospitals but also in residential and industrial domains.

Global Decentralized Water Treatment - By Companies

• Fluence
• De.Mem
• Organica Water
• WaterHealth

Recent Developments in the Global Decentralized Water Treatment Market:

Merger & Acquisition: In 2021, De.mem (ASX: DEM), an Australian-Singaporean water and wastewater treatment firm, announced the successful acquisition of the Copic business.