Sewage Treatment Market Size, Share, Growth, Trends, and Global Industry Analysis: By Equipment (Membrane Separation, Biological, Disinfection, Sludge Treatment, Others), By Process (Primary, Secondary, Tertiary), By Application (Municipal, Industrial) and Region Forecast 2020-2031

Sewage Treatment Market size was valued at US$ 70.3 billion in 2024 and is projected to reach US$ 97.6 billion by 2031 at a CAGR of 4.8% from 2025-2031. Moreover, the U.S. Sewage Treatment  Market is projected to grow at 4.9% CAGR over the forecast period. The market refers to the industry involved in the removal of contaminants from wastewater, primarily from household and industrial sewage. It encompasses the design, installation, operation, and maintenance of sewage treatment plants and systems.

The market includes various treatment processes such as physical, chemical, and biological methods to ensure that the treated water meets environmental standards before being discharged or reused. Key components of this market include primary treatment, secondary treatment, tertiary treatment, sludge handling, and disinfection technologies. As populations grow and urbanization accelerates, the demand for efficient sewage treatment systems continues to expand globally.

The market is gaining momentum due to heightened awareness of water pollution, regulatory pressure, and increasing water scarcity. Governments and municipalities are making significant investments to upgrade aging infrastructure and meet sustainable development goals. Moreover, innovations such as decentralized treatment systems, smart monitoring, and energy-efficient technologies are transforming the sector. With growing industrial activity and stricter environmental norms, the market is expected to see robust growth across developed and emerging economies alike.

Facts & Figures

• A 2020?22 assessment across about 42 reporting countries showed that 60% of collected wastewater undergoes secondary or better treatment, while as much as 76% of all generated wastewater receives some form of treatment.
• As of 2024, approximately 55.8% of global domestic wastewater receives safe treatment (i.e. at least secondary treatment) before environmental discharge. Analysts note this figure underscores that nearly half of wastewater remains untreated or inadequately treated worldwide.
• Globally, there are an estimated 58,000+ wastewater treatment plants (WWTPs) in operation across 129 countries, with approximately 90,000?km of river systems receiving effluent from plants that provide only primary treatment.

Key Developments

• In April 2025, A pilot study in Kalundborg, Denmark showcased the effectiveness of advanced membrane filtration preprocessing for industrial-municipal wastewater reuse. Ultrafiltration achieved a water recovery rate of 87% with optimized energy consumption, enabling treated water to meet industrial cooling standards and supporting circular water systems. This underscores the growing trend of industrial symbiosis and resource recovery through cutting-edge treatment approaches.
• In August 2024, the Yixing Concept Water Resource Reclamation Facility in China received the International Water Association’s Global Grand Innovation Award for its sustainable treatment of 20,000?m³/day, serving agriculture and urban reuse needs while addressing resource scarcity.
• In Nov 2024, Gujarat introduced a new wastewater recycling policy to combat freshwater scarcity. In Gandhinagar Gujarat government has developed this policy addressing the increased pressure on drinking water resources and health issues caused by water pollution. Improved water management in India has seen a rise in India’s GDP rate, providing sustainable water.

Sewage Treatment Market Segmentation

Based on the equipment

• Membrane Separation
• Biological
• Disinfection
• Sludge Treatment
• Others

Among the various equipment segments in the market, membrane separation technology is anticipated to be the leading driver due to its superior efficiency in producing high-quality treated water. Membrane separation systems, including ultrafiltration, nanofiltration, and reverse osmosis, are increasingly favored for their ability to effectively remove pathogens, suspended solids, and dissolved contaminants. This is particularly crucial in regions with high water stress and stringent discharge regulations. As urban populations expand and industrial discharges grow more complex, conventional treatment methods often fall short in achieving the required water quality standards. Membrane-based systems offer modularity, lower land footprint, and compatibility with both centralized and decentralized installations. Their rising adoption is further supported by the growing demand for water reuse and recycling across industrial sectors such as pharmaceuticals, textiles, and food processing. Additionally, ongoing innovations in membrane materials and energy-efficient operations are making these systems more cost-competitive, reinforcing their leadership position in the global sewage treatment market.

Based on the process

• Primary
• Secondary
• Tertiary

Within the market, secondary treatment is expected to lead the segment due to its critical role in significantly reducing organic matter and biological contaminants from wastewater. As global environmental regulations become more stringent, particularly regarding biological oxygen demand (BOD) and suspended solids, municipalities and industries are compelled to adopt more effective biological treatment processes. Secondary treatment, often involving activated sludge systems or biofilm reactors, offers a cost-effective and scalable solution to meet these standards. It serves as the backbone of most modern sewage treatment plants, efficiently bridging the gap between basic sedimentation (primary treatment) and advanced polishing (tertiary treatment). The widespread applicability of secondary treatment in both urban and semi-urban settings, combined with its ability to adapt to varying influent characteristics, drives its dominance. Furthermore, growing urbanization, especially in emerging economies, is leading to increased deployment of secondary treatment facilities, reinforcing its leadership in the market as both a regulatory and environmental necessity.

Based on the application

• Municipal
• Industrial

Municipal applications are anticipated to lead the market due to the rising need for large-scale sanitation infrastructure driven by rapid urbanization and population growth. Municipalities are under increasing pressure to manage growing volumes of domestic wastewater while meeting strict environmental standards for effluent discharge. Governments across both developed and developing regions are investing heavily in upgrading aging wastewater infrastructure and expanding treatment coverage to underserved areas. In countries like India and China, national programs such as the Jal Jeevan Mission and Sponge City initiative are emphasizing wastewater treatment as a public health and environmental priority. Moreover, the demand for decentralized sewage systems in peri-urban regions is also rising, further driving municipal treatment projects. The scale, regulatory mandates, and public funding associated with municipal projects give this segment a clear edge over industrial applications, which are often tailored and smaller in scope. As urban centers expand, municipal sewage treatment will remain the key driver of market growth.