Water Recycle and Reuse Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Filtration Systems, Membrane Separation, Reverse Osmosis Systems, Disinfection and Chemical Treatment, Activated Sludge Systems, Others), By Capacity (Less than 25,000 liters/day, 25,000–50,000 liters/day, 50,001–100,000 liters/day, more than 100,000 liters/day), By End User (Power Generation, Oil & Gas, Manufacturing, Residential, Food & Beverage, Pharmaceutical, Others) and Region Forecast 2020-2031

Water Recycle and Reuse Market size was valued at US$ 18,500.0 million in 2024 and is expected to reach US$ 38,167.0 million by 2031, growing at a significant CAGR of 10.9% from 2025-2031. Moreover, the U.S. Water Recycle and Reuse Market is projected to grow at 11% CAGR by 2031. The market encompasses the technologies, systems, and services involved in treating wastewater and reclaiming it for beneficial purposes such as agricultural irrigation, industrial processes, groundwater recharge, and even potable applications. This market includes a broad range of processes such as membrane filtration, reverse osmosis, biological treatment, and advanced oxidation. Municipalities, industries, and commercial sectors are key end users aiming to reduce water consumption and environmental impact. The market plays a crucial role in ensuring water sustainability, especially in regions facing scarcity or rapid urbanization.

The global water recycles, and reuse market is experiencing significant growth due to increased water stress, rising industrial demand, and growing environmental awareness. Rapid urban expansion, population growth, and climate change are pressuring water resources, prompting governments and industries to adopt reuse strategies as part of long-term sustainability efforts. Advanced treatment technologies and regulatory frameworks are enabling the safe and efficient reuse of treated wastewater, expanding its application across sectors. Regions such as North America, the Middle East, and Asia-Pacific are actively investing in decentralized and large-scale water recycling infrastructure. With mounting concerns over water availability and regulatory mandates to reduce freshwater withdrawal, the market is positioned as a critical component of global water resource management.

Facts & Figures

• In fact, Deepwater Agriculture accounts for nearly 70% of global freshwater use, making it a major target for treated wastewater reuse, especially in water-stressed regions.
• Up to 95% of wastewater in developed nations is collected, but only about 20% is treated and reused, highlighting significant untapped potential.
• Israel recycles nearly 90% of its wastewater, making it the global leader in water reuse, with the majority used in agriculture.
• Industrial facilities can reduce freshwater withdrawal by up to 75% through closed-loop water reuse systems and Zero Liquid Discharge (ZLD) practices.

Key Developments:

• In July 2025, the Rio Grande International Study Center (RGISC) initiated a feasibility study in Laredo, Texas, to explore wastewater recycling solutions. Funded by the North American Development Bank, the study aims to address severe water scarcity by designing a pilot water, energy, and resource recovery facility.
• In 2025, Halliburton Labs partnered with Espiku to pilot advanced modular water recycling technology in the Permian Basin. The collaboration focuses on treating produced water using low-pressure thermal cycles, density separation, and evaporation to distill reusable water.

Water Recycle and Reuse Market Segmentation:

Based on the product type:

• Filtration Systems
• Membrane Separation
• Reverse Osmosis Systems
• Disinfection and Chemical Treatment
• Activated Sludge Systems
• Others

The Reverse Osmosis (RO) systems are anticipated to lead the market, driven by their superior efficiency in removing dissolved salts, microorganisms, and chemical contaminants from wastewater. RO systems are widely adopted across both municipal and industrial sectors due to their ability to produce high-quality reclaimed water suitable for reuse in critical applications such as cooling, process water, and even indirect potable use. The growing demand for advanced purification in water-stressed regions and industries with strict discharge norms has significantly increased the deployment of RO units.

Additionally, continuous innovation in energy recovery devices and membrane materials is enhancing cost-effectiveness and operational reliability, further boosting their adoption. As water reuse becomes essential to combat scarcity and meet regulatory standards, RO technology is positioned as the most dependable and scalable solution in the global market landscape.

Based on the capacity:

• Less than 25,000 liters/day
• 25,000–50,000 liters/day
• 50,001–100,000 liters/day
• More than 100,000 liters/day

Among the capacity segments, the “More than 100,000 liters/day” category is anticipated to dominate the market, primarily due to the rising demand from large-scale municipal and industrial users. Urban water utilities, power plants, oil refineries, and manufacturing hubs require high-capacity treatment systems to manage vast volumes of wastewater efficiently. This segment is particularly driven by expanding smart cities, mega-industrial clusters, and zero liquid discharge mandates in water-stressed regions. Governments and corporations are investing in centralized facilities capable of treating over 100,000 liters daily to ensure long-term water sustainability and regulatory compliance.

Additionally, these high-capacity systems often incorporate advanced technologies like reverse osmosis and membrane bioreactors, ensuring reliable and high-quality water output. As water reuse becomes an integral part of infrastructure planning and environmental policy, the large-capacity segment stands out as the backbone of scalable and impactful water recycling strategies worldwide.

Based on the end user:

• Power Generation
• Oil & Gas
• Manufacturing
• Residential
• Food & Beverage
• Pharmaceutical
• Others

Among the end users, the power generation sector is anticipated to hold the leading share in the market, driven by its substantial water consumption and growing regulatory pressure to reduce environmental impact. Thermal and nuclear power plants require vast quantities of water for cooling, steam generation, and other operations, making water reuse an essential strategy to minimize freshwater withdrawals. With increasing stress on local water resources and stricter discharge norms, many power utilities are adopting advanced wastewater treatment and recycling systems to maintain operational efficiency and environmental compliance.

Moreover, the integration of zero liquid discharge (ZLD) practices in the power sector is further boosting the demand for high-capacity water reuse solutions. As the global energy demand continues to rise especially in developing economies power producers are prioritizing water sustainability, positioning this sector as a dominant force in driving long-term growth of the market.