Press release
Decentralized Water Treatment Market to Reach US$ 67.33 Billion by 2032, Growing at 14.32% CAGR, Europe Leads with 30% Share, Key Companies Veolia, SUEZ, Xylem, Fluence
Leander, Texas and Tokyo, Japan - Feb.6.2026Global decentralized water treatment market size reached US$ 23.08 billion in 2024 and is expected to reach US$ 67.33 billion by 2032, growing with a CAGR of 14.32% during the forecast period 2025-2032.
The market is driven by increasing water scarcity and the need for localized wastewater management solutions. Technologies such as membrane filtration, biological treatment, and modular treatment systems dominate adoption. Residential communities, industrial facilities, and commercial establishments are primary end-users. Government regulations on water reuse, infrastructure limitations in remote areas, and demand for sustainable water management fuel market growth.
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Decentralized Water Treatment Market: Competitive Intelligence
Fluence Corporation, Veolia Environnement S.A., Suez S.A., Xylem Inc., Ecolab Inc., A.O. Smith Corporation, Pentair plc, and Aquatech International LLC
The Decentralized Water Treatment Market is gaining strong traction as municipalities, industries, and communities seek flexible, cost-effective, and sustainable alternatives to centralized water infrastructure. Companies such as Fluence Corporation, Veolia Environnement, Suez, Xylem, Ecolab, A.O. Smith Corporation, Pentair, and Aquatech International are shaping the market by delivering modular, scalable water and wastewater treatment solutions. These systems support applications including municipal water supply, industrial wastewater reuse, residential water purification, remote community treatment, and emergency water management, enabling faster deployment and localized control.
The competitive strength of the Decentralized Water Treatment Market lies in the combination of global water expertise and modular technology innovation. Veolia, Suez, and Xylem leverage extensive engineering capabilities, digital water platforms, and operational experience to deliver high-performance decentralized systems with real-time monitoring and optimization. Fluence Corporation and Aquatech International specialize in packaged and containerized treatment solutions designed for rapid installation and efficient operation in challenging environments. Meanwhile, Ecolab, A.O. Smith, and Pentair focus on advanced filtration, disinfection, and point-of-use technologies that enhance water quality and safety at the local level. Together, these companies strengthen market adoption, support water resilience, and position decentralized water treatment as a key solution to global water scarcity and infrastructure challenges.
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Fund Raisings
✅ January 2026 - Fluence Corporation (United States)
Fluence secured strategic investment to expand its decentralized and modular water treatment solutions. The funding supports advanced membrane bioreactor (MBR) systems, smart water platforms, and rapid-deployment treatment units for municipal and industrial applications.
✅ December 2025 - Veolia Environnement S.A. (France)
Veolia raised growth capital to strengthen its decentralized water and wastewater treatment offerings. The investment focuses on compact treatment plants, digital monitoring, and energy-efficient technologies for remote and urban applications.
✅ November 2025 - SUEZ (France)
SUEZ attracted fresh investment to scale its decentralized water treatment technologies for industrial reuse and community-level water management. The funding supports advanced filtration, automation, and water reuse systems.
✅ October 2025 - Xylem Inc. (United States)
Xylem secured capital to expand its decentralized treatment and smart water infrastructure portfolio. The investment emphasizes IoT-enabled treatment units, real-time analytics, and sustainable water solutions for utilities and industries.
✅ September 2025 - Aquatech International LLC (United States)
Aquatech raised funding to advance decentralized and zero-liquid-discharge (ZLD) water treatment systems. The investment supports industrial water reuse, modular desalination units, and high-efficiency treatment technologies.
Product Launches & Strategic Partnerships
✅ January 2026 - Xylem Inc. (United States / Global)
Xylem launched a new decentralized water treatment system designed for remote communities and commercial facilities. The solution integrates modular filtration, IoT-enabled monitoring, and low-energy operation to improve water quality and reduce operational costs.
✅ December 2025 - Veolia Water Technologies (France / Global)
Veolia introduced advanced decentralized wastewater treatment units tailored for industrial and municipal applications. The systems focus on resource recovery, energy efficiency, and compliance with stringent discharge standards.
✅ October 2025 - SUEZ (France / Global)
SUEZ released next-generation compact water treatment platforms incorporating real-time analytics and adaptive process control. The technology enhances treatment performance for drinking water and reuse applications in distributed settings.
✅ August 2025 - Aquatech International (United States / Global)
Aquatech partnered with regional governments and private developers to deploy scalable decentralized water solutions. The collaboration emphasizes sustainability, rapid deployment, and support for underserved regions.
Mergers & Acquisitions
✅ January 2026 - Veolia (France)
Veolia acquired a decentralized water and wastewater treatment technology provider to expand its localized water solutions portfolio. The acquisition strengthens Veolia's capabilities in modular treatment systems, water reuse, and sustainable infrastructure for communities and industries.
✅ December 2025 - SUEZ (France)
SUEZ completed the acquisition of a compact water treatment systems company focused on decentralized applications. The deal enhances SUEZ's offerings in on-site water treatment, smart monitoring, and resource-efficient water management.
✅ October 2025 - Xylem Inc. (United States)
Xylem expanded its decentralized water treatment portfolio through the acquisition of a digital water and treatment solutions firm. The acquisition reinforces Xylem's position in smart, scalable, and energy-efficient water treatment systems for municipal and industrial users.
Segments Covered in the Decentralized Water Treatment Market:
By Technology
The market is segmented into Membrane Filtration 35%, Biological Treatment 25%, Disinfection (UV, Chlorination, Ozonation) 20%, Chemical Treatment 10%, and Others 10%. Membrane filtration dominates due to high efficiency in removing contaminants and suitability for modular, small-scale systems, while biological and disinfection technologies are widely adopted for wastewater reuse and safe drinking water supply.
By System Type
System types include Packaged Treatment Plants 40%, Containerized Systems 30%, Point-of-Use (POU) & Point-of-Entry (POE) Systems 20%, and Others 10%. Packaged and containerized systems lead adoption due to rapid installation, mobility, and suitability for remote and underserved locations.
By Water Source
Water sources comprise Surface Water 30%, Groundwater 35%, Municipal Wastewater 20%, and Industrial Effluents 15%. Groundwater dominates due to widespread use in rural and peri-urban areas, while municipal wastewater treatment is expanding with rising focus on water reuse and circular water management.
By Application
Applications include Drinking Water Treatment 35%, Wastewater Treatment & Reuse 30%, Industrial Water Treatment 20%, and Others (Emergency & Disaster Relief, Agriculture) 15%. Drinking water applications lead due to increasing demand for safe water access, while wastewater reuse is gaining momentum driven by water scarcity and sustainability initiatives.
By End-User
End-users comprise Residential Communities 30%, Municipalities 30%, Industrial & Commercial Facilities 25%, and Others (Construction Sites, Military Camps) 15%. Municipal and residential users dominate adoption for decentralized supply solutions, while industrial and commercial users increasingly deploy these systems for compliance, cost savings, and water recycling.
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Regional Analysis
North America - 28% Share
North America holds around 28% share, driven by aging centralized infrastructure, water scarcity concerns, and strict environmental regulations. The U.S. and Canada are increasingly adopting decentralized water treatment systems for residential, commercial, and industrial applications, particularly in remote and peri-urban areas.
Europe - 30% Share
Europe leads with approximately 30% share, supported by strong regulatory frameworks, sustainability initiatives, and emphasis on water reuse and recycling. Germany, France, the UK, and the Netherlands are key markets, with growing deployment of decentralized wastewater and greywater treatment systems.
Asia Pacific - 27% Share
Asia Pacific accounts for nearly 27% share due to rapid urbanization, population growth, and limited centralized sewage infrastructure in developing regions. China, India, Southeast Asia, and Australia are driving adoption of decentralized water treatment solutions for municipal, industrial, and rural applications.
Latin America - 8% Share
Latin America represents about 8% share, fueled by infrastructure gaps, water pollution challenges, and increasing investments in water management. Brazil, Mexico, and Chile are emerging markets for decentralized water treatment systems in residential and industrial sectors.
Middle East & Africa - 7% Share
Middle East & Africa holds around 7% share, with growth supported by acute water scarcity, desalination integration, and off-grid water treatment needs. GCC countries, South Africa, and parts of Africa are adopting decentralized systems to improve water access and reuse.
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✅ Competitive Landscape
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✅ Sustainability Impact Analysis
✅ KOL / Stakeholder Insights
✅ Consumer Behavior & Demand Analysis
✅ Import-Export Data Monitoring
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