Table of Contents
Overview
New York, NY – December 30, 2025 – The global municipal water market is on a steady growth path, projected to rise from USD 482.3 billion in 2024 to about USD 654.5 billion by 2034, expanding at a 3.1% CAGR between 2025 and 2034. Asia-Pacific leads global demand, accounting for 48.40% of the market, valued at USD 233.4 billion, driven by rapid population growth and urban expansion.
Municipal water refers to treated water supplied by public utilities for daily use across households, commercial buildings, schools, and public facilities. The market spans raw water sourcing, treatment to regulatory standards, distribution, wastewater handling, and system upgrades. Growth is closely tied to aging pipelines, stricter quality regulations, and the need for uninterrupted, safe water access.
Public investment is a major driver. New York allocated USD 78 million to improve water quality infrastructure, underscoring the government’s focus on public health protection. In Beloit, Kansas, an USD 11.4 million low-interest KPWSLF loan— including USD 2.59 million in principal forgiveness—supports system upgrades, part of more than USD 1.5 billion distributed since 1997.
Opportunity is further reinforced by targeted grants. Lawton secured USD 5.125 million in EPA funding plus USD 2 million from state ARPA programs to modernize treatment facilities. In Ontario, USD 3.83 million is enabling water infrastructure expansion for 3,688 new homes.
Large-scale upgrades are also underway. Phoenix received nearly USD 180 million to develop an advanced purification plant processing 8 million gallons per day, lifting total capacity to 12.5 million gallons daily. Across Michigan, more than USD 267 million in state grants is funding storm sewer upgrades, lead service line replacements, and water main repairs to strengthen statewide water resilience.
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Key Takeaways
- The Global Municipal Water Market is expected to be worth around USD 654.5 billion by 2034, up from USD 482.3 billion in 2024, and is projected to grow at a CAGR of 3.1% from 2025 to 2034.
- Municipal Drinking Water Treatment dominates the Municipal Water Market with a 62.8% share, driven by regulatory water quality standards and essential public health needs.
- Residential application holds a 48.3% share in the Municipal Water Market, supported by urban population growth and daily household water consumption patterns.
- The Asia-Pacific Municipal Water Market reached USD 233.4 Bn, supported by expanding public infrastructure needs.
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Report Scope
| Report Features | Description |
|---|---|
| Market Value (2024) | USD 482.3 Billion |
| Forecast Revenue (2034) | USD 654.5 Billion |
| CAGR (2025-2034) | 3.1% |
| Segments Covered | By Type (Municipal Drinking Water Treatment, Municipal Waste Water Treatment), By Application (Residential, Commercial, Industrial) |
| Competitive Landscape | Veolia Environnement S.A., Suez S.A., Xylem Inc., Pentair plc, American Water Works Company, Inc., Evoqua Water Technologies LLC, Kurita Water Industries Ltd., Aquatech International LLC, Calgon Carbon Corporation, Danaher Corporation |
Key Market Segments
By Type Analysis
Municipal drinking water treatment represents the core of the municipal water market, accounting for 62.8% share due to its critical role in protecting public health. This segment focuses on treating raw water to meet regulated safety and quality standards before distribution to communities. Its dominance reflects the non-negotiable need for safe drinking water across cities and towns, making it a continuous and non-discretionary service for local authorities.
Growing concerns about waterborne contaminants, aging treatment infrastructure, and stricter regulatory oversight continue to reinforce investment in drinking water treatment systems. Urban expansion and rising population density further increase reliance on centralized treatment facilities capable of delivering consistent potable water. Unlike other municipal services, drinking water treatment requires uninterrupted operation, routine upgrades, and constant monitoring. These factors provide long-term stability to the segment, supported by regular maintenance activities and modernization programs aimed at ensuring reliable, safe daily water consumption for residential, commercial, and public users.
By Application Analysis
The residential segment dominates the municipal water market by application, holding a 48.3% share due to the essential nature of household water consumption. Municipal water is fundamental for daily residential needs such as drinking, cooking, sanitation, and personal hygiene, making this segment the most stable and predictable source of demand.
Urbanization and suburban expansion continue to strengthen residential reliance on centralized municipal water systems. As populations grow, daily household usage places constant pressure on water distribution networks, requiring continuous supply management, infrastructure maintenance, and quality monitoring. This consistent demand ensures steady operational requirements for municipal utilities.
In addition, rising living standards and greater awareness of water quality at the household level increase dependence on treated municipal water rather than alternative sources. Residential users rely heavily on public systems to deliver safe, regulated water directly to homes. This sustained dependency reinforces the residential segment’s long-term importance and its leading position within the municipal water market.
Regional Analysis
Asia-Pacific dominates the municipal water market with a 48.40% share valued at USD 233.4 billion, driven by rapid urbanization, dense populations, and rising demand for safe municipal water services. Expanding metropolitan areas and constant pressure on public utilities make a reliable water supply a critical public service across urban and semi-urban regions.
North America represents a mature market, supported by well-established distribution networks and steady demand from residential, commercial, and industrial users. The region prioritizes system reliability, service continuity, and compliance with water quality standards, ensuring stable long-term operations.
Europe’s municipal water market is shaped by structured public utilities and strong regulatory frameworks. Consistent demand stems from essential water services supporting households, public institutions, and urban infrastructure.
The Middle East & Africa market is influenced by growing cities and rising awareness of dependable municipal water access. Municipal systems play a key role in supporting population growth and improving living standards.
Latin America shows steady progress, driven by urban population growth and the need for improved public water distribution to meet essential community needs.
Top Use Cases
- Safe Drinking Water for Homes: Municipal water is treated and delivered to homes so families can drink clean water without getting sick. This water is purified to remove harmful contaminants before it reaches taps in houses and apartments.
- Everyday Household Use: People use municipal water every day for cooking, bathing, cleaning dishes, washing clothes, and other chores. It makes daily life healthy and convenient by ensuring clean water is always available.
- Sanitation and Hygiene Services: Municipal water supports sanitation, which helps keep toilets, drains, and public toilets running. Clean water used for washing and sanitation reduces diseases and promotes better health in communities.
- Firefighting and Public Safety: Cities rely on municipal water systems to supply high-pressure water to fire hydrants, helping firefighters quickly control fires and protect buildings, people, and infrastructure.
- Industrial Operations: Many factories and businesses need municipal water for making products, cooling machines, or cleaning equipment. Treated water from city systems supports these activities safely and consistently.
- Support for Public Services: Municipal water is used in schools, hospitals, parks, and street cleaning services. Reliable public water access keeps cities functioning well and helps maintain clean, healthy public spaces.
Recent Developments
- In May 2025, Veolia signed a deal to buy the remaining 30% stake in its subsidiary Veolia Water Technologies and Solutions (WTS) from CDPQ. This means Veolia now fully owns this water technology unit, helping it simplify operations and strengthen its ability to deliver advanced water treatment and solutions globally, especially in the U.S. where water treatment needs are growing.
- In December 2024, Xylem completed the acquisition of Heusser Water Solutions AG, a long-time partner in Switzerland. This move strengthens Xylem’s presence in European water systems and expands its ability to provide pumping and water management solutions to utilities and public services. Xylem helps cities and communities deliver clean water and manage water infrastructure.
- In February 2024, SUEZ won a contract to support the Buaran III Water Treatment Plant in Jakarta. The company will supply key water treatment equipment and technical advice, helping boost a reliable, clean water supply for the city’s residents. This new plant is expected to add 260,000 m³/day of treated water capacity once finished.
Conclusion
The municipal water market plays a vital role in supporting public health, urban development, and economic stability. Reliable access to clean and treated water remains a core responsibility of local governments and public utilities worldwide. Ongoing urbanization, population growth, and rising expectations for service quality continue to increase pressure on existing water infrastructure.
As systems age, the need for upgrades, efficient management, and sustainable operations becomes more critical. Municipal water services also support households, businesses, public institutions, and emergency services, making them essential to daily life. Long-term focus on infrastructure resilience, regulatory compliance, and service continuity will remain central to ensuring safe and dependable water access for growing communities.
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