Europe Water and Wastewater Treatment Market Size, Share, and Trends - Forecast to 2036 | PFAS Compliance, Digitalization, and Water Reuse Propel Growth to USD 142.31 Billion at 5.2% CAGR

Dublin, Oct. 27, 2026 -- "Europe Water and Wastewater Treatment Market Size, Share, and Industry Analysis - Forecast to 2036" has been added to ResearchAndMarkets.com's offering.

The Europe water and wastewater treatment market was valued at USD 81.64 billion in 2025 and is estimated to reach USD 85.76 billion in 2026. The market is projected to grow to USD 142.31 billion by 2036, representing a CAGR of 5.2% during the 2026-2036 forecast period. The report examines regulatory developments, funding requirements, treatment technologies, service trends, country-level investment programs, competitive forces, and growth opportunities across Europe.

Market expansion is being driven primarily by stricter water quality and wastewater treatment requirements. The recast Urban Wastewater Treatment Directive (EU) 2024/3019, effective since 1 January 2025, extends collection and secondary treatment obligations to agglomerations of 1,000 population equivalent. It also phases in tertiary nitrogen and phosphorus removal, requires quaternary micropollutant treatment at the largest facilities by 2045, and establishes a national energy neutrality objective for the sector by 2045.

PFAS compliance is another major investment catalyst. Since 12 January 2026, EU member states have been required to meet the PFAS limits established under the revised Drinking Water Directive. Germany is scheduled to introduce a stricter limit for four PFAS from January 2028. Rising public health concerns are also supporting demand for disinfection, UV treatment, advanced monitoring, and water quality analytics. According to the European Centre for Disease Prevention and Control, the EU/EEA notification rate for Legionnaires' disease increased from 1.3 per 100,000 people in 2015 to 3.2 in 2023.

Europe has a mature water infrastructure base, directing investment toward asset renewal, regulatory upgrades, leakage reduction, and operational efficiency rather than large-scale capacity expansion. EU water sector value added reached EUR 111.7 billion in 2022, while the industry supported 1.6 million jobs. Europe also accounts for 40% of global water technology patents. In England and Wales, Ofwat approved a record GBP 104 billion spending allowance for 2025-2030, including GBP 60 billion in base expenditure and GBP 44 billion for enhancements.

Funding remains a significant market restraint. The European Commission estimates that implementation of current EU water legislation faces an annual financing gap of at least EUR 23 billion. Tariff constraints, elevated energy costs, aging networks, and competing infrastructure priorities may delay projects. A pending legal challenge involving producer responsibility rules for pharmaceutical and cosmetics manufacturers also creates uncertainty around financing for quaternary treatment.

Infrastructure deficiencies remain particularly important in southern, central, and eastern Europe. Italy reported that 42.4% of drinking water entering municipal networks was lost in 2022. The lower population equivalent threshold under EU rules also brings thousands of smaller agglomerations into scope, increasing demand for treatment upgrades while intensifying competition for capital allocated to sewer expansion and network repair.

Technology and Service Opportunities

Demand is increasing for energy-efficient treatment, advanced aeration, anaerobic digestion, biogas production, heat recovery, process control, and digital monitoring. Switzerland is upgrading approximately 130 of its 700 treatment plants with ozonation or activated carbon systems at an estimated cost of CHF 1.2 billion. Similar investment is expected across the EU as micropollutant treatment requirements take effect.

Water reuse also presents substantial growth potential. Only 2.4% of treated EU wastewater currently receives additional treatment for reuse, according to the European Commission. The Water Reuse Regulation (EU) 2020/741, increasing water stress, and stricter industrial discharge permits are expected to accelerate adoption. Other key trends include PFAS removal, carbon reactivation and destruction services, smart metering, leak detection, automated process control, membrane bioreactors, and wastewater-based energy recovery.

Wastewater treatment is expected to account for the larger market share in 2026 and record the higher CAGR through 2036. Growth will be supported by nutrient removal, micropollutant treatment, sludge management, and energy neutrality requirements. Water treatment demand will remain resilient as utilities address PFAS compliance, drinking water quality, and Legionella risk.

Operation & maintenance services are projected to hold the largest share of the market in 2026 due to Europe's extensive installed base of plants and networks. Process control & automation is expected to grow at the highest CAGR, supported by monitoring obligations, leakage reduction targets, and energy audits. Membrane separation and filtration is the largest treatment technology category, while membrane bioreactors are expected to post the fastest growth as utilities and industrial operators pursue compact systems capable of producing high-quality water for reuse.

Municipal applications are expected to retain the larger share in 2026, supported by EU compliance deadlines, U.K. water company investment, and the replacement of aging infrastructure. Industrial applications are projected to grow faster as manufacturers respond to water scarcity and tighter discharge requirements. Pharmaceuticals and chemicals represent the largest industrial segment, while semiconductors are expected to record the strongest growth as new fabrication plants and data centers are developed across Europe.

Country-Level Market Outlook

Germany is expected to lead the Europe water and wastewater treatment market in 2026. The country operates more than 9,100 wastewater treatment plants and 594,335 kilometers of sewer lines, according to BDEW. National sludge regulations will also require plants serving more than 100,000 population equivalent to recover phosphorus from 2029.

France and the U.K. are projected to rank second and third. France benefits from extensive outsourced water service operations and its Plan Eau objective of supporting 1,000 reuse projects by 2030. U.K. demand is underpinned by the 2025-2030 investment cycle, with storm overflow reduction and river quality among the leading priorities. Italy is concentrating on leakage reduction and network rehabilitation supported by EU recovery funding.

Poland is expected to record the highest country-level CAGR during the forecast period as EU cohesion funding supports sewer connections and treatment capacity. Contracts signed by March 2026 under the FEnIKS water and sewage measure were valued at almost PLN 5 billion and will finance 30 treatment plants and connections for 300,000 residents. Spain is forecast to achieve the second-highest growth rate, driven by drought resilience, desalination, water reuse, and digitalization under its PERTE program. Switzerland, Sweden, Belgium, and Denmark will focus primarily on micropollutant removal, sludge processing, and energy efficiency.

Competitive Landscape

The market remains fragmented across global operators, regulated utilities, technology providers, chemical suppliers, and infrastructure companies. Competition is shaped by long-term concessions, delegated management contracts, technology breadth, regulatory expertise, local service capacity, and access to financing.

Recent developments include Veolia's acquisition of the remaining stake in Water Technologies and Solutions in June 2025, Kemira's February 2026 agreement to acquire German coagulant producer SIDRA Wasserchemie, and Veralto's completion of the In-Situ acquisition in January 2026. Financing activity includes United Utilities' GBP 11.5 billion investment program for 2025-2030 and a EUR 500 million European Investment Bank loan supporting SUEZ projects in France.

Companies profiled in the report include SUEZ SA, Veolia Environnement SA, Xylem Inc., DuPont de Nemours, Inc., 3M Company, Pentair plc, United Utilities Group PLC, Kingspan Group plc, Dow Inc., BASF SE, Veralto Corporation, and Kemira Oyj. The report supports market entry, product development, partnership, and investment decisions by assessing market forecasts, regulatory impacts, high-growth technologies, country opportunities, competitive positioning, acquisitions, contracts, and financing trends.

Key Topics Covered

1. Introduction
1.1. Market Definition & Scope
1.2. Currency & Limitations
1.2.1. Currency
1.2.2. Limitations

2. Research Methodology
2.1. Research Approach
2.2. Data Collection & Validation
2.2.1. Secondary Research
2.2.2. Primary Research
2.3. Market Assessment
2.3.1. Market Size Estimation
2.3.2. Bottom-Up Approach
2.3.3. Top-Down Approach
2.3.4. Growth Forecast
2.4. Assumptions for the Study

3. Executive Summary
3.1. Market Overview
3.2. Market Analysis, by Type
3.3. Market Analysis, by Offering
3.4. Market Analysis, by Application
3.5. Market Analysis, by Country
3.6. Competitive Analysis

4. Market Insights
4.1. Overview
4.2. Factors Affecting Market Growth
4.2.1. Drivers
4.2.1.1. Stringent Water Treatment Regulations
4.2.1.2. Increasing Prevalence of Waterborne Diseases
4.2.2. Restraints
4.2.2.1. High Installation, Maintenance, and Operating Costs
4.2.3. Opportunities
4.2.3.1. Growing Demand for Energy-Efficient and Advanced Water Treatment Technologies
4.2.4. Challenges
4.2.4.1. Lack of Waste Collection & Treatment Infrastructure
4.3. Regulatory Analysis
4.3.1. Recast Urban Wastewater Treatment Directive (EU) 2024/3019
4.3.2. Recast Drinking Water Directive (EU) 2020/2184
4.3.3. Water Reuse Regulation (EU) 2020/741
4.3.4. PFAS Regulation
4.3.5. EU Water Resilience Strategy
4.3.6. European Investment Bank Financing
4.3.7. Ofwat 2025-2030 Price Review (PR24) and U.K. Water Reform
4.4. Porter's Five Forces Analysis
4.4.1. Bargaining Power of Buyers
4.4.2. Bargaining Power of Suppliers
4.4.3. Threat of Substitutes
4.4.4. Threat of New Entrants
4.4.5. Degree of Competition
4.5. Value Chain Analysis
4.5.1. Raw Materials and Components
4.5.2. Technology and Equipment Manufacturing
4.5.3. Design, Engineering, and Construction
4.5.4. Operation and Maintenance
4.5.5. End Users

5. Europe Water and Wastewater Treatment Market Assessment, by Type
5.1. Overview
5.2. Wastewater Treatment
5.3. Water Treatment

6. Europe Water and Wastewater Treatment Market Assessment, by Offering
6.1. Overview
6.2. Treatment Technologies
6.2.1. Membrane Separation and Filtration
6.2.1.1. Reverse Osmosis (RO) Membranes
6.2.1.2. Ultrafiltration (UF) Membranes
6.2.1.3. Microfiltration (MF) Membranes
6.2.1.4. Nanofiltration (NF) Membranes
6.2.1.5. Other Filtration Technologies
6.2.2. Sludge Management Technology
6.2.3. Activated Sludge
6.2.4. Clarification
6.2.5. Chlorination
6.2.6. Industrial Demineralization
6.2.7. Membrane Bioreactor (MBR)
6.2.8. UV and Ozone
6.2.9. Dissolved Air Flotation
6.2.10. Other Treatment Technologies
6.3. Treatment Chemicals
6.4. Process Control & Automation
6.5. Design, Engineering, and Construction Services
6.6. Operation & Maintenance Services

7. Europe Water and Wastewater Treatment Market Assessment, by Application
7.1. Overview
7.2. Municipal Applications
7.3. Industrial Applications
7.3.1. Food & Beverages
7.3.1.1. Food and Beverage Market, by Type
7.3.1.1.1. Food and Beverages Wastewater Treatment Market
7.3.1.1.2. Food and Beverages Water Treatment Market
7.3.1.2. Food and Beverages Market, by Offering
7.3.1.2.1. Treatment Technologies Market
7.3.1.2.2. Treatment Chemicals Market
7.3.1.2.3. Process Control & Automation Market
7.3.1.2.4. Design, Engineering, and Construction Services Market
7.3.1.2.5. Operation & Maintenance Services Market
7.3.1.3. Food and Beverages Market, by Food Category
7.3.1.3.1. Dairy
7.3.1.3.2. Cheese
7.3.1.3.3. Ice Cream
7.3.1.3.4. Non-Alcoholic Beverages
7.3.1.3.5. Prepared Food
7.3.1.3.6. Powdered Food
7.3.1.3.7. Alcoholic Beverages
7.3.1.3.8. Meat, Poultry, and Seafood
7.3.1.3.9. Fruits and Vegetables
7.3.1.3.10. Other Clusters/Sub-Industries
7.3.2. Pharmaceuticals and Chemicals
7.3.3. Power Generation
7.3.4. Pulp and Paper
7.3.5. Oil & Gas
7.3.6. Mining
7.3.7. Petrochemical
7.3.8. Semiconductors
7.3.9. Other Industrial Applications

8. Europe Water and Wastewater Treatment Market Assessment, by Country
8.1. Overview
8.2. Germany
8.3. Spain
8.4. France
8.5. U.K.
8.6. Italy
8.7. Poland
8.8. Switzerland
8.9. Sweden
8.10. Belgium
8.11. Denmark
8.12. Rest of Europe

9. Competition Analysis
9.1. Overview
9.2. Key Growth Strategies
9.3. Competitive Benchmarking
9.4. Competitive Dashboard
9.4.1. Industry Leaders
9.4.2. Market Differentiators
9.4.3. Vanguards
9.4.4. Emerging Companies
9.5. Market Ranking, by Key Players

10. Company Profiles
Company Overview, Financial Overview, Product Portfolio, Strategic Developments, SWOT Analysis
10.1. SUEZ SA (France)
10.2. Veolia Environnement SA (France)
10.3. Xylem Inc. (U.S.)
10.4. DuPont de Nemours, Inc. (U.S.)
10.5. 3M Company (U.S.)
10.6. Pentair plc (U.K.)
10.7. United Utilities Group PLC (U.K.)
10.8. Kingspan Group plc (Ireland)
10.9. Dow Inc. (U.S.)
10.10. BASF SE (Germany)
10.11. Veralto Corporation (U.S.)
10.12. Kemira Oyj (Finland)

11. Appendix
11.1. Available Customization
11.2. Related Reports

List of Tables [129]

List of Figures [47]

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