India Water Treatment Market Size & Share Analysis - Emerging Trends, Growth Opportunities, Competitive Landscape, and Forecasts (2025 - 2032)

India Water Treatment Market Trends & Drivers

Expansion of Desalination Plants Is a Key Trend

India is increasingly turning to desalination to tackle freshwater scarcity, especially in coastal areas. With rapid urbanization and climate change affecting traditional water sources, desalination is emerging as a reliable alternative for providing potable water. Several states, including Tamil Nadu, Maharashtra, and Gujarat, are investing in desalination plants to supplement municipal water supplies.

Government initiatives and public-private partnerships are driving this expansion, ensuring that desalination projects are developed efficiently. Advanced technologies such as reverse osmosis and multi-effect distillation are being incorporated to improve the efficiency and sustainability of desalination plants. These technologies help reduce energy consumption and operational costs, making desalination more viable.

Apart from municipal use, industries such as power generation, pharmaceuticals, and petrochemicals are also increasing their dependence on desalinated water. Coastal cities facing acute water shortages are prioritizing desalination projects to ensure a stable water supply for residential and commercial needs.

For instance, in August 2023, the Tamil Nadu government initiated the Perur desalination plant near Chennai, designed to produce 400 million liters per day (MLD) upon its expected completion in December 2026.

Government Initiatives and Investments Are Boosting the Growth

The Indian government's proactive initiatives and substantial investments are significantly driving the water treatment market. Various programs have been launched to enhance water quality, improve sanitation, and ensure safe drinking water accessibility. One of the most impactful initiatives is the nationwide focus on clean water supply through rural and urban infrastructure development.

Government-backed programs emphasize wastewater treatment, sewage management, and the rejuvenation of water bodies. Large-scale projects aim to reduce pollution in major rivers and implement advanced water purification systems. The promotion of sustainable water management practices, including rainwater harvesting and groundwater recharge, further supports these efforts.

For instance, the National Mission for Clean Ganga (NMCG), initiated in 2014 under the Namami Gange Programme, exemplifies this commitment. By December 2023, NMCG had sanctioned 454 projects worth ₹38,385 crore, with 270 projects completed, enhancing sewage treatment capacity by 6,208 million liters per day (MLD) and laying 5,272 km of sewer networks.

High Percentage of Untreated Wastewater Pose Challenges

A significant challenge in India's water treatment landscape is the high proportion of untreated wastewater. Recent government statistics reveal that 62.5% of urban wastewater remains untreated or is only partially treated, leading to severe environmental pollution and health hazards. This shortfall is attributed to inadequate infrastructure, limited funding, and rapid urbanization outpacing the development of treatment facilities. Addressing this issue requires substantial investment in wastewater treatment plants, upgrading existing infrastructure, and implementing stringent regulatory frameworks to ensure compliance and sustainability.

India Water Treatment Market Segmentation and Category Analysis

Type of Treatment Analysis

• Membrane technology dominates the market with a share of 55% in 2024 as well as exhibiting the highest CAGR in the coming years. This is due to its high efficiency, reliability, and widespread adoption across municipal, industrial, and commercial sectors.
• Technologies such as Reverse Osmosis (RO), Ultrafiltration (UF), Microfiltration (MF), and Nanofiltration (NF) are extensively used for removing contaminants, dissolved solids, and pathogens from water, making them highly preferred solutions.

The types analyzed in this report are:

• Physical Treatment
  • Sedimentation
  • Filtration
• Chemical Treatment
  • Coagulation
  • Chlorination
  • Ozonation
• Biological Treatment
  • Aerobic
  • Anaerobic
• Membrane Technology (Largest and Fastest-Growing Category)
  • Reverse Osmosis
  • Ultrafiltration
  • Microfiltration
  • Nanofiltration

Application Analysis

• Municipal water treatment dominates the market, driven by the rising urban population, increasing demand for safe drinking water, and government-backed infrastructure projects. With rapid urbanization and industrialization, municipalities across the country are investing heavily in water purification plants, sewage treatment facilities, and smart water management systems.
• Programs like the Jal Jeevan Mission (JJM) and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have significantly boosted the installation of advanced water filtration, disinfection, and distribution systems.
• Furthermore, municipal bodies are increasingly adopting IoT-based monitoring systems to enhance efficiency and ensure compliance with Bureau of Indian Standards (BIS) and Central Pollution Control Board (CPCB) regulations. Given that a significant portion of India's population relies on municipal water supply, this segment remains the largest in the market.

The applications analyzed in this report are:

• Municipal Water Treatment (Largest Category)
• Industrial Water Treatment
• Agricultural Water Treatment
• Desalination Plants (Fastest-Growing Category)
• Others

End User Industry Analysis

• The industrial sector is the fastest-growing segment, driven by stringent environmental regulations, rising industrialization, and the need for water recycling and reuse. Industries such as power generation, pharmaceuticals, textiles, and food processing require large volumes of treated water for manufacturing and processing.
• With increasing concerns over water scarcity, many industries are adopting Zero Liquid Discharge (ZLD) systems, effluent treatment plants (ETPs), and membrane-based filtration technologies to minimize wastewater discharge.
• Additionally, industrial parks and manufacturing hubs are investing in smart water management solutions and IoT-enabled monitoring systems to optimize water usage. Government policies mandating industries to treat and recycle wastewater are further accelerating the adoption of advanced treatment solutions, making the industrial sector the fastest-growing end-user segment in the market.

The end user industry analyzed in this report are:

• Municipal Authorities (Largest Category)
• Industrial Sector (Fastest-Growing Category)
• Commercial
• Residential
• Others

Equipment & Technology Analysis

• Desalination systems are the fastest-growing segment, driven by water scarcity, urbanization, and increasing reliance on seawater desalination in coastal regions. With many Indian states, including Tamil Nadu, Maharashtra, and Gujarat, investing in large-scale desalination plants, the adoption of reverse osmosis (RO) and multi-effect distillation (MED) technologies is surging.
• Industrial sectors, especially power plants and refineries, are also turning to desalination to secure a stable water supply. Additionally, advancements in energy-efficient and sustainable desalination technologies, along with government-backed public-private partnerships (PPP), are further accelerating growth.

These equipment and technology are included in the report:

• Filtration Systems (Largest Category)
• Disinfection Technologies
• Desalination Systems (Fastest-Growing Category)
• Chemical Treatment Systems
• Sludge Treatment Systems
• Others

Services Analysis

• Installation & maintenance services dominate the market due to the high demand for setting up and maintaining water treatment plants across municipal, industrial, and residential sectors.
• Water treatment facilities, including filtration units, desalination plants, sewage treatment plants (STPs), and effluent treatment plants (ETPs), require regular maintenance to ensure optimal performance and compliance with government regulations.
• With the rising adoption of advanced treatment technologies such as reverse osmosis (RO), ultrafiltration (UF), and zero liquid discharge (ZLD) systems, the need for long-term maintenance contracts and periodic system upgrades is increasing.

These services have been analyzed:

• Plant Design & Engineering
• Installation & Maintenance (Largest Category)
• Consulting & Training
• Water Quality Testing & Monitoring (Fastest-Growing Category)
• Others

India Water Treatment Market Geographical Analysis

• North India dominates the market due to its high population density, industrial growth, and increasing urbanization. Major states like Uttar Pradesh, Delhi, Punjab, and Haryana are heavily dependent on water treatment solutions for municipal supply, industrial processes, and wastewater management.
• The Yamuna and Ganga river pollution levels have driven large-scale investments in sewage treatment plants (STPs) and effluent treatment plants (ETPs) under initiatives like the National Mission for Clean Ganga (NMCG).
• Additionally, Delhi NCR faces acute water scarcity, leading to a rise in water recycling, rainwater harvesting, and desalination projects. Agricultural water consumption in Punjab and Haryana has also increased demand for efficient irrigation water treatment.
• The region’s industrial hubs, including Noida, Gurugram, and Ludhiana, require advanced filtration and chemical treatment systems, further strengthening North India's position as the largest regional market.

The regions analyzed in this report are:

• North (Largest Region)
• South (Fastest-Growing Region)
• East
• West

India Water Treatment Market Competitive Landscape

The Indian water treatment market is fragmented in nature with numerous players. These companies offer a wide range of solutions, from municipal water treatment to industrial effluent management, leveraging advanced technologies to meet diverse needs. Key strategies include technological innovation, mergers & acquisitions, public-private partnerships (PPPs), and regulatory compliance.

India Water Treatment Market News & Updates

• In August 2024, the Indian government announced plans to invest nearly $300 million over the next two years to mitigate floods and conserve water in major cities, including Mumbai, Chennai, and Bengaluru. This initiative aims to expand water bodies and construct drainage systems to address urban flooding and water scarcity.
• In November 2024, Mercedes-Benz improved its pollution management at its Indian plant after failing environmental checks. The company enhanced its wastewater treatment and air pollution control measures, aligning with India's stringent environmental regulations.