Report Overview

The Indian Government’s increasing focus on providing quality water to every household, high demand for water from population explosion and various industries, and stringent regulations on effluent treatment are projected to propel the expansion of India water and wastewater treatment market during the forecast period between 2023 and 2029.

India Water and Wastewater Treatment Market - Industry Trends & Forecast Report, 2029

India water and wastewater treatment market size was estimated at USD 1.56 billion in 2022. During the forecast period between 2023 and 2029, the size of India water and wastewater treatment market is projected to grow at a CAGR of 10.05% reaching a value of USD 3.03 billion by 2029. Major growth drivers for India water and wastewater treatment market include increasing stringent regulations on effluent treatment and rising use of shale gas in manufacturing and energy industries. India is the world's third-largest coal producer. Also, the implementation of stringent government rules, such as the zero liquid discharge regulation, for the treatment of sewage prior to release into bodies of water is likely to drive demand for wastewater treatment plants through 2025. According to an estimate, by 2030, India's water demand will be two times greater than availability, signifying catastrophic water scarcity in the country. Long-term demand for such water treatment systems is predicted to increase due to the scarcity of water for industrial and residential use. The entire implementation cost of Swachh Bharat Mission-Urban 2.0 for its different components was predicted to be INR 1,41,600 crores (USD 18.998 billion) in fiscal year 2021-2022. The Government of India will contribute INR 36,465 crores (USD 4.892 billion), with the remainder coming from other sources such as CSR from the public/private sector, and external help. It contains the country's fund allocation for water and wastewater treatment.

India Water and Wastewater Treatment Market – Overview

Water and wastewater management is an emerging subsegment of India's environmental technology sector. By 2030, India's demand for water is expected to be twice that of available supplies. To address these issues, governmental and private sector facilities are developing comprehensive water and wastewater treatment and distribution infrastructure. In India, there is an increasing need for high-end treatment technology. Several government efforts, including the Atal Mission for Rejuvenation and Urban Transformation, the National Mission for Clean Ganga, the Jal Jeevan Mission, and Community Drinking Water Schemes, contribute to the expansion of the Indian water and wastewater treatment business. The Indian government established the Jal Shakti Ministry in May 2019, uniting all water-related agencies under one ministry in order to ensure clean drinking water to the people of India. The Jal Shakti Ministry quickly established the Jal Jeevan Mission, which aims to supply piped drinking water to 146 million homes in 700,000 villages by 2024. The mission has allocated USD 51 billion to states in order to raise home water connection coverage from 18.33% in 2019 to 100% by 2024. Water meters, water quality monitoring systems, water management-related IT systems, tertiary treatment technology, and water-related engineering, procurement, and construction firms will benefit from this ambitious undertaking.

India Water and Wastewater Treatment Market

Growth Drivers

Stringent Regulations on Effluent Treatment

In recent years, there has been a growing focus on environmental sustainability and the need to reduce the environmental impact of industrial activities. As a result, governments around the world, including India, have introduced stringent regulations on effluent treatment to ensure that industries comply with the standards for wastewater discharge. In India, the Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) are responsible for enforcing these regulations and ensuring that industries adhere to the prescribed standards. The effluent treatment regulations in India specify the permissible limits for various parameters such as chemical oxygen demand (COD), total dissolved solids (TDS), total suspended solids (TSS), and biological oxygen demand (BOD) in industrial wastewater. Industries are required to install effluent treatment plants (ETPs) to treat their wastewater before discharge into water bodies. The regulations also require industries to obtain permits from the SPCBs for their ETPs and to submit regular reports on the quality of their effluent. Industries that fail to comply with the regulations are subject to penalties, which can include fines, closure of the facility, or imprisonment of the responsible personnel. The stringent regulations on effluent treatment have led to an increased demand for advanced wastewater treatment technologies and equipment, such as membrane separation, biological treatment, and disinfection equipment. It has also created opportunities for companies to provide specialized services related to effluent treatment, such as consulting and testing services.

Restraints

High Costs Deterring Customers from Adopting Water Treatment Technologies

Even with severe rules in place for wastewater treatment for industries, they are discouraged from installing advanced treatment technologies on the premises due to the high costs of building such plants. The intricacy of operations makes it more labor intensive, which raises the operating cost even more. Nevertheless, with increased competition and lower profitability, corporations are not pursuing such large investments, causing the water and wastewater treatment sector to contract.

Impact of COVID-19 on India Water and Wastewater Treatment Market

COVID-19 had a detrimental impact on the Indian economy operations and the various end-user industries in the market. It lowered industrial wastewater output. The pandemic caused a significant decline in oil demand. As a result, the requirement for water treatment technology in the sector has decreased. Labor constraints and plant closures in the food and beverage industry limited food production levels in 2020. Likewise, in the pulp and paper business, the reduction in packaging material imports by key customers resulted in a domestic excess of pulp and paper products in the manufacturing countries. However, the growing need for an effective strategy to the proper disposal of industrial wastewater is attributable to the rising demand for wastewater treatment. Also, the COVID-19 pandemic necessitated the use of improved wastewater treatment in hospitals in order to prevent the virus from spreading. As a result, during the pandemic, decentralized wastewater treatment plants with numerous disinfection barriers in quarantine centers and isolation wards gained popularity.

India Water and Wastewater Treatment Market

Segmental Coverage

India Water and Wastewater Treatment Market – By Equipment

By equipment, India water and wastewater treatment market is divided into membrane separation, biological, disinfection, and sludge treatment segments. The membrane separation segment dominates the India water and wastewater treatment market. Membrane separation technology is used for various applications, such as reverse osmosis, nanofiltration, and ultrafiltration, and is highly effective in removing impurities from water and wastewater. The increasing demand for membrane separation equipment can be attributed to the growing need for clean water for various industrial applications and for domestic use. The biological segment is also growing at a significant rate due to the increasing focus on sustainability and the need to reduce the environmental impact of wastewater discharge. Also, municipal wastewater treatment, food and beverage industry, chemical effluent, and agricultural waste are among the major end-user industries in India that use anaerobic biological treatment. In India, increasing awareness is boosting demand for anaerobic biological treatment equipment.

India Water and Wastewater Treatment Market – By Process

Based on process, India water and wastewater treatment market is divided into Primary Treatment, Secondary Treatment, and Tertiary Treatment segments. The secondary treatment segment holds the highest market share. The secondary treatment process is used to remove dissolved and suspended organic matter and nutrients from wastewater, and is typically achieved through biological treatment methods, such as activated sludge and sequencing batch reactors. The primary treatment process, which involves the physical removal of large solids and grit from wastewater, is also important, especially in industries that generate high volumes of solid waste. However, the secondary treatment process is more widely used as it helps to remove the majority of organic matter and nutrients from wastewater.

India Water and Wastewater Treatment Market – By Application

Based on application, India water and wastewater treatment market is bifurcated into Municipal and Industrial segments. The municipal segment dominated the market. Wastewater treatment is required and practiced across different cities in India. Preliminary treatment, main and secondary treatment, tertiary treatment, biological nutrient removal (BNR), resource recovery, and energy generation are all important applications of treatment methods. Biomass is used extensively in municipal wastewater treatment. As a result, biological treatment is an important stage in the treatment of biowaste. Wastewater technology is largely employed by municipal authorities in various cities across India for municipal wastewater treatment. According to the World Bank, India, China, Indonesia, Nigeria, and the United States will dominate the world's urban population growth by 2050. Also, the Indian government aims to provide 100% of its population with safe and enough drinking water within premises by 2024 or 2025, which will strengthen the country's municipal water treatment plants. Hence, such factors have boosted the segment expansion.

India Water and Wastewater Treatment Market – By Region

Regionally, India water and wastewater treatment market is segmented into North India, South India, East India, and West India. The West India segment held the highest share in the market. The primary factor was the high level of industrialization in Maharashtra and Gujarat. The South India segment is the second largest contributors. North India quickly followed, especially after the announcement of efforts to clean up the Ganga and a Supreme Court order on pollution control. Due to poor implementation and little industrial penetration, the eastern part of India contributes the least to water treatment.

Competitive Landscape

Major players operating in India water and wastewater treatment market include Ecolab Inc., Veolia Group, Evoqua Water Technologies LLC, Aquatech International Corporation, Calgon Carbon Corporation, Toshiba Water Solutions Private Limited, and VA Tech Wabag. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2022 - WABAG LTD signed an agreement with the Asian Development Bank (ADB) to raise INR 200 crores (USD 24.6 million) through unlisted Non-Convertible Debentures having tenors of five years and three months. ADB will subscribe to it for its water treatment business over a 12-month period.

• In August 2022 - Huliot Pipes, an Israel-based company, launched the ClearBlack Sewage Treatment Plant designed for the Indian market for wastewater recovery and reuse.

Scope of the Report

By Equipment

• Membrane Separation

• Biological

• Disinfection

• Sludge Treatment

By Process

• Primary Treatment

• Secondary Treatment

• Tertiary Treatment

By Application

• Municipal

• Industrial

By Region

• North India

• South India

• East India

• West India