New investments in emerging technology sectors, including data centers and semiconductor manufacturing, as well as evolving demand in the water-intensive energy industry, will drive industrial water management expenditures to total US$388.5 billion from 2024 to 2030 according to a new forecast report from Bluefield Research, a leading provider of global water market insights.
The U.S. & Canada are global leaders in industrial activity with nearly 450,000 facilities across 16 industry verticals generating US$8.5 trillion in annual production output. In turn, the industrial sector accounts for nearly half of total water withdrawals in the U.S. & Canada.
“Rising demand for alternative water supplies, reliable water quality, and advanced wastewater management is driving a range of new opportunities across industries. Industrial water solutions providers—including engineering, equipment, and technology companies—are positioned to capitalize on a dynamic landscape shaped by government incentives, geopolitics, regulatory policies, and the ongoing reshoring of U.S. manufacturing,” says Bluefield Senior Analyst, Amber Walsh.
According to Bluefield Research’s new report, U.S. & Canada Industrial Water & Wastewater Market: Key Trends and Forecasts, 2024–2030, industrial water spend, including capital and operating expenditures, will grow at a 4.2% compound annual growth rate (CAGR). Annual expenditures are projected to increase from US$48.4 billion in 2024 to US$62.0 billion in 2030.
“Water has always been a factor that industries must consider; however, high demand and limited water supplies are exacerbating companies’ operational and reputational risks. Growing public and shareholder focus on sustainability puts additional pressure on corporations to be more careful with water consumption and wastewater discharge. As a result, businesses are ramping up investments in water and wastewater solutions to protect their bottom lines as well as insulate public perception of their brands,” according to Walsh.
U.S. & Canada Industrial Water Market Outlook, 2024–2030
Note: Manufacturing includes Computer and Electronics, Semiconductors, Food and Beverage, Paper, Chemicals, Pharmaceuticals, Petroleum and Coals Products, Metals/Minerals, Textiles/Apparels, Wood Products and other manufacturing. Resource extraction includes Upstream Oil and Gas, Mining and Electric Power. Values expressed in 2024 US$
Source: Bluefield Research
High-tech sectors, such as data centers and semiconductor manufacturing, are forecasted to see the fastest growth among major industries. With CAGRs of 9.3% and 8.8%, respectively, these segments are significantly outpacing more mature verticals and the industrial sector overall, according to Bluefield’s analysis.
Data centers are at the core of the digital economy, but their reliance on water-intensive cooling has brought their environmental impact into focus,” says Walsh. “These facilities, often located in water-stressed Western states such as Arizona, are now under increasing pressure to innovate how they manage their water resources to balance both operational and environmental needs.” Technology companies(e.g., Amazon, Microsoft, Meta) are investing in more efficient cooling systems and water reuse systems to combat growing water usage and meet sustainability targets.
The robust pipeline of new data centers planned and constructed is set to further catapult water management spend in the sector,” says Walsh. By 2030, artificial intelligence (AI) is expected to account for 23% (93 TWh) of data center power demand in the U.S.—a rapid increase from 3% (4 TWh) in 2023—and a key driver to the scaling demand for water.
Manufacturing industries represent a significant 45% share of planned industrial water spend, or US$175.3 billion, fueled by high-growth sectors such as semiconductors, pharmaceuticals, and beverages, according to Bluefield’s report. “Boosted by government policies such as the Inflation Reduction Act and the CHIPS Act, we expect to see an increase in water management spend for both new greenfield developments as well as industrial facility expansions,” says Walsh.
Semiconductor manufacturers are grappling with higher water demand to meet expanding production. In addition to large water volume needs, water quality is critical at semiconductor facilities as ultrapure water is used for their production processes, “The semiconductor industry’s distinct needs for ultrapure water presents opportunities for specialized equipment and service providers. Managing contaminants has become a significant challenge, resulting in increased investments in advanced water treatment technologies,” according to Walsh.
The U.S. & Canada’s energy transition to less carbon intensive power generation, along with stricter environmental regulations, are also reshaping water management opportunities for extractive industries, such as oil & gas, coal power generation, and mining.
We are seeing escalating demand for critical metals (lithium, cobalt, nickel, copper) used in electric vehicles and renewable technologies. Lithium extraction, a water-intensive process, raises significant concerns for water resource management, as almost 80% of the global lithium supply is now allocated for batteries. These developments highlight the critical need for efficient water management solutions to sustain the expanding global battery supply chain without compromising water resources.
Even amid the energy transition, traditional oil & gas extraction remains a critical industry, set to contribute US$186.5 billion to industrial water management through the end of the decade, representing 48% of the forecasted industrial water expenditure and highlights significant opportunities for midstream water companies like Select Water and Aris Water Management.
Companies are leveraging M&A to expand their industrial water portfolios and capitalize on growing demand. Notable recent acquisitions, including mega-deals (Veolia acquiring Suez and Xylem acquiring Evoqua), will reshape the competitive landscape. This will also create new opportunities for smaller players offering more agile approaches to water and wastewater management, including deploying innovative technologies and offering business models that offload water management risk and drive greater operational efficiency.
These shifts in demand highlight an optimistic and transformative period for industrial water markets,” says Walsh. “The convergence of advanced technologies, changing business models, and high-stakes mergers is driving a competitive realignment, positioning the industrial water sector for significant growth and innovation.”
About this Report: U.S. & Canada Industrial Water & Wastewater Market: Key Trends and Forecasts, 2024–2030
This Insight Report + data option offers an in-depth analysis of U.S. & Canada’s industrial water market, leveraging Bluefield Research’s rigorous, bottom-up methodology, and delivers a comprehensive view of trends, growth forecasts, and competitive dynamics of leading companies. The report (and accompanying data dashboard) is available for purchase and immediate download from bluefieldresearch.com (or included with an Industrial Water Corporate Subscription)
