U.S. Water Infrastructure and Management Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)
This Report Provides In-Depth Analysis of the U.S. Water Infrastructure and Management Market Report Prepared by P&S Intelligence, Segmented by Component (Devices, Software Solution, Services), Application (Residential, Commercial, Industrial), Infrastructure Type (Water Supply Infrastructure, Wastewater Infrastructure, Stormwater Management Systems), Technology (Traditional Water Management, Smart Water Management), and Geographical Outlook for the Period of 2019 to 2032
U.S. Water Infrastructure and Management Market Growth Potential
Market Statistics
Study Period
2019 - 2032
2024 Market Size
USD 120.2 Billion
2025 Market Size
USD 125.4 Billion
2032 Forecast
USD 179.6 Billion
Growth Rate (CAGR)
5.3%
Largest Region
South
Fastest Growing Region
West
Nature of the Market
Fragmented
Largest Application Category
Industrial
Growth Forecast
Key Players
Key Report Highlights
Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity
Explore the market potential with our data-driven report
U.S. Water Infrastructure and Management Market Outlook
The U.S. water infrastructure and management market size was USD 120.2 billion in 2024, which is expected to reach USD 179.6 billion by 2032, growing at a CAGR of 5.3% during the forecast period 2025–2032. This is because a large part of the country’s current water system is aging and needs upgrades to cater to the rising farming, drinking, cooking, and other needs of an expanding population.
Most pipes, treatment plants, and distribution systems were built Decades ago, which is why they are starting to reach the end of their lifespan. Local governments and utilities are spending money to repair and modernize them due to the frequent leaks, pipe bursts, and a greater contamination risk. It is causing a huge demand for new technologies and construction services throughout the country for the replacement and improvement of this 45-year-old (on average) infrastructure.
The increasing impact of climate change is another major factor fueling the market growth. Droughts, floods, and extreme hurricanes are happening more often, putting extra stress on water systems. Therefore, water conservation, stormwater management, and flood control are increasingly being prioritized in cities and underserved areas.
Under unpredictable circumstances, these systems must be reliable and safe. Therefore, public and private utilities are turning to smarter water management solutions, such as real-time monitoring, data analytics, and water reuse & reuse.
Essentially, public funding and national policy support push the market forward. The Bipartisan Infrastructure Law has sectioned over USD 50 billion for water projects in communities of various sizes across the country. Additionally, environmental justice is gaining popularity, and neglected areas are being funded to upgrade their water infrastructure.
U.S. Water Infrastructure and Management Market Emerging Trends
Private Sector Participation Is Major Trend in Market
​The market is witnessing an increasing number of public–private partnerships (PPPs) aimed at tackling the present challenges.
Most water infrastructure systems across the country belong to the public sector, which, however, struggles to fund essential upgrades and maintenance activities.
The water infrastructure receives a poor grade from the American Society of Civil Engineers, mostly −C or D, highlighting the requirement for immediate upgrades.
PPP arrangements combine public supervision with private sector capital and operational efficiency, thus enabling the funding of projects that were not earlier possible because of budget limitations.
The Congressional Budget Office indicates that PPPs often result in cost reduction and better adherence to standards, if implemented correctly.
Through PPPs, projects can complete faster deploy advanced technologies, and offer better services to users.
Performance-based contracts for water management can reduce water distribution losses and improve the overall operational performance.
The public control on water supply and pricing stays intact, while the private sector can make the required improvement in the services.
Climate Change and Water Scarcity Are Chief Drivers for Market
The primary growth driver for the market is the increasing focus on water recycling and reuse.
Due to more-prevalent and -severe drought conditions, California, Arizona, and Nevada, communities are adopting sophisticated wastewater processing systems to supply for agricultural irrigation, landscaping, and drinking.
As per the EPA, 34 billion gallons of wastewater are processed in the country each day by publicly owned facilities.
The acceptance of these solutions is increasing because they help conserve scarce water resources, decrease imported water consumption, and enhance the overall sustainability.
Investment and efforts for innovation in this domain have expanded due to the need to deploy improved technology and rise in the level of public education.
Water conservation measures encompass plumbing system modernization, large-scale educational initiatives, and incentive-based programs.
Local and community-scale water conservation, such as by limiting wastage and harvesting rainwater, is cost-efficient and speedier than treating wastewater and installing large-scale water supply lines.
The extensive implementation of water conservation could help homes, farms, and industries save USD 380 a year on utility expenses.
The policies and programs underway in the U.S. for water conservation include the Rainwater Harvesting Initiative, WaterSense program, National Drought Resilience Partnership, Climate Ready Utilities Program, and Drinking Water State Revolving Funds.
These projects are aimed at promoting water-efficient appliances, researching better ways of water conservation, and setting up utility-level systems for this purpose.
U.S. Water Infrastructure and Management Market Segmentation and Category Analysis
Insights by Component
​Devices are the largest category, with a market share of 45% in 2024, because they deliver real-time data for billing accuracy. This helps utilities reduce losses and allows consumers to handle their water usage better. The increasing use of smart meters stems directly from their capability to optimize resource handling and disclose leakages using such instantaneous information.
Services are the fastest-growing category. This is because utilities and municipalities need professional guidance to implement and maintain complex smart water systems. The deployment and operation of such technologies demand a range of operations, support, and maintenance services. The demand for water infrastructure management services driven by IoT, AI, and data analytics is rising because specialized knowledge is required for this, and utilities often do not have the required in-house expertise.
Here are the components studied in the report:
Devices (Largest Category)
Software
Services (Fastest-Growing Category)
Insights by Application
Industrial is the largest category, with a market share of 40% in 2024. Industrial businesses, especially those engaged in manufacturing, consume large volumes of water. As per studies, power plants in the country use almost 50 trillion gallons of freshwater each year, making them the largest withdrawer from underground reservoirs. Hence, they need smart water management systems to operate and meet environmental compliance requirements. Smart water management systems enable better leak detection, improved operational efficiency, and minimized expenditure. Advanced technologies allow the sector to maintain the desired water quality and dispose of wastewater, which minimizes operational stoppages.
Residential is the fastest-growing category because people now better understand the importance of water preservation and reducing utility expenses with smart home technology. Residential property owners now use advanced water meters, leak identification systems, and real-time monitoring equipment for improved water consumption management. These technologies decrease water expenses and offer environmentally benefits by decreasing wastage. The government’s water conservation efforts and the availability of IoT-enabled home appliances make the case here.
The following applications are analyzed in the report:
Residential (Fastest-Growing Category)
Commercial
Industrial (Largest Category)
Insights by Infrastructure Type
​Wastewater infrastructure is the largest category, with a market share of 45% in 2024, due to the presence of over 16,000 wastewater treatment plants and 1.3 million miles of public and private sewers. The existing systems need modernization to the updated standards, to support the expanding population.
Stormwater management systems are the fastest-growing category. This is due to the necessity to replace antiquated systems that fail to manage present-day precipitation patterns, thus leading to more-detrimental effects of flooding. Urban growth creates additional runoff problems, which require advanced stormwater management systems.
Here are the categories of this segment:
Water Supply Infrastructure
Wastewater Infrastructure (Largest Category)
Stormwater Management Systems (Fastest-Growing Category)
Insights by Technology
Traditional water management is the largest category, with a market share of 60% in 2024. Conventional water treatment plants, manual monitoring processes, and legacy distribution networks are cost-effective and simple to implement, operate, and maintain. The huge extent of the existing infrastructure that needs modernization drives this category’s dominance. The complications in overhauling the entire water management systems with smart ones are another reason for their popularity.​
Smart water management is the fastest-growing category, as IoT, AI, and data analytics enable real-time monitoring, predictable maintenance, and optimal resource assignment. The need for sustainable water usage, pressure on water resources to cater to an expanding population, and the government initiatives propel this category.
The following technologies are studied in the report:
Traditional Water Management (Largest Category)
Smart Water Management (Fastest-Growing Category)
Drive strategic growth with comprehensive market analysis
U.S. Water Infrastructure and Management Market Regional Growth Dynamics
​South is the largest region, with a market share of 35% in 2024. The region has a substantial population, industrial growth, and often inadequate water infrastructure are the reasons for this prominence. Texas is facing large water shortages, impelling investments in new water supply projects and repairs to the existing infrastructure. Texas might need USD 154 billion over the next 50 years in its water infrastructure.
The West is the fastest-growing regional market, due to the acute water scarcity, exacerbated by prolonged droughts and climate change. California and Nevada are spending significantly on cutting-edge water reuse and conservation methods. The Truckee Meadows Water Authority in Nevada has secured USD 30 million to build the first water purification and reuse facility in the state.
Here are the categories of this segment:
Northeast
Midwest
West (Fastest-Growth Category)
South (Largest Category)
U.S. Water Infrastructure and Management Market Share
The market is fragmented because it is composed of thousands of local and regional water utilities that are each subject to their regulations, priorities, and funding ability. More than 90 percent of the U.S. water systems are publicly owned and serve small populations, making the market fragmented. Infrastructure needs and challenges are substantially different from place to place. What is necessary in rain-starved California is not in flood-prone Louisiana, making it hard for a few domineering players to satisfy the market uniformly. However, equipment, chemicals, and services provided by large companies (such as Xylem, Veolia, Ecolab) are present, but the market is spread over because it’s so local.
U.S. Water Infrastructure and Management Companies:
Komline-Sanderson Corporation
Xylem
The Dow Chemical Company
3M Company
ITT Inc.
Ecolab Inc.
Aquatech International LLC
Black & Veatch Holdings
Tetra Tech, Inc.
Ovivo, Inc.
Genesis Water Technologies, Inc.
WesTech Engineering, LLC
Want a report tailored exactly to your business need?
Leading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Client Testimonials
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Unmatched Standards
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
Complete Data Security
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws