Environmental Technology Market

Market Definition

The market focuses on the development and application of tools, systems, and processes that minimize environmental harm. It includes waste management, pollution control, water and air purification, and renewable energy solutions. These technologies involve innovative formulations and engineering methods to improve efficiency and sustainability.

The market serves industries such as manufacturing, agriculture, and urban development by enabling cleaner production and resource conservation. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Environmental Technology Market Overview

The global environmental technology market size was valued at USD 589.20 billion in 2024 and is projected to grow from USD 622.13 billion in 2025 to USD 973.90 billion by 2032, exhibiting a CAGR of 6.61% during the forecast period.

The market is influenced by increasing industrialization and rapid urbanization, which demand efficient pollution control and waste management solutions. Additionally, the expansion of water treatment and purification systems to address water scarcity and contamination issues is leading to increased investment in advanced environmental technologies across municipal and industrial sectors.

Major companies operating in the environmental technology industry are Veolia, Suez S.A., Ecolab, Siemens, General Electric Company, Honeywell International Inc., ABB, 3M, Xylem, Pentair, Danaher Corporation, Emerson Electric Co., CLEAN HARBORS, INC, WM Intellectual Property Holdings, L.L.C., and DuPont.

Strict government policies and regulations aimed at reducing pollution and conserving resources compel industries to adopt cleaner technologies. Compliance requirements for air quality, waste management, and water treatment compel industries to invest in environmental solutions. These regulations create a steady demand for advanced technologies, contributing to the consistent growth of the market.

• In December 2024, TETRA Technologies launched the Oasis TDS water treatment and desalination technology in the Permian Basin, USA. The technology enables the reuse of produced water from oil and gas wells while meeting regulatory standards and passing toxicity tests.

Key Highlights

1. The environmental technology industry size was valued at USD 589.20 billion in 2024.
2. The market is projected to grow at a CAGR of 6.61% from 2025 to 2032.
3. North America held a market share of 37.00% in 2024, with a valuation of USD 218.00 billion.
4. The waste valorization/recycling & composting segment garnered USD 266.91 billion in revenue in 2024.
5. The solutions segment is expected to reach USD 761.12 billion by 2032.
6. The wastewater treatment segment secured the largest revenue share of 55.20% in 2024.
7. The municipal segment is poised to grow at a CAGR of 8.45% over the forecast period.
8. Europe is anticipated to grow at a CAGR of 8.57% through the forecast period.

Market Driver

Increasing Industrialization and Urbanization

Rapid industrial growth and urban expansion have led to environmental challenges such as air pollution, wastewater, and solid waste accumulation. In response, industries and urban areas are adopting advanced technologies for pollution control, waste management, and resource recovery.

The growing emphasis on sustainable infrastructure and eco-friendly solutions is boosting the adoption of environmental technologies, driving the environmental technology market as urban centers prioritize environmental health alongside development, propelling the market development.

• In March 2024, the Institute for Global Environmental Strategies (IGES), in collaboration with Engineering X, the International Solid Waste Association (ISWA), Practical Action, and UN-Habitat, launched a global project aimed at eliminating open waste burning. Supported by the United Nations Environment Programme’s Climate and Clean Air Coalition (CCAC), the initiative focuses on creating regional roadmaps and city pilots to mitigate air pollution, climate change, and health risks associated with open waste burning in Asia, Africa, and Latin America.

Market Challenge

High Capital Investment and Integration Complexity

A major challenge limiting the growth of the environmental technology market is the high upfront cost of advanced systems and the complexity of integrating them into existing industrial infrastructure. Small and mid-sized companies often struggle with limited budgets and technical expertise.

To address this challenge, market players are offering modular solutions that reduce installation costs and allow phased implementation. Additionally, companies are forming partnerships to access funding, share resources, and provide integrated support services. These strategies help ease financial and technical barriers, making it more feasible for a broader range of industries to adopt environmental technologies.

Market Trend

Expansion of Water Treatment and Purification Systems

Rising global water scarcity and contamination concerns are increasing the demand for advanced water treatment technologies. Municipalities and industries invest in membrane filtration, UV disinfection, and advanced chemical treatments to ensure safe and sustainable water supplies. Stringent water quality standards and a growing emphasis on resource conservation and pollution control further fuel the expansion of the environmental technology market.

• In January 2025, the Indian Institute of Technology (IIT) Indore developed a cost-effective, solar-powered water purification system for remote and coastal areas. Leveraging ISSG technology and photothermal materials, the system efficiently desalinate saline water, offering a low-energy alternative to traditional processes such as reverse osmosis.

Environmental Technology Market Report Snapshot

Segmentation	Details
By Technological Solution	Waste Valorization/Recycling & Composting, Greentech/Renewable Energy, Environmental Monitoring, Others
By Component	Solutions, Services
By Application	Wastewater Treatment, Water Purification, Solid Waste Management, Environmental Monitoring
By Vertical	Industrial, Municipal, Residential
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Technological Solution (Waste Valorization/Recycling & Composting, Greentech/Renewable Energy, Environmental Monitoring, and Others): The waste valorization/recycling & composting segment earned USD 266.91 billion in 2024, mainly due to the rising demand for resource recovery, landfill reduction, and compliance with strict recycling regulations across industrial and municipal sectors.
• By Component (Solutions and Services): The solutions segment held a share of 78.80% in 2024, down to its ability to offer complete, scalable systems that address complex environmental challenges across air, water, and waste management.
• By Application (Wastewater Treatment, Water Purification, Solid Waste Management, and Environmental Monitoring): The wastewater treatment segment is projected to reach USD 533.25 billion by 2032, owing to the growing need for advanced solutions that meet stringent discharge regulations and support water reuse across industrial and municipal sectors.
• By Vertical (Industrial, Municipal, and Residential): The municipal segment is set to grow at a CAGR of 8.45% through the forecast period, largely attributed to the rising need for large-scale water treatment, waste management, and air quality monitoring systems to support urban population growth and meet regulatory compliance.

Environmental Technology Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America environmental technology market share stood at around 37.00% in 2024, valued at USD 218.00 billion. Heavy industrial sectors in North America are increasingly adopting advanced emission control systems to comply with stringent air quality standards.

The deployment of technologies targeting volatile organic compounds (VOCs), nitrogen oxides (NOx), and particulate matter is stimulating regional market expansion. This need for minimizing air pollution fuels the demand for specialized environmental technologies. Moreover, the regional market benefits from strong R&D ecosystems and technology hubs fostering innovation in environmental technologies.

Integration of digital tools such as IoT sensors, AI, and data analytics enhances monitoring and management of pollution and resources. These innovations improve system efficiency and cost-effectiveness, promoting the adoption of environmental technologies.

• In March 2025, Encino Environmental Services secured USD 11 million in federal funding from the Department of Energy and the Environmental Protection Agency for two methane reduction projects in the Permian Basin. One project focuses on developing advanced technologies for flare monitoring and efficiency, while the other addresses methane emissions from storage tanks. Both projects will be tested in the Permian Basin, where Encino's largest customer base is located. 

The Europe environmental technology industry is estimated to grow at a CAGR of 8.57% over the forecast period. The region is at the forefront of implementing circular economy models, emphasizing waste reduction, extended product lifecycles, and improved recycling systems. This shift boosts demand for advanced sorting, recovery, and eco-design technologies, with significant investments from businesses and municipalities supporting regional market expansion.

• In June 2025, the EU Green Week 2025 was held in Brussels under the theme "Circular Solutions for a Competitive Europe." The event gathered over 800 participants, including policymakers, industry leaders, NGOs, and citizens, to explore strategies for strengthening Europe's competitiveness through circular economy practices. Discussions focused on scaling circular business models, boosting innovation in waste reduction, and fostering industry and consumer engagement.

Regulatory Frameworks

• In the U.S., the Environmental Protection Agency (EPA) enforces several foundational laws. The Clean Air Act regulates air emissions, while the Clean Water Act governs discharges into water bodies. The National Environmental Policy Act requires environmental impact assessments for federal projects and the Resource Conservation and Recovery Act manages hazardous waste.
• The UK’s environmental regulations are structured under the Environment Act 2021, which sets legally binding targets for air, water, and biodiversity. It also established the Office for Environmental Protection to ensure compliance. Post-Brexit, the UK maintains strict environmental standards similar to the European Union.
• China's regulatory system includes the Environmental Protection Law, which enforces strict penalties for pollution and mandates environmental impact assessments. The Water Pollution Prevention and Control Action Plan targets wastewater treatment and promotes water recycling.
• Japan's Basic Act on the Environment promotes sustainability and defines responsibilities across government, corporations, and citizens. Supporting laws, such as the Vibration Regulation Law, address industrial and construction-related nuisances. Regulations focus on pollution prevention, waste reduction, and resource efficiency.

Competitive Landscape

Major players in the environmental technology industry are adopting strategic partnerships to decarbonize industrial processes. These collaborations prioritize integrating automation and clean energy solutions to reduce emissions across high-impact sectors such as cement and lime production.

Additionally, there is a growing emphasis on R&D to improve process efficiency and scale low-carbon technologies. Technological advancements in electric heating systems, CO₂ capture, and process control are further fostering market development.

• In March 2024, ABB and SaltX Technology collaborated to decarbonize cement and lime production. At SaltX's pilot facility in Hofors, Sweden, ABB's advanced measurement and automation instruments are integrated into SaltX’s electric arc calcination process, replacing fossil fuels with renewable energy and capturing CO₂ emissions at the source.

List of Key Companies in Environmental Technology Market:

• Veolia
• Suez S.A.
• Ecolab
• Siemens
• General Electric Company
• Honeywell International Inc.
• ABB
• 3M
• Xylem
• Pentair
• Danaher Corporation
• Emerson Electric Co.
• CLEAN HARBORS, INC
• WM Intellectual Property Holdings, L.L.C.
• Dupont

Recent Developments (Expansion/Product Launch)

• In May 2025, LandSpace, China's private aerospace firm, launched its improved methane-powered Zhuque-2E Y2 rocket, deploying six satellites into orbit. This launch reflects LandSpace's commitment to developing cost-effective, less polluting, and safer methane-liquid oxygen-fueled reusable rockets.
• In January 2025, ABB unveiled the Baldor-Reliance Food Safe SP5+, the world's first IP69 ultra-premium efficient motor, at the International Production & Processing Expo (IPPE) in Atlanta. Developed for the food and beverage industry, this stainless-steel motor meets stringent hygiene standards and delivers high energy efficiency, aligning with sustainability goals.
• In January 2025, WindBorne launched WeatherMesh, an AI-powered global forecasting model utilizing a fleet of autonomous weather balloons. This technology enhances the accuracy of extreme weather predictions, supporting sectors such as agriculture and disaster management.
• In January 2025, Anthro Energy announced plans to build a large-scale facility in Louisville, Kentucky, for producing advanced, non-flammable lithium-ion battery electrolytes. These next-generation batteries offer enhanced safety and longevity, targeting electronics and defense applications.