Scarcity and sustainability drive water market growth
A new report from Bluefield Research predicts Europe’s industrial water market will surpass €100bn by 2030 with a compound annual growth rate above 15 per cent. Factors driving market growth include the demand for more resilient and efficient water solutions to satiate the needs of technology, to address scarcity and to meet sustainability targets.
AI and computing advances drive water tech investment
According to Bluefield Research’s report, Europe Industrial Water Market Outlook: Trends, Drivers, and Forecasts, 2025–2030, the continent’s industrial sector will see a major transformation in water-related investments. Exponential growth in data centre construction, and associated energy and water demands from processing power, as well as the semiconductor manufacturing needed to meet demands from the rise of AI searches and modelling, are driving market growth.
Combined investment for high-tech sectors is expected to reach €10.42 billion by 2030, according to the report. An increasing demand for water in electric power generation to meet the energy requirements of AI data centres will require substantial resources, which may include treatment and reuse facilities and technologies.
Food production and power generation
Other industrial sectors expected to see growth include food production, power generation, chemicals, and pharmaceuticals. Food production accounts for 27 per cent of the predicted growth.
Regulations driving industrial water management solutions
Regulations are also reshaping the industrial water management market landscape, offering opportunities for solutions providers and investors.
Zineb Moumen, an analyst at Bluefield Research, outlined in the report a shift in mindset within industry: “Industrial sectors are increasingly viewing water not as a cost centre, but as a critical operational asset.”
This mindset change, corporate sustainability goals and increasingly stringent regulations, such as those covering water quality and PFAS treatment, as well as the Urban Wastewater Treatment Directive, the Industrial Emissions Directive and the European Green Deal, will lead to wider investment in water sourcing, desalination, treatment, smart and digital systems, and reuse.
Moumen added: “Regulatory pressures, combined with volatile chemical prices and tighter discharge thresholds, are turning sustainability from a reputational goal into a business imperative, fundamentally reshaping how companies prioritise water management investments. Success in this €101bn market will go to those offering technically sound, locally tailored, and compliance-ready solutions.”
Growth is not equal across Europe
Local conditions and infrastructure are shaping market growth, according to the report, with western and southern Europe accounting for 64 per cent of the total market value. For example, areas of southern Europe are experiencing the fastest growth, largely due to water scarcity, sector diversification, and rising demand from data centres and the automotive manufacturing industry.
However, western Europe’s industrial heartlands offer opportunities for entrepreneurs and solutions providers due to regulatory changes affecting PFAS and nutrient discharge. European Union funding and manufacturing growth fuel investment opportunities in northern and eastern Europe.
Moumen states in the report: “The biggest opportunities will go to companies that can navigate Europe’s diverse industrial landscape, where effective water management increasingly hinges on region-specific challenges and priorities.”
He added: “Spain’s droughts, Germany’s stricter discharge rules, and Poland’s battery factories each require distinct water management approaches. No two markets move at the same pace.”
The full report can be read here: https://www.bluefieldresearch.com/ns/europes-industrial-water-market-to-surpass-100-billion-by-2030.
