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Sewage Treatment Facilities in the US - Market Research Report (2015-2030)

Shahool Al Bari Shahool Al Bari New York, United States Last Updated: June 2025 NAICS 22132

Revenue

$32.3bn

2025

$32.3bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

60,436

Businesses

342

Wages

$X.Xbn

Sewage Treatment Facilities in the US industry analysis

Sewage treatment facilities have continued to see consistent revenue growth since they provide essential services. Companies were also able to raise rates to prevent dips in profit amid rising expenses, particularly chemicals and equipment that require steel as an input. Even so, residential construction markets took a hit in 2022 following a climb in interest rates, while commercial markets lagged amid temporary closures, causing revenue to see a massive dip this year. Overall, revenue for sewage treatment facilities has swelled at a CAGR of 0.5% through 2025, reaching $32.3 billion. This included a 1.7% bump in 2025 alone as rising treatment rates and rebounding performance from major markets aided growth.

Trends and Insights

  • Higher waste prices and rising rates are keeping revenues up. Even though costs have surged, sewage treatment facilities have managed to boost revenue with steady rate hikes and a slight recovery in construction, keeping the industry resilient.
  • Irrigation services and water sales have spiked. Agricultural businesses' attraction to other services provided by sewage treatment facilities has led to growth.
  • While many manufacturers have in-house wastewater treatment capabilities, quite a few rely on external facilities to handle the task. Many of these producers are located in the Great Lakes region, which serves as a central manufacturing hub.
  • There is little internal competition. Typically, there’s just one sewage treatment facility serving a local area. Companies must get approval before raising prices to ensure fair pricing practices.

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  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated $32.3bn in 2025.

Trends and Insights

Rising waste prices offset some losses

  • Since most sewage treatment facilities are regulated public utilities, they must apply to local public utility commissions for rate increases to cover additional costs. Sewage treatment facilities applied for and received rate hikes because larger waste volumes increased costs.
  • Additional trends and insights available with purchase
Sewage Treatment Facilities in the US
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Sewage treatment facilities to enjoy growth as rates continue to rise

  • Consumers earning higher incomes and businesses expanding will create more waste as consumption rises, increasing the need for wastewater treatment services. Sewage treatment facilities will handle more waste, so as their costs push up, they'll apply to their local public utility commissions (PUCs) for rate increases to cover the extra costs. As more companies invest in capital plans and efficiency upgrades, there will be a push for more rate increases in the future.

Biggest companies in the Sewage Treatment Facilities in the US

Company
Market Share (%)
2025
Revenue ($m)
2025
Profit ($m)
2025
Profit Margin (%)
2025
American Water Works Company, Inc.
188.2
64.5
34.3

To view the market share and analysis for all 1 top companies in this industry, view purchase options.

Products & Services Segmentation

Sewage Treatment Facilities in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Primary water treatment, Secondary water treatment and Tertiary watet treatment. Primary water treatment is the largest segment of the Sewage Treatment Facilities in the US.

Trends and Insights

Primary treatment is a crucial first step for cleaning

  • Primary wastewater treatment is used to remove solids and oils from water through various methods. The three methods of reducing contamination are comminution, grit removal and sedimentation. The oil and other debris are properly trashed while the water moves to the next treatment stage. If primary treatment isn't done properly, it can cause issues down the line and damage equipment.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry operates sewage systems or sewage treatment facilities that collect, treat and dispose of waste. The industry includes both public and private sector operators.

What's included in this industry?

Products and services covered in the Sewage Treatment Facilities industry in the United States include Sewage system operation, Sewage treatment plant operation and Disposal of treated waste (sewage).

Companies

Companies covered in the Sewage Treatment Facilities industry in the United States include American Water Works Company, Inc.

Purchase this report to view all 1 major companies in this industry.

Related Terms

Related terms covered in the Sewage Treatment Facilities industry in the United States include wastewater, settling ponds and public utility commission (puc).

Industry Code

NAICS 2017

NAICS 22132 - Sewage Treatment Facilities in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Higher waste prices and rising rates are keeping revenues up. Even though costs have surged, sewage treatment facilities have managed to boost revenue with steady rate hikes ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Irrigation services and water sales have spiked. Agricultural businesses' attraction to other services provided by sewage treatment facilities has led to growth.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

While many manufacturers have in-house wastewater treatment capabilities, quite a few rely on external facilities to handle the task. Many of these producers are located in t...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each state in 2025
  • Number and share of revenue each state accounts for in 2025
  • Number and share of wages each state accounts for in 2025
  • Number and share of employees in each state in 2025

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

There is little internal competition. Typically, there’s just one sewage treatment facility serving a local area. Companies must get approval before raising prices to ensure ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

No company has amassed more than 5.0% of the market. Local governments and municipalities primarily operate sewage treatment facilities.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of American Water Works Company, Inc.'s performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for American Water Works Company, Inc., and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

State and federal governments regulate sewage treatment facilities. Sewage treatment facilities must follow environmental and economic regulations.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Automation is trimming wage expenses, but skilled labor is still essential. New technology is cutting down on manual jobs and keeping wage costs down, but treatment plants st...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2018-2023)
  • Industry Tax Structure (2018-2023)
  • Income Statement (2018-2023)
  • Balance Sheet (2018-2023)
  • Liquidity Ratios (2018-2023)
  • Coverage Ratios (2018-2023)
  • Leverage Ratios  (2018-2023)
  • Operating Ratios (2018-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Sewage Treatment Facilities industry in the United States in 2025?

The market size of the Sewage Treatment Facilities industry in the United States is $32.3bn in 2025.

How many businesses are there in the Sewage Treatment Facilities industry in the United States in 2025?

There are 342 businesses in the Sewage Treatment Facilities industry in the United States, which has grown at a CAGR of 1.2 % between 2020 and 2025.

How may import tariffs affect the Sewage Treatment Facilities industry in the United States?

The Sewage Treatment Facilities industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Sewage Treatment Facilities industry in the United States?

The Sewage Treatment Facilities industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Sewage Treatment Facilities industry in the United States grown or declined over the past 5 years?

The market size of the Sewage Treatment Facilities industry in the United States has been growing at a CAGR of 0.5 % between 2020 and 2025.

What is the forecast growth of the Sewage Treatment Facilities industry in the United States over the next 5 years?

Over the next five years, the Sewage Treatment Facilities industry in the United States is expected to grow.

What are the biggest companies in the Sewage Treatment Facilities industry in the United States?

The biggest company operating in the Sewage Treatment Facilities industry in the United States is American Water Works Company, Inc.

What does the Sewage Treatment Facilities industry in the United States include?

Sewage system operation and Sewage treatment plant operation are part of the Sewage Treatment Facilities industry in the United States.

Which companies have the highest market share in the Sewage Treatment Facilities industry in the United States?

The company holding the most market share in the Sewage Treatment Facilities industry in the United States is American Water Works Company, Inc..

How competitive is the Sewage Treatment Facilities industry in the United States?

The level of competition is moderate and increasing in the Sewage Treatment Facilities industry in the United States.

Related Industries

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Competitors

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Methodology

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

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