An executive perspective on the water sector

Key Takeaways

• Climate extremes are accelerating the need for resilient water systems and innovation
• Water reuse is becoming central to industrial and municipal water security strategies
• Digitalisation and AI are increasing demand for efficient, data-driven water management
• Utilities face aging infrastructure alongside growing population and capacity demands
• Collaboration and circular water solutions present major opportunities for the sector

Climate risk and system resilience 

How are climate shocks reshaping priorities in the water industry? 

Climate extremes place additional pressure on already stressed water systems. Floods can overwhelm infrastructure, contaminate water sources and disrupt treatment processes, while droughts and wildfires accelerate water scarcity and damage ecosystems.

For the water and wastewater industry, this creates urgency. The goal should be to strengthen water security, improve operational resilience and boost adaptive capacity, while also constantly developing and introducing new solutions that guarantee high-quality water treatment for safe reuse. Weather patterns are becoming increasingly unpredictable, consequently industries and cities need to be less dependent on freshwater sources to keep running. With innovative technologies, we can strengthen climate resilience, secure stable operations and ensure a continuous water supply. Singapore is a strong example, by diversifying its water sources, the country has reduced its reliance on freshwater imports from Malaysia and built a more resilient, self-sufficient system.

Solutions need to move beyond short-term fixes and instead support long‑term system robustness. This is where advanced, efficient and scalable technologies play a critical role in enabling industries and municipalities to build truly resilient water infrastructure.

Revolutionary solution boosts Singapore’s world-leading sustainable water drive

In a nation famed for its ground-breaking water management, Alfa Laval has emerged as a leading player with the delivery of innovative treatment technology that promises to help meet Singapore’s major supply challenges.

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Water security and reuse  

Water security is emerging as a defining force in the water and waste sector. What will this mean for freshwater strategies by 2030? 

One of the most decisive shifts is the rapid expansion of industrial water management. Companies are seeking to protect operations from climate volatility while reducing dependence on freshwater withdrawals.

One of the various strategies to ensure water security for industries is looking at industrial water reuse. We are seeing a clear shift away from mixing all effluents into a single wastewater stream simply to meet regulatory criteria, and instead toward treating individual waste streams closer to their point of origin. By segregating the waste streams and adopting the most suitable technologies for each one, companies can more effectively reuse water and, in some cases, even extract value from the waste itself. Wastewater treatment holds significant untapped potential, from recovering valuable nutrients to separating organic matter that can be converted into biogas and capturing energy for heat recovery. When these resources are efficiently extracted, the overall quality of water for reuse improves substantially.

For the sector, industrial water management represents both an opportunity and a responsibility: supporting customers in building resilience, scaling circular water approaches and helping communities and industries move from reactive responses to proactive adaptation.

Watch the video in which Eline Suijlen, Water Industry Manager at Alfa Laval, presents Alfa Laval’s solutions designed to support water stewardship.

Advanced treatment and circular water solutions

Which water reuse and treatment solutions are gaining traction?

In regions conscious about water security, reuse is driving demand for advanced treatment technologies. Tertiary treatment solutions like IsoDisc® cloth media filters play an important role in improving effluent quality and enabling safe discharge or non-potable reuse. But we need to ensure that reuse does not become a buzzword companies use to position themselves as sustainability enablers without delivering real impact. Any advanced wastewater‑recycling technology, whether in industrial or municipal applications, must be carefully assessed to verify that reuse does not come at the cost of excessive energy consumption, high chemical demand or over-concentrate pollutants. A truly sustainable approach requires looking at the full process holistically, evaluating not only the circular reuse of water but also the opportunities to recover additional value from the wastewater stream, such as solids and nutrients. Only by considering the entire system, reuse can deliver meaningful, long‑term environmental and operational benefits.

A recent example comes from a plant‑based food and beverage producer in North America, where an Alfa Laval team of experts supported the customer in optimising one of their waste streams by concentrating the product. Thanks to this approach, the manufacturer achieved a 78% reduction in carbon emissions associated with transportation, relative to the transported product volume. In addition, the AlfaVap evaporation system helped them recover up to 15,300 litres of condensate per hour, further strengthening both resource efficiency and water circularity. The objective is clear: We need to work toward reducing pressure on freshwater sources and supporting circular water economies.

Setting the standard for water recovery and circular reuse in oat drink production

As plant-based drinks producers look to increase production in a global market predicted to rise to USD 71.46 billion by 2030 (Facts & Figures Research, 2023), innovative leaders in the industry are incorporating ‘sustainability as standard’ and building circularity into their expanding operations.

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Operational challenges for utilities

What operational challenges should utilities prepare for? 

Aging infrastructure is one of the most pressing challenges facing cities today. Many urban areas are working to expand their treatment capacity to keep pace with growing populations. Regions like North America and Europe were frontrunners in building wastewater infrastructure, but much of that equipment is now decades old. While many existing plants still perform reliably, rising demand means it is time for utilities to consider new investments, particularly in technologies that can thicken and dewater sludge more efficiently. Improving these processes reduces the volume that requires transport and further treatment, lowering operating costs and environmental impact.

At the same time, the industry is shifting toward water resource recovery facilities, where wastewater is not just treated but transformed into value for the community. Increasingly, cities are reclaiming water for groundwater replenishment, irrigation and other non-potable uses, helping secure water supplies in the face of climate volatility. Sludge is being converted into biogas, supplying renewable energy to local grids and reducing electricity costs. We cannot forget about the importance of regulation as a driver, so we need technologies that ensure compliant wastewater treatment. These developments signal a broader movement from wastewater treatment to resource recovery and circularity, reflecting the sector’s commitment to resilience and future-fit performance.

Southern California zeros in on circularity in wastewater treatment

Establishing a reliable, energy-efficient and viable water system is a top priority in Southern California, where water scarcity and rising demand are driving positive change. And for Orange County Sanitation District (OC San), this means increasing efficiency at key stages of the wastewater treatment process.

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Market opportunities and collaboration

Where are the biggest opportunities for the water and wastewater industry? 

Collaboration is key. This is becoming more and more evident among all players in the wastewater industry. With an estimated 90% of the Sustainable Development Goals dependent on water, the sector holds a vital responsibility in accelerating progress toward the 2030 Agenda. Because water is inherently intertwined with energy use and chemical demand, optimizing water consumption delivers far-reaching benefits. Every reduction in water use can simultaneously decrease chemical consumption, lower energy requirements and ultimately shrink the CO₂ footprint, creating a multiplier effect for sustainability.

Companies like Alfa Laval do not deliver standard, one‑size‑fits‑all solutions. Instead, we work closely with industrial users to help them reduce their water footprint and overall water consumption. Every case is unique. In some situations, our experts focus on water recovery and reuse within or around the production plant; in others, the focus lies inside the factory itself, improving efficiency at process level. For example, technologies such as Alfa Laval Extend™ can help reduce fouling in heat exchangers used for cleaning pasteurisers, an application where hygiene is critical, particularly in sectors like dairy. By minimising fouling, the system dramatically lowers water consumption and supports more efficient, reliable cleaning cycles. This type of targeted optimisation shows how collaboration and the right technology can meaningfully improve resource efficiency while supporting long‑term operational resilience.

Listen to Alfa Laval’s subject‑matter experts advise on selecting solutions that meet both cleanliness and sustainability benchmarks.

Digitalisation and AI in water management

How will digitalisation in the water sector evolve in the coming years? 

Digital transformation in the water sector has been underway for years, but the AI surge of 2025 has pushed progress into a new gear. Demand for data‑driven, real‑time monitoring is rising fast, and this is supported not only by governments but also private finance. Automation integrated in equipment, from sensors to predictive optimisation, is setting a new standard for efficient water management. Operators can respond to conditions instantly rather than reactively, which is raising the bar for operational performance across the entire treatment process.

As we move toward circular and resource efficient models, digital tools and AI-enabled decision support will be key to monitoring performance, continuously optimising processes and unlocking further reductions in water, energy and chemical consumption, reinforcing the link between digitalisation and sustainability.

Market outlook beyond 2030

How do you expect the market to evolve?

The global water and wastewater treatment market is expected to continue growing strongly through the end of the decade and beyond. To put this into context, only 7% of water is reused in Europe and half of the world’s wastewater is still not treated today, especially in the Global South. Water is essential for life, food production and economic prosperity. The increasing global population, leading to an increase demand on food, medicine and energy drives the need for a more sustainable use of our water resources.

However, although wastewater treatment services, industrial water treatment, digital water solutions and advanced reuse technologies are all projected to expand, progress ultimately depends on a mindset shift. By empowering each and every one of us and remember the importance of our relationship to nature and water, these solutions will achieve their greatest impact. Water is the currency of the planet. If it stops circulating, becomes too polluted, or is unevenly distributed, it will create geopolitical tensions and economic stress. Taking good care of water and wastewater is therefore essential. Companies and industries must also assume a role in raising awareness and educating society on how we can all contribute to creating a positive impact on water.

How can we help you?

Alfa Laval brings decades of experience in the water and wastewater treatment industry. Our experts have led innovations and developed patented technologies across a wide range of applications, from sludge dewatering and thickening to desalination, biogas and beyond.

With deep process knowledge and proven solutions, we help you tackle complex challenges and achieve efficient, reliable and future-fit operations.