(MENAFN- GlobeNewsWire - Nasdaq) The industrial oil water separators market continues to expand sharply due to tightening discharge standards worldwide, pushing companies to adopt cleaner and smarter wastewater treatment systems that ensure regulatory compliance while offering cost-effective operations and sustainability benefits.

Austin, June 18, 2025 (GLOBE NEWSWIRE) -- The industrial oil water separators market size was valued at USD 13.32 billion in 2024 and is expected to reach USD 17.83 billion by 2032, growing at a CAGR of 3.71% over the forecast period of 2025–2032. Due to changing environmental regulations and increased industrial activity around the world, demand for Industrial Oil Water Separators is increasing at a rapid pace. With manufacturers, oil & gas operators, and marine businesses seeking better performance on effluent streams and water reuse, oil-water separation technologies utilizing smart automation and compact modular design are being widely embraced.

The U.S. industrial oil water separators market is projected to grow from USD 3.40 billion in 2024 to USD 4.40 billion by 2032, registering a CAGR of 3.28%. The growth is driven by stringent environmental regulations, growing emphasis on water treatment, and increasing demand from major end-use industries, including manufacturing and oil & gas. The adoption of efficient oil-water separation technologies will continue to increase, with sustainability high on the agenda.

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Key Players:

• Alfa Laval
• Donaldson
• Clarcor
• Andritz
• WesTech Engineering
• Wartsila
• Compass Water Solutions
• Filtration
• Parker-Hannifin
• Recovered Energy

Industrial Oil Water Separators Market Report Scope:

Report Attributes	Details
Market Size in 202 4	USD 13.32 Billion
Market Size by 2032	USD 17.83 Billion
CAGR	CAGR of 3.71% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Drivers	. Strict Environmental Regulations Drive Global Adoption of Advanced Industrial Oil-Water Separators.

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Above-Ground Systems and Oil & Gas Sector Drive Dominance in the Industrial Oil Water Separators Market

By Type:

The Above-Ground Oil Water Separators (OWS) segment dominated the market, accounting for 52% of the industrial oil water separators market share. These types of systems are especially desirable because they are easier to install, more accessible for servicing, and require less infrastructure than a below-ground system. Above-ground units are also popular among manufacturing, marine, automotive, and other industries due to their retrofit flexibility and fast implementation in existing facilities. In addition, growth in the in-ground modular and skid-mounted above-ground units has been realized over the years due to advantageous characteristics offered by these products when local regulations govern wastewater discharge and where site space is scarce.

By End Use:

The Oil & Gas segment dominated the industrial oil water separators market, accounting for 34% of the market share in 2024. The sector holds this dominance due to its high production of oily wastewater during its drilling, exploration, refining, and storage processes. The need to minimize the oil outlet to the environment, as directed by the regulatory authorities, has contributed to the capital investments by the companies operating in this segment on high-performance separation systems. Treatment even recovers some oil, further saving money and helping oil & gas operations stay compliant with the environment. Increased demand for offshore and onshore production activities for fossils also increases the demand for reliable oil-water separation technologies.

North America Leads with Regulatory-Driven Adoption, While Asia-Pacific Emerges as Fastest-Growing Region

North America dominated the industrial oil water separators market, holding a significant 34.02% share in 2024. Oil-water separation for various applications, particularly in petrochemical, manufacturing, and power generation sectors, has become a compliance mandate led by regulatory drivers such as the U.S. Clean Water Act and standards set by the EPA. Both advanced separator technologies – especially automated, real-time monitoring units have accelerated investment to achieve corporate sustainability goals, to reduce discharges as well as to recover hydrocarbons. In addition, the intensification of shale gas operations in the U.S. has increased the demand for efficient water treatment infrastructure.

The Asia-Pacific region is the fastest-growing market for industrial oil water separators, due to rapid industrialization and the expanding role of manufacturing hubs. With China, India, and the rest of Southeast Asia scrambling to build infrastructure and heavy industry, the amount of wastewater being produced is ramping up, too. Advanced separators with coalescing media and modular automation are being adopted by industries to meet stringent environmental policies such as the China Water Pollution Prevention Action Plan and new effluent standards in India. Increasing recognition of water stress and ESG conformance is leading to greater focus by international and local suppliers to offer specific separator solutions cost-effectively to industrial ecosystems present in APAC.

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