The Sewage Treatment Plant (STP) Market size in Bangladesh is rapidly gaining attention as the country faces a growing wastewater crisis. Imagine the mighty rivers of Bangladesh—lifelines like the Buriganga and Meghna—now clogged with untreated sewage, industrial effluents, and urban waste. As Bangladesh moves toward becoming one of the world’s fastest-urbanizing nations, with an urban population projected to surpass 71 million by 2024, and cities like Dhaka expanding at breakneck speed, the demand for effective STP solutions has never been higher (World Bank, 2024).
Compounding this, Bangladesh’s industrial sector, which accounts for 34% of GDP and has seen average output growth of 8% over the past decade, is booming in textiles, household, hospitals, pharmaceuticals, and manufacturing—yet only 16% of domestic wastewater is safely treated nationwide, leaving millions at risk of waterborne diseases and environmental collapse (Dhaka WASA, 2023; Bangladesh Bureau of Statistics, 2023).
Bangladesh’s escalating wastewater crisis, fueled by rapid urbanization and industrial growth, threatens public health, ecosystems, and sustainable development, highlighting the urgent need for effective sewage management.
A critical question arises: What is the true market size for STP in Bangladesh, and what factors are shaping its future? With public data scarce, this blog offers an in-depth analysis of the STP market, highlighting the business opportunities, technological trends, and regulatory environment shaping sustainable water management in Bangladesh.
What are Sewage Treatment Plants (STPs)?
STP stands for Sewage Treatment Plant, which refers to the system’s function of treating and purifying wastewater. Sewage Treatment Plants (STP) in Bangladesh are not just for cleaning wastewater. They play a big role in ensuring the country grows safely and sustainably. As more people move to cities and the population increases, treating wastewater properly is even more important. Effective sewerage treatment helps prevent water pollution, protects public health, and supports a cleaner environment for future generations.
The Need for Sewage Treatment Plants in Bangladesh
Bangladesh’s rapid urban growth, with cities like Dhaka, Chittagong, and Khulna expanding, has overwhelmed existing wastewater infrastructure. The country produces an estimated 5,326 million cubic meters of wastewater annually, of which a significant portion remains untreated, contributing to environmental degradation and public health crises (Ahmed & Rahman, 2022).
For instance, Dhaka alone generates 2 billion liters of sewage and stormwater daily and 230 tons of fecal waste end up in open water bodies in Dhaka daily (Unicef-2025), with only the Dasherkandi Centralized STP—South Asia’s largest, capable of treating 500 million liters per day—making a dent in this challenge (Dhaka WASA, 2023; The Daily Star, 2024). The lack of adequate sewer networks, especially in peri-urban and rural areas, exacerbates the issue, with untreated wastewater contaminating 405 active rivers and threatening aquatic ecosystems (Daiki Axis Bangladesh, 2023).
STPs are critical for mitigating these challenges by treating wastewater through physical, chemical, and biological processes, ensuring safe discharge or reuse. Technologies like the Activated Sludge Process, Membrane Bioreactors (MBR), and Johkasou systems are gaining traction for their efficiency and sustainability (Netsol Water, 2023; Daiki Axis Bangladesh, 2023). Beyond environmental protection, STPs support Bangladesh’s Vision 2041 for sustainable development by enabling water reuse for irrigation and reducing reliance on freshwater sources (Government of Bangladesh, 2021).
Estimating the Sewage Treatment Plant (STP) Market Size in Bangladesh: What’s the Business Opportunity?
Precise data on the Sewage Treatment Plant (STP) market size in Bangladesh is limited due to fragmented reporting and a lack of centralized industry analysis. However, we can derive an estimate by considering wastewater generation, existing infrastructure, and planned investments.
Wastewater Generation and Treatment Gap:
Bangladesh faces a critical wastewater management challenge, generating approximately 5,326 million cubic meters of wastewater annually from domestic and industrial sources combined (Ahmed & Rahman, 2022). With only 16% of domestic wastewater currently treated, roughly 4,474 million cubic meters remain untreated, underscoring a massive demand for enhanced treatment infrastructure (Dhaka WASA, 2023).
In Dhaka alone, the capital produces 2 billion liters of sewage daily, yet facilities like the Dasherkandi Sewage Treatment Plant (STP), with a capacity of 500 million liters per day, and the Pagla STP, handling 200 million liters per day, address only a fraction of this volume, highlighting a significant treatment gap (Dhaka WASA, 2023; The Daily Star, 2024).
Cost Benchmarks:
The cost of developing and operating Sewage Treatment Plants (STPs) in Bangladesh varies significantly based on scale and technology. For large-scale projects, the Dasherkandi STP, constructed at a cost of Tk 3,482 crore (approximately USD 320 million), serves as a benchmark for major infrastructure investments (Dhaka WASA, 2023).
In contrast, smaller, prefabricated STPs, such as those utilizing Johkasou or other compact systems, have a much lower price range, costing between USD 50,000 and USD 500,000 depending on capacity, which can vary from 5 cubic meters per day to 1 million liters per day (Daiki Axis Bangladesh, 2023; Netsol Water, 2023).
Additionally, the operating costs for a 1 million liters per day STP are estimated at USD 15,000 to USD 50,000 per month, based on regional data from India, highlighting the ongoing financial commitment required for maintenance and operation (Netsol Water, 2023).
Market Size Projection:
The global sewage treatment facilities market is projected to reach USD 375.92 billion by 2029, growing at a 7% CAGR (Fortune Business Insights, 2023). While Bangladesh’s share is smaller, its rapid urbanization and regulatory push suggest significant growth potential.
The market for Sewage Treatment Plants (STPs) in Bangladesh is conservatively estimated at USD 2–3 billion by 2030, encompassing the construction of new treatment plants, the operation and maintenance of existing facilities, and the upgrading of outdated systems. This projection reflects the urgent need to address the country’s significant wastewater treatment gap, driven by rapid urbanization and industrial growth.
Notably, for Dhaka alone, the government, through Dhaka WASA’s master plan, plans to invest USD 1–1.5 billion to achieve 100% sewage treatment coverage by 2030, involving the development of five new STPs to manage the capital’s 2 billion liters of daily sewage (The Business Standard, 2023).
Factors Shaping the Market’s Future
Several factors will influence the growth and direction of the STP market in Bangladesh:
Urbanization and Population Growth:
With an urban population projected to reach 100 million by 2040, the demand for STPs is expected to surge, particularly in densely populated cities (Bangladesh Bureau of Statistics, 2023). Residential complexes, hospitals, and garment factories are increasingly adopting compact STP solutions (Greenify Environmental Technology Ltd., 2023).
Industrial Expansion:
Industries like textiles and pharmaceuticals, which contribute significantly to GDP, require Effluent Treatment Plants (ETPs) and STPs to comply with environmental regulations (Netsol Water, 2023). The need to meet global standards for exports drives demand for advanced treatment systems (Export Promotion Bureau, 2023).
Government Initiatives and Regulations:
The Bangladesh National Building Code (BNBC) and environmental regulations mandate proper wastewater treatment for new constructions (Netsol Water, 2023). Public-private partnerships and foreign investments, such as China’s funding for Dasherkandi, are accelerating STP development (Dhaka WASA, 2023).
Technological Advancements:
Innovations like Johkasou, MBR, and BioPipe technologies offer decentralized packaged type STP, compact, and energy-efficient solutions suited for Bangladesh’s space constraints (Daiki Axis Bangladesh, 2023; BioPipe, 2023). Energy recovery from wastewater, potentially yielding 1,986 GWh annually, could make STPs more cost-effective (Ahmed & Rahman, 2022).
Challenges:
High initial investment costs and inadequate sewer networks, as seen with Dasherkandi’s lack of connectivity, hinder progress (The Daily Star, 2024). Limited awareness and infrastructure in rural areas pose barriers to comprehensive coverage (Netsol Water, 2023).
Key Players in the Market
Leading STP suppliers in Bangladesh include:
- Daiki Axis Bangladesh: Specializing in Japanese Johkasou technology, leading sewage treatment plant supplier in Bangladesh. They provide innovative and eco-friendly wastewater solutions for industries, communities, and residential areas, ensuring clean water and a sustainable future. They have completed 50+ projects all over Bangladesh.
- Netsol Water: Known for sustainable, efficient STP solutions (Netsol Water, 2023).
- Greenify Environmental Technology Ltd.: Offers tailored solutions for residential and industrial needs (Greenify Environmental Technology Ltd., 2023).
- Green Genesis Engineering Limited: Focuses on user-friendly, high-performance STPs (Green Genesis Engineering Limited, 2023).
- Charm Ltd.: Supplies packaged and MBR-based STPs (Charm Ltd., 2023). The main goal is Charm is to be a forefront catalyst in revolutionizing Bangladesh’s environment sector, setting global standards in water and wastewater treatment, and fostering a greener future.
Conclusion
The market for sewage treatment plants in Bangladesh, estimated at USD 2–3 billion by 2030, is poised for significant growth driven by urbanization, industrial expansion, and regulatory mandates. However, challenges like high costs, inadequate infrastructure, and limited rural coverage must be addressed.
By leveraging public-private partnerships, innovative technologies, and increased awareness, Bangladesh can bridge the treatment gap, protect its rivers, and ensure a sustainable future. This analysis, despite the scarcity of public data, underscores the immense potential and urgent need for investment in the STP sector.