Europe’s War on Forever Chemicals Becomes Big Business

New EU drinking water limits coming into force in 2026 are accelerating investment in PFAS treatment and reshaping Europe’s water sector

5 Feb 2026

Europe’s tightening rules on so-called “forever chemicals” are turning PFAS clean-up into a growing market for the water sector, as regulation drives investment, competition and changes in business strategy.

Momentum has increased since the EU’s revised Drinking Water Directive introduced binding limits on PFAS and harmonised monitoring requirements that took effect in January 2026. Member states must now test drinking water routinely and act when thresholds are breached. For water utilities, compliance has shifted from a long-term planning exercise to an immediate operational concern. For suppliers, it is creating a more predictable source of demand.

Market analysts say the sector is moving beyond pilot projects towards broader infrastructure upgrades. Bluefield Research estimates that the new EU standards could unlock a multibillion-euro opportunity over the next decade, as municipalities invest in treatment systems capable of consistently removing PFAS from water supplies.

Industry participants describe the change as structural. Regulation is pushing PFAS remediation from a niche technical issue into a core element of public health protection and system resilience across Europe’s water networks.

Large groups such as Veolia, AECOM and Xylem are among the companies active in PFAS-related treatment, engineering and advisory work, according to industry reports. Utilities and consultancies are positioning themselves to support compliance through monitoring, risk assessment, system design and long-term operations, though approaches differ by country and customer base.

Competitive dynamics are also evolving. Utilities are increasingly favouring integrated solutions over standalone technologies, encouraging partnerships and, in some cases, consolidation across the supply chain. This reflects a broader shift towards end-to-end project delivery and longer-term service contracts.

Equipment suppliers including Xylem have highlighted modular treatment systems, which can be deployed more quickly and adapted to existing infrastructure. At the same time, business models are moving towards service agreements that offer predictable costs and ongoing compliance support.

Financing remains a challenge, particularly for smaller municipalities, and questions persist over how costs should be shared. Even so, the direction of travel is clear. Regulation, innovation and public scrutiny are combining to expand Europe’s PFAS remediation market, with sustained activity expected in the years ahead.