February 4, 2026
As infrastructure investors navigate persistent macroeconomic headwinds, water infrastructure is demonstrating the resilience that comes from fundamental scarcity. Our latest analysis reveals how the sector's M&A market reversed three years of decline - and what that recovery signals about where capital is heading next.
After sliding from 760 transactions and USD 92.8 bn in deal value in 2021 to just 403 deals and USD 10.6 bn in 2024, the global water sector posted an 8% increase in transaction volume in 2025, with 436 completed deals and USD 26 bn in disclosed value. The recovery came despite ongoing geopolitical tensions, regulatory uncertainty, and trade conflicts that kept many investors cautious throughout the year.
The rebound wasn't driven by mega-deals. Instead, mid-market transactions and technology-focused acquisitions dominated, with buyers prioritizing operational capabilities and platform building. Several headline transactions exceeded USD 1.5 bn, including Ecolab's acquisition of Ovivo Electronics and Veolia's WTS stake acquisition, both targeting advanced
water treatment technologies and digital capabilities that commanded premium valuations.
Geographically, North America and Europe maintained their 90% share of deal volume, but Brazil has emerged as a standout story. The country advanced four major infrastructure concessions in in the second half of 2025 - including a USD 2.8 bn Pernambuco project serving seven million people — demonstrating how regulatory reform can rapidly unlock investable opportunities at scale.
Our analysis identifies three strategic themes that will define the market in 2026: the narrowing window to acquire digital capabilities before premiums widen further, the opportunity in emerging markets where policy shifts are creating platforms before competition intensifies, and the financing and due diligence capabilities required to compete for larger transactions as the market scales.
Download the full report for detailed transaction analysis, regional market dynamics, valuation trends across disclosed deals, and actionable insights.
RB contact
Bastien Simeon, Partner