M&A expertise in our Water technology market update 2024

2024 has been a positive year for the water technology sector, with strong M&A activity observed alongside an increased global focus towards sustainable water management. Transactions within the space were reflective of both continued commitment from industry players to improve their solution offerings as well as further recognition of attractive opportunities from private equity and venture capital players.

The unprecedented focus on the sector has driven up valuations for water technology businesses, as companies strategically position themselves to address the growing market demand for sustainable water solutions. The market is driven by increased sustainability pressure on industry, advancements in treatment technologies, uptake of digital/smart water management systems, decentralisation of water treatment and increased focus on the circular economy.

As the global community intensifies efforts to address water-related challenges, M&A activity in the water technology sector is poised to play a pivotal role in shaping sustainable solutions for the future.

We analyse market developments and deal activity in the following chapters:

• Market overview and outlook: the European and German water technology industries, both characterised by three key pillars ‒ water abstraction and treatment, distribution, and wastewater collection and treatment ‒ place a strong emphasis on smart water management systems and advanced water treatment technologies to optimise water usage. Additionally, growing sustainability pressures, coupled with the prioritisation of related initiatives, are anticipated to drive increased investment in the sector with new technologies being funded by early-stage investors and industry players boosting R&D activities.
• Deal activity and valuation: M&A deal activity has continued to grow in 2024, reflecting the ongoing focus on advancing sustainable, future-proof systems while meeting evolving regulatory requirements. Market segmentation, combined with competitive dynamics within the sector, is expected to further accelerate this trend. This growth is further supported by a favourable macroeconomic outlook and an improved development of financing markets.

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