1、2026 Water M&A ReportTurning the cornerSTUDYCover Larysa Pashkevich/iStockThe global water sectors M&A market rebounded in 2025,posting its first year-on-year growth since the post-pandemic peak of 2021.With 436 completed transactions an 8%increase from 2024 the sector demonstrated renewed investor

2、interest despite persistent macroeconomic headwinds.The recovery was welcome following three years of decline.Deal counts had fallen from 760 transactions in 2021 to just 403 in 2024,while deal values dropped from USD 92.8 billion to USD 10.6 billion.This downturn reflected rising interest rates,inf

3、lationary pressures,and geopolitical uncertainty that kept capital on the sidelines.Yet conditions remained challenging in 2025:Global trade tensions,ongoing geopolitical conflicts,and regulatory uncertainty kept both financial and strategic investors cautious.The fact that activity recovered at all

4、 signals waters strategic relevance:waters strategic relevance is becoming impossible to ignore.The fundamentals driving long-term investment remain compelling.Aging infrastructure,increasing regulatory scrutiny around water quality and PFAS contamination,climate-driven water stress,and accelerating

5、 demand for water-efficient and AI-related technologies all point to sustained capital requirements.As these pressures intensify,investors appear increasingly willing to look past near-term volatility to position themselves in a sector where scarcity creates value and necessity drives demand.Whether

6、 this marks sustained recovery or temporary reprieve will become clear in 2026.3Roland Berger Water M&A Study 2026While the 8%increase in transaction count marks a welcome reversal,the scale of recovery remains modest when viewed against the sectors recent history.The 436 deals completed in 2025 rep