Water management is an attractive platform for both technology corporations and investors due to its strong secular trends, regulatory and technology disruption, and fragmented landscape.

First version published June 2020, updated October 2021

What is driving water technology investment?

Water technology investment is driven by strong underlying drivers, including:

What are the end markets for water management technology?

There are four major end markets for water management products:

  1. Agriculture
  2. Industrial
  3. Municipal
  4. Residential and commercial


Agriculture has experienced a recession since 2014 which has suppressed investment in equipment. Long term agricultural output needs to double by 2050 and agriculture will face increasing competition for water from other needs such as urban growth. This means it needs to use water more efficiently.


Waste regulation and high purity are driving investment in the industrial segment:

Municipal water and wastewater investment

What are the key water management technology segments?

The water management technology sector can be broken up into 5 major categories with sub-product groups that are sold across multiple end markets:

  1. Water and waste treatment
  2. Flow control
  3. Infrastructure
  4. Point of Use (PoU)
  5. Smart technology

Water and wastewater treatment products offer investment opportunities in strong growth markets with high levels of fragmentation. Point-of-use treatment systems will likely be an attractive market due to high market fragmentation and growing demand. Smart water technology is a cause of high disruption across many markets but is quickly becoming consolidated among major players.

Water and wastewater for Private Equity (PE) investors

Water and wastewater treatment has been an attractive area of investment for PE investors since 2015. There is significant activity in both large scale and PoU:

Water PE deals per segment 2020

For developments across the water and waste treatment, flow control, infrastructure, and commercial and residential segments.

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