Survey data analysis reveals a decisive upward projection for water sector investments, with 96 percent of the respondents planning to maintain or increase their financial commitments compared to their 2024 investment levels. This overwhelming consensus spans across multiple types of organizations, with approximately three-quarters of respondents expecting to increase spending by up to 50 percent in the coming year. The trend in investment growth is particularly pronounced among water utilities, contractors, infrastructure funds and multinational corporations, indicating that the momentum is broad rather than an isolated activity within specific market segments.

At the upper end of the investment spectrum, the survey data suggests the emergence of ambitious growth strategies, with approximately 4 percent of respondents planning spending increases exceeding 50 percent more than their 2024 spending levels. Multinational corporations are driving the uptick, with 12 percent planning substantial increases, followed by contractors at 6 percent.

View full image: Expected change in investments in 2025 vs. 2024 (%) (PDF)

These outsized commitments suggest growing confidence in the water sector and represent a potential catalyst for broader engagement in the water market, accelerated innovation and project development. The data reveals that nearly 40 percent of respondents now view investment opportunities in water as their top priority, and 33 percent are focusing on portfolio growth, signaling a shift from maintenance-focused investment toward strategic expansion.

“The water sector is experiencing a fundamental shift in how capital flows into critical infrastructure. Even investor-owned utilities are now actively seeking partnerships with infrastructure funds because their capital demands have become so extensive,” explains Michael Albrecht, Managing Partner of Ridgewood Infrastructure. “This isn’t just about fixing individual assets—it’s about addressing systemic challenges at scale, which requires new financing models that go beyond traditional municipal bonds or share issuances.” 

This aligns with survey findings that show 47 percent of utility respondents identify private equity funds as one of their top-three sources of financial investment for the water sector.

View full image: Top 3 priorities for water-related activities in 2025* (%) (PDF)

Current investment levels demonstrate significant capital deployment is already underway. In 2024, 30 percent of respondents invested more than US$500 million each in the water sector. This financial commitment has been primarily driven by infrastructure funds, whose deployment of private capital (approximately US$1.3 billion each) is approaching public sector levels (approximately US$1.5 billion each). Multinational corporations make up much of the remaining investment, reflecting a healthy mix of public and private capital in the sector. 

Private equity activity shows a different pattern. Half of the private equity funds invested less than US$100 million, indicating the prevalence of smaller, potentially more specialized deals that may represent early-stage investments in emerging technologies or bolt-on acquisitions to grow existing platforms. It is also likely a reflection of the fragmented market, which is especially true in North America.

View full image: Investments in the water sector in 2024 by organization type (%) (PDF)

Geographically, respondents in Asia (particularly, China, Singapore, Japan and South Korea) had the highest investment volumes in the water sector in 2024, with 25 percent deploying more than US$1 billion compared to the approximately 10 percent of organizations in the United States and United Kingdom. These regional differences may be explained by the increasing demand and appetite for infrastructure investment throughout Asia and that region’s growing success in attracting and shaping water sector capital flows. It could also be reflective of the more fragmented nature of some of the other geographic markets. Perhaps water sector investments in other markets are either not being scaled or are just not completed. However, Western players remain significant, as roughly one-third of the organizations in the US and continental Europe (excluding the UK) invested more than US$500 million in the water sector in 2024.

View full image: Amount invested in the water sector in 2024 by primary location (%) (PDF)

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