Global water sector sees surge in investment, with more growth expected in 2025
A new report by global law firm White & Case LLP, Currents of Capital 2025, reveals a surge in investment into the global water sector during 2024, with even greater capital deployment anticipated in 2025. The findings highlight the sector's growing importance in addressing global challenges such as water scarcity and sustainable development.
The report draws on a survey of more than 300 senior leaders from across the water value chain, including utilities, multinational corporations, investment funds, engineering firms, and technology providers in over 20 countries.
According to the study, 30% of global investors deployed more than US$500 million in 2024, with 15% investing over US$1 billion. This wave of capital was 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 accounted for much of the remaining investment.
Looking ahead, 72% of organisations expect to invest more in 2025 compared to the prior year, reflecting rising confidence in the sector and a growing understanding of water’s role in “providing economic security and sustainable development.” At the high end, about 4% of organisations are planning spending increases of more than 50% year-on-year, indicating the development of ambitious expansion strategies.
The report also finds that 40% of respondents now view investment opportunities in water as their top priority
The report also finds that 40% of respondents now view investment opportunities in water as their top priority, with 33% focused on portfolio growth. This marks a shift from traditional maintenance-based investment toward more strategic expansion. Technology is a key part of that transition, with over 60% identifying AI as the most likely driver of transformation in the sector.
Geographically, North America and Western Europe dominate current investment activity, but the landscape is changing. Asian investors are expanding into Western markets to gain access to advanced water management technologies, and 29% of all respondents are exploring new regions. Notably, 40% of infrastructure funds now identify the Middle East as a major growth opportunity.
Cross-border investment between North America and Europe remains strong, supporting the transatlantic exchange of knowledge and capital and reinforcing collaborative development in water infrastructure.
Yet despite growing optimism, challenges remain. Water scarcity and stress were viewed as the most important challenges facing the water sector, with 88% of respondents rating them as important or very important. Compounding the issue, 81% cited the high cost of technological innovation as a significant obstacle, underscoring the need for both innovation and affordability in water solutions.
As investment momentum builds, the findings of Currents of Capital 2025 signal a pivotal moment for the water sector — one defined by urgent challenges but also unprecedented opportunity.
