In the current SektorReport Industrials for the second quarter of 2025, we're focusing on the global water infrastructure sector, which is emerging as an attractive area for investment. The worldwide market volume is currently estimated at around USD 500 to 600 billion annually, with significant growth momentum in key areas.

The sector is driven by a series of unstoppable global trends: population growth and urbanization are increasing the demand for clean water and efficient wastewater disposal. At the same time, climate change is intensifying challenges like water scarcity and extreme weather events, which calls for more resilient and intelligent solutions. Stricter regulations and environmental standards also mandate continuous investment in modern facilities. Additionally, there's a huge need to refurbish outdated infrastructure in industrialized nations, alongside technological advancements that boost efficiency and sustainability.

These factors create an environment where water infrastructure represents an essential, crisis-resilient service, secured by government funding and long-term concessions. High barriers to entry protect established players, while the often-fragmented market offers attractive consolidation potential for targeted M&A activities. Last but not least, the sector's direct contribution to the UN Sustainable Development Goals makes it highly appealing to ESG-oriented investors.

A recent example of the growing interest in this segment is the acquisition of SCHELL Armaturen GmbH & Co. KG by Paragon Partners. SCHELL Armaturen, a leading manufacturer of sanitary fittings, plays a crucial role in drinking water hygiene and water efficiency in buildings. This acquisition highlights how investors can gain access to important technologies and strong market positions in the dynamic water sector through strategic takeovers.

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In this report, we'll provide you with in-depth insights into the market volumes and growth drivers of the water infrastructure sector.

Our SektorReports are available in German language. If you have further questions regarding this topic, feel free to get in touch.