As the climate continues to change, we’re seeing more extreme weather — from long droughts to heavy floods. These events are putting a huge strain on water systems around the world. In many places, clean water is getting harder to access, and the need for better water infrastructure is growing fast.

Because of this, the water technology sector is gaining serious attention. What used to be a small part of climate tech is now a major focus for investors, businesses and governments. There’s more interest than ever in smart solutions like water recycling, leak detection and advanced treatment systems.

But here’s the challenge: while innovation is moving quickly, many big companies are still slow to adopt these new technologies. Old systems, high costs and red tape often get in the way of progress.

To keep up with rising demand and growing climate risks, we need more action — not just from startups and innovators, but from the large players who have the power to make a real difference.

Record Investment Reflects Urgency and Opportunity

According to PitchBook’s latest 2025 analysis, venture capital investment in water tech remains strong. Although 2023 set an all-time record at $863.9 million, 2024 followed with an impressive $768.2 million in deal value — nearly double the 2018–2022 average, reflecting sustained confidence in the sector.

Q1 2025 has continued this momentum with over $200 million in VC investment across 25+ deals, showing early signs that this year could be another robust one for the sector. While deal count slightly dipped from Q4 2024, median deal sizes and valuations remain high — a signal of quality-driven capital allocation and deeper investor conviction.

Notably, water treatment, desalination and resource efficiency continue to dominate investor attention. Technologies enabling smart reuse, circular water systems and low-energy purification methods are particularly attractive as industries and municipalities brace for both chronic scarcity and acute supply shocks.

A Standout Innovator: Salinity Solutions

One company making waves is Salinity Solutions, based in Birmingham. They’ve created a new way to clean water using a technology called HyBatch™. It uses less energy and works better than traditional systems — in fact, it can save 30–55% energy.

HyBatch is used in everything from farming and lithium mining to treating wastewater in cities. It’s flexible, efficient, and already showing impressive results:

• Up to 98% water is recovered in industrial process water
• Up to 90% cost savings in industrial wastewater treatment
• 30%+ lower total running costs in municipal applications
• £150 million in forecast revenue by 2030, with a global licensing model

With six patents and growing partnerships around the world, Salinity Solutions is now raising £3.5–5 million to grow and expand to more markets.

See It First-Hand: WWEM Expo 2025

The WWEM Expo, taking place 17–18 September 2025 at the NEC Birmingham, offers a front-row seat to breakthrough water innovations. With over 150 exhibitors, more than 4,000 expected attendees, and a programme covering everything from water quality and treatment to flood response, it’s a key event for connecting with the sector’s leading minds and technologies.

What’s Getting in the Way?

While water tech has a lot of support, there are still challenges. For example, a recent U.S. decision to roll back rules on “forever chemicals” (PFAS) could slow down progress in some areas. In some places, people are still unsure about water reuse — especially for drinking water.

Still, experts agree water tech is more than just an environmental solution — it’s a key part of helping countries and companies stay strong during climate shocks. The technologies that are easy to use, save money, and prove their value will be the ones that succeed.

Looking Ahead: A Decisive Decade for Water Innovation

The United Nations has called this the “Decisive Decade” for climate action. Water technology is now seen as essential to the fight — helping communities, industries, and ecosystems stay resilient. The goal isn’t just to invent great solutions, but to get them out into the real world — quickly, affordably and at scale.