Water firms are getting bigger

Mergers among utilities and suppliers suggest a shift toward fewer, larger buyers and a growing demand for integrated water technology and services

20 Jan 2026

The smart water industry is being shaped by a broader wave of consolidation across utilities and infrastructure, as recent mergers underline the growing importance of scale, integration and long-term investment capacity.

At the utility level, American Water and Essential Utilities have agreed to merge, a deal that would create one of the largest regulated water and wastewater operators in the US. The combined group would serve about 4.7m customer connections across 17 states, giving it a larger operating footprint and greater ability to plan and finance long-term infrastructure upgrades.

For technology providers, the rise of larger utility platforms is likely to influence purchasing decisions. Bigger operators tend to standardise systems across multiple service territories, affecting how technologies such as advanced metering, leak detection and network monitoring are selected and rolled out. Consolidation also concentrates buying power, increasing competition among vendors seeking to secure contracts from a smaller number of large customers.

The trend extends beyond utilities into building and industrial water infrastructure. Watts Water Technologies has acquired Haws, a supplier best known for emergency safety and hydration equipment, including eyewash and safety shower stations. Watts said the deal broadens its product range and supports a more comprehensive approach to serving customers, while Haws has presented it as a way to deliver expanded capabilities and more consistent support.

Although Haws’s products are not primarily focused on smart metering or internet-connected systems, they play a central role in water safety and regulatory compliance within facilities. Their addition points to rising interest in integrated offerings that combine equipment, reliability and service across commercial, industrial and institutional settings.

Taken together, these transactions reflect a wider shift in infrastructure markets. Schools, hospitals, factories and commercial campuses are upgrading ageing water systems and increasingly favour suppliers that can provide dependable products alongside long-term service at scale. Supply chain pressures and tighter operational requirements are reinforcing this preference.

Consolidation also brings uncertainty. Customers are likely to scrutinise pricing, product availability and service continuity as integrations progress. Even so, the direction of travel is clear. As utilities and infrastructure providers grow larger and more integrated, companies that align their products and service models to the needs of fewer, bigger buyers are likely to be better placed as smart water investment continues.