KBS - Environmental Services - Market Insight

M&A ACTIVITY IS RISING IN THE ENVIRONMENTAL SERVICES INDUSTRY

• UK-based environmental firms with advanced digital monitoring, waste-to-energy or sustainability analytics capabilities are attracting significant investor interest.

• Private equity and infrastructure funds remain active, with mid-market M&A focused on regional waste operators, carbon measurement technologies and water management services.

• Cross-border acquisitions are increasing as international buyers seek strategic entry points into the UK’s sustainability and resource efficiency market.

• Joint ventures and partnerships are being driven by industrial policy incentives for green growth, infrastructure decarbonisation, and the push to develop the UK’s circular economy capacity.

OUTLOOK: Due to the tightening of regulations, ESG integration, and the acceleration of environmental infrastructure investment, the sector’s medium-term growth outlook remains robust.

Key challenges include rising energy and operational costs, skills shortages in environmental engineering, and uncertainty around policies regarding recycling and waste reforms.

Nevertheless, the UK environmental services sector is well positioned for continued expansion, consolidation and cross-border investment, particularly in net-zero infrastructure, biodiversity services and digital environmental solutions.

Public concern over environmental issues 2000-2032 25

12pp

Forecasted

20

8pp

15

4pp

10

0pp

5

-4pp

0

-6pp

2000

2005

2010

2015

2020

2025

2030

Change (%) Public concern over environmental issues (Percentage)

Source: IBISWorld