Europe’s water services sector continues to provide reliable drinking water and wastewater treatment to hundreds of millions of people, according to a new report from EurEau.
The latest assessment shows that 97% of Europeans are connected to public drinking water networks, while around 90% have access to wastewater collection and treatment services.
The report, Europe’s Water in Figures 2026, highlights a sector that is maintaining high service standards while keeping costs affordable. Households across Europe spend roughly 1% of their income on water services, making water among the most affordable essential utilities on the continent.
However, the findings also reveal mounting pressure on Europe’s water services providers. Ageing infrastructure, increasing regulatory demands, emerging contaminants such as PFAS, climate-related risks and rising operational costs are creating a growing need for long-term investment to safeguard future resilience.
High connection rates demonstrate sector success
The report paints a picture of a mature and highly developed water sector serving more than 550 million customers across Europe. Water operators provide essential services to households, hospitals, food producers and businesses while maintaining some of the highest network coverage rates globally.
Public access to water services has steadily improved over recent years, particularly in wastewater treatment. EurEau’s analysis shows that 97% of Europe’s population is connected to public drinking water supplies, while 90% are connected to wastewater collection systems and 89% to wastewater treatment facilities.
These figures underline the sector’s success in expanding access to essential services while supporting public health and environmental protection. The report notes that connection rates have continued to rise over time, with the strongest gains seen in wastewater treatment infrastructure.
Infrastructure renewal emerges as top priority
Despite strong performance, infrastructure renewal has emerged as the leading concern among water sector organisations across Europe. EurEau found that utilities view ageing networks and facilities as their most significant challenge, ahead of climate adaptation, water quality concerns and operational pressures.
According to the report, years of underinvestment in some countries have created a growing backlog of renewal projects. At the same time, operators must comply with increasingly stringent environmental regulations designed to protect public health and ecosystems.
New treatment requirements are becoming particularly costly as utilities respond to emerging contaminants. PFAS chemicals, micropollutants, pesticides, nitrates and microplastics are among the substances causing increasing concern for both drinking water and wastewater operators.
Climate change is adding further complexity. Water providers are being forced to address droughts, extreme weather events, changing water availability and growing security risks while maintaining uninterrupted service.
Investment growth fails to match inflation
Europe’s water services providers currently invest around €52.5bn annually in infrastructure, representing a 17.5% increase compared with the previous reporting period. However, EurEau warns that investment growth is still failing to keep pace with inflation and rising costs.
Within the European Union alone, annual investment totals approximately €36.6bn. The report notes that the increase recorded across EU member states remains significantly below inflation levels, suggesting that financial pressures are limiting infrastructure spending and contributing to an expanding investment backlog.
On average, water service providers invest just over €101 per person each year in infrastructure. While investment levels vary considerably between countries, the report concludes that greater and more sustained spending will be necessary to modernise networks, improve resilience and meet future regulatory requirements.
Affordability creates a funding dilemma
One of the report’s key findings is the tension between affordability and long-term sustainability.
Europe’s water services remain relatively inexpensive for consumers. Household water bills have generally not increased at the same pace as incomes, improving affordability across many countries. Yet EurEau argues that this trend is also limiting the revenue available for essential maintenance and infrastructure upgrades.
Annual billing across the sector totals approximately €109.2bn, but inflation-adjusted revenues have effectively declined over recent years. As a result, operators are increasingly directing available resources towards regulatory compliance rather than network renewal and expansion.
The report suggests that many European societies still underestimate the true value of resilient water services, despite their critical role in supporting public health, economic activity and environmental protection.
Workforce and future challenges
Beyond infrastructure, the sector is also facing workforce pressures.
Europe’s water services industry directly employs approximately 517,000 full-time equivalent workers, with employment levels gradually increasing due to more complex treatment requirements and expanding circular economy initiatives.
However, utilities are struggling to attract new talent. The report identifies an ageing workforce and declining competitiveness in salary levels compared with wider labour markets. These trends could make it more difficult to recruit the highly skilled professionals needed to manage increasingly sophisticated treatment technologies and digital systems.
As Europe confronts climate change, emerging contaminants and ageing infrastructure simultaneously, EurEau’s findings point to a clear conclusion: maintaining today’s high-performing water services will require stronger investment, more effective pollution prevention and broader application of the polluter pays principle to reduce treatment costs and protect future resilience.