Water IT: How the $16 billion market will take shape

Transcription

1 Water IT: How the $16 billion market will take shape Tuesday September 21, 2010 Steve Minnihan Research Associate

2 Lux Research We help clients capitalize on science-driven innovation We focus on emerging technologies in the chemicals and materials sector and the energy and environment sector (cleantech) We have practices in Green Buildings, Nanomaterials, Solar, Energy Storage, Water, and Biosciences We have clients on five continents blue-chip corporations, government agencies and laboratories, universities, investors, and SMBs We source our intelligence from direct interaction with CEOs, CTOs, CSOs, and R&D execs at cutting-edge technology firms in our sectors of focus We draw on our network to: Continuously monitor emerging technologies Identify discontinuities in technology commercialization Assist with company and technology evaluation We have global reach, with 40+ employees in New York, Boston, San Francisco, and Amsterdam Research team is 67% scientists, 33% business analysts Testimony to U.S. Congress Suntech solar factory, China Svalbard Global Seed Vault, Norway Qatar Science and Technology Park 2

3 Lux Water Intelligence Advanced Treatment Treatment/Efficiency Desalination Thermal RO, FO, hybrid Alternative desal Energy recovery Zero liquid discharge Membranes Oxidation Disinfection Di i f i Sludge treatment Recycling Oxidation MBRs Nutrient extraction Metal recovery Oil recovery Energy from wastewater Efficiencyy Water IT Smart irrigation Infrastructure monitoring Smart meters Sensors Software Pipe rehabilitation Rainwater capture R i t t 3

4 Agenda The changing face of the water industry The $16 billion water IT market Picking winners with the Lux Innovation Grid 4

5 Mapping the water industry Total 2007 revenue US$522 billion Four top-level categories: Services: $386 billion (74%) Extraction Equipment: $64 billion (12%) Chemicals: $8.9 billion (2%) Bottled water: $62 billion (11%) 85 individual segments within these four top-level categories Energy recovery devices $120 million Desalination equipment $2.2 billion Irrigation equipment $9.3 billion Residential equipment $1.1 billion Surface water 2,942 km 3 / yr Agriculture Storage Desalination $9.59 billion Irrigation Precipitation ` 113,435 km 3 /yr Water flow Groundwater 1,053 km 3 /yr Domestic Water treatment $206 billion Industrial pretreatment Sea/brackish water 12.9 km 3 /yr Industrial Bottled water $62.3 billion Waste flow Physical equipment $11 billion Chemical equipment $511 million Chemicals $9.1 billion General equipment $36 billion Monitoring/ metering equip. $4.2 billion Total 2020 revenue US$961 billion 6.8 km 3 /yr Recycled water treatment $2.7 billion Wastewater treatment $73 billion Water shipping $100 million Analytical services $2 billion Infrastructure services $38.2 billion Engineering services $54 billion Treatment service Other service Equipment Intermediate process User Source: Lux Research Q Water State of the Market report. 5

6 Water financing is on the decline Number of deals $ $ Value of $250 deals 25 $200 (US$ 20 millions) 15 $ $ $450 $400 $50 $0 Number ofdeals Value ofdeals 6

7 Late-stage deals are on the rise 100% 90% 80% 70% Seed/Series A deals dominated VC transactions through % 2007 ushers in 4 Series 50% D or later transactions 40% Investors now focused 30% on later stage 20% companies 10% 2009, 37% of the total 0% value invested when to Series D; only 20% for Seed/Series A Series D or later Series C Series B Seed/A

8 Addressing the aging infrastructure London Northcote, Australia January 2009 Boston Intro Past Horizon Future

9 Agenda The changing face of the water industry The $16 billion water IT market Picking winners with the Lux Innovation Grid 9

10 Many companies providing water IT solutions 10

11 Smart water grid Pipes Irrigation Centralized information Pumps Meters Valves 11

12 Water IT market segments Water mapping Water infrastructure Identify ygroundwater sources through land based and submarine based technologies Reduce pipe leaks, minimize energy requirements through leak detection equipment and software Smart meters Intelligent metering of domestic water supplies Smart irrigation Water quality monitoring Manage water use in irrigation through controllers Characterize water sources through a range of water quality parameters 12

13 Water IT market size and opportunity Market Size, 2009 US$ 530 million $21 $109 Market Opportunity, 2020 US$16.3 billion $1.1 $3.2 $2.3 $23 $162 $3.3 $214 $6.3 Water mapping Water infrastructure Smart meters Smart irrigation Water quality monitoring

14 Agenda The changing face of the water industry The $16 billion water IT market Picking winners with the Lux Innovation Grid 14

15 Lux Innovation Grid (LIG) 5 High Potential Dominant Maturity Lux Take Company Strong Positive Tech hnical Value 3 Company 4 Company 3 Company 2 Company 1 Company 5 Company 6 Company 8 Company Positive Wait and See Caution 1 Long shot Undistinguished Strong Caution Business Execution

16 Infrastructure water IT 5 High Potential ti Dominant Maturity Lux Take echnical Value T 3 Syrinix TaKaDu Martinek Water Management Redzone Robotics Pressure Pipe Inspection Company Omni Meta Echologics Engineering MWH Soft Pure Technologies Bentley Systems Derceto 7 Technologies Strong Positive Positive Wait and See Miya Caution 1 Long shot Undistinguished Business Execution Strong Caution 16

17 Fixing the aging infrastructure through smart technology Start-up software providers take process optimization to task TaKaDu provides a water network monitoring solution to identify locations of leaks, faulty meters Derceto provides process optimization of pumps and valves to reduce operating costs as well as energy requirements Pure Technologies uses a new approach in pipeline leak detection SmartBall technology rolls along the pipe, with the flow of water 17

18 Smart meters - AMI 5 High Potential Dominant Maturity Lux Take emeter Strong Positive Tec chnical Value 3 Eka Systems Sensus Neptune Technologies Itron Elster Group Positive Wait and See Caution 1 Long shot Undistinguished Business Execution Strong Caution 18

19 Smart meters help utilities to manage demand and capture revenue AMI s can be considered the end point for data management Provides information on water usage, potential leaks at the point of the meter and in the home or business Water providers can use interval data to assess rates based on time of use Data can be provided to customer to influence behavior Potentially charge customers higher rates for water usage during peak electrical rate periods 19

20 Smart irrigation controllers 5 High Potential Dominant Maturity Lux Take 5.0 Strong Positive AquaSpy Group Te echnical Value 3 AccuWater Cyber Rain ET Water Irrisoft Hydropoint Data Systems Positive Wait and See Caution 1 Long shot Undistinguished Strong Caution Business Execution 20

21 Reducing water use through smart irrigation controllers Controllers adjusts watering schedule based on evapotranspiration (ET) data HydroPoint s system gathers ET data from 40,000 NOAA weather stations Cyber Rain s system gathers ET data from weather websites Both provide real-time web-based based dashboard Provides monitoring and water use visibility across a customer's entire property portfolio The future. demand response information is taken to the next level with irrigation controllers Peak load management and water control in times of scarcity 21

22 Water IT - Many players; no leader and integrator Pipes Irrigation Centralized information Pumps Meters Valves 22

23 Outlook Benefits of complete water management solution System integrator stands to capture a large share of the profits Water stress and aging infrastructure will drive water IT growth Reduce water losses, maintain standard of living The future of water AMI hinges on the electric utilities Can share much of the same infrastructure resulting in a higher cost benefit 23

24 Questions? Steve Minnihan Research Associate 24