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Addressing Water Utility Inefficiencies Through Smart Water Grids

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A presentation addressing water utility inefficiencies through smart water grids.

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Addressing Water Utility Inefficiencies Through Smart Water Grids

  1. 1. Addressing Water Utility Inefficiencies Through Smart Water Grids Insights from 360˚ Perspective on Global Smart Water Grids Market Seth Cutler, Research Analyst November 2, 2011
  2. 2. Today’s Presenter: Seth Cutler Functional Expertise One year of Environment & Building Technologies research expertise, including the growing smart technology sector. Particular expertise in: - Qualitative and Quantitative Market Research - Industry Analysis and Forecast - Geographical Information Systems (GIS) Industry Expertise Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives - Smart Water Meters - Smart Water Grids - Economic Development - RegenerationSeth Cutler What I bring to the TeamResearch Analyst Research and Consultancy Background Stakeholder EngagementFrost & Sullivan Strong Analytical ExperienceEurope Deadline and Priority FocusLondon Career Highlights Extensive expertise in economic regeneration. Productive careers in several leading research and consultancy firms: - Regeneris Consulting Ltd, London (UK) - London East Research Institute, London (UK) Education MA (Hons.) Geography from the University of St Andrews, St Andrews, Scotland MA Cities, Culture & Social Change from King’s College London, London, England
  3. 3. Focus Points Introduction to Mega Trend on Smart Cities and Smart Water Grids Why and how are we Seeing Growth in This Market Short History on Market Development and Initial Case Studies Identifying the Smart Water Macrocosm Forecast & Trends – Regional Attractiveness – Vertical Market Attractiveness Future Trends and Extensions of the Smart Water Grid Market Strategic Directions of the Market
  4. 4. Urban Regions are Leading Smart Urban Planning InitiativesSnapshot of a SMART Mega City Plan in 2020SMART Buildings: At SMART Infrastructure:least 50 percent of Multimodal Transport Hubs SMART Water &buildings will be Green Providing Excellent Energy: 20 percent ofand will be Intelligent built Air, Rail, Road Connectivity energy in cities and awith BIPV. Around 20 to Other Mega Cities decarbonization ofpercent of the buildings water infrastructure.will be Net ZeroBuildings.SMART Technology: SMART GRIDIntelligent & NETWORK:communication Infrastructuresystems to enable realconnecting timehome, office, monitoring ofiPhone and car on energies toa single wireless IT optimiseplatform efficiency and inform Satellite Towns: decisions Main city centre will SMART Cars: At least 10 merge with several percent of cars will be satellite towns to form electric vehicles. Free fast ONE BIG MEGA charging stations at every CITY half mile Source: Google Images 4
  5. 5. Emerging Mega Cities Will Have World Class Infrastructure and DevelopSub Satellite Towns (e.g. Chennai) 2000 – Satellite Towns 2015 – World Class 2020 + Interconnectivity with Developing Infrastructure (Equals Tier 2 city) Sub Satellite Towns Core City Outsourcing companies (non Development of infrastructure Satellite IT), like research to connect Satellite and Sub Commercial Towns healthcare, auto manufacturing Satellite towns to utilities hubs will increase number of satellite towns Global Mega Trend Relevance to Smart Water Grids As urban regions become more complex, greater logistical and operational demands will be placed on water utilities in terms of supply, distribution and waste. A key characteristic of all Mega Trends is the use of ICT technologies to enable smarter management processes to handle and process the amplified demands. 5
  6. 6. Current Economic Climate is Unlikely to Deliver Large Public Investment in Water Utilities, Where Funding is Already Stretched Thin June 2011 Forecast Real GDP Growth Annual Investments in Water6.0 (USD 2005) Sub- Resources (US$B) Saharan $2004.0 Africa $180 OECD $1602.0 180 Countries $140 $1200.0 Euro Area $100 $80-2.0 $60 75 Japan $40-4.0 $20 3.6 $0-6.0 United Needed for Water Investments in Water World Bank States Security Resources Investments-8.0 2009 2010 2011 2012 2013Source: World Bank Note: Based on Developing Countries, Source: World Bank 70 60 Non-Revenue Water Levels, Global 60 51 50 40 39 36 40 31 26 26 30 20 19 20 13 7 10 5 0 Non-Revenue Water (%) 6
  7. 7. Sensors are Being Placed Holistically in the Water Cycle to Optimise Water Utility Operations and Management Smart Water Grid Market Segmentation Map Design and Engineering Smart Water ICT, Software and Automation and Control Services Infrastructure AnalyticsAdapted from: UK Drinking Water Inspectorate 7
  8. 8. Water Utilities are increasingly using data collection systems for real-timemonitoring and control of the water cycle Traditional Manual Water Grid 2010s : Smart Water Grid Time Source: blog.airdye.com consuming, costly, infrequent and prone to human error Data Data is transmitted Analysis1970s Automatic Meter Reading wirelessly. Handheld & Exchange receivers and drive- by networks first but moving increasingly towards fixed Source: signsworldwide.com networks 2010s AMI Smart Water Grid Revolutionizing the Water Industry Current technology allows • Using information to integrate traditionally two-way communications departmentalised water utilities between the • Network of real time sensors to offer depth of utility, customers and analysis previously unattainable infrastructure to maximise • Maximizing operations and control to reduce efficiency and savings carbon footprints and improve efficiencies to Source: roadtrafficsigns.com realize tangible financial benefits. 8
  9. 9. “Heat” Index: Smart Water Grid Objectives to Change Over Time as Grid Becomes More SecureWater utilities will Strong relationshiplook to tackle initial Immediate with the deploymentproblems concerning Applications of sensors andnon revenue hardware.water, leakage andquality. Smart water grids byLargely a post- design identifydeployment phase immediate problemswhere emphasis is Strategic to allow utilities toon data manipulation Applications focus on strategicand advanced challenges and gainsoftware. foresight into emerging issues. Deployment and operation of a smart water gridWidth and darker shading indicates level of investment as a utility deploys and operates a smart water grid. 9
  10. 10. Case Studies Las Vegas Valley Water District Derceto and Gwinnett County Metering Derceto optimised Gwinnett County’s • $32 million in direct savings over Distribution System the hardware life Energy Management • $44M savings through Customer to realise an annual Service and Conservation benefits savings ofSourcelasvegastvshow. • Overall investment in 385,000 AMR approximatelynet water meters. $500,000. Source: derceto.com Grid Where could savings be made? • 8,000 Fluid Conservation System • Load Shifting – move operations PermaLog remote leak detectors overnight while energy prices are cheapest. • Source Shifting – determine and use the • Saved 2.6 billion litres of water by cheapest water treatment facilities. 2006, 2 years into operation. • Efficiency Savings – identify and use the • At a cost of $2.1 million in 2003, the most efficient pumps. District saw a ROI in two years and a Actual Savings: savings of $1.2 million in the followingSource: halmapr. three years. By 2007, 1,070 leaks • Load Shifting – $376,000com had been repaired. • Source/Efficiency Shifting - $130,000 • Total Savings - $506,000 per annum 10
  11. 11. The Smart Water Macrocosm Split into Microcosms •Smart Technology application to every Smart Water Macrocosm part of the water industry. •Currently many water utilities are Water Resources focusing on just one microcosm, but in & Supply (Data Exchange and Analysis) future smart technology will be applied more holistically. •Much of the initial investment is Water Distribution flowing into Water Distribution and to a lesser extent Water Resources and Supply. Wastewater Treatment, Discharge •As a result, this report focuses on the and Recycling Water Distribution microcosm, but future research will expand into the related segments identified here. 11
  12. 12. The Global Smart Water Grid Market is Forecast to see Strong Growth, Especially from 2016 Onwards Smart and Conventional Water Grid Penetration, Global, 2010-2020100% 14.4% CAGR 2010-202090%80%70%60% $5.8B $8.7B $22.2B50% Total Market Total Market Total Market40% Value Value Value 29%30%20%10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Conventional Water Network Smart Water Network 12
  13. 13. ICT, Analytical Software is Outpacing Other Vertical Markets and APAC Will be Catching up to Developed Markets Smart Water Grid Vertical Market Smart Water Grid Regional Attractiveness, Global 2010 Attractiveness, Global 2010 ICT, Analytical Software APAC 2010-2020 (%) LatAm 2010-2020 (%) North America Smart MEA Segment Growth Rate, 2010Segment Growth Rate, 2010 Engineering Infrastructure and Design Europe Control and Automation Market Share (%) Market Share (%) 13
  14. 14. Industrial Convergence to Play a Key Role in MarketDevelopment Smart Water Engineering Meter and Design ManufacturersControl and Smart Pumps, Integrated SmartAutomation Pipes and Water Solutions Valves ICT, Analytical Remote Power Software Generation Telemetry and Communications14
  15. 15. Driver of Convergence is Microcosm Unification to IncreaseEffectiveness of Data, which will Demand Holistic Software Smart Water Macrocosm Smart Water Utility Water Resources Software System Package & Supply(Data Exchange and Analysis) Hydraulic Modelling / Network Infrastructure Monitoring Water Distribution Energy On Demand Consumption GIS Historic Data by Use Customer Water Metering SCADA Wastewater Service Quality (AMR, AMI) Treatment, Discharge and Recycling 15
  16. 16. Industrial Convergence Will Also Encourage Smart Water ConsumersIncreased Granularity of Information to Smart Water and Energy Appliances Drive Consumer Engagement Source: energysavingtrust.org.uk Source: tmcnet.com Source: fully-integrated- Source: jboss.org dishwashers.com fullyIn-home interface Web portal or display Source: parliament.uk Source: 4.bp.blogspot.com Source: gizmag.com Enhanced billing with intelligent neighborhood comparison 16
  17. 17. Global Smart Water Solutions an Integral Element ofEconomic Rescue Package Tangible benefits and operational1 efficiencies Essential element of economic rescue2 package Industrial convergence creates a fast-3 paced market Balance of activity shifting to4 developing regions Less defined standards create5 opportunity to shape market Source: Frost & Sullivan analysis.17
  18. 18. As the Smart Water Grid Market Matures, Practical Concerns on Deployment and Technologies will be Addressed Relevant Trends Unmet Needs Industrial convergence Developing business case Product and service prices Return on investment model lowering moderately Analysis Advanced software and Deployment model hardware growing presence Increasing M&A and Turnkey solutions strategic partnerships Developing regions to see Government leadership faster growth Strategic RecommendationsWater utilities, market participants and Government regulators need to work together to introducestandards within the market. This will be done through market consolidation, strong water utilitycommunication and Governments prioritizing the link between smart water grids and smart energy grids. 18
  19. 19. Next Steps Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com) Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth occurring 9 – 10 May, 2012 (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 19
  20. 20. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?Growth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other? Please inform us by rating this presentation Frost & Sullivan’s Growth Consulting can assist with your growth strategies
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  22. 22. For Additional InformationChiara Carella Seth CutlerHead of Corporate Communications Research AnalystEurope, Israel, Africa Environment & Building Technologies+44 (0) 207 343 8314 +44 (0) 207 915 7807chiara.carella@frost.com seth.cutler@frost.comFredrick Harry Royan Andrew ThorndykeGlobal Research Director Sales DirectorEnvironment (Water) Markets Environment & Building Technologies+44 (0) 207 343 8353 +44 (0) 186 539 8645froyan@frost.com andrew.thorndyke@frost.com

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