Global Market Outlook for Clean & Digital Techonologies ANNE JALKALA, Tuotantotalouden professori, Lappeenrannan teknillinen yliopisto. Esitys Cleantech -puhdas mahdollisuus -seminaarissa 21.4.2016 Kotka

1. Global Market Outlook for
Clean & Digital Technologies
Prof. Dc.S (Tech) Anne Jalkala
Head of LUT School of Business and Management
Lappeenranta University of Technology
21st April 2016 - Kotka

2. “We’ve put the planet on a high-
carb diet for over a century.
Time to get lean and go green.“
– Dr. Josh Wllis NASA Project Scientist and sea
level rise expert

3. Global megatrends
drive market need
for clean technologies

4. Rapid change
or
Remarkable inertia?

5. Rapid change
or
Remarkable inertia?

6. Global energy demand rises by over
one-third by 2035
Share of global energy demand
No more than 1/3 of proven fossil fuel reserves can be consumed prior to 2050
to achieve 2˚C target
20%
40%
60%
80%
100%
1975 2010 2035
Middle East
India
China
OECD
Non-OECD
6 030 Mtoe 12 380 Mtoe 16 730 Mtoe
(IEA, 2012)

7. The next few years will be
critical to build markets
for cleaner technologies.

8. Low carbon economy more
than $600 billion in size.
(Goldman Sachs)
$1.6 trillion market
opportunity in cleantech
particularly for SME growth.
(World Bank)
$1.5 trillion market
potential in smart cities
by 2020.
(Frost & Sullivan)
ICT-enabled energy efficiency
translates into €600 billion
costs savings. (SMART 2020)
Substantial market potential

9. (The World Bank, 2014)

10. 11% increase in VC
investments in cleantech
from 2014 to 2015
totalling $9.9 billion
(Cleantech Group, 2016)

11. Transportation
accounted over 30% of
the total amount of
cleantech investments
in 2015
(Cleantech Group, 2016)

12. Today’s margin needs to become
tommorow’s mainstream
Costs now 1/150th of
1970 level
0.02% of total
passenger cars
1,1 million installed
units worldwide
1 % of the global
electricity demand
Estimated 10-22%
penetration by 2030
Market rising from $ 55.30
billion in 2013 to $ 130.5
billion by 2020

13. What mechanisms can
accelerate commercialization of
cleaner technologies?
(148 interviews with 30 firms)

14. Success Factors in Cleantech
Commercialization
1) Address customers’ critical problems
2) Translate the technology into economic,
environmental and social benefits
3) Demonstrate superior customer value
4) Use social proof

15. Social Proof

16. 10 percent increase in the number of people with solar panels in a
zip code led to a 54 percent increase in solar panel adoption in the
same zip code (Bollinger and Gillinham, 2012).

17. What is next revolution in cleantech?
(and in the global economy)

18. From Dirty Block to Clean Chain

19. Global VC
investments
into
blockhain

21. There is no try.
Do or do not.

22. Thank You.
Questions and comments?
anne.jalkala@lut.fi

23. Reports, articles and ongoing projects:
Cleantech Ratkaisujen Kaupallistaminen - Yhteiskehityksestä arvon todentamiseen
How to Sell Sustainability? Sustainable value propositions: Framework and
implications for technology suppliers
Boosting the Internationalization of Cleantech SMEs