Industry in the OceanMarkets, Macrotrends and Motivations

Justin E. ManleySenior Director Business Development

Teledyne Benthos

• Introduce Teledyne’s diversified market perspective• Scope the market size and nature• Introduce key industry considerations• Introduce a vision of the future of ocean technology• Foster discussion

The “capitalist” view of the ocean from a former academic and former Government technologist who escaped the Beltway

Objectives

Fisheries

Science/Research

Offshore Energy

Defense R&D

Transportation

Subsea Mining

3

Homeland Security

Teledyne Marine Markets

4

Strategic Business Units

• Offshore Ops. & Maint. - $335B next 5 years• Deepwater Market - $232B next 5 years• Subsea Hardware - $135B next 5 years• Floating Production - $91B 2013-2017• Subsea Vessel Ops. - $77B 2012-2016

– Roughly $182B per year

• FLNG – no $ info (one unit = $3B)

• Offshore Wind – no $ info

• ROVs – $891M in 2010 to $1.7B in 2015• AUVs – 560 units in 2012 to 913 in 2016

• Navy – $170B FY13 • NOAA - ~$5B/year • NSF OCE- ~$350M/year• OOI - $300M over 10 years

Market Size (imperfect information)

Images courtesy Douglas-Westwood,

• Timescale– Purchasing cycle & program/spending stability

• Transaction Complexity– Review process, posture of acquisition agents &

Terms and Conditions

• Regulations– Trade & environmental compliance

• Business Model– Service vs. Product vs. Program

• Innovation and Intellectual Property– NRE vs. IRAD

Industry Considerations (vary widely)

STEM – Key Requirement Across Industry

Images courtesy MATE Center, AUVSI Foundation and Rutgers

The Networked Future

The Networked Future, open to all, will it yield a “smartphone era” for ocean operations?

Images courtesy WHOI, OceanServer Technologies, Bluefin Robotics, iRobot and Liquid Robotics