Rehabilitation Needs Fuel Growth in Water and Wastewater Network Market
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Rehabilitation Needs Fuel Growth in Water and Wastewater Network Market R Ramkumar Research Analyst, Energy & Environment Fredrick Royan Vice President, Global Environment Practice Energy & Environment Dr. Lukas Loeffler President Water & Wastewater Segment Global Solutions–Strategic Customers, Schneider Electric 20 May 2015 © 2015 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Transcript of Rehabilitation Needs Fuel Growth in Water and Wastewater Network Market
Rehabilitation Needs Fuel Growth in Water and Wastewater Network Market
R Ramkumar
Research Analyst, Energy & Environment
Fredrick Royan
Vice President, Global Environment Practice
Energy & Environment
Dr. Lukas Loeffler
President Water & Wastewater Segment
Global Solutions–Strategic Customers, Schneider Electric
20 May 2015
© 2015 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
2
Presenters
Expertise:
• Two years of experience across functionalities in the
water sector. Have worked on operations, marketing,
research and consulting assignments. Currently
tracking different segments of the global water market
including
• Water and Wastewater Network Market
• Water Utility Services Market
• US Water Filtration Market
R Ramkumar, Research Analyst
Global Environment Practice,
Energy & Environment,
Frost & Sullivan
Follow me on LinkedIn
linkedin.com/in/ramkumarravisankar
Functional Expertise:
• Over 10 years of Environmental Management
research and consulting experience with particular
focus on the Water Market with specific expertise in:
• Technology Market Assessment
• Geographic Expansion
• Technology and Competitive Strategies
• Market Due Diligence
• Partner and Mergers & Acquisition Identification
Fredrick Royan, Vice President
Global Environment Practice,
Energy & Environment,
Frost & Sullivan
Follow me on LinkedIn
linkedin.com/pub/fredrick-royan/3/127/477
3
Presenters
Professional Summary:
Dr. Lukas Loeffler is an international C-level leader with a highly
successful record of expanding and turning around global
businesses. During his career he developed expertise in all
areas of management and technology and gained specific
industry experience in automotive/aerospace, industrial
automation, postal automation, banking and retail automation,
airport logistics and environmental/water technologies
Dr. Lukas Loeffler
President Water & Wastewater Segment
Global Solutions–Strategic Customers
& Segments
Follow me on LinkedIn
linkedin.com/company/schneider-electric
4
Focus Points
Agenda
• Market Outlook
• Value Chain – Market Summary
• Segment Attractiveness
• Regional Attractiveness
• A Few Global Hotspots
• Top Global Water Market Challenges and Unmet Needs
• Water Connectivity and Access to Improved Sanitation
• Capability Trends
• Convergence for Water and Wastewater
• Key Market Trends
• Smart Water Networks
MAB1-15 5
Market Outlook
0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00
2014
2020
Re
ve
nu
e (
$
Billio
n)
Pumps Automation & ICT Software & Analytics Meters Pipes & Allied Pipe Network Services Design & Engineering Services
Key Takeaway: The global water and wastewater network market is estimated to be around $90B and is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2014 to 2020. The expansion of networks in developing nations will outpace market growth in developed nations.
Water and Wastewater Networks: Revenue Split by Segment, Global, 2014–2020
Note: All figures are rounded. The base year is 2014. Source: Frost & Sullivan
MAB1-15 6
Value Chain – Market SummarySegmentation and Market Share (2014) by Revenue
Analytics &
Software3.75%
Analytics &
Software3.75%
Pipes (Iron, Plastics,
Cement, Others)
Pipes (Iron, Plastics,
Cement, Others)
Pumps – (Centrifugal, Positive
Displacement)
Pumps – (Centrifugal, Positive
Displacement)
Automation
& ICT6.86%
Automation
& ICT6.86%
Meters5.44%
Meters5.44%
Pumps8.84%
Pumps8.84%
Pipes &
Allied56.82%
Pipes &
Allied56.82%
Pipe Coatings & Trenchless
Technologies
Pipe Coatings & Trenchless
Technologies
Standard MeteringStandard Metering Smart Metering (AMR/AMI)Smart Metering (AMR/AMI)
Cyber Security
Cyber Security
Hydraulic Modeling Grid Monitoring Bespoke reports
Predictive Analysis Asset Management Remote Pressure Control
Event Prioritization Meter Data Management
Hydraulic Modeling Grid Monitoring Bespoke reports
Predictive Analysis Asset Management Remote Pressure Control
Event Prioritization Meter Data Management
SCADA PLC HMI DCS Sensors
ICA & Telemetry
SCADA PLC HMI DCS Sensors
ICA & Telemetry
Metering ServicesMetering Services
Pump ServicesPump Services
Valves, couplings & other
fittings
Valves, couplings & other
fittings
Design & Engineering ServicesDesign & Engineering Services
Pipe Network ServicesPipe Network Services13.46%
4.84%
Ma
rke
t S
ha
re
MAB1-15 7
Segment Attractiveness
Pumps
Automation and ICT
Analytics and SoftwareMeters
Pipes and Allied
Pipe Network Services
Design and Engineering Services0.00
10.00
20.00
30.00
40.00
50.00
60.00
0.0 5.0 10.0 15.0 20.0 25.0
Re
ve
nu
e (
$ B
illi
on
)
CAGR (%)
Water and Wastewater Networks: Segment Attractiveness, Global, 2014
Key Takeaway: Automation and ICT, pipe network services, and analytics and software are expected to grow faster due to the pressure to improve network operational efficiency.
Note: CAGR is estimated for 2014 to 2020. All figures are rounded. The base year is 2014. Source: Frost & Sullivan
MAB1-15 8
Regional Attractiveness
APAC
Europe
Middle East and Africa
Latin America
North America
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
Re
ve
nu
e (
$ B
illi
on
)
CAGR (%)
Water and Wastewater Networks: Regional Attractiveness, Global, 2014
Key Takeaway: The Asia-Pacific (APAC) region is the largest in terms of population served by water and wastewater networks and its revenue size and growth.
Note: CAGR is estimated for 2014 to 2020. All figures are rounded. The base year is 2014. Source: Frost & Sullivan
MAB1-15 9
Top Global Water Market Challenges and Unmet Needs
Leakage and Non-revenue
Water
Blockages in Networks
Ageing Infrastructure
Pressure Management
Financing Capital
Intensive Infrastructure
Water Stress – Resource Availability
Population Growth and Urbanization
Pricing Water and
Wastewater services
Maintaining Water Quality Throughout the Network
Climate Change and
Extreme Weather
Source: Frost & Sullivan
MAB1-15 10
0
25
50
75
100Western Asia
DevelopedCountries
Caucasus andCentral Asia
Eastern Asia
Oceania
SoutheasternAsia
Southern Asia
Sub-SaharanAfrica
Latin Americaand the
Caribbean
Northern Africa
Water and Wastewater Networks: Access to Improved Sanitation, Global, 2013
Piped on Premises (%) - Urban Piped on Premises (%) - Rural
0
25
50
75
100Western Asia
DevelopedCountries
Caucasus andCentral Asia
Eastern Asia
Oceania
SoutheasternAsia
Southern Asia
Sub-SaharanAfrica
Latin Americaand the
Caribbean
Northern Africa
Water and Wastewater Networks: Water Connectivity – Piped on Premises, Global, 2013
Piped on Premises (%) - Urban Piped on Premises (%) - Rural
Water Connectivity and Access to Improved Sanitation
<75% connectivity (critical)
• Creating pipe infrastructure is seen as a costly endeavour in poor economies.
• Water and wastewater pipe connectivity will improve with access to international aid and private investments in water
infrastructure.
Key Takeaway: Piped water and improved sanitation rates in the Southern hemisphere are critical and will grow at the fastest pace.
Source: UN-JMP; Frost & Sullivan
MAB1-15 11
Convergence for Water and Wastewater
Overlap level
Low
Medium
High
Key Takeaway: Partnerships between technology enablers and cross-functional participants will capitalize on industry convergence.
Water and Wastewater Networks: Industry Convergence Map, Global, 2014
GrundfosSulzerXylem
SchneiderSiemensABB
Vodafone, Orange,
Arquia
ItronSensusElster
CH2MMWH
Puretech, Picacorp, Sky Wave, Wachs Water, SFE
Global
Georg FischerAmiantitXinjing
IBM, Innovyze i2owater
InsituformInliner3M
VeoliaSuez
Source: Frost & Sullivan
MAB1-15 12
Key Market Trends
Transition in Pipe Materials Usage
Plastics are becoming preferred materials for pipes across applications owing to their physical and chemical properties
Innovative Rehabilitation Techniques
Trenchless rehabilitation and non-invasive pipe inspection methods is growing with the age of networks
Trends in Smart Water Grids
Smart water grid market is the largest in Europe. By 2020 a penetration of 20% of the total market is expected
New Business Models
Performance Contracting is the underlying concept in all new business models
Privatization in Water Services
Political and regulatory pressures in select regions limit private participation, however capital and innovation needs aid private participation
Decentralization Trends
Regions with low population density and non-metropolitan areas find off-the-grid treatment solutions efficient
Smart Water Networks
Dr. Lukas Loeffler President Water & Wastewater SegmentGlobal Solutions–Strategic Customers
& Segments
MAB1-15 14
Why Smart Water Networks?
• Over 250,000 water networks - aging
infrastructure
• Cities all over the world have an
average 30..40% water loss in their
networks
• Huge and unfulfilled need for
infrastructure investment
• Cash-strapped for funding, many
utilities turn to solutions that extend the life of networks and optimize
supply-transmission.
The Problems
MAB1-15 15
Smart Water Networks: Solutions Market Growth
• Smart Water solutions will help municipal and private operators to manage the problems
and show the highest growth in the overall water market:
�A&C services to grow at >15.0% CAGR through 2020 as a result of the optimization of
networks and use of automation in wastewater networks.
�The software and analytics services segment to grow at the fastest pace as utilities
realize the benefit of data from various network infrastructure processes to effectively
manage the networks.
• We expect growth to be strongest in developing nations dealing with high rates of
urbanization and water loss.
• Aspects of monitoring and efficiency increase will be key drivers for growth in developed
nations.
The Solutions
MAB1-15 16
Smart Water Networks Benefits
Smart Water solutions improve the
efficiency, longevity, and
reliability of the underlying
physical assets by better
measuring, collecting, analyzing,
and acting upon a wide range of
events.
Source: Adapted from SWAN – Smart Water Networks Forumwww.swan-forum.com
MAB1-15 17
Advancements in Water Loss Management
• Example of water loss creating
economical issues
�Non-revenue water
• Excessive network pressure = leaks,
new bursts, energy consumption
• Smart Water approach to Water Loss
Management
�Integrated Leakage and Pressure
Management (ILPM) System
�Collecting field data and transforming
for continuous improvement
�System of software, field devices
�Close collaboration between utility
and technology provider
MAB1-15 18
Evolution of Network Monitoring to Network Optimization
• Operators strive for higher efficiency
�Proactive vs. reactive measures
�Data analysis and simulation
�Predicting network behavior
• Online Network Optimization
�Hydraulic modeling technology +
SCADA
�Availability of historical, real-time
and simulated future data
�Better operation and maintenance
decisions
MAB1-15 19
Emerging Developments for Smart Water Networks
• Development #1 Non-revenue water mitigation
� Automatic meter reading (AMR)
� Water loss management
• Development #2 Efficiency increase
� Optimized flow control
� Improved energy management
• Development #3 Vision of an integrated water quality monitoring system for networks
� Improved real-time sensors
� Complex water characteristics
� Early warning systems
� Security threat prevention
� Comprehensive reporting of water quality
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Chiara Carella
Head of Corporate Communications
Europe, Israel and Africa
+44 (0) 207 343 8314
Cyril Cromier
Vice President - Sales
Energy & Environment
+33 1 42 81 22 44
Fredrick Royan
Vice President
Energy & Environment
+44 (0) 20 7343 8353
