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

“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 sealevel rise expert

Global megatrendsdrive market need

for clean technologies

Rapid changeor

Remarkable inertia?

Rapid changeor

Remarkable inertia?

Global energy demand rises by overone-third by 2035

Share of global energy demand

No more than 1/3 of proven fossil fuel reserves can be consumed prior to 2050to achieve 2˚C target

20%

40%

60%

80%

100%

1975 2010 2035

Middle East

India

China

OECD

Non-OECD6 030 Mtoe 12 380 Mtoe 16 730 Mtoe

(IEA, 2012)

The next few years will becritical to build marketsfor cleaner technologies.

Low carbon economy morethan $600 billion in size.(Goldman Sachs)

$1.6 trillion marketopportunity in cleantechparticularly for SME growth.(World Bank)

$1.5 trillion marketpotential in smart citiesby 2020.(Frost & Sullivan)

ICT-enabled energy efficiencytranslates into €600 billioncosts savings. (SMART 2020)

Substantial market potential

(The World Bank, 2014)

11% increase in VCinvestments in cleantech

from 2014 to 2015totalling $9.9 billion

(Cleantech Group, 2016)

Transportationaccounted over 30% of

the total amount ofcleantech investments

in 2015

(Cleantech Group, 2016)

Today’s margin needs to becometommorow’s mainstream

Costs now 1/150th of1970 level

0.02% of totalpassenger cars

1,1 million installedunits worldwide

1 % of the globalelectricity demand

Estimated 10-22%penetration by 2030

Market rising from $ 55.30billion in 2013 to $ 130.5

billion by 2020

What mechanisms canaccelerate commercialization of

cleaner technologies?(148 interviews with 30 firms)

Success Factors in CleantechCommercialization

1) Address customers’ critical problems2) Translate the technology into economic,

environmental and social benefits3) Demonstrate superior customer value4) Use social proof

Social Proof

10 percent increase in the number of people with solar panels in azip code led to a 54 percent increase in solar panel adoption in the

same zip code (Bollinger and Gillinham, 2012).

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

From Dirty Block to Clean Chain

Global VCinvestments

intoblockhain

There is no try.Do or do not.

Thank You.Questions and comments?

anne.jalkala@lut.fi

Reports, articles and ongoing projects:

Cleantech Ratkaisujen Kaupallistaminen - Yhteiskehityksestä arvon todentamiseen

How to Sell Sustainability? Sustainable value propositions: Framework andimplications for technology suppliers

Boosting the Internationalization of Cleantech SMEs