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 sea
level rise expert
Global megatrends
drive market need
for clean technologies
Rapid change
or
Remarkable inertia?
Rapid change
or
Remarkable inertia?
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)
The next few years will be
critical to build markets
for cleaner technologies.
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
(The World Bank, 2014)
11% increase in VC
investments in cleantech
from 2014 to 2015
totalling $9.9 billion
(Cleantech Group, 2016)
Transportation
accounted over 30% of
the total amount of
cleantech investments
in 2015
(Cleantech Group, 2016)
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
What mechanisms can
accelerate commercialization of
cleaner technologies?
(148 interviews with 30 firms)
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
Social Proof
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).
What is next revolution in cleantech?
(and in the global economy)
From Dirty Block to Clean Chain
Global VC
investments
into
blockhain
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 and
implications for technology suppliers
Boosting the Internationalization of Cleantech SMEs

Cleantech - puhdas mahdollisuus, 21.4.2016, Kotka: Anne Jalkala, LUT

  • 1.
    Global Market Outlookfor 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 theplanet 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 marketneed for clean technologies
  • 4.
  • 5.
  • 6.
    Global energy demandrises 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 fewyears will be critical to build markets for cleaner technologies.
  • 8.
    Low carbon economymore 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.
  • 10.
    11% increase inVC 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 needsto 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 acceleratecommercialization of cleaner technologies? (148 interviews with 30 firms)
  • 14.
    Success Factors inCleantech 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.
  • 16.
    10 percent increasein 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 nextrevolution in cleantech? (and in the global economy)
  • 18.
    From Dirty Blockto Clean Chain
  • 19.
  • 21.
    There is notry. Do or do not.
  • 22.
  • 23.
    Reports, articles andongoing 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