Engineering & Cleantech

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Engineering & Construction

Market Overview

Global growth in Engineering & Construction to be led by significant investments in infrastructure by countries in Growing Asia*.

Total infrastructure investment between 2014 and 2017

  • India: EUR 740B (~2x 2007-2012)
  • Indonesia: EUR 200B (~2x 2007-2012)
Engineering & Cleantech

Opportunities & Trends

In India, transports will represent 40% of total infrastructure Investments

Indonesia will focus on rail: rail networks will achieve a combined route network length of 12,100 km by 2030 (compared with 5,100 km in 2014).


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Water & Wastewater Treatment

Market Overview

Global water demand will be increased by some 55% by 2050 mostly due to growing demands from manufacturing (400%), thermal electricity generation (140%) and domestic use (130%) as farming, construction, drinking, cooking, washing and sewerage will require more potable water.
Also by 2050 more than 40% of the global population will be “living in areas of severe water stress.”

Increase in total water demand over the period of 2005 to 2030 (in Bn 3)

Engineering & Cleantech

Emerging Markets = 60% of the global water demand increase in the next 20 years


Opportunities & Trends

  • Indian water treatment market is highly fragmented (15 largest players ~30% market share)
  • China has 20% of global population but only 5% of global water resources (Local players keen on making investments in this fragmented water market)
  • In ASEAN, the largest investments will come from Indonesia & Vietnam (USD 700 M & USD 500 M respectively, within the next few years)

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Renewable Energy

Market Overview

Global investment in renewable power and fuels (excluding large hydro-electric projects) was USD 286B in 2015, nearly 5% higher than in 2014.

Chinese investments = x34 between 2004 and 2015 (USD 3 B vs USD 103M)

Engineering & Cleantech

Opportunities & Trends

Renewable energy investment in developing countries was USD 155B (2014-2015: 36%)

  • China increased its share of global renewable energy investment in 2015 to about 36%
  • India set a new record of USD 10.2B in 2015, from just USD 8.3B in 2014

Acquisition activity in renewable energy rose by 36% to USD 94B in 2015. Wind and solar combined made up almost 94% of all activity, up from 91% in 2014.

*Growing Asia means ASEAN, India and China


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Testing, Inspection & Certification (TIC)

Market Overview

The Testing, Inspection and Certification (TIC) Market is expected to reach USD 115B by 2022, growing at a CAGR of 5% 2015-2022.

Only 40% of the TIC industry is currently outsourced.

The TIC sector is highly fragmented, with a large number of smaller providers that serve a specific niche or geographic region.

  • Top 10 leading companies generate more than EUR 1B each in revenue.cx
  • Over 50% of the market is made up of mid & small companies, many generating < EUR 10M.

TIC industry competitive landscape

Engineering & Cleantech


Opportunities & Trends

The outsourced TIC market is expected to increase by USD 15B 2011-2015. This growth will be underpinned by a number of drivers:

  • Greater focus on quality and safety by consumers and governments throughout the global economy, e.g. New and tougher regulations (REACH, EU Toy Safety, GHS etc)
  • Large companies are increasingly outsourcing inspection and testing to reduce costs
  • Global trade due to its correlation to the size of inspected volume (exports & imports to and from Growing Asia* to increase by >10% CAGR over the next 5 years)
  • The rise in innovation, diversity and shorter lifecycles of many consumer products is increasing the application and volumes of services offered by TIC companies

Strategic buyers pursue these target companies to expand their offerings and leverage their capabilities.

The average deal size for the selected top acquirers was USD 11M, indicating their willingness to consider acquisitions of any size if the strategic fit is strong.

The most active acquirers (2011-2014) include SGS with 41 announced deals, and Eurofins and Bureau Veritas with 35 and 31 deals respectively.

*Growing Asia means ASEAN, India and China