What’s Hot in Energy and Environment

Industry Participants Weigh In On

Key Market Trends and Challenges

November 2013

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Contents

Section Slide Number

• Energy & Environment—Hot Topics and Why 3

• Mega Trends Across Energy—Top Point of Interest 6

• Energy & Environment—Top 10 Technologies and Markets to Watch For in 2020 15

Frost & Sullivan Story 19

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Energy & Environment—Hot Topics and Why

• A growing percentage of the global population will be living in cities and urban areas in the coming decades.

Higher concentrations of larger populations are fraught with challenges:

o Urban populations will be higher income, and the growing middle class will consume more goods, resources,

energy, and water, and create more waste and pollution.

o Increasing waste and pollution will drive awareness and the need for cleaner, more efficient energy and

transportation.

o Smart cities that can better use existing resources through improved monitoring, controls, and coordination of

services and infrastructure can improve quality of life for residents and attract more businesses.

• As top Mega Trends, urbanization and smart cities will drive changing market dynamics for energy and

environment market participants.

• Smart systems have been in place across the transmission & distribution (T&D) space and are now also moving

into commercial and residential buildings.

• The emergence of shale gas and shale oil in the oil and gas (O&G) space is also increasingly impacting the energy

and environment sector.

o Natural gas has replaced coal as the main fuel source for electricity in the United States.

o China has abundant, though technically difficult to access, shale beds that, if tapped, could further increase the

country's economic clout on the global stage.

o Europe is looking at shale gas to increase domestic energy sources but also balancing that with environmental

concerns.

o Environmental concerns, highlighted by industry participants as a key area of interest, are an issue with shale

extraction because they drive the potential for smart cities.

o Frost & Sullivan covers the full ecosystem of energy and environment—from upstream O&G, to power generation,

across the T&D grid, and into the building and waste streams—as well as the Mega Trends and Macro Issues that

create new challenges and opportunities.

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Source: Frost & Sullivan

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Energy & Environment—Hot Topics

Rank Market Topic % of Respondents Nominating as

Hottest Topic

1 Mega Trends for the Energy Sector 58%

2 Oil & Gas Market—An Overview of the E&P Segment 33%

3 Smart Grid 30%

4 Future of Wind Power 25%

5 Growth Outlook for Solar Power Technologies 23%

6 Competitive Landscape of the Smart Grid Market 21%

Energy Market Participants: Identification of Hot Topics, Global, 2013

. Source: Frost & Sullivan

Rank Market Topic % of Respondents Nominating as

Hottest Topic

1 Opportunities for Green Buildings 49%

2 Smart Buildings Markets 45%

3 Building Automation and Control 33%

4 Energy Management and Performance Contracting 31%

5 Home Energy Management Systems (HEMS) and Building Energy

Management Systems (BEMS) Markets 29%

6 Smart Homes and Home Automation 29%

Environment Market Participants: Identification of Hot Topics, Global, 2013

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Frost & Sullivan’s Energy & Environment Ecosystem

Centralized and

Distributed Power

Generation

Renewable Energy

Upstream O&G

T&D and Smart Grid

Water and Wastewater

Power Supplies and

Energy Storage

Building Technologies

Waste to Energy

Smart and Green

Top client titles for energy:

• Mega Trends for Energy

• Oil & Gas—An Overview of E&P

• Smart Grid

Top client titles for environment:

• Opportunities in Green Buildings

• Smart Buildings

• Waste to Energy and Value Recovery

Source: Frost & Sullivan

6

Mega Trends Across Energy—Top Point of Interest

Key studies from the 2013 content plan:

• Impact of Urbanization on the Electrical Sector in APAC

• Impact of Chinese Suppliers on European Energy Markets

• Mega Trends in Unconventional Gas/Deepwater

• Impact of Natural Gas on Renewables

• Annual Global Power and Energy Outlook

• Annual Global Power Generation Forecast

• Annual Renewable Energy Outlook

Urbanization and smart cities, as well as macro level forecasts of the market, provide a

platform of how the overall industry is trending.

Source: Frost & Sullivan

7

Mega Trends Across Energy

Source: Frost & Sullivan

What is a Mega Trend?

Mega Trends are transformative, global

forces that define the future world with their far-

reaching impacts on businesses, societies,

economies, cultures, and personal lives.

Why do Mega Trends matter?

• Mega Trends have diverse meanings and impacts for different industries, companies, and individuals.

• An analysis of these Mega Trends and their implications forms an important component of a company’s future strategy, development, and innovation process, and impacts product and technology planning.

8

Sustainability

Environmental

Technology

Energy Efficiency

Smart Buildings

Global

Energy

Demand

Environment

Energy

Supply

and Costs Capacity

Requirements

Connectivity

and Integration

Efficiency and

Intelligence

Mega Trend Dynamics in Energy & Environment

Smart Grids

Carbon Reduction and

Renewable Energy

Power Generation

Market Globalisation

Source: Frost & Sullivan

9

Urbanization—Major Smart City Driver Energy efficiency and power quality are central to the smart city.

10

Smart Solutions Smart resonates with industry participants as a keyword for new market opportunities.

Key studies from our 2013 content plan:

• Global Smart Grid Markets

• Impact of Energy Storage in Smart Cities

• Convergence of Supply Chains in Smart Cities

• Next Steps for Smart and Connected Homes

• Smart Waste Recycling Plants Market

• Smart Water Data Mega Trend in Municipal Services

Clients continuously rated the issue of smart solutions—such as buildings and grids—

within the top three areas of interest.

Source: Frost & Sullivan

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Smart Replacing Green Across the Value Chain Smart includes monitoring, controls, and optimization to bring in efficiency and bottom-line

benefits as well as environmental improvements.

Smart Diamond to Define Smart City

4G

Smart Energy

Smart Building

Smart Citizen

Smart Technology

Smart Healthcare

Smart Mobility

Smart Infrastructure

Smart Governance

Source: Frost & Sullivan

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Energy Landscape Shale gas and oil are changing the global energy landscape.

Key studies from our 2013 content plan:

• Global Oilfield Services Markets

• Global Oil & Gas Pipeline Services Markets

• Global Offshore Services Market

• Global Opportunities for Shale

• Oil & Gas MRO Services

The changing dynamics of unconventional gas, subsea markets, and natural gas

prices resulted in O&G ranking as the second-highest area of interest for energy

market companies.

Source: Frost & Sullivan

13

Shale O&G—An Opportunity Across Regions

Addressing environmental concerns including water treatment is likely to be a

major challenge for E&P companies.

Shale reserves are identified as a game changer in the global energy markets. The US shale industry

presents significant opportunity.

Companies are shifting towards liquid-rich plays to

maintain profitability.

14

Environmental Concerns—Top of Mind with Market Participants

Key studies from our 2013 content plan:

• European Waste Electricals and Electronics Recycling

• Global Waste to Energy Plant Market

• Smart Waste Recycling Plants Market

• Green/Energy Efficient Power Quality Equipment

• Greening of Data Centers

Rounding out the top three were concerns about finding opportunities in increased

environmental awareness and legislation.

Source: Frost & Sullivan

15

Energy Recovery

from Waste

Energy Efficiency and

Smart Buildings

LED Lighting

Revolution

Top 10 Markets

of the Future

Source: Frost & Sullivan

Energy & Environment—Top 10 Technologies and Markets to Watch for

in 2020

Advanced Batteries

and Energy Storage Solar Photovoltaic

(PV)

Gas-fired Power

and Shale Gas

Exploitation

Small-scale

Distributed

Generation

Smart Water Networks

Energy

Harvesting Smart Grid and

Smart Energy

16

Market Intelligence Delivery Platform

Source: Frost & Sullivan

17

Frost & Sullivan Consulting—Functional Focus

Client

Functions

Source: Frost & Sullivan

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