Megatrends will Change the Way Chemicals are Used in Construction & Utilities
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Transcript of Megatrends will Change the Way Chemicals are Used in Construction & Utilities
Megatrends Will Change the Way Chemicals Megatrends Will Change the Way Chemicals are Used in Construction & Utilitiesare Used in Construction & Utilities
Health and Wellness will be the Biggest Driver of ChangeHealth and Wellness will be the Biggest Driver of Change
Dr. Brian Balmer, Dr. Leo DokosDr. Brian Balmer, Dr. Leo Dokos
Chemicals & Materials
21 June 2012
© 2012 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.
Today’s Presenters
Dr. Leo Dokos,
Research Director
Frost & Sullivan
Dr. Brian Balmer,
Industry Principal
Frost & Sullivan
2
• Performance Materials
• Twelve years' research experience at Frost & Sullivan
• Contributor to the company's Megatrends vision
• Chemicals & Materials in Transportation, Construction & Utilities
• Thirteen years’ experience in technical, materials and market research
• Directing the strategy of two programme areas
IntroductionMegatrends and Applications of Chemicals & Materials
The need to enhance functionality & performance
Improvements in health & wellness
Chemicals &Materials
4
Globalisation of people, products and processes
Development of a low carbon economy
Construction
& Utilities
FDC & Personal
Protection
Automotive &
Transportation
Why Now?Health & Wellness issues in Construction & Utilities sectors are regularly in the news
• The need for clean, healthy water was re-emphasised during the UN's World Water Day 2012, on 22 March
• The impact of our buildings on our health & wellness has been emphasised in recent years by the re-emergence of problems such as rickets, as people (especially children) spend more and more time indoors
• Solutions from the Chemicals & Materials industry have important roles to play in meeting the needs of these markets
"If you're like most Americans, 90 percent of your life is spent indoors. Therefore, it is critical to
"Well-being is about much more than money: it is about the possibilities that people have to fulfil the
5
"Following fresh concerns about vitamin D deficiency, the UK’s 4 Chief Medical Officers have written to health professionals reminding them about this issue.
"Figures show up to a quarter of the population has low levels of vitamin D in their blood."
BBC news, Feb 2012
life is spent indoors. Therefore, it is critical to ensure your home is as healthy as it can be!"
Dow Safetouch brochure
about the possibilities that people have to fulfil the life plans they have reason to choose and pursue. Thus, our call for a new economics - an economics of human development."
20th UN Human Development Report, 2010
Healthy BuildingsFive major health & wellness trends will drive change in the use of chemicals in the
Construction sector
7
Architectural design Design, layout and ergonomic considerations
Healthy BuildingsFive major health & wellness trends will drive change in the use of chemicals in the
Construction sector
Letting good things in
Optimising ambient conditions of natural light, ventilation and humidity, without compromising thermal insulation performance
8
Keeping bad things out
Minimising external pollution such as noise & allergens
Architectural design Design, layout and ergonomic considerations
Healthy BuildingsFive major health & wellness trends will drive change in the use of chemicals in the
Construction sector
Letting good things in
Optimising ambient conditions of natural light, ventilation and humidity, without compromising thermal insulation performance
Safe building materials
Air quality, emissions & toxicity concerns
9
Keeping bad things out
Minimising external pollution such as noise & allergens
Architectural design Design, layout and ergonomic considerations
Hygienic buildings
Disease, micro-organisms, mould, pest infestations etc.
Source: Pots of Paint
Source: Frost & Sullivan
Healthy BuildingsExternal environmental factors (good and bad)
Letting Good Things In
• Importance
• Access to natural sunlight and good ventilation is critical to the feeling of well-being indoors, but is at odds with the desire to make buildings as energy-efficient as possible too.
• Impact on Chemical Industry
• New energy-efficient glazing technologies
Keeping Bad Things Out
• Importance
• Negative aspects of the external environment, especially noise, are a major cause of health problems (in this case stress and heart problems).
• Impact on Chemical Industry
• Several chemical products can help reduce the impact of noise pollution
10
• New energy-efficient glazing technologies let more light in without compromising the building's energy rating.
• Winners
• Akzo Nobel with its Dulux "Light & Space" paint range
reduce the impact of noise pollution (noise insulation, acoustic glazing, and gap sealants)
• Winners
• Bayer Material Science, with several noise insulation solutions
Healthy BuildingsChemical & biological factors
Safe Building Materials
• Importance
• Several chemicals in construction products have been linked with health problems, such as formaldehyde and paint solvents
• Impact on Chemical Industry
• Move towards "free from..." products, e.g. solvent-free paints, formaldehyde-free wood composites
Hygienic Buildings
• Importance
• Protection against disease is a major concern in public buildings, especially healthcare facilities
• Impact on Chemical Industry
• Opportunity for antimicrobial products including both coatings and plastics
11
wood composites
• Winners
• Henkel with Ceresit Microgranular, a tile adhesive designed to create less irritating dust
• Winners
• Agion antimicrobial technology, which is integrated into a number of end-products
• DuPont with its Corian work surface materials
Source: Pots of Paint
Healthy BuildingsOverall building design factors
Architectural Design
• Importance
• LEED certification now includes considerations linked to design and ergonomic considerations for the occupants
• Impact on Chemical Industry
• A critical factor for architecture in general, the opportunities for new building
12
the opportunities for new building materials and construction chemicals are still be discovered
• Winners
• Rehau, a company that has recognised this need and is: "systematically revolutionizing... the design and functionality as well as the safety and comfort of construction."
Poll Question
Which of these five issues do
you think will have the greatest
impact on the chemicals &
materials used in buildings,
up to 2020?
• Letting good things in
• Keeping bad things out
• Safe building materials
13
• Hygienic buildings
• Architectural design and ergonomics
Health & Wellness Trends in WaterWhilst low-carbon and sustainability trends are an important driver of change in water, health
& wellness trends still dominate
Health & Wellness
15
Health & Wellness Trends in WaterWhilst low-carbon and sustainability trends are an important driver of change in water, health
& wellness trends still dominate
Health & Wellness
Environmental risks Drinking water
16
Health & Wellness Trends in WaterWhilst low-carbon and sustainability trends are an important driver of change in water, health
& wellness trends still dominate
Health & Wellness
Availability QualityIndustry risks External environment
Environmental risks Drinking water
17
Health & Wellness Trends in WaterWhilst low-carbon and sustainability trends are an important driver of change in water, health
& wellness trends still dominate
Health & Wellness
Availability QualityIndustry risks External environment
Day to daymanagement
Emergencyresponse Sourcing
Makingdrinkable Chemical Bacterial
Environmental risks Drinking water
18
management response Sourcing drinkable Chemical Bacterial
Health & Wellness Trends in WaterWhilst low-carbon and sustainability trends are an important driver of change in water, health
& wellness trends still dominate
Health & Wellness
Availability QualityIndustry risks External environment
Day to daymanagement
Emergencyresponse Sourcing
Makingdrinkable Chemical Bacterial
Environmental risks Drinking water
19
management response Sourcing drinkable Chemical Bacterial
Source: Frost & Sullivan
Industry SafetyProtecting the health of workers in the water industry
• Importance
• Despite industry initiatives to improve safety, accident rates in the Water industry are still higher than in other utilities
• Impact on Chemical Industry
• Investment in safety by water companies will include growth in expenditure on PPE
• Winners
Some PPE companies such as Scott have
Ag, Farming & Fisheries
Water
Manufacturing
Construction
Utilities (exc. Water)
Mining2
3
4
5
6
Accid
en
t R
ate
per
100 E
mp
loyees
Accident Incidence Rates in Water Compared to Other Industries (USA), 2010
20
• Some PPE companies such as Scott have a dedicated product offering for the water industry
0
1
0 5,000 10,000 15,000
Accid
en
t R
ate
per
100 E
mp
loyees
Industry Employment (000's)
Source: BLS / Frost & Sullivan analysis
"Water Ahead 2007-2010" was a major occupational health and safety initiative for
the UK water industry
Environmental ManagementManaging the quality of the external environment from which our water is sourced
• Importance
• Managing the quality of the general environment that serves as our fresh-water resource (rivers, lakes etc.) is becoming of increasing importance
• Impact on Chemical Industry
• Outbreaks of blue-green algae can be reduced by extracting phosphorous from waste water
"New found fame has escalated toxic blue-green algae from a naturally occurring phenomenon, to one of the nation's most critical water quality issues."
Source: Australian Institute of Natural Resources (2009)
"The threat posed by toxins from cyanobacteriato water supplies has increased world-wide during the past 30 years."
21
• Winners
• Companies developing technology to extract phosphorous e.g. Ostara
Source: WHO
Disaster ResponseManaging water in the environment in response to natural disasters
• Importance
• Climate change is leading to more violent rain storms; urbanisation is leading to more areas being prone to damage by these events; the outcome is more threat to health
• Impact on Chemical Industry
• In 2004, the US EPA estimated it would cost $55 billion to correct combined sewer overflow problems in publicly 0.40
0.60
0.80
1.00
1.20
1.40
1.60
Factors Contributing to Increased Chances of Stormwater Hazards (World), 2010-2050
Percentage of world population living in urban areas (2010 = 1)
Frequency of major
22
sewer overflow problems in publicly owned wastewater treatment systems
• Winners
• PU foams can be used to manage rainwater run-off, reducing the risk of flash flooding
"Overflow [of raw sewage into nearby waterways during heavy rain] is a problem for nearly 770 cities in the U.S."
Source: U.S. Environmental Protection Agency
0.00
0.20
0.40
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Frequency of major storms (2010 = 1)
Source: UN, USGCRP and Frost & Sullivan analysis
AvailabilityImproving availability of water in regions of scarcity
• Importance
• India and South Africa are forecast to be worst hit by the trend towards increasing water stress over the coming 15 years
• Impact on Chemical Industry
• New research suggests that huge water aquifers exist under some of the world's most arid regions in north Africa, but opinion is divided on whether it would be sustainable to mine this resource
Estimated potential productivity of water aquifers (Africa), 2012
23
sustainable to mine this resource
• Water pipeline infrastructure will be critical to development, as potentially could alternative sources such as desalination
• Winners
• Borealis, through its continued commitment to its Water for the World programme
PotabilityImproving drinkability of water in regions with poor access
• Importance
• 12% of the world's population do not have access to improved sources of water, and 39% do not have access to sanitation facilities
• Impact on Chemical Industry
• Innovative polymer fibre spinning technology has been key to the development of new water filtration technology being developed in South 100%
Access to Improved Sources of Water (Percentage of population), 2010
Target 10 of the Millennium Development Goals (MDGs) is to “halve by 2015 the proportion of people without sustainable access to safe drinking water and basic sanitation”.
World Health Organization
24
technology being developed in South Africa
• Winners
• Manufacturers of water treatment chemicals with access to developing markets through innovative local distributors e.g. Golden Stork in Ghana
0%
20%
40%
60%
80%
100%
Up to 100%
Up to 98%
Up to 95%
Up to 90%
Up to 75%
Source: WHO / Frost & Sullivan analysis
Chemical QualityMaintaining high standards of water quality in developed regions
• Importance
• The primary chemical hazard associated with water is lead from older water pipes. However, some people express concern about fluorides and chlorine in water too
• Impact on Chemical Industry
• The risk from lead can be reduced in two ways: by treating potable water so that lead is less soluble in it , or by replacing the pipes with alternative materials
The US Reduction of Lead in Drinking Water Act, ratified in January 2011, comes into force in January 2014
"As other sources of exposure to lead are increasingly controlled, water attracts increasing attention."
25
the pipes with alternative materials
• Winners
• Companies supplying materials for use in lead-free water pipe systems, such as Solvay
• There is also potential to see chemistry in a positive way as a source of desirable additives in water, including fluorides, magnesium etc.
"Can calcium and magnesium in drinking water contribute to preventing disease?"
Source: WHO study, 2009
increasing attention."
Source: World Health Organisation
HealthMinimising the chances of disease outbreaks in normally safe water
• Importance
• Legionella outbreaks are generally as a result of poorly maintained water systems. However, the true magnitude of the problem is unknown since few countries have adequate diagnostic and surveillance systems in place.
• Impact on Chemical Industry
• Chemicals form a primary line of defence against such outbreaks
1,000
2,000
3,000
4,000
To
tal N
um
ber
of
Incid
en
ces
Reported Cases of Legionella (US), 2000-2009
26
against such outbreaks
• Winners
• Suppliers of innovative biocides technologies to reduce the risk of legionella outbreaks e.g. Ashland
"Legionella bacteria occur naturally... [but] have only started to cause problems in the last 70 years or so, due to the way water is used and stored in the modern environment."
Source: Building Risk Management company publication
Source: Centers for Disease Control and Prevention
02000 2009
To
tal N
um
ber
of
Incid
en
ces
Poll QuestionWhich of these issues do you think will have the greatest impact on the chemicals & materials
used in water, up to 2020? Starting with the four Drinking Water issues...
Health & Wellness
Availability Quality
SourcingMaking
drinkable Chemical Bacterial
Drinking water
27
Sourcing drinkable Chemical Bacterial
Source: Frost & Sullivan
Poll Question (cont…)Which of these issues do you think will have the greatest impact on the chemicals & materials
used in water, up to 2020? Environmental factors...
Health & Wellness
Industry risks External environment
Day to daymanagement
Emergencyresponse
Environmental risks
28
management response
Source: Frost & Sullivan
Hot TopicsCompanies use many terms to describe the trends they see
Clean water and healthy rivers and streams
Clean water is a core environmental priority
Well-being
Wohlfühlen
High quality indoor environment
Sustainable access to safe drinking water
Hygiene
Indoor Air QualityStorm water
damageSmart water management
30
Health
Safety
Security
Socialresponsibility
Quality of life
Bien-être
Human Development
Wohlfühlen
Healthy homes
Urban planning
Wetland conservation and human
health and well-being
Healthy, comfortable and productivity-encouraging indoor environments
RegionsGlobal Frost & Sullivan Coverage and Emerging Geographies
Central and Eastern Europe• CEE Municipal Water & Wastewater Treatment
Chemicals Market• CEE Industrial sludge Treatment chemicals Market
Western Europe• Europe Smart Water Metering Market• Western Europe Municipal Water &
Wastewater Treatment Chemicals Market
China, SEA & APAC• Chinese Industrial Water and Wastewater
North America• North American Industrial Water and Wastewater
Treatment Chemicals Markets• Global Strategic Analysis of the Membranes
Materials Market for UF & RO
31
• Chinese Industrial Water and Wastewater Treatment Chemicals Market
• Strategic Analysis of the Indian Water Treatment Chemicals Market
• Strategic Analysis of Australian Water Treatment Chemicals Market
Africa• Mapping Water Treatment Technologies Used in West and North Africa• Opportunities analysis in the Public Sector Water Infrastructure Market in
Sub Saharan Africa• Analysis of Opportunities in the Waste Water Treatment Chemicals Market
in the Mining Sector• Sub-Saharan Africa Mining and Oilfield Water Treatment Chemicals Market• South African Industrial Water and Wastewater Treatment Chemicals
Market
Latin America• Strategic Analysis of the Brazilian
Municipal Water & Wastewater Treatment Chemicals Market
• Mexican Industrial Water and Wastewater Treatment Chemicals Market
Source: Frost & Sullivan.
Materials Market for UF & RO• North American and European Antimicrobial
Coatings Markets for Healthy Buildings
ConvergenceHow these trends will increase cross-sector opportunities
Building technology companies
Water tech. providers
(components and EPC)
Construction companies Chemicals &
Materials
Prevention of floods in urban
environments can be a combination of
architectural design and material selection
Integrate both active (technology) and
passive (materials) solutions to building
comfort challenges such as ambient
light, temperature and air quality
32
Utilities companies
Building management
service providers
and EPC)Materials Companies
Specify building materials that make
buildings easier to maintain in a
healthy state
Chemical companies developing automated
systems for chlorine dioxide generation
Utilise waste water as a valuable
secondary resource for chemicals
such as phosphorousSource: Frost & Sullivan
Who should be involved?How companies can take advantage of the opportunities by involving the right people
Stakeholders
• Producing materials that enable low-carbon technologies can contribute to the Environmental image of a chemical company
• So too can the production of health & wellness solutions contribute to the Social Responsibility image
Low Carbon solutions
Health & Wellness
ENV. Image
S.R. Image
33
• The complex interplay between low-carbon and health & wellness solutions means that Environment and Social Responsibility officers must work closely together to ensure a balance
Leaders
• Ultimately, a decision to prioritise the development of solutions to Health & Wellness needs will come from the top of any organisation e.g. the CEO
Wellness solutions
S.R. Image
SummaryHealth & Wellness will be a critical driver of change, creating opportunities for chemical
companies, across the Construction & Utilities sector
The past ten years have seen a huge improvement in the energy efficiency of buildings
• Therefore contributing to a Low Carbon future
The next ten years will see the focus now move onto the health & wellness of the building occupants
The water industry will clearly see enormous investment over the coming 15 years
• This investment is itself prompted by the need to provide clean and safe drinking water to the world's population
However, the health & wellness consequences of the water industry
34
wellness of the building occupants consequences of the water industry are more diverse, and create many opportunities for the chemical industry
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For Additional Information
Jeannette Garcia
Corporate Communications
Chemicals & Materials
(1) 210 477- 8427
Brian Balmer
Industry Principal
Performance Materials
(44) 1865 398634
38
Leonidas Dokos
Research Manager
Chemicals & Materials
(44) 1865 398685
Mark Hicks
Sales Manager, North America
Chemicals & Materials
(1) 210 247 2490