The 2010 SDTC Cleantech Growth & Go-To-Market Report
Canada’s first comprehensive national report on the cleantech sector was released on March 25th at Globe2010 in Vancouver. Based on input from over 160 cleantech companies, the 2010 SDTC Cleantech Growth & Go-to-Market Report projects that the cleantech sector is on the cusp of being the green engine driving Canada’s economic growth.
Click here to read the report (PDF)
Written for policy makers, investors, procurers and company managers, the Report first offers frameworks and analysis with which to understand a complex industry. It provides key industry growth figures for the first time across an industry dominated by privately-held enterprises, enabling important benchmarking exercises. It goes on to detail the commercialization investments which have been required by the highest growth companies within the clean technology sector.
The Report is based on extensive quantitative and qualitative research undertaken with 450 companies in the fall of 2009 and the winter of 2010; 168 companies participated in primary research, with another 15 companies participating in qualitative case studies.
The Strengths
- The Canadian clean technology industry grew at a compound annual growth rate of 47 per cent during the worst recession in recent history. Highest growth companies achieved growth of 170 per cent during the recession. Planned compound annual growth rate for 2010 to 2012 is 117 per cent. Highest growth rates for 2010 to 2012 are expected in the following sectors: Power Generation, Energy Efficiency, Energy Infrastructure and Industrial Process Efficiency.
- The industry will shift from being primarily a domestic market with 58 per cent of sales domestically in 2009 to being primarily an export market in 2010 (52 per cent of sales).
- 96 per cent of companies intend to compete in global markets with 40 per cent intending to do so through re-investment of profits only. The remaining 60 per cent plan on some form of financing.
- High-growth companies have three times more Vice Presidents from Commercialization disciplines like Marketing and Communications and Channel Management than do slower growth companies. When choosing between investing in building more technical product features and investing in product commercialization, high-growth companies invest two to three times more on commercialization than do slow-growth companies.
- 96 per cent of clean technology companies in Canada require between $1 and $30 million in capital making them efficient sources of job creation.
The Challenges
- Canada ranks third after US and Europe as an early adopter market for clean technology overall.
- Said another way, Canadian clean technology buyers prefer to buy clean technology from large systems integrators rather than from Canadian technology companies.
- For a country that is one of the largest exporters of electrical power in the world, there is a very small number of Energy Infrastructure (i.e., smart grid) companies.
- 86 per cent of Canadian clean technology companies have not yet broken through the $5 million revenue mark.
- Highest-growth companies are taking 10 years to get to the $10 million revenue mark. Slow-growing companies often get sold before they can become globally- recognized companies. High-growth companies aim for $100 in revenues within 10 years.
