Host: Reese Tisdale
Guest: Nina Rossiter | Analyst | Bluefield Research
Category: 🔬 Research | Digital Water
Podcast’s Essential Bites:
[4:03] NR: “2021 was pretty positive overall for digital water vendors. […] We track around 10 publicly traded digital water providers. And then of these providers, we would look at the reported businesses that contain digital water. And what we've noticed from this past year was an average revenue growth rate of 12% within their additional water businesses. And then also 7 out of 10 firms posted higher revenues in 2021, compared to […] 2019.”
[7:27] NR: “ In 2021, M&A in water, so that's not only including digital, they hit record levels. But then when we look at digital, […] it actually saw a 10% decline in total sales from 2020. And we found it might be because there has been a surge of digital water company valuations.”
[12:24] NR: “We've seen that the digital water market has definitely attracted interest from adjacent sectors, […] whether it's like a partnership or a product or new investments in 2021. […] In November, AWS, they launched their IoT TwinMaker, which is a digital twin service marketed towards water utilities and digital water tech providers.”
[19:22] NR: “The new focus and challenge this year comes from rising energy prices, and of course, the Russian invasion of Ukraine. I think we imagine interest rate hikes will slow M&A and VC investment. And then the really high energy costs might also influence utilities to scale back on their tech budgets, especially utilities in the highly exposed European markets. And then at the same time, we feel that short term price pressures with long term climate concerns will probably drive more demand for energy efficiency, which includes digital energy optimization schemes.”
Rating: 💧💧
🎙️ Full Episode: Apple | Spotify | Google
🕰️ 24 min | 🗓️ 04/05/2022
✅ Time saved: 23 min
Additional Links:
Report: “Digital Water: Key Trends, Project Activity, and Market Outlook, Q1 2022”
