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WORLDWIDE SMART WINDOWS MARKETS: 20132020 A NanoMarkets-FlexTech Alliance Webinar

Wednesday June 26, 2013

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2013 NanoMarkets, LC

ABOUT NANOMARKETS LC
NanoMarkets provides industry analysis of advanced materials markets in the energy and electronics sectors. We have been covering these activities for a decade

Our work includes market, company and technology analysis, market forecasting and due diligence. NanoMarkets provides forecasts of all major thin-film/printed markets
Offerings include reports, custom consulting, seminars/webinars and inhouse training. NanoMarkets is based in U.S., with extensive contacts all over the world NanoMarkets has issued many reports on the business opportunities for smart glass technologies. This Webinar is based on Worldwide Smart Windows Markets: 2013-2020 published by NanoMarkets

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WORLDWIDE SMART WINDOWS MARKETS 2013-2020 Published in June of 2013 150 pages Detailed industry forecasts 80 tables Global perspective

Link to the report:

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WHAT ARE SMART WINDOWS?

Self-dimming windows
Self-cleaning windows Self-repairing windows BIPV glass OLED glass Transparent displays Low-e glass

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WORLDWIDE SMART WINDOWS MARKETS ($ Million)

2013 RESIDENTIAL
COMMERCIAL TRANSPORT

2016 605
421 2,565

2020 896
646 3,726

458
319 1,555

TOTAL

2,332

3,591

5,268

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SIX FACTORS SHAPING SMART WINDOWS MARKET

Rising real energy prices Adding value to commodity glass Real estate and automotive market recovery? Specifier skepticism Regulatory factors Comfort factors

No technology breakthroughs in past year

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SPECIAL FACTORS IN TRANSPORTATION Lowering cost of A/C Privacy based on the tint level of the film The "cool" factor when they buy a new car Aerospace as trend leader

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SPECIFIER SKEPTICISM PERCEPTION PROBLEM TO OVERCOME Cost too high? Consider price delta Performance not good enough? Opportunities for pioneering architects and construction firms Smart windows firms need to spread influence in the specifier community

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REGULATORY FACTORS

LEED and zero energy in building codes Consumer labeling Financial incentives including tax incentives

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COMFORT FACTORS

Advantages of natural light

Right amount of light for all seasons

Privacy
More glass means smart glass

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STATE OF THE SW MARKET BY REGION

Plusses Minuses Smart Windows Market in 2016

US

Housing market growing again

May just be a bubble

$1.1 billion

Europe

Focus on sustainable construction

Bad economy in many countries

$0.9 billion

Good real estate prospects in Germany

China

Specifiers are often Western or Japanese Emerging domestic SW firms

Unoccupied buildings

$0.6 billion

Japan

Consumers fond of new technology Undervalued real estate market?

Deflating economy

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PASSIVE SMART WINDOWS TECHNOLOGIES

Pros

Cons

Opportunities

Window films

Cost effective response to energy price rises

Passive tunability

Acceptance issues

Mature product

Passive Thermochromic Passive Photochromic Mature technology

Performance Limited suppliers Limited suppliers

Improved response times Broader range of dimability

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PASSIVE RESIDENTIAL SMART WINDOWS MARKETS ($ Million)

2013 WINDOW FILM THERMOCHROMIC FILM PHOTOCHROMIC FILM TOTAL 179 15 5 199

2016 226 15 7 248

2020 300 19 11 330

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SMART WINDOWS MARKET EVOLUTION: FROM PASSIVE TO ACTIVE

Real energy price rise drive passive and low-e Additional control and maturity of passive drives active

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ACTIVE SMART WINDOWS TECHNOLOGIES

Pros PDLC Privacy glass market is substantial Cons Opaque in off state Mostly small suppliers Opportunities Improved manufacturing costs Cost reductions

SPD

Clear to tinted; Bad at blocking IR broad spectrum One major supplier of applications Growing in the auto sector Electrochromic film seems likely to be confined to niches

Electrochromic Electrochromic glass widely used in automotive

More cost effective solutions Broad tunability

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BENCHMARKING OF ACTIVE SMART WINDOWS TECHNOLOGIES

Key advantages PDLC Active On-Demand Smart Windows PDLC chemistry is relatively easy to produce in a film form SPD Active On-Demand Smart Windows Electrochromic Active OnDemand Smart Windows Can achieve a highly dark state that Faster switching time blocks 99.5 percent of the entering compared to any other light, SPD technology does not create a technology hazy appearance, and the degree of clarity/opacity can be controlled by changing the applied voltage It does not completely block Not as effective as electrochromic smart Cost of manufacturing the light in the "off" state, windows in blocking IR radiation electrochromic glass is and in the "on" state, it has a high and is limited to hazy appearance applications that have flat surfaces Moderate Highest High PDLC will continue to be a niche product for providing privacy in commercial buildings SPD will continue to grow and will have broad adoption in residential and commercial buildings, as well as transportation. Reduction of manufacturing costs and the development of alternative low cost products

Key disadvantages

Cost
Likely market evolution

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ACTIVE RESIDENTIAL SMART WINDOWS MARKETS ($ Million)

PDLC SPD Electrochromic glass Electrochromic film Total

2013 42
198 14 6 259

2016 70
239 36 13 357

2020 132
271 123 40 566

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FACTORS FOR SUCCESS IN THE SMART WINDOWS BUSINESS

Technology improvements Global manufacturing and distribution Advanced manufacturing technologies for economies of scale Using established marketing, sales, and service networks Branding

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SUMMING UP

Smart windows are driven by rising real energy costs Shift from passive to active Limited opportunities for technology breakthroughs and some niche technologies Strongly dependent on economy $2.3 billion market in 2013

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LAWRENCE GASMAN
Mr. Gasman's is the principal analyst and co-founder of NanoMarkets. He is the author of recent studies related to smart glass and windows technologies and market and his consulting clients have included multinationals, start-ups and investors and he has advised them on new product introduction, market positioning and strategy, and sales potential. He has also provided due diligence on mergers and acquisitions for his financial clients and serves on the technology advisory board of a major specialty chemicals firm. Mr. Gasman has also spoken and written widely on the subject of new materials markets. His recent appearances have included talks at Semicon West, 2011Flex, SVC TechCon, and LED/OLED Lighting Japan. Mr. Gasman's latest book is on the commercialization of nanotechnology for Artech House. Mr. Gasman was educated at Manchester University, The London School of Economics and London Business School.

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CONTACT US
Address: NanoMarkets, LC PO Box 3840 Glen Allen, VA 23058

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Telephone / Fax 804-270-1718 804-360-7259

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Email / Web info@nanomarkets.net www.nanomarkets.net

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THANK YOU FOR YOUR TIME!

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