Slides from a NanoMarkets webinar that presented findings from the firm's report, "Worldwide Smart Windows Markets 2013"

1. www.ecisolutions.com
WORLDWIDE SMART WINDOWS MARKETS: 2013-
2020
A NanoMarkets-FlexTech Alliance Webinar
Wednesday June 26, 2013
© 2013 NanoMarkets, LC
www.nanomarkets.net

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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 in-
house 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
© 2013 NanoMarkets, LCwww.nanomarkets.net
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3. WORLDWIDE SMART WINDOWS MARKETS 2013-2020
Published in June of 2013
150 pages
Detailed industry forecasts
80 tables
Global perspective
Link to the report:
www.nanomarkets.net © 2013 NanoMarkets, LC
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4. WHAT ARE SMART WINDOWS?
• Self-dimming windows
• Self-cleaning windows
• Self-repairing windows
• BIPV glass
• OLED glass
• Transparent displays
• Low-e glass
www.nanomarkets.net © 2013 NanoMarkets, LC
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5. WORLDWIDE SMART WINDOWS MARKETS ($ Million)
2013 2016 2020
RESIDENTIAL 458 605 896
COMMERCIAL 319 421 646
TRANSPORT 1,555 2,565 3,726
TOTAL 2,332 3,591 5,268
www.nanomarkets.net © 2013 NanoMarkets, LC
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6. 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
www.nanomarkets.net © 2013 NanoMarkets, LC
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No technology breakthroughs in past year

7. 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
www.nanomarkets.net © 2013 NanoMarkets, LC
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8. 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
www.nanomarkets.net © 2013 NanoMarkets, LC
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9. REGULATORY FACTORS
• LEED and zero energy in building codes
• Consumer labeling
• Financial incentives including tax incentives
www.nanomarkets.net © 2013 NanoMarkets, LC
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10. COMFORT FACTORS
• Advantages of natural light
• Right amount of light for all seasons
• Privacy
• More glass means smart glass
www.nanomarkets.net © 2013 NanoMarkets, LC
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11. 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
Good real estate prospects in Germany
Bad economy in many
countries
$0.9 billion
China Specifiers are often Western or Japanese
Emerging domestic SW firms
Unoccupied buildings $0.6 billion
Japan Consumers fond of new technology
Undervalued real estate market?
Deflating economy
www.nanomarkets.net © 2013 NanoMarkets, LC
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12. PASSIVE SMART WINDOWS TECHNOLOGIES
Pros Cons Opportunities
Window films Cost effective
response to energy
price rises
Passive tunability
Acceptance issues Mature product
Passive
Thermochromic
Performance
Limited suppliers
Improved
response times
Passive
Photochromic
Mature technology Limited suppliers Broader range
of dimability
www.nanomarkets.net © 2013 NanoMarkets, LC
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13. PASSIVE RESIDENTIAL SMART WINDOWS MARKETS
($ Million)
2013 2016 2020
WINDOW FILM 179 226 300
THERMOCHROMIC FILM 15 15 19
PHOTOCHROMIC FILM 5 7 11
TOTAL 199 248 330
www.nanomarkets.net © 2013 NanoMarkets, LC
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14. 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
www.nanomarkets.net © 2013 NanoMarkets, LC
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15. ACTIVE SMART WINDOWS TECHNOLOGIES
Pros Cons Opportunities
PDLC Privacy glass
market is
substantial
Opaque in off state
Mostly small
suppliers
Improved
manufacturing costs
SPD Clear to tinted;
broad spectrum
of applications
Growing in the
auto sector
Bad at blocking IR
One major supplier
Cost reductions
Electrochromic Electrochromic
glass widely
used in
automotive
Electrochromic film
seems likely to be
confined to niches
More cost effective
solutions
Broad tunability
www.nanomarkets.net © 2013 NanoMarkets, LC
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16. BENCHMARKING OF ACTIVE SMART WINDOWS
TECHNOLOGIES
PDLC Active On-Demand
Smart Windows
SPD Active On-Demand Smart Windows Electrochromic Active On-
Demand Smart Windows
Key advantages PDLC chemistry is relatively
easy to produce in a film
form
Can achieve a highly dark state that
blocks 99.5 percent of the entering
light, SPD technology does not create a
hazy appearance, and the degree of
clarity/opacity can be controlled by
changing the applied voltage
Faster switching time
compared to any other
technology
Key disadvantages It does not completely block
the light in the "off" state,
and in the "on" state, it has a
hazy appearance
Not as effective as electrochromic smart
windows in blocking IR radiation
Cost of manufacturing
electrochromic glass is
high and is limited to
applications that have flat
surfaces
Cost Moderate Highest High
Likely market
evolution
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
www.nanomarkets.net © 2013 NanoMarkets, LC
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17. ACTIVE RESIDENTIAL SMART WINDOWS MARKETS
($ Million)
2013 2016 2020
PDLC 42 70 132
SPD 198 239 271
Electrochromic glass 14 36 123
Electrochromic film 6 13 40
Total 259 357 566
www.nanomarkets.net © 2013 NanoMarkets, LC
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18. 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
www.nanomarkets.net © 2013 NanoMarkets, LC
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19. 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
www.nanomarkets.net © 2013 NanoMarkets, LC
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20. 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.
www.nanomarkets.net © 2013 NanoMarkets, LC
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CONTACT US
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22. THANK YOU
FOR YOUR TIME!
© 2012 NanoMarkets, LC
www.nanomarkets.net