Market Overview

CDP: Capital Goods Makers Forging a Low Carbon Industrial Revolution

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- New CDP
report finds capital goods sector is harnessing trends of
electrification, digitization and automation to create a low carbon
industrial revolution.

- 22 capital goods companies assessed, with Schneider Electric
(France), Vestas (Denmark) and CNH Industrial (UK)
identified as leaders.

- Demand for these transformative technologies are growing
significantly. Energy storage systems could represent an investment
opportunity worth US$103bn by 2030.

A low carbon industrial revolution is being driven by innovation in the
capital goods sector – according to a new report ‘Bridging
low carbon technologies'
from environmental non-profit and
investment research provider CDP
today. Capital goods companies provide the products and solutions that
major high-emitting sectors such as power generation, buildings and
transport rely on.

From microgrids to machine autonomy, energy storage to hybrid
renewables, a set of 22 capital goods companies are assessed on how well
they are harnessing trends such as electrification, digitization and
automation to help meet the Paris Agreement commitment to keep global
warming below 2°C.

Some highlights from the report include:

  • Electrification is identified as the biggest opportunity for
    the capital goods sector, with microgrids and energy storage systems
    ranked as the technologies with the greatest potential for green
    economic transformation. The overall demand for energy storage is set
    to grow from current levels of 10 gigawatts to 125 GW by 2030,
    creating an investment opportunity of US$103bn.
  • Capital goods companies are identifying and investing in
    transformative and radical technologies
    such as microgrids, hybrid
    renewables and energy storage. Schneider, ABB, Mitsubishi Electric,
    Siemens
    and Honeywell lead the way on this.
  • Renewable energy is an important profitability driver for several
    companies
    , with Vestas leading in hybrid renewables and
    large-scale digitalization.

Carole Ferguson, Head of Investor Research, CDP said, "We are
on the verge of a low carbon industrial revolution. Regulators and
markets are demanding the decarbonization of high emitting sectors and
the industrial corporations at the end of the chain are looking to their
suppliers to find innovative new solutions and equipment. The good news
is that the capital goods sector is starting to meet this challenge."

"From hardware to software, decentralization to digitalization,
industrial suppliers are finding solutions that build low carbon into
the DNA of big industry.

You can view the executive summary of the report here.

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