Global cleantech public pure-play company analysis

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The cleantech public pure-play (PPP) universe continued to grow despite a challenging year. Market capitalization increased by 18%, with China and the United States claiming the most revenues.

EY - Global cleantech public pure-play company analysis

Note: Solar and wind encompasses technology companies;renewable energy generation includes project developers.
Source: EY analysis

Energy efficiency products took the lead in market cap, while solar retained leadership in revenues and in number of companies.

When we looked at cleantech PPP IPOs for 2012 by market and segment, we found China saw the most IPOs, with the total amount raised close to US$900m. Biofuels accounted for most IPOs. Solar raised more than one-third of the total IPO proceeds.

Profile of current cleantech PPP population

EY - Profile of current cleantech PPP population

The market cap of companies in all the regions has bounced back from the lows seen last year. Specifically, the number of companies in cleantech has increased in Asia Pacific, mirroring the growth of renewable energy in this region.

Revenue growth was strongest in Central and South America and was marginally negative in EMEA and Asia Pacific. Employee headcount increased by 24% year-over-year in Asia Pacific while remaining virtually stagnant in other regions.

Our cleantech PPP business segment analysis found energy efficiency products registered the strongest growth both in terms of market cap and the number of companies. Solar, wind and renewable energy generation sectors saw stability after significant erosion in market cap in the last two years.

Revenue growth was the strongest in wind and biofuel sectors during the last year; solar sector revenues continued to decline. China saw 85% of solar headcount growth, probably due to a low level of production automation compared to developed markets.