Blue Planet: Demand for Envirosuite’s water division opens $3bn global market in just a few months
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The Aussie listed enviro-tech firm Envirosuite says its latest intelligent technology division – EVS Water – has already gone global, cracking open a near $3bn dollar market in less than 12 months.
In an update to the market on Tuesday, Envirosuite (ASX:EVS) revealed the true extent of EVS Water’s accelerating growth – the newest member of its growing line of environmental tech solutions has found strong demand in markets worldwide – across the Asia-Pacific, into Europe and the Americas.
That’s a fair achievement.
Only launched last year, EVS Water’s software “materially reduces the two highest costs in water treatment and delivery: electricity and chemicals” and is already nearing its initial commercial target of reaping a million dollars in total sales.
Envirosuite says the EVS Water Plant Optimiser software – with the firm’s unique machine-learning IP and deterministic modelling has a massive positive impact on reducing the collective environmental footprint of EVS customers.
The early traction of EVS Water gives EVS another opportunity to scale into a fast-growing global market, with business demand for efficient water solutions projected to already be a near $3bn market which will only grow.
With the reality of climate change now insisting a response from industry and government, CEO Jason Cooper told Stockhead, EVS already has runs on the board when it comes to assuming leadership in the global environmental technology space.
“As we have shown with EVS Aviation, we know what it takes to be a global market leader.”
“EVS Water is the newest, highest margin, and fastest growing of our three product lines with the largest prospective market size. Our widespread customer wins demonstrate that it is quickly receiving market validation by industry leaders in each major region of the globe.
After successfully commercialising its monitoring solutions for wastewater and clean water management, the EVS Water division is already building out a strong local client base too, which includes Water Corporation — Western Australia’s water utility responsible for serving some two million West Aussie’s.
On that project, EVS Water’s SaaS product SeweX provides support for the “proactive management of corrosion, odour and safety in sewer networks related to sulphide and methane”, the company said.
In line with the market opportunity for water management, EVS completed a $10.5m share placement back in December, with some of the funds committed to building out the EVS Water headcount across technical and sales roles, to meet the demand from the company’s expanded product base.
“With the supportive capital raise completed in December 2021 we are well funded to achieve our growth objectives by leveraging Envirosuite’s existing global footprint of customers, people and partners to penetrate the enormous market for EVS Water.
“We’ve invested in a high-calibre, industry experienced sales team, along with a specialist product and development team that includes several PhDs to expedite the commercialisation and scalability of EVS Water.
“With the initial success to date and scalable opportunities ahead there is confidence that this new product stream could be a substantial future contributor to group revenues and earnings,” Cooper said.
Along with SeweX, the experienced sales team will also be focused on distribution for Plant Optimiser, a digital twin solution, which provides analytics and forecasting tools for water quality compliance.
EVS Water services will also be delivered at a desalination and drinking water plant in Asia, and the recently announced strategic partnership with multinational engineering services firm GHD.
The commercial proposition of EVS Water is simple, Cooper says. That the customer’s cost of deployment is more than offset by productivity gains and the substantially extended life of water assets through reduced chemical strain, delaying the cost of upgrades and replacements.
But it’s this $2.8bn annual global market opportunity that Cooper considers is EVS Water’s ‘ultimate prize.’
With the recent wins in Europe, USA, Australia and Singapore proving that EVS Water has a stand-out market offering with its unique IP, supported by Envirosuite’s operational reach and existing customer base across more than 40 countries, added.
This article was developed in collaboration with Envirosuite, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.