The global cleantech market has had a rough couple of years with bankruptcies, profit warnings, staff layoffs, financing challenges and a downward trend in cleantech indices. Despite this, Frost & Sullivan believes the long-term outlook for cleantech is positive.

"We witnessed important solar manufactures going bankrupt, tariffs cuts being accelerated, even retroactive cuts in feed-in-tariffs for already operating PV projects. This situation affected investors' confidence, and the current scenario does not look promising," said Frost & Sullivan, Renewable Energy Programme Manager, Alina Bakhareva.

"The skeptics may feel it is a moment of triumph, and their predictions on a cleantech bubble collapsing are coming true," Bakhareva continued. "But are they indeed? Are we witnessing an inglorious end or a temporary slowdown? We believe that the cleantech industry holds the answer to a few looming global problems in the energy, food and water industries. "

Frost & Sullivan believes there will be three sectors that show the most promising and innovative developments with a positive impact on the overall market:

1. Smart Water.  Opportunities will emerge in both hardware and software, including combined analytical control and automation systems.
2. Energy Storage. On the customer side of the meter, batteries, molten salt for CSP projects, and creative distributed storage applications are being tested.
3. Energy Efficiency. Frost says the cheapest way to reduce carbon footprint and strain on the grid is still energy efficiency. Extensive commercial building retrofits can save up to 50 percent through energy-efficient windows, heat-saving radiator insulation, improvements to lighting and climate control systems.

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