A Ministry of Industry Trade and Labor survey of Israel’s water technologies industry predicts that exports will grow 28% to $1.1 billion in 2007. The sector had $850 million in exports in 2006, up 21% on 2005. The ministry attributes the sector’s rapid growth to higher sales by existing companies and exports of newly launched products by start-ups.
270 companies and institutes are active in the water technologies sector, including 60 start-ups. The industry has an estimated 8,000 employees.
The global water market is currently estimated at $410 billion, and is expected to exceed $600 billion by 2015. The Ministry of Industry said that Israel is already is a key player with a large share in the global water technologies industry. The ministry added that Israel is a leader in four areas: construction of seawater desalination plants, irrigation systems, wastewater treatment and reuse, and management and monitoring of water sources. The world’s largest seawater desalination plant is in Ashkelon.
It is highly unusual for either Israeli companies or venture capital funds to invest in cleantech start-ups. Most cleantech investments in Israel are made in established companies with sales. Two exceptions are venture capital funds BHCO Group and NRVision Ltd.
Published by Globes [online], Israel business news - www.globes.co.il - on August 19, 2007
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