1 1 Gian Gherardo Calini Head of Market Development European GNSS Supervisory Authority
Jan 19, 2016
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1
Gian Gherardo CaliniHead of Market Development
European GNSS Supervisory Authority
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GSA Market Development and R&D strategy - Agenda
GNSS downstream market and benefits
FP7 Strategic objectives
GSA approach
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3
GSA Market Development and R&D strategy - Agenda
GNSS downstream market and benefits
FP7 Strategic objectives
GSA approach
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All players shall benefit from a huge global GNSS market …
GNSS worldwide market* revenuesProducts & services, €bn
0
50
100
150
200
250
300
20
07
08
09
10
11
12
13
14
15
16
17
18
19
20
Note: * Enabled market, i.e. including both price of services and devicesSource: L.E.K. research and analysis
5
5
A new digital camera on the market has a built in compass, able to geo-tag images as they are captured
Source: L.E.K. research and analysis
A new watch incorporates a high sensitivity GPS, allowing to monitor altitude, barometric pressure, speed and distance
A new ultra mobile PC, just presented in the US, works also as Personal Navigation Device
… experiencing a continuing trend of new products and services…
A new software able to show nearby points of interest, as well as a capture button to record favourite routes, locations, and voice memos
A navigation device specific for the trucking industry, able to provide, specific information (e.g. height restrictions, hazardous materials restrictions, points of interest)
A GPS-based waterproof recovery and tracking device, features also always-on cellular communications for security monitoring
Nokia has introduced a new series of mobile phones with a built-in GPS receiver with Nokia Maps application and navigation services
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6
Europe has a significant market share in key sectors of a relatively consolidated market …
Market size of EU players by industryProducts & services, %
EU EU
EUEU EU EU
Non EU Non EU
Non EUNon EU Non EU Non EU
0
10
20
30
40
50
60
70
80
90
100
Chip
sets
Platf
orm
s
Dev
ices
(Roa
d)
Dev
ices
(LBS
)
Cont
ent &
appl
. (Ro
ad)
Serv
ices
(LBS
)
Note: * Approximate figuresSource: L.E.K. research and analysis
Size (€bn)*
Concentration
0.5
VeryHigh
20
Medium
>5
High
>80
High
1VeryHigh
>200
MediumEurope is a first tier player within the GNSS industry:
• In the key segments of services and devices it has a global market share ranging from 27% to 42%
• Europe has also a strong presence in other segments of the value chain
7
7
0
10
20
30
40
50
60
70
Ups
trea
m
Dow
stre
am
Use
rs
Soci
al
Tota
lbe
nefit
s
… and is therefore well positioned to exploit the benefits brought by Galileo
Source: L.E.K. research and analysis
Benefits for European firms, users and society Cumulated up to 2030, €bn
11 3 63
45
Galileo will bring €63bn of cumulated benefits to Europe up to 2030
• Downstream and upstream industries will increase their competitiveness
• Users will benefits from launch of new services and from increased performance on existing ones
• Among social benefits, a reduction of pollution as well as increased safety will be the major source of benefits
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GSA Market Development and R&D strategy - Agenda
GNSS downstream market and benefits
FP7 Strategic objectives
GSA approach
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FP7 Strategic Objectives
1. Create economic value
2. Ensure EGNOS and Galileo competitiveness
3. Maximise public benefits
4. Project the image of Europe
FP7: stimulating R&D towards market and GNSS industry progress
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GSA Market Development and R&D strategy - Agenda
GNSS downstream market and benefits
FP7 Strategic objectives
GSA approach
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11
R&D is a key element in our approach …
Generation/ Concept
Generation/ Concept
Readiness level of technology, application and ideas
Validation/ Demonstration
Validation/ Demonstration Completion/ OperationCompletion/ Operation
Awareness programme•Network events•Business plan contest•Marketing
Support to R&D•Research programmes•Joint research•Expert network
Business incubation•Incubation•Expert network•Test environment
Funding
•Seed funding•VC funding•JV•M&A
Entry to Market
Entry to Market
FP7 focus
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We concentrate on projects and activities impacting the whole value chain …
Device makers require integrated solutions to produce complex
products cost effectively
Services are becoming keyto attract new customers
Focus is on applications (more than 50% of FP7 1st call) which drive the downstream industry
Chipset providersChipset
providers
Platform & receiver
manufacturers
Platform & receiver
manufacturers
Devicemanufacturers
Devicemanufacturers
Content & applications
providers
Content & applications
providers
Service providersService
providers
13
13Product Maturity
Pote
ntial
End-to-end Concept
Tech. Devp.
Regulatory/ legal.
Business economics
Pre-market trial
Road PricingLBS social
LBS innovation
Com. Aviation
Maritime
RailTiming
Security
Road Congestion
Road VASRoad Fleet mgt.
General Aviation
Aviation airports
Agriculture
Road Emergency
Downstream markets opportunities have been reviewed…
Surveying
+
-
14
14
…In the 1st call applications in road, aviation and LBS also via SMEs were addressed …
Topic Budget (€m)
# of projects
Road Innovative GNSS-based road applications - focus on RUC and VAS
2.7 2
LBS Innovative GNSS-based mobile LBS Applications
2.3 2
Aviation Accelerating EGNOS adoption in aviation - focus on general aviation
1.9 2
SME/LBS Innovation
Open call for focussed innovative projects in mass-market GNSS applications
2.7 9
9.6 15
15
15
… while the 2nd call the main theme is to develop downstream markets via public sector adoption …
Objectives of the 2nd call
• Stimulate EGNOS and CDDS use in EGNOS' priority segments (e.g., Aviation, Agriculture)
• Prepare Galileo introduction in segments with long lead times (e.g., Other Transport)
• Stimulate EU industry competitiveness in GNSS downstream markets by promoting innovation and supporting SMEs
Topics covered
• Road telematics with emphasis on safety
• Fleet management and logistics• High precision, including
agriculture• Accelerating EGNOS adoption
in aviation• EGNOS in rail and maritime• Social LBS• SAR service• Education and and innovation
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FP7 will also support priority actions to stimulate markets
• Promoting tools beyond R&D to accelerate market development (e.g. Contests for ideas)
• GNSS Knowledge hub for Application Developers and Users
• Galileo and EGNOS users’ needs monitoring• EGNOS Market Entry Actions, including EDAS Beta
testing• …