Mini Hearing on Transport Applications and Policy Options in

of innovation in

GNSS OEM receivers

Mini Hearing on Transport Applications and Policy Options

in the Action Plan on GNSS

Brussels, December 1, 2010

ir. Peter A. GROGNARD,

Founder & CEO

Septentrio nv

November 29, 2010© Septentrio Satellite Navigation 2

Septentrio Company Introduction

Europe’s leading manufacturer of professional GNSS receivers

Interuniversity Micro Electronics Center spin-off – www.imec.be

Started in January 2000 with 7 people – Today an international

team of 70+ experts in GNSS technology & business development

Celebrating Ten Years of Uninterrupted Innovation and Growth

MISSION

Design, develop & commercialize

High-end OEM satellite navigation products

Based on the Company’s proprietary satellite navigation technology

http://www.imec.be/


Septentrio Core Activities

Development, Production and Sales of high-precision GNSS receivers for professional applications Measurement : survey and scientific

Machine control: agriculture, construction, mining

Navigation: aeronautical, rail...

Security: PRS receivers

Custom-Engineering of Advanced GNSS Receivers Septentrio world leader in Galileo receiver technology

Key focus: winning worldwide market share

with state-of-the-art products


Septentrio Target Markets for GNSS Receivers

precision

SurveyMapping

Military

Aviation

MarSurvey

PrecA

g

Mach Ctl

PrecA

gGIS

Prof MarNav

Science

HH/911

LBS Timing

Tracking

10m m dm cm mm

Car NavConsumer

(incl HH,

Mar, ...)

Misc Precision

Nav/Autom.


High-Precision Position and Time Essential for

Enabling Efficient Industrial Operations

Saving Time - Money - Energy in 24/7 Operations



High-Level Working Group on GNSS2 (1998-2000)

Founding Member of Galileo Services (2001-2002)

Participating in Galileo Receiver Design Program since beginning : Receiver Requirements (2001-2002) Reference Receiver Design (2002-2003)

Delivery first Galileo receiver model to ESA (2004) Delivery GSTBv2 receivers (2005)

Used to receive first Galileo Signal from Space

Prime Contractor Test User Segment (since 2004) Projects for receiver development (since 2004) Supporting all Galileo spacecraft pre-launch tests Participating in GNSS application projects: FP6/FP7

Septentrio Professional Receivers : Galileo-ready

Top Priority: Capitalizing Leading Position

Septentrio:

Leading the World in Galileo Receiver Development

GNSS and Satellite Navigation Design: Problems and Challenges in Today’s Market

Place


9

Galileo Programme Main Objectives

Independence/Autonomy vis-à-vis other GNSS: Europe must have the ambition, political will ánd funding to

deploy a fully operational system ASAP

Without a clear & well-funded plan for deployment, downstream industry will hesitate to start development of new products

Industry might decide to support other system(s) first

To get a significant share of the huge and continuously growing worldwide GNSS market Downstream industry is where the recurrent business is

European industry is still world-class, but we have no choice but to continuously innovate

Standstill = China catches up with Europe in 2 to 3 years

10

GNSS Downstream Segment Opportunities (1/2)

New Business Activities

Jobs & Wealth Creation

Bigger GNSS Market Share

Space

Segment

Ground

Segment

User Segment

Galileo/EGNOS Infrastructure

Other GNSS

Applications /

Downstream Segment

11

20%

2025: European GNSS Applications Global Market Share

Scenario 1:

“No further support to GNSS

applications R&D” or

“What we can claim at best”

33%

Global Market

180 B€

36 B€/y

360 000 Jobs

60 B€/y

600 000 Jobs

+ 24 B€/y

+ 240 000 jobs

Global Market

180 B€

Figures to be regarded only as orders of magnitude to set ideas

GNSS Downstream Segment Opportunities (2/2)

Current Europe

market share in

GNSS sector

Usual Europe market

share in other

High-Tech Sectors

Scenario 2:

“Further support to GNSS

applications R&D” or

“To what we can aspire”

Mainly based on Industry

own investment in R&D

12

Request in line with EU2020 Strategy (1/2)

EU2020 Strategy : 3% of the EU's GDP in R&D

2/3 from the private sector

Assumption on public funding: 50% Member States

1 According to GSA GNSS Market Study, October 2010

13

Request in line with EU2020 Strategy (2/2)

2010, European Market share : 20%

2025, European Market share : > 20%

20%

EU GNSS GDP

~ 10 B€/yGlobal Core GNSS Market

50 B€1

1 58 B€ according to GSA GNSS Market Study, October 2010

(3%*1/3)/2EU contribution

to GNSS R&D

in 2011

50M€ at least

20%

EU GNSS GDP

~ 36 B€/yGlobal Market

180 B€

(3%*1/3)/2EU contribution

to GNSS R&D

in 2025

180M€ at least

14

European GNSS Research in Danger !

Major support for R&D at European level to be expected from Framework Programme(s)

Very limited support at National Level

350M€ initially allocated to GNSS R&D in FP; some 100M€ left after cuts to fund Infrastructure

3rd FP7 GNSS Call for Proposals (July 2010)

Thereafter: no budget - No further support!

15

What are the Challenges and Risks?

Importance of Galileo for Europe and strong need to complete

infrastructure deployment as fast as possible ESSENTIAL: Priority to at least OS and PRS: sovereignty, economy, security

Support to GNSS applications development in Europe can not

be delayed until Galileo early services are operational

The battle for worldwide GNSS market level is NOW!

Current market boom, especially in BRIC countries

Immediate benefits from GNSS applications and services development from downstream market activities

Current economic crisis provides compelling justification to

support and develop new industrial activities in Europe

16

What is Urgently Required ?

Until 2013 (very short term) To restore the initial GNSS R&D budget within FP7

- to reallocate 250M€ to GNSS R&D to restore the 350M€

After 2013 (medium term) To increase the level of EU’s GNSS R&D funding through

FP8 to match other continents public R&D investment

EU should provide European GNSS downstream Industrywith means to be/remain competitive against othereconomic powers, such as US, Canada but also Chinaand Brasil who receive funding from their governments.

If EU is the (only) trading block where no such fundingis provided, European industry will lose markets quickly.

17

A Perfect Timing to Act

FP7 Mid Term Review under progress

Possibility to recover financing for GNSS R&D from unspent budget

Reallocation of unspent budget to be arbitrated soon

of innovation in

GNSS OEM receivers

Thank You !

For further information, please check:

www.septentrio.com

www.galileo-services.org

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