Berg Insight Report Catalogue

Transcription

Berg Insight Report Catalogue
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STRATEGIC
RESEARCH
SERIES
REPORT
CATALOGUE
SERIES
Table of Contents
Wireless M2M Research Series
Fleet Management in Europe – 7th Edition
3
Fleet Management in the Americas – 2nd Edition
6
Retail Applications and Wireless M2M – 2nd Edition
9
The Global Wireless M2M Market – 4th Edition
12
Consumer Electronics and Wireless M2M – 2nd Edition
15
Container Tracking and Security
18
mHealth and Home Monitoring – 4th Edition
21
ITS in Public Transport
24
Smart Metering in North America and Asia-Pacific – 2nd Edition
27
Smart Metering in Europe – 8th Edition
30
Security Applications and Wireless M2M – 4th Edition
33
Smart Homes and Home Automation
36
Car Telematics and Wireless M2M – 5th Edition
39
LBS Research Series
Location-Based Advertising and Marketing
42
Mobile Navigation Services and Devices – 5th Edition
45
Mobile Location-Based Services – 6th Edition
48
LBS Platforms and Technologies – 3rd Edition
51
Mobile VAS Research Series
Mobile Advertising and Marketing – 5th Edition
54
The Mobile Application Market
57
Mobile Money in Emerging Markets
60
Next Generation Technology Research Series
Small Cells and Wi-Fi Offloading
63
Handset Connectivity Technologies – 3rd Edition
66
The Mobile Broadband Connectivity Market – 6th Edition
69
Smartphone Markets and Technologies – 2nd Edition
72
STRATEGIC
RESEARCH
SERIES
REPORT
CATALOGUE
SERIES
M2M Research Series
Fleet Management
in Europe
Fleet management in Europe is the seventh consecutive report
from Berg Insight analysing the latest developments on the fleet
management market in this region.
This strategic research report from Berg Insight provides you with
150 pages of unique business intelligence, including 5-year industry
forecasts, expert commentary and real-life case studies on which to
base your business decisions.
Highlights from the seventh edition of this report:
Insights from 40 new executive interviews with market
leading companies.
New data on vehicle populations and commercial fleets in
Europe.
Comprehensive overview of the fleet management value
chain and key applications.
In-depth analysis of market trends and key developments.
Updated profiles of 67 aftermarket fleet management solution
providers.
Summary of OEM propositions from truck, trailer and
construction equipment brands.
Revised market forecasts lasting until 2016.
Order now!
Please visit our web site to order this
report and find more information about
our other titles at www.berginsight.com
See inside for further details
Berg Insight’s M2M Research Series
What are the key business opportunities in the emerging wireless M2M market?
Berg Insight’s M2M Research Series is a unique series of market reports
published on a quarterly basis. Each title offers detailed analysis of a specific
vertical application area such as smart metering, fleet management or vehicle
telematics. Once per year we also publish summaries of our research with detailed
forecasts for the Global and European wireless M2M markets, respectively.
www.berginsight.com
M2M Research Series
A second wave of market consolidation
anticipated for 2013
Fleet management is an ambiguous term used in reference to a wide
range of solutions for different vehicle-related applications. Berg Insight’s
definition of a fleet management solution is a vehicle-based system that
incorporates data logging, satellite positioning and data communication
to a backoffice application. The history of fleet management solutions
goes back several decades. On-board vehicle computers first emerged
in the 1980s and were soon connected to various satellite and terrestrial
wireless networks. Today mobile networks can provide ubiquitous online
connectivity at a reasonable cost and mobile computing technology
delivers very high performance, as well as excellent usability. All of these
components combined enable the delivery of vehicle management,
transport management, driver management and mobile workforce
management applications linking vehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the European economy. According to official statistics there were 35.5 million commercial
vehicles in use in EU23+2 in 2008. The 6.2 million medium and heavy
trucks accounted for more than 75 percent of all inland transports, forming a € 250 billion industry. Approximately 0.7 million buses and coaches
stood for 9.3 percent of all passenger kilometres. Last but not least, the
greater part of the 28.6 million light commercial vehicles (LCV) in Europe
was used by mobile workers and for activities such as distribution of
goods and parcels.
Berg Insight is of the opinion that the European fleet management market
has entered a growth period that will last for several years to come.
Individual markets may however suffer temporary setbacks, depending
on the local economic developments. The number of fleet management
systems in active use is forecasted to grow at a compound annual growth
rate of 17.9 percent from 2.5 million units at the end of 2011 to 5.7 million
by 2016. The penetration rate in the total population of non-privately
owned commercial vehicles is estimated to increase from 8.8 percent in
2011 to 20.1 percent in 2016.
A group of international aftermarket solution providers have emerged as
the leaders on the European fleet management market. Masternaut is
ranked as the largest player overall in terms of installed base with close
to 250,000 units deployed, mainly in France and the UK. TomTom Business Solutions was the fastest growing vendor also in 2011 and has now
surpassed 200,000 subscribers. Transics is number one in the
heavy trucks segment with an estimated 75,000 active units installed. Other significant players include European companies such
as Vehco, Navman Wireless, TRACKER and Trafficmaster and international players like Trimble and Qualcomm from the US and the
South African telematics providers DigiCore and MiX Telematics.
All major truck manufacturers on the European market offer OEM telematics solutions as a part of their product portfolio. Mercedes-Benz, Volvo
and Scania launched their first products in the 1990s and followed by
MAN in 2000, Renault Trucks in 2004, DAF Trucks in 2006 and Iveco in
2008. The products are all supporting the FMS standard and can generally be deployed in mixed fleets even if some functionality can be brandspecific. A major trend in the past year has been the announcements
of standard line fitment of fleet management solutions. Since the end of
2011, Scania is rolling out the Scania Communicator as standard on all
European markets and includes a four year basic service subscription.
The new generation of the Actros trucks from Mercedes-Benz contains
the FleetBoard vehicle computer as standard in all EU27 countries since
October 2011. Volvo is going in the same direction offering Dynafleet as
standard in some markets. MAN TeleMatics is since July 2012 standard
on the new truck model TGX EfficientLine including a 4-month trial for
the service.
Nine major merger and acquisition activities took place in Europe during
2010 and the first half of 2011. In the past twelve months there has been
a considerable slowdown of activities and no major events occurred.
Berg Insight anticipates that a second wave of consolidation is likely to
start in 2013. The latest transaction was done in June 2011 when Transics acquired the European activities of CarrierWeb. Francisco Partners
acquired Masternaut in April 2011 forming the leading player in Europe
from the Masternaut and Cybit operations. Another acquisition was done
by Vehco in Sweden that acquired Elomobile in France in March 2011.
Trimble acquired Punch Telematix in July 2010 and DigiCore acquired in
the same month Minorplanet in the UK along with the associated businesses in the Netherlands, Belgium and Germany.
This report answers the following questions:
Is the European fleet management market back on
a growth track after the economic crisis?
Will the FM industry consolidate further during 2012
and 2013?
Million units
6
What is the geographical and ownership structure of
commercial vehicle fleets in Europe?
5
Who are the leading international and regional
providers of aftermarket fleet management solutions
in Europe?
4
3
What offerings are available from truck, trailer and
construction equipment OEMs?
2
What impact will the launch of standard factory
installed FM systems from the OEMs have on
the market?
1
0
Year
2010
2011
2012
2013
2014
2015
2016
Installed base of active fleet management units (EU27+2 2010–2016)
How will the commercial vehicle telematics industry
evolve in the future?
Table of Contents
Executive summary
1 Commercial vehicle fleets in
Europe
1.1
1.2
1.3
1.4
1.5
1.6
1.6.1
1.6.2
1.6.3
2 Fleet management solutions
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.3
2.3.1
2.3.2
2.3.3
2.4
2.4.1
2.4.2
2.4.3
2.5
2.5.1
2.5.2
2.5.3
2.6
Light commercial vehicles
Medium and heavy trucks
Buses and coaches
Trailers and semi-trailers
Off-road construction and
agriculture equipment
Ownership structure
Statistical estimates by industry and
company size
Light commercial vehicle fleets
Medium and heavy commercial
vehicle fleets
Fleet management infrastructure
Vehicle segment
GNSS segment
Network segment
Backoffice segment
Vehicle management
Vehicle diagnostics and maintenance
planning
Security tracking
Driver management
Driving data registration and analysis
Eco-driving schemes
Insurance risk management
Operations management
Routing and navigation
Transport management
Mobile workforce management
Regulatory compliance and
reporting
Digital tachograph data download
Electronic toll collection
Other applications
Business models
3 Market forecasts and trends
3.1
3.1.1
3.1.2
3.1.3
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.4
Market analysis
Installed base and unit shipments
Regional markets
Vendor market shares
Market drivers and barriers
Macroeconomic environment
Regulatory environment
Competitive environment
Technology environment
Value chain analysis
Telematics industry players
Automotive industry players
Telecom industry players
IT industry players
Future industry trends
4 OEM products and strategies
4.1 Truck manufacturers
4.1.1 Daimler Group
4.1.2 Volvo Group
4.1.3Scania
4.1.4 MAN Truck & Bus
4.1.5 DAF Trucks
4.1.6Iveco
4.2 Construction equipment
manufacturers
4.2.1 Bobcat and JCB
4.2.2Caterpillar
4.2.3 Hyundai Construction Equipment
4.2.4 John Deere
4.2.5Komatsu
4.2.6 Volvo CE
4.3 Trailer manufacturers
4.3.1 Schmitz Cargobull
4.3.2Krone
4.3.3Kögel
4.4 OE suppliers
4.4.1Actia
4.4.2Continental
4.4.3Haldex
4.4.4 Stoneridge Electronics
4.4.5WABCO
4.5 Hardware and software providers
4.5.1Advantech-DLoG
4.5.2Aplicom
4.5.3Calamp
4.5.4 Mobile Devices
4.5.5 Phoenix International
4.5.6 Pointer Telocation
4.5.7 Quake Global
4.5.8Squarell
5 International aftermarket
solution providers
5.1DigiCore
5.2 Garmin and partners
5.3Masternaut
5.4 MiX Telematics
5.5 Navman Wireless
5.6 Qualcomm Enterprise Services
5.7 TomTom Business Solutions
5.8Trafficmaster
5.9Transics
5.10Trimble
5.11Vehco
6 Regional aftermarket
solution providers
6.1 Benelux and France
6.1.1Eliot
6.1.2Fleetlogic
6.1.3Geodynamics
6.1.4GreenCat
6.1.5 IT Mobile
6.1.6Micpoint
6.1.7 Novacom Europe
6.1.8OCEAN
6.1.9 Orange Business Services
6.1.10 RAM Mobile Data
6.1.11Traqueur
6.2 Germany and Central Europe
6.2.1AutoGuard
6.2.2 CVS Mobile
6.2.3 ETA Automatizari Industriale
6.2.4 Euro Telematik
6.2.5Falcom
6.2.6Finder
6.2.7Framelogic
6.2.8IAV
6.2.9Idem
6.2.10Mireo
6.2.11 Mobile Objects
6.2.12 Sherlog Trace
6.2.13Telargo
6.2.14Yellowfox
6.3 The Mediterranean
6.3.1 Cefin Systems
6.3.2 Cobra Automotive Technologies
6.3.3Coordina
6.3.4 Datatronics Mobility
6.3.5Detector
6.3.6 Frotcom International
6.3.7 G4S Telematix
6.3.8Inosat
6.3.9Loqus
6.3.10MobiVision
6.3.11Tecmic
6.4 Nordic countries
6.4.1 Consafe Logistics
6.4.2 Fleet 101
6.4.3Fleetech
6.4.4GateHouse
6.4.5Locus
6.4.6PocketMobile
6.5 UK and Ireland
6.5.1Aeromark
6.5.2 Blue Tree Systems
6.5.3Celtrak
6.5.4FleetMatics
6.5.5GreenRoad
6.5.6Isotrak
6.5.7Lysanda
6.5.8 Matrix Telematics
6.5.9Microlise
6.5.10Quartix
6.5.11 TRACKER Network
6.5.12Trakm8
6.5.13Transpoco
6.5.14 Webtech Wireless
Glossary
M2M Research Series
Fleet Management
in the Americas
Fleet Management in the Americas is the second consecutive
report from Berg Insight analysing the latest developments on the
fleet management market in the Americas.
190 pages of unique business intelligence, including 5-year industry
forecasts, expert commentary and real-life case studies on which to
Highlights from this report:
leading companies.
Data on vehicle populations and commercial fleets in
Americas.
Comprehensive overview of the fleet management value
Updated profiles of 60 aftermarket fleet management solution
providers.
Summary of OEM propositions from truck and construction
equipment brands.
Order now!
www.berginsight.com
M2M Research Series
Automotive OEM activities and new
regulatory developments favour the fleet
management market in the Americas
Fleet management (FM) is an ambiguous term used in reference to a wide
range of solutions for different vehicle-related applications. Berg Insight’s
definition of an FM solution is a vehicle-based system that incorporates
data logging, satellite positioning and data communication to a back
office application. The history of FM solutions goes back several decades.
On-board vehicle computers first emerged in the 1980s and were soon
connected to various satellite and terrestrial wireless networks. Today
mobile networks can provide ubiquitous online connectivity in many
regions at a reasonable cost and mobile computing technology delivers
very high performance, as well as excellent usability. All of these components combined enable the delivery of vehicle management, transport
management, driver management and mobile workforce management
applications linking vehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the economy both
in North and Latin America. In North America, there are approximately
12.7 million GVW 3–8 commercial vehicles in use. An estimated
25.5 million GVW 1–2 vehicles are also owned by enterprises or public
entities. In Latin America, the number of commercial vehicles in oper
ation is estimated to 21.9 million, out of which 5.9 million are heavy
trucks and 16.0 million are light commercial vehicles. Berg Insight is of
the opinion that the market for fleet management in the Americas is in
a growth period which was temporarily slowed down by the financial
downturn but will continue in the years to come. The advanced North
American market will remain on a growth track, not the least driven
by regulatory developments such as CSA and the forthcoming EOBR
mandate. Latin America is coming from a lower degree of maturity in
the utilisation of fleet management solutions and will also experience
an increase in adoption. In many cases, an educational process may
however be needed in order to increase the awareness among prospective users about the potential that FM solutions have beyond mere
security related features.
Berg Insight expects the market for fleet management to continue to
show healthy growth in 2012. In North America, the number of fleet
management systems in active use is forecasted to grow at a compound
annual growth rate (CAGR) of 15.9 percent from 2.8 million units in 2011
to 5.9 million units by 2016. The penetration rate in the total population
of non-privately owned commercial vehicles is estimated to increase
from 7.9 percent in 2011 to 16.4 percent in 2016. In Latin America, the
number of fleet management systems in use is projected to increase
from 1.3 million units in 2011, growing at a CAGR of 16.6 percent to
reach 2.8 million units in 2016. The penetration rate among non-privately
owned commercial vehicles in the region is estimated to increase from
5.9 percent in 2011 to 12.8 percent in 2016.
The market leaders on the fleet management market in the Americas
include a range of different actors. Qualcomm Enterprise Services is
ranked as the largest player, with an estimated total installed base of
approximately 450,000 units in North and Latin America. The company’s
solutions are targeted at heavy trucks, where the main competitors in
North America include Xata and PeopleNet. Trimble which previously
mainly focused on service fleets now has a total installed base of
360,000 units following the acquisition of PeopleNet. Other actors focusing on service fleets include FleetMatics, Networkfleet, NexTraq and
Wireless Matrix. Several actors also have a broader market scope, covering both light and heavy vehicles. Examples include Telogis, T
eletrac,
Zonar Systems and Webtech Wireless. Major Brazilian p
roviders
include Autotrac, Zatix and OnixSat, each having estimated installed
bases in the range of 50,000–85,000 units. Other notable actors in Latin
America include Copiloto Satelital and Grupo UDA in Mexico, Satrack
in C
olombia, and Tastets System and Wisetrack in Chile, each holding
important positions in their respective countries.
Most commercial vehicle manufacturers active in the Americas offer
OEM telematics solutions – either independently or in partnership with
established FM providers – with examples such as Volvo Link and Ford
Crew Chief on the US market. Hino Insight was announced in 2011,
as was Virtual Technician for Daimler’s Freightliner and Western Star
trucks. Paccar’s TruckerLink service was also introduced during the
year. Daimler’s FleetBoard and Volvo’s Dynafleet have moreover been
launched in Brazil, while Scania Fleet Management is rolled out in Latin
America. MAN Latin America offers the Volksnet solution and Iveco has
further developed the system Frota Fácil. FM solutions from OEMs have
not yet been particularly successful in the Americas, but are expected to
increase in importance in the coming years.
Will the FM industry consolidate further during 2012?
6
How has the economic crisis affected the market for
fleet management solutions in the Americas?
5
What is the geographical structure of commercial
vehicle fleets in the Americas?
Million units
Who are the leading international and regional
providers of aftermarket fleet management solutions in
the Americas?
4
3
What offerings are available from truck and
construction equipment OEMs?
2
How will the regulatory developments in the Americas
affect the fleet management industry?
1
0
Year
2011
2012
North America
2013
2014
2015
2016
Latin America
Installed base of active fleet management units (Americas 2011–2016)
What differences are there between the North and
Latin American markets?
How will the commercial vehicle telematics industry
Table of Contents
1 Commercial vehicle fleets in the Americas
1.1 The North American commercial
vehicle market
1.1.1 Registrations of commercial vehicles
GVW 3–8
1.1.2 Manufacturer market shares
1.1.3 Ownership structure
1.1.4Trailers
1.2 The Latin American commercial
vehicle market
1.2.1 Registrations of commercial vehicles
1.2.2 Manufacturer market shares
2 Fleet management solutions
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.3
2.3.1
2.3.2
2.3.3
2.4
2.4.1
2.4.2
2.4.3
2.5
2.5.1
2.5.2
2.5.3
2.5.4
2.5.5
2.5.6
2.6
Fleet management infrastructure
Vehicle segment
GNSS segment
Network segment
Backoffice segment
Vehicle management
Vehicle diagnostics and maintenance
planning
Security tracking
Driver management
Eco-driving schemes
Operations management
Routing and navigation
Transport management
Mobile workforce management
reporting
CSA – Compliance, Safety,
Accountability
Hours-of-Service and electronic onboard recorders
Fuel tax reporting
Distracted driving
Mandatory anti-theft systems in Brazil
Other applications
Business models
3.1 Market analysis
3.1.1 Installed base and unit shipments –
North and Latin America
3.1.2 Vendor market shares
3.2 Market drivers and barriers
3.2.1 Macroeconomic enviroment
3.2.2
3.2.3
3.2.4
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.4
IT industry players
4.1 Truck manufacturers
4.1.1 Daimler Group
4.1.2Ford
4.1.3 Hino Trucks
4.1.4Iveco
4.1.5 MAN Latin America
4.1.6Navistar
4.1.7Paccar
4.1.8Scania
4.1.9 Volvo Group
4.2 Construction equipment
manufacturers
4.2.1 Bobcat and JCB
4.2.2Caterpillar
4.2.3 Hyundai Construction Equipment
Americas
4.2.4 John Deere and Hitachi Construction
Machinery
4.2.5Komatsu
4.2.6 Volvo CE
5 International aftermarket
solution providers
5.1Digicore
5.2 Garmin and partners
5.3 MiX Telematics
5.4 Navman Wireless
5.5 Qualcomm Enterprise Services
5.6Telogis
5.7 TomTom Business Solutions
5.8Trafficmaster
5.9Trimble
5.10 Webtech Wireless
6 Regional aftermarket solution
providers
6.1 North America
6.1.1 Blue Tree Systems
6.1.2 BSM Wireless
6.1.3Cadec
6.1.4CarrierWeb
6.1.5Celtrak
6.1.6FieldLogix
6.1.7 Fleet Management Solutions
6.1.8Fleetilla
6.1.9FleetMatics
6.1.10Fleetronix
6.1.11Geotab
6.1.12 GPS North America
6.1.13GreenRoad
6.1.14 ID Systems – Asset Intelligence
6.1.15 International Telematics
6.1.16Inthinc
6.1.17 JJ Keller
6.1.18 Matrix Telematics
6.1.19Microlise
6.1.20Navtrak
6.1.21Networkfleet
6.1.22NexTraq
6.1.23PeopleNet
6.1.24 Rand McNally and DriverTech
6.1.25Safefreight
6.1.26SkyBitz
6.1.27Synovia
6.1.28Telenav
6.1.29TransCore
6.1.30 Wireless Matrix
6.1.31Xata
6.1.32 Zonar Systems
6.2 Latin America
6.2.1Autotrac
6.2.2Coordina
6.2.3 Copiloto Satelital
6.2.4 Global Track
6.2.5 GPS Chile
6.2.6 Grupo UDA
6.2.7 High Performance Solutions
6.2.8OnixSat
6.2.10Sascar
6.2.11Satrack
6.2.12SECAR
6.2.13 Tastets System
6.2.14Tecnolider
6.2.15Ubicamóvil
6.2.16Ultra
6.2.17Wisetrack
6.2.18Zatix
Glossary
M2M Research Series
Retail Applications
and Wireless M2M
Retail Applications and Wireless M2M is the second consecutive
report from Berg Insight that gives first-hand insights into the
adoption of wireless connectivity in the vending, parking, ticketing,
ATM and POS terminal markets.
150 pages of unique business intelligence including 5-year industry
forecasts and expert commentary on which to base your business
decisions.
Highlights from the second edition of the report:
Insights from 40 new executive interviews with market leading
companies.
Overview of the payment, vending, parking, transport ticketing
and ATM industries.
Summary of industry trends and developments in each vertical
market segment.
Updated in-depth profiles of 77 key players in the retail industry.
Reviews of vendor market shares and competitive dynamics.
Perspectives on the impact of emerging mobile payment
services.
Extensive global and regional market forecasts lasting until 2017.
Order now!
www.berginsight.com
M2M Research Series
Cellular M2M connections in the retail
industry surpassed 10 million in 2011
The retail industry is an important vertical for cellular M2M connectivity
with 10.3 million cellular connections today and a potential market size
of nearly 80 million POS terminals, ATMs, vending machines, parking
meters and fare collection devices worldwide. Berg Insight forecasts
that the number of cellular M2M connections in the retail industry will
grow at a compound annual growth rate (CAGR) of 21.6 percent to
reach 33.2 million connections worldwide in 2017. Shipments of cellular M2M devices will at the same time increase at a CAGR of 10.7
percent from 5.2 million units in 2011 to 9.6 million units in 2017. Cellular
M2M technology enables devices such as POS terminals and ATMs to
be used at new locations where fixed line connectivity is unavailable
or impractical. The technology has a more transformational effect on
markets such as vending and parking, where machine operators need
to reorganize their operations in order to benefit from the availability of
real-time information.
Wireless connectivity has become a very popular option for POS terminals and was incorporated in nearly one third of the devices shipped
in 2011. Berg Insight forecasts that the installed base of cellular POS
terminals will grow at a CAGR of 21.4 percent between 2011 and 2017
to reach 29.4 million units worldwide in 2017. In 2011, approximately
one third of the installed cellular POS terminals globally were in use in
Europe or North America. Berg Insight anticipates that this share will
decline to less than one fifth by 2017, as emerging markets continue to
account for the vast majority of market growth and retain higher attach
rates for cellular connectivity.
Berg Insight estimates that 24 percent of the ATMs in North America
and 5–10 percent of the ATMs in Europe were connected to cellular networks in 2011. Wireless M2M is especially relevant for ATMs installed at
off-site locations as it offers greater flexibility, shorter deployment times
and competitive connectivity fees compared to fixed line alternatives.
Berg Insight forecasts that the number of wirelessly connected ATMs in
the US and Canada will grow at a CAGR of 12.4 percent to reach 0.22
million units by 2017. The number of wirelessly connected ATMs in Europe are similarly projected to grow at a CAGR of 14.9 percent to reach
0.10 million units in 2017.
The installed base of vending telemetry devices in North America
reached an estimated 0.25 million units at the end of 2011, whereas
the corresponding figure for Europe was 75,000 units. The vending telemetry market is however still in its infancy in both Europe and
North America, as penetration rates are at 2.0 percent and 3.6 percent
respectively. Berg Insight expects the adoption rates to accelerate in
both North America and Europe during the next few years, resulting in
compound annual growth rates in the range of 25–30 percent for both
regions. Consequently, the installed base of vending telemetry devices
in North America is projected to reach 1.0 million units by 2017, whereas
the installed base in Europe is forecasted to reach 0.32 million units in
the same year.
The parking industry has been one of the earliest adopters of M2M
communication technology and today approximately 39 percent of the
world’s 0.42 million multi-space meters are connected, primarily to cellular networks. Connectivity has in contrast to this only recently become
an optional feature in single-space meters, and today only 3 percent of
the world’s 3.2 million single-space meters are connected. Berg Insight
anticipates that connectivity will eventually be incorporated in all parking
meters. Berg Insight forecasts that 69 percent of the world’s 0.54 million
multi-space meters will have be connected in 2017, whereas 18 percent
of the world’s 2.75 million single-space meters will be connected in the
same year.
Cellular connectivity is incorporated in an estimated 0.1 million fare
collection devices worldwide today, such as on-board ticket vending
machines, stationary vending machines and handheld ticket sales terminals. Berg Insight anticipates that the market potential for cellular connectivity in public transport will expand as account-based fare collection
systems gain ground and increase the need for real-time communication. However, the number of fare collection devices that incorporate cellular connectivity is likely to remain relatively modest, as many fare collection devices can share a communication line with other equipment.
What is the potential market size for wireless M2M
communication in the retail industry?
Which are the key applications that offer sizable
business opportunities?
Which trends and developments are shaping each
vertical market segment?
Million connections
35
Which are the leading providers of vending
telemetry solutions?
30
When will demand for vending telemetry solutions
accelerate in Europe and North America?
25
20
How is the market for wireless ATM connectivity
solutions developing?
15
Which are the leading providers of connected
parking meters?
10
What is the attach rate for cellular connectivity in POS
terminals by region?
5
0
Year
2011
2012
2013
2014
2015
2016
2017
Cellular M2M network connections in the retail industry (World 2011–2017)
How is the market for public transport fare collection
systems evolving?
Table of Contents
1 POS terminals and ATMs
Payment infrastructure
POS terminals
Automated teller machines
Evolution of electronic payments
EMV migration
Adoption of mobile data
communication solutions
1.2.3 Rollout of NFC-ready terminals
1.3 POS terminal vendors
1.3.1 Atos Worldline
1.3.2CCV
1.3.3CyberNet
1.3.4 Equinox Payments
1.3.5Ingenico
1.3.6 Key Innovations
1.3.7Margento
1.3.8 PAX Technology
1.3.9 REA Card
1.3.10 Spire Payments
1.3.11 Thyron Systems
1.3.12VeriFone
1.3.13ViVOtech
1.4 ATM manufacturers and connectivity
solution providers
1.4.1 Contour Networks
1.4.2Diebold
1.4.3 Digi International
1.4.4 DPL Group
1.4.5NCR
1.4.6OptConnect
1.4.7Triton
1.4.8 Wincor Nixdorf
1.1
1.1.1
1.1.2
1.2
1.2.1
1.2.2
2 Vending machines
2.4.6 cStar Technologies
2.4.7Mecsel
2.4.8MEI
2.4.9Microtronic
2.4.10Nayax
2.4.11Smarcom
2.4.12 USA Technologies
2.4.13Vendon
2.4.14VendScreen
2.4.15Vianet
2.5 Vending machine manufacturers
2.5.1 Automated Merchandising Systems
2.5.2 Azkoyen Group
2.5.3 Bianchi Vending Group
2.5.4Crane
2.5.5 Deutsche Wurlitzer
2.5.6 FAS International
2.5.7Fastcorp
2.5.8Jofemar
2.5.9 N&W Global Vending
2.5.10 Rheavendors Group
2.5.11 Royal Vendors
2.5.12SandenVendo
2.5.13Seaga
2.5.14Sielaff
2.5.15Westomatic
2.5.16 Wittern Group
2.6 Vending operators
2.6.1Aramark
2.6.2 Autobar Group
2.6.3 Canteen Vending Services
2.6.4Selecta
2.6.5Sodexo
3 Parking meters
3.1 The parking industry
2.1 Vending industry players
3.1.1 Parking industry players
2.1.1 Vending technology providers
3.1.2 Single-space and multi-space meters
2.1.2 Vending machine manufacturers
in Europe and North America
2.1.3 Product suppliers
3.1.3 Pay-by-phone parking
2.1.4 Vending operators
3.2 Connected parking meters
2.2 Payment systems
3.2.1 Mobile data communication solutions
2.2.1 Coin mechanisms and bill validators
for parking meters
2.2.2 Cashless payments
3.2.2 Connected multi-space parking meters
2.2.3 Mobile phone payments and NFC
3.2.3 Connected single-space parking
2.3 Vending telemetry
meters
2.3.1 Remote monitoring of vending
3.3 Parking solution vendor
machines
profiles
2.3.2 Vending telemetry in Europe
3.3.1 Cale Access
2.3.3 Vending telemetry in North America
3.3.2 Digital Payment Technologies
2.4 Vending telemetry solution providers
3.3.3 Duncan Solutions
2.4.1Allomachines
3.3.4Hectronic
2.4.2Apriva
3.3.5 IPS Group
2.4.3BiTX
3.3.6 MacKay Meters
2.4.4 Cantaloupe Systems
3.3.7Metric
2.4.5Coinco
3.3.8 Parkare Group
3.3.9Parkeon
3.3.10POM
3.3.11Siemens
3.4 Private parking operators
4 Public transport ticketing
4.1 Modal split of passenger transport
4.2 Bus and rail fleets
4.3 Fare collection systems
4.3.1 Fare payment
4.3.2 Fare collection devices
4.3.3 Installed base
4.3.4 Mobile data communication solutions
4.4 Fare collection system vendors
4.4.1 Cubic Transportation Systems
4.4.2 Scheidt & Bachmann
4.4.3Thales
4.4.4Vix
4.4.5 Xerox Transportation Solutions
4.4.6Almex
4.4.7FARA
4.4.8Indra
4.4.9INIT
4.4.10IVU
5 Forecasts and conclusions
5.1 Wireless M2M in the retail industry
5.1.1 Cellular M2M device shipments
5.1.2 Cellular M2M network connections
5.2 POS terminals
5.2.1 Market developments and trends
5.2.2 Cellular POS terminal market forecast
5.2.3 NFC POS terminal market forecast
5.3ATMs
5.3.2 ATM connectivity market forecast
5.4 Vending machines
5.4.2 North American vending telemetry
market forecast
5.4.3 European vending telemetry market
forecast
5.5 Parking meters
5.5.2 Connected multi-space parking meter
market forecast
5.5.3 Connected single-space parking meter
market forecast
5.6 Public transport ticketing
5.6.2 Market forecast
Glossary
M2M Research Series
The Global Wireless
M2M Market
The Global Wireless M2M Market is the fourth
consecutive report analysing the latest market
developments in all regions of the world.
This strategic research report from Berg Insight
provides you with 220 pages of unique business
intelligence including 5-year industry forecasts
and expert commentary on which to base your
business decisions.
Highlights from the fourth edition of the
report:
360-degree overview of the M2M ecosystem.
Updated profiles of the main suppliers of wireless
M2M modules and software platforms.
Reviews of the M2M strategies of leading mobile
operators.
Summary of industry trends in key vertical market
segments.
Statistical data on M2M adoption in major regions
and industries.
Extensive global and regional market forecasts
lasting until 2016.
Order now!
www.berginsight.com
M2M Research Series
What’s next for the wireless M2M
market after reaching 100 million
subscribers?
The global wireless M2M market was strong in 2011, displaying growth
in all major world regions and vertical segments. Berg Insight estimates
that shipments of cellular M2M devices increased by 35.3 percent to a
new record level of 50.8 million units. Adjusted for churn, this resulted in
net additions of 29.3 million M2M connections in 2011, taking the worldwide number of cellular M2M subscribers to an estimated 108.0 million.
Until 2016, Berg Insight forecasts that shipments of cellular M2M devices are forecasted to grow at a compound annual growth rate (CAGR)
of 24.6 percent to reach 152.2 million units. Due to the wide adoption of
wireless M2M technology across many industries, a substantial share of
M2M device shipments is now generated from replacement sales. As
a result the net increase of M2M subscribers will be substantially lower
than M2M device shipments. Berg Insight forecasts that the number of
cellular M2M connections will grow at a compound annual growth rate
(CAGR) of 27.2 percent between 2011 and 2016 to reach 359.3 million
at the end of the period.
The most significant market development in 2011 was a major breakthrough for cellular M2M communication in Asia-Pacific. The number
of M2M subscribers in the region increased by 64 percent to reach approximately 34.5 million at the year-end, fuelled by massive growth in
China that almost doubled its cellular M2M subscriber base to approximately 21 million. North America and Europe recorded annual growth
rates of around 26 percent each. At the end of 2011, the number of M2M
subscribers in the EU and the US was around 30 million and 27 million respectively. Other world regions accounted for around 20 percent
of the global cellular M2M subscriber base in 2011. Latin America had
an estimated 6.6 million M2M subscribers, with Brazil being the most
advanced country. South Asia and Southeast Asia were in a very early
phase of adoption with few M2M subscribers in major countries such as
India and Indonesia. The Middle East & Africa market was dominated
by South Africa and Turkey, which had in excess of 1 million M2M subscribers each.
A sweeping change has transformed the wireless modules industry in
the past years. The familiar brand names Siemens, Wavecom, Motorola
and Enfora have disappeared and new players such as Sierra Wireless
and Gemalto are now in charge of developments. Chinese vendors
Million connections
Mobile operators all over the world have announced initiatives for driving
growth in the wireless M2M market over the past years. The first results
are now visible through rapidly increasing numbers of M2M subscribers
and higher revenues. Berg Insight estimates that the world’s ten largest
telecom operators by revenues had 68.2 million M2M subscribers at the
end of 2011, an increase of around 38 percent year-on-year. Around 3.4
percent of their aggregated base of 2.0 billion mobile subscribers was
M2M devices. China Mobile is believed to have emerged as the world’s
largest provider of M2M connectivity during 2011, with an estimated 14
million subscribers at the year-end. AT&T established a clear leadership in the US with 13.1 million M2M subscribers, up 40 percent yearon-year. Meanwhile Verizon Wireless’ M2M subscriber base increased
modestly to around 8.6 million. Vodafone held the number three spot
with approximately 9 million M2M connections, ahead of T-Mobile and
Telefónica, which ended the year with around 6–8 million M2M connections each. China Telecom entered the top ten with around 4.5 million
M2M subscribers, racing ahead of Telenor, Sprint and Orange at 2.5–3.5
million connections each.
How will the global wireless M2M market evolve over
the next five years?
What are the main drivers behind growth in Europe
and North America?
What is the status of M2M in emerging markets?
400
Which vertical market segments will be most
important for driving future growth?
350
300
What are the leading global mobile operators’
strategies for the M2M market?
250
200
How are SIM technology vendors positioning
themselves in M2M?
150
How will the emergence of wirelessly enabled
consumer electronics change the market?
100
50
0
have taken over the domestic market and some of them are starting on international expansion. Despite a consolidation among Western
vendors, average selling prices for wireless modules continue to decline
and as a result industry revenues have been declining in the past years.
Well executed transformational strategies will be the key to success for
wireless module vendors in the years to come. Extended value propositions, product innovation and more mergers and acquisitions are some
of the things to expect. Meanwhile software and system solutions has
emerged as the fastest growing segment in the M2M industry. Increasingly advanced large-scale M2M applications require advanced service
enablement platforms that integrate remote devices, mobile networks
and enterprise applications. A wide range of players are attracted by the
market opportunities in the space, most of them having backgrounds
in embedded solutions, telecom OSS/BSS systems or enterprise application platforms.
Year
2010
2011
2012
2013
2014
2015
2016
Cellular M2M network connections (World 2010 -2016)
Which are the leading providers of M2M service
delivery and application platforms?
Table of Contents
1 Introduction to wireless M2M
1.1Introduction
1.2Devices
1.2.1 Chipsets, modules and terminals
1.2.2 Device design and machine integration
1.2.3 Value chain
1.3Networks
1.3.1 GSM/HSPA networks
1.3.2 CDMA networks
1.3.3 LTE networks
1.3.4 Other wireless networks
1.3.5 Wireless M2M connectivity solutions
1.4Applications
1.4.1 Car telematics
1.4.2 Fleet management
1.4.3 Smart grids and intelligent metering
1.4.4 Fixed wireless communication
1.4.5 Remote control and monitoring
1.4.6 Consumer electronics
1.5 Solution providers and integrators
1.5.1 Device manufacturers
1.5.2 System integrators
1.5.3 Vertical ASPs
1.5.4 B2B/B2C service providers
1.5.5OEMs
2 M2M technology providers
2.1 Wireless M2M module vendors
2.1.1 Sierra Wireless
2.1.2Cinterion
2.1.3Telit
2.1.4 Novatel Wireless
2.1.5u-blox
2.1.6Sagemcom
2.1.7AnyDATA
2.1.8Option
2.1.9SIMCom
2.1.10Huawei
2.1.11ZTE
2.1.12 Second tier Asian embedded module
vendors
2.2 Mobile security and SIM solution
vendors
2.2.1Gemalto
2.2.2 Giesecke & Devrient
2.2.3 Oberthur Technologies
2.2.4 Safran Morpho
2.3 M2M platform and software
providers
2.3.1Amdocs
2.3.2Axeda
2.3.3Comarch
2.3.4Ericsson
2.3.5 ILS Technology
2.3.6 Jasper Wireless
2.3.7Logica
2.3.8Macheen
2.3.9 Red Bend
2.3.10Wipro
2.4 Industry analysis
2.4.1 A changing landscape for wireless
module vendors
2.4.2 Big opportunities in M2M software and
OSS/BSS systems
3 M2M communication
providers
3.1 Europe and International
3.1.1Vodafone
3.1.2 Deutsche Telekom
3.1.3Telefónica
3.1.4Orange
3.1.5Telenor
3.1.6 Everything Everywhere
3.1.7KPN
3.1.8SFR
3.1.9Swisscom
3.1.10 Telecom Italia
3.1.11 Telekom Austria
3.1.12TeliaSonera
3.1.13Turkcell
3.1.14 M2M communication aggregators
3.1.15 CDMA450 and alternative wireless
network operators
3.2 The Americas
3.2.1AT&T
3.2.2 Verizon Communications
3.2.3Sprint
3.2.4 T-Mobile USA
3.2.5 América Móvil
3.2.6 M2M communication aggregators
3.2.7 Satellite network operators
3.3Asia-Pacific
3.3.1 China Mobile
3.3.2 China Telecom
3.3.3 China Unicom
3.3.4 NTT DoCoMo
3.3.5KDDI
3.3.6Softbank
3.3.7SingTel
3.4 Industry analysis
3.4.1 Global M2M trend in the mobile
operator community
3.4.2 Creating value-added M2M
propositions
3.4.3 Providing international coverage
3.4.4 Enabling consumer M2M applications
3.4.5 Migrating to 3G/4G networks
3.4.6 Strategic options for mobile operators
in M2M
4 Key vertical markets
4.1
4.1.1
4.1.2
4.1.3
4.2
4.2.1
4.2.2
OEM automotive
Automotive industry trends
OEM telematics offerings
Regional market trends
Aftermarket automotive
Key industry players
Enterprise solutions – fleet
management
4.2.3 Consumer solutions – SVT and
financial services
4.2.4 Government solutions – vehicle tax
collection
4.3 Smart grids and intelligent metering
4.3.1 Energy meters
4.3.2 Smart metering initiatives
4.3.3 C&I and grid meters
4.3.4 Mobile communication technologies
and smart grid and metering networks
4.4 Fixed wireless communication
4.4.1POS-terminals
4.4.2 Security alarms
4.5 Consumer electronics
4.5.1Media
4.5.2Automotive
4.5.3Healthcare
5 Market analysis and forecasts
5.1 Global market
5.1.1Devices
5.1.2 Network connectivity
5.1.3 Vertical markets
5.1.4 Technology standards
5.2Europe
5.3 North America
5.4 Latin America
5.5Asia-Pacific
5.6 Middle East & Africa
Glossary
M2M Research Series
Consumer Electronics
and Wireless M2M
Consumer Electronics and Wireless M2M is the
second consecutive report from Berg Insight analysing
the latest trends on the worldwide market for embedded
cellular connectivity in consumer devices.
This strategic research report from Berg Insight provides
you with 130 pages of unique business intelligence
including 5-year industry forecasts and expert
commentary on which to base your business decisions.
This report will allow you to:
Understand the key enablers for growth in the
connected consumer device market.
Identify key players in the connected consumer device
ecosystem.
Benefit from detailed forecasts for eight different device
categories until 2016.
Learn about the dynamics of the consumer electronics
market in Europe, North America and ROW.
Evaluate the business opportunities in the emerging
connected consumer device segment.
Predict future market and technology developments.
Order now!
www.berginsight.com
M2M Research Series
Consumer M2M market ready for
takeoff – 65 million connections in 2016
The consumer electronics market has experienced an incredible growth
during the digitalisation era in the last decade. Today, dedicated devices such as PNDs, digital cameras, handheld gaming consoles and
PMPs are facing fierce competition from converged multipurpose devices such as smartphones and tablets. Mobility, connectivity and personalisation are three of the most important current trends within consumer electronics. Instant access to information, using social networks
and consuming and sharing media are becoming important parts of
people’s digital lifestyles. Due to maturing markets and stunted ARPU
growth, mobile operators all over the world are showing increasing interest in the consumer electronics market. The growing desire for people
to stay connected makes wireless consumer devices an opportunity for
the telecom industry to expand their market beyond mobile handsets.
Consumer electronics has emerged as a new major application category for cellular M2M in the past years. Consumer M2M devices are
neither classified as handsets, PCs, tablets nor traditional M2M devices. The product category includes e-readers, portable media players,
gaming consoles, digital cameras, digital photo frames, PNDs, traffic
information devices, personal tracking devices, wellness & fitness devices and user programmable sensor devices. The reasons for cellular
connectivity vary and are often a way to meet the needs for connected
features introduced in multipurpose devices. Media and entertainment
devices can offer instant distribution of digital content. Imaging devices
enable instant media sharing on social networks and seamless usage of
cloud storage services. Personal navigation devices and speed camera
warning devices can provide users with real time traffic information and
other dynamic online content. Personal tracking devices and wellness
products enable remote monitoring of sensor statuses such as location,
blood pressure and glucose levels. Fitness applications allow for mobility that often is a necessity in these types of products.
The market for consumer M2M devices is still in its early stage. Until
now, the most connected device categories are e-readers, PNDs, digital
photo frames and handheld gaming consoles such as the recently introduced Sony PlayStation Vita. Berg Insight estimates that total shipments
of consumer M2M devices reached 7.1 million devices in 2011. Growing
at a compound annual growth rate of 39.8 percent, the shipments are
expected to reach 37.9 million devices in 2016. Berg Insight estimates
that the number of connected M2M consumer devices reached
Million units
North America is currently the most important market for consumer M2M
devices and accounted for about 5 million of the total device shipments
in 2011. The second largest market is Europe with 1.7 million device
shipments followed by the rest of world with 0.5 million device shipments. Berg Insight anticipates that North America will remain the largest region with a market share of 40 percent in 2016. Europe and the
rest of world will account for 30 percent each of the connected device
shipments in the same year.
Continuously decreasing prices of cellular modules and chipsets are key
developments for growth in the connectivity market. The deployments of
high-speed cellular networks such as HSPA+ and LTE on most markets
are another important driver enabling bandwidth-hungry applications.
The exploding sales of connected mobile broadband products such
as tablets further illustrates the benefits of cellular connectivity and will
increase the demand for other consumer M2M devices as well. The telecom industry is depending on multiple connections per user for growth
but to make it attractive for consumers to have multiple devices with cellular connections, a great deal of business model innovation is required.
In order for the consumer M2M market to take off, price on mobile data
has to decrease and subscription fees for every single connection need
to be lowered. Instead, more consumers would be willing to have multiple connections, which will allow for an increased total ARPU. Device
vendors and network operators are also advised to focus on bundling
compelling services and products that include the price of mobile data
instead of marketing actual mobile data subscriptions.
Which consumer devices offer the best potential for
embedded cellular connectivity?
What are the main drivers behind growth in Europe, North
America and ROW?
When will cellular connectivity be a common option in
consumer devices?
40
35
What are the experiences from adding cellular connectivity
to consumer devices so far?
30
How will the global consumer device market evolve over
the next five years?
25
20
In what ways will LTE impact the consumer M2M device
market?
15
How can the mobile industry contribute to the adoption of
wireless technology in consumer electronics?
10
5
0
12.7 million at the end of 2011. Growing at a compound annual growth
rate of 38.6 percent, the number of network connections from consumer
M2M devices are expected to reach 65.0 million in 2016. E-readers,
PNDs, digital cameras and handheld gaming consoles will then be the
most common consumer M2M devices accounting for 45 percent, 32
percent, 8 percent and 6 percent respectively of the total number of connections.
Year
2010
2011
2012
2013
2014
2015
2016
Annual shipments of consumer M2M devices with embedded
cellular connectivity, million units (World 2010–2016)
Which are the leading manufacturers of consumer
electronics products?
Table of Contents
1 Introduction to consumer
electronics and wireless M2M
1.1
1.1.1
1.1.2
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.3
1.3.1
1.3.2
The consumer electronics market
Consumer electronics market trends
Regional markets
Introduction to wireless M2M
Value chain
Device connectivity
Wireless networks
Wireless M2M applications
The wireless M2M communication
provider market
The wireless module and chipset
market
Wireless M2M and consumer
electronics
Mobile data device categories
Consumer M2M devices
2 Media and entertainment
2.1E-readers
2.1.1 The e-book market
2.1.2 The e-reader market
2.1.3 E-readers and cellular connectivity
2.1.4 Business models for connected
e-readers
2.2 Portable media players
2.2.1 The portable media player market
2.2.2 PMPs and cellular connectivity
2.3 Gaming Consoles
2.3.1 The gaming console market
2.3.2 Mobile gaming
2.3.3 Gaming consoles and cellular
connectivity
3Imaging
3.1
3.1.1
3.1.2
3.1.3
Digital cameras
The digital still camera market
The digital video camera market
Digital cameras and cellular
connectivity
3.2 Digital photo frames
3.2.1 The digital photo frame market
3.2.2 Digital photo frames and cellular
connectivity
4 Navigation, tracking and
monitoring
4.1 Personal navigation and traffic
information devices
4.1.1 The personal navigation device market
4.1.2 Connected personal navigation
devices
4.1.3 Speed camera warning devices
4.2 Personal tracking and monitoring
devices
4.2.1 Consumer oriented personal tracking
devices
4.2.2 Wellness and fitness devices
4.2.3 Sensor devices
5.1 Global market outlook
5.2 Market trends and drivers
5.2.1Devices
5.2.2 Cellular networks, modules and
chipsets
5.2.3 Providing international coverage
5.2.4 Business model innovation
5.3 Market forecasts – Media and
entertainment
5.3.1E-readers
5.3.2 Portable media players
5.3.3 Gaming consoles
5.4 Market forecasts – Imaging
5.4.1 Digital cameras
5.4.2 Digital photo frames
5.5 Market forecasts – Navigation,
tracking and monitoring
5.5.1 Personal navigation and traffic
information devices
5.5.2 Personal tracking and monitoring
devices
5.6 Regional market developments
6 Consumer device vendors
6.1 Key consumer electronics vendors
6.1.1 Samsung Electronics
6.1.2Sony
6.1.3Apple
6.1.4 LG Electronics
6.2 Media and entertainment device
vendors
6.2.1Amazon
6.2.2 Barnes & Noble
6.2.3 Hanvon Technology
6.2.4Nintendo
6.2.5Microsoft
6.2.6Archos
6.3 Imaging device vendors
6.3.1Canon
6.3.2Nikon
6.3.3Olympus
6.3.4Panasonic
6.3.5Fujifilm
6.3.6Pandigital
6.3.7 Isabella Products
6.4 Personal navigation and traffic
information device vendors
6.4.1Garmin
6.4.2Navigon
6.4.3TomTom
6.4.4MiTAC
6.4.5 Coyote Systems
7 Telecom industry players
7.1 Mobile network operators
7.1.1 China Mobile
7.1.2AT&T
7.1.3Vodafone
7.1.4 Verizon Communications
7.1.6Telefónica
7.1.7 NTT DoCoMo
7.1.8KDDI
7.1.9Softbank
7.1.10Telenor
7.1.11KPN
7.2 Wireless M2M module vendors
7.2.1 Sierra Wireless
7.2.2 Novatel Wireless
7.2.3AnyDATA
7.2.4Huawei
7.2.5Cinterion
7.2.6Telit
7.2.7SIMCom
7.3 Chipset and M2M platform vendors
7.3.1Qualcomm
7.3.2Intel
7.3.3MediaTek
7.3.4ST-Ericsson
7.3.5Ericsson
7.3.6 Jasper Wireless
Glossary
M2M Research Series
Container Tracking
and Security
Container Tracking and Security is a comprehensive report
from Berg Insight analysing the latest developments on the
container tracking and security market worldwide.
This strategic research report from Berg Insight provides you
with 100 pages of unique business intelligence including
5-year industry forecasts and expert commentary to base
your business decisions.
leading companies.
Comprehensive overview of the container tracking value
Summary of major container tracking initiatives from the
EU and the US.
Updated profiles of 42 container tracking solution providers.
Market forecasts lasting until 2016.
Order now!
Berg Insight’s M2M Research Series is a unique series of market reports published
on a quarterly basis. Each title offers detailed analysis of a specific vertical application
area such as smart metering, fleet management or vehicle telematics. Once per year
we also publish summaries of our research with detailed forecasts for the Global
and European wireless M2M markets, respectively.
www.berginsight.com
M2M Research Series
Adoption of container tracking will
accelerate in the coming years
Shipping container tracking is a subset of asset tracking and aims at
securing assets and increase operational efficiency. Berg Insight’s
definition of a real-time container tracking solution is a system that
incorporates data logging, satellite positioning and data communication to a back-office application. Tracking and monitoring of shipping containers came in focus after 9/11. Many companies saw an
opportunity and started ambitious container tracking projects. However, neither the technology nor the market was ready at the time.
Today, mobile and satellite networks can provide ubiquitous online
connectivity at a reasonable cost and mobile computing and sensor
technology delivers high performance, as well as excellent usability.
All of these components combined enable the delivery of supply
chain management, security management and operations management applications linking containers and enterprise IT systems.
Intermodal shipping containers are standardised, reusable containers used in intermodal transport systems worldwide. Container trade
is the fastest growing segment in seaborne trade, having grown
nearly 10 percent annually since the 1980s. Maritime transportation and the increased containerisation of goods are key enablers
to make the global supply chain work efficiently. Today, more than
80 percent of international trade goods are carried by sea. At the
end of 2011, there were approximately 20 million cargo containers
worldwide, the equivalent of 30 million TEUs.
Berg Insight is of the opinion that the market for shipping container
tracking solutions has entered a growth period that will last for several years to come. The number of tracking systems with GPRS or
satellite communication for intermodal containers in active use is
forecasted to grow at a compound annual growth rate of 66.9 percent from 77,000 units at the end of 2011 to 1.0 million by 2016. The
penetration rate of remote tracking systems in the total population
of intermodal containers is estimated to increase from 0.4 percent in
2011 to 3.6 percent in 2016. Aftermarket solutions mounted on high
value cargo and refrigerated containers will be the first use cases to
adopt container tracking.
The US satellite communication provider Orbcomm has after the
recent acquisitions of StarTrak and PAR LMS emerged as the largest vendor of intermodal container tracking solutions with GPRS or
satellite communication. The company had achieved an installed
base of 15,000 units at the end of 2011. PearTrack Systems and
Qualcomm Enterprise Services are the second and third largest
providers having 10,000 and 7,000 systems installed on intermodal containers respectively. Honeywell Global Tracking is the fourth
largest system provider after the acquisition of EMS Global Tracking. Other significant players include ID Systems, Telular and Cubic GTS from the US, Pointer Telocation from Israel and EPSa and
Global Tracking Technology from Europe. Most players have generally a broader market scope than maritime shipping containers,
covering all types of asset tracking. CSB Technology, Kirsen Global Security and Starcom Systems are examples of vendors with
products specifically developed for intermodal shipping containers.
There has been a consolidation trend in the container tracking market in the past two years with several major M&A activities. Francisco Partners acquired Cybit in January 2010 in a deal worth about
€ 28 million. This deal was later followed by the acquisition of Masternaut in April 2011. ID Systems further acquired GE’s Asset Intelligence division, a leading international provider of trailer tracking
solutions. In May 2010, Cubic acquired Impeva Labs and formed
Cubic Global Tracking Solutions. Orbcomm acquired StarTrak in
May 2011, followed by the acquisition of PAR LMS in December
2011 in a deal worth about US$ 10 million. EMS Global Tracking
was acquired by Honeywell in August 2011, which formed the new
business unit Honeywell Global Tracking. The latest transaction was
done in December 2011 when Telular acquired asset tracking specialist SkyBitz for US$ 42 million.
Berg insight anticipates that there will be a continued strong focus
on container transport security and increased supply chain visibility
in the coming years which will favour the container tracking market.
Tracking solutions can help transportation chain stakeholders to
comply with regulations and security programs as well as increase
the transportation efficiency. Proving the commercial value, finding
efficient solutions for reverse logistics and bringing down hardware
prices are key components to increase the adoption rate for container tracking solutions.
Which are the leading providers of container tracking
solutions?
What offerings are available from device vendors and
service providers?
Units
1 000 000
800 000
What impact will international regulations and security
initiatives have on the market?
600 000
What are the key drivers behind the adoption of
container tracking devices?
How is the global economy affecting the market for
container tracking?
400 000
What impact will technology advancements have on the
market?
200 000
0
Year
2010
2011
2012
2013
2014
2015
2016
Installed base of active container tracking units (World 2010–2016)
How will the container telematics industry evolve in the
future?
Table of Contents
1 The container
shipping industry
1.1
1.1.1
1.1.2
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.3
1.3.1
1.3.2
1.4
1.4.1
1.4.2
1.4.3
1.4.4
International container trade
Containerisation
Ports, terminals and trade lanes
Intermodal shipping containers
Container fleet
Trailers, semi-trailers and swap bodies
Container manufacturers
Container ships
Container ownership structure
Container shipping companies
Container leasing companies
Other container transport actors
Consigner/Consignee
Freight forwarders
Customs and regulatory authorities
Terminal operators
2 Container tracking solutions
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.3
2.3.1
2.3.2
2.4
2.4.1
2.4.2
2.5
2.5.1
2.5.2
2.6
2.6.1
2.6.2
2.6.3
2.6.4
2.6.5
2.7
Container tracking infrastructure
Container segment
GNSS segment
Network segment
Backoffice segment
Supply chain management
Cargo and inventory management
Security management
Theft, accident and damage security
Terrorism, illegal and dangerous
goods security
Container operations management
Container management
Container transport management
reporting
Supply chain security programs
Tax collection
International container tracking
technology initiatives
Integrity project
Smart CM project
Cassandra project
US Department of Homeland Security
Cargo Security Programs
DASH7 Container Security and
Sensing Initiative
Business models
3.1
3.1.1
3.1.2
3.1.3
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.3
3.3.1
3.3.2
Market analysis
Installed base and unit shipments
Regional markets
Vendor market shares
Macroeconomic factors
Container transportation industry
players
3.3.3 Telecom industry players
3.3.4 IT industry players
3.4 Future industry trends
4 Maritime container
tracking vendors
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
Astrium
CSB Technologies
EPSa
European Datacomm
Global Tracking Technology
Globe Tracker
Honeywell Global Tracking
(EMS Global Tracking)
Kirsen Global Security
Logica
OnAsset Intelligence
PearTrack Systems
Starcom Systems
System Planning Corporation
(GlobalTrak)
5 Inland container
tracking vendors
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
Agheera
Cubic Global Tracking Solutions
FreightWatch
GlobalTrack
Hi-G-Tek
ID Systems – Asset Intelligence
Idem
Masternaut
Orbcomm (StarTrak, PAR LMS)
Pointer Telocation
Qualcomm Enterprise Services
5.12
5.13
5.14
5.15
SkyWave
Sycada
Telular (SkyBitz)
Trimble
6 Other tracking
solution providers
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
6.13
6.14
Agorabee
APS Technology
AT&T
Avante International Technology
CargoTrax
Intelleflex
ITC Infotech
Johnson Controls
Mark-It Services
Navis
Numerex
Powers International
Savi Technology
Telenor Traxion
Glossary
M2M Research Series
mHealth and
Home Monitoring
mHealth and Home Monitoring is the fourth consecutive
report from Berg Insight that gives first-hand insights into the
adoption of wireless solutions for health monitoring.
5-year industry forecasts and expert commentary on which to
Profit from 30 new executive interviews with market
leading companies.
Identify key players in the healthcare monitoring
ecosystem.
Learn about key home health monitoring devices and
services.
Understand the dynamics of the health monitoring market
in Europe and North America.
Comprehend how wireless technology can become
seamlessly integrated with medical devices.
Evaluate the business opportunities in the emerging
mHealth segment.
Predict future market and technology developments.
Order now!
What are the key business opportunities in the emerging European wireless M2M
market? Berg Insight’s M2M Research Series is a unique series of market reports
published on a quarterly basis. Each title offers detailed analysis of a specific vertical
application area such as smart metering, fleet management or vehicle telematics.
Once per year we also publish summaries of our research with detailed forecasts for
the Global and European wireless M2M markets, respectively.
www.berginsight.com
M2M Research Series
2.2 million patients worldwide are
remotely monitored today
eHealth is a term for healthcare practice supported by electronic
processes and communication. More recently, mHealth has begun to
appear as a term for eHealth using mobile phones or cellular networks.
mHealth is a very broad term that principally involves every kind of
mobile health related communication, application or data service. This
report covers home health monitoring involving patient self-testing
using medical devices and remote transmission of the medical data to
healthcare providers for disease management.
Some of the most common conditions being monitored today are
chronic diseases including cardiac arrhythmia, hypertension, ischemic
diseases, sleep apnea, diabetes, hyperlipidemia, asthma and chronic
obstructive pulmonary disease (COPD). These conditions cause
substantial costs and reduce both life expectancy and quality of life.
Berg Insight estimates that more than 200 million people in the EU and
the US suffer from one or several diseases where home monitoring can
become a treatment option. Applying information and communication
technologies in the healthcare industry can lead to decreased
costs, more efficient care delivery and improved sustainability of the
healthcare system. However, the rate of adoption is still slow and
wireless technologies have only just begun to penetrate the market.
At the end of 2011, around 2.2 million patients worldwide were using
a home monitoring service based on equipment with integrated
connectivity. The figure does not include patients that use monitoring
devices connected to a PC or mobile phone. It only includes systems
that rely on monitors with integrated connectivity or systems that use
monitoring hubs with integrated cellular or fixed-line modems. Berg
Insight forecasts that the number of home monitoring systems with
integrated communication capabilities will grow at a compound annual
growth rate (CAGR) of 18.0 percent between 2010 and 2016 to reach
4.9 million connections globally by the end of the forecast period. The
number of these devices that have integrated cellular connectivity
increased from 0.42 million in 2010 to about 0.57 million in 2011, and
is projected to grow at a CAGR of 34.6 percent to 2.47 million in 2016.
Several companies have developed integrated solutions for
monitoring multiple chronic diseases and other conditions. The six
leading providers of integrated telehealth systems include the major
technology and electronics companies Bosch, Honeywell, Philips
and Bayer, as well as the small specialist telehealth companies
Cardiocom and Numera. Combined, these six companies account for
73.0 percent of the installed base of telehealth hubs. The main market
segments for medical devices with integrated connectivity are cardiac
rhythm management, sleep therapy and cardiac event monitoring.
In these segments leading providers such as Medtronic, Biotronik,
St Jude Medical, CardioNet, LifeWatch, ResMed, Philips Respironics
and Fisher & Paykel Healthcare today market wirelessly connected
solutions. Implantable cardiac rhythm management devices is by
far the largest segment, accounting for 74.3 percent of remotely
monitored patients.
The major mobile operator groups including AT&T, Orange, Telefónica
and Vodafone are currently exploring the field and have set up
business units dedicated to mHealth. The most commonly used mode
of expansion has been to establish strategic partnerships with mHealth
and eHealth solution vendors. Several operators are leveraging other
vehicles for expansion such as corporate venture capital, acquisitions
and in-house development. However, providing specialized solutions
for the healthcare industry implies a significant diversification from
the core business. The challenge for mobile operators is to identify
market segments where they create most value, while at the same time
limiting the potential downsides of over-diversification.
The adoption of out-of-hospital wireless monitoring in healthcare
is driven by a wide range of incentives, related to everything from
demographics and technology development to new advancements in
medical treatment. However, there are a number of barriers, including
resistance to change among healthcare organizations and clinicians,
misaligned incentive structures and the financing of wireless solutions
by what is at large an underfunded healthcare sector. Several catalysts
are nevertheless likely to speed up the rate of adoption, including
increasing monitoring during clinical trials, insurance company
requirements and new clinical evidence on cost effectiveness.
Significant events that will drive uptake include the Medical Device
Data Systems (MDDS) legislation in the US and the publication of the
results from the Whole System Demonstrator project in the UK.
Which medical conditions offer the best potential for wireless health
monitoring solutions?
million units
5
Who are the leading providers of medical devices for home monitoring?
What are the mHealth strategies of mobile operators?
4
Which are the general technology trends for home health
monitoring equipment?
3
What initiatives have been taken by the leading players in the telecom
and IT industries?
2
What are the market shares of the top 10 integrated telehealth solution
vendors?
Why are smartphone applications so significant for the mHealth market?
1
0
Year
2010
2011
2012
2013
2014
2015
2016
Home health monitoring connections, million units (World 2010–2016)
How will standardisation facilitate the integration of medical devices and
mobile handsets?
How can the mobile industry contribute to the adoption of
wireless technology in healthcare?
Table of Contents
1 The challenge from
welfare diseases
1.1 Introduction
1.1.1 The ageing world population
1.1.2 Metabolic syndrome and lifestyle related
diseases
1.2 Common chronic diseases
1.2.1 Cardiac arrhythmia
1.2.2 Hypertension
1.2.3 Ischemic diseases
1.2.4 Sleep apnea
1.2.5 Chronic respiratory diseases
1.2.6 Diabetes
1.2.7 Hyperlipidemia
1.3 Healthcare providers and
reimbursement systems
1.3.1 Healthcare in Asia-Pacific
1.3.2 Healthcare in Europe
1.3.3 Healthcare in North America
2 mHealth strategies of
mobile operators
2.1
2.2
2.3
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.4.5
2.4.6
2.4.7
2.5
2.5.1
2.5.2
2.5.3
2.5.4
2.5.5
2.5.6
2.6
2.6.1
2.6.2
2.6.3
3 Enabling technologies
and initiatives
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.2
3.2.1
3.2.2
Telecommunications in mHealth services
mHealth market segments
Business models
mHealth strategies of mobile operators in
North America
Verizon Communications
AT&T
Sprint
KORE Telematics
GreatCall
TELUS
SaskTel
Europe
Vodafone
Deutsche Telecom
Orange Group
Telefónica
KPN
Telecom Italia
Asia-Pacific
NTT DoCoMo
SK Telecom
Telstra
3.2.3
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.4
3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.4.6
3.4.7
Wireless M2M technology
Chipsets, modules and terminals
Device design and machine integration
M2M device value chain
eDevice focuses on end-to-end M2M
solutions for telehealth
Qualcomm launches the 2net Platform and
Hub
Wireless M2M module vendors in the
mHealth market
Mobile handsets
Smartphone vendors and operating systems
Application stores provide a new channel to
the market for developers
Medical applications
Personal health record initiatives
Google shuts down Google Health
Microsoft HealthVault
Dossia personal health platform
PatientsLikeMe
Industry associations
Continua Health Alliance
The Bluetooth SIG Medical Working Group
American Telemedicine Association
CTIA
GSMA
mHealth Alliance
West Wireless Health Institute
3.4.8 Wireless-Life Sciences Alliance
4 Home healthcare monitoring
4.1 Trends in health monitoring
4.1.1 Going digital, going wireless
4.1.2 Distance disease management
4.1.3 Outsourcing of health monitoring
4.2 Medical monitoring devices
Cardiac monitoring
Blood pressure monitoring
Blood coagulation monitoring
Blood oxygen level monitoring
Glucose monitoring
Lipid monitoring
Sleep monitoring
Breath monitoring
Regulatory environment in Europe
Regulatory environment in the US
Regulatory environment on other major
markets
4.3.4 International standardisation
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
4.3
4.3.1
4.3.2
4.3.3
5 Physiological monitoring
solution providers
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
5.1.10
5.1.11
5.1.12
5.1.13
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.3
5.3.1
5.3.2
5.3.3
5.4
5.4.1
5.4.2
5.4.3
5.4.4
5.4.5
5.4.6
5.4.7
5.4.8
5.4.9
5.5
5.5.1
5.5.2
5.5.3
5.5.4
5.6
5.6.1
5.6.2
5.6.3
5.6.4
5.6.5
5.6.6
5.6.7
5.6.8
5.6.9
5.6.10
5.6.11
5.7
5.7.1
Cardiac monitoring
Biotronik
Boston Scientific
Medtronic
Sorin Group
St Jude Medical
CardioNet
LifeWatch
Corventis
Curvus
Q&S
SHL Telemedicine
Vitaphone
Zenicor
Blood pressure monitoring
Omron Healthcare
A&D Medical
Microlife
Rossmax
IEM
Medisana
Coagulation monitoring
Alere
CoaguSense
International Technidyne Corporation
Sleep monitoring
Fisher & Paykel Healthcare
Philips Respironics
ResMed
Cadwell Laboratories
CareFusion
Compumedics
Natus Medical
Novasom
Watermark Medical
Blood oxygen monitoring
Covidien
Masimo
Nonin Medical
Opto Circuits
Air flow monitoring
Smiths Medical
Clement Clarke International
Medical Electronic Construction
Medical International Research
Midmark
Ndd Medizintechnik
nSpire Health
SDI Diagnostics
Sibelmed
Vitalograph
Welch Allyn
Glucose level monitoring
Abbott Laboratories
5.7.2
5.7.3
5.7.4
5.7.5
5.7.6
5.7.7
5.8
5.8.1
5.8.2
5.8.3
6 Medication and integrated
monitoring solution providers
6.1
6.1.1
6.1.2
6.1.3
6.1.4
6.1.5
6.1.6
6.1.7
6.1.8
6.1.9
6.1.10
6.1.11
6.1.12
6.1.13
6.1.14
6.1.15
6.1.16
6.1.17
6.1.18
6.1.19
6.1.20
6.2
6.2.1
6.2.2
6.2.3
6.2.4
6.2.5
6.2.6
6.2.7
6.2.8
6.2.9
6.2.10
Bayer Healthcare
Johnson & Johnson
Roche
DexCom
Telcare
Welldoc
Lipid monitoring
CardioChek
Apex Biotechnology
Biomedix USA
Integrated telehealth solution providers
Bosch Healthcare
Honeywell HomMed
Cardiocom
Philips Healthcare
Numera
Viterion TeleHealthcare
Aerotel Medical Systems
American TeleCare
Authentidate
BlueLibris
BodyTel
Grandcare Systems
H2AD
Ideal Life
Intel-GE Care Innovations
MedApps
Medic4All
OBS Medical
Tunstall Group
Telehealth Solutions
Medication compliance monitoring
Aardex Group
Bang & Olufsen Medicom
Cypak
Information Mediary Corporation
Medicpen
Medsignals
Proteus Biomedical
SIMpill
Vitality
Vocel
7.1 Market analysis
7.1.1 Cardiac implants comprise the bulk of RPM
connections
7.1.2 Compliance requirements drive connectivity
in the sleep therapy market
7.1.3 Lower reimbursement slows down uptake of
mobile cardiac telemetry
7.1.4 New entrants challenge leading providers of
integrated telehealth solutions
7.1.5 Wireless connectivity gains momentum in
several market segments
7.1.6 Remote data transmission in other market
segments
7.2 Market forecasts
7.3.1 An ageing population
7.3.2 Increasing welfare disease prevalence
7.3.3 Focus on disease prevention
7.3.4 Substitutes to medical monitoring
7.3.5 Resistance to change
7.4 Potential market catalysts
7.4.1 Increased monitoring during clinical trials
7.4.2 Insurance companies demanding
monitoring
7.4.3 New clinical evidence on cost effectiveness
7.4.4 Non-prescribed monitoring and healthcare
consumerism
7.5 Recommendations for mobile industry
players
Glossary
M2M Research Series
ITS in Public Transport
ITS in Public Transport is a comprehensive report from Berg
Insight analysing the latest developments on the intelligent
transportation systems market for public transport in Europe.
This strategic research report from Berg Insight provides
you with 150 pages of unique business intelligence, including
5-year industry forecasts, expert commentary and real-life case
studies on which to base your business decisions.
Highlights from the report:
leading companies.
Data on vehicle fleets and public transport utilisation in
Europe.
Comprehensive overview of the public transport ITS value
Profiles of 39 aftermarket ITS solution providers.
Summary of OEM propositions from public transport
vehicle brands.
Order now!
www.berginsight.com
M2M Research Series
Public transport ITS in Europe
boosted by market deregulation
The term Intelligent Transport Systems (ITS) refers to information
and communication technology applied to transport infrastructure
and vehicles. Berg Insight’s definition of ITS for public transport includes systems which are installed in public transport vehicles as
well as at terminals, stops and similar. Included are also backoffice IT systems which ensure that public transport services can be
planned, scheduled and managed to achieve efficient operations.
An important part of ITS for public transport is further solutions providing travellers with updated information about routes, departure
times, possible disturbances and connecting services. The history
of these different types of solutions dates back several decades and
current state-of-the-art solutions include for example real-time intermodal journey planners, automated fare collection systems using
smartcards, and on-board infotainment solutions with information
about nearby points of interest.
Public transport plays an essential role in the European society.
Approximately 60 billion public transport passenger journeys per
year are carried out in the EU27. Available modes include for example
local and regional buses and trolleybuses, regional and suburban
rail transport, metros and trams, and local waterborne passenger
transport services. A total of 737,000 buses and coaches account for
9.5 percent of the yearly passenger kilometres on land in Europe.
The economic value of public transport services in Europe amounts
to € 130–150 billion per year, which represents approximately
1–1.2 percent of the GDP. The public transport sector furthermore
creates about 1.2 million direct employments in Europe, and an
average of 2–2.5 indirect employments per direct job.
Berg Insight is of the opinion that the European market for ITS solutions for public transport is in a growth phase which will last for
several years to come. Individual markets may however experience
temporary fluctuations, depending on the political climate and local developments. The total market value for public transport ITS
for buses and trams is forecasted to grow at a compound annual
growth rate of 15 percent from € 0.65 billion at the end of 2010 to
€ 1.3 billion by 2015. The penetration of on-board computer units
with GPS location functionality and wireless communication in buses and trams is estimated to increase from 30 percent in 2010 to
48.3 percent in 2015.
€ million
A group of international aftermarket solution providers have
emerged as the leaders on the European market for public transport
ITS. The dominant providers are INIT, Trapeze ITS and IVU, all based
in the German speaking region and having substantial installed
bases across a multitude of countries. Examples of companies with
major market shares on national markets in Europe include INEO
Systrans, which holds a leading position in France, and Vix Technology’s recently acquired subsidiary ACIS which is a major vendor on
the UK market. Other significant players include the Spanish company groups GMV and Grupo Etra, Swarco’s subsidiary Mizar in
Italy, the Norweigan company FARA and the German provider PSI
Transcom.
All the major bus manufacturers on the European market have initiatives related to OEM bus telematics, however using very different
strategies. Scania offers the same telematics features for buses as
for the trucks, and MAN is planning to introduce a similar offering.
Daimler has introduced a modified version of its fleet management
system for trucks, adapted to better suit bus customers, while Iveco
with the Irisbus brand collaborates with third party suppliers when
fulfilling customer requirements for ITS. Volvo Group, in turn, offers
functionality not only for conventional telematics and fleet management applications, but also real-time passenger information and
traffic management.
The outlook for the European public transport ITS market is positive,
as several major developments foster increased adoption of such
technologies. The continent-wide deregulation of the public transport market creates a need for technologies which can handle the
increasingly burdensome task of providing synchronised passenger information. International public transport related initiatives such
as the EU project EBSF are also likely to increase the ITS adoption. Other contributing developments include UITP’s sought-after
doubling of the public transport ridership by 2025, the increasing
environmental awareness and decreasing costs for ITS.
How is public transport organised and managed in the
European countries?
What is the geographical structure of public transport
fleets in Europe?
Which are the leading international and regional
providers of aftermarket public transport ITS in Europe?
1500
What offerings are available from vehicle OEMs?
1200
What impact will the launch of standard factory installed
on-board computers from the OEMs have on the
market?
900
600
How has the economic crisis affected the market for
public transport ITS in Europe?
300
How are the regulatory developments in Europe
affecting the public transport ITS industry?
0
Year
2010
2011
2012
2013
2014
2015
Market value of public transport ITS (EU27+2 2010 – 2015)
How will the public transport ITS industry evolve in the
future?
Table of Contents
1 Public transport in Europe
1.1 Modal split of passenger transport
1.2 Bus fleets and public transport
utilisation
1.3 Market shares for bus and coach
OEMs
1.4 Rail-borne public transport modes
1.4.1 Trams and light rail
1.4.2 Metro
1.5 Organisation and contracting in
public transport
1.5.1 Legal framework
1.5.2 Organisational forms and regional
differences
1.6 Major public transport
operators
2 ITS technologies
and solutions
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.2
2.2.1
2.2.2
2.2.3
2.3
2.3.1
2.3.2
2.3.3
2.4
2.4.1
2.4.2
2.4.3
2.5
2.5.1
Public transport ITS infrastructure
Vehicle segment
Roadside segment
Backoffice segment
Traveller segment
GNSS segment
Network segment
Public transport management
Planning and scheduling tools
Computer aided dispatch systems
Traffic signal priority
Traveller management
Passenger information
Entertainment
Fare payment
Driver management
Eco-driving schemes
Vehicle management
Vehicle diagnostics and maintenance planning
2.5.2 On-board security solutions
2.6 Business models and strategies
3.1
3.1.1
3.1.2
3.1.3
Market analysis
Market value forecast
Regional markets
Major vendors
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.4
Macroeconomic environment
ITS and telematics industry players
IT industry players
4.1
4.2
4.3
4.4
4.5
4.6
4.6.1
4.6.2
4.6.3
Daimler
Iveco
MAN
Scania
Volvo Group
Other bus manufacturers
Alexander Dennis
VDL
Van Hool
5 Aftermarket solution providers
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.3
5.3.1
5.3.2
5.3.3
5.3.4
5.3.5
5.3.6
5.3.7
5.3.8
5.3.9
5.3.10
International
GIRO
INIT
IVU
Swarco
Thales
Trapeze ITS
Germany and Eastern Europe
Atron
PSI Transcom
R&G
Radcom
Siemens
UTI
France and the UK
21st Century
ACIS
Comatis
GreenRoad
INEO Systrans
Lumiplan
MiX Telematics
Navocap
Omnibus
SPIE
5.4
5.4.1
5.4.2
5.4.3
5.4.4
5.4.5
5.4.6
5.4.7
5.4.8
5.4.9
5.5
5.5.1
5.5.2
5.5.3
5.5.4
5.5.5
5.5.6
5.5.7
The Mediterranean
AP Systems
Digigroup
GMV
Grupo Etra
Indra
Link Technologies
Prointec
Selex Elsag
T&T
The Nordics
DRI/Mobitec
FARA
Hogia
Pilotfish
Thoreb
Trivector
Vehco
Glossary
M2M Research Series
Smart Metering in North
America and Asia-Pacific
Smart Metering in North America and Asia-Pacific is the
second consecutive market report from Berg Insight analysing
the latest developments for smart metering in two dynamic
regions.
with over 160 pages of unique business intelligence, including
Highlights from the report:
Case studies of smart metering projects by the leading
energy industry players in North America and Asia-Pacific.
In-depth market profiles of the US, Canada, China, Japan,
South Korea, Australia and New Zealand.
Status updates on the development of smart grid and
communication technology.
Profiles of the key players in the smart metering industry in
North America and Asia-Pacific.
Forecasts for smart meter shipments and penetration rates
until 2016.
Analysis of the latest market and industry developments in
each region.
Order now!
www.berginsight.com
M2M Research Series
Smart meters spread through North
America and Asia-Pacific
Smart grid is one of the latest buzzwords in the energy sector and
has become a catch-phrase for politicians, academics and industry leaders alike. The vision is to exploit the latest technology to address the immense challenge of securing the energy supply in the
21st century. The concept of smart grids is at times put forward as a
revolutionary solution to a wide array of problems, ranging from the
West’s dependency on Middle Eastern oil to global warming. A more
realistic expectation is however that smart grid technology will contribute to improved efficiency and reliability in energy distribution and
better optimisation in allocation of resources and utilisation of assets.
Smart metering is widely regarded as the cornerstone for future
smart grids. In the history of metering technology, smart metering
represents the third stage in a chain of developments spanning more
than 100 years. Manually read meters have been around since the
advent of the utility industry in the late 19th century. Over the last
three decades, automated meter reading (AMR) based on one-way
or two-way communication has evolved. Smart metering broadens
the scope of AMR beyond just meter readings with additional features enabled by two-way data communication. A smart metering
solution generally delivers a range of applications using an infrastructure comprising networked meters, communication networks
and data collection and management systems.
Smart electricity meters are being introduced all over the developed
world. North America and Asia-Pacific are two of the most dynamic
market regions that will see massive projects realised over the next
five to ten years. Berg Insight forecasts that the installed base of
smart electricity meters in North America will grow at a compound
annual growth rate of 22.5 percent between 2010 and 2016 to reach
87.4 million units at the end of the period. Asia-Pacific is projected
to see the installed base of smart meters soar from a low level to
378.1 million units by 2016.
North America has the world’s highest penetration of automatic meter reading, exceeding 50 percent. Over the past years, many of the
largest utilities in the US have embarked on ambitious smart grid
schemes where one of the main objectives is to deploy second generation advanced metering infrastructure. AEP, PG&E, Southern California Edison, Southern Company, Florida Power & Light and Oncor
are some of the largest utility groups having committed to full-scale
rollouts to all customers. Furthermore there are numerous projects
%
100
2011
80
2016
East Asia is in the earliest phase of the adoption of smart metering
technology. Large-scale rollouts to residential customers have only
recently begun in Japan and South Korea, while China remains in
the piloting stage. National and industry leaders do however have
clear visions for the adoption of the technology over the course of
this decade. South Korea has adopted a national plan for the construction of a smart grid by 2020. Japan already has the world’s most
advanced power grid monitoring systems in place and several of the
leading utilities have announced plans for smart meter deployments
over the next ten years. China is investing massively in the expansion of the nation’s energy infrastructure to keep up with the rapidly
increasing power demand. The country has begun deploying a new
generation of more advanced electricity meters, which are prepared
for two-way communication. China has however not yet decided on
any final standards for smart grid networking. Although the country is
on track to reach near 100 percent penetration for smart meters that
support communication by 2015, there is not yet any infrastructure
in place to network them into a nationwide smart grid. Australia and
New Zealand began massive installations of smart meters at the end
of the last decade. Adoption is driven by regulations in the case of
Australia and by the main industry players in New Zealand.
How are national energy policies driving the adoption of
smart metering?
What new smart metering projects have been enabled
by the US federal stimuli funds?
What are the plans for smart meters deployments in
British Columbia and Québec?
When will China start the construction of a nationwide
smart metering data network?
What is the role for smart metering in South Korea’s
national smart grid plan?
What is the current status for smart metering in Japan?
60
What is driving adoption of smart meters in Australia
and New Zealand?
40
Who are leading the race for market leadership in North
America?
20
0
among medium sized and small utilities throughout the country.
National and state policies play a major role in shaping developments. The US market received a major boost through the Obama
Administration’s American Recovery and Reinvestment Act that includes US$ 43 billion ear-marked for the energy sector plus tax incentives. A number of states, including California, Texas, Florida and
Pennsylvania have approved utility plans for massive smart meter
deployments, while others such as Virginia have turned down major
project proposals. In Canada, the provinces of Ontario and British
Columbia have introduced mandatory requirements for smart electricity meters for all customers. Hydro-Québec announced Canada’s
largest project to date in 2011, involving 4.0 million metering points.
China
South Korea
USA & Canada
Australia &
New Zealand
Japan
Projected penetration rates for smart electricity meters
in North America and Asia-Pacific
Which are the main providers of PLC and wireless
communication technology for smart meters?
Which are the emerging top players in the Chinese
smart metering industry?
Table of Contents
1 Smart grids and
intelligent meters
1.1
1.2
1.2.1
1.2.2
1.2.3
1.3
1.3.1
1.3.2
1.3.3
1.3.4
1.4
1.4.1
Introduction to smart grids
Smart metering
Smart metering applications
Smart metering infrastructure
Benefits of smart metering
Project strategies
System design and sourcing
Rollout and integration
Implementation and operation
Communicating with customers
Regulatory issues
Models for the introduction of smart
meters
1.4.2 Standardisation
1.4.3 Individual rights issues
2 PLC and wireless communication technologies
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
2.2.7
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.3.6
2.3.7
2.3.8
PLC versus wireless communication
PLC point-to-multipoint
Wireless Mesh point-to-multipoint
Cellular networks point-to-point
Home area networking
PLC technology and vendors
Industry associations and standards
Tier one semiconductor companies
Advanced Digital Design
CURRENT
Leaguer Microelectronics
Topscomm
Yitran Communications
Wireless technology and vendors
Industry initiatives and standards
Cinterion
Coronis
Ember
Sierra Wireless
Sigma Designs
Simcom
Telit
3 Smart metering
industry players
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.1.10
Meter vendors
Landis+Gyr
Itron
Elster
Aichi Tokei Denki
EDMI
GE Energy
Holley Metering
Linyang Electronics
LSIS
Osaki Electric
3.1.11
3.1.12
3.1.13
3.1.14
3.1.15
3.1.16
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
3.2.8
3.2.9
3.2.10
3.2.11
3.2.12
3.2.13
3.2.14
3.2.15
3.2.16
3.2.17
3.2.18
3.2.19
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7
3.4
3.4.1
3.4.2
Sanxing Electric
Schneider Electric
Secure Meters
Sensus
Wasion
Second tier Chinese meter vendors
Smart grid solution providers
Aclara
Ambient
Arcadian Networks
Arc Innovations
Cooper Power Systems
Comverge
Echelon
Eastsoft
FXXC
KDN
Nighthawk
NURI Telecom
Omni System
Ruggedcom
Silver Spring Networks
SmartSynch
Tantalus
Trilliant
Tropos Networks
MDMS and middleware
vendors
Ecologic Analytics
eMete
EnergyICT
NorthStar Utilities Solutions
Oracle
OSIsoft
SAP
System integrators and managed
service providers
IT industry players
4 Market analysis
4.1
4.1.1
4.1.2
4.1.3
4.2
4.2.1
4.2.2
4.2.3
4.3
4.3.1
4.3.2
4.3.3
North America
Market forecast
Technology trends
Industry analysis
East Asia
Market forecast
Technology trends
Industry analysis
Australia and New Zealand
Market forecast
Technology trends
Industry analysis
5 North America
5.1 Regional summary
5.2 United States
5.2.1 Electricity and gas utilities
5.2.2 Federal smart grid and metering
initiatives
5.2.3 Regional overview: Northeast
5.2.4 Regional overview: Midwest
5.2.5 Regional overview: South
5.2.6 Regional overview: West
5.3 Canada
5.3.1 Electricity and gas utilities
5.3.2 Ontario’s smart meter rollout
5.3.3 Smart metering initiatives in other
provinces
6 Asia-Pacific
6.1
6.2
6.2.1
6.2.2
6.3
6.3.1
6.3.2
6.4
6.4.1
6.4.2
6.5
6.5.1
6.5.2
6.6
6.6.1
6.6.2
Regional summary
China
Electricity industry structure
Smart grid and metering initiatives
Japan
Electricity and gas utility industry
structure
Smart grid and metering initiatives
South Korea
structure
National smart grid plan for 2020
Australia
structure
Regulation driven deployments of
smart meters
New Zealand
Electricity industry structure
Industry driven deployments of smart
meters
7 Case studies
7.1
7.1.1
7.1.2
7.1.3
7.1.4
7.1.5
7.2
7.2.1
7.2.2
7.2.3
7.3
7.3.1
7.3.2
7.3.3
7.3.4
North America
Pacific Gas & Electric
Sempra Energy
Florida Power & Light
Hydro-Québec
BC Hydro
East Asia
State Grid Corporation of China
Kansai Electric Power
KEPCO
Australia and New Zealand
Ausgrid
Jemena and UED
SP AusNet
Vector
Glossary
M2M Research Series
Smart Metering in Europe
Smart Metering in Europe is the eighth consecutive report
from Berg Insight analysing the latest developments for smart
metering in Europe.
with over 220 pages of unique business intelligence, including
Highlights from the eighth edition of the report:
Case studies of smart metering projects by the leading
energy groups in Europe.
In-depth market profiles of nineteen countries in Europe.
Status updates on the development of smart grid and
communication technology.
Updated profiles of the key players in the metering industry.
Summary of the latest developments in the European energy
industry.
Order now!
www.berginsight.com
M2M Research Series
Half of Europe’s households will
get smart meters by 2016
Smart grid is one of the latest buzzwords in the energy sector and
has become a catch-phrase for politicians, academics and industry leaders alike. The vision is to exploit the latest technology to address the immense challenge of securing the energy supply in the
21st century. The concept of smart grids is at times put forward as a
revolutionary solution to a wide array of problems, ranging from the
West’s dependency on Middle Eastern oil to global warming. A more
realistic expectation is however that smart grid technology will contribute to improved efficiency and reliability in energy distribution and
better optimisation in allocation of resources and utilisation of assets.
Smart metering is widely regarded as the cornerstone for future
smart grids. In the history of metering technology, smart metering
represents the third stage in a chain of developments spanning more
than 100 years. Manually read meters have been around since the
advent of the utility industry in the late 19th century. Over the last
three decades, automated meter reading (AMR) based on one-way
or two-way communication has evolved. Smart metering broadens
the scope of AMR beyond just meter readings with additional features enabled by two-way data communication. A smart metering
solution generally delivers a range of applications using an infrastructure comprising networked meters, communication networks
and data collection and management systems.
Smart electricity meters are being introduced all over the developed
world. Europe had an early start in the 2000s when Enel completed
the first nationwide rollout of smart meters to more than 30 million
customers in Italy. Later deployments followed in the Nordic countries and at the beginning of the 2010s, Spain, France and the UK are
assuming the positions as the most active markets. Berg Insight forecasts that the installed base of smart electricity meters in EU23+2
will grow at a compound annual growth rate of 19.4 percent between
2010 and 2016 to reach 130.5 million units at the end of the period.
Annual shipments of smart electricity meters are anticipated to exceed 20 million units in the mid-2010s.
A majority of the countries in Western Europe have adopted a policy
of regulation-driven introduction of smart meters. Italy and Sweden
were first to complete their rollouts that began in 2001 and 2003 respectively. Finland and Norway will require smart meters for all electricity customers by 2013 and 2016 respectively, while France, Spain,
the UK and Ireland have set targets to achieve full penetration in
the final years of this decade. That will also be the case in the Netherlands, where the plans to introduce smart meters met strong opposition on the grounds of being invasive to privacy and were delayed
for several years before they were finally approved by the parliament
in late 2010. Germany on the other hand has only implemented
some weaker regulatory drivers and the federal government has declared that it has no intention to push for a quick nationwide rollout.
Iberia is the new focal point for smart metering in Europe. Following a build-up phase in 2010, massive installations will take off in
Spain during 2011, as Endesa goes ahead with a full-scale rollout.
Iberdrola is performing major pilots involving hundreds of thousands
of customers and activity is also picking up at Gas Natural Fenosa.
Furthermore EDP considers a nationwide rollout in Portugal that can
be coordinated with the mandatory deployment by its distribution
network subsidiary in Spain. Berg Insight forecasts that annual shipments of smart electricity meters in Iberia will peak at around 5 million units per year during 2016–2017 before the market gradually
slows down in the final years before the installation deadline in 2018.
France and the UK became active markets in 2010 as ERDF and
British Gas entered the initial phases of their smart meter installation
programmes. ERDF plans to start with a massive nationwide rollout
from 2012 and will need to deploy around 6 million units per year
between 2014 and 2017 in order to fulfil the regulatory obligations
that will take effect in 2018. The UK is currently in a build-up phase,
preparing for a mass rollout to nearly 30 million customers during
2014–2019. British Gas and E.ON have committed to the installation
of at least one million smart electricity meters each before the mass
rollout begins. Berg Insight expects that all major energy suppliers in
the UK will switch to smart meters for new connections and planned
replacements prior to the mass rollout. Ireland plans a nationwide
rollout of smart meters starting in 2014.
How are EU and national energy policies driving the
adoption of smart metering?
What are the UK government’s plans for a nationwide
rollout of smart meters?
How are smart meter deployments proceeding in
France and Spain?
150
What are the latest regulatory developments in the
Netherlands and Norway?
120
What are the prospects for massive smart meter
installations in Central Eastern Europe?
Million units
90
Which lessons can be learnt from customer behaviour
trials?
60
Who are the leading suppliers of smart metering
solutions for the European market?
Which are the main providers of PLC and wireless
communication technology for smart meters?
30
0
Year
2010
2011
2012
2013
2014
2015
2016
Installed base of electricity smart meters (EU23+2 2010–2016)
What will be the impact of pan-European standard
initiatives related to smart metering?
Table of Contents
1 Electricity, gas and district
heating distribution in Europe
1.1
1.2
1.3
1.4
Energy industry players
Electricity market
Gas market
District heating market
2 Smart metering
2.1
2.2
2.2.1
2.2.2
2.2.3
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.4
2.4.1
Introduction to smart grids
Smart metering
Smart metering applications
Smart metering infrastructure
Benefits of smart metering
Project strategies
System design and sourcing
Rollout and integration
Implementation and operation
Communicating with customers
Regulatory issues
Models for the introduction of
smart meters
2.4.2 Standardisation initiatives
2.4.3 Individual rights issues
3 PLC and wireless
communication technologies
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7
3.3.8
3.3.9
PLC versus wireless communication
PLC point-to-multipoint
Wireless Mesh point-to-multipoint
Cellular networks point-to-point
Home area networking
PLC technology and vendors
Industry associations and standards
Tier one semiconductor companies
Advanced Digital Design
CURRENT
Power Plus Communications
Yitran Communications
Wireless technology and vendors
Industry initiatives and standards
Cinterion
Coronis
Develco
Ember
Radiocrafts
Sierra Wireless
Sigma Designs
Telit
4 Smart metering
industry players
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5
4.1.6
4.1.7
4.1.8
4.1.9
4.1.10
4.1.11
4.1.12
4.1.13
4.1.14
4.1.15
4.1.16
4.1.17
4.1.18
4.1.19
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
4.2.6
4.2.7
4.2.8
4.2.9
4.2.10
Meter vendors
Landis+Gyr
Itron
Elster
Aidon
Apator
Circutor
Diehl Metering
EDMI
EMH Metering
GE Energy
Hager
Iskraemeco
Janz
Kamstrup
Sagemcom
Secure Meters
Sensus
ZIV
ZPA Smart Energy
Smart grid solution providers
ADD Grup
Echelon
Embriq
Enel
ISA
Metrima
NURI Telecom
Remote Energy Monitoring
Sentec
Siemens
4.2.11
4.2.12
4.2.13
4.2.14
4.2.15
4.2.16
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
4.3.6
4.3.7
4.3.8
4.3.9
4.3.10
4.4
Silver Spring Networks
Smart Grid Norway
Trilliant
Tropos Networks
Tritech Technologies
Xemex
MDMS and middleware vendors
Ecologic Analytics
eMeter
EnergyICT
Görlitz
Netinium
Oracle
OSIsoft
Powel
Process Vision
SAP
System integrators and managed service
providers
4.4.1 IT industry players
5 Market analysis
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.2
5.2.1
5.2.2
5.3
5.4
Market drivers and restraints
Macroeconomic factors
Industry standards
Smart metering market forecast
Geographical markets
Capital expenditure forecast
Technology trends
Industry analysis
6 Market profiles:
Northern Europe
6.1
6.1.1
6.1.2
6.1.3
6.1.4
6.2
6.2.1
6.2.2
6.2.3
6.3
6.3.1
6.3.2
6.3.3
6.4
6.4.1
6.4.2
6.4.3
Sweden
Electricity distribution industry structure
Metering regulatory environment
Smart metering market developments
The outcome of a regulation driven rollout
Denmark
Finland
Norway
7 Market profiles:
Western Europe
7.1 Austria
7.1.1 Electricity and gas distribution industry
structure
7.1.2 Metering regulatory environment and smart
metering market developments
7.2 Belgium
7.2.1 Electricity and gas distribution industry structure
7.3 France
7.4 Germany
structure
7.4.2 Metering regulatory environment
7.4.3 Smart meter market developments
7.5 Ireland
structure
7.5.2 Nationwide program for deployment of smart
meters
7.6 The Netherlands
meter market developments
7.7
7.7.1
7.7.2
7.7.3
7.7.4
United Kingdom
Electricity and gas distribution industry structure
Plans for a nationwide smart metering system
Early smart meter deployments
8 Market profiles:
Southern Europe
8.1
8.1.1
8.1.2
8.1.3
8.2
8.2.1
8.2.2
8.2.3
8.3
8.3.1
8.3.2
Italy
Spain
Portugal
Metering regulatory environment and smart
8.4 Malta
8.4.1 Utility industry structure
8.4.2 National smart grid project
9 Market profiles:
Central Eastern Europe
9.1 Bulgaria
structure
9.2 Czech Republic
metering pilots
9.3 Poland
metering projects
9.4 Slovenia
9.4.1 Electricity industry structure and metering
regulatory environment
9.4.2 Smart metering projects
10 Case studies: Smart metering
projects in Europe
10.1
10.1.1
10.1.2
10.1.3
10.2
10.2.1
10.2.2
10.3
10.3.1
10.3.2
10.4
10.4.1
10.4.2
10.5
10.5.1
10.5.2
10.6
10.7
10.7.1
10.7.2
10.7.3
10.8
10.8.1
10.8.2
Enel
The Telegestore project in Italy
The Meters and More initiative
Endesa’s smart metering project in Spain
ERDF
The Linky Programme
System development and full-scale pilot
Iberdrola
The PRIME project
Smart metering projects in Spain and the US
RWE
Regional DSO operations in Germany
The Mülheim Zählt project
Fortum
Smart meter rollout in Sweden
Smart meter rollout in Finland
Energa
ESB
Communication technology trials
Consumer behaviour trials
Cost benefit analysis
Smart metering projects in the UK
Ofgem’s Energy Demand Research Project
British Gas’ early rollout to residential
customers
10.8.3 Candidate technologies for the DCC’s smart
metering network
Glossary
M2M Research Series
Security Applications
and Wireless M2M
Security Applications and Wireless M2M is the fourth
consecutive report from Berg Insight analysing the latest
developments among the key applications for wireless M2M
communication in the security industry.
This report in the M2M Research Series provides you with
110 pages of unique business intelligence including 5-year
industry forecasts and expert commentary on which to base
Identify key players on the European security market.
Learn about the latest propositions from leading monitored
alarm system vendors.
Understand the opportunities and challenges for stolen
vehicle tracking services.
Anticipate future drivers for increasing penetration and
replacement sales for alarm systems.
Realize the commercial potential of emerging segments
including leisure vehicle and boat tracking.
Predict future trends in lone worker protection services.
Order now!
www.berginsight.com
M2M Research Series
Strong growth ahead for connected
security applications in Europe
The private security sector is a global industry comprising services
and solutions such as manned guarding, alarm system integration
and monitoring, cash and valuables handling as well as various
services like consulting and private investigations. The global market
value of the security industry grew to an estimated € 110 billion in
2010. The more mature European and North American markets still
dominate the industry with a combined market share of close to 70
percent. In 2010, the European market value was about flat at € 45.5
billion. The long-term annual growth rate is estimated to between
7 and 9 percent globally, and between 6 and 8 percent in Europe
and the US. Historically, annual growth has exceeded GDP by a few
percentage points each year.
Berg Insight forecasts that shipments of wireless M2M modules for
security applications in EU27+2 will grow from 2.4 million in 2010 at
a compound annual growth rate (CAGR) of 55 percent to reach 21.4
million by 2015. At the same time, the number of wireless devices
monitored from an alarm receiving centre and similar will grow from
7.0 million in 2010 at a CAGR of 41 percent to reach about 39.2 million by the end of 2015.
The key application areas for wireless M2M communication in the
European security industry are alarm systems and vehicle tracking systems for passenger cars and commercial vehicles. Alarm
systems are off-the-shelf security systems for small businesses and
private homes. These are divided into two main categories – local
alarms and monitored alarms. The simplest type of local alarm only
reacts to activation by ringing bells to alert the surroundings and
scare off intruders. Monitored alarms are connected to an alarm receiving centre (ARC). Today, only 25 percent of the 30 million alarm
systems in Europe are monitored by an ARC. Monitored alarm systems are dependent on reliable communication networks. There is a
significant untapped potential in the residential market segment that
can be fulfilled with the latest generation of monitored alarm systems
with GSM/GPRS or dual signalling technology.
Vehicle tracking and recovery is the second major application area
for wireless M2M communication in the security industry. Devices
combining GPS and GSM/GPRS technologies enable monitoring
services for any mobile object. Passenger cars and commercial
vehicles constitute the main target markets by virtue of numbers
and individual value, but there are also many niche markets such
Today, only a handful car OEMs offer telematics solutions in a few
markets in the EU. Berg Insight anticipates that additional brands
will launch OEM telematics solutions on the European market in response to the eCall intiative within the EU. The European Commission has a strong commitment to introducing eCall as a standard
feature in all new cars and recently set 2014 as the new target date
for realising this vision – through regulations if necessary. Vehicle
tracking and recovery is likely to become a key component for many
OEM telematics systems in the next few years, especially for premium cars. Features beyond basic E112 functionality are likely to
be subscription services that have to be renewed some years after
the purchase of a new vehicle. Significant churn can be expected for
these services.
There are also many emerging niche applications for wireless M2M
in the security industry that have not yet reached significant volumes.
Personal security for lone workers is an application area offering
growth opportunities in the medium and long term. Wearable integrated tracking and wireless communication devices can be used
for protecting individuals. This area is mainly driven by stringent employee health and safety regulations in the UK, but other countries
may also introduce similar laws in the future. Moreover, various forms
of electronic monitoring of offenders are gradually being rolled out
across Europe to reduce costs of running prisons and assist in the
rehabilitation process.
What is the potential market size for wireless M2M
communication in the security industry?
Which are the key applications that generate most
benefits for the end customers?
Who are the leading providers of monitored small
business and home alarm systems?
Million connections
40
Why are leading alarm system providers investing in
wireless technology?
35
30
When will wireless connectivity become a standard
feature in alarm systems?
25
20
Who are the leading providers of aftermarket vehicle
tracking solutions?
15
10
5
0
as construction equipment and plant machinery as well as leisure
vehicles and boats. Similar hardware designs also constitute the onboard platform for fleet management solutions and the tracking capabilities of these systems enable basic security applications. What
distinguishes vehicle tracking and recovery system from fleet management systems is the monitoring and response service of the secure monitoring centre that is linked to GPS-aided security systems.
Year
2009
2010
2011
2012
2013
2014
2015
Cellular M2M connections for security applications (EU27+2 2009–2015)
What new applications for wireless M2M are emerging
in the security industry?
Are regular handsets suitable for lone worker
protection services?
Table of Contents
1 Overview of the European
security industry
1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
Market overview
Security services
Security systems
Small alarm systems
Cash handling
Key industry players
Group 4 Securicor
Prosegur
Securitas
Tyco International
United Technologies Corporation
2 Small business and home
alarm systems
2.1 The European small alarm systems
market
2.1.1 Monitored alarm systems
2.1.2 Alarm monitoring services
2.2 Alarm signal transmission
2.2.1 Small alarm system technology
overview
2.2.2 Mobile network alarm communication
solutions
2.2.3 Market penetration for mobile network
alarm communication
2.3 Company profiles
2.3.1 ADT
2.3.2 Group 4 Securicor
2.3.3 Prosegur Activa
2.3.4 Securitas Direct
2.3.5 UTC Fire & Security
2.4 Visual security systems
2.4.1 Network cameras
2.4.2 Digital video technology
2.4.3 Wireless network requirements
2.4.4 Network camera vendors
3 Commercial vehicle and
asset tracking
3.1 The European commercial vehicle
market
3.2 Fleet management solutions
3.2.1 Vehicle management
3.2.2 Security tracking
3.2.3 Driver management
3.2.4 Transport management
3.2.5 Mobile workforce management and
lone worker security
3.3 Container tracking solutions
3.3.1 Intermodal shipping containers
3.3.2 Overview of the container shipping
industry
3.3.3 Container tracking solutions
3.4 Key fleet management solution
providers
3.4.1 Digicore: A global vehicle tracking
solution provider
3.4.2 ID-Systems – Asset Intelligence: The
leading provider of trailer telematics
3.4.3 Masternaut: Europe’s leading fleet
management provider merges with
Cybit
3.4.4 Qualcomm Enterprise Services: Global
provider of integrated M2M solutions
3.4.5 Transics: Pan-European heavy truck
and transport telematics provider
3.4.6 Trimble: Strengthens European
presence with acquisition of Punch
Telematix
3.4.7 Volvo Group: Dynafleet available with
security service from Securitas
3.5 Satellite communication network
operators
3.5.1 Globalstar: Increases focus
on consumer tracking and
communication
3.5.2 Iridium: Experiences fast growth in
M2M data services
3.5.3 Orbcomm: Dedicated M2M satellite
data communications provider
4 Car tracking and consumer
asset tracking
4.1
4.2
4.2.1
4.2.2
4.2.3
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.4
4.4.1
4.4.2
4.4.3
4.5
4.5.1
4.5.2
4.5.3
4.6
The European passenger car market
Passenger car telematics
Stolen vehicle recovery
eCall and driver assistance
Motor insurance telematics
Insurance industry standards for
vehicle tracking
Belgium
The Netherlands
Norway
United Kingdom
Aftermarket vehicle tracking
solutions
Octo Telematics: European leader in
motor insurance telematics
Cobra Automotive Technologies: PanEuropean SVR provider
LoJack distributors: TRACKER,
Traqueur and Detector
OEM car telematics solutions
BMW ConnectedDrive
PSA Peugeot Citroën RT3/RT4/
Navidrive
Volvo On Call
The European motorcycle and
moped market
4.6.1 Motorcycle theft in Europe
4.6.2 Motorcycle tracking solutions
4.7 The European leisure vehicle and
boat market
4.7.1 Market overview
4.7.2 Boat tracking solutions
5 People tracking
5.1 Corporate people tracking and lone
worker protection
5.1.1 Lone worker legislation
5.1.2 Lone worker protection devices and
services
5.1.3 Electronic monitoring of offenders
5.2 Consumer-oriented people tracking
5.2.1 Mobile operator services
5.2.2 Third party handset-based tracking
services
5.2.3 Dedicated GPS tracking devices and
services
5.3 Company profiles
5.3.1 Connexion2: Identicom and the
SoloProtect managed lone worker
service
5.3.2 Geonovo: Developer of the Romad
RSP-100 lone worker device
5.3.3 SPOT: GPS tracking and satellite
messenger devices from Globalstar
5.3.4 Tramigo: TLD landmarks facilitates
location of assets without using maps
5.3.5 Twig Com: Acquired the TWIG tracking
device business from GeoSentric
6.1 Market trends and drivers
6.1.1 Alarm systems: GSM/GPRS
complementing and replacing PSTN
6.1.2 Fleet management: Market recovering
from the economic downturn
6.1.3 Car telematics: The EC sets 2014 as
new target for introduction of eCall
6.1.4 Lone worker protection: Market driven
by UK legislation
6.1.5 Consumer asset tracking: Steady
growth from diverse applications
6.2.1 Alarm systems
6.2.2 Fleet management, commercial
vehicle and asset tracking
6.2.3 Car telematics
6.2.4 Lone worker protection services
6.2.5 Consumer asset tracking applications
Glossary
M2M Research Series
Smart Homes and
Home Automation
Smart Homes and Home Automation is a comprehensive
report from Berg Insight analysing the latest developments
on the global connected home market.
This report in the M2M Research Series provides you with
Highlights from the first edition of the report:
Insights from 30 executive interviews with market
leading companies.
360-degree overview of the smart homes & home
automation ecosystem.
Summary of industry trends in key vertical market
segments.
Statistical data on HA adoption in major countries
and regions.
Reviews of the latest initiatives launched by industry
players.
Updated profiles of the key vendors on this market.
Order now!
www.berginsight.com
M2M Research Series
Where is the global smart
home market headed?
Smart homes and home automation (HA) technologies have been
around for two or three decades. These technologies have been a
niche segment either for the very affluent, or extreme technophiles
who wanted to do a few things like control their lights or window
shades remotely, or stream audio-video content between rooms, or
do some basic home monitoring. Initial HA systems focused on security and utility management, but newer all-in-one systems give users real-time control over almost all the systems in the house while at
home or away, resulting in a smarter and more energy efficient home
tailored to the homeowner’s lifestyle.
Berg Insight sees a new day dawning for this industry due to a perfect confluence of key market, regulatory, strategic and technology
trends. First is the pull from consumers who desire to use products
such as iPhones and iPads to control and enhance their lifestyles
with the touch of a button on user-friendly and intuitive interfaces.
The regulatory drivers come from governmental directives, whereby
countries and utilities are mandated to better control the generation,
distribution and consumption of power in residences. The strategic
push comes from new powerful entrants into this space such as
broadband providers who are already inside consumers’ homes and
are looking for the next growth opportunities to increase ARPU, reduce churn and become solutions providers rather than just “dumbpipes”. In the US, broadband companies such as AT&T, Comcast
and Verizon have shown their hand as they have made recent strong
advances into this space. Finally, the technology is coming together
with increasing focus on standardization and interoperability, even
as the cost of modules, chipsets and software is trending down.
It is important to understand the different possible gateways and
business models into the smart home from broadband and wireless
providers, utility companies, consumer electronics manufacturers,
retail outlets, to traditional security and home automation suppliers, distributors and dealers. It is also important to differentiate the
different dynamics between the luxury homes segment versus the
mainstream, as well as the complexities involved in retrofit of existing housing stock, versus new home construction. Companies also
have to strategize whether they wish to offer standalone smart homes
technologies, or move towards multifunction whole-home systems.
For the last couple of years, many home automation companies
have struggled. Part of the reason is that the convenience and
Berg Insight forecasts that worldwide revenues from shipments of
home automation systems will grow at a compound annual growth
rate (CAGR) of 33 percent from US$ 2.3 billion in 2010 to nearly
US$ 9.5 billion in 2015. These numbers include all 3 categories of
home automation: professionally installed, Do-It-Yourself (DIY) and
the more recent category systems installed by broadband and utility
service providers. Significant revenue contributions will come from
retrofit of existing homes, both luxury and mainstream. The home
automation industry is also opening up a new potential market for
cellular M2M devices and services. Berg Insight forecasts that the
number of cellular connections used by home automation systems
worldwide will grow at a compound annual growth rate of 85.6 percent from 0.25 million in 2010 to 5.5 million connections in 2015.
The vast majority of these are security and access control systems.
Shipments of cellular M2M communication units for home automation systems are forecasted to grow from 0.2 million units in 2010 to
1.8 million units in 2015.
What is the mix of smart home technologies in new
homes versus existing homes?
How are regulatory initiatives shaping the market?
What are the main drivers behind growth in the
Americas, Europe and Asia-Pacific?
Revenues (US$ Billion)
10
What are the main challenges and roadblocks towards
widespread adoption?
8
Which are the main verticals within smart homes and
home automation?
6
What are the business models and channels-to-market
of smart home vendors?
4
2
0
comfort functions offered by HA systems are not critical or essential
and thus suffer when the financial and economic picture is gloomy.
A second reason is that the best time to install a HA system is during
new home construction, but new construction has been at a virtual
standstill in many regions. Usually the large homes segment is immune to economic fluctuations, but this time the malaise has been
so widespread that even the high-end segments have been affected.
There will continue to be short-term challenges for the HA industry.
The economic and housing gloom could stretch out much longer
than currently envisaged. Other challenges include lack of awareness of HA offerings and the fact that consumers in many segments
do not see a strong reason for HA systems. The costs involved in
terms of equipment, installation and ongoing maintenance and service, are all perceived as deterrents. However, there are signs of economic growth and increased residential construction in many parts
of the world. In addition, new initiatives such as Google’s Android@
Home can bring increased consumer awareness of HA systems and
facilitate interoperability between equipment from multiple vendors.
Year
2010
2011
2012
2013
2014
2015
Total annual home automation installation revenues (World 2010–2015)
What is the relevance of wireless technologies in home
automation?
How will the global smart home market evolve in the
next decade?
Table of Contents
1 Smart homes, connected
homes and home automation
1.1 Introduction
1.2 Types of home automation
1.2.1 Energy management and climate
control systems
1.2.2 Security and access control systems
1.2.3 Lighting, windows and appliance
control systems
1.2.4 Audio-visual and entertainment
systems
1.2.5 Healthcare systems and home
monitoring
1.2.6 Pool, spa control, sprinkler, fountains
and miscellaneous
1.2.7 Multifunction and whole-home home
automation systems
1.3.1 Market drivers
1.3.2 Market barriers
2 Home automation
market segments
2.1 The custom (luxury) segment
2.1.1 The luxury segment is not immune to
recessions
2.1.2 Customer identification methods
2.2 Mainstream (production) segment
2.2.1 Single-family detached homes
2.2.2 Multi-family dwelling units (MDUs)
2.3 New homes versus existing homes
2.3.1 The new home HA segment is affected
by the fall in new home construction
2.3.2 The existing home market is the growth
segment
3 The housing industry
3.1
3.1.1
3.1.2
3.1.3
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7
3.3.8
3.3.9
The North American housing market
Canada
Mexico
USA
The European housing market
France
Germany
Italy
The Netherlands
Spain
Sweden
UK
The Asia-Pacific housing market
Australia
China
Hong Kong
India
Japan
Korea
New Zealand
Russia
Singapore
4 Technology overview
4.1
4.1.1
4.1.2
4.1.3
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.2.5
Cellular network technologies
GSM/HSPA networks
CDMA networks
LTE networks
Connectivity and interoperability
standards
Ethernet
HomePlug
HomePNA
CEBus
LonWorks
4.2.6 X10
4.2.7 INSTEON
4.2.8 Universal Powerline Bus (UPB)
4.2.9 Zigbee
4.2.10 Z-Wave
4.2.11 Wi-Fi
4.2.12 Infrared
4.3 Industry associations
4.3.1 CABA
4.3.2 CEA
4.3.3 CEDIA
5 Channels to market and
business models
5.1
5.1.1
5.1.2
5.2
5.2.1
5.2.2
5.3
5.3.1
5.3.2
5.4
5.4.1
5.4.2
Professional installation
Dealer/installer/system integrators
New home builders
Retail
Mainstream stores
Online
Service providers
Broadband service providers
Utility service providers
Business models
Selling prices
Labour costs and margins
6 Market forecasts
6.1 Market analysis
6.2 Cellular M2M connections and
module shipments
6.3 Smart homes and home automation
forecasts – North America
6.3.1 Custom and luxury home segment
6.3.2 Mainstream single-family home
segment
6.3.3 MDU segment
forecasts – Europe
6.4.1 Custom and luxury home segment
6.4.2 Mainstream single-family home
segment
6.4.3 MDU segment
forecasts – Asia-Pacific
6.5.1 Luxury home segment
6.5.2 Mainstream home segment
6.5.3 MDU segment
7 Company profiles
7.1 Multifunction and whole-home
automation system vendors
7.1.1 AMX
7.1.2 Automated Living
7.1.3 Colorado vNet
7.1.4 Control4
7.1.5 Cortexa
7.1.6 Crestron Electronics
7.1.7 Element Controls
7.1.8 ELK Products
7.1.9 Exceptional Innovation
7.1.10 Global Caché
7.1.11 4Home
7.1.12 Home Automation Inc
7.1.13 iControl Networks
7.1.14 iTouch
7.1.15 Lagotek
7.1.16 Mi Casa Verde
7.1.17 Perceptive Automation
7.1.18 RTI
7.1.19 Savant Systems
7.1.20 Simply Automated
7.1.21
7.1.22
7.1.23
7.1.24
7.1.25
7.2
7.2.1
7.2.2
7.2.3
7.2.4
7.2.5
7.2.6
7.2.7
7.2.8
7.2.9
7.3
7.3.1
7.3.2
7.3.3
7.3.4
7.3.5
7.3.6
7.3.7
7.3.8
7.3.9
7.4
7.4.1
7.4.2
7.4.3
7.4.4
7.4.5
7.4.6
7.4.7
7.4.8
7.4.9
7.4.10
7.4.11
7.4.12
7.4.13
7.4.14
7.4.15
7.4.16
7.4.17
7.4.18
7.4.19
7.4.20
7.4.21
7.4.22
7.4.23
7.4.24
7.4.25
7.4.26
7.5
7.5.1
7.5.2
7.5.3
7.5.4
7.5.5
7.5.6
7.5.7
7.5.8
7.5.9
7.5.10
7.5.11
7.5.12
7.5.13
2GIG Technologies
Vantage Controls
Vivint
Xanboo
X10
Security and access control system
vendors
ABB
ADT
Alarm.com
ASSA ABLOY
FortrezZ
Ingersoll Rand
Schneider Electric
System Sensor
Wayne-Dalton
Lighting and window control system
vendors
Am-Source International
BTX Window Automation
CentraLite
Electronic Solutions
Leviton
Lutron
Powerline Control Systems
Skyco
Somfy
Audio-visual and entertainment
system vendors
Actiontec Electronics
Atlona Technologies
AVC Group
BDI
Channel Vision Technology
Classé Audio
Cinemar Solutions
ConnectGear
Draper
D-Link
Envive
Fluid Digital
Gefen
Groov Audio
Harman
Kaleidescape
Krell Industries
Linn
Marantz
Naim
Runco
Russound
Sonos
SpeakerCraft
Universal Electronics
Universal Remotes
Energy management and climate
control system vendors
AlertMe
Blue Line Innovations
Cisco
Grid Net
Intermatic
Intwine Energy
Invensys
Portus
RCS Technology
Simple Control
Tendril
Universal Devices
Web Mountain
Glossary
M2M Research Series
Car Telematics
and Wireless M2M
Car Telematics and Wireless M2M is the fifth consecutive
report analysing the latest developments on the European
market.
with 150 pages of unique business intelligence including 5-year
industry forecasts and expert commentary on which to base your
business decisions.
Understand the dynamics of the European car telematics
industry.
Learn about the telematics strategies of the technology
leading car manufacturers.
Evaluate the likelihood for eCall to become operational in
2014-2015.
Identify the leading providers of aftermarket vehicle tracking
solutions and connected PNDs.
Realise the potential importance of motor insurance
providers in the telematics value chain.
Profit from valuable insights about the most successful
business and technology propositions on the market.
Order now!
www.berginsight.com
M2M Research Series
Where is the European
telematics market headed?
Telematics is a broad term that may be applied to a wide range of
automotive IT solutions. Berg Insight’s definition of a car telematics
solution in this report is an automatic system designed for passenger cars which incorporate some form of wireless communication
via a wide area network. The history of car telematics can be traced
back to the first stolen vehicle tracking systems based on RF communication using unlicensed frequency bands, which appeared
on the market in the 1980s. Subsequently mobile networks have
enabled true online connectivity with two-way communication at the
same time as GPS technology has been commoditised to the extent
that high-accuracy satellite positioning can be integrated into virtually any device. Today a standard telematics unit features GPRS,
GPS and frequently also some kind of interface to the electronics
systems of the vehicle. This kind of device may be used as a platform for one or several types of applications.
Several categories of car telematics applications are today offered on
a commercial basis. These include eCall and driver assistance, SVR,
connected navigation, motor insurance telematics, road charging,
leasing and rental fleet management and vehicle diagnostics. eCall
and driver assistance applications deliver value in the form of improved safety and better convenience when travelling. SVR facilitates
recovery of the car in case of theft and frequently entitles the owner
to insurance benefits. Connected navigation enables access to up-todate map data and other online services. Motor insurance telematics
combines SVR with innovative business models such as PAYD (PayAs-You-Drive). Road charging is gaining momentum as a new method
for financing privately operated motorways, raising tax revenues and
tackling congestion. Leasing and rental fleet management gives owners better control over hired-out vehicles and enables new forms of
contracts. Vehicle diagnostics allows car manufacturers, dealers and
workshops to improve their service offering to car owners.
Berg Insight estimates that total shipments of car telematics systems in
EU27+2 reached 0.85 million units in 2009. Growing at a compound
annual growth rate of 35.0 percent, the shipments are expected to
reach 1.6 million units in 2011. During the same period the number of
active telematics service subscribers is forecasted to grow at a compound annual growth rate of 23.1 percent from 3.5 million subscribers
in 2009 to 5.4 million in 2011. From 2012, Berg Insight expects a sharp
increase of OEM systems in preparation for the full scale introduction of eCall. By 2015 the pan-European safety system is anticipated
to generate shipments of about 15 million OEM telematics units and
push the total number of active subscribers to 28.7 million in 2015.
Already in 2012 OEM systems are forecasted to catch up with aftermarket systems in terms of shipments and active subscribers. eCall
and other OEM initiatives are also expected to curb the growth for
aftermarket systems.
Until now OEM telematics propositions have so far largely failed to
make a significant impression on the European market. Availability is
still restricted to a handful of brands and models on selected markets.
PSA and BMW are still the most active players in the market, bundling
telematics services with navigation, audio and Bluetooth handsfree
products. Recently they have upgraded and extended their offerings
to cover most of Western Europe. PSA was also the first car manufacturer to have introduced an eCall device as a standard feature on selected models from 2010. Fiat, Volvo Cars and premium brands such
as Porsche, Jaguar and Land Rover have also been active on the market for some time. In late 2011, Berg Insight anticipates that additional
brands will launch OEM telematics solutions on the European market
in response to the eCall intiative within the EU. The European Commission has a strong commitment to introducing eCall as a standard
feature in all new cars and recently set 2014 as the new target date for
realising this vision – through regulations if nessecary.
The aftermarket telematics market is now recovering from the economic crisis. Particularly SVR product sales are linked to the demand
for exclusive cars and were affected by lower car sales in this segment
during 2009. The adoption of motor insurance telematics has slowed
down somewhat as the initial success in Italy proved difficult to transfer
to additional markets. Insurance providers are however now established as an important distribution channel for aftermarket telematics
providers in a number of countries and Octo Telematics, which first
developed it, is firmly established as the leading supplier.
What are the dynamics behind developments in the
European car telematics industry?
What is the current status of the eCall initiative?
What are the latest developments on innovative road
charging schemes in Europe?
Million units
20
Why is motor insurance telematics successful in Italy?
15
What are the main trends on the connected navigation
market?
10
How is RF tracking technology standing up against
GSM/GPS?
Who are the leading providers of aftermarket vehicle
tracking solutions?
5
0
Year
2009
2010
2011
2012
2013
2014
2015
Shipments of car telematics units (Europe 2009–2015)
How is the OEM telematics value chain evolving?
What are the current car telematics propositions from
Europe’s main car brands?
Table of Contents
1 Passenger cars in Europe
1.1
1.2
1.3
1.4
1.5
1.5.1
1.5.2
1.5.3
1.6
1.6.1
1.6.2
Introduction
Car manufacturers
Leasing and rental companies
Motor insurance
Emergency services and assistance
providers
PSAP and SOC organisations
Assistance providers
Automobile clubs
Passenger cars and the environment
Electric vehicles
Hybrid electric vehicles
2 Car telematics solutions
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
Car telematics infrastructure
Vehicle segment
Tracking segment
Network segment
Service segment
Car telematics applications
eCall and roadside assistance
Stolen vehicle recovery
Motor insurance telematics
Leasing and rental fleet management
Vehicle diagnostics
Electronic toll collection and congestion
charging
2.2.7 Connected navigation
2.3 Electric vehicles versus conventional
vehicles
2.4 Aftermarket solutions versus OEM
solutions
3.1 Car telematics market forecast
3.2 Application trends
3.2.1 eCall: The EC sets 2014 as new target for
pan-European introduction
3.2.2 SVR: Declining price advantage for RF
tracking against GSM/GPS
3.2.3 Motor insurance telematics: Spreading
across Europe
3.2.4 Connected navigation: Low-cost factory-fit
OEM solutions
3.2.5 Road charging: Privacy concerns may block
online satellite tracking systems
3.2.6 CRM: Telematics will be used to drive a
connected CRM strategy for OEMs
3.3 Value chain analysis
3.3.1 Aftermarket solution providers
3.3.2 OEM solution providers
3.3.3 Car brands and dealers
3.3.5 Continued consolidation trends in the
aftermath of the financial crisis
3.4 Future industry trends
4 Aftermarket vehicle
tracking solutions
4.1 Value chain overview
4.2 Aftermarket vehicle tracking solution
providers
4.2.1 AutoGuard
4.2.2 Autotxt
4.2.3 Cesar Satellite
4.2.4 Cobra Automotive Technologies
4.2.5 Detector
4.2.6 MetaSystem
4.2.8
4.2.9
4.2.10
4.2.11
4.2.12
4.2.13
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
SECAR
TRACKER Network
Traqueur
Trafficmaster
Viasat Group
Other vehicle tracking vendors
Insurance industry telematics initiatives
Italy: Motor insurance providers adopt
telematics to combat theft and fraud
Spain: MAPFRE offers YCar targeting 18–30
year olds
United Kingdom: Coverbox PAYD has fitted
7,500 cars after one year
United Kingdom: Insure the Box new entrant
with PAYD scheme
United Kingdom: Thatcham CAT 5 and TQA
vehicle security standards
5 OEM telematics solutions
5.1 Value chain overview
5.2 Automotive suppliers
5.2.1 Actia
5.2.2 Continental Automotive Group
5.2.3 Delphi Automotive
5.2.4 Denso
5.2.5 Magneti Marelli
5.3 Telematics service providers
5.3.1 Airbiquity
5.3.2 Altea
5.3.3 ATX Group
5.3.4 Connexis
5.3.5 Eurowatch
5.3.6 Hughes Telematics
5.3.7 IMA
5.3.8 Octo Telematics
5.3.9 Tema.Mobility
5.3.10 WirelessCar
5.4 OEM telematics propositions
5.4.1 BMW
5.4.2 Fiat Group
5.4.3 Ford
5.4.4 Jaguar and Land Rover
5.4.5 Mercedes-Benz
5.4.6 Porsche
5.4.7 PSA Peugeot Citroën
5.4.8 Volvo Car
6 Connected navigation devices
6.1 Introduction
6.2 In-dash connected navigation solution
providers
6.2.1 TomTom and Renault
6.2.2 TomTom and Fiat
6.2.3 TomTom collaborations with Sanyo and
Sony
6.2.4 Aisin AW and Toyota
6.2.5 Masternaut
6.2.6 Trafficmaster
6.3 Connected PND solution providers
6.3.1 TomTom
6.3.2 Garmin
6.3.3 MiTAC International
6.3.4
6.3.5
6.3.6
6.3.7
6.3.8
6.4
Navigon
Medion
MyGuide Americas
Coyote System
Mobile Devices
Mobile navigation services
7 The European eCall initiative
7.1 Regulatory process
7.1.1 Activities of DG eCall and other working
groups
7.1.2 Actions by the EC and EU Member States
7.1.3 Stakeholder positions on eCall
7.2 eCall functional specifications and standardisation
7.2.1 IVS functional specifications
7.2.2 MSD transport mechanism
7.2.3 PSAP requirements
7.3 Case studies
7.3.1 Germany: ADAC performs international
feasibility trial of eCall
7.3.2 United Kingdom: National PSAPs support
private eCall services
7.3.3 United States: GM OnStar provides
emergency call service to 6 million cars
8 Road charging for passenger cars
8.1 Overview of ETC technologies
8.1.1 Automatic Number Plate Recognition
(ANPR)
8.1.2 Dedicated Short Range Communication
(DSRC)
8.1.3 GPRS/GPS
8.2 ETC charging concepts
8.3 Interoperability of ETC systems
8.4 Future developments and trends
8.5 Case studies
8.5.1 The national truck tolling scheme in
Slovakia launched in January
8.5.2 Toll Collect in Germany generated revenues
of € 4.4 billion in 2009
8.5.3 Road pricing in Stockholm successful in
cutting congestion
8.5.4 Planning for a nationwide road charging
rollout in the Netherlands
8.5.5 The London congestion charge generates
yearly revenues of € 367 million
8.6 Road charging solution providers
8.6.1 Autostrade
8.6.2 EFKON
8.6.3 GMV
8.6.4 Kapsch TrafficCom
8.6.5 Q-Free
8.6.6 Sanef Group
8.6.7 Satellic Traffic Management
8.6.8 Skymeter
8.6.9 Thales
Glossary
LBS Research Series
Location-Based
Advertising and Marketing
Location-Based Advertising and Marketing is a
comprehensive report from Berg Insight analysing
the latest developments on the location-targeted
advertising market worldwide.
This strategic research report from Berg Insight
provides you with 170 pages of unique business
intelligence including 5-year industry forecasts
and expert commentary on which to base your
business decisions.
Identify tomorrow’s most profitable LBA
opportunities in the mobile space.
Understand the fundamentals of the ad-based
mobile media revenue models.
Recognise the key enablers of growth in the LBA
market.
Comprehend the relative importance of digital
channels compared to other advertising media.
Learn about the experiences of LBA campaigns
by top global brands.
Profit from valuable insights about LBA business
models.
Order now!
Berg Insight’s LBS Research Series
What are the real business opportunities for LBS on the global market? Berg
Insight’s LBS Research Series is a unique series of market reports published on
a quarterly basis. Each title offers detailed analysis of the most interesting LBS
topics such as handset-based satellite positioning technology, mobile personal
navigation services and location-enabled content services. Once per year we also
publish a summary of our research with detailed forecasts for the major regions.
www.berginsight.com
LBS Research Series
Location-targeting releases the full
potential of the mobile channel
The mobile channel is getting established as an integral part of the
marketing media mix, a process which is eased by the booming smartphone adoption and increasing mobile media consumption. One of
the key developments in mobile advertising is the increasing integration of location-sensitivity, which releases the full potential of the mobile
channel. A notable divide can be made between static and real-time
location-based advertising (LBA). Targeting by static variables involves
using information which is part of specific user profiles such as place of
residence and work. Real-time location targeting instead uses location
information which is gathered when an ad is delivered to a mobile user.
Such location-based advertising programs and campaigns leverage the
same type of technologies to determine user location as other locationbased services (LBS). Common methods include GPS, Cell-ID and WiFi positioning which are all based on real-time information.
Targeting by location in combination with other contextual and behavioural segmentation greatly enhances the relevance of mobile advertising. It has been demonstrated that location-targeted ads generate
considerably higher return than conventional mobile advertising, and
the associated eCPM levels are several times higher. Berg Insight estimates that the total global value of the real-time mobile LBA market
was € 192 million in 2011, representing 5.0 percent of the total mobile
ad spend. Growing at a compound annual growth rate of 90.9 percent,
the real-time LBA market is forecasted to be worth € 4.9 billion in 2016,
corresponding to 28.3 percent of all mobile advertising and marketing.
This means that location-based advertising and marketing will represent
more than 4 percent of digital advertising, or 1 percent of the total global
ad spend for all media. Asia-Pacific is estimated to be the largest LBA
market in 2016, followed by Europe and North America.
Key drivers for LBA include the growing attach rates of location technologies in handsets, as well as the increasing consumer acceptance
of LBS in general. Local advertising is further a major market, and LBA
opens up the mobile channel for new advertisers such as local merchants. The fact that location targeting has higher performance has
moreover induced premium rates for publishers and developers. The
main barriers to adoption are related to the inherently limited reach of
LBA which acts as a mental hurdle for advertisers. Education of advertisers and new methods for campaign performance evaluation are thus
called for. Privacy issues can further not be ignored, but can be
beneficially handled by privacy control options beyond simple opt-in
mechanisms. The demand for hyper-local targeting of ads is so far limited among advertisers, but is bound to increase given the considerable
impact such campaigns generate.
The LBA value chain is still forming and there are a large number of
players involved in the ecosystem. The industry is fragmented and has
not yet reached maturity. Many different companies are involved, ranging from LBA specialists such as Placecast, xAd and LEMON Mobile,
to operators including SFR, AT&T and O2, and LBS players such as
Telmap, TeleNav and Waze. There is furthermore an abundance of location-aware applications and media which serve geo-targeted ads, with
examples such as WHERE, Loopt and Shopkick. Included in the marketplace are moreover coupons and deals providers including Yowza!!,
GeoAd and COUPIES, search solutions such as Poynt and Qype, and
proximity marketing providers like Qwikker, Proximus Mobility and
Scanbuy. A number of traditional mobile advertising players are also
active in the LBA space, for example Millennial Media, Madvertise and
Nexage, as well as major digital and telecom players such as Google,
Apple and Nokia.
There are a number of key takeaways from the latest developments in
LBA. It has been established that location-targeting improves the effectiveness of mobile marketing campaigns, and greater shares of ad
budgets are devoted to LBA among marketers. It is however crucial to
ensure sound opt-in procedures and individual privacy measures for
consumers. Location is further only one of many components in successful targeting, and marketers must also strive to leverage other contextual and behavioural information. High-precision real-time geotargeting is today sparsely used, and rightly so as most campaigns do not
require targeting with an accuracy of a few meters. Hyper-local campaigns are nevertheless becoming more common. Current important
high-volume LBA formats include mobile search and SMS campaigns.
Berg Insight however anticipates that geotargeting gradually will become ubiquitous and available across the entire mobile channel.
In what ways can location technology improve the relevancy of
mobile advertising?
What are the experiences from mobile LBA campaigns so far?
How should mobile LBA be integrated in the marketing media
mix?
€ million
5000
Which categories of companies can leverage mobile locationbased advertising?
4000
Which are the LBA specialists that stand out of the crowd?
3000
How are mobile operators such as AT&T, Telefónica and SFR
approaching LBA?
2000
How are traditional mobile advertising players and major digital
and telecom players positioning themselves in this market?
1000
How well suited for LBA are different existing and future mobile
media channels?
0
Year
2010
2011
2012
2013
2014
2015
2016
LBA revenue forecast, € million (Worldwide 2010–2016)
Which are the main drivers and barriers affecting the mobile
LBA market?
Table of Contents
1 Advertising and the mobile
channel
Advertising and digital media
The marketing and advertising industry
The Internet media channel
The mobile media channel
Mobile advertising and marketing
The mobile handset as an advertising
platform
1.2.2 Advertising on the mobile handset
1.2.3 The mobile advertising ecosystem
1.3 Mobile media channels and formats
1.3.1Messaging
1.3.2 Mobile web advertisement
1.3.3 Mobile applications
1.4 Mobile marketing industry overview
1.4.1 Factors influencing the potential
market value of mobile advertising
1.4.2 Current state and future trends
1.1
1.1.1
1.1.2
1.1.3
1.2
1.2.1
2 Mobile location technologies
and services
2.1 Mobile network location
architectures and platforms
2.1.1 Location architecture for GSM/UMTS
networks
2.1.2 Location architecture for LTE networks
2.1.3 Control Plane and User Plane location
platforms
2.1.4 Probe-based location platforms
2.2 Mobile location technologies and
methods
2.2.1Cell-ID
2.2.2 Enhanced Cell-ID
2.2.3 RF Pattern Matching
2.2.4 E-OTD, OTDOA and U-TDOA
2.2.5 GNSS: GPS, GLONASS, Galileo and
Compass
2.2.6 Bluetooth, NFC and Wi-Fi positioning
2.2.7 Hybrid, mixed mode and indoor
location technologies
2.2.8 Theoretical limitations of positioning
technologies
2.3 Overview of mobile location-based
services
2.3.1 Mapping and navigation
2.3.2 Local search and information
2.3.3 Social networking and entertainment
2.3.4 Recreation and fitness
2.3.5 Tracking services
3 Mobile location-based
advertising and marketing
3.1 Definitions and variants of LBA
3.1.1 Static versus real-time locationtargeting
3.1.2 Push and pull LBA
3.1.3 LBA formats
3.2 Market receptiveness
3.2.1 Advertiser adoption
3.2.2 Outcomes of different LBA strategies
3.2.3 Consumer attitudes
3.2.4 Privacy concerns
3.3 Case studies
3.3.1 The North Face drives foot traffic with
LBA program delivered by Placecast
3.3.2 Operator Zain Kuwait enters the LBA
space with AdZone platform
3.3.3 SPH a pioneer in location-based
advertising in Singapore
3.3.4 LBA solution from NAVTEQ delivers
impressive results for McDonald’s
3.3.5 VW engage in Wi-Fi-based marketing
through JiWire
3.3.6 Boloco taps SCVNGR to encourage
repeat visits
3.3.7 Expedia creates award winning
location-based mobile website using
HTML5
3.3.8 McDonald’s engages customers in
billboard games
3.3.9 MINI’s location-based reality game
attracts thousands of players
3.3.10 Rovio introduces a location-dimension
to the Angry Birds game
3.3.11 QderoPateo and Kommunity Kiosk
enable Bluetooth marketing at hotels
3.3.12 Movie theatre chain partners with
ChaCha to promote Twilight premiere
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5
4.1.6
4.1.7
4.1.8
4.1.9
4.1.10
4.1.11
4.2
4.2.1
4.2.2
4.2.3
4.3
4.3.1
4.3.2
4.4
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6
LBA industry analysis
Classification of LBA offerings
LBA specialists
Mobile operators
LBS and navigation providers
Location-aware applications and
media
Mobile coupons and deals providers
Mobile search providers
Proximity marketing providers
Traditional mobile advertising players
Major digital and telecom players
Mergers and acquisitions
LBA landscape trends
Drivers for success
Barriers to adoption
Overcoming the barriers
Market forecasts
Total, digital and mobile advertising
market value forecasts
LBA market value forecast
Final conclusions
Location filtering improves the
effectiveness of mobile marketing
campaigns
Greater shares of ad budgets devoted
to LBA among marketers
Location is but one of many valuable
opt-in variables
High-precision real-time geotargeting
is sparsely used
Mobile search and SMS campaigns
are important high-volume LBA
formats
Location-targeting will eventually
become ubiquitous
5 Company profiles and
strategies
5.1 LBA specialists
5.1.1AdMoove
5.1.2Chalkboard
5.1.3 CityGrid Media
5.1.4 LEMON Mobile
5.1.5Placecast
5.1.6xAd
5.1.7Xtify
5.1.8YOOSE
5.2 Mobile operators
5.2.1 AT&T Mobility
5.2.2 Orange Group
5.2.3SFR
5.2.4 Telefónica Group
5.3 LBS and navigation providers
5.3.1 Appello Systems
5.3.2Intersec
5.3.3TeleNav
5.3.4Telmap
5.3.5TomTom
5.3.6 Waze Mobile
5.4 Location-aware applications and
media
5.4.1Foursquare
5.4.2Loopt
5.4.3Shopkick
5.4.4WHERE
5.5 Mobile coupons and deals providers
5.5.1COUPIES
5.5.2GeoAd
5.5.3Groupon
5.5.4ThinkNear
5.5.5Yowza!!
5.6 Mobile search providers
5.6.1 Mobile Commerce
5.6.2Poynt
5.6.3Qype
5.6.4 Yell Group
5.7 Proximity marketing providers
5.7.1 BLIP Systems
5.7.2 Proximus Mobility
5.7.3Qwikker
5.7.4Scanbuy
5.8 Traditional mobile advertising
players
5.8.1InMobi
5.8.2Jumptap
5.8.3Madvertise
5.8.4 Millennial Media
5.8.5Nexage
5.8.6Sofialys
5.9 Major digital and telecom players
5.9.1Apple
5.9.2Facebook
5.9.3Google
5.9.4Microsoft
5.9.5Nokia
5.9.6Yahoo!
Glossary
LBS Research Series
Mobile Navigation
Services and Devices
Mobile Navigation Services and Devices is the fifth
developments on the global PND and mobile turn-by-turn
navigation market.
This report in the LBS Research Series provides you with
Profit from 30 new executive interviews with market leading
companies.
Understand the dynamics of the navigation markets in
Europe, North America and ROW.
Benefit from expert market analysis including detailed
regional forecasts.
Learn about the latest mobile navigation propositions from
device vendors and service providers.
Comprehend how navigation applications can integrate with
other location-based services to improve the user experience.
Evaluate the impact of free navigation applications and
evolving new business models.
Identify new business opportunities in connected services
and real-time traffic information.
Order now!
What are the real business opportunities for LBS on the global market? Berg Insight’s
LBS Research Series is a unique series of market reports published on a quarterly
basis. Each title offers detailed analysis of the most interesting LBS topics such as
handset-based satellite positioning technology, mobile personal navigation services
and location-enabled content services. Once per year we also publish a summary of
our research with detailed forecasts for the major regions.
www.berginsight.com
LBS Research Series
What are the latest developments
on the personal navigation market?
Navigation systems and services for car and pedestrian navigation can
be divided into multiple categories. Car manufacturers offer factory
installed in-dash navigation systems as standard or optional equipment
on a majority of their models sold in developed markets. Drivers that
want to add navigation to their existing vehicle can choose among a
number of aftermarket solutions. Examples include in-dash navigation
systems, Personal Navigation Devices (PNDs) and navigation apps
for mobile phones. New device categories such as Internet tablets are
also being equipped with GPS and navigation software. At the end
of 2011, there were 340 million navigation systems in use worldwide,
including an estimated 60 million factory installed and aftermarket indash navigation systems, about 150 million PNDs and an estimated
130 million navigation-enabled mobile phones.
Even though the share of new cars fitted with factory installed in-dash
navigation systems will grow fast as prices decline, the actual penetration
of in-dash navigation systems will grow slowly. The average age of
vehicles in North America and Europe has grown to about 9 years and is
even higher in most other markets. Aftermarket navigation solutions will
thus account for a majority of navigation systems sold in the foreseeable
future. Since the different solutions are tailored for slightly different usecases, multiple navigation-capable device solutions can be expected to
co-exist in the future. Many consumers are also likely to use more than
one category of navigation capable device.
In many developed markets such as Europe and North America where
the PND penetration is already high, the PND device category is facing
increasing competition from handset-based navigation services and
low cost in-dash navigation systems. Worldwide shipments of PNDs
fell to about 33 million units in 2011, down from nearly 38 million in
2010. Berg Insight believes that PND shipments in Europe and North
America have peaked and will gradually decline to about 7 and 6 million
units per annum respectively in 2016. New markets in other parts of the
world will only partly compensate for the decline in the mature markets.
Worldwide shipments of PNDs are forecasted to gradually decline to 23
million units in 2016.
Increasing competition has already forced several vendors to exit the
PND segment – either in the most competitive markets or altogether.
There is also a consolidation trend among the remaining PND vendors.
MiTAC has acquired the PND operations of Navman and the assets
Million
Active navigation app users
Today, handset navigation solutions are primarily available as on-board
apps with map data stored in the memory of the handset and off-board
services that rely on maps stored on a server. Over time, many solutions
will converge into hybrid services that store frequently used maps in the
internal memory and leverage wireless connectivity to access dynamic
content. The main distribution channels for handset navigation apps
include mobile network operators, handset vendors and on-device
application stores. Free turn-by-turn navigation services have been
available for several years from niche players, but the launch of Google
Maps Navigation for Android handsets in late 2009 and Nokia Maps
with free navigation in early 2010 started a major transformation of the
handset navigation market in both Europe and North America. Whitelabel navigation developers are now working with mobile operators to
create unique localised offerings and service bundles. Increasingly,
navigation service providers are focusing on the freemium business
model where the core turn-by-turn navigation service is free and users
have the option to purchase additional content and features.
How are business models for PNDs and mobile navigation services evolving?
What impact has free navigation services had on the
personal navigation market?
Will turn-by-turn navigation services for mobile phones
replace portable navigation devices?
Installed base of PNDs
250
Which are the leading developers of turn-by-turn navigation applications for mobile phones?
200
150
Which mobile operators have introduced mobile turnby-turn navigation services?
100
50
0
The adoption of handset-based navigation apps and services is
increasing along with the popularity of smartphones. The global active
installed base of smartphones surpassed 700 million units at the
2011, which is approximately 15 percent of all mobile phones in use.
Berg Insight forecasts that smartphone shipments will grow from an
estimated 450 million units in 2011 to 1,300 million units in 2016. In
the future, virtually all GPS-enabled handsets can be expected to have
mapping and navigation software as part of the standard feature set.
How are device manufacturers positioning themselves
on the growing mobile navigation market?
350
300
of the consumer product division of Magellan Navigation. Garmin
completed the acquisition of Navigon in July 2011. United Navigation,
which began operations in early 2010, has licensed the rights to use
the Falk and Becker brands for navigation solutions. The PND market
is now dominated by the three vendors Garmin, TomTom and MiTAC
that together maintain a 75 percent market share. These companies
have highly integrated operations ranging from hardware and software
development to distribution. Moreover, these companies are now
increasingly focusing on in-dash navigation systems.
Year
2010
2011
2012
2013
2014
2015
2016
Installed base of PNDs and active mobile turn-by-turn navigation users
(World 2010–2016)
What will be the winning formula for connected PNDs
and associated services?
How will mobile navigation services evolve in the future?
Table of Contents
1 Personal navigation solutions
1.1 Vehicle fleets and navigation system
penetration
1.1.1 The European passenger car market
1.1.2 The North American passenger car and
light truck market
1.2 Overview of personal navigation
systems and services
1.2.1 Factory installed in-dash navigation and
telematics solutions
1.2.2 Aftermarket in-dash navigation systems
1.2.3 Personal Navigation Devices
1.2.4 Smartphones and mobile phones
1.2.5 Internet tablets and media players
1.3 PND categories and segments
1.3.1 Standalone car navigation PNDs
1.3.2 Embedded PNDs
1.3.3 Multimode and rugged PNDs
1.3.4 Truck PNDs
1.4 Handset-based navigation services
1.4.1 On-board navigation apps
1.4.2 Off-board navigation services
1.5 Navigation service distribution
channels and business models
1.5.1 Mobile network operators
1.5.2 Handset vendors
1.5.3 On-device app stores
1.5.4 Active handset navigation users
2 Map data and content
providers
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.1.7
2.1.8
2.1.9
2.1.10
2.1.11
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.2.6
2.2.7
2.2.8
2.2.9
2.2.10
2.2.11
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.3.6
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.4.5
2.4.6
2.4.7
Digital map data and image suppliers
NAVTEQ
TomTom Maps
AND
AutoNavi
Blom
CE Info Systems
DigitalGloble
GeoEye
Intermap Technologies
OpenStreetMap
ZENRIN
Traffic information services
Traffic information systems
RDS-TMC services
The VICS traffic information system
The TPEG standard
AirSage
Clear Channel Radio’s Total Traffic
Network
Decell
INRIX
Mediamobile
TrafficCast
Trafficmaster
Speed camera warning devices and
database providers
Coyote Systems
Cyclops
FoxyTag
Road Angel
RoadPilot
Wikango
Travel guide, POI data and weather
information providers
CustomWeather
Foreca
Fodor’s Travel
Langenscheidt
Mairdumont
NavX
ViaMichelin
2.4.8
2.5
2.5.1
2.5.2
2.5.3
Wcities
Directory publishers
PagesJaunes and Mappy
Truvo
Yell Group
3 Navigation software developers
3.1 Technology overview
3.1.1 On-board, off-board and hybrid
navigation software
3.1.2 Evolution of navigation software features
3.2 Vendor market shares
3.2.1 Handset navigation app market shares
in Europe
3.2.2 Handset navigation app market shares
in North America
3.3 Company profiles and strategies
3.3.1 ALK Technologies
3.3.2 Appello Systems
3.3.3 deCarta
3.3.4 Elektrobit
3.3.5 Fullpower Technologies
3.3.6 Google
3.3.7 GPS Tuner
3.3.8 Intrinsyc Software
3.3.9 Maction Technologies
3.3.10 Mireo
3.3.11 NavGuard
3.3.12 NaviExpert
3.3.13 Navitel
3.3.14 NAVITIME
3.3.15 Navmii
3.3.16 NDrive
3.3.17 NNG
3.3.18 PH Informatica
3.3.19 ROUTE 66
3.3.20 Skobbler
3.3.21 Sygic
3.3.22 TeleCommunication Systems
3.3.23 TeleNav
3.3.24 Telmap
3.3.25 UbiEst
3.3.26 Waze
3.3.27 Wikitude
3.3.28 Yapp Mobile
4 Mobile operator service
offerings
4.1 Navigation services from mobile
operators in North America
4.1.1 AT&T
4.1.2 Bell Mobility
4.1.3 MetroPCS
4.1.4 Rogers Wireless
4.1.5 Sprint Nextel
4.1.6 TELUS
4.1.7 Verizon Wireless
operators in Europe
4.2.1 Deutsche Telekom Group
4.2.2 Orange Group
4.2.3 SFR
4.2.4 Telefónica Group
4.2.5 Telekom Austria Group
4.2.6 TeliaSonera Group
4.2.7 Vodafone Group
operators in Asia Pacific
4.3.1 Country profile: Australia
4.3.2 Country profile: Japan
4.3.3 Country profile: South Korea
4.3.4 SingTel Group
4.3.5 Tata Indicom
4.3.6
4.4
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6
Vodafone New Zealand
Navigation services in other countries
Country profile: Israel
Country profile: South Africa
América Móvil
NII Holdings
Telefónica Latin America
Mobile TeleSystems
5 Device vendor profiles
5.1 PND market developments
5.1.1 PND feature evolution
5.1.2 Market consolidation
5.2 PND shipments and vendor market
shares
5.2.1 Shipments by geographical region
5.2.2 PND hardware revenues
5.3 PND vendor profiles and strategies
5.3.1 Garmin
5.3.2 Navigon
5.3.3 TomTom
5.3.4 MiTAC
5.3.5 Airis
5.3.6 AvMap
5.3.7 Mappy / Logicom
5.3.8 MEDION
5.3.9 Panasonic
5.3.10 Shinco
5.3.11 Sony
5.3.12 Thinkware Systems
5.3.13 UniStrong
5.3.14 United Navigation
5.4 Handset market developments
5.4.1 Smartphone evolution
5.4.2 Handset vendor market shares
5.4.3 Handset vendor navigation service
strategies
5.5 Handset vendor profiles and
strategies
5.5.1 Apple
5.5.2 HTC
5.5.3 LG Electronics
5.5.4 Motorola
5.5.5 Nokia
5.5.6 RIM
5.5.8 Sony Ericsson
6.1 Navigation industry trends
6.1.1 The total navigation system penetration
rate is still low globally
6.1.2 Low cost in-dash navigation systems
drive take rates
6.1.3 Evolution of handset navigation
distribution channels
6.1.4 Evolution of handset navigation
business models
6.2 Regional markets
6.2.1 The European mobile navigation
market
6.2.2 The European PND market
6.2.3 The North American mobile navigation
market
6.2.4 The North American PND market
6.2.5 The Rest of World mobile navigation
market
6.2.6 The Rest of World PND market
Glossary
LBS Research Series
Mobile Location-Based
Services
Mobile Location-Based Services is the sixth consecutive
report from Berg Insight analysing the latest developments on
the European and North American LBS markets.
This report in the LBS Research Series from Berg Insight
provides you with 140 pages of unique business intelligence
including 5-year industry forecasts and expert commentary
on which to base your business decisions.
Learn about the LBS strategies of major telecom operators
in Europe and North America.
Profit from 30 new executive interviews with market
leading companies.
Identify key players on the European and North American
mobile LBS market.
Understand the opportunities and challenges for locationbased advertising.
Benefit from valuable insights about the most successful
LBS propositions on the market.
Comprehend how location technologies affect the user
experience of LBS.
Predict future business opportunities for mobile industry
players in LBS.
Order now!
and location-enabled content services. Once per year we also publish a summary of
our research with detailed forecasts for the major regions.
www.berginsight.com
LBS Research Series
Business models for LBS shift to
freemium and advertising
Mobile location-based services (LBS) are gradually achieving
mainstream market acceptance. Popular service categories include
mapping and navigation, search and information, social networking
and entertainment, recreation and fitness as well as tracking. Mapping
and navigation is the leading segment in terms of revenues and the
second largest in terms of number of active users. Despite continued
growth of active users driven by rising adoption of smartphones,
revenues for mapping and navigation services are only growing slowly
as competition from free and low cost services has intensified. Whitelabel navigation developers are now working with mobile operators to
create unique localised offerings and attractive service bundles. Some
navigation service providers are focusing on freemium apps where
the core turn-by-turn navigation service is free and users have the
option to purchase additional content and features. Usage of search
and information services is growing fast as more subscribers adopt
mobile Internet services and handsets with improved capabilities.
Local search is now the leading LBS category in terms of unique users.
The popular social networking services are also experiencing rapidly
growing uptake from mobile users. Increasingly, these services add
various forms of location support.
Berg Insight estimates that the number of active users of locationbased services and apps more than doubled in 2011. At the end of the
year, about 20 percent of mobile subscribers in Europe are frequent
users of location-based services. In North America where adoption of
smartphones and GPS-enabled handsets is higher, an estimated one
third of all handset users now access location-based services regularly.
However, the significant growth in usage and number of active LBS
users have not yet resulted in substantial growth in revenues. Total
LBS service revenues in the EU 27+2 reached € 205 million in 2010
and Berg Insight forecasts LBS revenues to grow to about € 435 million
in 2016. In North America, revenues are forecasted to grow from
US$ 620 million in 2010 to an estimated US$ 710 million in 2016.
Ad-funding is already the main source of revenues in many consumer
LBS categories. Notable exceptions include the mapping and
navigation as well as tracking service categories where ad revenues
now account for less than 10 percent of total revenues. Along with
€ million
Historically, mobile operators have been key partners and the main
distribution channel for app and service developers. Operators have
had a unique position with a direct relationship with a large user
base, allowing them to market services, pre-install applications on
new handsets, present links to services from their portals and handle
end-user billing. This central role is now being challenged by the
rising smartphone ecosystems such as Android, iOS and Windows
Phone that in many cases integrate key location-based services
and give developers access to location data, distribution channels
in the form of on-device app stores as well as billing and advertising
solutions for monetisation. Developers can also access location data
from numerous independent Wi-Fi and cellular base station location
database providers. These location services are well suited for a range
of consumer-oriented services primarily targeting smartphone users.
Many operators are now opening their location platforms to third party
developers and location aggregators that play an important role as
intermediaries between mobile operators and developers. Networkbased location data is valuable for developers and third parties that
need to locate any device, not only GPS-enabled smartphones,
without the need to install a client app that collects location data
on each device. Most operators’ location platforms have a limited
capacity and operators therefore maintain relatively high prices for
each location look-up. This is a justifiable cost for services where a
successful location look-up adds significant value and the developer
can charge their customers accordingly. This is the case for a range
of enterprise and B2B services including asset tracking, workforce
management, authentication and fraud prevention.
What is the current status of the European and North American
mobile LBS market?
600
Europe
How are free navigation offerings affecting the market dynamics?
27+2 America
500
increasing usage and a maturing advertising ecosystem, ad revenues
will grow both in absolute terms and as a share of total revenues also in
the mapping and navigation segment. Many actors in the mobile value
chain show great interest in location targeted ads. Although location
can be a very valuable targeting attribute for some brands and campaigns, many other attributes are available that can be more relevant.
Moreover, several issues – such as user privacy and pricing of location
data – need to be resolved before location-based ad campaigns can
leave the trial stage and contribute significantly to overall revenues.
What are the mobile strategies of search engines and directory
publishers?
400
How is location technology used by mobile social networks and
communities?
300
200
How is GPS-technology altering the conditions for tracking
services?
100
Which operators have introduced branded location-based
services?
0
Year
2010
2011
2012
2013
2014
2015
2016
Mobile LBS revenue forecast, € million (2010–2016)
How is location being used to add value in mobile advertising?
Table of Contents
1 Introduction to location-based
services
1.1 Definition of mobile location-based
services
1.2 Mobile communication services
1.2.1 Mobile voice and SMS service
revenues
1.2.2 Mobile data and application revenues
1.2.3 Location apps and service revenues
1.3 Mobile LBS categories
1.3.1 Mapping and navigation
1.3.2 Local search and information
1.3.4 Recreation and fitness
1.3.5 Tracking services
1.3.6 Other services
1.4 Mobile app monetisation strategies
and business models
1.4.1 Free apps
1.4.2 Paid apps
1.4.3 Freemium apps and in-app payments
1.4.4 Ad-funding
1.4.5 New channel to market
1.4.6 Bundled products and services
1.4.7 Mobile app business model trends
platforms
1.5.1 Mobile network-based location
technologies
Compass
1.5.3 Hybrid and mixed mode technologies
1.5.4 Accuracy requirements for LBS
1.6 The regulatory environment in Europe
and North America
1.6.1 European emergency call and privacy
regulations
1.6.2 LBS regulatory environment in the US
1.6.3 Emergency call regulations in Canada
2 Smartphone ecosystems
2.1
2.1.1
2.1.2
2.1.3
2.1.4
2.1.5
2.1.6
2.2
2.2.1
2.2.2
2.2.3
2.2.4
2.2.5
2.3
2.3.1
2.3.2
2.3.3
Smartphone OS platforms
Android
iOS
Windows Phone 7
Symbian
BlackBerry OS and BBX
Samsung’s Bada platform
App stores
Android Market
Apple App Store
BlackBerry App World
Nokia Ovi Store
Windows Phone Marketplace
Ad networks and in-app ad solutions
Apple iAd
RIM BlackBerry Advertising Service
Microsoft Windows Phone 7 and
Microsoft Advertising
2.3.4 Nokia in-app advertising and NAVTEQ
Media Solutions
2.3.5 Google Admob
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.4.5
2.4.6
2.4.7
2.4.8
2.5
2.5.1
2.5.2
2.5.3
2.5.4
2.5.5
Leading smartphone vendors
Apple
HTC
LG Electronics
Motorola Mobility
Nokia
RIM
Samsung Electronics
Sony Ericsson
Industry analysis
New vertical silos
Towards a complete LBS stack
Operator strategies
Handset vendor strategies
The mobile web, HTML5 web apps and
native apps
3 Operator LBS offerings and
strategies
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
3.2.8
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.4
3.4.1
3.4.2
3.4.3
The European operator LBS market
3 Group
Deutsche Telekom Group
KPN Group
Orange Group
Telecom Italia Mobile
Telefónica Group
Telenor Group
TeliaSonera Group
Vodafone Group
The North American operator LBS
market
AT&T Mobility
Bell Mobility
MetroPCS
Rogers Wireless
Sprint Nextel
TELUS
T-Mobile USA
Verizon Wireless
Location aggregators and Locationas-a-Service providers
Deveryware
LOC-AID
Location Labs
Lociloci
Mobile Commerce
TechnoCom
Industry analysis
Organisational capabilities and goals
limit operator’s ability to provide LBS
Smartphone platforms challenge
operators’ central role
The rise of third party developers and
apps
4 Key LBS categories
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5
4.1.6
4.1.7
4.1.8
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
4.4
4.4.1
4.4.2
4.4.3
4.5
4.5.1
4.5.2
4.5.3
Mapping and navigation
Mapping and routing services
Traffic information services
Turn-by-turn navigation services
Mapping and navigation industry trends
Mobile operator service offerings
Handset vendor offerings
App stores and service providers
Key market players
Local search and information
Directory services
Local discovery and review services
Travel planning, guides and information
services
Shopping and coupon services
Social networking and entertainment
Social networking and community
services
Check-in services
Friendfinder services
Chat and instant messaging services
Location-based games
Recreation and fitness
Geocaching apps
Outdoor navigation
Sports tracking apps
Tracking services
Family locator services
Smartphone tracking apps
Enterprise tracking services
5.1 Summary of the LBS market
5.1.1 The European LBS market
5.1.2 The North American LBS market
5.2 Mobile advertising and location
5.2.1 Challenges and opportunities for mobile
advertising
5.2.2 Location can improve ROI for
advertisers
5.3 Vertical market trends
5.3.1 Mapping and navigation services
become free for end-users
5.3.2 Search and information services growth
driven by smartphone uptake
services gradually add location
5.3.4 Smartphones are increasingly used as
recreation and fitness devices
5.3.5 Corporate efficiency investments drive
tracking service revenues
Glossary
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Predict which location technologies will be deployed in the
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and location-enabled content services. Once per year we also publish a summary
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The global market for LBS platforms
and middleware to double in the next
5 years
Mobile location platforms enable mobile network operators to offer
location-based services (LBS). Location platforms typically comprise
software extensions to network infrastructure components that together
can calculate the position of a handset. Many mobile operators also deploy
location middleware that functions as a mediator between the location
platform, applications and support systems – and more importantly,
provides centralised control of privacy settings for all applications.
Mobile location platforms enable three categories of services: public
safety services, national security and law enforcement applications, as
well as commercial LBS. Nearly 70 percent of all emergency calls are
today placed from mobile phones and it can often be difficult for the
caller to convey their location accurately to first responders. Automatic
location platforms can reduce the time to find the location of the caller.
They also enable more efficient handling of simultaneous calls from
people reporting the same incident to distinguish single accidents from
multiple events. Another use area is public warning systems that can
locate and send messages to all mobile users within a geo-fenced area.
Government agencies can also use location platforms and data mining
systems for border security, critical infrastructure protection and locationenhanced lawful intercept.
LBS are services that in some way utilise the geographic location of a
handset, either to enhance existing applications, or enable new types of
applications. An example of the first case is search services that use the
subscriber’s known location as a filter for presenting relevant content.
In the second case, location is used as an enabler for new applications
that are fully dependent on knowing the location of a user or an asset;
examples include navigation and tracking services. Today, countless
consumer and corporate services make use of automatic location of
handsets or other assets. However, a majority of the services use location
data obtained directly from GPS receivers in the handset or various third
party location databases rather than directly from operators.
Location technologies can be divided into handset-based technologies
(such as GPS) with intelligence in the handset, network-based technologies (for instance Cell-ID, Enhanced Cell-ID and U-TDOA) with intelligence in the network and hybrid technologies (for instance A-GPS) with
intelligence in both the handset and the network. Handset-based and
The Federal Communications Commission’s (FCC) E911 mandates for
location of mobile emergency calls released in 1996 was a major driver
behind the development of location platforms for the North American
market. In Europe, as well as in other developed countries such as Japan
and South Korea, the early deployment of location platforms focused on
supporting commercial services due to the lack of a clear mandate for
emergency services. In the first deployment phase, lasting from 2000 to
2003, operators invested in platforms and ready-made location services.
The results were in many cases limited uptake whereby many operators
lost interest in LBS as a mass-market proposition. However, governments
and telecom regulators in many regions worldwide are now introducing
some form of emergency call and lawful intercept mandates that
require at least basic location platforms and technologies. Although the
regulators have typically not yet imposed any specific location accuracy
requirements as part of the mandates, it is highly likely that more stringent
location accuracy will be demanded in the future as technologies mature
and costs decrease.
An estimated 30 percent of the mobile network operators worldwide
have now deployed at least some type of basic location platform.
Additional deployments and updates of existing platforms can be
expected in most markets in the coming years, primarily driven by
government mandates since commercial LBS increasingly rely on
alternative location sources including GNSS, Wi-Fi location and
third party Cell-ID databases. Berg Insight forecasts that total global
annual revenues for GMLC/MPC, SMLC/PDE and SUPL A-GNSS
location systems and services will grow from € 150 million in 2010 to
€ 300 million in 2016. These revenues comprise integration fees and
licenses for new platform deployments as well as capacity and technology
upgrades, maintenance and associated services.
What is the current status of the global mobile LBS platform market?
Which mobile operators have deployed LBS platforms
and middleware?
How is GPS-technology altering the conditions for providers of location-based services?
€ million
300
What is the current status of E112 in Europe and similar
programs in other regions?
250
200
How is GPS-technology affecting network-based location
technologies?
150
How will lawful intercept requirements affect technology
choice for operators?
100
Which location platforms and technologies are best
suited for location-based advertising?
50
0
hybrid technologies often require additional hardware and software
in the handset, while network-based technologies require deployment
of hardware and software in the mobile network. Each technology has
different characteristics and ultimately, no single technology performs
best in every aspect.
Year
2010
2011
2012
2013
2014
2015
2016
Location platform and middleware revenue forecast, € million (World 2010–2016)
Which vendors provide location platforms and middleware today?
Table of Contents
1 Introduction to
location platforms
1.1 Location platforms and locationbased services
1.1.1 Overview of mobile location platforms
1.1.2 A brief history of location platforms and
services
1.2 Mobile communication services
1.2.1 Mobile voice and data subscribers
1.2.2 Mobile voice and SMS service revenues
1.2.3 Mobile data and application revenues
1.2.4 Location apps and service revenues
1.3 Mobile location platforms
and technologies
1.3.1 Mobile location platforms
1.3.2 Mobile location technologies
1.3.3 Location middleware and GIS
1.4 The mobile LBS value chain
1.4.1 Location platform and network
equipment vendors
1.4.2 Location technology developers
1.4.3 LBS middleware vendors
1.4.5 Location aggregators
1.4.6 Handset manufacturers
1.4.7 Mobile application developers and
service providers
1.5 Location platform pricing models
1.5.1 Capacity-based model
1.5.2 Transaction-based model
1.5.3 Subscriber-based model
1.6 Telecoms regulations drive location
platform deployments
1.6.1 European emergency call and privacy
regulations
1.6.2 LBS regulatory environment in the US
1.6.3 Emergency call regulations in Australia
1.6.4 Emergency call regulations in Canada
1.6.5 Emergency call regulations in Japan
2 Technology overview
2.1 Mobile network location platforms
2.1.1 Location architecture for GSM/UMTS
networks
2.1.2 Location architecture for LTE networks
2.1.3 Control Plane and User Plane location
platforms
2.1.4 OMA SUPL 1.0
2.1.5 OMA SUPL 2.0
2.1.6 OMA SUPL 3.0
2.2 Network-based positioning
technologies
2.2.1 Cell-ID
2.2.2 Enhanced Cell-ID and RF Pattern
Matching methods
2.2.3 E-OTD and OTDOA
2.2.4 Uplink Time Difference of Arrival
(U-TDOA)
2.2.5 Location platforms and technologies in
3GPP2 networks
2.2.6 Location in converged IP networks
2.3 GNSS and hybrid
location technologies
Compass
2.3.2 Assisted GPS and A-GNSS
2.3.3 Hybrid, mixed mode and indoor location
technologies
2.4 Theoretical limitations of
positioning technologies
3 Commercial deployments
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.1.7
3.1.8
3.1.9
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.2.7
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.4
Platform deployments in Europe
3 Group
Deutsche Telekom Group
KPN Group
Orange Group
Telecom Italia Mobile
Telefónica Group
Telenor Group
TeliaSonera Group
Vodafone Group
Platform deployments in the Americas
AT&T Mobility
Bell Mobility
Rogers Wireless
Sprint Nextel
TELUS
Verizon Wireless
Wind Mobile
Platform deployments in Asia-Pacific
BSNL
China Mobile
NTT DoCoMo
Telstra
Telkomsel
Platform deployments in ROW
4.1 LBS market trends
4.1.1 Emergency call mandates remain the
key driver for platform deployments
4.1.2 Location-enabled lawful intercept
4.1.3 LBS service revenue forecast
4.2 Handset market trends
4.2.1 Smartphones
4.2.2 GPS attach rates driven by higher
smartphone sales
4.2.3 Proliferation of GPS-enabled GSM/
WCDMA handset models
4.2.4 GPS-enabled GSM/WCDMA handset
shipment forecasts by segment
4.3 Location platform deployments
4.3.2 GMLC and SMLC platform deployment
forecasts
4.3.3 SUPL A-GPS server deployment
forecast
4.3.4 Location middleware deployment
forecast
5 Location platform and
technology vendor profiles
5.1 Location platform and
infrastructure vendors
5.1.1 Alcatel-Lucent
5.1.2 CommScope
5.1.3 Creativity Software
5.1.4 Ericsson
5.1.5 Mobile Arts
5.1.6 Nokia Siemens Networks
5.1.7 Oksijen
5.1.8 Openwave
5.1.9 Redknee
5.1.10 Septier
5.1.11 TeleCommunication Systems
5.1.12 TruePosition
5.2 Location technology developers
5.2.1 Broadcom
5.2.2 CSR
5.2.3 GBSD Technologies
5.2.4 GloPos Technologies
5.2.5 Intersec
5.2.6 Location Labs
5.2.7 Navizon
5.2.8 Polaris Wireless
5.2.9 Pole Star
5.2.10 Qualcomm
5.2.11 Rx Networks
5.2.12 Skyhook Wireless
5.3 Middleware vendors
5.3.1 CellVision
5.3.2 Genasys
5.3.3 Mobilaris
5.3.4 Reach-U
5.3.5 Telenity
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The mobile channel is joining
mainstream media
There are close to 6 billion active mobile subscriptions across the
globe, which can be compared with about 2 billion Internet users.
This underpins the vast potential of the mobile channel for advertising and marketing, being highly important for brands seeking
to engage in communication with present and potential customers. Berg Insight estimates that the total value of the global mobile
marketing and advertising market was € 2.61 billion in 2010, having
experienced healthy growth throughout the financial crisis and the
following recuperation. Growing at a compound annual growth rate
of 36.9 percent, the market is forecasted to be worth € 17.2 billion in
2016 – corresponding to 15.2 percent of the total digital advertising
market. Mobile advertising is at the same time predicted to account
for 3.8 percent of the total global ad spend for all media.
The mobile media has several especially interesting attributes from a
marketing perspective. First of all most people have a mobile handset, making reach unmatched. Mobile handsets and networks are
also getting increasingly advanced, making it possible to deliver
highly compelling advertising experiences, incorporating rich media, video and interactive content. Even more importantly, handsets
are extremely personal devices which people tend to always have
within reach and most often switched on. This enables marketing
possibilities which other channels lack. Consumers can be reached
at all times and in all places, which makes the channel stand out of
the crowd. The personal nature of the devices makes it possible to
deliver messages which are highly relevant for the recipient, taking
into consideration demographics, interests, habits and other preferences. Communication having undergone such screening is bound
to be much more effective in portraying a brand positively. The ROI
of such initiatives can be substantially better than for intrusive campaigns where all consumers are flooded with the same non-personalised message. The mobile channel can in this way avoid the pitfall
of unsolicited communication and capture an important role in the
future of marketing.
For several years, mobile media has been claimed to be on the verge
of entering the array of main media channels for marketing. During
the last years, companies have started to leave the experimental
stage and deliver full-scale campaigns, gradually including mobile in
the marketing media mix. Advertisers include blue chip companies
as well as SMEs. Exposure through multiple channels, digital as
well as traditional, has proven to generate better outcomes than
when channels are used in isolation. This is especially true for the mobile media, being relatively new and therefore bound to benefit from
the viral effects created by campaigns spanning several media and
generating attention across the population of potential customers.
Numerous actors are engaging in activities related to mobile marketing, including large players from the digital industry. Google and
Apple, with the AdMob and iAd advertising platforms, hold major
market shares in mobile advertising. Microsoft has struggled in the
mobile space and has joined forces with Nokia in an attempt to create a third mobile ecosystem to compete with Google’s Android and
Apple’s iOS. A wide variety of other companies are also involved in
the value chain, including specialised mobile actors such as Millennial Media, Amobee and Smaato. Facebook is furthermore on the
verge of establishing its presence in the mobile advertising space,
and may very well become an important player if leveraging user
data for targeted mobile campaigns.
There are a number of key takeaways from the latest developments
in mobile marketing. The channel is getting established as an integral part of the media mix, a progress which is eased by the booming smartphone adoption and increasing mobile media consumption. Brands do however need to refine their marketing strategies to
integrate the mobile channel, in order to spend wisely and capitalise
on the potential the mobile channel brings. Operators need to pay
attention to the possible changes in the mobile ecosystem, where
advertising can be an important future source of revenue. Within the
plethora of advertising formats, applications are currently extremely
popular, though also the mobile web is seeing increased uptake
spurred by HTML5. While advanced formats offer impressive user
experiences, the potential in more simple alternatives such as SMS
and coupons is however still substantial, not the least due to an
unprecedented reach. Finally, the integration of location-sensitivity
in advertising efforts is increasing, an area which releases the full
potential of the mobile channel.
How should mobile handsets be integrated in the marketing
media mix?
What changes in the mobile industry and end-user behaviour are
required for mobile advertising to keep growing as a multi-billion
euro market?
€ million
20000
How are Apple, Google, Microsoft and Yahoo! positioning
themselves to become leading mobile advertising players?
15000
Who are the rising stars that stand out from the crowd among the
mobile advertising and marketing companies?
How well suited for advertising are different existing and future
mobile media channels?
10000
What are the experiences from mobile marketing campaigns so far?
What implications does mobile advertising bring for operators?
5000
Which advertising formats will become most successful in the
mobile environment?
0
Year
2010
2011
2012
2013
2014
2015
2016
Mobile advertising revenue forecast, € million (Worldwide 2010–2016)
In what ways can location technology improve the relevancy of
mobile advertising?
Table of Contents
1 Advertising and digital media
1.1
1.1.1
1.1.2
1.1.3
1.1.4
1.2
1.2.1
1.2.2
1.2.3
1.3
1.3.1
1.3.2
1.3.3
1.3.4
The marketing and
advertising industry
Global advertising expenditure
Advertisement expenditure by media
Top 20 global advertisers
Marketing industry players
The Internet media channel
Internet usage trends
Internet advertising expenditure
Internet advertising formats
The mobile media channel
Europe
United States
Japan
Emerging markets
2 Mobile advertising
2.1 The mobile handset as
an advertising platform
2.1.1 Physical characteristics of the mobile
handset
2.1.2 Handset software
2.1.3 Location capabilities
2.1.4 Mobile networks and data transfer
capabilities
2.1.5 Mobile Internet versus PC-based
Internet
2.2 Advertising on the mobile handset
2.2.1 Deploying mobile advertising
2.2.2 Targeting mobile campaigns
2.2.3 Exploiting location technology
2.2.4 Privacy concerns
2.2.5 Pricing models and cost
2.3 The mobile advertising ecosystem
2.3.1 Advertisers
2.3.2 Ad agencies and creative designers
2.3.3 Digital ad networks
2.3.4 Technical solution providers
2.3.5 Mobile operators
2.3.6 Online media publishers and mobile
application providers
2.3.7 Industry associations
3 Messaging and
mobile marketing
3.1 SMS and MMS marketing
3.1.1 Push messaging
3.1.2 Pull messaging and Common Short
Codes
3.1.3 Location-targeted SMS campaigns
3.2 Idle screen and cell broadcast
3.3 Mobile coupons
3.4 Proximity-based marketing
3.4.1 Bluetooth
3.4.2 NFC
3.4.3 Barcodes
3.5 Case studies
3.5.1 Placecast’s ShopAlerts platform
generates major ROI for Fitness First
3.5.2 McDonald’s in Japan integrates mobile
coupons and contactless wallet
3.5.3 Blockbuster achieves impressive
redemption rates from mobile coupons
3.5.4 Bluetooth coupons available at major
hotel chains
3.5.5 Coca-Cola seeks to save the polar
bears through SMS donation
campaign
4 Mobile web advertisement
4.1
4.2
4.3
4.3.1
4.3.2
4.4
4.4.1
4.4.2
4.5
4.6
4.6.1
4.6.2
4.6.3
4.6.4
4.6.5
Portals
News and information
Mobile search
Market players and strategies
Directory services and local search
Communities and social networking
Market players and strategies
Social media marketing
Mobile music and video
Case studies
Expedia creates award winning
location-based mobile website using
HTML5
McDonald’s engages customers in
billboard games via mobile web
Dictionary.com’s tiered approach
optimises user experience across
platforms
Intel campaign shows mobile web ads
outperform in-app ads
Fandango delivers app-like experience
to moviegoers on the mobile web
5 Ad-funded applications
5.1 Mobile applications
5.1.1 Mobile games
5.1.2 Mobile map and navigation
applications
5.1.3 Mobile search applications
5.1.4 Mobile music and video applications
5.1.5 Social networking applications
5.1.6 Pure advertising apps
5.2 In-app advertising
5.2.1 Apple – iAd
5.2.2 RIM – BlackBerry Advertising Service
5.2.3 Microsoft – Windows Phone 7/Microsoft
Advertising
5.2.4 Nokia – Windows Phone 7 and legacy
systems
5.2.5 Android – AdMob and third party ad
networks
5.3 Case studies
5.3.1 Angry Birds Magic Places and Live
generates substantial attention
5.3.2 MINI’s location-based reality game
attracts thousands of players
5.3.3 McDonald’s promotes breakfast items
with in-app game ad in Pandora
5.3.4 Poynt’s local business search
application reaches 11 million users
5.3.5 Heineken’s StarPlayer application offers
dual screen football experience
6.1 Mobile marketing industry analysis
6.1.1 Buyer-side: Adoption of mobile ads
moves beyond the experimental stage
6.1.2 Supplier-side: Continued consolidation
and emergence of mobile players
6.1.3 Consumer-side: Mobile Internet will
eventually overtake desktop access
6.1.4 Channels and formats: Which will
succeed?
6.1.5 Convergence trends
6.2 Potential market value analysis
6.2.1 Target audience and exposure
6.2.2 CPM levels
6.2.3 CTRs for mobile campaigns
6.2.4 Revenue sensitivity analysis
6.4 Final conclusions
7 Company profiles
and strategies
7.1 Top advertising agencies
7.2 Telecom industry players
7.2.1 Turkcell at the forefront of mobile
advertising with huge opt-in database
7.2.2 Blyk’s opt-in advertising solution for
operators successful in India
7.2.3 O2 Germany relaunches ad-funded
Netzclub price plan with new tariffs
7.2.4 Ericsson aims to remove complexity by
launching AdMarket
7.3 Digital industry players
7.3.1 Google’s US$ 2.5 billion mobile
business with Mobile First and SoLoMo
7.3.2 Microsoft and Nokia team up to build a
new global mobile ecosystem
7.3.3 Yahoo! provides rich content for mobile
and taps into ad revenues
7.4 Mobile advertising players
7.4.1 AdMob
7.4.2 Amobee
7.4.3 Jumptap
7.4.4 Millennial Media
7.4.5 Out There Media
7.4.6 Smaato
7.4.7 Velti
Glossary
VAS Research Series
The Mobile
Application Market
The Mobile Application Market is a comprehensive market
the global market for mobile applications and app stores.
5-year industry forecasts and expert commentary to base your
business decisions.
Identify the key players in the mobile application value chain.
Benefit from extensive forecasts and statistical material.
Recognise the business opportunities in the mobile
application market.
Predict tomorrow’s most profitable monetisation strategies.
Learn about the market opportunity for mobile network
operators.
Evaluate the existing mobile app platforms.
Order now!
industry reports. Each title offers detailed analysis of current hot topics such
as mobile messaging, mobile Internet, mobile TV, mobile broadband or mobile
marketing. We put mobile VAS into a greater perspective, offering a realistic
approach and accurate forecasts.
www.berginsight.com
VAS Research Series
The smartphone trend is accelerating
the mobile application market
Software especially developed for mobile phones has been around
for well over a decade and before the term application (app) store
was popularized, distribution of mobile content and applications
was often realized through portals which were managed by network
operators. Operator portals had some success in selling mobile content but the ecosystem was at first unclear and did not attract enough
developers and users to really take off. The Apple App Store – an
on device centralized store – with easy to find applications and with
a simplified business model for developers, was later the disruptive
force that kick-started the market for mobile applications. The success was immediate and within its first week of operation, the App
Store accounted for 10 million app downloads. Today all leading
operating system providers and handset vendors have followed and
launched their own application stores.
The ecosystem around devices consisting of services and applications has today become an important influencing factor for users
when choosing handsets. Therefore, it is important for mobile platform vendors to achieve a prosperous mobile app ecosystem that
creates revenues for publishers and value for end users in order to
increase customer loyalty and sell more devices. Even though the
directly generated revenues in mobile app stores still are comparably
small, the importance of mobile apps is self evidential when observing the consumer interest in apps as well as the fact that apps attract
and generate revenues for a growing mobile community of software
developers, publishers, media owners and mobile ad companies.
In 2010, there were approximately 10 billion app downloads made
on all mobile platforms. Consumers are getting used to expanding
the functionality of their devices through apps and Berg Insight anticipates the number of app downloads to almost threefold year-on-year
in 2011. Even if featurephones are able to run apps, the increased
sales of smartphones and the rising popularity of apps are closely
tied together. In 2015, over 70 percent of all handset shipments will be
smartphones, building a large user base that will spur the number of
app downloads to reach almost 100 billion during 2015. The number
of app downloads per platform will gradually mimic the market share
for each mobile platform. However, some of the newer platforms,
such as iOS and Android, are much more app centric than older
platforms such as Symbian. Also, network effects in the symbiosis
between users and developers, reinforces the most popular platforms
and attracts both more developers and users. Berg Insight forecasts
that iOS and Android combined will serve over 62 percent of the total
app downloads in 2015. The Windows Phone operating system is
projected to be the third most popular application platform in 2015.
Berg Insight estimates that revenues from paid applications, in-app
purchases and subscription services – so called direct revenues –
reached € 1.6 billion in 2010. Berg Insight forecasts direct app store
revenues to grow at a compound annual growth rate of 40.7 percent
to reach € 8.8 billion in 2015. Apple’s iOS is the current leader in direct
monetisation of mobile applications and will keep the number one
position during the forecast period. In 2010, the Apple App Store generated revenues of € 1.33 billion. In 2015 the company’s app store is
predicted to generate € 4.4 billion in direct revenues. The Android
platform is the second largest platform in terms of direct revenues
and generated € 80 million during 2010 which will grow to almost
€ 1.5 billion in 2015.
The market for in-app advertising took off during 2010 as a means
to capitalize on free apps. In-app advertising generated € 300 million
representing 16 percent of the total app revenues during the year.
In 2011, app advertising revenues will more than double to reach
€ 750 million. The in-app advertising revenues will increase throughout the forecast period and in 2015, in-app advertising is forecasted
to generate € 3.5 billion corresponding to 29 percent of the total app
revenues. In-app advertising is more of a volume game and Android
will surpass iOS in 2012 as the platform that generates most in-app
ad revenues. Berg Insight predicts Android to generate over € 1.2
billion in in-app ad revenues in 2015, up from € 39 million in 2010.
The iOS platform generated € 230 million in 2010 and is forecasted to
reach almost € 1.0 billion in 2015.
Which mobile platforms offer the best potential for
monetising mobile apps?
How can mobile operators benefit from the mobile
application market?
Billion Downloads
100
80
Which will be the most important business strategies for
mobile applications?
60
What are the impacts of web technologies such as
HTML5 on the mobile application market?
40
Why is it important with a multi platform development
strategy?
20
How big is the revenue opportunity within the mobile
application market?
0
Year
2009
2010
2011
2012
2013
2014
2015
Mobile application downloads, billion downloads (World 2009–2015)
How can app developers minimize business risks?
Which are the leading mobile application stores?
Table of Contents
1 Introduction to mobile applications
1.1 Background
1.1.1 App stores simplify distribution for
developers
1.1.2 Explosion in the number of apps and
app stores
1.1.3 Mobile Internet and the rise of the
mobile app market
1.2 Mobile application platforms
1.3 Mobile application categories
1.3.1 Gaming
1.3.2 Entertainment
1.3.3 Books
1.3.4 Communication
1.3.5 Utility and productivity
1.3.6 Mobile enterprise
1.3.7 Other categories
1.4 App usage
1.5 App discovery
1.5.1 Third party app directories
1.6 App store network effects
2 The mobile application
ecosystem
2.1 Mobile handset market overview
2.2 The smartphone market
2.2.1 Focus shift from devices to mobile app
ecosystems
2.2.2 Touch input and advanced sensor
technologies drives app innovation
2.2.3 Apps and improved hardware enables
smartphones to challenge PCs
2.3 Mobile application platforms
2.3.1 Android
2.3.2 BlackBerry OS
2.3.3 iOS
2.3.4 Symbian
2.3.5 WebOS
2.3.6 Windows Phone 7
2.3.7 Brew MP
2.3.8 Samsung’s Bada platform
2.3.9 Java for Mobile Devices
2.4 Mobile network operators and the
app market
2.4.1 App markets reduce operators to
broadband providers
2.4.2 Operators launch their own app stores
to reclaim control
2.4.3 The Wholesale Application Community
2.4.4 Operator opportunities in the mobile
app market
2.5 Mobile app developers and
publishers
2.5.1 Gaming is the most popular app
category for developers
2.5.2 iOS and Android are the most popular
platforms for developers
2.6 In-app ad solution providers and ad
networks
2.6.1 Digital ad networks and in-app ad
solutions
2.6.2 Apple – iAd
2.6.3 RIM – BlackBerry Advertising Service
2.6.4 Microsoft – Windows Phone 7/Microsoft
Advertising
2.6.5 Nokia – Ovi Store in-app advertising
add-on
2.6.6 Google – Admob
3 Mobile application stores
OS developer application stores
Android Market
Device vendor application stores
Apple App Store
BlackBerry App World
HP App Catalog
Nokia Ovi Store
Samsung Apps
LG World
Operator application stores
AT&T AppCenter
Bharti Airtel App Central
China Mobile Mmarket
Orange App Shop
Verizon V CAST Apps
Vodafone 360 Shop
Third party application stores
GetJar
Amazon Appstore for Android
Appitalism
White label application stores
Appia
Huawei’s WAC enabled Digital
Shopping Mall Solution
3.5.3 Ericsson eStore
3.1
3.1.1
3.1.2
3.2
3.2.1
3.2.2
3.2.3
3.2.4
3.2.5
3.2.6
3.3
3.3.1
3.3.2
3.3.3
3.3.4
3.3.5
3.3.6
3.4
3.4.1
3.4.2
3.4.3
3.5
3.5.1
3.5.2
4 Mobile app store economics
4.1 Application store revenues
4.1.1 Revenue share models
4.1.2 Mobile app marketing
4.2 App store billing solutions
4.3 Mobile app pricing
4.4 Mobile application monetisation
strategies and business models
4.4.1 Paid apps
4.4.2 Freemium – one free limited version
combined with one premium version
4.4.3 In-app payments
4.4.4 Subscriptions
4.4.5 Ad-funded
4.4.6 Marketing and brand apps
4.4.7 New channel to market
4.4.8 Bundle component
4.4.9 Attract a large user base and building
communities
4.4.10 Free apps
4.4.11 Mobile app business model trends
4.4.12 Choosing monetisation strategy
4.4.13 Cross platform development and multi
monetisation strategies reduce risks
5 Market forecasts and conclusions
5.1 Market forecasts by mobile platform
5.1.1 Application download forecast by
mobile operating system
5.1.2 Direct revenues forecast by mobile
operating system
5.1.3 In-app advertising revenues forecast by
mobile operating system
5.2 Market forecasts by region
5.2.1 Application download forecast by
region
5.2.2 Direct revenues forecast by region
5.2.3 In-app advertising revenues forecast by
region
5.3 Conclusions and strategic advice
5.3.1 App stores is about successful
ecosystems
5.3.2 E-commerce, content and
subscriptions – opportunities with
impediments
5.3.3 Business models and monetisation
5.3.4 Mobile platforms and cross platform
development
5.3.5 The mobile web, HTML5 web apps and
native apps
6 Industry players
6.1
6.1.1
6.1.2
6.1.3
6.1.4
6.2
6.2.1
6.2.2
6.3
6.3.1
6.3.2
6.3.3
6.3.4
6.4
6.4.1
6.4.2
6.4.3
6.5
6.5.1
6.5.2
6.5.3
Device vendors
Apple
Nokia
Research In Motion
Samsung Electronics
Mobile operating system vendors
Google
Microsoft
Mobile operators
AT&T
Verizon Wireless
Vodafone
China Mobile
Developers and publishers
Electronic Arts - EA Mobile and
Chillingo
Gameloft
Rovio
Third party in-app advertising
solution providers
Smaato
Amobee
Tapjoy
Glossary
VAS Research Series
Mobile Money in
Emerging Markets
Mobile Money in Emerging Markets is a comprehensive
the mobile money and remittances markets.
with 130+ pages of unique business intelligence and expert
companies.
Learn from valuable insights about successful mobile money
deployments.
Identify the leading mobile money platform providers in
emerging markets.
Understand the ecosystem required for providing financial
transaction services in the mobile environment.
Realize how mobile phones are being used for subscriberto-subscriber financial transactions within and between
countries.
Predict the number of users and transaction volumes for
mobile money services until 2015.
Order now!
industry reports. Each title offers detailed analysis of current hot topics such
as mobile messaging, mobile Internet, mobile TV, mobile broadband or mobile
marketing. We put mobile VAS into a greater perspective, offering a realistic
approach and accurate forecasts.
www.berginsight.com
VAS Research Series
Active users of mobile money services
to double in the next 2 years
to US$ 215 billion in 2015. Asia-Pacific is expected to become the
most important regional market, accounting for more than half of
the total user base.
Mobile financial services are causing a significant transformation in
the financial services, payments and international remittance industries. The mobile phone is changing how customers conduct their
financial activities, leading to an extended reach and increased operational efficiency among financial service providers in emerging
markets. In the longer term mobile money services are facilitating
the increasing share of digital transactions in emerging markets,
where cash transactions still dominate. A growing share of international remittances is being electronically disbursed into mobile
money accounts. Mobile phones are also being increasingly used
to send remittances.
The global remittance market has grown rapidly over the past decade. In 2010 remittances through formal channels amounted to US$
440 billion, of which, developing countries received an estimated
US$ 325 billion. The vast majority of these transactions are still cashto-cash transactions, but the share of digital transactions is steadily
increasing. Driven by the development of mobile money systems in
emerging markets, Berg Insight estimates that US$16 billion worth
of international money transfers will be received with mobile phones
in 2015. Similarly, US$ 5.5 billion worth of international remittances
will be sent using mobile phones in 2015.
Berg Insight defines a mobile money subscriber as a person or
business who has registered for a mobile money account. Mobile
money accounts comprise accounts from which transactions such
as person to person transfers or bill payments can be made using a
mobile phone. Berg Insight’s definition of a mobile money account
does not encompass services limited to information services and
simple transactions such as airtime top-ups and transfers between
own accounts. It does not include services that use mobile operator
billing as a payment source.
Mobile money services are increasing the availability and access
to financial services for lower-income segments of the population,
which previously has not been possible to serve profitably. The
mobile phone will be the first digital banking channel for a majority
of the unbanked populations in many emerging economies. The
number of live mobile money deployments has grown at an explosive rate over the past two years. Berg Insight’s in-depth study of
the industry indicates that there are currently around 300 mobile
money deployments live in emerging markets. Over half of these
have been launched by mobile operators and third party service
providers. The remaining deployments have been launched by financial institutions.
The number of mobile money subscribers in emerging markets is
forecasted to grow from 133 million users in 2010 at a compound
annual growth rate (CAGR) of 40 percent to reach 709 million users
in 2015. The total value of mobile money transactions will simultaneously grow at a CAGR of 54 percent from US$ 25 billion in 2010
Many new companies have entered the mobile money industry as
technology vendors in the past year, including the likes of Ericsson, SAP and Gemalto. The competitive landscape is intense with
around 70 vendors competing in the industry, of which many need
to reach a critical mass of deployments over the next two years in
order to stay in business in the longer term. Yet, the level of consolidation among technology vendors serving MNOs and third party
service providers is high, with around 75 percent of mobile money
deployments running on the platforms of five leading vendors. In
contrast, the landscape among vendors providing financial institutions is highly fragmented with no clear leaders.
How can mobile technology be applied to extend the
reach of today’s online banks?
What is the true potential for providing mobile financial
services to the unbanked population?
What are the key challenges, critical success factors and
best practices for operating mobile money services?
Million users
800
Who are the most important players to watch in the
mobile banking and payments industry?
700
600
Who are the leading mobile money platform providers in
emerging markets?
500
What are the business opportunities for mobile
operators in international money transfer?
400
300
What are the strategies of the leading providers of
international airtime transfers?
200
100
0
International airtime transfer is a rapidly growing niche within the
overall international value transfer market. It is a low margin high
volume business, with a small number of leading service providers
in the field. There are a large number of smaller vendors who have
joined the airtime transfer market more recently. Berg Insight estimates that the total value of international airtime transfer will grow
from US$ 130 million in 2010 at a CAGR of 67 percent to reach US$
1.67 billion in 2015.
Year
2010
2011
2012
2013
2014
2015
Active users of mobile money services (Emerging markets 2010–2015)
How are financial institutions responding to the entry
of mobile network operators in the financial services
industry?
Table of Contents
1 Mobile money in
emerging markets
1.1 Introduction
1.1.1 The mobile as an enabler of branchless
banking and electronic payments
1.1.2 Overview of mobile money service
providers
1.1.3 Developments in the mobile money
field
1.2 Overview of mobile money services
1.3 Evolving to a mature system
1.4 Mobile money fundamentals and
success factors
1.4.1 Network effects in mobile money
systems
1.4.2 Internal priority
1.4.3 Reaching the target customer groups
1.4.4 Building, incentivising and managing
agent networks
1.5 Case studies
1.5.1 Mobile money in South Africa
1.5.2 The evolving mobile money ecosystem
in Kenya
2 The mobile financial
services industry
2.1
2.1.1
2.1.2
2.2
2.2.1
2.2.2
2.2.3
Technology vendors
The changing competitive landscape
General development trends
Mobile money service providers
Mobile network operators
Financial institutions
Third party service providers
3 International mobile
remittances
3.1 Global money transfer flows
3.2 Cost of remitting money
3.3 Success factors for remittance
services
3.4 The consumer-to-consumer
remittance market
3.5 Remittance methods
3.5.1 Structure of a remittance operation
3.5.2 Agent networks
3.5.3 Informal value transfer systems
3.5.4 Regulations
3.5.5 Funds capture interfaces and payment
instruments
3.5.6 Funds disbursement
3.6 Mobile remittance players
3.6.1 Money transfer offices
3.6.3 Platform providers and third parties
3.6.4 Financial institutions and payment
processing networks
3.6.5 International airtime transfer companies
3.7 Case studies
3.7.1 Western Union is putting its bets on
mobile money transfers
3.7.2 MoneyGram offers international mobile
money transfers
3.7.3 MasterCard’s MoneySend service goes
mobile
3.7.4 Remittances to M-PESA wallets in
Kenya
4.1 Mobile money in emerging markets
4.1.1 Deployments launched by service
provider
4.1.2 Deployments launched by region
4.2 Mobile money forecasts and analysis
by region
4.2.1 Africa
4.2.2 Asia
4.2.3 Latin America
4.2.4 Eastern Europe and Western Asia
4.3 Mobile money technology vendors
4.3.1 The changing competitive landscape
4.3.2 Technology platform development
trends
4.4 Mobile money service providers
4.4.1 Current focus and execution of services
4.4.2 Service provider development trends
4.5 Mobile remittances
4.5.1 Sending and receiving remittances with
a mobile phone
4.5.2 Forecasts and analysis
4.5.3 Mobile remittance development trends
4.6 International airtime transfer
4.6.1 Service provider market shares
4.6.2 Forecasts and analysis
5 Company profiles
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.1.8
5.1.9
5.1.10
5.1.11
5.1.12
5.1.13
5.1.14
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.2.7
5.2.8
Mobile money platform providers
Comviva
Fundamo
Gemalto
Halcom
MasterCard
M-Com (Fiserv)
Monitise
MoreMagic
ProgressSoft
S1
Sybase 365 (SAP)
Utiba
YellowPepper
ZTE
Mobile value transfer providers
eServGlobal and BICS
Ericsson
Ezetop
Luup
MoneyGram
TransferTo
Visa
Western Union
Glossary
NGT Research Series
Small Cells and
Wi-Fi Offloading
Small Cells and Wi-Fi Offloading is a comprehensive report
from Berg Insight analysing the emerging global market for
small cell base stations and Wi-Fi offloading solutions.
This strategic research report in the NGT Research Series
from Berg Insight provides you with 140 pages of unique
business intelligence, including 5-year industry forecasts
and expert commentary on which to base your business
decisions.
Understand the opportunities and challenges for small cell
base stations.
Comprehend how femtocell technologies affect mobile
networks.
Identify key players on the global small cell market.
Predict future business models for femtocell services.
Anticipate the timing of mass-deployments of small cell
devices and services.
Realize the importance of integrated Wi-Fi offloading
solutions.
Profit from valuable insights from the most successful
offerings on the market.
Order now!
Berg Insight’s NGT Research Series
How will the mobile market evolve in the future? Berg Insight’s Next Generation
Technologies Research Series examines the latest advances in mobile technology
and the new business opportunities they create. Each title analyses development
roadmaps, potential applications and addressable market segments for a
technology. Topics currently covered by the series include smartphones, small
cells, mobile broadband and short-range handset connectivity.
www.berginsight.com
NGT Research Series
Will small cell solutions solve
operators’ future coverage and
capacity challenges?
Mobile operators are experiencing fast growth in mobile data and
signalling traffic as customers increasingly use mobile computing devices. Adoption of smartphones is rising and more subscribers use
multiple connected devices such as PCs and tablets. Total mobile
data traffic in cellular networks have more than doubled every year
since 2007 and is forecasted to grow at a compound annual growth
rate (CAGR) of more than 60 percent from 2011 until 2016. Subscribers are also becoming more reliant on mobile phones as their primary
or only device for voice communication and therefore expect ubiquitous network coverage.
In order to meet the rising demand, operators need to use a combination of approaches. These include improving the mobile macro
layer by using more spectrum and increasingly advanced radio air
interfaces with higher spectral efficiency, making the macro layer
denser by installing more base stations in traffic hotspots, as well
as introducing heterogeneous networks (HetNets). HetNets are composed of multiple radio access technologies, architectures, backhaul
solutions and base stations of varying transmission power. Examples
of low power nodes include Remote Radio Units (RRU) and Distributed Antenna Systems (DAS), as well as small autonomous base stations including microcells, picocells and femtocells. Making use of
Wi-Fi access points in unlicensed spectrum is also an increasingly
attractive solution as new standardisation and interoperability efforts
aim to make the network selection and user identification process
seamless. HetNets will become increasingly important in the future
as spectrum is a scarce resource and densification of the macro
network gets more costly as site acquisition in metropolitan areas
becomes more difficult. Several operators have already deployed
microcells, picocells, femtocells and integrated carrier Wi-Fi network
solutions. The first commercial integrated HetNets will be deployed
starting in 2013.
A microcell is a small cellular base station that covers a limited area
such as a shopping mall or a train station. Microcells are often deployed
to add network coverage and capacity in areas with dense phone usage, or temporarily during various events when the need for capacity is
known in advance. Output power is usually a few watts and the radius
of the coverage area ranges between 100 metres and 300 metres.
10
Europe
6
Which companies are active in the small cell market?
6
Which operators have introduced Wi-Fi offloading
solutions?
4
How will small cell base station and Wi-Fi technologies
2
3
0
0
2010
What are the femtocell strategies of the leading mobile
operators?
North America
8
9
Berg Insight estimates that mobile operators globally had deployed
2.2 million small cell cellular base stations at the end of 2011, including more than 2 million femtocells. Mobile operators in North
America, Japan and South Korea are now stepping up deployments
of small cell cellular base stations to increase mobile network data
capacity. Operators in other countries will gradually follow as data
demand increases in hotspot areas. Berg Insight forecasts that the
installed base of small cell cellular base stations will increase to 14
million units in 2016, driven by femtocells that will reach 10 million
units in the same year.
How will femtocell services evolve in the future?
12
12
Femtocells are low power cellular access points with about 20–100
mW output power, intended to extend coverage and offload the macro network in home and small office environments, supporting four to
eight simultaneous users. Femtocells have been developed to work
with a range of different cellular standards including CDMA, GSM,
HSPA and LTE. Femtocells are self-installing plug-and-play devices
deployed by users, similar to Wi-Fi access points. Femtocells use
IP broadband connections for backhaul of voice and data. However,
in contrast to Wi-Fi access points, femtocells are mobile infrastructure components that operate in licensed spectrum. Mobile operators usually install femtocell gateways that act as concentrators for
integrating a large number of femtocells with the core network. About
40 mobile operators in 24 countries now offer femtocells to consumer
and enterprise customers. However, the deployments have mainly
been driven by large operator groups while smaller operators have
struggled to justify the high costs of building and integrating a femtocell core network.
What is the current status of the femtocell market?
€ billion
Million units
15
Similar to microcells, picocells add coverage and capacity to limited
geographical areas such as offices or public venues. These cells are
often found inside buildings where coverage is poor or where there
is a dense population of users. There is no clear distinction between
microcells and picocells, though picocells are usually smaller, have
lower output power and may support fewer simultaneous users. Picocells and microcells are deployed by the operator and are part of
the RAN.
Year
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
2015
2016
Year
2016
Installed base of small cell base stations, million units (World 2010–2016)
How will North America, Europe and Asia-Pacific compare
in terms of small cell deployments?
Table of Contents
1 Introduction to small cells and
Wi-Fi offloading
1.1Introduction
1.1.1 Continued growth in mobile
subscriptions and handset sales
1.1.2 Broadband services drive fixed-line
connection growth
1.1.3 Fixed-mobile convergence and fixedmobile substitution market trends
1.1.4 Global mobile data traffic grows along
with increasing smartphone adoption
1.2 Communication network technology
evolution
1.2.1 Wireless technologies
1.2.2 Fixed-line broadband technologies
1.3 Mobile network capacity improvement
strategies
1.3.1 Macro layer improvements
1.3.2 Macro layer densification
1.3.3 Heterogeneous networks (HetNets)
1.3.4 Femtocells
1.3.5 Wi-Fi network integration and mobile
data offloading
2 Small cell and Wi-Fi technology
2.1 Mobile network standards and
architectures
2.1.1 GSM/GPRS/EDGE networks
2.1.2 UMTS/HSPA networks
2.1.3 LTE networks
2.1.4 Heterogeneous networks
2.1.5 Microcells
2.1.6 Picocells
2.1.7 Femtocells
2.2 Femtocell architectures in 3GPP and
3GPP2 networks
2.2.1 3GPP UMTS femtocell specifications
and interfaces
2.2.2 IMS based femtocell architecture
2.2.3 3GPP LTE femtocell architectures
2.3 Wi-Fi and cellular network integration
2.3.1 UMA/GAN
2.3.2 3GPP Wireless LAN Interworking
(I-WLAN)
2.3.3 Hotspot 2.0 and Next Generation
Hotspot
3 Small cell deployments
3.1 Small cells and femtocells from an
operator perspective
3.1.1 The femtocell business case for mobile
operators
3.1.2 Operator strategies
3.2 Small cell trials and commercial
offerings
3.2.1 AT&T
3.2.2 China Unicom
3.2.3 Cosmote
3.2.4 Everything Everywhere
3.2.5 Hutchison 3G
3.2.6 KDDI au
3.2.7 MegaFon
3.2.8
3.2.9
3.2.10
3.2.11
3.2.12
3.2.13
3.2.14
3.2.15
3.2.16
3.2.17
3.2.18
3.2.19
3.2.20
3.2.21
3.2.22
Mobile TeleSystems
Network Norway
NTT DoCoMo
Optimus
Orange Group
SFR
SingTel Group
SK Telecom
SoftBank
Sprint Nextel
StarHub
Telefónica
Telenor
Verizon Wireless
Vodafone
4 Wi-Fi network deployments
4.1 Wi-Fi network operators, aggregators
and brokers
4.1.1 Boingo Wireless
4.1.2 The Cloud
4.1.3 Comfone
4.1.4 Fon
4.1.5 iPass
4.1.6 Trustive
4.2 Carrier Wi-Fi network deployments
and services
4.2.1 AT&T
4.2.2 China Mobile
4.2.4 Eircom
4.2.5 Free Mobile
4.2.6 KDDI au
4.2.7 KPN
4.2.8 KT Corporation
4.2.9 Swisscom
4.2.10 Telefónica O2 UK
4.2.11 TeliaSonera
5 Vendor profiles and strategies
5.1 The small cell value chain
5.2 End-to-end small cell system vendors
and integrators
5.2.1 Alcatel-Lucent
5.2.2 Cisco Systems
5.2.3 Contela
5.2.4 Ericsson
5.2.5 Fujitsu
5.2.6 Hitachi
5.2.7 Huawei
5.2.8 NEC
5.2.9 Nokia Siemens Networks
5.3 Small cell and residential gateway
vendors
5.3.1 Airspan
5.3.2 Airvana
5.3.3 HSL
5.3.4 Ip.access
5.3.5 Minieum Networks
5.3.6 SpiderCloud Wireless
5.3.7 TEKTELIC Communications
5.3.8 UbeeAirWalk
5.3.9 Ubiquisys
5.3.10 ADB Group
5.3.11 Alpha Networks
5.3.12 Gemtek
5.3.13 Netgear
5.3.14 Sagemcom
5.3.15 SerComm
5.3.16 Tecom
5.4 Small cell chipset vendors
5.4.1 Broadcom
5.4.2 Freescale Semiconductor
5.4.3 Mindspeed Technologies
5.4.4 Qualcomm
5.4.5 Texas Instruments
5.5 Small cell software and network
gateway vendors
5.5.1 Acme Packet
5.5.2 Aricent Group
5.5.3 mimoOn
5.5.4 Node-H
5.5.5 Genband
5.5.6 Radisys
5.5.7 Taqua
5.6 Wi-Fi data offloading solution vendors
5.6.1 Aptilo Networks
5.6.2 Birdstep
5.6.3 Greenpacket
5.6.4 Kineto Wireless
5.6.5 Notava
5.6.6 Smith Micro Software
5.6.7 Stoke
5.6.8 Syniverse
5.6.9 WeFi
5.7 Wi-Fi equipment vendors
5.7.1 Alvarion
5.7.2 Edgewater Wireless
5.7.3 GoNet Systems
5.7.4 Ruckus Wireless
5.7.5 Strix Systems
5.7.6 Ubiquiti Networks
5.7.7 Vivato Technologies
6 Market trends and forecasts
6.1 Small cell market trends
6.1.1 Moving from femtocell trials to small cell
deployments
6.1.2 HetNet and small cell adoption may
lead to industry transformation
6.1.3 Wi-Fi offloading is gaining acceptance
among mobile operators
6.2 Small cell market forecasts
6.2.1 Small cell deployments in Asia Pacific
6.2.2 Small cell deployments in Europe
6.2.3 Small cell deployments in North
America
6.2.4 Small cell shipments worldwide
Glossary
NGT Research Series
Handset Connectivity
Technologies
Handset Connectivity Technologies is the third consecutive
report from Berg Insight analysing the latest trends on the
worldwide market for GNSS, Bluetooth, WLAN and NFC
technologies in mobile handsets.
This report in the NGT Research Series from Berg Insight
Profit from numerous executive interviews with market
leading companies.
Learn about the strategies of the leading chipset and
handset vendors.
Identify the opportunities and challenges with integration
of multiple connectivity technologies in mobile handsets.
Realise the importance of Assisted-GNSS and hybrid
location technologies.
Comprehend how NFC technology in handsets can
enable new services.
Understand the drivers and barriers for industry-wide
adoption of new technology.
Predict future connectivity design trends and technology
developments.
Order now!
roadmaps, potential applications and addressable market segments for a technology.
Topics currently covered by the series include smartphones, femtocells, mobile
broadband and short-range handset connectivity.
www.berginsight.com
NGT Research Series
Popularity of smartphones boosts
connectivity technology attach rates
Global handset shipments grew 15 percent in 2011 to about 1.5 billion
units, although the growth rate slowed down in Q4-2011 in the wake
of the deteriorating macroeconomic conditions, especially in Europe.
Global sales of featurephones were nearly flat, while smartphone shipments grew almost 60 percent to 470 million units in 2011. Penetration of smartphones is growing worldwide as handset vendors adopt
smartphone operating systems in order to reduce development time
and cost for new advanced handset models. Mobile operators have put
their hopes on smartphones as drivers of data revenues and are willing
to subsidise smartphones that drive adoption of postpaid subscriptions
and data plans. Mobile subscribers also put more emphasis on the user
experience and support of native apps and web services. There were
4.7 billion mobile phones in use at the end of 2011, including 750 million smartphones. About 4.1 billion people, or nearly 60 percent of the
world’s population, owned a mobile phone.
The popularity of smartphones is driving attach rates of wireless connectivity technologies including Bluetooth, WLAN, NFC and GPS that
enable new use cases for handsets. Bluetooth can be used to connect
headsets, fitness and medical sensors or perform file transfers. WLAN
can be used for Internet access, VoIP services or fast file and media
transfer. Near Field Communication (NFC) is a standard for short-range
wireless, point-to-point communication. NFC operates in the unlicensed
13.56 MHz band over distances of about 10 centimetres. When deployed in mobile phones, NFC can be used for countless applications,
ranging from information exchange and device pairing, to electronic
ticketing and secure contactless payments. The most important driver
for GPS integration in handsets today is arguably the interest in locationbased services (LBS), although emergency call location regulations are
being introduced in more countries. In contrast to emergency call services relying on occasional push to fix positioning, consumer-oriented LBS
pose new challenges. These services range from advanced turn-by-turn
navigation services to local search, people tracking, friendfinders and
social networking. Handsets thus need to support services that require
both infrequent, fast push to fix updates in addition to continuous position updates – all whilst conserving battery life. The revised emergency
call mandates in the US may well require approaches such as using
improved hybrid location technologies in all handsets.
GPS technology for handsets has matured, offering much better performance in terms of sensitivity, power consumption, size and price than
%
100
€ billion
10
Europe
8
Bluetooth
40
4
GPS
WLAN
2
0
When will NFC become a widespread handset connectivity
technology?
What is the roadmap for integration of WLAN in massmarket mobile phones?
What is driving the adoption of GPS technology in GSM/
WCDMA handsets?
Who are the leading developers of cellular and
connectivity chipsets?
6
0
Which features are supported in the latest Bluetooth
standard?
North America
60
20
Bluetooth is now a standard feature on most featurephone models
and virtually all smartphones. In 2011, shipments of Bluetooth-enabled
handsets reached 1.1 billion units and the Bluetooth attach rate grew
to more than 73 percent across all handset segments. The attach rate
for WLAN connectivity in the smartphone segment has grown from less
than 6 percent in 2006 to about 95 percent in 2011. However, the attach
rate for WLAN is still less than 5 percent in the featurephone segment.
The attach rate for GPS in handsets across all air interface standards
grew from 33 percent in 2010 to 38 percent in 2011. GPS connectivity
has become a standard feature on most smartphone models except a
few low cost GSM/WCDMA models. The GPS attach rate in the GSM/
WCDMA smartphone segment increased from 90 percent in 2010 to
about 95 percent in 2011. NFC may finally have reached a breakthrough
as more than 40 NFC-enabled handset models were released by the
end of 2011. At the beginning of March 2012, more than 100 models had
been announced by nearly all leading vendors. Berg Insight estimates
that sales of NFC-handsets reached about 30 million units in 2011, up
from roughly 3 million in 2010.
What are the benefits with Assisted-GPS, A-GNSS and
hybrid location technologies?
12
80
was possible a few years ago. Support for other satellite systems such
as GLONASS, Galileo and Compass will also be added over time. The
first handsets with GPS/GLONASS receivers are already available. Using
multiple satellite systems concurrently ensures additional visible satellites and incrementally better performance in urban canyons. However,
in order to improve indoor performance, hybrid positioning systems
are needed. Hybrid positioning systems can fuse data from sensors to
provide input to position calculations. Examples include inertial sensors
such as accelerometers and gyroscopes, as well as compasses and
pressure sensors. In the near future, the main barrier is the low data
accuracy and high drift obtained from low cost sensors, making dead
reckoning for extended periods of time unfeasible. Periodic calibrations
using signal measurements from cellular and WLAN networks can improve the system performance.
NFC
2010 2010 2011 2011 2012 2012 2013
20132014
2015
2014
2016
2015
Year
2016
Projected attach rate for handset connectivity technologies
(World 2010 - 2016)
Year
Which connectivity technologies are being adopted by
leading handset manufacturers?
What impact will new technologies have on the wireless
chipset value chain?
How is the greater diversity of radios affecting wireless
chipset and handset design?
Table of Contents
1 Mobile handsets and
smartphones
1.1Introduction
1.2 Wireless communication technologies
1.2.1 Cellular communication technologies
1.2.2 Personal and local area networks
1.2.3 Spectrum and interference
1.3 Broadcast connectivity technologies
1.3.1 Radio
1.3.2 Mobile TV
1.3.3 Global navigation satellite systems
1.4 Connectivity technology
integration in handsets
1.4.1 Handset hardware and software
platforms
1.4.2 Horizontal and vertical integration of
connectivity technologies
1.5 Overview of handset segments
1.5.1 The smartphone category is expanding
across multiple price-tiers
1.5.2 Best selling smartphones in 2011
1.5.3 Handset form factors and input
mechanisms
1.5.4 Evolution of smartphone user interfaces
1.6 Handset connectivity trends
1.6.1 Wireless connectivity attach rates driven
by higher smartphone sales
1.6.2 Proliferation of GPS-enabled GSM/
WCDMA handset models
1.6.3 NFC is gradually gaining momentum
2 Handset platform vendors
2.1 The handset chipset industry
2.1.1 Industry consolidation will continue
2.1.2 Handset baseband vendors
2.1.3 Connectivity chipset vendors
2.1.4 Sensor IC vendors
2.2 Cellular platform vendor profiles
2.2.1 Broadcom
2.2.2 Intel
2.2.3 Marvell
2.2.4 MediaTek
2.2.5 MStar Semiconductor
2.2.6 NVIDIA
2.2.7 Qualcomm
2.2.8 Renesas Mobile Corporation
2.2.9 Spreadtrum Communications
2.2.10 ST-Ericsson
3 GNSS technologies
3.1 Overview of global navigation
satellite systems
3.1.1 Global Positioning System (GPS)
3.1.2 Galileo
3.1.3 GLONASS
3.1.4 Compass/Beidou 2
platforms
3.2.1 Mobile location platforms
3.2.2 Control plane and user plane location
platforms
3.2.3 A-GPS and A-GNSS
3.2.4 Hybrid and mixed mode technologies
3.3 GPS and GNSS chipsets for handsets
3.3.1 Standalone receivers
3.3.2 Host-based receivers
3.3.3 Integrated receiver architectures
3.3.4 Software-based receivers
3.3.5 GNSS receivers for handsets
3.4 GNSS chipset and software vendors
3.4.1 GPS IC vendor market shares
3.4.2 CellGuide
3.4.3 SkyTraq
3.4.4 u-blox
4 Bluetooth, WLAN and NFC
technologies
Bluetooth technologies
Bluetooth specifications
Bluetooth applications and profiles
Wireless LAN technologies
IEEE 802.11 WLAN standards
WLAN in mobile phones
WLAN handset shipments trends
WLAN chipset vendor market shares
Near Field Communication
technologies
4.3.1 NFC Forum specifications
4.3.2 NFC modes
4.3.3 NFC solution architectures and
chipsets
4.3.4 NFC mobile payment trials and
initiatives
4.3.5 Overview of NFC-enabled handsets
4.4 Connectivity chipset vendor profiles
4.4.1 CSR
4.4.2 Inside Secure
4.4.3 Nanoradio
4.4.4 NXP Semiconductors
4.4.5 Redpine Signals
4.4.6 Sony Corporation
4.4.7 STMicroelectronics
4.1
4.1.1
4.1.2
4.2
4.2.1
4.2.2
4.2.3
4.2.4
4.3
5 Handset vendor profiles
5.1 Handset market developments
5.1.1 Smartphone ecosystem developments
5.1.2 Handset vendor market shares
5.2Apple
5.2.1 Device portfolio
5.2.2 Handset shipments
5.3HTC
5.4Huawei
5.5 LG Electronics
5.6 Motorola Mobility
5.7Nokia
5.8RIM
5.9Samsung
5.10 Sony Mobile Communications
5.11ZTE
5.12 Second tier handset vendors
5.12.1 Acer
5.12.2 Dell
5.12.3 Fujitsu Toshiba Mobile
Communications
5.12.4 Kyocera Sanyo Telecom
5.12.5 Lenovo Mobile Communications
5.12.6 Micromax Informatics
5.12.7 NEC Casio Mobile Communications
5.12.8 Panasonic Mobile Communications
5.12.9 Pantech
5.12.10 Sharp
5.12.11 TCL Communication
6.1 Market trends
6.1.1 Rising adoption of smartphones
continues to reshape the mobile
industry
6.1.2 Changing demands drives consolidation
in the wireless chipset industry
6.1.3 Cost requirements favour development
of integrated chipsets
6.1.4 Hybrid location technologies drive
performance improvements in handsets
6.2 Handset shipment forecasts
6.2.1 Handset shipment forecasts by region
and primary access technology
6.2.2 Handset shipment forecasts by category
and price segment
6.2.3 GNSS-enabled GSM/WCDMA/LTE
handset shipment forecasts by segment
6.2.4 GNSS handset shipment forecasts by
geographical region
6.2.5 WLAN-enabled handset shipment
forecasts
6.2.6 NFC-enabled handset shipment
forecasts
6.3 Connectivity chipset shipments
and revenue forecasts
6.3.1 GNSS receiver chipset revenue
forecasts
6.3.2 Bluetooth, WLAN and NFC chipset
revenue forecasts
Glossary
NGT Research Series
The Mobile Broadband
Connectivity Market
The Mobile Broadband Connectivity Market is the sixth
consecutive yearly report from Berg Insight analysing the
rise of mobile broadband for connected PCs and tablets in
Europe and North America.
This 170 page strategic research report provides you with
unique business intelligence and expert commentary on
which to base your business decisions.
Understand the dynamics of the European and North
American mobile broadband connectivity market.
Gain access to all the latest data and statistics about this
market.
Learn about the mobile broadband strategies of leading
telecom operator groups.
Identify the key success factors for launching HSPA/LTE
broadband on the consumer market.
Evaluate the impact of HSPA+ and LTE technology in
the mobile broadband market.
Anticipate the timing for mass-market availability of
embedded HSPA/LTE modems in notebook PCs.
Profit from valuable insights about the most successful
business and technology propositions on the market.
Order now!
www.berginsight.com
NGT Research Series
One in five broadband connections
in Europe is now mobile and growth
in North America is set to accelerate
Mobile broadband based on HSPA/LTE and other mobile communication standards has taken off as an important technology for connecting
mobile PCs and tablets to the Internet. The evolution is led by Europe
where HSPA now accounts for 20.6 percent of the total number of
broadband connections, compared to 13.2 percent in North America.
The concept that was first launched as an exclusive business service
is now a mass-market consumer product sold on an intensively competitive market. Consumers are utilizing their mobile broadband connections extensively, pushing the networks to their capacity limits. In
Europe the majority of data traffic on mobile networks is generated by
notebook PC users that surf the Internet. Fair use policies must be implemented to ensure network availability and pricing must be predictable. International roaming is still largely hindered by prohibitive pricing,
making services utterly unattractive to use abroad.
Mobile broadband terminals are available in different forms and shapes.
Four main types have emerged to satisfy different needs – PC-cards,
USB modems, embedded modules and gateways. Berg Insight estimates the total global number of shipped external mobile broadband
devices in 2010 to 92.7 million, with Europe and North America accounting for 27.4 million units and 8.5 million units respectively. In addition, shipments of embedded modules reached an estimated 9.5 million units. Expectations on embedded solutions for mobile PCs have
been high during the past years, but the attach rate is still relatively low
at 4.7 percent in 2010. The European market for external mobile broadband modems grew by 13 percent in 2010. Growth is forecasted to continue with shipments reaching 60 million units in 2016, fuelled by strong
demand for mobility in notebook PCs. Also the North American device
market will experience a rapid growth to reach 25 million shipments in
2016. The device ASP in Europe has fallen steeply over the past years
and reached € 31 in 2010. The North American device market is characterized by a larger mix of mid-range and high-end products, whereby
the ASP remained as high as US$ 87 in 2010. Berg Insight predicts that
the ASP decline rate will slow down significantly in Europe during the
next few years, whereas in North America the ASP will even increase in
2011. This is primarily due to a growing share of HSPA+ and LTE modems and mobile hotspots in the product mix. The EU 23+2 external
device market generated an estimated € 856 million in 2010 while the
North American market generated estimated revenues of € 522 million.
€ billion
Europe
North America
Huawei has established itself as the world’s largest supplier of mobile
broadband terminals holding a market share of 49 percent and has a
particularly strong foothold in Europe. ZTE is the second largest vendor
with clear margins capturing a market share of 31 percent. In North
America, the local vendors Sierra Wireless and Novatel Wireless still
hold strong positions. A vast majority of the external modems shipped
are USB modems, but mobile hotspots are gaining in popularity. Two
of the largest telecom vendors – Ericsson and Qualcomm – entered the
market for embedded solutions in 2008 and have managed to sign contracts with many of the major notebook vendors. The two companies
captured a market share of 83 percent together on this market in 2010.
What are the key drivers behind the adoption of mobile
broadband connectivity?
Which markets have the highest penetration rates and
which are lagging behind?
Who are the leading global providers of mobile broadband
terminal devices?
When will embedded mobile broadband connectivity
become a standard feature in mass-market notebook PCs?
8
What are the critical success factors needed to gain massmarket traction for mobile broadband connectivity?
6
4
How are the operators developing their segmentation and
pricing strategies?
2
0
Berg Insight estimates that the number of mobile broadband subscribers in North America reached 14.6 million by the end of 2010. The subscriber base is forecasted to grow at a CAGR of 25.8 percent to reach
58 million subscribers in 2016. The estimated service revenues were
about US$ 8.3 billion in 2010 and are expected to grow at a CAGR rate
of 12.4 percent to reach US$ 16.6 billion by 2016. The growth in North
America is currently accelerating primarily due to the increasing uptake
of tablet data plans and the introduction of LTE.
What will be the future role of wireless chipset suppliers in
the value chain?
12
10
The European mobile broadband market continues to grow rapidly,
with demand fuelled by declining prices, improved user experience,
massive marketing campaigns and new device categories. Berg Insight
estimates that the total number of mobile broadband subscribers in EU
23+2 grew by 33 percent to reach 33.9 million in 2010, while the estimated operator revenues reached € 5.9 billion. The European mobile
broadband market is expected to grow at a compound annual growth
rate (CAGR) of 12.4 percent to reach € 11.9 billion in 2016. This revenue
growth is driven by strong year-on-year net additions to the subscriber
base, which is projected to reach 96 million by 2016. Today, a majority
of the users subscribe to data bundles for 12 or 24 months, but as the
market matures a majority of new subscribers will only be occasional
users generating lower network ARPU.
Year
2010
2011
2012
2013
2014
2015
2016
Mobile broadband connectivity revenues forecast
(Europe/North America 2010–2016)
How is fixed-mobile convergence and telecom service
bundling going to affect the market?
What impact will LTE have on the mobile broadband
connectivity market?
Table of Contents
1 Market environment
1.1 Internet usage
1.2 The European broadband
communications market
1.2.1 Fixed broadband market
1.2.2 Wireless market
1.3 The North American broadband
communications market
1.3.1 Fixed broadband market
1.3.2 Wireless market
2 Evolved 3G/LTE network
technology
2.1 Wireless technology roadmap
2.1.1 GSM
2.1.2 3G networks UMTS/WCDMA – 3GPP
Release 99
2.1.3 HSDPA – 3GPP Release 5
2.1.4 HSUPA – 3GPP Release 6
2.1.5 HSPA+ – 3GPP Release 7
2.1.6 HSPA+ – 3GPP Release 8 and further
evolution
2.1.7 LTE – 3GPP Release 8, 9 and 10
2.1.8 The CDMA/EVDO track
2.1.9 Other wireless technologies
2.1.10 Comparison of technologies
2.1.11 HSPA+ and LTE network deployments
2.2 Evolution of network infrastructure
2.2.1 From traditional to evolved network
architecture
2.2.2 Improving network backhaul capacity
2.2.3 Expansion to new frequency bands
2.3 Evolution of wireless chipsets
3 Mobile broadband device
vendors
3.1 Mobile Broadband data terminals and
form factors
3.1.1 The mobile broadband connectivity
value chain
3.1.2 USB modems
3.1.3 Gateways
3.1.4 Embedded solutions
3.1.5 PC-cards
3.2 Mobile broadband terminal vendors
3.2.1 Huawei
3.2.2 ZTE
3.2.3 Option
3.2.4
3.2.5
3.2.6
3.2.7
3.2.8
3.2.9
3.2.10
3.2.11
3.2.12
3.2.13
3.2.14
3.3
3.3.1
3.3.2
3.3.3
Novatel Wireless
Sierra Wireless
AnyDATA
BandRich
Onda Communication
Teltonika
Axesstel
C-motech
Samsung
Franklin Wireless
Others
Embedded solution vendors
Ericsson
Qualcomm
Others
4 Notebook PC and tablet
integration
4.1 The global notebook PC and tablet
market
4.1.1 Notebook PC market trends
4.1.2 Notebook PC vendor market shares
4.1.3 Tablet market trends
4.1.4 Tablet vendor market shares
4.2 Integration of mobile broadband in
notebook PCs
4.3 Integration of mobile broadband in
tablets
4.4 Notebook and tablet vendors
4.4.1 Hewlett-Packard
4.4.2 Acer
4.4.3 Dell
4.4.4 Lenovo
4.4.5 Toshiba
4.4.6 ASUS
4.4.7 Apple
4.4.9 Sony
4.4.10 Motorola
4.4.11 Research In Motion
5 Operator strategies for mobile
broadband
5.1 Mobile broadband usage
5.2 Business models
5.2.1 Postpaid subscriptions
5.2.2 Prepaid subscriptions
5.2.3 Bundling with other services
5.3
5.3.1
5.3.2
5.3.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10
5.11
5.12
5.13
5.14
5.15
Pricing and conditions
Pricing
International roaming
Terms of use
3 Group
Deutsche Telecom
France Telecom
KPN Group
Telecom Italia
Telekom Austria
TeliaSonera
Telefónica Group
Vodafone Group
Verizon Wireless
AT&T
Sprint
6.1 Market summary
6.2 Device market
6.2.2 Form factor trends
6.3 The European mobile broadband
service market
6.3.1 Pricing trends
6.3.2 Network technology trends
6.3.3 Service convergence trends
6.4 The North American mobile
broadband service market
6.4.1 Pricing trends
6.4.2 Network technology trends
Glossary
NGT Research Series
Smartphone Markets
and Technologies
Smartphone Markets and Technologies is the second
trends on the worldwide market for smartphone operating
systems and handset technologies.
This report in the NGT Research Series from Berg Insight
Identify the key drivers and barriers for adoption of
smartphones.
Learn about the current strategies of the leading handset
brands.
Evaluate the existing OS platforms from key vendors.
Understand the reshaping of the cellular chipset value
chain and consolidation trends.
Anticipate future smartphone design trends and
technology developments.
Realize the importance of on-device application stores.
Benefit from updated forecasts and extensive statistical
material.
Order now!
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NGT Research Series
Will Android, iOS or Windows Phone
be the winner on the surging smart
phone market?
Mobile phones are by far the most pervasive consumer electronics devices globally. Total handset shipments grew 8 percent in 2010 to 1.3
billion units as the world economy started to recover. Mobile phones
can be divided into segments based on price or device capabilities. For
instance, a broad distinction can be made between smartphones that
support native third party applications and featurephones that do not.
Smartphones is the fastest growing segment with shipments increasing
by almost 74 percent in 2010 to 295 million units. Smartphones are
receiving more attention from handset manufacturers, network operators and application developers. Handset vendors adopt smartphone
operating systems in order to reduce development time and cost for
new advanced handset models. Operators promote smartphones that
drive adoption of postpaid subscriptions and data plans. Both handset
vendors and operators also strive to attract developers that can bring
additional revenues and customer interest from their applications. Most
importantly, an increasing number of users are now discovering how
smartphones can act as personal computing devices enabling access
to the mobile web and applications, besides voice and text services.
Wider availability of mid-tier and low cost smartphones has already led
to a decline in sales of mid- and high-end featurephones. Shipments of
entry handsets with limited or no support for third party applications is
also forecasted to gradually decline as the cost of featurephones and
smartphones become progressively lower and therefore become a viable option for more users. Berg Insight forecasts that shipments of
smartphones will grow from 295 million units in 2010 at a compound
annual growth rate of 32 percent to 1.2 billion units in 2015.
Along with a growing number of device manufacturers and software
developers entering the mobile industry, the number of smartphone
operating systems available has also increased. The early smartphone
operating systems Symbian, Windows Mobile and BlackBerry OS have
been joined by new proprietary operating systems such as Apple’s iOS
and Samsung’s Bada OS. Several Linux-based operating systems including Android, LiMo, webOS and MeeGo have also been released.
In addition to basic operating systems for featurephones, many handset vendors now use multiple smartphone operating systems across
their device portfolios. While this creates a broad choice of devices for
customers, it also creates increased development costs for handset
Android became the leading smartphone OS in Q4-2011 with 32 million handsets shipped – about two million more than Symbian. The slow
progress of its development of the improved Symbian platform and the
MeeGo platform for high-end smartphones ultimately led to Nokia’s radical change of strategy to adopt Windows Phone as its main operating
system for smartphones. Symbian remained the leading smartphone
OS based on annual shipments with 107 million units, ahead of Android
with 69 million handsets shipped in 2010. Apple’s continued success
with its iPhone handsets enabled the iOS platform to outsell BlackBerry
handsets in the second half of 2010 to become the third largest operating system. For the full year, both RIM and Apple each shipped about 48
million smartphones. Like Symbian, Microsoft’s Windows Mobile platform has lost market share consistently after the iPhone and Android
appeared on the market. Microsoft introduced its completely redesigned
Windows Phone 7 platform in October 2010. The new platform has been
relatively well received even though the first handsets using the platform
do not compare favourably with the licensees best handsets based on
other platforms in terms of hardware design.
Over the years, thousands of applications have been developed for
Palm, BlackBerry, Windows Mobile and Symbian smartphones. At first,
application developers had difficulties to reach a broad user base in absence of a suitable delivery channel. In 2008, the Apple App Store was
launched with immediate success removing this hurdle. All leading operating system providers and handset vendors have now launched their
own application stores. Berg Insight estimates that the total number of
downloaded applications for smartphones grew from 3 billion globally
in 2009 to about 9.5 billion in 2010. Revenues from applications have at
the same time doubled year-on-year to € 4 billion in 2010.
What is driving the adoption of smartphones?
What are the key differences between smartphone
operating systems and traditional handset software?
What are the OS strategies of the leading smartphone
vendors?
Million units
1200
Who are the leading developers of chipsets for
smartphones?
1000
What are the secrets behind the tremendous success of
application stores?
800
600
What is the technology development roadmap for
smartphones in the coming years?
400
200
0
vendors and fragmentation for application developers. However, maturing web technologies for handsets will eventually facilitate service
deployment on handsets in the same way the browser has become the
primary delivery platform for PCs.
Year
2009
2010
2011
2012
2013
2014
2015
Annual shipments of smartphones (Worldwide 2009–2015)
Who will be the key smartphone vendors in the future
and who are the main market challengers?
How will the installed base of smartphones develop in
the future?
Table of Contents
1 Mobile handsets and smartphones
1.1
1.1.1
1.1.2
1.2
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.3
1.3.1
1.3.2
1.3.3
1.3.4
2 Smartphone operating systems
2.1
2.1.1
2.1.2
2.2
2.2.1
2.2.2
2.3
2.3.1
2.3.2
2.4
2.4.1
2.4.2
2.5
2.5.1
2.5.2
2.5.3
2.6
2.6.1
2.6.2
Overview of handset segments
Main handset segments
Popular handset categories and form factors
Introduction to smartphones
Smartphone operating system technologies
Proliferation of smartphone operating
systems
Growing end-user demand for smartphones
Mobile network operators show interest in
smartphones and apps
Application stores provide a new channel to
the market for developers
Smartphone trends
Evolution of smartphone ecosystems
Evolution of smartphone input mechanisms
and user interfaces
High-end smartphones challenge PCs
Best selling smartphones in 2010
2.7
2.7.1
2.7.2
2.8
2.8.1
2.8.2
2.8.3
The Android platform
Android OS versions and features
Android development tools
BlackBerry OS
BlackBerry OS versions
BlackBerry OS development tools
iOS
iOS versions and features
iOS development tools
MeeGo
Linux distribution with support for multiple
portable and connected devices
Application development frameworks and
tools
Microsoft operating systems for handsets
Windows Mobile to be consigned to niche
markets
Windows Phone 7 increases focus on
consumer devices
Development tools for Windows Phone 7
Symbian
Current Symbian versions
Symbian transitions to a continuous
improvement model
WebOS
WebOS versions
WebOS development tools
Other handset operating systems
Brew MP
Samsung’s Bada platform
LiMo Platform
3 Application stores
3.1 Overview of application stores
3.1.1 Vendor independent application stores
target multiple platforms
3.1.2 Application store revenues
3.2 OS developer application stores
3.2.1 Android Market
3.2.2 Windows Marketplace for Mobile and
3.3 Device vendor application stores
3.3.1 The Apple App Store
3.3.2 BlackBerry App World
3.3.3
3.3.4
3.3.5
3.3.6
3.3.7
3.3.8
3.4
3.4.1
3.4.2
3.4.3
3.4.4
3.4.5
3.4.6
HP App Catalog
Motorola Shop4apps
Nokia Ovi Store
Samsung Apps
LG Application Store
Sony Ericsson PlayNow Arena
Operator application stores
The Wholesale Application Community
AT&T AppCenter
China Mobile Market
Orange Application Shop
Verizon V CAST Apps
Vodafone 360 Shop
4 Handset hardware platforms
4.1 Overview of handset hardware platforms
4.1.1 Handset hardware components
4.1.2 Wireless connectivity technologies
4.2 Mobile application processor
technologies
4.2.1 Smartphones are the new battleground
between ARM and x86 processors
4.2.2 Discrete application processors power highend smartphones
4.2.3 Integrated communication processors
enable cost efficient devices
4.3 The handset chipset industry
4.3.1 Industry consolidation continues
4.3.2 Handset baseband vendors
4.3.3 Connectivity chipset vendors
4.3.4 Sensor IC vendors
4.4 Cellular connectivity and handset
platform vendors
4.4.1 Broadcom
4.4.2 Freescale Semiconductor
4.4.3 Intel
4.4.4 Marvell
4.4.5 MediaTek
4.4.6 Nvidia
4.4.7 Qualcomm
4.4.8 Renesas Electronics
4.4.9 ST-Ericsson
5 Handset manufacturers
5.1 The handset market in 2010
5.1.1 Device shipments reach new record
5.1.2 Smartphone sales drive handset revenues to
an all-time high
5.2 Nokia
5.2.2 Market analysis
5.3 Research In Motion
5.4 Apple
5.5 HTC
5.6 Samsung Electronics
5.7 Motorola
5.8 Sony Ericsson
5.9 LG Electronics
5.10 Second tier smartphone vendors
5.10.1 Acer
5.10.2 Dell
5.10.3 Fujitsu Toshiba Mobile Communications
5.10.4 Hewlett Packard
5.10.5 Huawei
5.10.6 Kyocera Sanyo Telecom
5.10.7 Lenovo Mobile Communications
5.10.8 NEC Casio Mobile Communications
5.10.9 Panasonic Mobile Communications
5.10.10 Pantech
5.10.11 Sharp
5.10.12 TCL Communication
5.10.13 ZTE
6.1 Market trends
6.1.1 Changing demands reshapes the wireless
chipset industry
6.1.2 Focus on smartphones among vendors and
operators is accelerating
6.1.3 Web technologies will eventually overtake
native applications
6.1.4 Smartphone operating systems are
becoming ecosystems
6.2 Smartphone shipments and market
shares
6.2.1 Handset shipments by segment
6.2.2 Smartphone shipments by geography
6.2.3 Smartphone shipments by OS
6.2.4 Smartphone shipments by vendor
6.3 Handset shipment forecasts
6.3.1 Handset shipment forecasts by primary
access technology
6.3.2 Handset shipment forecasts by feature and
price segment
6.3.3 Smartphone shipment forecasts by segment
6.3.4 Smartphone shipment forecasts by region
6.3.5 Smartphone shipment forecasts by
operating system
Glossary

Berg Insight Report Catalogue

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