18.11.2013 Views

Berg Insight Report Catalogue

Berg Insight Report Catalogue

Berg Insight Report Catalogue

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>Berg</strong> <strong>Insight</strong> <strong>Report</strong> <strong>Catalogue</strong><br />

OFFICE<br />

Viktoriagatan 3<br />

S-411 25 Gothenburg<br />

Sweden<br />

CUSTOMER SERVICE<br />

Phone: (46) 31 711 30 91<br />

E-mail: info@berginsight.com<br />

Web: www.berginsight.com<br />

© Copyright 2012 <strong>Berg</strong> <strong>Insight</strong>,<br />

All rights reserved<br />

STRATEGIC REPORT RESEARCH CATALOGUE SERIES<br />

SERIES


Table of Contents<br />

Wireless M2M Research Series<br />

Fleet Management in Europe – 7th Edition 3<br />

Fleet Management in the Americas – 2nd Edition 6<br />

Retail Applications and Wireless M2M – 2nd Edition 9<br />

The Global Wireless M2M Market – 4th Edition 12<br />

Consumer Electronics and Wireless M2M – 2nd Edition 15<br />

Container Tracking and Security 18<br />

mHealth and Home Monitoring – 4th Edition 21<br />

ITS in Public Transport 24<br />

Smart Metering in North America and Asia-Pacific – 2nd Edition 27<br />

Smart Metering in Europe – 8th Edition 30<br />

Security Applications and Wireless M2M – 4th Edition 33<br />

Smart Homes and Home Automation 36<br />

Car Telematics and Wireless M2M – 5th Edition 39<br />

LBS Research Series<br />

Location-Based Advertising and Marketing 42<br />

Mobile Navigation Services and Devices – 5th Edition 45<br />

Mobile Location-Based Services – 6th Edition 48<br />

LBS Platforms and Technologies – 3rd Edition 51<br />

Mobile VAS Research Series<br />

Mobile Advertising and Marketing – 5th Edition 54<br />

The Mobile Application Market 57<br />

Mobile Money in Emerging Markets 60<br />

Next Generation Technology Research Series<br />

Small Cells and Wi-Fi Offloading 63<br />

Handset Connectivity Technologies – 3rd Edition 66<br />

The Mobile Broadband Connectivity Market – 6th Edition 69<br />

Smartphone Markets and Technologies – 2nd Edition 72<br />

STRATEGIC REPORT RESEARCH CATALOGUE SERIES<br />

SERIES


M2M Research Series<br />

Fleet Management<br />

in Europe<br />

Fleet management in Europe is the seventh consecutive report<br />

from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments on the fleet<br />

management market in this region.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you with<br />

150 pages of unique business intelligence, including 5-year industry<br />

forecasts, expert commentary and real-life case studies on which to<br />

base your business decisions.<br />

Highlights from the seventh edition of this report:<br />

<strong>Insight</strong>s from 40 new executive interviews with market<br />

leading companies.<br />

New data on vehicle populations and commercial fleets in<br />

Europe.<br />

Comprehensive overview of the fleet management value<br />

chain and key applications.<br />

In-depth analysis of market trends and key developments.<br />

Updated profiles of 67 aftermarket fleet management solution<br />

providers.<br />

Summary of OEM propositions from truck, trailer and<br />

construction equipment brands.<br />

Revised market forecasts lasting until 2016.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging wireless M2M market?<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific<br />

vertical application area such as smart metering, fleet management or vehicle<br />

telematics. Once per year we also publish summaries of our research with detailed<br />

forecasts for the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

A second wave of market consolidation<br />

anticipated for 2013<br />

Fleet management is an ambiguous term used in reference to a wide<br />

range of solutions for different vehicle-related applications. <strong>Berg</strong> <strong>Insight</strong>’s<br />

definition of a fleet management solution is a vehicle-based system that<br />

incorporates data logging, satellite positioning and data communication<br />

to a backoffice application. The history of fleet management solutions<br />

goes back several decades. On-board vehicle computers first emerged<br />

in the 1980s and were soon connected to various satellite and terrestrial<br />

wireless networks. Today mobile networks can provide ubiquitous online<br />

connectivity at a reasonable cost and mobile computing technology<br />

delivers very high performance, as well as excellent usability. All of these<br />

components combined enable the delivery of vehicle management,<br />

transport management, driver management and mobile workforce<br />

management applications linking vehicles and enterprise IT systems.<br />

Commercial vehicle fleets play an essential role in the European economy.<br />

According to official statistics there were 35.5 million commercial<br />

vehicles in use in EU23+2 in 2008. The 6.2 million medium and heavy<br />

trucks accounted for more than 75 percent of all inland transports, forming<br />

a € 250 billion industry. Approximately 0.7 million buses and coaches<br />

stood for 9.3 percent of all passenger kilometres. Last but not least, the<br />

greater part of the 28.6 million light commercial vehicles (LCV) in Europe<br />

was used by mobile workers and for activities such as distribution of<br />

goods and parcels.<br />

<strong>Berg</strong> <strong>Insight</strong> is of the opinion that the European fleet management market<br />

has entered a growth period that will last for several years to come.<br />

Individual markets may however suffer temporary setbacks, depending<br />

on the local economic developments. The number of fleet management<br />

systems in active use is forecasted to grow at a compound annual growth<br />

rate of 17.9 percent from 2.5 million units at the end of 2011 to 5.7 million<br />

by 2016. The penetration rate in the total population of non-privately<br />

owned commercial vehicles is estimated to increase from 8.8 percent in<br />

2011 to 20.1 percent in 2016.<br />

A group of international aftermarket solution providers have emerged as<br />

the leaders on the European fleet management market. Masternaut is<br />

ranked as the largest player overall in terms of installed base with close<br />

to 250,000 units deployed, mainly in France and the UK. TomTom Business<br />

Solutions was the fastest growing vendor also in 2011 and has now<br />

surpassed 200,000 subscribers. Transics is number one in the<br />

Million units<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Year<br />

heavy trucks segment with an estimated 75,000 active units installed.<br />

Other significant players include European companies such<br />

as Vehco, Navman Wireless, TRACKER and Trafficmaster and international<br />

players like Trimble and Qualcomm from the US and the<br />

South African telematics providers DigiCore and MiX Telematics.<br />

All major truck manufacturers on the European market offer OEM telematics<br />

solutions as a part of their product portfolio. Mercedes-Benz, Volvo<br />

and Scania launched their first products in the 1990s and followed by<br />

MAN in 2000, Renault Trucks in 2004, DAF Trucks in 2006 and Iveco in<br />

2008. The products are all supporting the FMS standard and can generally<br />

be deployed in mixed fleets even if some functionality can be brandspecific.<br />

A major trend in the past year has been the announcements<br />

of standard line fitment of fleet management solutions. Since the end of<br />

2011, Scania is rolling out the Scania Communicator as standard on all<br />

European markets and includes a four year basic service subscription.<br />

The new generation of the Actros trucks from Mercedes-Benz contains<br />

the FleetBoard vehicle computer as standard in all EU27 countries since<br />

October 2011. Volvo is going in the same direction offering Dynafleet as<br />

standard in some markets. MAN TeleMatics is since July 2012 standard<br />

on the new truck model TGX EfficientLine including a 4-month trial for<br />

the service.<br />

Nine major merger and acquisition activities took place in Europe during<br />

2010 and the first half of 2011. In the past twelve months there has been<br />

a considerable slowdown of activities and no major events occurred.<br />

<strong>Berg</strong> <strong>Insight</strong> anticipates that a second wave of consolidation is likely to<br />

start in 2013. The latest transaction was done in June 2011 when Transics<br />

acquired the European activities of CarrierWeb. Francisco Partners<br />

acquired Masternaut in April 2011 forming the leading player in Europe<br />

from the Masternaut and Cybit operations. Another acquisition was done<br />

by Vehco in Sweden that acquired Elomobile in France in March 2011.<br />

Trimble acquired Punch Telematix in July 2010 and DigiCore acquired in<br />

the same month Minorplanet in the UK along with the associated businesses<br />

in the Netherlands, Belgium and Germany.<br />

This report answers the following questions:<br />

Is the European fleet management market back on<br />

a growth track after the economic crisis?<br />

Will the FM industry consolidate further during 2012<br />

and 2013?<br />

What is the geographical and ownership structure of<br />

commercial vehicle fleets in Europe?<br />

Who are the leading international and regional<br />

providers of aftermarket fleet management solutions<br />

in Europe?<br />

What offerings are available from truck, trailer and<br />

construction equipment OEMs?<br />

What impact will the launch of standard factory<br />

installed FM systems from the OEMs have on<br />

the market?<br />

How will the commercial vehicle telematics industry<br />

evolve in the future?<br />

Installed base of active fleet management units (EU27+2 2010–2016)


Table of Contents<br />

Executive summary<br />

1 Commercial vehicle fleets in<br />

Europe<br />

1.1 Light commercial vehicles<br />

1.2 Medium and heavy trucks<br />

1.3 Buses and coaches<br />

1.4 Trailers and semi-trailers<br />

1.5 Off-road construction and<br />

agriculture equipment<br />

1.6 Ownership structure<br />

1.6.1 Statistical estimates by industry and<br />

company size<br />

1.6.2 Light commercial vehicle fleets<br />

1.6.3 Medium and heavy commercial<br />

vehicle fleets<br />

2 Fleet management solutions<br />

2.1 Fleet management infrastructure<br />

2.1.1 Vehicle segment<br />

2.1.2 GNSS segment<br />

2.1.3 Network segment<br />

2.1.4 Backoffice segment<br />

2.2 Vehicle management<br />

2.2.1 Vehicle diagnostics and maintenance<br />

planning<br />

2.2.2 Security tracking<br />

2.3 Driver management<br />

2.3.1 Driving data registration and analysis<br />

2.3.2 Eco-driving schemes<br />

2.3.3 Insurance risk management<br />

2.4 Operations management<br />

2.4.1 Routing and navigation<br />

2.4.2 Transport management<br />

2.4.3 Mobile workforce management<br />

2.5 Regulatory compliance and<br />

reporting<br />

2.5.1 Digital tachograph data download<br />

2.5.2 Electronic toll collection<br />

2.5.3 Other applications<br />

2.6 Business models<br />

3 Market forecasts and trends<br />

3.1 Market analysis<br />

3.1.1 Installed base and unit shipments<br />

3.1.2 Regional markets<br />

3.1.3 Vendor market shares<br />

3.2 Market drivers and barriers<br />

3.2.1 Macroeconomic environment<br />

3.2.2 Regulatory environment<br />

3.2.3 Competitive environment<br />

3.2.4 Technology environment<br />

3.3 Value chain analysis<br />

3.3.1 Telematics industry players<br />

3.3.2 Automotive industry players<br />

3.3.3 Telecom industry players<br />

3.3.4 IT industry players<br />

3.4 Future industry trends<br />

4 OEM products and strategies<br />

4.1 Truck manufacturers<br />

4.1.1 Daimler Group<br />

4.1.2 Volvo Group<br />

4.1.3 Scania<br />

4.1.4 MAN Truck & Bus<br />

4.1.5 DAF Trucks<br />

4.1.6 Iveco<br />

4.2 Construction equipment<br />

manufacturers<br />

4.2.1 Bobcat and JCB<br />

4.2.2 Caterpillar<br />

4.2.3 Hyundai Construction Equipment<br />

4.2.4 John Deere<br />

4.2.5 Komatsu<br />

4.2.6 Volvo CE<br />

4.3 Trailer manufacturers<br />

4.3.1 Schmitz Cargobull<br />

4.3.2 Krone<br />

4.3.3 Kögel<br />

4.4 OE suppliers<br />

4.4.1 Actia<br />

4.4.2 Continental<br />

4.4.3 Haldex<br />

4.4.4 Stoneridge Electronics<br />

4.4.5 WABCO<br />

4.5 Hardware and software providers<br />

4.5.1 Advantech-DLoG<br />

4.5.2 Aplicom<br />

4.5.3 Calamp<br />

4.5.4 Mobile Devices<br />

4.5.5 Phoenix International<br />

4.5.6 Pointer Telocation<br />

4.5.7 Quake Global<br />

4.5.8 Squarell<br />

5 International aftermarket<br />

solution providers<br />

5.1 DigiCore<br />

5.2 Garmin and partners<br />

5.3 Masternaut<br />

5.4 MiX Telematics<br />

5.5 Navman Wireless<br />

5.6 Qualcomm Enterprise Services<br />

5.7 TomTom Business Solutions<br />

5.8 Trafficmaster<br />

5.9 Transics<br />

5.10 Trimble<br />

5.11 Vehco<br />

6 Regional aftermarket<br />

solution providers<br />

6.1 Benelux and France<br />

6.1.1 Eliot<br />

6.1.2 Fleetlogic<br />

6.1.3 Geodynamics<br />

6.1.4 GreenCat<br />

6.1.5 IT Mobile<br />

6.1.6 Micpoint<br />

6.1.7 Novacom Europe<br />

6.1.8 OCEAN<br />

6.1.9 Orange Business Services<br />

6.1.10 RAM Mobile Data<br />

6.1.11 Traqueur<br />

6.2 Germany and Central Europe<br />

6.2.1 AutoGuard<br />

6.2.2 CVS Mobile<br />

6.2.3 ETA Automatizari Industriale<br />

6.2.4 Euro Telematik<br />

6.2.5 Falcom<br />

6.2.6 Finder<br />

6.2.7 Framelogic<br />

6.2.8 IAV<br />

6.2.9 Idem<br />

6.2.10 Mireo<br />

6.2.11 Mobile Objects<br />

6.2.12 Sherlog Trace<br />

6.2.13 Telargo<br />

6.2.14 Yellowfox<br />

6.3 The Mediterranean<br />

6.3.1 Cefin Systems<br />

6.3.2 Cobra Automotive Technologies<br />

6.3.3 Coordina<br />

6.3.4 Datatronics Mobility<br />

6.3.5 Detector<br />

6.3.6 Frotcom International<br />

6.3.7 G4S Telematix<br />

6.3.8 Inosat<br />

6.3.9 Loqus<br />

6.3.10 MobiVision<br />

6.3.11 Tecmic<br />

6.4 Nordic countries<br />

6.4.1 Consafe Logistics<br />

6.4.2 Fleet 101<br />

6.4.3 Fleetech<br />

6.4.4 GateHouse<br />

6.4.5 Locus<br />

6.4.6 PocketMobile<br />

6.5 UK and Ireland<br />

6.5.1 Aeromark<br />

6.5.2 Blue Tree Systems<br />

6.5.3 Celtrak<br />

6.5.4 FleetMatics<br />

6.5.5 GreenRoad<br />

6.5.6 Isotrak<br />

6.5.7 Lysanda<br />

6.5.8 Matrix Telematics<br />

6.5.9 Microlise<br />

6.5.10 Quartix<br />

6.5.11 TRACKER Network<br />

6.5.12 Trakm8<br />

6.5.13 Transpoco<br />

6.5.14 Webtech Wireless<br />

Glossary


M2M Research Series<br />

Fleet Management<br />

in the Americas<br />

Fleet Management in the Americas is the second consecutive<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments on the<br />

fleet management market in the Americas.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you with<br />

190 pages of unique business intelligence, including 5-year industry<br />

forecasts, expert commentary and real-life case studies on which to<br />

base your business decisions.<br />

Highlights from this report:<br />

<strong>Insight</strong>s from 30 new executive interviews with market<br />

leading companies.<br />

Data on vehicle populations and commercial fleets in<br />

Americas.<br />

Comprehensive overview of the fleet management value<br />

chain and key applications.<br />

In-depth analysis of market trends and key developments.<br />

Updated profiles of 60 aftermarket fleet management solution<br />

providers.<br />

Summary of OEM propositions from truck and construction<br />

equipment brands.<br />

Revised market forecasts lasting until 2016.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging wireless M2M market?<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific<br />

vertical application area such as smart metering, fleet management or vehicle<br />

telematics. Once per year we also publish summaries of our research with detailed<br />

forecasts for the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Automotive OEM activities and new<br />

regulatory developments favour the fleet<br />

management market in the Americas<br />

Fleet management (FM) is an ambiguous term used in reference to a wide<br />

range of solutions for different vehicle-related applications. <strong>Berg</strong> <strong>Insight</strong>’s<br />

definition of an FM solution is a vehicle-based system that incorporates<br />

data logging, satellite positioning and data communication to a backoffice<br />

application. The history of FM solutions goes back several decades.<br />

On-board vehicle computers first emerged in the 1980s and were soon<br />

connected to various satellite and terrestrial wireless networks. Today<br />

mobile networks can provide ubiquitous online connectivity in many<br />

regions at a reasonable cost and mobile computing technology delivers<br />

very high performance, as well as excellent usability. All of these components<br />

combined enable the delivery of vehicle management, transport<br />

management, driver management and mobile workforce management<br />

applications linking vehicles and enterprise IT systems.<br />

Commercial vehicle fleets play an essential role in the economy both<br />

in North and Latin America. In North America, there are approximately<br />

12.7 million GVW 3–8 commercial vehicles in use. An estimated<br />

25.5 million GVW 1–2 vehicles are also owned by enterprises or public<br />

entities. In Latin America, the number of commercial vehicles in operation<br />

is estimated to 21.9 million, out of which 5.9 million are heavy<br />

trucks and 16.0 million are light commercial vehicles. <strong>Berg</strong> <strong>Insight</strong> is of<br />

the opinion that the market for fleet management in the Americas is in<br />

a growth period which was temporarily slowed down by the financial<br />

downturn but will continue in the years to come. The advanced North<br />

American market will remain on a growth track, not the least driven<br />

by regulatory developments such as CSA and the forthcoming EOBR<br />

mandate. Latin America is coming from a lower degree of maturity in<br />

the utilisation of fleet management solutions and will also experience<br />

an increase in adoption. In many cases, an educational process may<br />

however be needed in order to increase the awareness among prospective<br />

users about the potential that FM solutions have beyond mere<br />

security related features.<br />

<strong>Berg</strong> <strong>Insight</strong> expects the market for fleet management to continue to<br />

show healthy growth in 2012. In North America, the number of fleet<br />

management systems in active use is forecasted to grow at a compound<br />

annual growth rate (CAGR) of 15.9 percent from 2.8 million units in 2011<br />

to 5.9 million units by 2016. The penetration rate in the total population<br />

Million units<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

2011<br />

North America<br />

2012<br />

2013<br />

Latin America<br />

2014<br />

2015<br />

2016<br />

Installed base of active fleet management units (Americas 2011–2016)<br />

Year<br />

of non-privately owned commercial vehicles is estimated to increase<br />

from 7.9 percent in 2011 to 16.4 percent in 2016. In Latin America, the<br />

number of fleet management systems in use is projected to increase<br />

from 1.3 million units in 2011, growing at a CAGR of 16.6 percent to<br />

reach 2.8 million units in 2016. The penetration rate among non-privately<br />

owned commercial vehicles in the region is estimated to increase from<br />

5.9 percent in 2011 to 12.8 percent in 2016.<br />

The market leaders on the fleet management market in the Americas<br />

include a range of different actors. Qualcomm Enterprise Services is<br />

ranked as the largest player, with an estimated total installed base of<br />

approximately 450,000 units in North and Latin America. The company’s<br />

solutions are targeted at heavy trucks, where the main competitors in<br />

North America include Xata and PeopleNet. Trimble which previously<br />

mainly focused on service fleets now has a total installed base of<br />

360,000 units following the acquisition of PeopleNet. Other actors focusing<br />

on service fleets include FleetMatics, Networkfleet, NexTraq and<br />

Wireless Matrix. Several actors also have a broader market scope, covering<br />

both light and heavy vehicles. Examples include Telogis, Teletrac,<br />

Zonar Systems and Webtech Wireless. Major Brazilian providers<br />

include Autotrac, Zatix and OnixSat, each having estimated installed<br />

bases in the range of 50,000–85,000 units. Other notable actors in Latin<br />

America include Copiloto Satelital and Grupo UDA in Mexico, Satrack<br />

in Colombia, and Tastets System and Wisetrack in Chile, each holding<br />

important positions in their respective countries.<br />

Most commercial vehicle manufacturers active in the Americas offer<br />

OEM telematics solutions – either independently or in partnership with<br />

established FM providers – with examples such as Volvo Link and Ford<br />

Crew Chief on the US market. Hino <strong>Insight</strong> was announced in 2011,<br />

as was Virtual Technician for Daimler’s Freightliner and Western Star<br />

trucks. Paccar’s TruckerLink service was also introduced during the<br />

year. Daimler’s FleetBoard and Volvo’s Dynafleet have moreover been<br />

launched in Brazil, while Scania Fleet Management is rolled out in Latin<br />

America. MAN Latin America offers the Volksnet solution and Iveco has<br />

further developed the system Frota Fácil. FM solutions from OEMs have<br />

not yet been particularly successful in the Americas, but are expected to<br />

increase in importance in the coming years.<br />

This report answers the following questions:<br />

Will the FM industry consolidate further during 2012?<br />

How has the economic crisis affected the market for<br />

fleet management solutions in the Americas?<br />

What is the geographical structure of commercial<br />

vehicle fleets in the Americas?<br />

Who are the leading international and regional<br />

providers of aftermarket fleet management solutions in<br />

the Americas?<br />

What offerings are available from truck and<br />

construction equipment OEMs?<br />

How will the regulatory developments in the Americas<br />

affect the fleet management industry?<br />

What differences are there between the North and<br />

Latin American markets?<br />

How will the commercial vehicle telematics industry<br />

evolve in the future?


Table of Contents<br />

1 Commercial vehicle fleets in<br />

the Americas<br />

1.1 The North American commercial<br />

vehicle market<br />

1.1.1 Registrations of commercial vehicles<br />

GVW 3–8<br />

1.1.2 Manufacturer market shares<br />

1.1.3 Ownership structure<br />

1.1.4 Trailers<br />

1.2 The Latin American commercial<br />

vehicle market<br />

1.2.1 Registrations of commercial vehicles<br />

1.2.2 Manufacturer market shares<br />

2 Fleet management solutions<br />

2.1 Fleet management infrastructure<br />

2.1.1 Vehicle segment<br />

2.1.2 GNSS segment<br />

2.1.3 Network segment<br />

2.1.4 Backoffice segment<br />

2.2 Vehicle management<br />

2.2.1 Vehicle diagnostics and maintenance<br />

planning<br />

2.2.2 Security tracking<br />

2.3 Driver management<br />

2.3.1 Driving data registration and analysis<br />

2.3.2 Eco-driving schemes<br />

2.3.3 Insurance risk management<br />

2.4 Operations management<br />

2.4.1 Routing and navigation<br />

2.4.2 Transport management<br />

2.4.3 Mobile workforce management<br />

2.5 Regulatory compliance and<br />

reporting<br />

2.5.1 CSA – Compliance, Safety,<br />

Accountability<br />

2.5.2 Hours-of-Service and electronic onboard<br />

recorders<br />

2.5.3 Fuel tax reporting<br />

2.5.4 Distracted driving<br />

2.5.5 Mandatory anti-theft systems in Brazil<br />

2.5.6 Other applications<br />

2.6 Business models<br />

3 Market forecasts and trends<br />

3.1 Market analysis<br />

3.1.1 Installed base and unit shipments –<br />

North and Latin America<br />

3.1.2 Vendor market shares<br />

3.2 Market drivers and barriers<br />

3.2.1 Macroeconomic enviroment<br />

3.2.2 Regulatory environment<br />

3.2.3 Competitive environment<br />

3.2.4 Technology environment<br />

3.3 Value chain analysis<br />

3.3.1 Telematics industry players<br />

3.3.2 Automotive industry players<br />

3.3.3 Telecom industry players<br />

3.3.4 IT industry players<br />

3.4 Future industry trends<br />

4 OEM products and strategies<br />

4.1 Truck manufacturers<br />

4.1.1 Daimler Group<br />

4.1.2 Ford<br />

4.1.3 Hino Trucks<br />

4.1.4 Iveco<br />

4.1.5 MAN Latin America<br />

4.1.6 Navistar<br />

4.1.7 Paccar<br />

4.1.8 Scania<br />

4.1.9 Volvo Group<br />

4.2 Construction equipment<br />

manufacturers<br />

4.2.1 Bobcat and JCB<br />

4.2.2 Caterpillar<br />

4.2.3 Hyundai Construction Equipment<br />

Americas<br />

4.2.4 John Deere and Hitachi Construction<br />

Machinery<br />

4.2.5 Komatsu<br />

4.2.6 Volvo CE<br />

5 International aftermarket<br />

solution providers<br />

5.1 Digicore<br />

5.2 Garmin and partners<br />

5.3 MiX Telematics<br />

5.4 Navman Wireless<br />

5.5 Qualcomm Enterprise Services<br />

5.6 Telogis<br />

5.7 TomTom Business Solutions<br />

5.8 Trafficmaster<br />

5.9 Trimble<br />

5.10 Webtech Wireless<br />

6 Regional aftermarket solution<br />

providers<br />

6.1 North America<br />

6.1.1 Blue Tree Systems<br />

6.1.2 BSM Wireless<br />

6.1.3 Cadec<br />

6.1.4 CarrierWeb<br />

6.1.5 Celtrak<br />

6.1.6 FieldLogix<br />

6.1.7 Fleet Management Solutions<br />

6.1.8 Fleetilla<br />

6.1.9 FleetMatics<br />

6.1.10 Fleetronix<br />

6.1.11 Geotab<br />

6.1.12 GPS North America<br />

6.1.13 GreenRoad<br />

6.1.14 ID Systems – Asset Intelligence<br />

6.1.15 International Telematics<br />

6.1.16 Inthinc<br />

6.1.17 JJ Keller<br />

6.1.18 Matrix Telematics<br />

6.1.19 Microlise<br />

6.1.20 Navtrak<br />

6.1.21 Networkfleet<br />

6.1.22 NexTraq<br />

6.1.23 PeopleNet<br />

6.1.24 Rand McNally and DriverTech<br />

6.1.25 Safefreight<br />

6.1.26 SkyBitz<br />

6.1.27 Synovia<br />

6.1.28 Telenav<br />

6.1.29 TransCore<br />

6.1.30 Wireless Matrix<br />

6.1.31 Xata<br />

6.1.32 Zonar Systems<br />

6.2 Latin America<br />

6.2.1 Autotrac<br />

6.2.2 Coordina<br />

6.2.3 Copiloto Satelital<br />

6.2.4 Global Track<br />

6.2.5 GPS Chile<br />

6.2.6 Grupo UDA<br />

6.2.7 High Performance Solutions<br />

6.2.8 OnixSat<br />

6.2.9 Pointer Telocation<br />

6.2.10 Sascar<br />

6.2.11 Satrack<br />

6.2.12 SECAR<br />

6.2.13 Tastets System<br />

6.2.14 Tecnolider<br />

6.2.15 Ubicamóvil<br />

6.2.16 Ultra<br />

6.2.17 Wisetrack<br />

6.2.18 Zatix<br />

Glossary


M2M Research Series<br />

Retail Applications<br />

and Wireless M2M<br />

Retail Applications and Wireless M2M is the second consecutive<br />

report from <strong>Berg</strong> <strong>Insight</strong> that gives first-hand insights into the<br />

adoption of wireless connectivity in the vending, parking, ticketing,<br />

ATM and POS terminal markets.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you with<br />

150 pages of unique business intelligence including 5-year industry<br />

forecasts and expert commentary on which to base your business<br />

decisions.<br />

Highlights from the second edition of the report:<br />

<strong>Insight</strong>s from 40 new executive interviews with market leading<br />

companies.<br />

Overview of the payment, vending, parking, transport ticketing<br />

and ATM industries.<br />

Summary of industry trends and developments in each vertical<br />

market segment.<br />

Updated in-depth profiles of 77 key players in the retail industry.<br />

Reviews of vendor market shares and competitive dynamics.<br />

Perspectives on the impact of emerging mobile payment<br />

services.<br />

Extensive global and regional market forecasts lasting until 2017.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging wireless M2M market?<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific<br />

vertical application area such as smart metering, fleet management or vehicle<br />

telematics. Once per year we also publish summaries of our research with detailed<br />

forecasts for the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Cellular M2M connections in the retail<br />

industry surpassed 10 million in 2011<br />

The retail industry is an important vertical for cellular M2M connectivity<br />

with 10.3 million cellular connections today and a potential market size<br />

of nearly 80 million POS terminals, ATMs, vending machines, parking<br />

meters and fare collection devices worldwide. <strong>Berg</strong> <strong>Insight</strong> forecasts<br />

that the number of cellular M2M connections in the retail industry will<br />

grow at a compound annual growth rate (CAGR) of 21.6 percent to<br />

reach 33.2 million connections worldwide in 2017. Shipments of cellular<br />

M2M devices will at the same time increase at a CAGR of 10.7<br />

percent from 5.2 million units in 2011 to 9.6 million units in 2017. Cellular<br />

M2M technology enables devices such as POS terminals and ATMs to<br />

be used at new locations where fixed line connectivity is unavailable<br />

or impractical. The technology has a more transformational effect on<br />

markets such as vending and parking, where machine operators need<br />

to reorganize their operations in order to benefit from the availability of<br />

real-time information.<br />

Wireless connectivity has become a very popular option for POS terminals<br />

and was incorporated in nearly one third of the devices shipped<br />

in 2011. <strong>Berg</strong> <strong>Insight</strong> forecasts that the installed base of cellular POS<br />

terminals will grow at a CAGR of 21.4 percent between 2011 and 2017<br />

to reach 29.4 million units worldwide in 2017. In 2011, approximately<br />

one third of the installed cellular POS terminals globally were in use in<br />

Europe or North America. <strong>Berg</strong> <strong>Insight</strong> anticipates that this share will<br />

decline to less than one fifth by 2017, as emerging markets continue to<br />

account for the vast majority of market growth and retain higher attach<br />

rates for cellular connectivity.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that 24 percent of the ATMs in North America<br />

and 5–10 percent of the ATMs in Europe were connected to cellular networks<br />

in 2011. Wireless M2M is especially relevant for ATMs installed at<br />

off-site locations as it offers greater flexibility, shorter deployment times<br />

and competitive connectivity fees compared to fixed line alternatives.<br />

<strong>Berg</strong> <strong>Insight</strong> forecasts that the number of wirelessly connected ATMs in<br />

the US and Canada will grow at a CAGR of 12.4 percent to reach 0.22<br />

million units by 2017. The number of wirelessly connected ATMs in Europe<br />

are similarly projected to grow at a CAGR of 14.9 percent to reach<br />

0.10 million units in 2017.<br />

Million connections<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

2017<br />

Cellular M2M network connections in the retail industry (World 2011–2017)<br />

Year<br />

The installed base of vending telemetry devices in North America<br />

reached an estimated 0.25 million units at the end of 2011, whereas<br />

the corresponding figure for Europe was 75,000 units. The vending<br />

telemetry market is however still in its infancy in both Europe and<br />

North America, as penetration rates are at 2.0 percent and 3.6 percent<br />

respectively. <strong>Berg</strong> <strong>Insight</strong> expects the adoption rates to accelerate in<br />

both North America and Europe during the next few years, resulting in<br />

compound annual growth rates in the range of 25–30 percent for both<br />

regions. Consequently, the installed base of vending telemetry devices<br />

in North America is projected to reach 1.0 million units by 2017, whereas<br />

the installed base in Europe is forecasted to reach 0.32 million units in<br />

the same year.<br />

The parking industry has been one of the earliest adopters of M2M<br />

communication technology and today approximately 39 percent of the<br />

world’s 0.42 million multi-space meters are connected, primarily to cellular<br />

networks. Connectivity has in contrast to this only recently become<br />

an optional feature in single-space meters, and today only 3 percent of<br />

the world’s 3.2 million single-space meters are connected. <strong>Berg</strong> <strong>Insight</strong><br />

anticipates that connectivity will eventually be incorporated in all parking<br />

meters. <strong>Berg</strong> <strong>Insight</strong> forecasts that 69 percent of the world’s 0.54 million<br />

multi-space meters will have be connected in 2017, whereas 18 percent<br />

of the world’s 2.75 million single-space meters will be connected in the<br />

same year.<br />

Cellular connectivity is incorporated in an estimated 0.1 million fare<br />

collection devices worldwide today, such as on-board ticket vending<br />

machines, stationary vending machines and handheld ticket sales terminals.<br />

<strong>Berg</strong> <strong>Insight</strong> anticipates that the market potential for cellular connectivity<br />

in public transport will expand as account-based fare collection<br />

systems gain ground and increase the need for real-time communication.<br />

However, the number of fare collection devices that incorporate cellular<br />

connectivity is likely to remain relatively modest, as many fare collection<br />

devices can share a communication line with other equipment.<br />

This report answers the following questions:<br />

What is the potential market size for wireless M2M<br />

communication in the retail industry?<br />

Which are the key applications that offer sizable<br />

business opportunities?<br />

Which trends and developments are shaping each<br />

vertical market segment?<br />

Which are the leading providers of vending<br />

telemetry solutions?<br />

When will demand for vending telemetry solutions<br />

accelerate in Europe and North America?<br />

How is the market for wireless ATM connectivity<br />

solutions developing?<br />

Which are the leading providers of connected<br />

parking meters?<br />

What is the attach rate for cellular connectivity in POS<br />

terminals by region?<br />

How is the market for public transport fare collection<br />

systems evolving?


Table of Contents<br />

1 POS terminals and ATMs<br />

1.1 Payment infrastructure<br />

1.1.1 POS terminals<br />

1.1.2 Automated teller machines<br />

1.2 Evolution of electronic payments<br />

1.2.1 EMV migration<br />

1.2.2 Adoption of mobile data<br />

communication solutions<br />

1.2.3 Rollout of NFC-ready terminals<br />

1.3 POS terminal vendors<br />

1.3.1 Atos Worldline<br />

1.3.2 CCV<br />

1.3.3 CyberNet<br />

1.3.4 Equinox Payments<br />

1.3.5 Ingenico<br />

1.3.6 Key Innovations<br />

1.3.7 Margento<br />

1.3.8 PAX Technology<br />

1.3.9 REA Card<br />

1.3.10 Spire Payments<br />

1.3.11 Thyron Systems<br />

1.3.12 VeriFone<br />

1.3.13 ViVOtech<br />

1.4 ATM manufacturers and connectivity<br />

solution providers<br />

1.4.1 Contour Networks<br />

1.4.2 Diebold<br />

1.4.3 Digi International<br />

1.4.4 DPL Group<br />

1.4.5 NCR<br />

1.4.6 OptConnect<br />

1.4.7 Triton<br />

1.4.8 Wincor Nixdorf<br />

2 Vending machines<br />

2.1 Vending industry players<br />

2.1.1 Vending technology providers<br />

2.1.2 Vending machine manufacturers<br />

2.1.3 Product suppliers<br />

2.1.4 Vending operators<br />

2.2 Payment systems<br />

2.2.1 Coin mechanisms and bill validators<br />

2.2.2 Cashless payments<br />

2.2.3 Mobile phone payments and NFC<br />

2.3 Vending telemetry<br />

2.3.1 Remote monitoring of vending<br />

machines<br />

2.3.2 Vending telemetry in Europe<br />

2.3.3 Vending telemetry in North America<br />

2.4 Vending telemetry solution providers<br />

2.4.1 Allomachines<br />

2.4.2 Apriva<br />

2.4.3 BiTX<br />

2.4.4 Cantaloupe Systems<br />

2.4.5 Coinco<br />

2.4.6 cStar Technologies<br />

2.4.7 Mecsel<br />

2.4.8 MEI<br />

2.4.9 Microtronic<br />

2.4.10 Nayax<br />

2.4.11 Smarcom<br />

2.4.12 USA Technologies<br />

2.4.13 Vendon<br />

2.4.14 VendScreen<br />

2.4.15 Vianet<br />

2.5 Vending machine manufacturers<br />

2.5.1 Automated Merchandising Systems<br />

2.5.2 Azkoyen Group<br />

2.5.3 Bianchi Vending Group<br />

2.5.4 Crane<br />

2.5.5 Deutsche Wurlitzer<br />

2.5.6 FAS International<br />

2.5.7 Fastcorp<br />

2.5.8 Jofemar<br />

2.5.9 N&W Global Vending<br />

2.5.10 Rheavendors Group<br />

2.5.11 Royal Vendors<br />

2.5.12 SandenVendo<br />

2.5.13 Seaga<br />

2.5.14 Sielaff<br />

2.5.15 Westomatic<br />

2.5.16 Wittern Group<br />

2.6 Vending operators<br />

2.6.1 Aramark<br />

2.6.2 Autobar Group<br />

2.6.3 Canteen Vending Services<br />

2.6.4 Selecta<br />

2.6.5 Sodexo<br />

3 Parking meters<br />

3.1 The parking industry<br />

3.1.1 Parking industry players<br />

3.1.2 Single-space and multi-space meters<br />

in Europe and North America<br />

3.1.3 Pay-by-phone parking<br />

3.2 Connected parking meters<br />

3.2.1 Mobile data communication solutions<br />

for parking meters<br />

3.2.2 Connected multi-space parking meters<br />

3.2.3 Connected single-space parking<br />

meters<br />

3.3 Parking solution vendor<br />

profiles<br />

3.3.1 Cale Access<br />

3.3.2 Digital Payment Technologies<br />

3.3.3 Duncan Solutions<br />

3.3.4 Hectronic<br />

3.3.5 IPS Group<br />

3.3.6 MacKay Meters<br />

3.3.7 Metric<br />

3.3.8 Parkare Group<br />

3.3.9 Parkeon<br />

3.3.10 POM<br />

3.3.11 Siemens<br />

3.4 Private parking operators<br />

4 Public transport ticketing<br />

4.1 Modal split of passenger transport<br />

4.2 Bus and rail fleets<br />

4.3 Fare collection systems<br />

4.3.1 Fare payment<br />

4.3.2 Fare collection devices<br />

4.3.3 Installed base<br />

4.3.4 Mobile data communication solutions<br />

4.4 Fare collection system vendors<br />

4.4.1 Cubic Transportation Systems<br />

4.4.2 Scheidt & Bachmann<br />

4.4.3 Thales<br />

4.4.4 Vix<br />

4.4.5 Xerox Transportation Solutions<br />

4.4.6 Almex<br />

4.4.7 FARA<br />

4.4.8 Indra<br />

4.4.9 INIT<br />

4.4.10 IVU<br />

5 Forecasts and conclusions<br />

5.1 Wireless M2M in the retail industry<br />

5.1.1 Cellular M2M device shipments<br />

5.1.2 Cellular M2M network connections<br />

5.2 POS terminals<br />

5.2.1 Market developments and trends<br />

5.2.2 Cellular POS terminal market forecast<br />

5.2.3 NFC POS terminal market forecast<br />

5.3 ATMs<br />

5.3.1 Market developments and trends<br />

5.3.2 ATM connectivity market forecast<br />

5.4 Vending machines<br />

5.4.1 Market developments and trends<br />

5.4.2 North American vending telemetry<br />

market forecast<br />

5.4.3 European vending telemetry market<br />

forecast<br />

5.5 Parking meters<br />

5.5.1 Market developments and trends<br />

5.5.2 Connected multi-space parking meter<br />

market forecast<br />

5.5.3 Connected single-space parking meter<br />

market forecast<br />

5.6 Public transport ticketing<br />

5.6.1 Market developments and trends<br />

5.6.2 Market forecast<br />

Glossary


M2M Research Series<br />

The Global Wireless<br />

M2M Market<br />

The Global Wireless M2M Market is the fourth<br />

consecutive report analysing the latest market<br />

developments in all regions of the world.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong><br />

provides you with 220 pages of unique business<br />

intelligence including 5-year industry forecasts<br />

and expert commentary on which to base your<br />

business decisions.<br />

Highlights from the fourth edition of the<br />

report:<br />

360-degree overview of the M2M ecosystem.<br />

Updated profiles of the main suppliers of wireless<br />

M2M modules and software platforms.<br />

Reviews of the M2M strategies of leading mobile<br />

operators.<br />

Summary of industry trends in key vertical market<br />

segments.<br />

Statistical data on M2M adoption in major regions<br />

and industries.<br />

Extensive global and regional market forecasts<br />

lasting until 2016.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging wireless M2M market?<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific<br />

vertical application area such as smart metering, fleet management or vehicle<br />

telematics. Once per year we also publish summaries of our research with detailed<br />

forecasts for the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

What’s next for the wireless M2M<br />

market after reaching 100 million<br />

subscribers?<br />

The global wireless M2M market was strong in 2011, displaying growth<br />

in all major world regions and vertical segments. <strong>Berg</strong> <strong>Insight</strong> estimates<br />

that shipments of cellular M2M devices increased by 35.3 percent to a<br />

new record level of 50.8 million units. Adjusted for churn, this resulted in<br />

net additions of 29.3 million M2M connections in 2011, taking the worldwide<br />

number of cellular M2M subscribers to an estimated 108.0 million.<br />

Until 2016, <strong>Berg</strong> <strong>Insight</strong> forecasts that shipments of cellular M2M devices<br />

are forecasted to grow at a compound annual growth rate (CAGR)<br />

of 24.6 percent to reach 152.2 million units. Due to the wide adoption of<br />

wireless M2M technology across many industries, a substantial share of<br />

M2M device shipments is now generated from replacement sales. As<br />

a result the net increase of M2M subscribers will be substantially lower<br />

than M2M device shipments. <strong>Berg</strong> <strong>Insight</strong> forecasts that the number of<br />

cellular M2M connections will grow at a compound annual growth rate<br />

(CAGR) of 27.2 percent between 2011 and 2016 to reach 359.3 million<br />

at the end of the period.<br />

The most significant market development in 2011 was a major breakthrough<br />

for cellular M2M communication in Asia-Pacific. The number<br />

of M2M subscribers in the region increased by 64 percent to reach approximately<br />

34.5 million at the year-end, fuelled by massive growth in<br />

China that almost doubled its cellular M2M subscriber base to approximately<br />

21 million. North America and Europe recorded annual growth<br />

rates of around 26 percent each. At the end of 2011, the number of M2M<br />

subscribers in the EU and the US was around 30 million and 27 million<br />

respectively. Other world regions accounted for around 20 percent<br />

of the global cellular M2M subscriber base in 2011. Latin America had<br />

an estimated 6.6 million M2M subscribers, with Brazil being the most<br />

advanced country. South Asia and Southeast Asia were in a very early<br />

phase of adoption with few M2M subscribers in major countries such as<br />

India and Indonesia. The Middle East & Africa market was dominated<br />

by South Africa and Turkey, which had in excess of 1 million M2M subscribers<br />

each.<br />

A sweeping change has transformed the wireless modules industry in<br />

the past years. The familiar brand names Siemens, Wavecom, Motorola<br />

and Enfora have disappeared and new players such as Sierra Wireless<br />

and Gemalto are now in charge of developments. Chinese vendors<br />

Million connections<br />

400<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Year<br />

have taken over the domestic market and some of them are starting<br />

on international expansion. Despite a consolidation among Western<br />

vendors, average selling prices for wireless modules continue to decline<br />

and as a result industry revenues have been declining in the past years.<br />

Well executed transformational strategies will be the key to success for<br />

wireless module vendors in the years to come. Extended value propositions,<br />

product innovation and more mergers and acquisitions are some<br />

of the things to expect. Meanwhile software and system solutions has<br />

emerged as the fastest growing segment in the M2M industry. Increasingly<br />

advanced large-scale M2M applications require advanced service<br />

enablement platforms that integrate remote devices, mobile networks<br />

and enterprise applications. A wide range of players are attracted by the<br />

market opportunities in the space, most of them having backgrounds<br />

in embedded solutions, telecom OSS/BSS systems or enterprise application<br />

platforms.<br />

Mobile operators all over the world have announced initiatives for driving<br />

growth in the wireless M2M market over the past years. The first results<br />

are now visible through rapidly increasing numbers of M2M subscribers<br />

and higher revenues. <strong>Berg</strong> <strong>Insight</strong> estimates that the world’s ten largest<br />

telecom operators by revenues had 68.2 million M2M subscribers at the<br />

end of 2011, an increase of around 38 percent year-on-year. Around 3.4<br />

percent of their aggregated base of 2.0 billion mobile subscribers was<br />

M2M devices. China Mobile is believed to have emerged as the world’s<br />

largest provider of M2M connectivity during 2011, with an estimated 14<br />

million subscribers at the year-end. AT&T established a clear leadership<br />

in the US with 13.1 million M2M subscribers, up 40 percent yearon-year.<br />

Meanwhile Verizon Wireless’ M2M subscriber base increased<br />

modestly to around 8.6 million. Vodafone held the number three spot<br />

with approximately 9 million M2M connections, ahead of T-Mobile and<br />

Telefónica, which ended the year with around 6–8 million M2M connections<br />

each. China Telecom entered the top ten with around 4.5 million<br />

M2M subscribers, racing ahead of Telenor, Sprint and Orange at 2.5–3.5<br />

million connections each.<br />

This report answers the following questions:<br />

How will the global wireless M2M market evolve over<br />

the next five years?<br />

What are the main drivers behind growth in Europe<br />

and North America?<br />

What is the status of M2M in emerging markets?<br />

Which vertical market segments will be most<br />

important for driving future growth?<br />

What are the leading global mobile operators’<br />

strategies for the M2M market?<br />

How are SIM technology vendors positioning<br />

themselves in M2M?<br />

How will the emergence of wirelessly enabled<br />

consumer electronics change the market?<br />

Which are the leading providers of M2M service<br />

delivery and application platforms?<br />

Cellular M2M network connections (World 2010 -2016)


Table of Contents<br />

1 Introduction to wireless M2M<br />

1.1 Introduction<br />

1.2 Devices<br />

1.2.1 Chipsets, modules and terminals<br />

1.2.2 Device design and machine integration<br />

1.2.3 Value chain<br />

1.3 Networks<br />

1.3.1 GSM/HSPA networks<br />

1.3.2 CDMA networks<br />

1.3.3 LTE networks<br />

1.3.4 Other wireless networks<br />

1.3.5 Wireless M2M connectivity solutions<br />

1.4 Applications<br />

1.4.1 Car telematics<br />

1.4.2 Fleet management<br />

1.4.3 Smart grids and intelligent metering<br />

1.4.4 Fixed wireless communication<br />

1.4.5 Remote control and monitoring<br />

1.4.6 Consumer electronics<br />

1.5 Solution providers and integrators<br />

1.5.1 Device manufacturers<br />

1.5.2 System integrators<br />

1.5.3 Vertical ASPs<br />

1.5.4 B2B/B2C service providers<br />

1.5.5 OEMs<br />

2 M2M technology providers<br />

2.1 Wireless M2M module vendors<br />

2.1.1 Sierra Wireless<br />

2.1.2 Cinterion<br />

2.1.3 Telit<br />

2.1.4 Novatel Wireless<br />

2.1.5 u-blox<br />

2.1.6 Sagemcom<br />

2.1.7 AnyDATA<br />

2.1.8 Option<br />

2.1.9 SIMCom<br />

2.1.10 Huawei<br />

2.1.11 ZTE<br />

2.1.12 Second tier Asian embedded module<br />

vendors<br />

2.2 Mobile security and SIM solution<br />

vendors<br />

2.2.1 Gemalto<br />

2.2.2 Giesecke & Devrient<br />

2.2.3 Oberthur Technologies<br />

2.2.4 Safran Morpho<br />

2.3 M2M platform and software<br />

providers<br />

2.3.1 Amdocs<br />

2.3.2 Axeda<br />

2.3.3 Comarch<br />

2.3.4 Ericsson<br />

2.3.5 ILS Technology<br />

2.3.6 Jasper Wireless<br />

2.3.7 Logica<br />

2.3.8 Macheen<br />

2.3.9 Red Bend<br />

2.3.10 Wipro<br />

2.4 Industry analysis<br />

2.4.1 A changing landscape for wireless<br />

module vendors<br />

2.4.2 Big opportunities in M2M software and<br />

OSS/BSS systems<br />

3 M2M communication<br />

providers<br />

3.1 Europe and International<br />

3.1.1 Vodafone<br />

3.1.2 Deutsche Telekom<br />

3.1.3 Telefónica<br />

3.1.4 Orange<br />

3.1.5 Telenor<br />

3.1.6 Everything Everywhere<br />

3.1.7 KPN<br />

3.1.8 SFR<br />

3.1.9 Swisscom<br />

3.1.10 Telecom Italia<br />

3.1.11 Telekom Austria<br />

3.1.12 TeliaSonera<br />

3.1.13 Turkcell<br />

3.1.14 M2M communication aggregators<br />

3.1.15 CDMA450 and alternative wireless<br />

network operators<br />

3.2 The Americas<br />

3.2.1 AT&T<br />

3.2.2 Verizon Communications<br />

3.2.3 Sprint<br />

3.2.4 T-Mobile USA<br />

3.2.5 América Móvil<br />

3.2.6 M2M communication aggregators<br />

3.2.7 Satellite network operators<br />

3.3 Asia-Pacific<br />

3.3.1 China Mobile<br />

3.3.2 China Telecom<br />

3.3.3 China Unicom<br />

3.3.4 NTT DoCoMo<br />

3.3.5 KDDI<br />

3.3.6 Softbank<br />

3.3.7 SingTel<br />

3.4 Industry analysis<br />

3.4.1 Global M2M trend in the mobile<br />

operator community<br />

3.4.2 Creating value-added M2M<br />

propositions<br />

3.4.3 Providing international coverage<br />

3.4.4 Enabling consumer M2M applications<br />

3.4.5 Migrating to 3G/4G networks<br />

3.4.6 Strategic options for mobile operators<br />

in M2M<br />

4 Key vertical markets<br />

4.1 OEM automotive<br />

4.1.1 Automotive industry trends<br />

4.1.2 OEM telematics offerings<br />

4.1.3 Regional market trends<br />

4.2 Aftermarket automotive<br />

4.2.1 Key industry players<br />

4.2.2 Enterprise solutions – fleet<br />

management<br />

4.2.3 Consumer solutions – SVT and<br />

financial services<br />

4.2.4 Government solutions – vehicle tax<br />

collection<br />

4.3 Smart grids and intelligent metering<br />

4.3.1 Energy meters<br />

4.3.2 Smart metering initiatives<br />

4.3.3 C&I and grid meters<br />

4.3.4 Mobile communication technologies<br />

and smart grid and metering networks<br />

4.4 Fixed wireless communication<br />

4.4.1 POS-terminals<br />

4.4.2 Security alarms<br />

4.5 Consumer electronics<br />

4.5.1 Media<br />

4.5.2 Automotive<br />

4.5.3 Healthcare<br />

5 Market analysis and forecasts<br />

5.1 Global market<br />

5.1.1 Devices<br />

5.1.2 Network connectivity<br />

5.1.3 Vertical markets<br />

5.1.4 Technology standards<br />

5.2 Europe<br />

5.3 North America<br />

5.4 Latin America<br />

5.5 Asia-Pacific<br />

5.6 Middle East & Africa<br />

Glossary


M2M Research Series<br />

Consumer Electronics<br />

and Wireless M2M<br />

Consumer Electronics and Wireless M2M is the<br />

second consecutive report from <strong>Berg</strong> <strong>Insight</strong> analysing<br />

the latest trends on the worldwide market for embedded<br />

cellular connectivity in consumer devices.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides<br />

you with 130 pages of unique business intelligence<br />

including 5-year industry forecasts and expert<br />

commentary on which to base your business decisions.<br />

This report will allow you to:<br />

Understand the key enablers for growth in the<br />

connected consumer device market.<br />

Identify key players in the connected consumer device<br />

ecosystem.<br />

Benefit from detailed forecasts for eight different device<br />

categories until 2016.<br />

Learn about the dynamics of the consumer electronics<br />

market in Europe, North America and ROW.<br />

Evaluate the business opportunities in the emerging<br />

connected consumer device segment.<br />

Predict future market and technology developments.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging wireless M2M market?<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific<br />

vertical application area such as smart metering, fleet management or vehicle<br />

telematics. Once per year we also publish summaries of our research with detailed<br />

forecasts for the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Consumer M2M market ready for<br />

takeoff – 65 million connections in 2016<br />

The consumer electronics market has experienced an incredible growth<br />

during the digitalisation era in the last decade. Today, dedicated devices<br />

such as PNDs, digital cameras, handheld gaming consoles and<br />

PMPs are facing fierce competition from converged multipurpose devices<br />

such as smartphones and tablets. Mobility, connectivity and personalisation<br />

are three of the most important current trends within consumer<br />

electronics. Instant access to information, using social networks<br />

and consuming and sharing media are becoming important parts of<br />

people’s digital lifestyles. Due to maturing markets and stunted ARPU<br />

growth, mobile operators all over the world are showing increasing interest<br />

in the consumer electronics market. The growing desire for people<br />

to stay connected makes wireless consumer devices an opportunity for<br />

the telecom industry to expand their market beyond mobile handsets.<br />

Consumer electronics has emerged as a new major application category<br />

for cellular M2M in the past years. Consumer M2M devices are<br />

neither classified as handsets, PCs, tablets nor traditional M2M devices.<br />

The product category includes e-readers, portable media players,<br />

gaming consoles, digital cameras, digital photo frames, PNDs, traffic<br />

information devices, personal tracking devices, wellness & fitness devices<br />

and user programmable sensor devices. The reasons for cellular<br />

connectivity vary and are often a way to meet the needs for connected<br />

features introduced in multipurpose devices. Media and entertainment<br />

devices can offer instant distribution of digital content. Imaging devices<br />

enable instant media sharing on social networks and seamless usage of<br />

cloud storage services. Personal navigation devices and speed camera<br />

warning devices can provide users with real time traffic information and<br />

other dynamic online content. Personal tracking devices and wellness<br />

products enable remote monitoring of sensor statuses such as location,<br />

blood pressure and glucose levels. Fitness applications allow for mobility<br />

that often is a necessity in these types of products.<br />

The market for consumer M2M devices is still in its early stage. Until<br />

now, the most connected device categories are e-readers, PNDs, digital<br />

photo frames and handheld gaming consoles such as the recently introduced<br />

Sony PlayStation Vita. <strong>Berg</strong> <strong>Insight</strong> estimates that total shipments<br />

of consumer M2M devices reached 7.1 million devices in 2011. Growing<br />

at a compound annual growth rate of 39.8 percent, the shipments are<br />

expected to reach 37.9 million devices in 2016. <strong>Berg</strong> <strong>Insight</strong> estimates<br />

that the number of connected M2M consumer devices reached<br />

Million units<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Annual shipments of consumer M2M devices with embedded<br />

cellular connectivity, million units (World 2010–2016)<br />

Year<br />

12.7 million at the end of 2011. Growing at a compound annual growth<br />

rate of 38.6 percent, the number of network connections from consumer<br />

M2M devices are expected to reach 65.0 million in 2016. E-readers,<br />

PNDs, digital cameras and handheld gaming consoles will then be the<br />

most common consumer M2M devices accounting for 45 percent, 32<br />

percent, 8 percent and 6 percent respectively of the total number of connections.<br />

North America is currently the most important market for consumer M2M<br />

devices and accounted for about 5 million of the total device shipments<br />

in 2011. The second largest market is Europe with 1.7 million device<br />

shipments followed by the rest of world with 0.5 million device shipments.<br />

<strong>Berg</strong> <strong>Insight</strong> anticipates that North America will remain the largest<br />

region with a market share of 40 percent in 2016. Europe and the<br />

rest of world will account for 30 percent each of the connected device<br />

shipments in the same year.<br />

Continuously decreasing prices of cellular modules and chipsets are key<br />

developments for growth in the connectivity market. The deployments of<br />

high-speed cellular networks such as HSPA+ and LTE on most markets<br />

are another important driver enabling bandwidth-hungry applications.<br />

The exploding sales of connected mobile broadband products such<br />

as tablets further illustrates the benefits of cellular connectivity and will<br />

increase the demand for other consumer M2M devices as well. The telecom<br />

industry is depending on multiple connections per user for growth<br />

but to make it attractive for consumers to have multiple devices with cellular<br />

connections, a great deal of business model innovation is required.<br />

In order for the consumer M2M market to take off, price on mobile data<br />

has to decrease and subscription fees for every single connection need<br />

to be lowered. Instead, more consumers would be willing to have multiple<br />

connections, which will allow for an increased total ARPU. Device<br />

vendors and network operators are also advised to focus on bundling<br />

compelling services and products that include the price of mobile data<br />

instead of marketing actual mobile data subscriptions.<br />

This report answers the following questions:<br />

Which consumer devices offer the best potential for<br />

embedded cellular connectivity?<br />

What are the main drivers behind growth in Europe, North<br />

America and ROW?<br />

When will cellular connectivity be a common option in<br />

consumer devices?<br />

What are the experiences from adding cellular connectivity<br />

to consumer devices so far?<br />

How will the global consumer device market evolve over<br />

the next five years?<br />

In what ways will LTE impact the consumer M2M device<br />

market?<br />

How can the mobile industry contribute to the adoption of<br />

wireless technology in consumer electronics?<br />

Which are the leading manufacturers of consumer<br />

electronics products?


Table of Contents<br />

1 Introduction to consumer<br />

electronics and wireless M2M<br />

1.1 The consumer electronics market<br />

1.1.1 Consumer electronics market trends<br />

1.1.2 Regional markets<br />

1.2 Introduction to wireless M2M<br />

1.2.1 Value chain<br />

1.2.2 Device connectivity<br />

1.2.3 Wireless networks<br />

1.2.4 Wireless M2M applications<br />

1.2.5 The wireless M2M communication<br />

provider market<br />

1.2.6 The wireless module and chipset<br />

market<br />

1.3 Wireless M2M and consumer<br />

electronics<br />

1.3.1 Mobile data device categories<br />

1.3.2 Consumer M2M devices<br />

2 Media and entertainment<br />

2.1 E-readers<br />

2.1.1 The e-book market<br />

2.1.2 The e-reader market<br />

2.1.3 E-readers and cellular connectivity<br />

2.1.4 Business models for connected<br />

e-readers<br />

2.2 Portable media players<br />

2.2.1 The portable media player market<br />

2.2.2 PMPs and cellular connectivity<br />

2.3 Gaming Consoles<br />

2.3.1 The gaming console market<br />

2.3.2 Mobile gaming<br />

2.3.3 Gaming consoles and cellular<br />

connectivity<br />

3 Imaging<br />

3.1 Digital cameras<br />

3.1.1 The digital still camera market<br />

3.1.2 The digital video camera market<br />

3.1.3 Digital cameras and cellular<br />

connectivity<br />

3.2 Digital photo frames<br />

3.2.1 The digital photo frame market<br />

3.2.2 Digital photo frames and cellular<br />

connectivity<br />

4 Navigation, tracking and<br />

monitoring<br />

4.1 Personal navigation and traffic<br />

information devices<br />

4.1.1 The personal navigation device market<br />

4.1.2 Connected personal navigation<br />

devices<br />

4.1.3 Speed camera warning devices<br />

4.2 Personal tracking and monitoring<br />

devices<br />

4.2.1 Consumer oriented personal tracking<br />

devices<br />

4.2.2 Wellness and fitness devices<br />

4.2.3 Sensor devices<br />

5 Market forecasts and trends<br />

5.1 Global market outlook<br />

5.2 Market trends and drivers<br />

5.2.1 Devices<br />

5.2.2 Cellular networks, modules and<br />

chipsets<br />

5.2.3 Providing international coverage<br />

5.2.4 Business model innovation<br />

5.3 Market forecasts – Media and<br />

entertainment<br />

5.3.1 E-readers<br />

5.3.2 Portable media players<br />

5.3.3 Gaming consoles<br />

5.4 Market forecasts – Imaging<br />

5.4.1 Digital cameras<br />

5.4.2 Digital photo frames<br />

5.5 Market forecasts – Navigation,<br />

tracking and monitoring<br />

5.5.1 Personal navigation and traffic<br />

information devices<br />

5.5.2 Personal tracking and monitoring<br />

devices<br />

5.6 Regional market developments<br />

6 Consumer device vendors<br />

6.1 Key consumer electronics vendors<br />

6.1.1 Samsung Electronics<br />

6.1.2 Sony<br />

6.1.3 Apple<br />

6.1.4 LG Electronics<br />

6.2 Media and entertainment device<br />

vendors<br />

6.2.1 Amazon<br />

6.2.2 Barnes & Noble<br />

6.2.3 Hanvon Technology<br />

6.2.4 Nintendo<br />

6.2.5 Microsoft<br />

6.2.6 Archos<br />

6.3 Imaging device vendors<br />

6.3.1 Canon<br />

6.3.2 Nikon<br />

6.3.3 Olympus<br />

6.3.4 Panasonic<br />

6.3.5 Fujifilm<br />

6.3.6 Pandigital<br />

6.3.7 Isabella Products<br />

6.4 Personal navigation and traffic<br />

information device vendors<br />

6.4.1 Garmin<br />

6.4.2 Navigon<br />

6.4.3 TomTom<br />

6.4.4 MiTAC<br />

6.4.5 Coyote Systems<br />

7 Telecom industry players<br />

7.1 Mobile network operators<br />

7.1.1 China Mobile<br />

7.1.2 AT&T<br />

7.1.3 Vodafone<br />

7.1.4 Verizon Communications<br />

7.1.5 Deutsche Telekom<br />

7.1.6 Telefónica<br />

7.1.7 NTT DoCoMo<br />

7.1.8 KDDI<br />

7.1.9 Softbank<br />

7.1.10 Telenor<br />

7.1.11 KPN<br />

7.2 Wireless M2M module vendors<br />

7.2.1 Sierra Wireless<br />

7.2.2 Novatel Wireless<br />

7.2.3 AnyDATA<br />

7.2.4 Huawei<br />

7.2.5 Cinterion<br />

7.2.6 Telit<br />

7.2.7 SIMCom<br />

7.3 Chipset and M2M platform vendors<br />

7.3.1 Qualcomm<br />

7.3.2 Intel<br />

7.3.3 MediaTek<br />

7.3.4 ST-Ericsson<br />

7.3.5 Ericsson<br />

7.3.6 Jasper Wireless<br />

Glossary


M2M Research Series<br />

Container Tracking<br />

and Security<br />

Container Tracking and Security is a comprehensive report<br />

from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments on the<br />

container tracking and security market worldwide.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with 100 pages of unique business intelligence including<br />

5-year industry forecasts and expert commentary to base<br />

your business decisions.<br />

This report answers the following questions:<br />

<strong>Insight</strong>s from 35 new executive interviews with market<br />

leading companies.<br />

Comprehensive overview of the container tracking value<br />

chain and key applications.<br />

In-depth analysis of market trends and key developments.<br />

Summary of major container tracking initiatives from the<br />

EU and the US.<br />

Updated profiles of 42 container tracking solution providers.<br />

Market forecasts lasting until 2016.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging wireless M2M market?<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports published<br />

on a quarterly basis. Each title offers detailed analysis of a specific vertical application<br />

area such as smart metering, fleet management or vehicle telematics. Once per year<br />

we also publish summaries of our research with detailed forecasts for the Global<br />

and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Adoption of container tracking will<br />

accelerate in the coming years<br />

Shipping container tracking is a subset of asset tracking and aims at<br />

securing assets and increase operational efficiency. <strong>Berg</strong> <strong>Insight</strong>’s<br />

definition of a real-time container tracking solution is a system that<br />

incorporates data logging, satellite positioning and data communication<br />

to a back-office application. Tracking and monitoring of shipping<br />

containers came in focus after 9/11. Many companies saw an<br />

opportunity and started ambitious container tracking projects. However,<br />

neither the technology nor the market was ready at the time.<br />

Today, mobile and satellite networks can provide ubiquitous online<br />

connectivity at a reasonable cost and mobile computing and sensor<br />

technology delivers high performance, as well as excellent usability.<br />

All of these components combined enable the delivery of supply<br />

chain management, security management and operations management<br />

applications linking containers and enterprise IT systems.<br />

Intermodal shipping containers are standardised, reusable containers<br />

used in intermodal transport systems worldwide. Container trade<br />

is the fastest growing segment in seaborne trade, having grown<br />

nearly 10 percent annually since the 1980s. Maritime transportation<br />

and the increased containerisation of goods are key enablers<br />

to make the global supply chain work efficiently. Today, more than<br />

80 percent of international trade goods are carried by sea. At the<br />

end of 2011, there were approximately 20 million cargo containers<br />

worldwide, the equivalent of 30 million TEUs.<br />

<strong>Berg</strong> <strong>Insight</strong> is of the opinion that the market for shipping container<br />

tracking solutions has entered a growth period that will last for several<br />

years to come. The number of tracking systems with GPRS or<br />

satellite communication for intermodal containers in active use is<br />

forecasted to grow at a compound annual growth rate of 66.9 percent<br />

from 77,000 units at the end of 2011 to 1.0 million by 2016. The<br />

penetration rate of remote tracking systems in the total population<br />

of intermodal containers is estimated to increase from 0.4 percent in<br />

2011 to 3.6 percent in 2016. Aftermarket solutions mounted on high<br />

value cargo and refrigerated containers will be the first use cases to<br />

adopt container tracking.<br />

The US satellite communication provider Orbcomm has after the<br />

recent acquisitions of StarTrak and PAR LMS emerged as the largest<br />

vendor of intermodal container tracking solutions with GPRS or<br />

satellite communication. The company had achieved an installed<br />

1 000 000<br />

800 000<br />

600 000<br />

400 000<br />

200 000<br />

Units<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Installed base of active container tracking units (World 2010–2016)<br />

Year<br />

base of 15,000 units at the end of 2011. PearTrack Systems and<br />

Qualcomm Enterprise Services are the second and third largest<br />

providers having 10,000 and 7,000 systems installed on intermodal<br />

containers respectively. Honeywell Global Tracking is the fourth<br />

largest system provider after the acquisition of EMS Global Tracking.<br />

Other significant players include ID Systems, Telular and Cubic<br />

GTS from the US, Pointer Telocation from Israel and EPSa and<br />

Global Tracking Technology from Europe. Most players have generally<br />

a broader market scope than maritime shipping containers,<br />

covering all types of asset tracking. CSB Technology, Kirsen Global<br />

Security and Starcom Systems are examples of vendors with<br />

products specifically developed for intermodal shipping containers.<br />

There has been a consolidation trend in the container tracking market<br />

in the past two years with several major M&A activities. Francisco<br />

Partners acquired Cybit in January 2010 in a deal worth about<br />

€ 28 million. This deal was later followed by the acquisition of Masternaut<br />

in April 2011. ID Systems further acquired GE’s Asset Intelligence<br />

division, a leading international provider of trailer tracking<br />

solutions. In May 2010, Cubic acquired Impeva Labs and formed<br />

Cubic Global Tracking Solutions. Orbcomm acquired StarTrak in<br />

May 2011, followed by the acquisition of PAR LMS in December<br />

2011 in a deal worth about US$ 10 million. EMS Global Tracking<br />

was acquired by Honeywell in August 2011, which formed the new<br />

business unit Honeywell Global Tracking. The latest transaction was<br />

done in December 2011 when Telular acquired asset tracking specialist<br />

SkyBitz for US$ 42 million.<br />

<strong>Berg</strong> insight anticipates that there will be a continued strong focus<br />

on container transport security and increased supply chain visibility<br />

in the coming years which will favour the container tracking market.<br />

Tracking solutions can help transportation chain stakeholders to<br />

comply with regulations and security programs as well as increase<br />

the transportation efficiency. Proving the commercial value, finding<br />

efficient solutions for reverse logistics and bringing down hardware<br />

prices are key components to increase the adoption rate for container<br />

tracking solutions.<br />

This report answers the following questions:<br />

Which are the leading providers of container tracking<br />

solutions?<br />

What offerings are available from device vendors and<br />

service providers?<br />

What impact will international regulations and security<br />

initiatives have on the market?<br />

What are the key drivers behind the adoption of<br />

container tracking devices?<br />

How is the global economy affecting the market for<br />

container tracking?<br />

What impact will technology advancements have on the<br />

market?<br />

How will the container telematics industry evolve in the<br />

future?


Table of Contents<br />

1 The container<br />

shipping industry<br />

1.1 International container trade<br />

1.1.1 Containerisation<br />

1.1.2 Ports, terminals and trade lanes<br />

1.2 Intermodal shipping containers<br />

1.2.1 Container fleet<br />

1.2.2 Trailers, semi-trailers and swap bodies<br />

1.2.3 Container manufacturers<br />

1.2.4 Container ships<br />

1.3 Container ownership structure<br />

1.3.1 Container shipping companies<br />

1.3.2 Container leasing companies<br />

1.4 Other container transport actors<br />

1.4.1 Consigner/Consignee<br />

1.4.2 Freight forwarders<br />

1.4.3 Customs and regulatory authorities<br />

1.4.4 Terminal operators<br />

2 Container tracking solutions<br />

2.1 Container tracking infrastructure<br />

2.1.1 Container segment<br />

2.1.2 GNSS segment<br />

2.1.3 Network segment<br />

2.1.4 Backoffice segment<br />

2.2 Supply chain management<br />

2.2.1 Cargo and inventory management<br />

2.2.2 Insurance risk management<br />

2.3 Security management<br />

2.3.1 Theft, accident and damage security<br />

2.3.2 Terrorism, illegal and dangerous<br />

goods security<br />

2.4 Container operations management<br />

2.4.1 Container management<br />

2.4.2 Container transport management<br />

2.5 Regulatory compliance and<br />

reporting<br />

2.5.1 Supply chain security programs<br />

2.5.2 Tax collection<br />

2.6 International container tracking<br />

technology initiatives<br />

2.6.1 Integrity project<br />

2.6.2 Smart CM project<br />

2.6.3 Cassandra project<br />

2.6.4 US Department of Homeland Security<br />

Cargo Security Programs<br />

2.6.5 DASH7 Container Security and<br />

Sensing Initiative<br />

2.7 Business models<br />

3 Market forecasts and trends<br />

3.1 Market analysis<br />

3.1.1 Installed base and unit shipments<br />

3.1.2 Regional markets<br />

3.1.3 Vendor market shares<br />

3.2 Market drivers and barriers<br />

3.2.1 Macroeconomic factors<br />

3.2.2 Regulatory environment<br />

3.2.3 Competitive environment<br />

3.2.4 Technology environment<br />

3.3 Value chain analysis<br />

3.3.1 Telematics industry players<br />

3.3.2 Container transportation industry<br />

players<br />

3.3.3 Telecom industry players<br />

3.3.4 IT industry players<br />

3.4 Future industry trends<br />

4 Maritime container<br />

tracking vendors<br />

4.1 Astrium<br />

4.2 CSB Technologies<br />

4.3 EPSa<br />

4.4 European Datacomm<br />

4.5 Global Tracking Technology<br />

4.6 Globe Tracker<br />

4.7 Honeywell Global Tracking<br />

(EMS Global Tracking)<br />

4.8 Kirsen Global Security<br />

4.9 Logica<br />

4.10 OnAsset Intelligence<br />

4.11 PearTrack Systems<br />

4.12 Starcom Systems<br />

4.13 System Planning Corporation<br />

(GlobalTrak)<br />

5 Inland container<br />

tracking vendors<br />

5.1 Agheera<br />

5.2 Cubic Global Tracking Solutions<br />

5.3 FreightWatch<br />

5.4 GlobalTrack<br />

5.5 Hi-G-Tek<br />

5.6 ID Systems – Asset Intelligence<br />

5.7 Idem<br />

5.8 Masternaut<br />

5.9 Orbcomm (StarTrak, PAR LMS)<br />

5.10 Pointer Telocation<br />

5.11 Qualcomm Enterprise Services<br />

5.12 SkyWave<br />

5.13 Sycada<br />

5.14 Telular (SkyBitz)<br />

5.15 Trimble<br />

6 Other tracking<br />

solution providers<br />

6.1 Agorabee<br />

6.2 APS Technology<br />

6.3 AT&T<br />

6.4 Avante International Technology<br />

6.5 CargoTrax<br />

6.6 Intelleflex<br />

6.7 ITC Infotech<br />

6.8 Johnson Controls<br />

6.9 Mark-It Services<br />

6.10 Navis<br />

6.11 Numerex<br />

6.12 Powers International<br />

6.13 Savi Technology<br />

6.14 Telenor Traxion<br />

Glossary


M2M Research Series<br />

mHealth and<br />

Home Monitoring<br />

mHealth and Home Monitoring is the fourth consecutive<br />

report from <strong>Berg</strong> <strong>Insight</strong> that gives first-hand insights into the<br />

adoption of wireless solutions for health monitoring.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with 200 pages of unique business intelligence including<br />

5-year industry forecasts and expert commentary on which to<br />

base your business decisions.<br />

This report will allow you to:<br />

Profit from 30 new executive interviews with market<br />

leading companies.<br />

Identify key players in the healthcare monitoring<br />

ecosystem.<br />

Learn about key home health monitoring devices and<br />

services.<br />

Understand the dynamics of the health monitoring market<br />

in Europe and North America.<br />

Comprehend how wireless technology can become<br />

seamlessly integrated with medical devices.<br />

Evaluate the business opportunities in the emerging<br />

mHealth segment.<br />

Predict future market and technology developments.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

2.2 million patients worldwide are<br />

remotely monitored today<br />

eHealth is a term for healthcare practice supported by electronic<br />

processes and communication. More recently, mHealth has begun to<br />

appear as a term for eHealth using mobile phones or cellular networks.<br />

mHealth is a very broad term that principally involves every kind of<br />

mobile health related communication, application or data service. This<br />

report covers home health monitoring involving patient self-testing<br />

using medical devices and remote transmission of the medical data to<br />

healthcare providers for disease management.<br />

Some of the most common conditions being monitored today are<br />

chronic diseases including cardiac arrhythmia, hypertension, ischemic<br />

diseases, sleep apnea, diabetes, hyperlipidemia, asthma and chronic<br />

obstructive pulmonary disease (COPD). These conditions cause<br />

substantial costs and reduce both life expectancy and quality of life.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that more than 200 million people in the EU and<br />

the US suffer from one or several diseases where home monitoring can<br />

become a treatment option. Applying information and communication<br />

technologies in the healthcare industry can lead to decreased<br />

costs, more efficient care delivery and improved sustainability of the<br />

healthcare system. However, the rate of adoption is still slow and<br />

wireless technologies have only just begun to penetrate the market.<br />

At the end of 2011, around 2.2 million patients worldwide were using<br />

a home monitoring service based on equipment with integrated<br />

connectivity. The figure does not include patients that use monitoring<br />

devices connected to a PC or mobile phone. It only includes systems<br />

that rely on monitors with integrated connectivity or systems that use<br />

monitoring hubs with integrated cellular or fixed-line modems. <strong>Berg</strong><br />

<strong>Insight</strong> forecasts that the number of home monitoring systems with<br />

integrated communication capabilities will grow at a compound annual<br />

growth rate (CAGR) of 18.0 percent between 2010 and 2016 to reach<br />

4.9 million connections globally by the end of the forecast period. The<br />

number of these devices that have integrated cellular connectivity<br />

increased from 0.42 million in 2010 to about 0.57 million in 2011, and<br />

is projected to grow at a CAGR of 34.6 percent to 2.47 million in 2016.<br />

Several companies have developed integrated solutions for<br />

monitoring multiple chronic diseases and other conditions. The six<br />

leading providers of integrated telehealth systems include the major<br />

million units<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Home health monitoring connections, million units (World 2010–2016)<br />

Year<br />

technology and electronics companies Bosch, Honeywell, Philips<br />

and Bayer, as well as the small specialist telehealth companies<br />

Cardiocom and Numera. Combined, these six companies account for<br />

73.0 percent of the installed base of telehealth hubs. The main market<br />

segments for medical devices with integrated connectivity are cardiac<br />

rhythm management, sleep therapy and cardiac event monitoring.<br />

In these segments leading providers such as Medtronic, Biotronik,<br />

St Jude Medical, CardioNet, LifeWatch, ResMed, Philips Respironics<br />

and Fisher & Paykel Healthcare today market wirelessly connected<br />

solutions. Implantable cardiac rhythm management devices is by<br />

far the largest segment, accounting for 74.3 percent of remotely<br />

monitored patients.<br />

The major mobile operator groups including AT&T, Orange, Telefónica<br />

and Vodafone are currently exploring the field and have set up<br />

business units dedicated to mHealth. The most commonly used mode<br />

of expansion has been to establish strategic partnerships with mHealth<br />

and eHealth solution vendors. Several operators are leveraging other<br />

vehicles for expansion such as corporate venture capital, acquisitions<br />

and in-house development. However, providing specialized solutions<br />

for the healthcare industry implies a significant diversification from<br />

the core business. The challenge for mobile operators is to identify<br />

market segments where they create most value, while at the same time<br />

limiting the potential downsides of over-diversification.<br />

The adoption of out-of-hospital wireless monitoring in healthcare<br />

is driven by a wide range of incentives, related to everything from<br />

demographics and technology development to new advancements in<br />

medical treatment. However, there are a number of barriers, including<br />

resistance to change among healthcare organizations and clinicians,<br />

misaligned incentive structures and the financing of wireless solutions<br />

by what is at large an underfunded healthcare sector. Several catalysts<br />

are nevertheless likely to speed up the rate of adoption, including<br />

increasing monitoring during clinical trials, insurance company<br />

requirements and new clinical evidence on cost effectiveness.<br />

Significant events that will drive uptake include the Medical Device<br />

Data Systems (MDDS) legislation in the US and the publication of the<br />

results from the Whole System Demonstrator project in the UK.<br />

This report answers the following questions:<br />

Which medical conditions offer the best potential for wireless health<br />

monitoring solutions?<br />

Who are the leading providers of medical devices for home monitoring?<br />

What are the mHealth strategies of mobile operators?<br />

Which are the general technology trends for home health<br />

monitoring equipment?<br />

What initiatives have been taken by the leading players in the telecom<br />

and IT industries?<br />

What are the market shares of the top 10 integrated telehealth solution<br />

vendors?<br />

Why are smartphone applications so significant for the mHealth market?<br />

How will standardisation facilitate the integration of medical devices and<br />

mobile handsets?<br />

How can the mobile industry contribute to the adoption of<br />

wireless technology in healthcare?


Table of Contents<br />

1 The challenge from<br />

welfare diseases<br />

1.1 Introduction<br />

1.1.1 The ageing world population<br />

1.1.2 Metabolic syndrome and lifestyle related<br />

diseases<br />

1.2 Common chronic diseases<br />

1.2.1 Cardiac arrhythmia<br />

1.2.2 Hypertension<br />

1.2.3 Ischemic diseases<br />

1.2.4 Sleep apnea<br />

1.2.5 Chronic respiratory diseases<br />

1.2.6 Diabetes<br />

1.2.7 Hyperlipidemia<br />

1.3 Healthcare providers and<br />

reimbursement systems<br />

1.3.1 Healthcare in Asia-Pacific<br />

1.3.2 Healthcare in Europe<br />

1.3.3 Healthcare in North America<br />

2 mHealth strategies of<br />

mobile operators<br />

2.1 Telecommunications in mHealth services<br />

2.2 mHealth market segments<br />

2.3 Business models<br />

2.4 mHealth strategies of mobile operators in<br />

North America<br />

2.4.1 Verizon Communications<br />

2.4.2 AT&T<br />

2.4.3 Sprint<br />

2.4.4 KORE Telematics<br />

2.4.5 GreatCall<br />

2.4.6 TELUS<br />

2.4.7 SaskTel<br />

2.5 mHealth strategies of mobile operators in<br />

Europe<br />

2.5.1 Vodafone<br />

2.5.2 Deutsche Telecom<br />

2.5.3 Orange Group<br />

2.5.4 Telefónica<br />

2.5.5 KPN<br />

2.5.6 Telecom Italia<br />

2.6 mHealth strategies of mobile operators in<br />

Asia-Pacific<br />

2.6.1 NTT DoCoMo<br />

2.6.2 SK Telecom<br />

2.6.3 Telstra<br />

3 Enabling technologies<br />

and initiatives<br />

3.1 Wireless M2M technology<br />

3.1.1 Chipsets, modules and terminals<br />

3.1.2 Device design and machine integration<br />

3.1.3 M2M device value chain<br />

3.1.4 eDevice focuses on end-to-end M2M<br />

solutions for telehealth<br />

3.1.5 Qualcomm launches the 2net Platform and<br />

Hub<br />

3.1.6 Wireless M2M module vendors in the<br />

mHealth market<br />

3.2 Mobile handsets<br />

3.2.1 Smartphone vendors and operating systems<br />

3.2.2 Application stores provide a new channel to<br />

the market for developers<br />

3.2.3 Medical applications<br />

3.3 Personal health record initiatives<br />

3.3.1 Google shuts down Google Health<br />

3.3.2 Microsoft HealthVault<br />

3.3.3 Dossia personal health platform<br />

3.3.4 PatientsLikeMe<br />

3.4 Industry associations<br />

3.4.1 Continua Health Alliance<br />

3.4.2 The Bluetooth SIG Medical Working Group<br />

3.4.3 American Telemedicine Association<br />

3.4.4 CTIA<br />

3.4.5 GSMA<br />

3.4.6 mHealth Alliance<br />

3.4.7 West Wireless Health Institute<br />

3.4.8 Wireless-Life Sciences Alliance<br />

4 Home healthcare monitoring<br />

4.1 Trends in health monitoring<br />

4.1.1 Going digital, going wireless<br />

4.1.2 Distance disease management<br />

4.1.3 Outsourcing of health monitoring<br />

4.2 Medical monitoring devices<br />

4.2.1 Cardiac monitoring<br />

4.2.2 Blood pressure monitoring<br />

4.2.3 Blood coagulation monitoring<br />

4.2.4 Blood oxygen level monitoring<br />

4.2.5 Glucose monitoring<br />

4.2.6 Lipid monitoring<br />

4.2.7 Sleep monitoring<br />

4.2.8 Breath monitoring<br />

4.3 Regulatory environment<br />

4.3.1 Regulatory environment in Europe<br />

4.3.2 Regulatory environment in the US<br />

4.3.3 Regulatory environment on other major<br />

markets<br />

4.3.4 International standardisation<br />

5 Physiological monitoring<br />

solution providers<br />

5.1 Cardiac monitoring<br />

5.1.1 Biotronik<br />

5.1.2 Boston Scientific<br />

5.1.3 Medtronic<br />

5.1.4 Sorin Group<br />

5.1.5 St Jude Medical<br />

5.1.6 CardioNet<br />

5.1.7 LifeWatch<br />

5.1.8 Corventis<br />

5.1.9 Curvus<br />

5.1.10 Q & S<br />

5.1.11 SHL Telemedicine<br />

5.1.12 Vitaphone<br />

5.1.13 Zenicor<br />

5.2 Blood pressure monitoring<br />

5.2.1 Omron Healthcare<br />

5.2.2 A&D Medical<br />

5.2.3 Microlife<br />

5.2.4 Rossmax<br />

5.2.5 IEM<br />

5.2.6 Medisana<br />

5.3 Coagulation monitoring<br />

5.3.1 Alere<br />

5.3.2 CoaguSense<br />

5.3.3 International Technidyne Corporation<br />

5.4 Sleep monitoring<br />

5.4.1 Fisher & Paykel Healthcare<br />

5.4.2 Philips Respironics<br />

5.4.3 ResMed<br />

5.4.4 Cadwell Laboratories<br />

5.4.5 CareFusion<br />

5.4.6 Compumedics<br />

5.4.7 Natus Medical<br />

5.4.8 Novasom<br />

5.4.9 Watermark Medical<br />

5.5 Blood oxygen monitoring<br />

5.5.1 Covidien<br />

5.5.2 Masimo<br />

5.5.3 Nonin Medical<br />

5.5.4 Opto Circuits<br />

5.6 Air flow monitoring<br />

5.6.1 Smiths Medical<br />

5.6.2 Clement Clarke International<br />

5.6.3 Medical Electronic Construction<br />

5.6.4 Medical International Research<br />

5.6.5 Midmark<br />

5.6.6 Ndd Medizintechnik<br />

5.6.7 nSpire Health<br />

5.6.8 SDI Diagnostics<br />

5.6.9 Sibelmed<br />

5.6.10 Vitalograph<br />

5.6.11 Welch Allyn<br />

5.7 Glucose level monitoring<br />

5.7.1 Abbott Laboratories<br />

5.7.2 Bayer Healthcare<br />

5.7.3 Johnson & Johnson<br />

5.7.4 Roche<br />

5.7.5 DexCom<br />

5.7.6 Telcare<br />

5.7.7 Welldoc<br />

5.8 Lipid monitoring<br />

5.8.1 CardioChek<br />

5.8.2 Apex Biotechnology<br />

5.8.3 Biomedix USA<br />

6 Medication and integrated<br />

monitoring solution providers<br />

6.1 Integrated telehealth solution providers<br />

6.1.1 Bosch Healthcare<br />

6.1.2 Honeywell HomMed<br />

6.1.3 Cardiocom<br />

6.1.4 Philips Healthcare<br />

6.1.5 Numera<br />

6.1.6 Viterion TeleHealthcare<br />

6.1.7 Aerotel Medical Systems<br />

6.1.8 American TeleCare<br />

6.1.9 Authentidate<br />

6.1.10 BlueLibris<br />

6.1.11 BodyTel<br />

6.1.12 Grandcare Systems<br />

6.1.13 H2AD<br />

6.1.14 Ideal Life<br />

6.1.15 Intel-GE Care Innovations<br />

6.1.16 MedApps<br />

6.1.17 Medic4All<br />

6.1.18 OBS Medical<br />

6.1.19 Tunstall Group<br />

6.1.20 Telehealth Solutions<br />

6.2 Medication compliance monitoring<br />

6.2.1 Aardex Group<br />

6.2.2 Bang & Olufsen Medicom<br />

6.2.3 Cypak<br />

6.2.4 Information Mediary Corporation<br />

6.2.5 Medicpen<br />

6.2.6 Medsignals<br />

6.2.7 Proteus Biomedical<br />

6.2.8 SIMpill<br />

6.2.9 Vitality<br />

6.2.10 Vocel<br />

7 Market analysis and forecasts<br />

7.1 Market analysis<br />

7.1.1 Cardiac implants comprise the bulk of RPM<br />

connections<br />

7.1.2 Compliance requirements drive connectivity<br />

in the sleep therapy market<br />

7.1.3 Lower reimbursement slows down uptake of<br />

mobile cardiac telemetry<br />

7.1.4 New entrants challenge leading providers of<br />

integrated telehealth solutions<br />

7.1.5 Wireless connectivity gains momentum in<br />

several market segments<br />

7.1.6 Remote data transmission in other market<br />

segments<br />

7.2 Market forecasts<br />

7.3 Market drivers and barriers<br />

7.3.1 An ageing population<br />

7.3.2 Increasing welfare disease prevalence<br />

7.3.3 Focus on disease prevention<br />

7.3.4 Substitutes to medical monitoring<br />

7.3.5 Resistance to change<br />

7.4 Potential market catalysts<br />

7.4.1 Increased monitoring during clinical trials<br />

7.4.2 Insurance companies demanding<br />

monitoring<br />

7.4.3 New clinical evidence on cost effectiveness<br />

7.4.4 Non-prescribed monitoring and healthcare<br />

consumerism<br />

7.5 Recommendations for mobile industry<br />

players<br />

Glossary


M2M Research Series<br />

ITS in Public Transport<br />

ITS in Public Transport is a comprehensive report from <strong>Berg</strong><br />

<strong>Insight</strong> analysing the latest developments on the intelligent<br />

transportation systems market for public transport in Europe.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides<br />

you with 150 pages of unique business intelligence, including<br />

5-year industry forecasts, expert commentary and real-life case<br />

studies on which to base your business decisions.<br />

Highlights from the report:<br />

<strong>Insight</strong>s from 30 new executive interviews with market<br />

leading companies.<br />

Data on vehicle fleets and public transport utilisation in<br />

Europe.<br />

Comprehensive overview of the public transport ITS value<br />

chain and key applications.<br />

In-depth analysis of market trends and key developments.<br />

Profiles of 39 aftermarket ITS solution providers.<br />

Summary of OEM propositions from public transport<br />

vehicle brands.<br />

Market forecasts lasting until 2015.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Public transport ITS in Europe<br />

boosted by market deregulation<br />

The term Intelligent Transport Systems (ITS) refers to information<br />

and communication technology applied to transport infrastructure<br />

and vehicles. <strong>Berg</strong> <strong>Insight</strong>’s definition of ITS for public transport includes<br />

systems which are installed in public transport vehicles as<br />

well as at terminals, stops and similar. Included are also backoffice<br />

IT systems which ensure that public transport services can be<br />

planned, scheduled and managed to achieve efficient operations.<br />

An important part of ITS for public transport is further solutions providing<br />

travellers with updated information about routes, departure<br />

times, possible disturbances and connecting services. The history<br />

of these different types of solutions dates back several decades and<br />

current state-of-the-art solutions include for example real-time intermodal<br />

journey planners, automated fare collection systems using<br />

smartcards, and on-board infotainment solutions with information<br />

about nearby points of interest.<br />

Public transport plays an essential role in the European society.<br />

Approximately 60 billion public transport passenger journeys per<br />

year are carried out in the EU27. Available modes include for example<br />

local and regional buses and trolleybuses, regional and suburban<br />

rail transport, metros and trams, and local waterborne passenger<br />

transport services. A total of 737,000 buses and coaches account for<br />

9.5 percent of the yearly passenger kilometres on land in Europe.<br />

The economic value of public transport services in Europe amounts<br />

to € 130–150 billion per year, which represents approximately<br />

1–1.2 percent of the GDP. The public transport sector furthermore<br />

creates about 1.2 million direct employments in Europe, and an<br />

average of 2–2.5 indirect employments per direct job.<br />

<strong>Berg</strong> <strong>Insight</strong> is of the opinion that the European market for ITS solutions<br />

for public transport is in a growth phase which will last for<br />

several years to come. Individual markets may however experience<br />

temporary fluctuations, depending on the political climate and local<br />

developments. The total market value for public transport ITS<br />

for buses and trams is forecasted to grow at a compound annual<br />

growth rate of 15 percent from € 0.65 billion at the end of 2010 to<br />

€ 1.3 billion by 2015. The penetration of on-board computer units<br />

with GPS location functionality and wireless communication in buses<br />

and trams is estimated to increase from 30 percent in 2010 to<br />

48.3 percent in 2015.<br />

€ million<br />

1500<br />

1200<br />

900<br />

600<br />

300<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

Market value of public transport ITS (EU27+2 2010 – 2015)<br />

Year<br />

A group of international aftermarket solution providers have<br />

emerged as the leaders on the European market for public transport<br />

ITS. The dominant providers are INIT, Trapeze ITS and IVU, all based<br />

in the German speaking region and having substantial installed<br />

bases across a multitude of countries. Examples of companies with<br />

major market shares on national markets in Europe include INEO<br />

Systrans, which holds a leading position in France, and Vix Technology’s<br />

recently acquired subsidiary ACIS which is a major vendor on<br />

the UK market. Other significant players include the Spanish company<br />

groups GMV and Grupo Etra, Swarco’s subsidiary Mizar in<br />

Italy, the Norweigan company FARA and the German provider PSI<br />

Transcom.<br />

All the major bus manufacturers on the European market have initiatives<br />

related to OEM bus telematics, however using very different<br />

strategies. Scania offers the same telematics features for buses as<br />

for the trucks, and MAN is planning to introduce a similar offering.<br />

Daimler has introduced a modified version of its fleet management<br />

system for trucks, adapted to better suit bus customers, while Iveco<br />

with the Irisbus brand collaborates with third party suppliers when<br />

fulfilling customer requirements for ITS. Volvo Group, in turn, offers<br />

functionality not only for conventional telematics and fleet management<br />

applications, but also real-time passenger information and<br />

traffic management.<br />

The outlook for the European public transport ITS market is positive,<br />

as several major developments foster increased adoption of such<br />

technologies. The continent-wide deregulation of the public transport<br />

market creates a need for technologies which can handle the<br />

increasingly burdensome task of providing synchronised passenger<br />

information. International public transport related initiatives such<br />

as the EU project EBSF are also likely to increase the ITS adoption.<br />

Other contributing developments include UITP’s sought-after<br />

doubling of the public transport ridership by 2025, the increasing<br />

environmental awareness and decreasing costs for ITS.<br />

This report answers the following questions:<br />

How is public transport organised and managed in the<br />

European countries?<br />

What is the geographical structure of public transport<br />

fleets in Europe?<br />

Which are the leading international and regional<br />

providers of aftermarket public transport ITS in Europe?<br />

What offerings are available from vehicle OEMs?<br />

What impact will the launch of standard factory installed<br />

on-board computers from the OEMs have on the<br />

market?<br />

How has the economic crisis affected the market for<br />

public transport ITS in Europe?<br />

How are the regulatory developments in Europe<br />

affecting the public transport ITS industry?<br />

How will the public transport ITS industry evolve in the<br />

future?


Table of Contents<br />

1 Public transport in Europe<br />

1.1 Modal split of passenger transport<br />

1.2 Bus fleets and public transport<br />

utilisation<br />

1.3 Market shares for bus and coach<br />

OEMs<br />

1.4 Rail-borne public transport modes<br />

1.4.1 Trams and light rail<br />

1.4.2 Metro<br />

1.5 Organisation and contracting in<br />

public transport<br />

1.5.1 Legal framework<br />

1.5.2 Organisational forms and regional<br />

differences<br />

1.6 Major public transport<br />

operators<br />

2 ITS technologies<br />

and solutions<br />

2.1 Public transport ITS infrastructure<br />

2.1.1 Vehicle segment<br />

2.1.2 Roadside segment<br />

2.1.3 Backoffice segment<br />

2.1.4 Traveller segment<br />

2.1.5 GNSS segment<br />

2.1.6 Network segment<br />

2.2 Public transport management<br />

2.2.1 Planning and scheduling tools<br />

2.2.2 Computer aided dispatch systems<br />

2.2.3 Traffic signal priority<br />

2.3 Traveller management<br />

2.3.1 Passenger information<br />

2.3.2 Entertainment<br />

2.3.3 Fare payment<br />

2.4 Driver management<br />

2.4.1 Driving data registration and analysis<br />

2.4.2 Eco-driving schemes<br />

2.4.3 Insurance risk management<br />

2.5 Vehicle management<br />

2.5.1 Vehicle diagnostics and maintenance<br />

planning<br />

2.5.2 On-board security solutions<br />

2.6 Business models and strategies<br />

3 Market forecasts and trends<br />

3.1 Market analysis<br />

3.1.1 Market value forecast<br />

3.1.2 Regional markets<br />

3.1.3 Major vendors<br />

3.2 Market drivers and barriers<br />

3.2.1 Macroeconomic environment<br />

3.2.2 Regulatory environment<br />

3.2.3 Competitive environment<br />

3.2.4 Technology environment<br />

3.3 Value chain analysis<br />

3.3.1 ITS and telematics industry players<br />

3.3.2 Automotive industry players<br />

3.3.3 Telecom industry players<br />

3.3.4 IT industry players<br />

3.4 Future industry trends<br />

4 OEM products and strategies<br />

4.1 Daimler<br />

4.2 Iveco<br />

4.3 MAN<br />

4.4 Scania<br />

4.5 Volvo Group<br />

4.6 Other bus manufacturers<br />

4.6.1 Alexander Dennis<br />

4.6.2 VDL<br />

4.6.3 Van Hool<br />

5 Aftermarket solution providers<br />

5.1 International<br />

5.1.1 GIRO<br />

5.1.2 INIT<br />

5.1.3 IVU<br />

5.1.4 Swarco<br />

5.1.5 Thales<br />

5.1.6 Trapeze ITS<br />

5.2 Germany and Eastern Europe<br />

5.2.1 Atron<br />

5.2.2 PSI Transcom<br />

5.2.3 R&G<br />

5.2.4 Radcom<br />

5.2.5 Siemens<br />

5.2.6 UTI<br />

5.3 France and the UK<br />

5.3.1 21st Century<br />

5.3.2 ACIS<br />

5.3.3 Comatis<br />

5.3.4 GreenRoad<br />

5.3.5 INEO Systrans<br />

5.3.6 Lumiplan<br />

5.3.7 MiX Telematics<br />

5.3.8 Navocap<br />

5.3.9 Omnibus<br />

5.3.10 SPIE<br />

5.4 The Mediterranean<br />

5.4.1 AP Systems<br />

5.4.2 Digigroup<br />

5.4.3 GMV<br />

5.4.4 Grupo Etra<br />

5.4.5 Indra<br />

5.4.6 Link Technologies<br />

5.4.7 Prointec<br />

5.4.8 Selex Elsag<br />

5.4.9 T&T<br />

5.5 The Nordics<br />

5.5.1 DRI/Mobitec<br />

5.5.2 FARA<br />

5.5.3 Hogia<br />

5.5.4 Pilotfish<br />

5.5.5 Thoreb<br />

5.5.6 Trivector<br />

5.5.7 Vehco<br />

Glossary


M2M Research Series<br />

Smart Metering in North<br />

America and Asia-Pacific<br />

Smart Metering in North America and Asia-Pacific is the<br />

second consecutive market report from <strong>Berg</strong> <strong>Insight</strong> analysing<br />

the latest developments for smart metering in two dynamic<br />

regions.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with over 160 pages of unique business intelligence, including<br />

5-year industry forecasts, expert commentary and real-life case<br />

studies on which to base your business decisions.<br />

Highlights from the report:<br />

Case studies of smart metering projects by the leading<br />

energy industry players in North America and Asia-Pacific.<br />

In-depth market profiles of the US, Canada, China, Japan,<br />

South Korea, Australia and New Zealand.<br />

Status updates on the development of smart grid and<br />

communication technology.<br />

Profiles of the key players in the smart metering industry in<br />

North America and Asia-Pacific.<br />

Forecasts for smart meter shipments and penetration rates<br />

until 2016.<br />

Analysis of the latest market and industry developments in<br />

each region.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Smart meters spread through North<br />

America and Asia-Pacific<br />

Smart grid is one of the latest buzzwords in the energy sector and<br />

has become a catch-phrase for politicians, academics and industry<br />

leaders alike. The vision is to exploit the latest technology to address<br />

the immense challenge of securing the energy supply in the<br />

21st century. The concept of smart grids is at times put forward as a<br />

revolutionary solution to a wide array of problems, ranging from the<br />

West’s dependency on Middle Eastern oil to global warming. A more<br />

realistic expectation is however that smart grid technology will contribute<br />

to improved efficiency and reliability in energy distribution and<br />

better optimisation in allocation of resources and utilisation of assets.<br />

Smart metering is widely regarded as the cornerstone for future<br />

smart grids. In the history of metering technology, smart metering<br />

represents the third stage in a chain of developments spanning more<br />

than 100 years. Manually read meters have been around since the<br />

advent of the utility industry in the late 19th century. Over the last<br />

three decades, automated meter reading (AMR) based on one-way<br />

or two-way communication has evolved. Smart metering broadens<br />

the scope of AMR beyond just meter readings with additional features<br />

enabled by two-way data communication. A smart metering<br />

solution generally delivers a range of applications using an infrastructure<br />

comprising networked meters, communication networks<br />

and data collection and management systems.<br />

Smart electricity meters are being introduced all over the developed<br />

world. North America and Asia-Pacific are two of the most dynamic<br />

market regions that will see massive projects realised over the next<br />

five to ten years. <strong>Berg</strong> <strong>Insight</strong> forecasts that the installed base of<br />

smart electricity meters in North America will grow at a compound<br />

annual growth rate of 22.5 percent between 2010 and 2016 to reach<br />

87.4 million units at the end of the period. Asia-Pacific is projected<br />

to see the installed base of smart meters soar from a low level to<br />

378.1 million units by 2016.<br />

North America has the world’s highest penetration of automatic meter<br />

reading, exceeding 50 percent. Over the past years, many of the<br />

largest utilities in the US have embarked on ambitious smart grid<br />

schemes where one of the main objectives is to deploy second generation<br />

advanced metering infrastructure. AEP, PG&E, Southern California<br />

Edison, Southern Company, Florida Power & Light and Oncor<br />

are some of the largest utility groups having committed to full-scale<br />

rollouts to all customers. Furthermore there are numerous projects<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

%<br />

China<br />

South Korea<br />

USA & Canada<br />

Australia &<br />

New Zealand<br />

Projected penetration rates for smart electricity meters<br />

in North America and Asia-Pacific<br />

2011<br />

2016<br />

Japan<br />

among medium sized and small utilities throughout the country.<br />

National and state policies play a major role in shaping developments.<br />

The US market received a major boost through the Obama<br />

Administration’s American Recovery and Reinvestment Act that includes<br />

US$ 43 billion ear-marked for the energy sector plus tax incentives.<br />

A number of states, including California, Texas, Florida and<br />

Pennsylvania have approved utility plans for massive smart meter<br />

deployments, while others such as Virginia have turned down major<br />

project proposals. In Canada, the provinces of Ontario and British<br />

Columbia have introduced mandatory requirements for smart electricity<br />

meters for all customers. Hydro-Québec announced Canada’s<br />

largest project to date in 2011, involving 4.0 million metering points.<br />

East Asia is in the earliest phase of the adoption of smart metering<br />

technology. Large-scale rollouts to residential customers have only<br />

recently begun in Japan and South Korea, while China remains in<br />

the piloting stage. National and industry leaders do however have<br />

clear visions for the adoption of the technology over the course of<br />

this decade. South Korea has adopted a national plan for the construction<br />

of a smart grid by 2020. Japan already has the world’s most<br />

advanced power grid monitoring systems in place and several of the<br />

leading utilities have announced plans for smart meter deployments<br />

over the next ten years. China is investing massively in the expansion<br />

of the nation’s energy infrastructure to keep up with the rapidly<br />

increasing power demand. The country has begun deploying a new<br />

generation of more advanced electricity meters, which are prepared<br />

for two-way communication. China has however not yet decided on<br />

any final standards for smart grid networking. Although the country is<br />

on track to reach near 100 percent penetration for smart meters that<br />

support communication by 2015, there is not yet any infrastructure<br />

in place to network them into a nationwide smart grid. Australia and<br />

New Zealand began massive installations of smart meters at the end<br />

of the last decade. Adoption is driven by regulations in the case of<br />

Australia and by the main industry players in New Zealand.<br />

This report answers the following questions:<br />

How are national energy policies driving the adoption of<br />

smart metering?<br />

What new smart metering projects have been enabled<br />

by the US federal stimuli funds?<br />

What are the plans for smart meters deployments in<br />

British Columbia and Québec?<br />

When will China start the construction of a nationwide<br />

smart metering data network?<br />

What is the role for smart metering in South Korea’s<br />

national smart grid plan?<br />

What is the current status for smart metering in Japan?<br />

What is driving adoption of smart meters in Australia<br />

and New Zealand?<br />

Who are leading the race for market leadership in North<br />

America?<br />

Which are the main providers of PLC and wireless<br />

communication technology for smart meters?<br />

Which are the emerging top players in the Chinese<br />

smart metering industry?


Table of Contents<br />

1 Smart grids and<br />

intelligent meters<br />

1.1 Introduction to smart grids<br />

1.2 Smart metering<br />

1.2.1 Smart metering applications<br />

1.2.2 Smart metering infrastructure<br />

1.2.3 Benefits of smart metering<br />

1.3 Project strategies<br />

1.3.1 System design and sourcing<br />

1.3.2 Rollout and integration<br />

1.3.3 Implementation and operation<br />

1.3.4 Communicating with customers<br />

1.4 Regulatory issues<br />

1.4.1 Models for the introduction of smart<br />

meters<br />

1.4.2 Standardisation<br />

1.4.3 Individual rights issues<br />

2 PLC and wireless<br />

communication technologies<br />

2.1 PLC versus wireless communication<br />

2.1.1 PLC point-to-multipoint<br />

2.1.2 Wireless Mesh point-to-multipoint<br />

2.1.3 Cellular networks point-to-point<br />

2.1.4 Home area networking<br />

2.2 PLC technology and vendors<br />

2.2.1 Industry associations and standards<br />

2.2.2 Tier one semiconductor companies<br />

2.2.3 Advanced Digital Design<br />

2.2.4 CURRENT<br />

2.2.5 Leaguer Microelectronics<br />

2.2.6 Topscomm<br />

2.2.7 Yitran Communications<br />

2.3 Wireless technology and vendors<br />

2.3.1 Industry initiatives and standards<br />

2.3.2 Cinterion<br />

2.3.3 Coronis<br />

2.3.4 Ember<br />

2.3.5 Sierra Wireless<br />

2.3.6 Sigma Designs<br />

2.3.7 Simcom<br />

2.3.8 Telit<br />

3 Smart metering<br />

industry players<br />

3.1 Meter vendors<br />

3.1.1 Landis+Gyr<br />

3.1.2 Itron<br />

3.1.3 Elster<br />

3.1.4 Aichi Tokei Denki<br />

3.1.5 EDMI<br />

3.1.6 GE Energy<br />

3.1.7 Holley Metering<br />

3.1.8 Linyang Electronics<br />

3.1.9 LSIS<br />

3.1.10 Osaki Electric<br />

3.1.11 Sanxing Electric<br />

3.1.12 Schneider Electric<br />

3.1.13 Secure Meters<br />

3.1.14 Sensus<br />

3.1.15 Wasion<br />

3.1.16 Second tier Chinese meter vendors<br />

3.2 Smart grid solution providers<br />

3.2.1 Aclara<br />

3.2.2 Ambient<br />

3.2.3 Arcadian Networks<br />

3.2.4 Arc Innovations<br />

3.2.5 Cooper Power Systems<br />

3.2.6 Comverge<br />

3.2.7 Echelon<br />

3.2.8 Eastsoft<br />

3.2.9 FXXC<br />

3.2.10 KDN<br />

3.2.11 Nighthawk<br />

3.2.12 NURI Telecom<br />

3.2.13 Omni System<br />

3.2.14 Ruggedcom<br />

3.2.15 Silver Spring Networks<br />

3.2.16 SmartSynch<br />

3.2.17 Tantalus<br />

3.2.18 Trilliant<br />

3.2.19 Tropos Networks<br />

3.3 MDMS and middleware<br />

vendors<br />

3.3.1 Ecologic Analytics<br />

3.3.2 eMete<br />

3.3.3 EnergyICT<br />

3.3.4 NorthStar Utilities Solutions<br />

3.3.5 Oracle<br />

3.3.6 OSIsoft<br />

3.3.7 SAP<br />

3.4 System integrators and managed<br />

service providers<br />

3.4.1 IT industry players<br />

3.4.2 Telecom industry players<br />

4 Market analysis<br />

4.1 North America<br />

4.1.1 Market forecast<br />

4.1.2 Technology trends<br />

4.1.3 Industry analysis<br />

4.2 East Asia<br />

4.2.1 Market forecast<br />

4.2.2 Technology trends<br />

4.2.3 Industry analysis<br />

4.3 Australia and New Zealand<br />

4.3.1 Market forecast<br />

4.3.2 Technology trends<br />

4.3.3 Industry analysis<br />

5 North America<br />

5.1 Regional summary<br />

5.2 United States<br />

5.2.1 Electricity and gas utilities<br />

5.2.2 Federal smart grid and metering<br />

initiatives<br />

5.2.3 Regional overview: Northeast<br />

5.2.4 Regional overview: Midwest<br />

5.2.5 Regional overview: South<br />

5.2.6 Regional overview: West<br />

5.3 Canada<br />

5.3.1 Electricity and gas utilities<br />

5.3.2 Ontario’s smart meter rollout<br />

5.3.3 Smart metering initiatives in other<br />

provinces<br />

6 Asia-Pacific<br />

6.1 Regional summary<br />

6.2 China<br />

6.2.1 Electricity industry structure<br />

6.2.2 Smart grid and metering initiatives<br />

6.3 Japan<br />

6.3.1 Electricity and gas utility industry<br />

structure<br />

6.3.2 Smart grid and metering initiatives<br />

6.4 South Korea<br />

6.4.1 Electricity and gas utility industry<br />

structure<br />

6.4.2 National smart grid plan for 2020<br />

6.5 Australia<br />

6.5.1 Electricity and gas utility industry<br />

structure<br />

6.5.2 Regulation driven deployments of<br />

smart meters<br />

6.6 New Zealand<br />

6.6.1 Electricity industry structure<br />

6.6.2 Industry driven deployments of smart<br />

meters<br />

7 Case studies<br />

7.1 North America<br />

7.1.1 Pacific Gas & Electric<br />

7.1.2 Sempra Energy<br />

7.1.3 Florida Power & Light<br />

7.1.4 Hydro-Québec<br />

7.1.5 BC Hydro<br />

7.2 East Asia<br />

7.2.1 State Grid Corporation of China<br />

7.2.2 Kansai Electric Power<br />

7.2.3 KEPCO<br />

7.3 Australia and New Zealand<br />

7.3.1 Ausgrid<br />

7.3.2 Jemena and UED<br />

7.3.3 SP AusNet<br />

7.3.4 Vector<br />

Glossary


M2M Research Series<br />

Smart Metering in Europe<br />

Smart Metering in Europe is the eighth consecutive report<br />

from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments for smart<br />

metering in Europe.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with over 220 pages of unique business intelligence, including<br />

5-year industry forecasts, expert commentary and real-life case<br />

studies on which to base your business decisions.<br />

Highlights from the eighth edition of the report:<br />

Case studies of smart metering projects by the leading<br />

energy groups in Europe.<br />

In-depth market profiles of nineteen countries in Europe.<br />

Status updates on the development of smart grid and<br />

communication technology.<br />

Updated profiles of the key players in the metering industry.<br />

Revised market forecasts lasting until 2016.<br />

Summary of the latest developments in the European energy<br />

industry.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Half of Europe’s households will<br />

get smart meters by 2016<br />

Smart grid is one of the latest buzzwords in the energy sector and<br />

has become a catch-phrase for politicians, academics and industry<br />

leaders alike. The vision is to exploit the latest technology to address<br />

the immense challenge of securing the energy supply in the<br />

21st century. The concept of smart grids is at times put forward as a<br />

revolutionary solution to a wide array of problems, ranging from the<br />

West’s dependency on Middle Eastern oil to global warming. A more<br />

realistic expectation is however that smart grid technology will contribute<br />

to improved efficiency and reliability in energy distribution and<br />

better optimisation in allocation of resources and utilisation of assets.<br />

Smart metering is widely regarded as the cornerstone for future<br />

smart grids. In the history of metering technology, smart metering<br />

represents the third stage in a chain of developments spanning more<br />

than 100 years. Manually read meters have been around since the<br />

advent of the utility industry in the late 19th century. Over the last<br />

three decades, automated meter reading (AMR) based on one-way<br />

or two-way communication has evolved. Smart metering broadens<br />

the scope of AMR beyond just meter readings with additional features<br />

enabled by two-way data communication. A smart metering<br />

solution generally delivers a range of applications using an infrastructure<br />

comprising networked meters, communication networks<br />

and data collection and management systems.<br />

Smart electricity meters are being introduced all over the developed<br />

world. Europe had an early start in the 2000s when Enel completed<br />

the first nationwide rollout of smart meters to more than 30 million<br />

customers in Italy. Later deployments followed in the Nordic countries<br />

and at the beginning of the 2010s, Spain, France and the UK are<br />

assuming the positions as the most active markets. <strong>Berg</strong> <strong>Insight</strong> forecasts<br />

that the installed base of smart electricity meters in EU23+2<br />

will grow at a compound annual growth rate of 19.4 percent between<br />

2010 and 2016 to reach 130.5 million units at the end of the period.<br />

Annual shipments of smart electricity meters are anticipated to exceed<br />

20 million units in the mid-2010s.<br />

A majority of the countries in Western Europe have adopted a policy<br />

of regulation-driven introduction of smart meters. Italy and Sweden<br />

were first to complete their rollouts that began in 2001 and 2003 respectively.<br />

Finland and Norway will require smart meters for all electricity<br />

customers by 2013 and 2016 respectively, while France, Spain,<br />

the UK and Ireland have set targets to achieve full penetration in<br />

Million units<br />

150<br />

120<br />

90<br />

60<br />

30<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Installed base of electricity smart meters (EU23+2 2010–2016)<br />

Year<br />

the final years of this decade. That will also be the case in the Netherlands,<br />

where the plans to introduce smart meters met strong opposition<br />

on the grounds of being invasive to privacy and were delayed<br />

for several years before they were finally approved by the parliament<br />

in late 2010. Germany on the other hand has only implemented<br />

some weaker regulatory drivers and the federal government has declared<br />

that it has no intention to push for a quick nationwide rollout.<br />

Iberia is the new focal point for smart metering in Europe. Following<br />

a build-up phase in 2010, massive installations will take off in<br />

Spain during 2011, as Endesa goes ahead with a full-scale rollout.<br />

Iberdrola is performing major pilots involving hundreds of thousands<br />

of customers and activity is also picking up at Gas Natural Fenosa.<br />

Furthermore EDP considers a nationwide rollout in Portugal that can<br />

be coordinated with the mandatory deployment by its distribution<br />

network subsidiary in Spain. <strong>Berg</strong> <strong>Insight</strong> forecasts that annual shipments<br />

of smart electricity meters in Iberia will peak at around 5 million<br />

units per year during 2016–2017 before the market gradually<br />

slows down in the final years before the installation deadline in 2018.<br />

France and the UK became active markets in 2010 as ERDF and<br />

British Gas entered the initial phases of their smart meter installation<br />

programmes. ERDF plans to start with a massive nationwide rollout<br />

from 2012 and will need to deploy around 6 million units per year<br />

between 2014 and 2017 in order to fulfil the regulatory obligations<br />

that will take effect in 2018. The UK is currently in a build-up phase,<br />

preparing for a mass rollout to nearly 30 million customers during<br />

2014–2019. British Gas and E.ON have committed to the installation<br />

of at least one million smart electricity meters each before the mass<br />

rollout begins. <strong>Berg</strong> <strong>Insight</strong> expects that all major energy suppliers in<br />

the UK will switch to smart meters for new connections and planned<br />

replacements prior to the mass rollout. Ireland plans a nationwide<br />

rollout of smart meters starting in 2014.<br />

This report answers the following questions:<br />

How are EU and national energy policies driving the<br />

adoption of smart metering?<br />

What are the UK government’s plans for a nationwide<br />

rollout of smart meters?<br />

How are smart meter deployments proceeding in<br />

France and Spain?<br />

What are the latest regulatory developments in the<br />

Netherlands and Norway?<br />

What are the prospects for massive smart meter<br />

installations in Central Eastern Europe?<br />

Which lessons can be learnt from customer behaviour<br />

trials?<br />

Who are the leading suppliers of smart metering<br />

solutions for the European market?<br />

Which are the main providers of PLC and wireless<br />

communication technology for smart meters?<br />

What will be the impact of pan-European standard<br />

initiatives related to smart metering?


Table of Contents<br />

1 Electricity, gas and district<br />

heating distribution in Europe<br />

1.1 Energy industry players<br />

1.2 Electricity market<br />

1.3 Gas market<br />

1.4 District heating market<br />

2 Smart metering<br />

2.1 Introduction to smart grids<br />

2.2 Smart metering<br />

2.2.1 Smart metering applications<br />

2.2.2 Smart metering infrastructure<br />

2.2.3 Benefits of smart metering<br />

2.3 Project strategies<br />

2.3.1 System design and sourcing<br />

2.3.2 Rollout and integration<br />

2.3.3 Implementation and operation<br />

2.3.4 Communicating with customers<br />

2.4 Regulatory issues<br />

2.4.1 Models for the introduction of<br />

smart meters<br />

2.4.2 Standardisation initiatives<br />

2.4.3 Individual rights issues<br />

3 PLC and wireless<br />

communication technologies<br />

3.1 PLC versus wireless communication<br />

3.1.1 PLC point-to-multipoint<br />

3.1.2 Wireless Mesh point-to-multipoint<br />

3.1.3 Cellular networks point-to-point<br />

3.1.4 Home area networking<br />

3.2 PLC technology and vendors<br />

3.2.1 Industry associations and standards<br />

3.2.2 Tier one semiconductor companies<br />

3.2.3 Advanced Digital Design<br />

3.2.4 CURRENT<br />

3.2.5 Power Plus Communications<br />

3.2.6 Yitran Communications<br />

3.3 Wireless technology and vendors<br />

3.3.1 Industry initiatives and standards<br />

3.3.2 Cinterion<br />

3.3.3 Coronis<br />

3.3.4 Develco<br />

3.3.5 Ember<br />

3.3.6 Radiocrafts<br />

3.3.7 Sierra Wireless<br />

3.3.8 Sigma Designs<br />

3.3.9 Telit<br />

4 Smart metering<br />

industry players<br />

4.1 Meter vendors<br />

4.1.1 Landis+Gyr<br />

4.1.2 Itron<br />

4.1.3 Elster<br />

4.1.4 Aidon<br />

4.1.5 Apator<br />

4.1.6 Circutor<br />

4.1.7 Diehl Metering<br />

4.1.8 EDMI<br />

4.1.9 EMH Metering<br />

4.1.10 GE Energy<br />

4.1.11 Hager<br />

4.1.12 Iskraemeco<br />

4.1.13 Janz<br />

4.1.14 Kamstrup<br />

4.1.15 Sagemcom<br />

4.1.16 Secure Meters<br />

4.1.17 Sensus<br />

4.1.18 ZIV<br />

4.1.19 ZPA Smart Energy<br />

4.2 Smart grid solution providers<br />

4.2.1 ADD Grup<br />

4.2.2 Echelon<br />

4.2.3 Embriq<br />

4.2.4 Enel<br />

4.2.5 ISA<br />

4.2.6 Metrima<br />

4.2.7 NURI Telecom<br />

4.2.8 Remote Energy Monitoring<br />

4.2.9 Sentec<br />

4.2.10 Siemens<br />

4.2.11 Silver Spring Networks<br />

4.2.12 Smart Grid Norway<br />

4.2.13 Trilliant<br />

4.2.14 Tropos Networks<br />

4.2.15 Tritech Technologies<br />

4.2.16 Xemex<br />

4.3 MDMS and middleware vendors<br />

4.3.1 Ecologic Analytics<br />

4.3.2 eMeter<br />

4.3.3 EnergyICT<br />

4.3.4 Görlitz<br />

4.3.5 Netinium<br />

4.3.6 Oracle<br />

4.3.7 OSIsoft<br />

4.3.8 Powel<br />

4.3.9 Process Vision<br />

4.3.10 SAP<br />

4.4 System integrators and managed service<br />

providers<br />

4.4.1 IT industry players<br />

4.4.2 Telecom industry players<br />

5 Market analysis<br />

5.1 Market drivers and restraints<br />

5.1.1 Macroeconomic factors<br />

5.1.2 Regulatory environment<br />

5.1.3 Competitive environment<br />

5.1.4 Industry standards<br />

5.2 Smart metering market forecast<br />

5.2.1 Geographical markets<br />

5.2.2 Capital expenditure forecast<br />

5.3 Technology trends<br />

5.4 Industry analysis<br />

6 Market profiles:<br />

Northern Europe<br />

6.1 Sweden<br />

6.1.1 Electricity distribution industry structure<br />

6.1.2 Metering regulatory environment<br />

6.1.3 Smart metering market developments<br />

6.1.4 The outcome of a regulation driven rollout<br />

6.2 Denmark<br />

6.2.1 Electricity distribution industry structure<br />

6.2.2 Metering regulatory environment<br />

6.2.3 Smart metering market developments<br />

6.3 Finland<br />

6.3.1 Electricity distribution industry structure<br />

6.3.2 Metering regulatory environment<br />

6.3.3 Smart metering market developments<br />

6.4 Norway<br />

6.4.1 Electricity distribution industry structure<br />

6.4.2 Metering regulatory environment<br />

6.4.3 Smart metering market developments<br />

7 Market profiles:<br />

Western Europe<br />

7.1 Austria<br />

7.1.1 Electricity and gas distribution industry<br />

structure<br />

7.1.2 Metering regulatory environment and smart<br />

metering market developments<br />

7.2 Belgium<br />

7.2.1 Electricity and gas distribution industry structure<br />

7.2.2 Metering regulatory environment and smart<br />

metering market developments<br />

7.3 France<br />

7.3.1 Electricity and gas distribution industry structure<br />

7.3.2 Metering regulatory environment and smart<br />

metering market developments<br />

7.4 Germany<br />

7.4.1 Electricity and gas distribution industry<br />

structure<br />

7.4.2 Metering regulatory environment<br />

7.4.3 Smart meter market developments<br />

7.5 Ireland<br />

7.5.1 Electricity and gas distribution industry<br />

structure<br />

7.5.2 Nationwide program for deployment of smart<br />

meters<br />

7.6 The Netherlands<br />

7.6.1 Electricity and gas distribution industry structure<br />

7.6.2 Metering regulatory environment and smart<br />

meter market developments<br />

7.7 United Kingdom<br />

7.7.1 Electricity and gas distribution industry structure<br />

7.7.2 Metering regulatory environment<br />

7.7.3 Plans for a nationwide smart metering system<br />

7.7.4 Early smart meter deployments<br />

8 Market profiles:<br />

Southern Europe<br />

8.1 Italy<br />

8.1.1 Electricity and gas distribution industry structure<br />

8.1.2 Metering regulatory environment<br />

8.1.3 Smart metering market developments<br />

8.2 Spain<br />

8.2.1 Electricity and gas distribution industry structure<br />

8.2.2 Metering regulatory environment<br />

8.2.3 Smart metering market developments<br />

8.3 Portugal<br />

8.3.1 Electricity and gas distribution industry structure<br />

8.3.2 Metering regulatory environment and smart<br />

metering market developments<br />

8.4 Malta<br />

8.4.1 Utility industry structure<br />

8.4.2 National smart grid project<br />

9 Market profiles:<br />

Central Eastern Europe<br />

9.1 Bulgaria<br />

9.1.1 Electricity and gas distribution industry<br />

structure<br />

9.1.2 Metering regulatory environment and smart<br />

metering market developments<br />

9.2 Czech Republic<br />

9.2.1 Electricity and gas distribution industry structure<br />

9.2.2 Metering regulatory environment and smart<br />

metering pilots<br />

9.3 Poland<br />

9.3.1 Electricity and gas distribution industry structure<br />

9.3.2 Metering regulatory environment and smart<br />

metering projects<br />

9.4 Slovenia<br />

9.4.1 Electricity industry structure and metering<br />

regulatory environment<br />

9.4.2 Smart metering projects<br />

10 Case studies: Smart metering<br />

projects in Europe<br />

10.1 Enel<br />

10.1.1 The Telegestore project in Italy<br />

10.1.2 The Meters and More initiative<br />

10.1.3 Endesa’s smart metering project in Spain<br />

10.2 ERDF<br />

10.2.1 The Linky Programme<br />

10.2.2 System development and full-scale pilot<br />

10.3 Iberdrola<br />

10.3.1 The PRIME project<br />

10.3.2 Smart metering projects in Spain and the US<br />

10.4 RWE<br />

10.4.1 Regional DSO operations in Germany<br />

10.4.2 The Mülheim Zählt project<br />

10.5 Fortum<br />

10.5.1 Smart meter rollout in Sweden<br />

10.5.2 Smart meter rollout in Finland<br />

10.6 Energa<br />

10.7 ESB<br />

10.7.1 Communication technology trials<br />

10.7.2 Consumer behaviour trials<br />

10.7.3 Cost benefit analysis<br />

10.8 Smart metering projects in the UK<br />

10.8.1 Ofgem’s Energy Demand Research Project<br />

10.8.2 British Gas’ early rollout to residential<br />

customers<br />

10.8.3 Candidate technologies for the DCC’s smart<br />

metering network<br />

Glossary


M2M Research Series<br />

Security Applications<br />

and Wireless M2M<br />

Security Applications and Wireless M2M is the fourth<br />

consecutive report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest<br />

developments among the key applications for wireless M2M<br />

communication in the security industry.<br />

This report in the M2M Research Series provides you with<br />

110 pages of unique business intelligence including 5-year<br />

industry forecasts and expert commentary on which to base<br />

your business decisions.<br />

This report will allow you to:<br />

Identify key players on the European security market.<br />

Learn about the latest propositions from leading monitored<br />

alarm system vendors.<br />

Understand the opportunities and challenges for stolen<br />

vehicle tracking services.<br />

Anticipate future drivers for increasing penetration and<br />

replacement sales for alarm systems.<br />

Realize the commercial potential of emerging segments<br />

including leisure vehicle and boat tracking.<br />

Predict future trends in lone worker protection services.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Strong growth ahead for connected<br />

security applications in Europe<br />

The private security sector is a global industry comprising services<br />

and solutions such as manned guarding, alarm system integration<br />

and monitoring, cash and valuables handling as well as various<br />

services like consulting and private investigations. The global market<br />

value of the security industry grew to an estimated € 110 billion in<br />

2010. The more mature European and North American markets still<br />

dominate the industry with a combined market share of close to 70<br />

percent. In 2010, the European market value was about flat at € 45.5<br />

billion. The long-term annual growth rate is estimated to between<br />

7 and 9 percent globally, and between 6 and 8 percent in Europe<br />

and the US. Historically, annual growth has exceeded GDP by a few<br />

percentage points each year.<br />

<strong>Berg</strong> <strong>Insight</strong> forecasts that shipments of wireless M2M modules for<br />

security applications in EU27+2 will grow from 2.4 million in 2010 at<br />

a compound annual growth rate (CAGR) of 55 percent to reach 21.4<br />

million by 2015. At the same time, the number of wireless devices<br />

monitored from an alarm receiving centre and similar will grow from<br />

7.0 million in 2010 at a CAGR of 41 percent to reach about 39.2 million<br />

by the end of 2015.<br />

The key application areas for wireless M2M communication in the<br />

European security industry are alarm systems and vehicle tracking<br />

systems for passenger cars and commercial vehicles. Alarm<br />

systems are off-the-shelf security systems for small businesses and<br />

private homes. These are divided into two main categories – local<br />

alarms and monitored alarms. The simplest type of local alarm only<br />

reacts to activation by ringing bells to alert the surroundings and<br />

scare off intruders. Monitored alarms are connected to an alarm receiving<br />

centre (ARC). Today, only 25 percent of the 30 million alarm<br />

systems in Europe are monitored by an ARC. Monitored alarm systems<br />

are dependent on reliable communication networks. There is a<br />

significant untapped potential in the residential market segment that<br />

can be fulfilled with the latest generation of monitored alarm systems<br />

with GSM/GPRS or dual signalling technology.<br />

Vehicle tracking and recovery is the second major application area<br />

for wireless M2M communication in the security industry. Devices<br />

combining GPS and GSM/GPRS technologies enable monitoring<br />

services for any mobile object. Passenger cars and commercial<br />

vehicles constitute the main target markets by virtue of numbers<br />

and individual value, but there are also many niche markets such<br />

Million connections<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

2009<br />

2010<br />

2011<br />

2012<br />

Cellular M2M connections for security applications (EU27+2 2009–2015)<br />

2013<br />

2014<br />

2015<br />

Year<br />

as construction equipment and plant machinery as well as leisure<br />

vehicles and boats. Similar hardware designs also constitute the onboard<br />

platform for fleet management solutions and the tracking capabilities<br />

of these systems enable basic security applications. What<br />

distinguishes vehicle tracking and recovery system from fleet management<br />

systems is the monitoring and response service of the secure<br />

monitoring centre that is linked to GPS-aided security systems.<br />

Today, only a handful car OEMs offer telematics solutions in a few<br />

markets in the EU. <strong>Berg</strong> <strong>Insight</strong> anticipates that additional brands<br />

will launch OEM telematics solutions on the European market in response<br />

to the eCall intiative within the EU. The European Commission<br />

has a strong commitment to introducing eCall as a standard<br />

feature in all new cars and recently set 2014 as the new target date<br />

for realising this vision – through regulations if necessary. Vehicle<br />

tracking and recovery is likely to become a key component for many<br />

OEM telematics systems in the next few years, especially for premium<br />

cars. Features beyond basic E112 functionality are likely to<br />

be subscription services that have to be renewed some years after<br />

the purchase of a new vehicle. Significant churn can be expected for<br />

these services.<br />

There are also many emerging niche applications for wireless M2M<br />

in the security industry that have not yet reached significant volumes.<br />

Personal security for lone workers is an application area offering<br />

growth opportunities in the medium and long term. Wearable integrated<br />

tracking and wireless communication devices can be used<br />

for protecting individuals. This area is mainly driven by stringent employee<br />

health and safety regulations in the UK, but other countries<br />

may also introduce similar laws in the future. Moreover, various forms<br />

of electronic monitoring of offenders are gradually being rolled out<br />

across Europe to reduce costs of running prisons and assist in the<br />

rehabilitation process.<br />

This report answers the following questions:<br />

What is the potential market size for wireless M2M<br />

communication in the security industry?<br />

Which are the key applications that generate most<br />

benefits for the end customers?<br />

Who are the leading providers of monitored small<br />

business and home alarm systems?<br />

Why are leading alarm system providers investing in<br />

wireless technology?<br />

When will wireless connectivity become a standard<br />

feature in alarm systems?<br />

Who are the leading providers of aftermarket vehicle<br />

tracking solutions?<br />

What new applications for wireless M2M are emerging<br />

in the security industry?<br />

Are regular handsets suitable for lone worker<br />

protection services?


Table of Contents<br />

1 Overview of the European<br />

security industry<br />

1.1 Market overview<br />

1.1.1 Security services<br />

1.1.2 Security systems<br />

1.1.3 Small alarm systems<br />

1.1.4 Cash handling<br />

1.2 Key industry players<br />

1.2.1 Group 4 Securicor<br />

1.2.2 Prosegur<br />

1.2.3 Securitas<br />

1.2.4 Tyco International<br />

1.2.5 United Technologies Corporation<br />

2 Small business and home<br />

alarm systems<br />

2.1 The European small alarm systems<br />

market<br />

2.1.1 Monitored alarm systems<br />

2.1.2 Alarm monitoring services<br />

2.2 Alarm signal transmission<br />

2.2.1 Small alarm system technology<br />

overview<br />

2.2.2 Mobile network alarm communication<br />

solutions<br />

2.2.3 Market penetration for mobile network<br />

alarm communication<br />

2.3 Company profiles<br />

2.3.1 ADT<br />

2.3.2 Group 4 Securicor<br />

2.3.3 Prosegur Activa<br />

2.3.4 Securitas Direct<br />

2.3.5 UTC Fire & Security<br />

2.4 Visual security systems<br />

2.4.1 Network cameras<br />

2.4.2 Digital video technology<br />

2.4.3 Wireless network requirements<br />

2.4.4 Network camera vendors<br />

3 Commercial vehicle and<br />

asset tracking<br />

3.1 The European commercial vehicle<br />

market<br />

3.2 Fleet management solutions<br />

3.2.1 Vehicle management<br />

3.2.2 Security tracking<br />

3.2.3 Driver management<br />

3.2.4 Transport management<br />

3.2.5 Mobile workforce management and<br />

lone worker security<br />

3.3 Container tracking solutions<br />

3.3.1 Intermodal shipping containers<br />

3.3.2 Overview of the container shipping<br />

industry<br />

3.3.3 Container tracking solutions<br />

3.4 Key fleet management solution<br />

providers<br />

3.4.1 Digicore: A global vehicle tracking<br />

solution provider<br />

3.4.2 ID-Systems – Asset Intelligence: The<br />

leading provider of trailer telematics<br />

3.4.3 Masternaut: Europe’s leading fleet<br />

management provider merges with<br />

Cybit<br />

3.4.4 Qualcomm Enterprise Services: Global<br />

provider of integrated M2M solutions<br />

3.4.5 Transics: Pan-European heavy truck<br />

and transport telematics provider<br />

3.4.6 Trimble: Strengthens European<br />

presence with acquisition of Punch<br />

Telematix<br />

3.4.7 Volvo Group: Dynafleet available with<br />

security service from Securitas<br />

3.5 Satellite communication network<br />

operators<br />

3.5.1 Globalstar: Increases focus<br />

on consumer tracking and<br />

communication<br />

3.5.2 Iridium: Experiences fast growth in<br />

M2M data services<br />

3.5.3 Orbcomm: Dedicated M2M satellite<br />

data communications provider<br />

4 Car tracking and consumer<br />

asset tracking<br />

4.1 The European passenger car market<br />

4.2 Passenger car telematics<br />

4.2.1 Stolen vehicle recovery<br />

4.2.2 eCall and driver assistance<br />

4.2.3 Motor insurance telematics<br />

4.3 Insurance industry standards for<br />

vehicle tracking<br />

4.3.1 Belgium<br />

4.3.2 The Netherlands<br />

4.3.3 Norway<br />

4.3.4 United Kingdom<br />

4.4 Aftermarket vehicle tracking<br />

solutions<br />

4.4.1 Octo Telematics: European leader in<br />

motor insurance telematics<br />

4.4.2 Cobra Automotive Technologies: Pan-<br />

European SVR provider<br />

4.4.3 LoJack distributors: TRACKER,<br />

Traqueur and Detector<br />

4.5 OEM car telematics solutions<br />

4.5.1 BMW ConnectedDrive<br />

4.5.2 PSA Peugeot Citroën RT3/RT4/<br />

Navidrive<br />

4.5.3 Volvo On Call<br />

4.6 The European motorcycle and<br />

moped market<br />

4.6.1 Motorcycle theft in Europe<br />

4.6.2 Motorcycle tracking solutions<br />

4.7 The European leisure vehicle and<br />

boat market<br />

4.7.1 Market overview<br />

4.7.2 Boat tracking solutions<br />

5 People tracking<br />

5.1 Corporate people tracking and lone<br />

worker protection<br />

5.1.1 Lone worker legislation<br />

5.1.2 Lone worker protection devices and<br />

services<br />

5.1.3 Electronic monitoring of offenders<br />

5.2 Consumer-oriented people tracking<br />

5.2.1 Mobile operator services<br />

5.2.2 Third party handset-based tracking<br />

services<br />

5.2.3 Dedicated GPS tracking devices and<br />

services<br />

5.3 Company profiles<br />

5.3.1 Connexion2: Identicom and the<br />

SoloProtect managed lone worker<br />

service<br />

5.3.2 Geonovo: Developer of the Romad<br />

RSP-100 lone worker device<br />

5.3.3 SPOT: GPS tracking and satellite<br />

messenger devices from Globalstar<br />

5.3.4 Tramigo: TLD landmarks facilitates<br />

location of assets without using maps<br />

5.3.5 Twig Com: Acquired the TWIG tracking<br />

device business from GeoSentric<br />

6 Market forecasts and trends<br />

6.1 Market trends and drivers<br />

6.1.1 Alarm systems: GSM/GPRS<br />

complementing and replacing PSTN<br />

6.1.2 Fleet management: Market recovering<br />

from the economic downturn<br />

6.1.3 Car telematics: The EC sets 2014 as<br />

new target for introduction of eCall<br />

6.1.4 Lone worker protection: Market driven<br />

by UK legislation<br />

6.1.5 Consumer asset tracking: Steady<br />

growth from diverse applications<br />

6.2 Market forecasts<br />

6.2.1 Alarm systems<br />

6.2.2 Fleet management, commercial<br />

vehicle and asset tracking<br />

6.2.3 Car telematics<br />

6.2.4 Lone worker protection services<br />

6.2.5 Consumer asset tracking applications<br />

Glossary


M2M Research Series<br />

Smart Homes and<br />

Home Automation<br />

Smart Homes and Home Automation is a comprehensive<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments<br />

on the global connected home market.<br />

This report in the M2M Research Series provides you with<br />

130 pages of unique business intelligence including 5-year<br />

industry forecasts and expert commentary on which to base<br />

your business decisions.<br />

Highlights from the first edition of the report:<br />

<strong>Insight</strong>s from 30 executive interviews with market<br />

leading companies.<br />

360-degree overview of the smart homes & home<br />

automation ecosystem.<br />

Summary of industry trends in key vertical market<br />

segments.<br />

Statistical data on HA adoption in major countries<br />

and regions.<br />

Market forecasts lasting until 2015.<br />

Reviews of the latest initiatives launched by industry<br />

players.<br />

Updated profiles of the key vendors on this market.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Where is the global smart<br />

home market headed?<br />

Smart homes and home automation (HA) technologies have been<br />

around for two or three decades. These technologies have been a<br />

niche segment either for the very affluent, or extreme technophiles<br />

who wanted to do a few things like control their lights or window<br />

shades remotely, or stream audio-video content between rooms, or<br />

do some basic home monitoring. Initial HA systems focused on security<br />

and utility management, but newer all-in-one systems give users<br />

real-time control over almost all the systems in the house while at<br />

home or away, resulting in a smarter and more energy efficient home<br />

tailored to the homeowner’s lifestyle.<br />

<strong>Berg</strong> <strong>Insight</strong> sees a new day dawning for this industry due to a perfect<br />

confluence of key market, regulatory, strategic and technology<br />

trends. First is the pull from consumers who desire to use products<br />

such as iPhones and iPads to control and enhance their lifestyles<br />

with the touch of a button on user-friendly and intuitive interfaces.<br />

The regulatory drivers come from governmental directives, whereby<br />

countries and utilities are mandated to better control the generation,<br />

distribution and consumption of power in residences. The strategic<br />

push comes from new powerful entrants into this space such as<br />

broadband providers who are already inside consumers’ homes and<br />

are looking for the next growth opportunities to increase ARPU, reduce<br />

churn and become solutions providers rather than just “dumbpipes”.<br />

In the US, broadband companies such as AT&T, Comcast<br />

and Verizon have shown their hand as they have made recent strong<br />

advances into this space. Finally, the technology is coming together<br />

with increasing focus on standardization and interoperability, even<br />

as the cost of modules, chipsets and software is trending down.<br />

It is important to understand the different possible gateways and<br />

business models into the smart home from broadband and wireless<br />

providers, utility companies, consumer electronics manufacturers,<br />

retail outlets, to traditional security and home automation suppliers,<br />

distributors and dealers. It is also important to differentiate the<br />

different dynamics between the luxury homes segment versus the<br />

mainstream, as well as the complexities involved in retrofit of existing<br />

housing stock, versus new home construction. Companies also<br />

have to strategize whether they wish to offer standalone smart homes<br />

technologies, or move towards multifunction whole-home systems.<br />

For the last couple of years, many home automation companies<br />

have struggled. Part of the reason is that the convenience and<br />

Revenues (US$ Billion)<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

2010<br />

2011<br />

2012<br />

Total annual home automation installation revenues (World 2010–2015)<br />

2013<br />

2014<br />

2015<br />

Year<br />

comfort functions offered by HA systems are not critical or essential<br />

and thus suffer when the financial and economic picture is gloomy.<br />

A second reason is that the best time to install a HA system is during<br />

new home construction, but new construction has been at a virtual<br />

standstill in many regions. Usually the large homes segment is immune<br />

to economic fluctuations, but this time the malaise has been<br />

so widespread that even the high-end segments have been affected.<br />

There will continue to be short-term challenges for the HA industry.<br />

The economic and housing gloom could stretch out much longer<br />

than currently envisaged. Other challenges include lack of awareness<br />

of HA offerings and the fact that consumers in many segments<br />

do not see a strong reason for HA systems. The costs involved in<br />

terms of equipment, installation and ongoing maintenance and service,<br />

are all perceived as deterrents. However, there are signs of economic<br />

growth and increased residential construction in many parts<br />

of the world. In addition, new initiatives such as Google’s Android@<br />

Home can bring increased consumer awareness of HA systems and<br />

facilitate interoperability between equipment from multiple vendors.<br />

<strong>Berg</strong> <strong>Insight</strong> forecasts that worldwide revenues from shipments of<br />

home automation systems will grow at a compound annual growth<br />

rate (CAGR) of 33 percent from US$ 2.3 billion in 2010 to nearly<br />

US$ 9.5 billion in 2015. These numbers include all 3 categories of<br />

home automation: professionally installed, Do-It-Yourself (DIY) and<br />

the more recent category systems installed by broadband and utility<br />

service providers. Significant revenue contributions will come from<br />

retrofit of existing homes, both luxury and mainstream. The home<br />

automation industry is also opening up a new potential market for<br />

cellular M2M devices and services. <strong>Berg</strong> <strong>Insight</strong> forecasts that the<br />

number of cellular connections used by home automation systems<br />

worldwide will grow at a compound annual growth rate of 85.6 percent<br />

from 0.25 million in 2010 to 5.5 million connections in 2015.<br />

The vast majority of these are security and access control systems.<br />

Shipments of cellular M2M communication units for home automation<br />

systems are forecasted to grow from 0.2 million units in 2010 to<br />

1.8 million units in 2015.<br />

This report answers the following questions:<br />

What is the mix of smart home technologies in new<br />

homes versus existing homes?<br />

How are regulatory initiatives shaping the market?<br />

What are the main drivers behind growth in the<br />

Americas, Europe and Asia-Pacific?<br />

What are the main challenges and roadblocks towards<br />

widespread adoption?<br />

Which are the main verticals within smart homes and<br />

home automation?<br />

What are the business models and channels-to-market<br />

of smart home vendors?<br />

What is the relevance of wireless technologies in home<br />

automation?<br />

How will the global smart home market evolve in the<br />

next decade?


Table of Contents<br />

1 Smart homes, connected<br />

homes and home automation<br />

1.1 Introduction<br />

1.2 Types of home automation<br />

1.2.1 Energy management and climate<br />

control systems<br />

1.2.2 Security and access control systems<br />

1.2.3 Lighting, windows and appliance<br />

control systems<br />

1.2.4 Audio-visual and entertainment<br />

systems<br />

1.2.5 Healthcare systems and home<br />

monitoring<br />

1.2.6 Pool, spa control, sprinkler, fountains<br />

and miscellaneous<br />

1.2.7 Multifunction and whole-home home<br />

automation systems<br />

1.3 Market drivers and barriers<br />

1.3.1 Market drivers<br />

1.3.2 Market barriers<br />

2 Home automation<br />

market segments<br />

2.1 The custom (luxury) segment<br />

2.1.1 The luxury segment is not immune to<br />

recessions<br />

2.1.2 Customer identification methods<br />

2.2 Mainstream (production) segment<br />

2.2.1 Single-family detached homes<br />

2.2.2 Multi-family dwelling units (MDUs)<br />

2.3 New homes versus existing homes<br />

2.3.1 The new home HA segment is affected<br />

by the fall in new home construction<br />

2.3.2 The existing home market is the growth<br />

segment<br />

3 The housing industry<br />

3.1 The North American housing market<br />

3.1.1 Canada<br />

3.1.2 Mexico<br />

3.1.3 USA<br />

3.2 The European housing market<br />

3.2.1 France<br />

3.2.2 Germany<br />

3.2.3 Italy<br />

3.2.4 The Netherlands<br />

3.2.5 Spain<br />

3.2.6 Sweden<br />

3.2.7 UK<br />

3.3 The Asia-Pacific housing market<br />

3.3.1 Australia<br />

3.3.2 China<br />

3.3.3 Hong Kong<br />

3.3.4 India<br />

3.3.5 Japan<br />

3.3.6 Korea<br />

3.3.7 New Zealand<br />

3.3.8 Russia<br />

3.3.9 Singapore<br />

4 Technology overview<br />

4.1 Cellular network technologies<br />

4.1.1 GSM/HSPA networks<br />

4.1.2 CDMA networks<br />

4.1.3 LTE networks<br />

4.2 Connectivity and interoperability<br />

standards<br />

4.2.1 Ethernet<br />

4.2.2 HomePlug<br />

4.2.3 HomePNA<br />

4.2.4 CEBus<br />

4.2.5 LonWorks<br />

4.2.6 X10<br />

4.2.7 INSTEON<br />

4.2.8 Universal Powerline Bus (UPB)<br />

4.2.9 Zigbee<br />

4.2.10 Z-Wave<br />

4.2.11 Wi-Fi<br />

4.2.12 Infrared<br />

4.3 Industry associations<br />

4.3.1 CABA<br />

4.3.2 CEA<br />

4.3.3 CEDIA<br />

5 Channels to market and<br />

business models<br />

5.1 Professional installation<br />

5.1.1 Dealer/installer/system integrators<br />

5.1.2 New home builders<br />

5.2 Retail<br />

5.2.1 Mainstream stores<br />

5.2.2 Online<br />

5.3 Service providers<br />

5.3.1 Broadband service providers<br />

5.3.2 Utility service providers<br />

5.4 Business models<br />

5.4.1 Selling prices<br />

5.4.2 Labour costs and margins<br />

6 Market forecasts<br />

6.1 Market analysis<br />

6.2 Cellular M2M connections and<br />

module shipments<br />

6.3 Smart homes and home automation<br />

forecasts – North America<br />

6.3.1 Custom and luxury home segment<br />

6.3.2 Mainstream single-family home<br />

segment<br />

6.3.3 MDU segment<br />

6.4 Smart homes and home automation<br />

forecasts – Europe<br />

6.4.1 Custom and luxury home segment<br />

6.4.2 Mainstream single-family home<br />

segment<br />

6.4.3 MDU segment<br />

6.5 Smart homes and home automation<br />

forecasts – Asia-Pacific<br />

6.5.1 Luxury home segment<br />

6.5.2 Mainstream home segment<br />

6.5.3 MDU segment<br />

7 Company profiles<br />

7.1 Multifunction and whole-home<br />

automation system vendors<br />

7.1.1 AMX<br />

7.1.2 Automated Living<br />

7.1.3 Colorado vNet<br />

7.1.4 Control4<br />

7.1.5 Cortexa<br />

7.1.6 Crestron Electronics<br />

7.1.7 Element Controls<br />

7.1.8 ELK Products<br />

7.1.9 Exceptional Innovation<br />

7.1.10 Global Caché<br />

7.1.11 4Home<br />

7.1.12 Home Automation Inc<br />

7.1.13 iControl Networks<br />

7.1.14 iTouch<br />

7.1.15 Lagotek<br />

7.1.16 Mi Casa Verde<br />

7.1.17 Perceptive Automation<br />

7.1.18 RTI<br />

7.1.19 Savant Systems<br />

7.1.20 Simply Automated<br />

7.1.21 2GIG Technologies<br />

7.1.22 Vantage Controls<br />

7.1.23 Vivint<br />

7.1.24 Xanboo<br />

7.1.25 X10<br />

7.2 Security and access control system<br />

vendors<br />

7.2.1 ABB<br />

7.2.2 ADT<br />

7.2.3 Alarm.com<br />

7.2.4 ASSA ABLOY<br />

7.2.5 FortrezZ<br />

7.2.6 Ingersoll Rand<br />

7.2.7 Schneider Electric<br />

7.2.8 System Sensor<br />

7.2.9 Wayne-Dalton<br />

7.3 Lighting and window control system<br />

vendors<br />

7.3.1 Am-Source International<br />

7.3.2 BTX Window Automation<br />

7.3.3 CentraLite<br />

7.3.4 Electronic Solutions<br />

7.3.5 Leviton<br />

7.3.6 Lutron<br />

7.3.7 Powerline Control Systems<br />

7.3.8 Skyco<br />

7.3.9 Somfy<br />

7.4 Audio-visual and entertainment<br />

system vendors<br />

7.4.1 Actiontec Electronics<br />

7.4.2 Atlona Technologies<br />

7.4.3 AVC Group<br />

7.4.4 BDI<br />

7.4.5 Channel Vision Technology<br />

7.4.6 Classé Audio<br />

7.4.7 Cinemar Solutions<br />

7.4.8 ConnectGear<br />

7.4.9 Draper<br />

7.4.10 D-Link<br />

7.4.11 Envive<br />

7.4.12 Fluid Digital<br />

7.4.13 Gefen<br />

7.4.14 Groov Audio<br />

7.4.15 Harman<br />

7.4.16 Kaleidescape<br />

7.4.17 Krell Industries<br />

7.4.18 Linn<br />

7.4.19 Marantz<br />

7.4.20 Naim<br />

7.4.21 Runco<br />

7.4.22 Russound<br />

7.4.23 Sonos<br />

7.4.24 SpeakerCraft<br />

7.4.25 Universal Electronics<br />

7.4.26 Universal Remotes<br />

7.5 Energy management and climate<br />

control system vendors<br />

7.5.1 AlertMe<br />

7.5.2 Blue Line Innovations<br />

7.5.3 Cisco<br />

7.5.4 Grid Net<br />

7.5.5 Intermatic<br />

7.5.6 Intwine Energy<br />

7.5.7 Invensys<br />

7.5.8 Portus<br />

7.5.9 RCS Technology<br />

7.5.10 Simple Control<br />

7.5.11 Tendril<br />

7.5.12 Universal Devices<br />

7.5.13 Web Mountain<br />

Glossary


M2M Research Series<br />

Car Telematics<br />

and Wireless M2M<br />

Car Telematics and Wireless M2M is the fifth consecutive<br />

report analysing the latest developments on the European<br />

market.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with 150 pages of unique business intelligence including 5-year<br />

industry forecasts and expert commentary on which to base your<br />

business decisions.<br />

This report will allow you to:<br />

Understand the dynamics of the European car telematics<br />

industry.<br />

Learn about the telematics strategies of the technology<br />

leading car manufacturers.<br />

Evaluate the likelihood for eCall to become operational in<br />

2014-2015.<br />

Identify the leading providers of aftermarket vehicle tracking<br />

solutions and connected PNDs.<br />

Realise the potential importance of motor insurance<br />

providers in the telematics value chain.<br />

Profit from valuable insights about the most successful<br />

business and technology propositions on the market.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series<br />

What are the key business opportunities in the emerging European wireless M2M<br />

market? <strong>Berg</strong> <strong>Insight</strong>’s M2M Research Series is a unique series of market reports<br />

published on a quarterly basis. Each title offers detailed analysis of a specific vertical<br />

application area such as smart metering, fleet management or vehicle telematics.<br />

Once per year we also publish summaries of our research with detailed forecasts for<br />

the Global and European wireless M2M markets, respectively.<br />

www.berginsight.com


M2M Research Series<br />

Where is the European<br />

telematics market headed?<br />

Telematics is a broad term that may be applied to a wide range of<br />

automotive IT solutions. <strong>Berg</strong> <strong>Insight</strong>’s definition of a car telematics<br />

solution in this report is an automatic system designed for passenger<br />

cars which incorporate some form of wireless communication<br />

via a wide area network. The history of car telematics can be traced<br />

back to the first stolen vehicle tracking systems based on RF communication<br />

using unlicensed frequency bands, which appeared<br />

on the market in the 1980s. Subsequently mobile networks have<br />

enabled true online connectivity with two-way communication at the<br />

same time as GPS technology has been commoditised to the extent<br />

that high-accuracy satellite positioning can be integrated into virtually<br />

any device. Today a standard telematics unit features GPRS,<br />

GPS and frequently also some kind of interface to the electronics<br />

systems of the vehicle. This kind of device may be used as a platform<br />

for one or several types of applications.<br />

Several categories of car telematics applications are today offered on<br />

a commercial basis. These include eCall and driver assistance, SVR,<br />

connected navigation, motor insurance telematics, road charging,<br />

leasing and rental fleet management and vehicle diagnostics. eCall<br />

and driver assistance applications deliver value in the form of improved<br />

safety and better convenience when travelling. SVR facilitates<br />

recovery of the car in case of theft and frequently entitles the owner<br />

to insurance benefits. Connected navigation enables access to up-todate<br />

map data and other online services. Motor insurance telematics<br />

combines SVR with innovative business models such as PAYD (Pay-<br />

As-You-Drive). Road charging is gaining momentum as a new method<br />

for financing privately operated motorways, raising tax revenues and<br />

tackling congestion. Leasing and rental fleet management gives owners<br />

better control over hired-out vehicles and enables new forms of<br />

contracts. Vehicle diagnostics allows car manufacturers, dealers and<br />

workshops to improve their service offering to car owners.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that total shipments of car telematics systems in<br />

EU27+2 reached 0.85 million units in 2009. Growing at a compound<br />

annual growth rate of 35.0 percent, the shipments are expected to<br />

reach 1.6 million units in 2011. During the same period the number of<br />

active telematics service subscribers is forecasted to grow at a compound<br />

annual growth rate of 23.1 percent from 3.5 million subscribers<br />

in 2009 to 5.4 million in 2011. From 2012, <strong>Berg</strong> <strong>Insight</strong> expects a sharp<br />

Million units<br />

20<br />

15<br />

10<br />

5<br />

0<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

Shipments of car telematics units (Europe 2009–2015)<br />

Year<br />

increase of OEM systems in preparation for the full scale introduction<br />

of eCall. By 2015 the pan-European safety system is anticipated<br />

to generate shipments of about 15 million OEM telematics units and<br />

push the total number of active subscribers to 28.7 million in 2015.<br />

Already in 2012 OEM systems are forecasted to catch up with aftermarket<br />

systems in terms of shipments and active subscribers. eCall<br />

and other OEM initiatives are also expected to curb the growth for<br />

aftermarket systems.<br />

Until now OEM telematics propositions have so far largely failed to<br />

make a significant impression on the European market. Availability is<br />

still restricted to a handful of brands and models on selected markets.<br />

PSA and BMW are still the most active players in the market, bundling<br />

telematics services with navigation, audio and Bluetooth handsfree<br />

products. Recently they have upgraded and extended their offerings<br />

to cover most of Western Europe. PSA was also the first car manufacturer<br />

to have introduced an eCall device as a standard feature on selected<br />

models from 2010. Fiat, Volvo Cars and premium brands such<br />

as Porsche, Jaguar and Land Rover have also been active on the market<br />

for some time. In late 2011, <strong>Berg</strong> <strong>Insight</strong> anticipates that additional<br />

brands will launch OEM telematics solutions on the European market<br />

in response to the eCall intiative within the EU. The European Commission<br />

has a strong commitment to introducing eCall as a standard<br />

feature in all new cars and recently set 2014 as the new target date for<br />

realising this vision – through regulations if nessecary.<br />

The aftermarket telematics market is now recovering from the economic<br />

crisis. Particularly SVR product sales are linked to the demand<br />

for exclusive cars and were affected by lower car sales in this segment<br />

during 2009. The adoption of motor insurance telematics has slowed<br />

down somewhat as the initial success in Italy proved difficult to transfer<br />

to additional markets. Insurance providers are however now established<br />

as an important distribution channel for aftermarket telematics<br />

providers in a number of countries and Octo Telematics, which first<br />

developed it, is firmly established as the leading supplier.<br />

This report answers the following questions:<br />

What are the dynamics behind developments in the<br />

European car telematics industry?<br />

What is the current status of the eCall initiative?<br />

What are the latest developments on innovative road<br />

charging schemes in Europe?<br />

Why is motor insurance telematics successful in Italy?<br />

What are the main trends on the connected navigation<br />

market?<br />

How is RF tracking technology standing up against<br />

GSM/GPS?<br />

Who are the leading providers of aftermarket vehicle<br />

tracking solutions?<br />

How is the OEM telematics value chain evolving?<br />

What are the current car telematics propositions from<br />

Europe’s main car brands?


Table of Contents<br />

1 Passenger cars in Europe<br />

1.1 Introduction<br />

1.2 Car manufacturers<br />

1.3 Leasing and rental companies<br />

1.4 Motor insurance<br />

1.5 Emergency services and assistance<br />

providers<br />

1.5.1 PSAP and SOC organisations<br />

1.5.2 Assistance providers<br />

1.5.3 Automobile clubs<br />

1.6 Passenger cars and the environment<br />

1.6.1 Electric vehicles<br />

1.6.2 Hybrid electric vehicles<br />

2 Car telematics solutions<br />

2.1 Car telematics infrastructure<br />

2.1.1 Vehicle segment<br />

2.1.2 Tracking segment<br />

2.1.3 Network segment<br />

2.1.4 Service segment<br />

2.2 Car telematics applications<br />

2.2.1 eCall and roadside assistance<br />

2.2.2 Stolen vehicle recovery<br />

2.2.3 Motor insurance telematics<br />

2.2.4 Leasing and rental fleet management<br />

2.2.5 Vehicle diagnostics<br />

2.2.6 Electronic toll collection and congestion<br />

charging<br />

2.2.7 Connected navigation<br />

2.3 Electric vehicles versus conventional<br />

vehicles<br />

2.4 Aftermarket solutions versus OEM<br />

solutions<br />

3 Market forecasts and trends<br />

3.1 Car telematics market forecast<br />

3.2 Application trends<br />

3.2.1 eCall: The EC sets 2014 as new target for<br />

pan-European introduction<br />

3.2.2 SVR: Declining price advantage for RF<br />

tracking against GSM/GPS<br />

3.2.3 Motor insurance telematics: Spreading<br />

across Europe<br />

3.2.4 Connected navigation: Low-cost factory-fit<br />

OEM solutions<br />

3.2.5 Road charging: Privacy concerns may block<br />

online satellite tracking systems<br />

3.2.6 CRM: Telematics will be used to drive a<br />

connected CRM strategy for OEMs<br />

3.3 Value chain analysis<br />

3.3.1 Aftermarket solution providers<br />

3.3.2 OEM solution providers<br />

3.3.3 Car brands and dealers<br />

3.3.4 Telecom industry players<br />

3.3.5 Continued consolidation trends in the<br />

aftermath of the financial crisis<br />

3.4 Future industry trends<br />

4 Aftermarket vehicle<br />

tracking solutions<br />

4.1 Value chain overview<br />

4.2 Aftermarket vehicle tracking solution<br />

providers<br />

4.2.1 AutoGuard<br />

4.2.2 Autotxt<br />

4.2.3 Cesar Satellite<br />

4.2.4 Cobra Automotive Technologies<br />

4.2.5 Detector<br />

4.2.6 MetaSystem<br />

4.2.7 Pointer Telocation<br />

4.2.8 SECAR<br />

4.2.9 TRACKER Network<br />

4.2.10 Traqueur<br />

4.2.11 Trafficmaster<br />

4.2.12 Viasat Group<br />

4.2.13 Other vehicle tracking vendors<br />

4.3 Insurance industry telematics<br />

initiatives<br />

4.3.1 Italy: Motor insurance providers adopt<br />

telematics to combat theft and fraud<br />

4.3.2 Spain: MAPFRE offers YCar targeting 18–30<br />

year olds<br />

4.3.3 United Kingdom: Coverbox PAYD has fitted<br />

7,500 cars after one year<br />

4.3.4 United Kingdom: Insure the Box new entrant<br />

with PAYD scheme<br />

4.3.5 United Kingdom: Thatcham CAT 5 and TQA<br />

vehicle security standards<br />

5 OEM telematics solutions<br />

5.1 Value chain overview<br />

5.2 Automotive suppliers<br />

5.2.1 Actia<br />

5.2.2 Continental Automotive Group<br />

5.2.3 Delphi Automotive<br />

5.2.4 Denso<br />

5.2.5 Magneti Marelli<br />

5.3 Telematics service providers<br />

5.3.1 Airbiquity<br />

5.3.2 Altea<br />

5.3.3 ATX Group<br />

5.3.4 Connexis<br />

5.3.5 Eurowatch<br />

5.3.6 Hughes Telematics<br />

5.3.7 IMA<br />

5.3.8 Octo Telematics<br />

5.3.9 Tema.Mobility<br />

5.3.10 WirelessCar<br />

5.4 OEM telematics propositions<br />

5.4.1 BMW<br />

5.4.2 Fiat Group<br />

5.4.3 Ford<br />

5.4.4 Jaguar and Land Rover<br />

5.4.5 Mercedes-Benz<br />

5.4.6 Porsche<br />

5.4.7 PSA Peugeot Citroën<br />

5.4.8 Volvo Car<br />

6 Connected navigation devices<br />

6.1 Introduction<br />

6.2 In-dash connected navigation solution<br />

providers<br />

6.2.1 TomTom and Renault<br />

6.2.2 TomTom and Fiat<br />

6.2.3 TomTom collaborations with Sanyo and<br />

Sony<br />

6.2.4 Aisin AW and Toyota<br />

6.2.5 Masternaut<br />

6.2.6 Trafficmaster<br />

6.3 Connected PND solution providers<br />

6.3.1 TomTom<br />

6.3.2 Garmin<br />

6.3.3 MiTAC International<br />

6.3.4 Navigon<br />

6.3.5 Medion<br />

6.3.6 MyGuide Americas<br />

6.3.7 Coyote System<br />

6.3.8 Mobile Devices<br />

6.4 Mobile navigation services<br />

7 The European eCall initiative<br />

7.1 Regulatory process<br />

7.1.1 Activities of DG eCall and other working<br />

groups<br />

7.1.2 Actions by the EC and EU Member States<br />

7.1.3 Stakeholder positions on eCall<br />

7.2 eCall functional specifications and<br />

standardisation<br />

7.2.1 IVS functional specifications<br />

7.2.2 MSD transport mechanism<br />

7.2.3 PSAP requirements<br />

7.3 Case studies<br />

7.3.1 Germany: ADAC performs international<br />

feasibility trial of eCall<br />

7.3.2 United Kingdom: National PSAPs support<br />

private eCall services<br />

7.3.3 United States: GM OnStar provides<br />

emergency call service to 6 million cars<br />

8 Road charging for passenger cars<br />

8.1 Overview of ETC technologies<br />

8.1.1 Automatic Number Plate Recognition<br />

(ANPR)<br />

8.1.2 Dedicated Short Range Communication<br />

(DSRC)<br />

8.1.3 GPRS/GPS<br />

8.2 ETC charging concepts<br />

8.3 Interoperability of ETC systems<br />

8.4 Future developments and trends<br />

8.5 Case studies<br />

8.5.1 The national truck tolling scheme in<br />

Slovakia launched in January<br />

8.5.2 Toll Collect in Germany generated revenues<br />

of € 4.4 billion in 2009<br />

8.5.3 Road pricing in Stockholm successful in<br />

cutting congestion<br />

8.5.4 Planning for a nationwide road charging<br />

rollout in the Netherlands<br />

8.5.5 The London congestion charge generates<br />

yearly revenues of € 367 million<br />

8.6 Road charging solution providers<br />

8.6.1 Autostrade<br />

8.6.2 EFKON<br />

8.6.3 GMV<br />

8.6.4 Kapsch TrafficCom<br />

8.6.5 Q-Free<br />

8.6.6 Sanef Group<br />

8.6.7 Satellic Traffic Management<br />

8.6.8 Skymeter<br />

8.6.9 Thales<br />

Glossary


LBS Research Series<br />

Location-Based<br />

Advertising and Marketing<br />

Location-Based Advertising and Marketing is a<br />

comprehensive report from <strong>Berg</strong> <strong>Insight</strong> analysing<br />

the latest developments on the location-targeted<br />

advertising market worldwide.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong><br />

provides you with 170 pages of unique business<br />

intelligence including 5-year industry forecasts<br />

and expert commentary on which to base your<br />

business decisions.<br />

This report will allow you to:<br />

Identify tomorrow’s most profitable LBA<br />

opportunities in the mobile space.<br />

Understand the fundamentals of the ad-based<br />

mobile media revenue models.<br />

Recognise the key enablers of growth in the LBA<br />

market.<br />

Comprehend the relative importance of digital<br />

channels compared to other advertising media.<br />

Learn about the experiences of LBA campaigns<br />

by top global brands.<br />

Profit from valuable insights about LBA business<br />

models.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s LBS Research Series<br />

What are the real business opportunities for LBS on the global market? <strong>Berg</strong><br />

<strong>Insight</strong>’s LBS Research Series is a unique series of market reports published on<br />

a quarterly basis. Each title offers detailed analysis of the most interesting LBS<br />

topics such as handset-based satellite positioning technology, mobile personal<br />

navigation services and location-enabled content services. Once per year we also<br />

publish a summary of our research with detailed forecasts for the major regions.<br />

www.berginsight.com


LBS Research Series<br />

Location-targeting releases the full<br />

potential of the mobile channel<br />

The mobile channel is getting established as an integral part of the<br />

marketing media mix, a process which is eased by the booming smartphone<br />

adoption and increasing mobile media consumption. One of<br />

the key developments in mobile advertising is the increasing integration<br />

of location-sensitivity, which releases the full potential of the mobile<br />

channel. A notable divide can be made between static and real-time<br />

location-based advertising (LBA). Targeting by static variables involves<br />

using information which is part of specific user profiles such as place of<br />

residence and work. Real-time location targeting instead uses location<br />

information which is gathered when an ad is delivered to a mobile user.<br />

Such location-based advertising programs and campaigns leverage the<br />

same type of technologies to determine user location as other locationbased<br />

services (LBS). Common methods include GPS, Cell-ID and Wi-<br />

Fi positioning which are all based on real-time information.<br />

Targeting by location in combination with other contextual and behavioural<br />

segmentation greatly enhances the relevance of mobile advertising.<br />

It has been demonstrated that location-targeted ads generate<br />

considerably higher return than conventional mobile advertising, and<br />

the associated eCPM levels are several times higher. <strong>Berg</strong> <strong>Insight</strong> estimates<br />

that the total global value of the real-time mobile LBA market<br />

was € 192 million in 2011, representing 5.0 percent of the total mobile<br />

ad spend. Growing at a compound annual growth rate of 90.9 percent,<br />

the real-time LBA market is forecasted to be worth € 4.9 billion in 2016,<br />

corresponding to 28.3 percent of all mobile advertising and marketing.<br />

This means that location-based advertising and marketing will represent<br />

more than 4 percent of digital advertising, or 1 percent of the total global<br />

ad spend for all media. Asia-Pacific is estimated to be the largest LBA<br />

market in 2016, followed by Europe and North America.<br />

Key drivers for LBA include the growing attach rates of location technologies<br />

in handsets, as well as the increasing consumer acceptance<br />

of LBS in general. Local advertising is further a major market, and LBA<br />

opens up the mobile channel for new advertisers such as local merchants.<br />

The fact that location targeting has higher performance has<br />

moreover induced premium rates for publishers and developers. The<br />

main barriers to adoption are related to the inherently limited reach of<br />

LBA which acts as a mental hurdle for advertisers. Education of advertisers<br />

and new methods for campaign performance evaluation are thus<br />

called for. Privacy issues can further not be ignored, but can be<br />

€ million<br />

5000<br />

4000<br />

3000<br />

2000<br />

1000<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

LBA revenue forecast, € million (Worldwide 2010–2016)<br />

2016<br />

Year<br />

beneficially handled by privacy control options beyond simple opt-in<br />

mechanisms. The demand for hyper-local targeting of ads is so far limited<br />

among advertisers, but is bound to increase given the considerable<br />

impact such campaigns generate.<br />

The LBA value chain is still forming and there are a large number of<br />

players involved in the ecosystem. The industry is fragmented and has<br />

not yet reached maturity. Many different companies are involved, ranging<br />

from LBA specialists such as Placecast, xAd and LEMON Mobile,<br />

to operators including SFR, AT&T and O 2, and LBS players such as<br />

Telmap, TeleNav and Waze. There is furthermore an abundance of location-aware<br />

applications and media which serve geo-targeted ads, with<br />

examples such as WHERE, Loopt and Shopkick. Included in the marketplace<br />

are moreover coupons and deals providers including Yowza!!,<br />

GeoAd and COUPIES, search solutions such as Poynt and Qype, and<br />

proximity marketing providers like Qwikker, Proximus Mobility and<br />

Scanbuy. A number of traditional mobile advertising players are also<br />

active in the LBA space, for example Millennial Media, Madvertise and<br />

Nexage, as well as major digital and telecom players such as Google,<br />

Apple and Nokia.<br />

There are a number of key takeaways from the latest developments in<br />

LBA. It has been established that location-targeting improves the effectiveness<br />

of mobile marketing campaigns, and greater shares of ad<br />

budgets are devoted to LBA among marketers. It is however crucial to<br />

ensure sound opt-in procedures and individual privacy measures for<br />

consumers. Location is further only one of many components in successful<br />

targeting, and marketers must also strive to leverage other contextual<br />

and behavioural information. High-precision real-time geotargeting<br />

is today sparsely used, and rightly so as most campaigns do not<br />

require targeting with an accuracy of a few meters. Hyper-local campaigns<br />

are nevertheless becoming more common. Current important<br />

high-volume LBA formats include mobile search and SMS campaigns.<br />

<strong>Berg</strong> <strong>Insight</strong> however anticipates that geotargeting gradually will become<br />

ubiquitous and available across the entire mobile channel.<br />

This report answers the following questions:<br />

In what ways can location technology improve the relevancy of<br />

mobile advertising?<br />

What are the experiences from mobile LBA campaigns so far?<br />

How should mobile LBA be integrated in the marketing media<br />

mix?<br />

Which categories of companies can leverage mobile locationbased<br />

advertising?<br />

Which are the LBA specialists that stand out of the crowd?<br />

How are mobile operators such as AT&T, Telefónica and SFR<br />

approaching LBA?<br />

How are traditional mobile advertising players and major digital<br />

and telecom players positioning themselves in this market?<br />

How well suited for LBA are different existing and future mobile<br />

media channels?<br />

Which are the main drivers and barriers affecting the mobile<br />

LBA market?


Table of Contents<br />

1 Advertising and the mobile<br />

channel<br />

1.1 Advertising and digital media<br />

1.1.1 The marketing and advertising industry<br />

1.1.2 The Internet media channel<br />

1.1.3 The mobile media channel<br />

1.2 Mobile advertising and marketing<br />

1.2.1 The mobile handset as an advertising<br />

platform<br />

1.2.2 Advertising on the mobile handset<br />

1.2.3 The mobile advertising ecosystem<br />

1.3 Mobile media channels and formats<br />

1.3.1 Messaging<br />

1.3.2 Mobile web advertisement<br />

1.3.3 Mobile applications<br />

1.4 Mobile marketing industry overview<br />

1.4.1 Factors influencing the potential<br />

market value of mobile advertising<br />

1.4.2 Current state and future trends<br />

2 Mobile location technologies<br />

and services<br />

2.1 Mobile network location<br />

architectures and platforms<br />

2.1.1 Location architecture for GSM/UMTS<br />

networks<br />

2.1.2 Location architecture for LTE networks<br />

2.1.3 Control Plane and User Plane location<br />

platforms<br />

2.1.4 Probe-based location platforms<br />

2.2 Mobile location technologies and<br />

methods<br />

2.2.1 Cell-ID<br />

2.2.2 Enhanced Cell-ID<br />

2.2.3 RF Pattern Matching<br />

2.2.4 E-OTD, OTDOA and U-TDOA<br />

2.2.5 GNSS: GPS, GLONASS, Galileo and<br />

Compass<br />

2.2.6 Bluetooth, NFC and Wi-Fi positioning<br />

2.2.7 Hybrid, mixed mode and indoor<br />

location technologies<br />

2.2.8 Theoretical limitations of positioning<br />

technologies<br />

2.3 Overview of mobile location-based<br />

services<br />

2.3.1 Mapping and navigation<br />

2.3.2 Local search and information<br />

2.3.3 Social networking and entertainment<br />

2.3.4 Recreation and fitness<br />

2.3.5 Tracking services<br />

3 Mobile location-based<br />

advertising and marketing<br />

3.1 Definitions and variants of LBA<br />

3.1.1 Static versus real-time locationtargeting<br />

3.1.2 Push and pull LBA<br />

3.1.3 LBA formats<br />

3.2 Market receptiveness<br />

3.2.1 Advertiser adoption<br />

3.2.2 Outcomes of different LBA strategies<br />

3.2.3 Consumer attitudes<br />

3.2.4 Privacy concerns<br />

3.3 Case studies<br />

3.3.1 The North Face drives foot traffic with<br />

LBA program delivered by Placecast<br />

3.3.2 Operator Zain Kuwait enters the LBA<br />

space with AdZone platform<br />

3.3.3 SPH a pioneer in location-based<br />

advertising in Singapore<br />

3.3.4 LBA solution from NAVTEQ delivers<br />

impressive results for McDonald’s<br />

3.3.5 VW engage in Wi-Fi-based marketing<br />

through JiWire<br />

3.3.6 Boloco taps SCVNGR to encourage<br />

repeat visits<br />

3.3.7 Expedia creates award winning<br />

location-based mobile website using<br />

HTML5<br />

3.3.8 McDonald’s engages customers in<br />

billboard games<br />

3.3.9 MINI’s location-based reality game<br />

attracts thousands of players<br />

3.3.10 Rovio introduces a location-dimension<br />

to the Angry Birds game<br />

3.3.11 QderoPateo and Kommunity Kiosk<br />

enable Bluetooth marketing at hotels<br />

3.3.12 Movie theatre chain partners with<br />

ChaCha to promote Twilight premiere<br />

4 Market forecasts and trends<br />

4.1 LBA industry analysis<br />

4.1.1 Classification of LBA offerings<br />

4.1.2 LBA specialists<br />

4.1.3 Mobile operators<br />

4.1.4 LBS and navigation providers<br />

4.1.5 Location-aware applications and<br />

media<br />

4.1.6 Mobile coupons and deals providers<br />

4.1.7 Mobile search providers<br />

4.1.8 Proximity marketing providers<br />

4.1.9 Traditional mobile advertising players<br />

4.1.10 Major digital and telecom players<br />

4.1.11 Mergers and acquisitions<br />

4.2 LBA landscape trends<br />

4.2.1 Drivers for success<br />

4.2.2 Barriers to adoption<br />

4.2.3 Overcoming the barriers<br />

4.3 Market forecasts<br />

4.3.1 Total, digital and mobile advertising<br />

market value forecasts<br />

4.3.2 LBA market value forecast<br />

4.4 Final conclusions<br />

4.4.1 Location filtering improves the<br />

effectiveness of mobile marketing<br />

campaigns<br />

4.4.2 Greater shares of ad budgets devoted<br />

to LBA among marketers<br />

4.4.3 Location is but one of many valuable<br />

opt-in variables<br />

4.4.4 High-precision real-time geotargeting<br />

is sparsely used<br />

4.4.5 Mobile search and SMS campaigns<br />

are important high-volume LBA<br />

formats<br />

4.4.6 Location-targeting will eventually<br />

become ubiquitous<br />

5 Company profiles and<br />

strategies<br />

5.1 LBA specialists<br />

5.1.1 AdMoove<br />

5.1.2 Chalkboard<br />

5.1.3 CityGrid Media<br />

5.1.4 LEMON Mobile<br />

5.1.5 Placecast<br />

5.1.6 xAd<br />

5.1.7 Xtify<br />

5.1.8 YOOSE<br />

5.2 Mobile operators<br />

5.2.1 AT&T Mobility<br />

5.2.2 Orange Group<br />

5.2.3 SFR<br />

5.2.4 Telefónica Group<br />

5.3 LBS and navigation providers<br />

5.3.1 Appello Systems<br />

5.3.2 Intersec<br />

5.3.3 TeleNav<br />

5.3.4 Telmap<br />

5.3.5 TomTom<br />

5.3.6 Waze Mobile<br />

5.4 Location-aware applications and<br />

media<br />

5.4.1 Foursquare<br />

5.4.2 Loopt<br />

5.4.3 Shopkick<br />

5.4.4 WHERE<br />

5.5 Mobile coupons and deals providers<br />

5.5.1 COUPIES<br />

5.5.2 GeoAd<br />

5.5.3 Groupon<br />

5.5.4 ThinkNear<br />

5.5.5 Yowza!!<br />

5.6 Mobile search providers<br />

5.6.1 Mobile Commerce<br />

5.6.2 Poynt<br />

5.6.3 Qype<br />

5.6.4 Yell Group<br />

5.7 Proximity marketing providers<br />

5.7.1 BLIP Systems<br />

5.7.2 Proximus Mobility<br />

5.7.3 Qwikker<br />

5.7.4 Scanbuy<br />

5.8 Traditional mobile advertising<br />

players<br />

5.8.1 InMobi<br />

5.8.2 Jumptap<br />

5.8.3 Madvertise<br />

5.8.4 Millennial Media<br />

5.8.5 Nexage<br />

5.8.6 Sofialys<br />

5.9 Major digital and telecom players<br />

5.9.1 Apple<br />

5.9.2 Facebook<br />

5.9.3 Google<br />

5.9.4 Microsoft<br />

5.9.5 Nokia<br />

5.9.6 Yahoo!<br />

Glossary


LBS Research Series<br />

Mobile Navigation<br />

Services and Devices<br />

Mobile Navigation Services and Devices is the fifth<br />

consecutive report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest<br />

developments on the global PND and mobile turn-by-turn<br />

navigation market.<br />

This report in the LBS Research Series provides you with<br />

160 pages of unique business intelligence including 5-year<br />

industry forecasts and expert commentary on which to base<br />

your business decisions.<br />

This report will allow you to:<br />

Profit from 30 new executive interviews with market leading<br />

companies.<br />

Understand the dynamics of the navigation markets in<br />

Europe, North America and ROW.<br />

Benefit from expert market analysis including detailed<br />

regional forecasts.<br />

Learn about the latest mobile navigation propositions from<br />

device vendors and service providers.<br />

Comprehend how navigation applications can integrate with<br />

other location-based services to improve the user experience.<br />

Evaluate the impact of free navigation applications and<br />

evolving new business models.<br />

Identify new business opportunities in connected services<br />

and real-time traffic information.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s LBS Research Series<br />

What are the real business opportunities for LBS on the global market? <strong>Berg</strong> <strong>Insight</strong>’s<br />

LBS Research Series is a unique series of market reports published on a quarterly<br />

basis. Each title offers detailed analysis of the most interesting LBS topics such as<br />

handset-based satellite positioning technology, mobile personal navigation services<br />

and location-enabled content services. Once per year we also publish a summary of<br />

our research with detailed forecasts for the major regions.<br />

www.berginsight.com


LBS Research Series<br />

What are the latest developments<br />

on the personal navigation market?<br />

Navigation systems and services for car and pedestrian navigation can<br />

be divided into multiple categories. Car manufacturers offer factory<br />

installed in-dash navigation systems as standard or optional equipment<br />

on a majority of their models sold in developed markets. Drivers that<br />

want to add navigation to their existing vehicle can choose among a<br />

number of aftermarket solutions. Examples include in-dash navigation<br />

systems, Personal Navigation Devices (PNDs) and navigation apps<br />

for mobile phones. New device categories such as Internet tablets are<br />

also being equipped with GPS and navigation software. At the end<br />

of 2011, there were 340 million navigation systems in use worldwide,<br />

including an estimated 60 million factory installed and aftermarket indash<br />

navigation systems, about 150 million PNDs and an estimated<br />

130 million navigation-enabled mobile phones.<br />

Even though the share of new cars fitted with factory installed in-dash<br />

navigation systems will grow fast as prices decline, the actual penetration<br />

of in-dash navigation systems will grow slowly. The average age of<br />

vehicles in North America and Europe has grown to about 9 years and is<br />

even higher in most other markets. Aftermarket navigation solutions will<br />

thus account for a majority of navigation systems sold in the foreseeable<br />

future. Since the different solutions are tailored for slightly different usecases,<br />

multiple navigation-capable device solutions can be expected to<br />

co-exist in the future. Many consumers are also likely to use more than<br />

one category of navigation capable device.<br />

In many developed markets such as Europe and North America where<br />

the PND penetration is already high, the PND device category is facing<br />

increasing competition from handset-based navigation services and<br />

low cost in-dash navigation systems. Worldwide shipments of PNDs<br />

fell to about 33 million units in 2011, down from nearly 38 million in<br />

2010. <strong>Berg</strong> <strong>Insight</strong> believes that PND shipments in Europe and North<br />

America have peaked and will gradually decline to about 7 and 6 million<br />

units per annum respectively in 2016. New markets in other parts of the<br />

world will only partly compensate for the decline in the mature markets.<br />

Worldwide shipments of PNDs are forecasted to gradually decline to 23<br />

million units in 2016.<br />

Increasing competition has already forced several vendors to exit the<br />

PND segment – either in the most competitive markets or altogether.<br />

There is also a consolidation trend among the remaining PND vendors.<br />

MiTAC has acquired the PND operations of Navman and the assets<br />

Million<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

2010<br />

Active navigation app users<br />

Installed base of PNDs<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Installed base of PNDs and active mobile turn-by-turn navigation users<br />

(World 2010–2016)<br />

Year<br />

of the consumer product division of Magellan Navigation. Garmin<br />

completed the acquisition of Navigon in July 2011. United Navigation,<br />

which began operations in early 2010, has licensed the rights to use<br />

the Falk and Becker brands for navigation solutions. The PND market<br />

is now dominated by the three vendors Garmin, TomTom and MiTAC<br />

that together maintain a 75 percent market share. These companies<br />

have highly integrated operations ranging from hardware and software<br />

development to distribution. Moreover, these companies are now<br />

increasingly focusing on in-dash navigation systems.<br />

The adoption of handset-based navigation apps and services is<br />

increasing along with the popularity of smartphones. The global active<br />

installed base of smartphones surpassed 700 million units at the<br />

2011, which is approximately 15 percent of all mobile phones in use.<br />

<strong>Berg</strong> <strong>Insight</strong> forecasts that smartphone shipments will grow from an<br />

estimated 450 million units in 2011 to 1,300 million units in 2016. In<br />

the future, virtually all GPS-enabled handsets can be expected to have<br />

mapping and navigation software as part of the standard feature set.<br />

Today, handset navigation solutions are primarily available as on-board<br />

apps with map data stored in the memory of the handset and off-board<br />

services that rely on maps stored on a server. Over time, many solutions<br />

will converge into hybrid services that store frequently used maps in the<br />

internal memory and leverage wireless connectivity to access dynamic<br />

content. The main distribution channels for handset navigation apps<br />

include mobile network operators, handset vendors and on-device<br />

application stores. Free turn-by-turn navigation services have been<br />

available for several years from niche players, but the launch of Google<br />

Maps Navigation for Android handsets in late 2009 and Nokia Maps<br />

with free navigation in early 2010 started a major transformation of the<br />

handset navigation market in both Europe and North America. Whitelabel<br />

navigation developers are now working with mobile operators to<br />

create unique localised offerings and service bundles. Increasingly,<br />

navigation service providers are focusing on the freemium business<br />

model where the core turn-by-turn navigation service is free and users<br />

have the option to purchase additional content and features.<br />

This report answers the following questions:<br />

How are business models for PNDs and mobile navigation<br />

services evolving?<br />

What impact has free navigation services had on the<br />

personal navigation market?<br />

How are device manufacturers positioning themselves<br />

on the growing mobile navigation market?<br />

Will turn-by-turn navigation services for mobile phones<br />

replace portable navigation devices?<br />

Which are the leading developers of turn-by-turn navigation<br />

applications for mobile phones?<br />

Which mobile operators have introduced mobile turnby-turn<br />

navigation services?<br />

What will be the winning formula for connected PNDs<br />

and associated services?<br />

How will mobile navigation services evolve in the future?


Table of Contents<br />

1 Personal navigation solutions<br />

1.1 Vehicle fleets and navigation system<br />

penetration<br />

1.1.1 The European passenger car market<br />

1.1.2 The North American passenger car and<br />

light truck market<br />

1.2 Overview of personal navigation<br />

systems and services<br />

1.2.1 Factory installed in-dash navigation and<br />

telematics solutions<br />

1.2.2 Aftermarket in-dash navigation systems<br />

1.2.3 Personal Navigation Devices<br />

1.2.4 Smartphones and mobile phones<br />

1.2.5 Internet tablets and media players<br />

1.3 PND categories and segments<br />

1.3.1 Standalone car navigation PNDs<br />

1.3.2 Embedded PNDs<br />

1.3.3 Multimode and rugged PNDs<br />

1.3.4 Truck PNDs<br />

1.4 Handset-based navigation services<br />

1.4.1 On-board navigation apps<br />

1.4.2 Off-board navigation services<br />

1.5 Navigation service distribution<br />

channels and business models<br />

1.5.1 Mobile network operators<br />

1.5.2 Handset vendors<br />

1.5.3 On-device app stores<br />

1.5.4 Active handset navigation users<br />

2 Map data and content<br />

providers<br />

2.1 Digital map data and image suppliers<br />

2.1.1 NAVTEQ<br />

2.1.2 TomTom Maps<br />

2.1.3 AND<br />

2.1.4 AutoNavi<br />

2.1.5 Blom<br />

2.1.6 CE Info Systems<br />

2.1.7 DigitalGloble<br />

2.1.8 GeoEye<br />

2.1.9 Intermap Technologies<br />

2.1.10 OpenStreetMap<br />

2.1.11 ZENRIN<br />

2.2 Traffic information services<br />

2.2.1 Traffic information systems<br />

2.2.2 RDS-TMC services<br />

2.2.3 The VICS traffic information system<br />

2.2.4 The TPEG standard<br />

2.2.5 AirSage<br />

2.2.6 Clear Channel Radio’s Total Traffic<br />

Network<br />

2.2.7 Decell<br />

2.2.8 INRIX<br />

2.2.9 Mediamobile<br />

2.2.10 TrafficCast<br />

2.2.11 Trafficmaster<br />

2.3 Speed camera warning devices and<br />

database providers<br />

2.3.1 Coyote Systems<br />

2.3.2 Cyclops<br />

2.3.3 FoxyTag<br />

2.3.4 Road Angel<br />

2.3.5 RoadPilot<br />

2.3.6 Wikango<br />

2.4 Travel guide, POI data and weather<br />

information providers<br />

2.4.1 CustomWeather<br />

2.4.2 Foreca<br />

2.4.3 Fodor’s Travel<br />

2.4.4 Langenscheidt<br />

2.4.5 Mairdumont<br />

2.4.6 NavX<br />

2.4.7 ViaMichelin<br />

2.4.8 Wcities<br />

2.5 Directory publishers<br />

2.5.1 PagesJaunes and Mappy<br />

2.5.2 Truvo<br />

2.5.3 Yell Group<br />

3 Navigation software developers<br />

3.1 Technology overview<br />

3.1.1 On-board, off-board and hybrid<br />

navigation software<br />

3.1.2 Evolution of navigation software features<br />

3.2 Vendor market shares<br />

3.2.1 Handset navigation app market shares<br />

in Europe<br />

3.2.2 Handset navigation app market shares<br />

in North America<br />

3.3 Company profiles and strategies<br />

3.3.1 ALK Technologies<br />

3.3.2 Appello Systems<br />

3.3.3 deCarta<br />

3.3.4 Elektrobit<br />

3.3.5 Fullpower Technologies<br />

3.3.6 Google<br />

3.3.7 GPS Tuner<br />

3.3.8 Intrinsyc Software<br />

3.3.9 Maction Technologies<br />

3.3.10 Mireo<br />

3.3.11 NavGuard<br />

3.3.12 NaviExpert<br />

3.3.13 Navitel<br />

3.3.14 NAVITIME<br />

3.3.15 Navmii<br />

3.3.16 NDrive<br />

3.3.17 NNG<br />

3.3.18 PH Informatica<br />

3.3.19 ROUTE 66<br />

3.3.20 Skobbler<br />

3.3.21 Sygic<br />

3.3.22 TeleCommunication Systems<br />

3.3.23 TeleNav<br />

3.3.24 Telmap<br />

3.3.25 UbiEst<br />

3.3.26 Waze<br />

3.3.27 Wikitude<br />

3.3.28 Yapp Mobile<br />

4 Mobile operator service<br />

offerings<br />

4.1 Navigation services from mobile<br />

operators in North America<br />

4.1.1 AT&T<br />

4.1.2 Bell Mobility<br />

4.1.3 MetroPCS<br />

4.1.4 Rogers Wireless<br />

4.1.5 Sprint Nextel<br />

4.1.6 TELUS<br />

4.1.7 Verizon Wireless<br />

4.2 Navigation services from mobile<br />

operators in Europe<br />

4.2.1 Deutsche Telekom Group<br />

4.2.2 Orange Group<br />

4.2.3 SFR<br />

4.2.4 Telefónica Group<br />

4.2.5 Telekom Austria Group<br />

4.2.6 TeliaSonera Group<br />

4.2.7 Vodafone Group<br />

4.3 Navigation services from mobile<br />

operators in Asia Pacific<br />

4.3.1 Country profile: Australia<br />

4.3.2 Country profile: Japan<br />

4.3.3 Country profile: South Korea<br />

4.3.4 SingTel Group<br />

4.3.5 Tata Indicom<br />

4.3.6 Vodafone New Zealand<br />

4.4 Navigation services in other countries<br />

4.4.1 Country profile: Israel<br />

4.4.2 Country profile: South Africa<br />

4.4.3 América Móvil<br />

4.4.4 NII Holdings<br />

4.4.5 Telefónica Latin America<br />

4.4.6 Mobile TeleSystems<br />

5 Device vendor profiles<br />

5.1 PND market developments<br />

5.1.1 PND feature evolution<br />

5.1.2 Market consolidation<br />

5.2 PND shipments and vendor market<br />

shares<br />

5.2.1 Shipments by geographical region<br />

5.2.2 PND hardware revenues<br />

5.2.3 Vendor market shares<br />

5.3 PND vendor profiles and strategies<br />

5.3.1 Garmin<br />

5.3.2 Navigon<br />

5.3.3 TomTom<br />

5.3.4 MiTAC<br />

5.3.5 Airis<br />

5.3.6 AvMap<br />

5.3.7 Mappy / Logicom<br />

5.3.8 MEDION<br />

5.3.9 Panasonic<br />

5.3.10 Shinco<br />

5.3.11 Sony<br />

5.3.12 Thinkware Systems<br />

5.3.13 UniStrong<br />

5.3.14 United Navigation<br />

5.4 Handset market developments<br />

5.4.1 Smartphone evolution<br />

5.4.2 Handset vendor market shares<br />

5.4.3 Handset vendor navigation service<br />

strategies<br />

5.5 Handset vendor profiles and<br />

strategies<br />

5.5.1 Apple<br />

5.5.2 HTC<br />

5.5.3 LG Electronics<br />

5.5.4 Motorola<br />

5.5.5 Nokia<br />

5.5.6 RIM<br />

5.5.7 Samsung Electronics<br />

5.5.8 Sony Ericsson<br />

6 Market analysis and forecasts<br />

6.1 Navigation industry trends<br />

6.1.1 The total navigation system penetration<br />

rate is still low globally<br />

6.1.2 Low cost in-dash navigation systems<br />

drive take rates<br />

6.1.3 Evolution of handset navigation<br />

distribution channels<br />

6.1.4 Evolution of handset navigation<br />

business models<br />

6.2 Regional markets<br />

6.2.1 The European mobile navigation<br />

market<br />

6.2.2 The European PND market<br />

6.2.3 The North American mobile navigation<br />

market<br />

6.2.4 The North American PND market<br />

6.2.5 The Rest of World mobile navigation<br />

market<br />

6.2.6 The Rest of World PND market<br />

Glossary


LBS Research Series<br />

Mobile Location-Based<br />

Services<br />

Mobile Location-Based Services is the sixth consecutive<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments on<br />

the European and North American LBS markets.<br />

This report in the LBS Research Series from <strong>Berg</strong> <strong>Insight</strong><br />

provides you with 140 pages of unique business intelligence<br />

including 5-year industry forecasts and expert commentary<br />

on which to base your business decisions.<br />

This report will allow you to:<br />

Learn about the LBS strategies of major telecom operators<br />

in Europe and North America.<br />

Profit from 30 new executive interviews with market<br />

leading companies.<br />

Identify key players on the European and North American<br />

mobile LBS market.<br />

Understand the opportunities and challenges for locationbased<br />

advertising.<br />

Benefit from valuable insights about the most successful<br />

LBS propositions on the market.<br />

Comprehend how location technologies affect the user<br />

experience of LBS.<br />

Predict future business opportunities for mobile industry<br />

players in LBS.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s LBS Research Series<br />

What are the real business opportunities for LBS on the global market? <strong>Berg</strong> <strong>Insight</strong>’s<br />

LBS Research Series is a unique series of market reports published on a quarterly<br />

basis. Each title offers detailed analysis of the most interesting LBS topics such as<br />

handset-based satellite positioning technology, mobile personal navigation services<br />

and location-enabled content services. Once per year we also publish a summary of<br />

our research with detailed forecasts for the major regions.<br />

www.berginsight.com


LBS Research Series<br />

Business models for LBS shift to<br />

freemium and advertising<br />

Mobile location-based services (LBS) are gradually achieving<br />

mainstream market acceptance. Popular service categories include<br />

mapping and navigation, search and information, social networking<br />

and entertainment, recreation and fitness as well as tracking. Mapping<br />

and navigation is the leading segment in terms of revenues and the<br />

second largest in terms of number of active users. Despite continued<br />

growth of active users driven by rising adoption of smartphones,<br />

revenues for mapping and navigation services are only growing slowly<br />

as competition from free and low cost services has intensified. Whitelabel<br />

navigation developers are now working with mobile operators to<br />

create unique localised offerings and attractive service bundles. Some<br />

navigation service providers are focusing on freemium apps where<br />

the core turn-by-turn navigation service is free and users have the<br />

option to purchase additional content and features. Usage of search<br />

and information services is growing fast as more subscribers adopt<br />

mobile Internet services and handsets with improved capabilities.<br />

Local search is now the leading LBS category in terms of unique users.<br />

The popular social networking services are also experiencing rapidly<br />

growing uptake from mobile users. Increasingly, these services add<br />

various forms of location support.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that the number of active users of locationbased<br />

services and apps more than doubled in 2011. At the end of the<br />

year, about 20 percent of mobile subscribers in Europe are frequent<br />

users of location-based services. In North America where adoption of<br />

smartphones and GPS-enabled handsets is higher, an estimated one<br />

third of all handset users now access location-based services regularly.<br />

However, the significant growth in usage and number of active LBS<br />

users have not yet resulted in substantial growth in revenues. Total<br />

LBS service revenues in the EU 27+2 reached € 205 million in 2010<br />

and <strong>Berg</strong> <strong>Insight</strong> forecasts LBS revenues to grow to about € 435 million<br />

in 2016. In North America, revenues are forecasted to grow from<br />

US$ 620 million in 2010 to an estimated US$ 710 million in 2016.<br />

Ad-funding is already the main source of revenues in many consumer<br />

LBS categories. Notable exceptions include the mapping and<br />

navigation as well as tracking service categories where ad revenues<br />

now account for less than 10 percent of total revenues. Along with<br />

increasing usage and a maturing advertising ecosystem, ad revenues<br />

will grow both in absolute terms and as a share of total revenues also in<br />

the mapping and navigation segment. Many actors in the mobile value<br />

chain show great interest in location targeted ads. Although location<br />

can be a very valuable targeting attribute for some brands and campaigns,<br />

many other attributes are available that can be more relevant.<br />

Moreover, several issues – such as user privacy and pricing of location<br />

data – need to be resolved before location-based ad campaigns can<br />

leave the trial stage and contribute significantly to overall revenues.<br />

Historically, mobile operators have been key partners and the main<br />

distribution channel for app and service developers. Operators have<br />

had a unique position with a direct relationship with a large user<br />

base, allowing them to market services, pre-install applications on<br />

new handsets, present links to services from their portals and handle<br />

end-user billing. This central role is now being challenged by the<br />

rising smartphone ecosystems such as Android, iOS and Windows<br />

Phone that in many cases integrate key location-based services<br />

and give developers access to location data, distribution channels<br />

in the form of on-device app stores as well as billing and advertising<br />

solutions for monetisation. Developers can also access location data<br />

from numerous independent Wi-Fi and cellular base station location<br />

database providers. These location services are well suited for a range<br />

of consumer-oriented services primarily targeting smartphone users.<br />

Many operators are now opening their location platforms to third party<br />

developers and location aggregators that play an important role as<br />

intermediaries between mobile operators and developers. Networkbased<br />

location data is valuable for developers and third parties that<br />

need to locate any device, not only GPS-enabled smartphones,<br />

without the need to install a client app that collects location data<br />

on each device. Most operators’ location platforms have a limited<br />

capacity and operators therefore maintain relatively high prices for<br />

each location look-up. This is a justifiable cost for services where a<br />

successful location look-up adds significant value and the developer<br />

can charge their customers accordingly. This is the case for a range<br />

of enterprise and B2B services including asset tracking, workforce<br />

management, authentication and fraud prevention.<br />

This report answers the following questions:<br />

€ million<br />

600<br />

500<br />

Europe<br />

27+2 America<br />

What is the current status of the European and North American<br />

mobile LBS market?<br />

How are free navigation offerings affecting the market dynamics?<br />

400<br />

What are the mobile strategies of search engines and directory<br />

publishers?<br />

300<br />

How is location technology used by mobile social networks and<br />

communities?<br />

200<br />

How is GPS-technology altering the conditions for tracking<br />

services?<br />

100<br />

Which operators have introduced branded location-based<br />

services?<br />

0<br />

2010<br />

2011 2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Year<br />

How is location being used to add value in mobile advertising?<br />

Mobile LBS revenue forecast, € million (2010–2016)


Table of Contents<br />

1 Introduction to location-based<br />

services<br />

1.1 Definition of mobile location-based<br />

services<br />

1.2 Mobile communication services<br />

1.2.1 Mobile voice and SMS service<br />

revenues<br />

1.2.2 Mobile data and application revenues<br />

1.2.3 Location apps and service revenues<br />

1.3 Mobile LBS categories<br />

1.3.1 Mapping and navigation<br />

1.3.2 Local search and information<br />

1.3.3 Social networking and entertainment<br />

1.3.4 Recreation and fitness<br />

1.3.5 Tracking services<br />

1.3.6 Other services<br />

1.4 Mobile app monetisation strategies<br />

and business models<br />

1.4.1 Free apps<br />

1.4.2 Paid apps<br />

1.4.3 Freemium apps and in-app payments<br />

1.4.4 Ad-funding<br />

1.4.5 New channel to market<br />

1.4.6 Bundled products and services<br />

1.4.7 Mobile app business model trends<br />

1.5 Mobile location technologies and<br />

platforms<br />

1.5.1 Mobile network-based location<br />

technologies<br />

1.5.2 GNSS: GPS, GLONASS, Galileo and<br />

Compass<br />

1.5.3 Hybrid and mixed mode technologies<br />

1.5.4 Accuracy requirements for LBS<br />

1.6 The regulatory environment in Europe<br />

and North America<br />

1.6.1 European emergency call and privacy<br />

regulations<br />

1.6.2 LBS regulatory environment in the US<br />

1.6.3 Emergency call regulations in Canada<br />

2 Smartphone ecosystems<br />

2.1 Smartphone OS platforms<br />

2.1.1 Android<br />

2.1.2 iOS<br />

2.1.3 Windows Phone 7<br />

2.1.4 Symbian<br />

2.1.5 BlackBerry OS and BBX<br />

2.1.6 Samsung’s Bada platform<br />

2.2 App stores<br />

2.2.1 Android Market<br />

2.2.2 Apple App Store<br />

2.2.3 BlackBerry App World<br />

2.2.4 Nokia Ovi Store<br />

2.2.5 Windows Phone Marketplace<br />

2.3 Ad networks and in-app ad solutions<br />

2.3.1 Apple iAd<br />

2.3.2 RIM BlackBerry Advertising Service<br />

2.3.3 Microsoft Windows Phone 7 and<br />

Microsoft Advertising<br />

2.3.4 Nokia in-app advertising and NAVTEQ<br />

Media Solutions<br />

2.3.5 Google Admob<br />

2.4 Leading smartphone vendors<br />

2.4.1 Apple<br />

2.4.2 HTC<br />

2.4.3 LG Electronics<br />

2.4.4 Motorola Mobility<br />

2.4.5 Nokia<br />

2.4.6 RIM<br />

2.4.7 Samsung Electronics<br />

2.4.8 Sony Ericsson<br />

2.5 Industry analysis<br />

2.5.1 New vertical silos<br />

2.5.2 Towards a complete LBS stack<br />

2.5.3 Operator strategies<br />

2.5.4 Handset vendor strategies<br />

2.5.5 The mobile web, HTML5 web apps and<br />

native apps<br />

3 Operator LBS offerings and<br />

strategies<br />

3.1 The European operator LBS market<br />

3.1.1 3 Group<br />

3.1.2 Deutsche Telekom Group<br />

3.1.3 KPN Group<br />

3.1.4 Orange Group<br />

3.1.5 Telecom Italia Mobile<br />

3.1.6 Telefónica Group<br />

3.1.7 Telenor Group<br />

3.1.8 TeliaSonera Group<br />

3.1.9 Vodafone Group<br />

3.2 The North American operator LBS<br />

market<br />

3.2.1 AT&T Mobility<br />

3.2.2 Bell Mobility<br />

3.2.3 MetroPCS<br />

3.2.4 Rogers Wireless<br />

3.2.5 Sprint Nextel<br />

3.2.6 TELUS<br />

3.2.7 T-Mobile USA<br />

3.2.8 Verizon Wireless<br />

3.3 Location aggregators and Locationas-a-Service<br />

providers<br />

3.3.1 Deveryware<br />

3.3.2 LOC-AID<br />

3.3.3 Location Labs<br />

3.3.4 Lociloci<br />

3.3.5 Mobile Commerce<br />

3.3.6 TechnoCom<br />

3.4 Industry analysis<br />

3.4.1 Organisational capabilities and goals<br />

limit operator’s ability to provide LBS<br />

3.4.2 Smartphone platforms challenge<br />

operators’ central role<br />

3.4.3 The rise of third party developers and<br />

apps<br />

4 Key LBS categories<br />

4.1 Mapping and navigation<br />

4.1.1 Mapping and routing services<br />

4.1.2 Traffic information services<br />

4.1.3 Turn-by-turn navigation services<br />

4.1.4 Mapping and navigation industry trends<br />

4.1.5 Mobile operator service offerings<br />

4.1.6 Handset vendor offerings<br />

4.1.7 App stores and service providers<br />

4.1.8 Key market players<br />

4.2 Local search and information<br />

4.2.1 Directory services<br />

4.2.2 Local discovery and review services<br />

4.2.3 Travel planning, guides and information<br />

services<br />

4.2.4 Shopping and coupon services<br />

4.3 Social networking and entertainment<br />

4.3.1 Social networking and community<br />

services<br />

4.3.2 Check-in services<br />

4.3.3 Friendfinder services<br />

4.3.4 Chat and instant messaging services<br />

4.3.5 Location-based games<br />

4.4 Recreation and fitness<br />

4.4.1 Geocaching apps<br />

4.4.2 Outdoor navigation<br />

4.4.3 Sports tracking apps<br />

4.5 Tracking services<br />

4.5.1 Family locator services<br />

4.5.2 Smartphone tracking apps<br />

4.5.3 Enterprise tracking services<br />

5 Market analysis and forecasts<br />

5.1 Summary of the LBS market<br />

5.1.1 The European LBS market<br />

5.1.2 The North American LBS market<br />

5.2 Mobile advertising and location<br />

5.2.1 Challenges and opportunities for mobile<br />

advertising<br />

5.2.2 Location can improve ROI for<br />

advertisers<br />

5.3 Vertical market trends<br />

5.3.1 Mapping and navigation services<br />

become free for end-users<br />

5.3.2 Search and information services growth<br />

driven by smartphone uptake<br />

5.3.3 Social networking and entertainment<br />

services gradually add location<br />

5.3.4 Smartphones are increasingly used as<br />

recreation and fitness devices<br />

5.3.5 Corporate efficiency investments drive<br />

tracking service revenues<br />

Glossary


LBS Research Series<br />

LBS Platforms and<br />

Technologies<br />

LBS Platforms and Technologies is the third consecutive<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments<br />

on the global market for LBS platforms and middleware.<br />

This report in the LBS Research Series from <strong>Berg</strong> <strong>Insight</strong><br />

provides you with 120 pages of unique business intelligence<br />

including 5-year industry forecasts and expert commentary<br />

on which to base your business decisions.<br />

This report will allow you to:<br />

Profit from 30 new executive interviews with market leading<br />

companies.<br />

Learn about the latest trends for location platforms and<br />

technologies worldwide.<br />

Identify new business opportunities enabled by new location<br />

platform architectures.<br />

Predict which location technologies will be deployed in the<br />

future.<br />

Anticipate future drivers for location platforms and<br />

middleware revenues.<br />

Understand the opportunities and challenges for mobile<br />

location-based services globally.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s LBS Research Series<br />

What are the real business opportunities for LBS on the global market? <strong>Berg</strong> <strong>Insight</strong>’s<br />

LBS Research Series is a unique series of market reports published on a quarterly<br />

basis. Each title offers detailed analysis of the most interesting LBS topics such as<br />

handset-based satellite positioning technology, mobile personal navigation services<br />

and location-enabled content services. Once per year we also publish a summary<br />

of our research with detailed forecasts for the global mobile LBS market.<br />

www.berginsight.com


LBS Research Series<br />

The global market for LBS platforms<br />

and middleware to double in the next<br />

5 years<br />

Mobile location platforms enable mobile network operators to offer<br />

location-based services (LBS). Location platforms typically comprise<br />

software extensions to network infrastructure components that together<br />

can calculate the position of a handset. Many mobile operators also deploy<br />

location middleware that functions as a mediator between the location<br />

platform, applications and support systems – and more importantly,<br />

provides centralised control of privacy settings for all applications.<br />

Mobile location platforms enable three categories of services: public<br />

safety services, national security and law enforcement applications, as<br />

well as commercial LBS. Nearly 70 percent of all emergency calls are<br />

today placed from mobile phones and it can often be difficult for the<br />

caller to convey their location accurately to first responders. Automatic<br />

location platforms can reduce the time to find the location of the caller.<br />

They also enable more efficient handling of simultaneous calls from<br />

people reporting the same incident to distinguish single accidents from<br />

multiple events. Another use area is public warning systems that can<br />

locate and send messages to all mobile users within a geo-fenced area.<br />

Government agencies can also use location platforms and data mining<br />

systems for border security, critical infrastructure protection and locationenhanced<br />

lawful intercept.<br />

LBS are services that in some way utilise the geographic location of a<br />

handset, either to enhance existing applications, or enable new types of<br />

applications. An example of the first case is search services that use the<br />

subscriber’s known location as a filter for presenting relevant content.<br />

In the second case, location is used as an enabler for new applications<br />

that are fully dependent on knowing the location of a user or an asset;<br />

examples include navigation and tracking services. Today, countless<br />

consumer and corporate services make use of automatic location of<br />

handsets or other assets. However, a majority of the services use location<br />

data obtained directly from GPS receivers in the handset or various third<br />

party location databases rather than directly from operators.<br />

Location technologies can be divided into handset-based technologies<br />

(such as GPS) with intelligence in the handset, network-based technologies<br />

(for instance Cell-ID, Enhanced Cell-ID and U-TDOA) with intelligence<br />

in the network and hybrid technologies (for instance A-GPS) with<br />

intelligence in both the handset and the network. Handset-based and<br />

€ million<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

Location platform and middleware revenue forecast, € million (World 2010–2016)<br />

2014<br />

2015<br />

2016<br />

Year<br />

hybrid technologies often require additional hardware and software<br />

in the handset, while network-based technologies require deployment<br />

of hardware and software in the mobile network. Each technology has<br />

different characteristics and ultimately, no single technology performs<br />

best in every aspect.<br />

The Federal Communications Commission’s (FCC) E911 mandates for<br />

location of mobile emergency calls released in 1996 was a major driver<br />

behind the development of location platforms for the North American<br />

market. In Europe, as well as in other developed countries such as Japan<br />

and South Korea, the early deployment of location platforms focused on<br />

supporting commercial services due to the lack of a clear mandate for<br />

emergency services. In the first deployment phase, lasting from 2000 to<br />

2003, operators invested in platforms and ready-made location services.<br />

The results were in many cases limited uptake whereby many operators<br />

lost interest in LBS as a mass-market proposition. However, governments<br />

and telecom regulators in many regions worldwide are now introducing<br />

some form of emergency call and lawful intercept mandates that<br />

require at least basic location platforms and technologies. Although the<br />

regulators have typically not yet imposed any specific location accuracy<br />

requirements as part of the mandates, it is highly likely that more stringent<br />

location accuracy will be demanded in the future as technologies mature<br />

and costs decrease.<br />

An estimated 30 percent of the mobile network operators worldwide<br />

have now deployed at least some type of basic location platform.<br />

Additional deployments and updates of existing platforms can be<br />

expected in most markets in the coming years, primarily driven by<br />

government mandates since commercial LBS increasingly rely on<br />

alternative location sources including GNSS, Wi-Fi location and<br />

third party Cell-ID databases. <strong>Berg</strong> <strong>Insight</strong> forecasts that total global<br />

annual revenues for GMLC/MPC, SMLC/PDE and SUPL A-GNSS<br />

location systems and services will grow from € 150 million in 2010 to<br />

€ 300 million in 2016. These revenues comprise integration fees and<br />

licenses for new platform deployments as well as capacity and technology<br />

upgrades, maintenance and associated services.<br />

This report answers the following questions:<br />

What is the current status of the global mobile LBS platform<br />

market?<br />

Which mobile operators have deployed LBS platforms<br />

and middleware?<br />

How is GPS-technology altering the conditions for providers<br />

of location-based services?<br />

What is the current status of E112 in Europe and similar<br />

programs in other regions?<br />

How is GPS-technology affecting network-based location<br />

technologies?<br />

How will lawful intercept requirements affect technology<br />

choice for operators?<br />

Which location platforms and technologies are best<br />

suited for location-based advertising?<br />

Which vendors provide location platforms and middleware<br />

today?


Table of Contents<br />

1 Introduction to<br />

location platforms<br />

1.1 Location platforms and locationbased<br />

services<br />

1.1.1 Overview of mobile location platforms<br />

1.1.2 A brief history of location platforms and<br />

services<br />

1.2 Mobile communication services<br />

1.2.1 Mobile voice and data subscribers<br />

1.2.2 Mobile voice and SMS service revenues<br />

1.2.3 Mobile data and application revenues<br />

1.2.4 Location apps and service revenues<br />

1.3 Mobile location platforms<br />

and technologies<br />

1.3.1 Mobile location platforms<br />

1.3.2 Mobile location technologies<br />

1.3.3 Location middleware and GIS<br />

1.4 The mobile LBS value chain<br />

1.4.1 Location platform and network<br />

equipment vendors<br />

1.4.2 Location technology developers<br />

1.4.3 LBS middleware vendors<br />

1.4.4 Mobile network operators<br />

1.4.5 Location aggregators<br />

1.4.6 Handset manufacturers<br />

1.4.7 Mobile application developers and<br />

service providers<br />

1.5 Location platform pricing models<br />

1.5.1 Capacity-based model<br />

1.5.2 Transaction-based model<br />

1.5.3 Subscriber-based model<br />

1.6 Telecoms regulations drive location<br />

platform deployments<br />

1.6.1 European emergency call and privacy<br />

regulations<br />

1.6.2 LBS regulatory environment in the US<br />

1.6.3 Emergency call regulations in Australia<br />

1.6.4 Emergency call regulations in Canada<br />

1.6.5 Emergency call regulations in Japan<br />

2 Technology overview<br />

2.1 Mobile network location platforms<br />

2.1.1 Location architecture for GSM/UMTS<br />

networks<br />

2.1.2 Location architecture for LTE networks<br />

2.1.3 Control Plane and User Plane location<br />

platforms<br />

2.1.4 OMA SUPL 1.0<br />

2.1.5 OMA SUPL 2.0<br />

2.1.6 OMA SUPL 3.0<br />

2.2 Network-based positioning<br />

technologies<br />

2.2.1 Cell-ID<br />

2.2.2 Enhanced Cell-ID and RF Pattern<br />

Matching methods<br />

2.2.3 E-OTD and OTDOA<br />

2.2.4 Uplink Time Difference of Arrival<br />

(U-TDOA)<br />

2.2.5 Location platforms and technologies in<br />

3GPP2 networks<br />

2.2.6 Location in converged IP networks<br />

2.3 GNSS and hybrid<br />

location technologies<br />

2.3.1 GNSS: GPS, GLONASS, Galileo and<br />

Compass<br />

2.3.2 Assisted GPS and A-GNSS<br />

2.3.3 Hybrid, mixed mode and indoor location<br />

technologies<br />

2.4 Theoretical limitations of<br />

positioning technologies<br />

3 Commercial deployments<br />

3.1 Platform deployments in Europe<br />

3.1.1 3 Group<br />

3.1.2 Deutsche Telekom Group<br />

3.1.3 KPN Group<br />

3.1.4 Orange Group<br />

3.1.5 Telecom Italia Mobile<br />

3.1.6 Telefónica Group<br />

3.1.7 Telenor Group<br />

3.1.8 TeliaSonera Group<br />

3.1.9 Vodafone Group<br />

3.2 Platform deployments in the Americas<br />

3.2.1 AT&T Mobility<br />

3.2.2 Bell Mobility<br />

3.2.3 Rogers Wireless<br />

3.2.4 Sprint Nextel<br />

3.2.5 TELUS<br />

3.2.6 Verizon Wireless<br />

3.2.7 Wind Mobile<br />

3.3 Platform deployments in Asia-Pacific<br />

3.3.1 BSNL<br />

3.3.2 China Mobile<br />

3.3.3 NTT DoCoMo<br />

3.3.4 Telstra<br />

3.3.5 Telkomsel<br />

3.4 Platform deployments in ROW<br />

4 Market forecasts and trends<br />

4.1 LBS market trends<br />

4.1.1 Emergency call mandates remain the<br />

key driver for platform deployments<br />

4.1.2 Location-enabled lawful intercept<br />

4.1.3 LBS service revenue forecast<br />

4.2 Handset market trends<br />

4.2.1 Smartphones<br />

4.2.2 GPS attach rates driven by higher<br />

smartphone sales<br />

4.2.3 Proliferation of GPS-enabled GSM/<br />

WCDMA handset models<br />

4.2.4 GPS-enabled GSM/WCDMA handset<br />

shipment forecasts by segment<br />

4.3 Location platform deployments<br />

4.3.1 Vendor market shares<br />

4.3.2 GMLC and SMLC platform deployment<br />

forecasts<br />

4.3.3 SUPL A-GPS server deployment<br />

forecast<br />

4.3.4 Location middleware deployment<br />

forecast<br />

5 Location platform and<br />

technology vendor profiles<br />

5.1 Location platform and<br />

infrastructure vendors<br />

5.1.1 Alcatel-Lucent<br />

5.1.2 CommScope<br />

5.1.3 Creativity Software<br />

5.1.4 Ericsson<br />

5.1.5 Mobile Arts<br />

5.1.6 Nokia Siemens Networks<br />

5.1.7 Oksijen<br />

5.1.8 Openwave<br />

5.1.9 Redknee<br />

5.1.10 Septier<br />

5.1.11 TeleCommunication Systems<br />

5.1.12 TruePosition<br />

5.2 Location technology developers<br />

5.2.1 Broadcom<br />

5.2.2 CSR<br />

5.2.3 GBSD Technologies<br />

5.2.4 GloPos Technologies<br />

5.2.5 Intersec<br />

5.2.6 Location Labs<br />

5.2.7 Navizon<br />

5.2.8 Polaris Wireless<br />

5.2.9 Pole Star<br />

5.2.10 Qualcomm<br />

5.2.11 Rx Networks<br />

5.2.12 Skyhook Wireless<br />

5.3 Middleware vendors<br />

5.3.1 CellVision<br />

5.3.2 Genasys<br />

5.3.3 Mobilaris<br />

5.3.4 Reach-U<br />

5.3.5 Telenity<br />

Glossary


VAS Research Series<br />

Mobile Advertising<br />

and Marketing<br />

Mobile Advertising and Marketing is the fifth consecutive report<br />

analysing the rise of mobile advertising on the global market.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with 160 pages of unique business intelligence and expert<br />

commentary on which to base your business decisions.<br />

This report will allow you to:<br />

Identify tomorrow’s most profitable advertising opportunities<br />

in the mobile space.<br />

Understand the fundamentals of the ad-based mobile media<br />

revenue models.<br />

Recognise the key enablers of growth in the mobile<br />

advertising market.<br />

Comprehend the relative importance of digital channels<br />

compared to other advertising media.<br />

Learn about the experiences of mobile marketing campaigns<br />

by top global brands.<br />

Profit from valuable insights about ad-funded business<br />

models for mobile operators.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s VAS Research Series<br />

What are the key business opportunities for value added services in the mobile<br />

industry? <strong>Berg</strong> <strong>Insight</strong>’s VAS Research Series is a unique series of analytical<br />

industry reports. Each title offers detailed analysis of current hot topics such as<br />

mobile apps, mobile Internet, mobile TV, mobile broadband or mobile marketing.<br />

We put mobile VAS into a greater perspective, offering a realistic approach and<br />

accurate forecasts.<br />

www.berginsight.com


VAS Research Series<br />

The mobile channel is joining<br />

mainstream media<br />

There are close to 6 billion active mobile subscriptions across the<br />

globe, which can be compared with about 2 billion Internet users.<br />

This underpins the vast potential of the mobile channel for advertising<br />

and marketing, being highly important for brands seeking<br />

to engage in communication with present and potential customers.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that the total value of the global mobile<br />

marketing and advertising market was € 2.61 billion in 2010, having<br />

experienced healthy growth throughout the financial crisis and the<br />

following recuperation. Growing at a compound annual growth rate<br />

of 36.9 percent, the market is forecasted to be worth € 17.2 billion in<br />

2016 – corresponding to 15.2 percent of the total digital advertising<br />

market. Mobile advertising is at the same time predicted to account<br />

for 3.8 percent of the total global ad spend for all media.<br />

The mobile media has several especially interesting attributes from a<br />

marketing perspective. First of all most people have a mobile handset,<br />

making reach unmatched. Mobile handsets and networks are<br />

also getting increasingly advanced, making it possible to deliver<br />

highly compelling advertising experiences, incorporating rich media,<br />

video and interactive content. Even more importantly, handsets<br />

are extremely personal devices which people tend to always have<br />

within reach and most often switched on. This enables marketing<br />

possibilities which other channels lack. Consumers can be reached<br />

at all times and in all places, which makes the channel stand out of<br />

the crowd. The personal nature of the devices makes it possible to<br />

deliver messages which are highly relevant for the recipient, taking<br />

into consideration demographics, interests, habits and other preferences.<br />

Communication having undergone such screening is bound<br />

to be much more effective in portraying a brand positively. The ROI<br />

of such initiatives can be substantially better than for intrusive campaigns<br />

where all consumers are flooded with the same non-personalised<br />

message. The mobile channel can in this way avoid the pitfall<br />

of unsolicited communication and capture an important role in the<br />

future of marketing.<br />

For several years, mobile media has been claimed to be on the verge<br />

of entering the array of main media channels for marketing. During<br />

the last years, companies have started to leave the experimental<br />

stage and deliver full-scale campaigns, gradually including mobile in<br />

the marketing media mix. Advertisers include blue chip companies<br />

20000<br />

15000<br />

10000<br />

€ million<br />

5000<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

2016<br />

Mobile advertising revenue forecast, € million (Worldwide 2010–2016)<br />

Year<br />

as well as SMEs. Exposure through multiple channels, digital as<br />

well as traditional, has proven to generate better outcomes than<br />

when channels are used in isolation. This is especially true for the mobile<br />

media, being relatively new and therefore bound to benefit from<br />

the viral effects created by campaigns spanning several media and<br />

generating attention across the population of potential customers.<br />

Numerous actors are engaging in activities related to mobile marketing,<br />

including large players from the digital industry. Google and<br />

Apple, with the AdMob and iAd advertising platforms, hold major<br />

market shares in mobile advertising. Microsoft has struggled in the<br />

mobile space and has joined forces with Nokia in an attempt to create<br />

a third mobile ecosystem to compete with Google’s Android and<br />

Apple’s iOS. A wide variety of other companies are also involved in<br />

the value chain, including specialised mobile actors such as Millennial<br />

Media, Amobee and Smaato. Facebook is furthermore on the<br />

verge of establishing its presence in the mobile advertising space,<br />

and may very well become an important player if leveraging user<br />

data for targeted mobile campaigns.<br />

There are a number of key takeaways from the latest developments<br />

in mobile marketing. The channel is getting established as an integral<br />

part of the media mix, a progress which is eased by the booming<br />

smartphone adoption and increasing mobile media consumption.<br />

Brands do however need to refine their marketing strategies to<br />

integrate the mobile channel, in order to spend wisely and capitalise<br />

on the potential the mobile channel brings. Operators need to pay<br />

attention to the possible changes in the mobile ecosystem, where<br />

advertising can be an important future source of revenue. Within the<br />

plethora of advertising formats, applications are currently extremely<br />

popular, though also the mobile web is seeing increased uptake<br />

spurred by HTML5. While advanced formats offer impressive user<br />

experiences, the potential in more simple alternatives such as SMS<br />

and coupons is however still substantial, not the least due to an<br />

unprecedented reach. Finally, the integration of location-sensitivity<br />

in advertising efforts is increasing, an area which releases the full<br />

potential of the mobile channel.<br />

This report answers the following questions:<br />

How should mobile handsets be integrated in the marketing<br />

media mix?<br />

What changes in the mobile industry and end-user behaviour are<br />

required for mobile advertising to keep growing as a multi-billion<br />

euro market?<br />

How are Apple, Google, Microsoft and Yahoo! positioning<br />

themselves to become leading mobile advertising players?<br />

Who are the rising stars that stand out from the crowd among the<br />

mobile advertising and marketing companies?<br />

How well suited for advertising are different existing and future<br />

mobile media channels?<br />

What are the experiences from mobile marketing campaigns so far?<br />

What implications does mobile advertising bring for operators?<br />

Which advertising formats will become most successful in the<br />

mobile environment?<br />

In what ways can location technology improve the relevancy of<br />

mobile advertising?


Table of Contents<br />

1 Advertising and digital media<br />

1.1 The marketing and<br />

advertising industry<br />

1.1.1 Global advertising expenditure<br />

1.1.2 Advertisement expenditure by media<br />

1.1.3 Top 20 global advertisers<br />

1.1.4 Marketing industry players<br />

1.2 The Internet media channel<br />

1.2.1 Internet usage trends<br />

1.2.2 Internet advertising expenditure<br />

1.2.3 Internet advertising formats<br />

1.3 The mobile media channel<br />

1.3.1 Europe<br />

1.3.2 United States<br />

1.3.3 Japan<br />

1.3.4 Emerging markets<br />

2 Mobile advertising<br />

2.1 The mobile handset as<br />

an advertising platform<br />

2.1.1 Physical characteristics of the mobile<br />

handset<br />

2.1.2 Handset software<br />

2.1.3 Location capabilities<br />

2.1.4 Mobile networks and data transfer<br />

capabilities<br />

2.1.5 Mobile Internet versus PC-based<br />

Internet<br />

2.2 Advertising on the mobile handset<br />

2.2.1 Deploying mobile advertising<br />

2.2.2 Targeting mobile campaigns<br />

2.2.3 Exploiting location technology<br />

2.2.4 Privacy concerns<br />

2.2.5 Pricing models and cost<br />

2.3 The mobile advertising ecosystem<br />

2.3.1 Advertisers<br />

2.3.2 Ad agencies and creative designers<br />

2.3.3 Digital ad networks<br />

2.3.4 Technical solution providers<br />

2.3.5 Mobile operators<br />

2.3.6 Online media publishers and mobile<br />

application providers<br />

2.3.7 Industry associations<br />

3 Messaging and<br />

mobile marketing<br />

3.1 SMS and MMS marketing<br />

3.1.1 Push messaging<br />

3.1.2 Pull messaging and Common Short<br />

Codes<br />

3.1.3 Location-targeted SMS campaigns<br />

3.2 Idle screen and cell broadcast<br />

3.3 Mobile coupons<br />

3.4 Proximity-based marketing<br />

3.4.1 Bluetooth<br />

3.4.2 NFC<br />

3.4.3 Barcodes<br />

3.5 Case studies<br />

3.5.1 Placecast’s ShopAlerts platform<br />

generates major ROI for Fitness First<br />

3.5.2 McDonald’s in Japan integrates mobile<br />

coupons and contactless wallet<br />

3.5.3 Blockbuster achieves impressive<br />

redemption rates from mobile coupons<br />

3.5.4 Bluetooth coupons available at major<br />

hotel chains<br />

3.5.5 Coca-Cola seeks to save the polar<br />

bears through SMS donation<br />

campaign<br />

4 Mobile web advertisement<br />

4.1 Portals<br />

4.2 News and information<br />

4.3 Mobile search<br />

4.3.1 Market players and strategies<br />

4.3.2 Directory services and local search<br />

4.4 Communities and social networking<br />

4.4.1 Market players and strategies<br />

4.4.2 Social media marketing<br />

4.5 Mobile music and video<br />

4.6 Case studies<br />

4.6.1 Expedia creates award winning<br />

location-based mobile website using<br />

HTML5<br />

4.6.2 McDonald’s engages customers in<br />

billboard games via mobile web<br />

4.6.3 Dictionary.com’s tiered approach<br />

optimises user experience across<br />

platforms<br />

4.6.4 Intel campaign shows mobile web ads<br />

outperform in-app ads<br />

4.6.5 Fandango delivers app-like experience<br />

to moviegoers on the mobile web<br />

5 Ad-funded applications<br />

5.1 Mobile applications<br />

5.1.1 Mobile games<br />

5.1.2 Mobile map and navigation<br />

applications<br />

5.1.3 Mobile search applications<br />

5.1.4 Mobile music and video applications<br />

5.1.5 Social networking applications<br />

5.1.6 Pure advertising apps<br />

5.2 In-app advertising<br />

5.2.1 Apple – iAd<br />

5.2.2 RIM – BlackBerry Advertising Service<br />

5.2.3 Microsoft – Windows Phone 7/Microsoft<br />

Advertising<br />

5.2.4 Nokia – Windows Phone 7 and legacy<br />

systems<br />

5.2.5 Android – AdMob and third party ad<br />

networks<br />

5.3 Case studies<br />

5.3.1 Angry Birds Magic Places and Live<br />

generates substantial attention<br />

5.3.2 MINI’s location-based reality game<br />

attracts thousands of players<br />

5.3.3 McDonald’s promotes breakfast items<br />

with in-app game ad in Pandora<br />

5.3.4 Poynt’s local business search<br />

application reaches 11 million users<br />

5.3.5 Heineken’s StarPlayer application offers<br />

dual screen football experience<br />

6 Forecasts and conclusions<br />

6.1 Mobile marketing industry analysis<br />

6.1.1 Buyer-side: Adoption of mobile ads<br />

moves beyond the experimental stage<br />

6.1.2 Supplier-side: Continued consolidation<br />

and emergence of mobile players<br />

6.1.3 Consumer-side: Mobile Internet will<br />

eventually overtake desktop access<br />

6.1.4 Channels and formats: Which will<br />

succeed?<br />

6.1.5 Convergence trends<br />

6.2 Potential market value analysis<br />

6.2.1 Target audience and exposure<br />

6.2.2 CPM levels<br />

6.2.3 CTRs for mobile campaigns<br />

6.2.4 Revenue sensitivity analysis<br />

6.3 Market forecasts<br />

6.4 Final conclusions<br />

7 Company profiles<br />

and strategies<br />

7.1 Top advertising agencies<br />

7.2 Telecom industry players<br />

7.2.1 Turkcell at the forefront of mobile<br />

advertising with huge opt-in database<br />

7.2.2 Blyk’s opt-in advertising solution for<br />

operators successful in India<br />

7.2.3 O2 Germany relaunches ad-funded<br />

Netzclub price plan with new tariffs<br />

7.2.4 Ericsson aims to remove complexity by<br />

launching AdMarket<br />

7.3 Digital industry players<br />

7.3.1 Google’s US$ 2.5 billion mobile<br />

business with Mobile First and SoLoMo<br />

7.3.2 Microsoft and Nokia team up to build a<br />

new global mobile ecosystem<br />

7.3.3 Yahoo! provides rich content for mobile<br />

and taps into ad revenues<br />

7.4 Mobile advertising players<br />

7.4.1 AdMob<br />

7.4.2 Amobee<br />

7.4.3 Jumptap<br />

7.4.4 Millennial Media<br />

7.4.5 Out There Media<br />

7.4.6 Smaato<br />

7.4.7 Velti<br />

Glossary


VAS Research Series<br />

The Mobile<br />

Application Market<br />

The Mobile Application Market is a comprehensive market<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments on<br />

the global market for mobile applications and app stores.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with 110 pages of unique business intelligence including<br />

5-year industry forecasts and expert commentary to base your<br />

business decisions.<br />

This report will allow you to:<br />

Identify the key players in the mobile application value chain.<br />

Benefit from extensive forecasts and statistical material.<br />

Recognise the business opportunities in the mobile<br />

application market.<br />

Predict tomorrow’s most profitable monetisation strategies.<br />

Learn about the market opportunity for mobile network<br />

operators.<br />

Evaluate the existing mobile app platforms.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s VAS Research Series<br />

What are the key business opportunities for value added services in the mobile<br />

industry? <strong>Berg</strong> <strong>Insight</strong>’s VAS Research Series is a unique series of analytical<br />

industry reports. Each title offers detailed analysis of current hot topics such<br />

as mobile messaging, mobile Internet, mobile TV, mobile broadband or mobile<br />

marketing. We put mobile VAS into a greater perspective, offering a realistic<br />

approach and accurate forecasts.<br />

www.berginsight.com


VAS Research Series<br />

The smartphone trend is accelerating<br />

the mobile application market<br />

Software especially developed for mobile phones has been around<br />

for well over a decade and before the term application (app) store<br />

was popularized, distribution of mobile content and applications<br />

was often realized through portals which were managed by network<br />

operators. Operator portals had some success in selling mobile content<br />

but the ecosystem was at first unclear and did not attract enough<br />

developers and users to really take off. The Apple App Store – an<br />

on device centralized store – with easy to find applications and with<br />

a simplified business model for developers, was later the disruptive<br />

force that kick-started the market for mobile applications. The success<br />

was immediate and within its first week of operation, the App<br />

Store accounted for 10 million app downloads. Today all leading<br />

operating system providers and handset vendors have followed and<br />

launched their own application stores.<br />

The ecosystem around devices consisting of services and applications<br />

has today become an important influencing factor for users<br />

when choosing handsets. Therefore, it is important for mobile platform<br />

vendors to achieve a prosperous mobile app ecosystem that<br />

creates revenues for publishers and value for end users in order to<br />

increase customer loyalty and sell more devices. Even though the<br />

directly generated revenues in mobile app stores still are comparably<br />

small, the importance of mobile apps is self evidential when observing<br />

the consumer interest in apps as well as the fact that apps attract<br />

and generate revenues for a growing mobile community of software<br />

developers, publishers, media owners and mobile ad companies.<br />

In 2010, there were approximately 10 billion app downloads made<br />

on all mobile platforms. Consumers are getting used to expanding<br />

the functionality of their devices through apps and <strong>Berg</strong> <strong>Insight</strong> anticipates<br />

the number of app downloads to almost threefold year-on-year<br />

in 2011. Even if featurephones are able to run apps, the increased<br />

sales of smartphones and the rising popularity of apps are closely<br />

tied together. In 2015, over 70 percent of all handset shipments will be<br />

smartphones, building a large user base that will spur the number of<br />

app downloads to reach almost 100 billion during 2015. The number<br />

of app downloads per platform will gradually mimic the market share<br />

for each mobile platform. However, some of the newer platforms,<br />

such as iOS and Android, are much more app centric than older<br />

Billion Downloads<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

Mobile application downloads, billion downloads (World 2009–2015)<br />

Year<br />

platforms such as Symbian. Also, network effects in the symbiosis<br />

between users and developers, reinforces the most popular platforms<br />

and attracts both more developers and users. <strong>Berg</strong> <strong>Insight</strong> forecasts<br />

that iOS and Android combined will serve over 62 percent of the total<br />

app downloads in 2015. The Windows Phone operating system is<br />

projected to be the third most popular application platform in 2015.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that revenues from paid applications, in-app<br />

purchases and subscription services – so called direct revenues –<br />

reached € 1.6 billion in 2010. <strong>Berg</strong> <strong>Insight</strong> forecasts direct app store<br />

revenues to grow at a compound annual growth rate of 40.7 percent<br />

to reach € 8.8 billion in 2015. Apple’s iOS is the current leader in direct<br />

monetisation of mobile applications and will keep the number one<br />

position during the forecast period. In 2010, the Apple App Store generated<br />

revenues of € 1.33 billion. In 2015 the company’s app store is<br />

predicted to generate € 4.4 billion in direct revenues. The Android<br />

platform is the second largest platform in terms of direct revenues<br />

and generated € 80 million during 2010 which will grow to almost<br />

€ 1.5 billion in 2015.<br />

The market for in-app advertising took off during 2010 as a means<br />

to capitalize on free apps. In-app advertising generated € 300 million<br />

representing 16 percent of the total app revenues during the year.<br />

In 2011, app advertising revenues will more than double to reach<br />

€ 750 million. The in-app advertising revenues will increase throughout<br />

the forecast period and in 2015, in-app advertising is forecasted<br />

to generate € 3.5 billion corresponding to 29 percent of the total app<br />

revenues. In-app advertising is more of a volume game and Android<br />

will surpass iOS in 2012 as the platform that generates most in-app<br />

ad revenues. <strong>Berg</strong> <strong>Insight</strong> predicts Android to generate over € 1.2<br />

billion in in-app ad revenues in 2015, up from € 39 million in 2010.<br />

The iOS platform generated € 230 million in 2010 and is forecasted to<br />

reach almost € 1.0 billion in 2015.<br />

This report answers the following questions:<br />

Which mobile platforms offer the best potential for<br />

monetising mobile apps?<br />

How can mobile operators benefit from the mobile<br />

application market?<br />

Which will be the most important business strategies for<br />

mobile applications?<br />

What are the impacts of web technologies such as<br />

HTML5 on the mobile application market?<br />

Why is it important with a multi platform development<br />

strategy?<br />

How big is the revenue opportunity within the mobile<br />

application market?<br />

How can app developers minimize business risks?<br />

Which are the leading mobile application stores?


Table of Contents<br />

1 Introduction to mobile<br />

applications<br />

1.1 Background<br />

1.1.1 App stores simplify distribution for<br />

developers<br />

1.1.2 Explosion in the number of apps and<br />

app stores<br />

1.1.3 Mobile Internet and the rise of the<br />

mobile app market<br />

1.2 Mobile application platforms<br />

1.3 Mobile application categories<br />

1.3.1 Gaming<br />

1.3.2 Entertainment<br />

1.3.3 Books<br />

1.3.4 Communication<br />

1.3.5 Utility and productivity<br />

1.3.6 Mobile enterprise<br />

1.3.7 Other categories<br />

1.4 App usage<br />

1.5 App discovery<br />

1.5.1 Third party app directories<br />

1.6 App store network effects<br />

2 The mobile application<br />

ecosystem<br />

2.1 Mobile handset market overview<br />

2.2 The smartphone market<br />

2.2.1 Focus shift from devices to mobile app<br />

ecosystems<br />

2.2.2 Touch input and advanced sensor<br />

technologies drives app innovation<br />

2.2.3 Apps and improved hardware enables<br />

smartphones to challenge PCs<br />

2.3 Mobile application platforms<br />

2.3.1 Android<br />

2.3.2 BlackBerry OS<br />

2.3.3 iOS<br />

2.3.4 Symbian<br />

2.3.5 WebOS<br />

2.3.6 Windows Phone 7<br />

2.3.7 Brew MP<br />

2.3.8 Samsung’s Bada platform<br />

2.3.9 Java for Mobile Devices<br />

2.4 Mobile network operators and the<br />

app market<br />

2.4.1 App markets reduce operators to<br />

broadband providers<br />

2.4.2 Operators launch their own app stores<br />

to reclaim control<br />

2.4.3 The Wholesale Application Community<br />

2.4.4 Operator opportunities in the mobile<br />

app market<br />

2.5 Mobile app developers and<br />

publishers<br />

2.5.1 Gaming is the most popular app<br />

category for developers<br />

2.5.2 iOS and Android are the most popular<br />

platforms for developers<br />

2.6 In-app ad solution providers and ad<br />

networks<br />

2.6.1 Digital ad networks and in-app ad<br />

solutions<br />

2.6.2 Apple – iAd<br />

2.6.3 RIM – BlackBerry Advertising Service<br />

2.6.4 Microsoft – Windows Phone 7/Microsoft<br />

Advertising<br />

2.6.5 Nokia – Ovi Store in-app advertising<br />

add-on<br />

2.6.6 Google – Admob<br />

3 Mobile application stores<br />

3.1 OS developer application stores<br />

3.1.1 Android Market<br />

3.1.2 Windows Phone Marketplace<br />

3.2 Device vendor application stores<br />

3.2.1 Apple App Store<br />

3.2.2 BlackBerry App World<br />

3.2.3 HP App Catalog<br />

3.2.4 Nokia Ovi Store<br />

3.2.5 Samsung Apps<br />

3.2.6 LG World<br />

3.3 Operator application stores<br />

3.3.1 AT&T AppCenter<br />

3.3.2 Bharti Airtel App Central<br />

3.3.3 China Mobile Mmarket<br />

3.3.4 Orange App Shop<br />

3.3.5 Verizon V CAST Apps<br />

3.3.6 Vodafone 360 Shop<br />

3.4 Third party application stores<br />

3.4.1 GetJar<br />

3.4.2 Amazon Appstore for Android<br />

3.4.3 Appitalism<br />

3.5 White label application stores<br />

3.5.1 Appia<br />

3.5.2 Huawei’s WAC enabled Digital<br />

Shopping Mall Solution<br />

3.5.3 Ericsson eStore<br />

4 Mobile app store economics<br />

4.1 Application store revenues<br />

4.1.1 Revenue share models<br />

4.1.2 Mobile app marketing<br />

4.2 App store billing solutions<br />

4.3 Mobile app pricing<br />

4.4 Mobile application monetisation<br />

strategies and business models<br />

4.4.1 Paid apps<br />

4.4.2 Freemium – one free limited version<br />

combined with one premium version<br />

4.4.3 In-app payments<br />

4.4.4 Subscriptions<br />

4.4.5 Ad-funded<br />

4.4.6 Marketing and brand apps<br />

4.4.7 New channel to market<br />

4.4.8 Bundle component<br />

4.4.9 Attract a large user base and building<br />

communities<br />

4.4.10 Free apps<br />

4.4.11 Mobile app business model trends<br />

4.4.12 Choosing monetisation strategy<br />

4.4.13 Cross platform development and multi<br />

monetisation strategies reduce risks<br />

5 Market forecasts and<br />

conclusions<br />

5.1 Market forecasts by mobile platform<br />

5.1.1 Application download forecast by<br />

mobile operating system<br />

5.1.2 Direct revenues forecast by mobile<br />

operating system<br />

5.1.3 In-app advertising revenues forecast by<br />

mobile operating system<br />

5.2 Market forecasts by region<br />

5.2.1 Application download forecast by<br />

region<br />

5.2.2 Direct revenues forecast by region<br />

5.2.3 In-app advertising revenues forecast by<br />

region<br />

5.3 Conclusions and strategic advice<br />

5.3.1 App stores is about successful<br />

ecosystems<br />

5.3.2 E-commerce, content and<br />

subscriptions – opportunities with<br />

impediments<br />

5.3.3 Business models and monetisation<br />

5.3.4 Mobile platforms and cross platform<br />

development<br />

5.3.5 The mobile web, HTML5 web apps and<br />

native apps<br />

6 Industry players<br />

6.1 Device vendors<br />

6.1.1 Apple<br />

6.1.2 Nokia<br />

6.1.3 Research In Motion<br />

6.1.4 Samsung Electronics<br />

6.2 Mobile operating system vendors<br />

6.2.1 Google<br />

6.2.2 Microsoft<br />

6.3 Mobile operators<br />

6.3.1 AT&T<br />

6.3.2 Verizon Wireless<br />

6.3.3 Vodafone<br />

6.3.4 China Mobile<br />

6.4 Developers and publishers<br />

6.4.1 Electronic Arts - EA Mobile and<br />

Chillingo<br />

6.4.2 Gameloft<br />

6.4.3 Rovio<br />

6.5 Third party in-app advertising<br />

solution providers<br />

6.5.1 Smaato<br />

6.5.2 Amobee<br />

6.5.3 Tapjoy<br />

Glossary


VAS Research Series<br />

Mobile Money in<br />

Emerging Markets<br />

Mobile Money in Emerging Markets is a comprehensive<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest developments on<br />

the mobile money and remittances markets.<br />

This strategic research report from <strong>Berg</strong> <strong>Insight</strong> provides you<br />

with 130+ pages of unique business intelligence and expert<br />

commentary on which to base your business decisions.<br />

This report will allow you to:<br />

Profit from 30 new executive interviews with market leading<br />

companies.<br />

Learn from valuable insights about successful mobile money<br />

deployments.<br />

Identify the leading mobile money platform providers in<br />

emerging markets.<br />

Understand the ecosystem required for providing financial<br />

transaction services in the mobile environment.<br />

Realize how mobile phones are being used for subscriberto-subscriber<br />

financial transactions within and between<br />

countries.<br />

Predict the number of users and transaction volumes for<br />

mobile money services until 2015.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s VAS Research Series<br />

What are the key business opportunities for value added services in the mobile<br />

industry? <strong>Berg</strong> <strong>Insight</strong>’s VAS Research Series is a unique series of analytical<br />

industry reports. Each title offers detailed analysis of current hot topics such<br />

as mobile messaging, mobile Internet, mobile TV, mobile broadband or mobile<br />

marketing. We put mobile VAS into a greater perspective, offering a realistic<br />

approach and accurate forecasts.<br />

www.berginsight.com


VAS Research Series<br />

Active users of mobile money services<br />

to double in the next 2 years<br />

Mobile financial services are causing a significant transformation in<br />

the financial services, payments and international remittance industries.<br />

The mobile phone is changing how customers conduct their<br />

financial activities, leading to an extended reach and increased operational<br />

efficiency among financial service providers in emerging<br />

markets. In the longer term mobile money services are facilitating<br />

the increasing share of digital transactions in emerging markets,<br />

where cash transactions still dominate. A growing share of international<br />

remittances is being electronically disbursed into mobile<br />

money accounts. Mobile phones are also being increasingly used<br />

to send remittances.<br />

<strong>Berg</strong> <strong>Insight</strong> defines a mobile money subscriber as a person or<br />

business who has registered for a mobile money account. Mobile<br />

money accounts comprise accounts from which transactions such<br />

as person to person transfers or bill payments can be made using a<br />

mobile phone. <strong>Berg</strong> <strong>Insight</strong>’s definition of a mobile money account<br />

does not encompass services limited to information services and<br />

simple transactions such as airtime top-ups and transfers between<br />

own accounts. It does not include services that use mobile operator<br />

billing as a payment source.<br />

Mobile money services are increasing the availability and access<br />

to financial services for lower-income segments of the population,<br />

which previously has not been possible to serve profitably. The<br />

mobile phone will be the first digital banking channel for a majority<br />

of the unbanked populations in many emerging economies. The<br />

number of live mobile money deployments has grown at an explosive<br />

rate over the past two years. <strong>Berg</strong> <strong>Insight</strong>’s in-depth study of<br />

the industry indicates that there are currently around 300 mobile<br />

money deployments live in emerging markets. Over half of these<br />

have been launched by mobile operators and third party service<br />

providers. The remaining deployments have been launched by financial<br />

institutions.<br />

The number of mobile money subscribers in emerging markets is<br />

forecasted to grow from 133 million users in 2010 at a compound<br />

annual growth rate (CAGR) of 40 percent to reach 709 million users<br />

in 2015. The total value of mobile money transactions will simultaneously<br />

grow at a CAGR of 54 percent from US$ 25 billion in 2010<br />

Million users<br />

800<br />

700<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

Active users of mobile money services (Emerging markets 2010–2015)<br />

Year<br />

to US$ 215 billion in 2015. Asia-Pacific is expected to become the<br />

most important regional market, accounting for more than half of<br />

the total user base.<br />

The global remittance market has grown rapidly over the past decade.<br />

In 2010 remittances through formal channels amounted to US$<br />

440 billion, of which, developing countries received an estimated<br />

US$ 325 billion. The vast majority of these transactions are still cashto-cash<br />

transactions, but the share of digital transactions is steadily<br />

increasing. Driven by the development of mobile money systems in<br />

emerging markets, <strong>Berg</strong> <strong>Insight</strong> estimates that US$16 billion worth<br />

of international money transfers will be received with mobile phones<br />

in 2015. Similarly, US$ 5.5 billion worth of international remittances<br />

will be sent using mobile phones in 2015.<br />

International airtime transfer is a rapidly growing niche within the<br />

overall international value transfer market. It is a low margin high<br />

volume business, with a small number of leading service providers<br />

in the field. There are a large number of smaller vendors who have<br />

joined the airtime transfer market more recently. <strong>Berg</strong> <strong>Insight</strong> estimates<br />

that the total value of international airtime transfer will grow<br />

from US$ 130 million in 2010 at a CAGR of 67 percent to reach US$<br />

1.67 billion in 2015.<br />

Many new companies have entered the mobile money industry as<br />

technology vendors in the past year, including the likes of Ericsson,<br />

SAP and Gemalto. The competitive landscape is intense with<br />

around 70 vendors competing in the industry, of which many need<br />

to reach a critical mass of deployments over the next two years in<br />

order to stay in business in the longer term. Yet, the level of consolidation<br />

among technology vendors serving MNOs and third party<br />

service providers is high, with around 75 percent of mobile money<br />

deployments running on the platforms of five leading vendors. In<br />

contrast, the landscape among vendors providing financial institutions<br />

is highly fragmented with no clear leaders.<br />

This report answers the following questions:<br />

How can mobile technology be applied to extend the<br />

reach of today’s online banks?<br />

What is the true potential for providing mobile financial<br />

services to the unbanked population?<br />

What are the key challenges, critical success factors and<br />

best practices for operating mobile money services?<br />

Who are the most important players to watch in the<br />

mobile banking and payments industry?<br />

Who are the leading mobile money platform providers in<br />

emerging markets?<br />

What are the business opportunities for mobile<br />

operators in international money transfer?<br />

What are the strategies of the leading providers of<br />

international airtime transfers?<br />

How are financial institutions responding to the entry<br />

of mobile network operators in the financial services<br />

industry?


Table of Contents<br />

1 Mobile money in<br />

emerging markets<br />

1.1 Introduction<br />

1.1.1 The mobile as an enabler of branchless<br />

banking and electronic payments<br />

1.1.2 Overview of mobile money service<br />

providers<br />

1.1.3 Developments in the mobile money<br />

field<br />

1.2 Overview of mobile money services<br />

1.3 Evolving to a mature system<br />

1.4 Mobile money fundamentals and<br />

success factors<br />

1.4.1 Network effects in mobile money<br />

systems<br />

1.4.2 Internal priority<br />

1.4.3 Reaching the target customer groups<br />

1.4.4 Building, incentivising and managing<br />

agent networks<br />

1.5 Case studies<br />

1.5.1 Mobile money in South Africa<br />

1.5.2 The evolving mobile money ecosystem<br />

in Kenya<br />

2 The mobile financial<br />

services industry<br />

2.1 Technology vendors<br />

2.1.1 The changing competitive landscape<br />

2.1.2 General development trends<br />

2.2 Mobile money service providers<br />

2.2.1 Mobile network operators<br />

2.2.2 Financial institutions<br />

2.2.3 Third party service providers<br />

3 International mobile<br />

remittances<br />

3.1 Global money transfer flows<br />

3.2 Cost of remitting money<br />

3.3 Success factors for remittance<br />

services<br />

3.4 The consumer-to-consumer<br />

remittance market<br />

3.5 Remittance methods<br />

3.5.1 Structure of a remittance operation<br />

3.5.2 Agent networks<br />

3.5.3 Informal value transfer systems<br />

3.5.4 Regulations<br />

3.5.5 Funds capture interfaces and payment<br />

instruments<br />

3.5.6 Funds disbursement<br />

3.6 Mobile remittance players<br />

3.6.1 Money transfer offices<br />

3.6.2 Mobile network operators<br />

3.6.3 Platform providers and third parties<br />

3.6.4 Financial institutions and payment<br />

processing networks<br />

3.6.5 International airtime transfer companies<br />

3.7 Case studies<br />

3.7.1 Western Union is putting its bets on<br />

mobile money transfers<br />

3.7.2 MoneyGram offers international mobile<br />

money transfers<br />

3.7.3 MasterCard’s MoneySend service goes<br />

mobile<br />

3.7.4 Remittances to M-PESA wallets in<br />

Kenya<br />

4 Forecasts and conclusions<br />

4.1 Mobile money in emerging markets<br />

4.1.1 Deployments launched by service<br />

provider<br />

4.1.2 Deployments launched by region<br />

4.2 Mobile money forecasts and analysis<br />

by region<br />

4.2.1 Africa<br />

4.2.2 Asia<br />

4.2.3 Latin America<br />

4.2.4 Eastern Europe and Western Asia<br />

4.3 Mobile money technology vendors<br />

4.3.1 The changing competitive landscape<br />

4.3.2 Technology platform development<br />

trends<br />

4.4 Mobile money service providers<br />

4.4.1 Current focus and execution of services<br />

4.4.2 Service provider development trends<br />

4.5 Mobile remittances<br />

4.5.1 Sending and receiving remittances with<br />

a mobile phone<br />

4.5.2 Forecasts and analysis<br />

4.5.3 Mobile remittance development trends<br />

4.6 International airtime transfer<br />

4.6.1 Service provider market shares<br />

4.6.2 Forecasts and analysis<br />

5 Company profiles<br />

5.1 Mobile money platform providers<br />

5.1.1 Comviva<br />

5.1.2 Fundamo<br />

5.1.3 Gemalto<br />

5.1.4 Halcom<br />

5.1.5 MasterCard<br />

5.1.6 M-Com (Fiserv)<br />

5.1.7 Monitise<br />

5.1.8 MoreMagic<br />

5.1.9 ProgressSoft<br />

5.1.10 S1<br />

5.1.11 Sybase 365 (SAP)<br />

5.1.12 Utiba<br />

5.1.13 YellowPepper<br />

5.1.14 ZTE<br />

5.2 Mobile value transfer providers<br />

5.2.1 eServGlobal and BICS<br />

5.2.2 Ericsson<br />

5.2.3 Ezetop<br />

5.2.4 Luup<br />

5.2.5 MoneyGram<br />

5.2.6 TransferTo<br />

5.2.7 Visa<br />

5.2.8 Western Union<br />

Glossary


NGT Research Series<br />

Small Cells and<br />

Wi-Fi Offloading<br />

Small Cells and Wi-Fi Offloading is a comprehensive report<br />

from <strong>Berg</strong> <strong>Insight</strong> analysing the emerging global market for<br />

small cell base stations and Wi-Fi offloading solutions.<br />

This strategic research report in the NGT Research Series<br />

from <strong>Berg</strong> <strong>Insight</strong> provides you with 140 pages of unique<br />

business intelligence, including 5-year industry forecasts<br />

and expert commentary on which to base your business<br />

decisions.<br />

This report will allow you to:<br />

Understand the opportunities and challenges for small cell<br />

base stations.<br />

Comprehend how femtocell technologies affect mobile<br />

networks.<br />

Identify key players on the global small cell market.<br />

Predict future business models for femtocell services.<br />

Anticipate the timing of mass-deployments of small cell<br />

devices and services.<br />

Realize the importance of integrated Wi-Fi offloading<br />

solutions.<br />

Profit from valuable insights from the most successful<br />

offerings on the market.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s NGT Research Series<br />

How will the mobile market evolve in the future? <strong>Berg</strong> <strong>Insight</strong>’s Next Generation<br />

Technologies Research Series examines the latest advances in mobile technology<br />

and the new business opportunities they create. Each title analyses development<br />

roadmaps, potential applications and addressable market segments for a<br />

technology. Topics currently covered by the series include smartphones, small<br />

cells, mobile broadband and short-range handset connectivity.<br />

www.berginsight.com


NGT Research Series<br />

Will small cell solutions solve<br />

operators’ future coverage and<br />

capacity challenges?<br />

Mobile operators are experiencing fast growth in mobile data and<br />

signalling traffic as customers increasingly use mobile computing devices.<br />

Adoption of smartphones is rising and more subscribers use<br />

multiple connected devices such as PCs and tablets. Total mobile<br />

data traffic in cellular networks have more than doubled every year<br />

since 2007 and is forecasted to grow at a compound annual growth<br />

rate (CAGR) of more than 60 percent from 2011 until 2016. Subscribers<br />

are also becoming more reliant on mobile phones as their primary<br />

or only device for voice communication and therefore expect ubiquitous<br />

network coverage.<br />

In order to meet the rising demand, operators need to use a combination<br />

of approaches. These include improving the mobile macro<br />

layer by using more spectrum and increasingly advanced radio air<br />

interfaces with higher spectral efficiency, making the macro layer<br />

denser by installing more base stations in traffic hotspots, as well<br />

as introducing heterogeneous networks (HetNets). HetNets are composed<br />

of multiple radio access technologies, architectures, backhaul<br />

solutions and base stations of varying transmission power. Examples<br />

of low power nodes include Remote Radio Units (RRU) and Distributed<br />

Antenna Systems (DAS), as well as small autonomous base stations<br />

including microcells, picocells and femtocells. Making use of<br />

Wi-Fi access points in unlicensed spectrum is also an increasingly<br />

attractive solution as new standardisation and interoperability efforts<br />

aim to make the network selection and user identification process<br />

seamless. HetNets will become increasingly important in the future<br />

as spectrum is a scarce resource and densification of the macro<br />

network gets more costly as site acquisition in metropolitan areas<br />

becomes more difficult. Several operators have already deployed<br />

microcells, picocells, femtocells and integrated carrier Wi-Fi network<br />

solutions. The first commercial integrated HetNets will be deployed<br />

starting in 2013.<br />

A microcell is a small cellular base station that covers a limited area<br />

such as a shopping mall or a train station. Microcells are often deployed<br />

to add network coverage and capacity in areas with dense phone usage,<br />

or temporarily during various events when the need for capacity is<br />

known in advance. Output power is usually a few watts and the radius<br />

of the coverage area ranges between 100 metres and 300 metres.<br />

€ billion<br />

Million units<br />

12<br />

15<br />

12<br />

9<br />

6<br />

3<br />

0<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

2010<br />

2010<br />

Europe<br />

North America<br />

2011<br />

2011<br />

2012<br />

2012<br />

2013<br />

2013<br />

2014<br />

Installed base of small cell base stations, million units (World 2010–2016)<br />

2014<br />

2015<br />

2015<br />

2016<br />

2016<br />

Year<br />

Year<br />

Similar to microcells, picocells add coverage and capacity to limited<br />

geographical areas such as offices or public venues. These cells are<br />

often found inside buildings where coverage is poor or where there<br />

is a dense population of users. There is no clear distinction between<br />

microcells and picocells, though picocells are usually smaller, have<br />

lower output power and may support fewer simultaneous users. Picocells<br />

and microcells are deployed by the operator and are part of<br />

the RAN.<br />

Femtocells are low power cellular access points with about 20–100<br />

mW output power, intended to extend coverage and offload the macro<br />

network in home and small office environments, supporting four to<br />

eight simultaneous users. Femtocells have been developed to work<br />

with a range of different cellular standards including CDMA, GSM,<br />

HSPA and LTE. Femtocells are self-installing plug-and-play devices<br />

deployed by users, similar to Wi-Fi access points. Femtocells use<br />

IP broadband connections for backhaul of voice and data. However,<br />

in contrast to Wi-Fi access points, femtocells are mobile infrastructure<br />

components that operate in licensed spectrum. Mobile operators<br />

usually install femtocell gateways that act as concentrators for<br />

integrating a large number of femtocells with the core network. About<br />

40 mobile operators in 24 countries now offer femtocells to consumer<br />

and enterprise customers. However, the deployments have mainly<br />

been driven by large operator groups while smaller operators have<br />

struggled to justify the high costs of building and integrating a femtocell<br />

core network.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that mobile operators globally had deployed<br />

2.2 million small cell cellular base stations at the end of 2011, including<br />

more than 2 million femtocells. Mobile operators in North<br />

America, Japan and South Korea are now stepping up deployments<br />

of small cell cellular base stations to increase mobile network data<br />

capacity. Operators in other countries will gradually follow as data<br />

demand increases in hotspot areas. <strong>Berg</strong> <strong>Insight</strong> forecasts that the<br />

installed base of small cell cellular base stations will increase to 14<br />

million units in 2016, driven by femtocells that will reach 10 million<br />

units in the same year.<br />

This report answers the following questions:<br />

What is the current status of the femtocell market?<br />

How will femtocell services evolve in the future?<br />

What are the femtocell strategies of the leading mobile<br />

operators?<br />

Which companies are active in the small cell market?<br />

Which operators have introduced Wi-Fi offloading<br />

solutions?<br />

How will small cell base station and Wi-Fi technologies<br />

evolve in the future?<br />

How will North America, Europe and Asia-Pacific compare<br />

in terms of small cell deployments?


Table of Contents<br />

1 Introduction to small cells and<br />

Wi-Fi offloading<br />

1.1 Introduction<br />

1.1.1 Continued growth in mobile<br />

subscriptions and handset sales<br />

1.1.2 Broadband services drive fixed-line<br />

connection growth<br />

1.1.3 Fixed-mobile convergence and fixedmobile<br />

substitution market trends<br />

1.1.4 Global mobile data traffic grows along<br />

with increasing smartphone adoption<br />

1.2 Communication network technology<br />

evolution<br />

1.2.1 Wireless technologies<br />

1.2.2 Fixed-line broadband technologies<br />

1.3 Mobile network capacity improvement<br />

strategies<br />

1.3.1 Macro layer improvements<br />

1.3.2 Macro layer densification<br />

1.3.3 Heterogeneous networks (HetNets)<br />

1.3.4 Femtocells<br />

1.3.5 Wi-Fi network integration and mobile<br />

data offloading<br />

2 Small cell and Wi-Fi technology<br />

2.1 Mobile network standards and<br />

architectures<br />

2.1.1 GSM/GPRS/EDGE networks<br />

2.1.2 UMTS/HSPA networks<br />

2.1.3 LTE networks<br />

2.1.4 Heterogeneous networks<br />

2.1.5 Microcells<br />

2.1.6 Picocells<br />

2.1.7 Femtocells<br />

2.2 Femtocell architectures in 3GPP and<br />

3GPP2 networks<br />

2.2.1 3GPP UMTS femtocell specifications<br />

and interfaces<br />

2.2.2 IMS based femtocell architecture<br />

2.2.3 3GPP LTE femtocell architectures<br />

2.3 Wi-Fi and cellular network integration<br />

2.3.1 UMA/GAN<br />

2.3.2 3GPP Wireless LAN Interworking<br />

(I-WLAN)<br />

2.3.3 Hotspot 2.0 and Next Generation<br />

Hotspot<br />

3 Small cell deployments<br />

3.1 Small cells and femtocells from an<br />

operator perspective<br />

3.1.1 The femtocell business case for mobile<br />

operators<br />

3.1.2 Operator strategies<br />

3.2 Small cell trials and commercial<br />

offerings<br />

3.2.1 AT&T<br />

3.2.2 China Unicom<br />

3.2.3 Cosmote<br />

3.2.4 Everything Everywhere<br />

3.2.5 Hutchison 3G<br />

3.2.6 KDDI au<br />

3.2.7 MegaFon<br />

3.2.8 Mobile TeleSystems<br />

3.2.9 Network Norway<br />

3.2.10 NTT DoCoMo<br />

3.2.11 Optimus<br />

3.2.12 Orange Group<br />

3.2.13 SFR<br />

3.2.14 SingTel Group<br />

3.2.15 SK Telecom<br />

3.2.16 SoftBank<br />

3.2.17 Sprint Nextel<br />

3.2.18 StarHub<br />

3.2.19 Telefónica<br />

3.2.20 Telenor<br />

3.2.21 Verizon Wireless<br />

3.2.22 Vodafone<br />

4 Wi-Fi network deployments<br />

4.1 Wi-Fi network operators, aggregators<br />

and brokers<br />

4.1.1 Boingo Wireless<br />

4.1.2 The Cloud<br />

4.1.3 Comfone<br />

4.1.4 Fon<br />

4.1.5 iPass<br />

4.1.6 Trustive<br />

4.2 Carrier Wi-Fi network deployments<br />

and services<br />

4.2.1 AT&T<br />

4.2.2 China Mobile<br />

4.2.3 Deutsche Telekom<br />

4.2.4 Eircom<br />

4.2.5 Free Mobile<br />

4.2.6 KDDI au<br />

4.2.7 KPN<br />

4.2.8 KT Corporation<br />

4.2.9 Swisscom<br />

4.2.10 Telefónica O2 UK<br />

4.2.11 TeliaSonera<br />

5 Vendor profiles and strategies<br />

5.1 The small cell value chain<br />

5.2 End-to-end small cell system vendors<br />

and integrators<br />

5.2.1 Alcatel-Lucent<br />

5.2.2 Cisco Systems<br />

5.2.3 Contela<br />

5.2.4 Ericsson<br />

5.2.5 Fujitsu<br />

5.2.6 Hitachi<br />

5.2.7 Huawei<br />

5.2.8 NEC<br />

5.2.9 Nokia Siemens Networks<br />

5.2.10 Samsung Electronics<br />

5.3 Small cell and residential gateway<br />

vendors<br />

5.3.1 Airspan<br />

5.3.2 Airvana<br />

5.3.3 HSL<br />

5.3.4 Ip.access<br />

5.3.5 Minieum Networks<br />

5.3.6 SpiderCloud Wireless<br />

5.3.7 TEKTELIC Communications<br />

5.3.8 UbeeAirWalk<br />

5.3.9 Ubiquisys<br />

5.3.10 ADB Group<br />

5.3.11 Alpha Networks<br />

5.3.12 Gemtek<br />

5.3.13 Netgear<br />

5.3.14 Sagemcom<br />

5.3.15 SerComm<br />

5.3.16 Tecom<br />

5.4 Small cell chipset vendors<br />

5.4.1 Broadcom<br />

5.4.2 Freescale Semiconductor<br />

5.4.3 Mindspeed Technologies<br />

5.4.4 Qualcomm<br />

5.4.5 Texas Instruments<br />

5.5 Small cell software and network<br />

gateway vendors<br />

5.5.1 Acme Packet<br />

5.5.2 Aricent Group<br />

5.5.3 mimoOn<br />

5.5.4 Node-H<br />

5.5.5 Genband<br />

5.5.6 Radisys<br />

5.5.7 Taqua<br />

5.6 Wi-Fi data offloading solution vendors<br />

5.6.1 Aptilo Networks<br />

5.6.2 Birdstep<br />

5.6.3 Greenpacket<br />

5.6.4 Kineto Wireless<br />

5.6.5 Notava<br />

5.6.6 Smith Micro Software<br />

5.6.7 Stoke<br />

5.6.8 Syniverse<br />

5.6.9 WeFi<br />

5.7 Wi-Fi equipment vendors<br />

5.7.1 Alvarion<br />

5.7.2 Edgewater Wireless<br />

5.7.3 GoNet Systems<br />

5.7.4 Ruckus Wireless<br />

5.7.5 Strix Systems<br />

5.7.6 Ubiquiti Networks<br />

5.7.7 Vivato Technologies<br />

6 Market trends and forecasts<br />

6.1 Small cell market trends<br />

6.1.1 Moving from femtocell trials to small cell<br />

deployments<br />

6.1.2 HetNet and small cell adoption may<br />

lead to industry transformation<br />

6.1.3 Wi-Fi offloading is gaining acceptance<br />

among mobile operators<br />

6.2 Small cell market forecasts<br />

6.2.1 Small cell deployments in Asia Pacific<br />

6.2.2 Small cell deployments in Europe<br />

6.2.3 Small cell deployments in North<br />

America<br />

6.2.4 Small cell shipments worldwide<br />

Glossary


NGT Research Series<br />

Handset Connectivity<br />

Technologies<br />

Handset Connectivity Technologies is the third consecutive<br />

report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest trends on the<br />

worldwide market for GNSS, Bluetooth, WLAN and NFC<br />

technologies in mobile handsets.<br />

This report in the NGT Research Series from <strong>Berg</strong> <strong>Insight</strong><br />

provides you with 140 pages of unique business intelligence<br />

including 5-year industry forecasts and expert commentary<br />

on which to base your business decisions.<br />

This report will allow you to:<br />

Profit from numerous executive interviews with market<br />

leading companies.<br />

Learn about the strategies of the leading chipset and<br />

handset vendors.<br />

Identify the opportunities and challenges with integration<br />

of multiple connectivity technologies in mobile handsets.<br />

Realise the importance of Assisted-GNSS and hybrid<br />

location technologies.<br />

Comprehend how NFC technology in handsets can<br />

enable new services.<br />

Understand the drivers and barriers for industry-wide<br />

adoption of new technology.<br />

Predict future connectivity design trends and technology<br />

developments.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s NGT Research Series<br />

How will the mobile market evolve in the future? <strong>Berg</strong> <strong>Insight</strong>’s Next Generation<br />

Technologies Research Series examines the latest advances in mobile technology<br />

and the new business opportunities they create. Each title analyses development<br />

roadmaps, potential applications and addressable market segments for a technology.<br />

Topics currently covered by the series include smartphones, femtocells, mobile<br />

broad band and short-range handset connectivity.<br />

www.berginsight.com


NGT Research Series<br />

Popularity of smartphones boosts<br />

connectivity technology attach rates<br />

Global handset shipments grew 15 percent in 2011 to about 1.5 billion<br />

units, although the growth rate slowed down in Q4-2011 in the wake<br />

of the deteriorating macroeconomic conditions, especially in Europe.<br />

Global sales of featurephones were nearly flat, while smartphone shipments<br />

grew almost 60 percent to 470 million units in 2011. Penetration<br />

of smartphones is growing worldwide as handset vendors adopt<br />

smartphone operating systems in order to reduce development time<br />

and cost for new advanced handset models. Mobile operators have put<br />

their hopes on smartphones as drivers of data revenues and are willing<br />

to subsidise smartphones that drive adoption of postpaid subscriptions<br />

and data plans. Mobile subscribers also put more emphasis on the user<br />

experience and support of native apps and web services. There were<br />

4.7 billion mobile phones in use at the end of 2011, including 750 million<br />

smartphones. About 4.1 billion people, or nearly 60 percent of the<br />

world’s population, owned a mobile phone.<br />

The popularity of smartphones is driving attach rates of wireless connectivity<br />

technologies including Bluetooth, WLAN, NFC and GPS that<br />

enable new use cases for handsets. Bluetooth can be used to connect<br />

headsets, fitness and medical sensors or perform file transfers. WLAN<br />

can be used for Internet access, VoIP services or fast file and media<br />

transfer. Near Field Communication (NFC) is a standard for short-range<br />

wireless, point-to-point communication. NFC operates in the unlicensed<br />

13.56 MHz band over distances of about 10 centimetres. When deployed<br />

in mobile phones, NFC can be used for countless applications,<br />

ranging from information exchange and device pairing, to electronic<br />

ticketing and secure contactless payments. The most important driver<br />

for GPS integration in handsets today is arguably the interest in locationbased<br />

services (LBS), although emergency call location regulations are<br />

being introduced in more countries. In contrast to emergency call services<br />

relying on occasional push to fix positioning, consumer-oriented LBS<br />

pose new challenges. These services range from advanced turn-by-turn<br />

navigation services to local search, people tracking, friendfinders and<br />

social networking. Handsets thus need to support services that require<br />

both infrequent, fast push to fix updates in addition to continuous position<br />

updates – all whilst conserving battery life. The revised emergency<br />

call mandates in the US may well require approaches such as using<br />

improved hybrid location technologies in all handsets.<br />

GPS technology for handsets has matured, offering much better performance<br />

in terms of sensitivity, power consumption, size and price than<br />

€ billion<br />

%<br />

12<br />

100<br />

80<br />

60<br />

40<br />

20<br />

10<br />

8<br />

6<br />

4<br />

2<br />

Europe<br />

North America<br />

0 0<br />

2010 2010 2011 2011 2012 20122013<br />

20132014<br />

20142015<br />

2015 2016<br />

2016 Year<br />

Projected attach rate for handset connectivity technologies<br />

(World 2010 - 2016)<br />

Bluetooth<br />

GPS<br />

WLAN<br />

NFC<br />

Year<br />

was possible a few years ago. Support for other satellite systems such<br />

as GLONASS, Galileo and Compass will also be added over time. The<br />

first handsets with GPS/GLONASS receivers are already available. Using<br />

multiple satellite systems concurrently ensures additional visible satellites<br />

and incrementally better performance in urban canyons. However,<br />

in order to improve indoor performance, hybrid positioning systems<br />

are needed. Hybrid positioning systems can fuse data from sensors to<br />

provide input to position calculations. Examples include inertial sensors<br />

such as accelerometers and gyroscopes, as well as compasses and<br />

pressure sensors. In the near future, the main barrier is the low data<br />

accuracy and high drift obtained from low cost sensors, making dead<br />

reckoning for extended periods of time unfeasible. Periodic calibrations<br />

using signal measurements from cellular and WLAN networks can improve<br />

the system performance.<br />

Bluetooth is now a standard feature on most featurephone models<br />

and virtually all smartphones. In 2011, shipments of Bluetooth-enabled<br />

handsets reached 1.1 billion units and the Bluetooth attach rate grew<br />

to more than 73 percent across all handset segments. The attach rate<br />

for WLAN connectivity in the smartphone segment has grown from less<br />

than 6 percent in 2006 to about 95 percent in 2011. However, the attach<br />

rate for WLAN is still less than 5 percent in the featurephone segment.<br />

The attach rate for GPS in handsets across all air interface standards<br />

grew from 33 percent in 2010 to 38 percent in 2011. GPS connectivity<br />

has become a standard feature on most smartphone models except a<br />

few low cost GSM/WCDMA models. The GPS attach rate in the GSM/<br />

WCDMA smartphone segment increased from 90 percent in 2010 to<br />

about 95 percent in 2011. NFC may finally have reached a breakthrough<br />

as more than 40 NFC-enabled handset models were released by the<br />

end of 2011. At the beginning of March 2012, more than 100 models had<br />

been announced by nearly all leading vendors. <strong>Berg</strong> <strong>Insight</strong> estimates<br />

that sales of NFC-handsets reached about 30 million units in 2011, up<br />

from roughly 3 million in 2010.<br />

This report answers the following questions:<br />

When will NFC become a widespread handset connectivity<br />

technology?<br />

What is the roadmap for integration of WLAN in massmarket<br />

mobile phones?<br />

What is driving the adoption of GPS technology in GSM/<br />

WCDMA handsets?<br />

What are the benefits with Assisted-GPS, A-GNSS and<br />

hybrid location technologies?<br />

Which features are supported in the latest Bluetooth<br />

standard?<br />

Who are the leading developers of cellular and<br />

connectivity chipsets?<br />

Which connectivity technologies are being adopted by<br />

leading handset manufacturers?<br />

What impact will new technologies have on the wireless<br />

chipset value chain?<br />

How is the greater diversity of radios affecting wireless<br />

chipset and handset design?


Table of Contents<br />

1 Mobile handsets and<br />

smartphones<br />

1.1 Introduction<br />

1.2 Wireless communication technologies<br />

1.2.1 Cellular communication technologies<br />

1.2.2 Personal and local area networks<br />

1.2.3 Spectrum and interference<br />

1.3 Broadcast connectivity technologies<br />

1.3.1 Radio<br />

1.3.2 Mobile TV<br />

1.3.3 Global navigation satellite systems<br />

1.4 Connectivity technology<br />

integration in handsets<br />

1.4.1 Handset hardware and software<br />

platforms<br />

1.4.2 Horizontal and vertical integration of<br />

connectivity technologies<br />

1.5 Overview of handset segments<br />

1.5.1 The smartphone category is expanding<br />

across multiple price-tiers<br />

1.5.2 Best selling smartphones in 2011<br />

1.5.3 Handset form factors and input<br />

mechanisms<br />

1.5.4 Evolution of smartphone user interfaces<br />

1.6 Handset connectivity trends<br />

1.6.1 Wireless connectivity attach rates driven<br />

by higher smartphone sales<br />

1.6.2 Proliferation of GPS-enabled GSM/<br />

WCDMA handset models<br />

1.6.3 NFC is gradually gaining momentum<br />

2 Handset platform vendors<br />

2.1 The handset chipset industry<br />

2.1.1 Industry consolidation will continue<br />

2.1.2 Handset baseband vendors<br />

2.1.3 Connectivity chipset vendors<br />

2.1.4 Sensor IC vendors<br />

2.2 Cellular platform vendor profiles<br />

2.2.1 Broadcom<br />

2.2.2 Intel<br />

2.2.3 Marvell<br />

2.2.4 MediaTek<br />

2.2.5 MStar Semiconductor<br />

2.2.6 NVIDIA<br />

2.2.7 Qualcomm<br />

2.2.8 Renesas Mobile Corporation<br />

2.2.9 Spreadtrum Communications<br />

2.2.10 ST-Ericsson<br />

3 GNSS technologies<br />

3.1 Overview of global navigation<br />

satellite systems<br />

3.1.1 Global Positioning System (GPS)<br />

3.1.2 Galileo<br />

3.1.3 GLONASS<br />

3.1.4 Compass/Beidou 2<br />

3.2 Mobile location technologies and<br />

platforms<br />

3.2.1 Mobile location platforms<br />

3.2.2 Control plane and user plane location<br />

platforms<br />

3.2.3 A-GPS and A-GNSS<br />

3.2.4 Hybrid and mixed mode technologies<br />

3.3 GPS and GNSS chipsets for handsets<br />

3.3.1 Standalone receivers<br />

3.3.2 Host-based receivers<br />

3.3.3 Integrated receiver architectures<br />

3.3.4 Software-based receivers<br />

3.3.5 GNSS receivers for handsets<br />

3.4 GNSS chipset and software vendors<br />

3.4.1 GPS IC vendor market shares<br />

3.4.2 CellGuide<br />

3.4.3 SkyTraq<br />

3.4.4 u-blox<br />

4 Bluetooth, WLAN and NFC<br />

technologies<br />

4.1 Bluetooth technologies<br />

4.1.1 Bluetooth specifications<br />

4.1.2 Bluetooth applications and profiles<br />

4.2 Wireless LAN technologies<br />

4.2.1 IEEE 802.11 WLAN standards<br />

4.2.2 WLAN in mobile phones<br />

4.2.3 WLAN handset shipments trends<br />

4.2.4 WLAN chipset vendor market shares<br />

4.3 Near Field Communication<br />

technologies<br />

4.3.1 NFC Forum specifications<br />

4.3.2 NFC modes<br />

4.3.3 NFC solution architectures and<br />

chipsets<br />

4.3.4 NFC mobile payment trials and<br />

initiatives<br />

4.3.5 Overview of NFC-enabled handsets<br />

4.4 Connectivity chipset vendor profiles<br />

4.4.1 CSR<br />

4.4.2 Inside Secure<br />

4.4.3 Nanoradio<br />

4.4.4 NXP Semiconductors<br />

4.4.5 Redpine Signals<br />

4.4.6 Sony Corporation<br />

4.4.7 STMicroelectronics<br />

4.4.8 Texas Instruments<br />

5 Handset vendor profiles<br />

5.1 Handset market developments<br />

5.1.1 Smartphone ecosystem developments<br />

5.1.2 Handset vendor market shares<br />

5.2 Apple<br />

5.2.1 Device portfolio<br />

5.2.2 Handset shipments<br />

5.3 HTC<br />

5.3.1 Device portfolio<br />

5.3.2 Handset shipments<br />

5.4 Huawei<br />

5.4.1 Device portfolio<br />

5.4.2 Handset shipments<br />

5.5 LG Electronics<br />

5.5.1 Device portfolio<br />

5.5.2 Handset shipments<br />

5.6 Motorola Mobility<br />

5.6.1 Device portfolio<br />

5.6.2 Handset shipments<br />

5.7 Nokia<br />

5.7.1 Device portfolio<br />

5.7.2 Handset shipments<br />

5.8 RIM<br />

5.8.1 Device portfolio<br />

5.8.2 Handset shipments<br />

5.9 Samsung<br />

5.9.1 Device portfolio<br />

5.9.2 Handset shipments<br />

5.10 Sony Mobile Communications<br />

5.10.1 Device portfolio<br />

5.10.2 Handset shipments<br />

5.11 ZTE<br />

5.11.1 Device portfolio<br />

5.11.2 Handset shipments<br />

5.12 Second tier handset vendors<br />

5.12.1 Acer<br />

5.12.2 Dell<br />

5.12.3 Fujitsu Toshiba Mobile<br />

Communications<br />

5.12.4 Kyocera Sanyo Telecom<br />

5.12.5 Lenovo Mobile Communications<br />

5.12.6 Micromax Informatics<br />

5.12.7 NEC Casio Mobile Communications<br />

5.12.8 Panasonic Mobile Communications<br />

5.12.9 Pantech<br />

5.12.10 Sharp<br />

5.12.11 TCL Communication<br />

6 Market trends and forecasts<br />

6.1 Market trends<br />

6.1.1 Rising adoption of smartphones<br />

continues to reshape the mobile<br />

industry<br />

6.1.2 Changing demands drives consolidation<br />

in the wireless chipset industry<br />

6.1.3 Cost requirements favour development<br />

of integrated chipsets<br />

6.1.4 Hybrid location technologies drive<br />

performance improvements in handsets<br />

6.2 Handset shipment forecasts<br />

6.2.1 Handset shipment forecasts by region<br />

and primary access technology<br />

6.2.2 Handset shipment forecasts by category<br />

and price segment<br />

6.2.3 GNSS-enabled GSM/WCDMA/LTE<br />

handset shipment forecasts by segment<br />

6.2.4 GNSS handset shipment forecasts by<br />

geographical region<br />

6.2.5 WLAN-enabled handset shipment<br />

forecasts<br />

6.2.6 NFC-enabled handset shipment<br />

forecasts<br />

6.3 Connectivity chipset shipments<br />

and revenue forecasts<br />

6.3.1 GNSS receiver chipset revenue<br />

forecasts<br />

6.3.2 Bluetooth, WLAN and NFC chipset<br />

revenue forecasts<br />

Glossary


NGT Research Series<br />

The Mobile Broadband<br />

Connectivity Market<br />

The Mobile Broadband Connectivity Market is the sixth<br />

consecutive yearly report from <strong>Berg</strong> <strong>Insight</strong> analysing the<br />

rise of mobile broadband for connected PCs and tablets in<br />

Europe and North America.<br />

This 170 page strategic research report provides you with<br />

unique business intelligence and expert commentary on<br />

which to base your business decisions.<br />

This report will allow you to:<br />

Understand the dynamics of the European and North<br />

American mobile broadband connectivity market.<br />

Gain access to all the latest data and statistics about this<br />

market.<br />

Learn about the mobile broadband strategies of leading<br />

telecom operator groups.<br />

Identify the key success factors for launching HSPA/LTE<br />

broadband on the consumer market.<br />

Evaluate the impact of HSPA+ and LTE technology in<br />

the mobile broadband market.<br />

Anticipate the timing for mass-market availability of<br />

embedded HSPA/LTE modems in notebook PCs.<br />

Profit from valuable insights about the most successful<br />

business and technology propositions on the market.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s NGT Research Series<br />

How will the mobile market evolve in the future? <strong>Berg</strong> <strong>Insight</strong>’s Next Generation<br />

Technologies Research Series examines the latest advances in mobile technology<br />

and the new business opportunities they create. Each title analyses development<br />

roadmaps, potential applications and addressable market segments for a technology.<br />

Topics currently covered by the series include smartphones, femtocells, mobile<br />

broad band and short-range handset connectivity.<br />

www.berginsight.com


NGT Research Series<br />

One in five broadband connections<br />

in Europe is now mobile and growth<br />

in North America is set to accelerate<br />

Mobile broadband based on HSPA/LTE and other mobile communication<br />

standards has taken off as an important technology for connecting<br />

mobile PCs and tablets to the Internet. The evolution is led by Europe<br />

where HSPA now accounts for 20.6 percent of the total number of<br />

broadband connections, compared to 13.2 percent in North America.<br />

The concept that was first launched as an exclusive business service<br />

is now a mass-market consumer product sold on an intensively competitive<br />

market. Consumers are utilizing their mobile broadband connections<br />

extensively, pushing the networks to their capacity limits. In<br />

Europe the majority of data traffic on mobile networks is generated by<br />

notebook PC users that surf the Internet. Fair use policies must be implemented<br />

to ensure network availability and pricing must be predictable.<br />

International roaming is still largely hindered by prohibitive pricing,<br />

making services utterly unattractive to use abroad.<br />

Mobile broadband terminals are available in different forms and shapes.<br />

Four main types have emerged to satisfy different needs – PC-cards,<br />

USB modems, embedded modules and gateways. <strong>Berg</strong> <strong>Insight</strong> estimates<br />

the total global number of shipped external mobile broadband<br />

devices in 2010 to 92.7 million, with Europe and North America accounting<br />

for 27.4 million units and 8.5 million units respectively. In addition,<br />

shipments of embedded modules reached an estimated 9.5 million<br />

units. Expectations on embedded solutions for mobile PCs have<br />

been high during the past years, but the attach rate is still relatively low<br />

at 4.7 percent in 2010. The European market for external mobile broadband<br />

modems grew by 13 percent in 2010. Growth is forecasted to continue<br />

with shipments reaching 60 million units in 2016, fuelled by strong<br />

demand for mobility in notebook PCs. Also the North American device<br />

market will experience a rapid growth to reach 25 million shipments in<br />

2016. The device ASP in Europe has fallen steeply over the past years<br />

and reached € 31 in 2010. The North American device market is characterized<br />

by a larger mix of mid-range and high-end products, whereby<br />

the ASP remained as high as US$ 87 in 2010. <strong>Berg</strong> <strong>Insight</strong> predicts that<br />

the ASP decline rate will slow down significantly in Europe during the<br />

next few years, whereas in North America the ASP will even increase in<br />

2011. This is primarily due to a growing share of HSPA+ and LTE modems<br />

and mobile hotspots in the product mix. The EU 23+2 external<br />

device market generated an estimated € 856 million in 2010 while the<br />

North American market generated estimated revenues of € 522 million.<br />

€ billion<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

2010<br />

Europe<br />

North America<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

Mobile broadband connectivity revenues forecast<br />

(Europe/North America 2010–2016)<br />

2016<br />

Year<br />

The European mobile broadband market continues to grow rapidly,<br />

with demand fuelled by declining prices, improved user experience,<br />

massive marketing campaigns and new device categories. <strong>Berg</strong> <strong>Insight</strong><br />

estimates that the total number of mobile broadband subscribers in EU<br />

23+2 grew by 33 percent to reach 33.9 million in 2010, while the estimated<br />

operator revenues reached € 5.9 billion. The European mobile<br />

broadband market is expected to grow at a compound annual growth<br />

rate (CAGR) of 12.4 percent to reach € 11.9 billion in 2016. This revenue<br />

growth is driven by strong year-on-year net additions to the subscriber<br />

base, which is projected to reach 96 million by 2016. Today, a majority<br />

of the users subscribe to data bundles for 12 or 24 months, but as the<br />

market matures a majority of new subscribers will only be occasional<br />

users generating lower network ARPU.<br />

<strong>Berg</strong> <strong>Insight</strong> estimates that the number of mobile broadband subscribers<br />

in North America reached 14.6 million by the end of 2010. The subscriber<br />

base is forecasted to grow at a CAGR of 25.8 percent to reach<br />

58 million subscribers in 2016. The estimated service revenues were<br />

about US$ 8.3 billion in 2010 and are expected to grow at a CAGR rate<br />

of 12.4 percent to reach US$ 16.6 billion by 2016. The growth in North<br />

America is currently accelerating primarily due to the increasing uptake<br />

of tablet data plans and the introduction of LTE.<br />

Huawei has established itself as the world’s largest supplier of mobile<br />

broadband terminals holding a market share of 49 percent and has a<br />

particularly strong foothold in Europe. ZTE is the second largest vendor<br />

with clear margins capturing a market share of 31 percent. In North<br />

America, the local vendors Sierra Wireless and Novatel Wireless still<br />

hold strong positions. A vast majority of the external modems shipped<br />

are USB modems, but mobile hotspots are gaining in popularity. Two<br />

of the largest telecom vendors – Ericsson and Qualcomm – entered the<br />

market for embedded solutions in 2008 and have managed to sign contracts<br />

with many of the major notebook vendors. The two companies<br />

captured a market share of 83 percent together on this market in 2010.<br />

This report answers the following questions:<br />

What are the key drivers behind the adoption of mobile<br />

broadband connectivity?<br />

Which markets have the highest penetration rates and<br />

which are lagging behind?<br />

Who are the leading global providers of mobile broadband<br />

terminal devices?<br />

What will be the future role of wireless chipset suppliers in<br />

the value chain?<br />

When will embedded mobile broadband connectivity<br />

become a standard feature in mass-market notebook PCs?<br />

What are the critical success factors needed to gain massmarket<br />

traction for mobile broadband connectivity?<br />

How are the operators developing their segmentation and<br />

pricing strategies?<br />

How is fixed-mobile convergence and telecom service<br />

bundling going to affect the market?<br />

What impact will LTE have on the mobile broadband<br />

connectivity market?


Table of Contents<br />

1 Market environment<br />

1.1 Internet usage<br />

1.2 The European broadband<br />

communications market<br />

1.2.1 Fixed broadband market<br />

1.2.2 Wireless market<br />

1.3 The North American broadband<br />

communications market<br />

1.3.1 Fixed broadband market<br />

1.3.2 Wireless market<br />

2 Evolved 3G/LTE network<br />

technology<br />

2.1 Wireless technology roadmap<br />

2.1.1 GSM<br />

2.1.2 3G networks UMTS/WCDMA – 3GPP<br />

Release 99<br />

2.1.3 HSDPA – 3GPP Release 5<br />

2.1.4 HSUPA – 3GPP Release 6<br />

2.1.5 HSPA+ – 3GPP Release 7<br />

2.1.6 HSPA+ – 3GPP Release 8 and further<br />

evolution<br />

2.1.7 LTE – 3GPP Release 8, 9 and 10<br />

2.1.8 The CDMA/EVDO track<br />

2.1.9 Other wireless technologies<br />

2.1.10 Comparison of technologies<br />

2.1.11 HSPA+ and LTE network deployments<br />

2.2 Evolution of network infrastructure<br />

2.2.1 From traditional to evolved network<br />

architecture<br />

2.2.2 Improving network backhaul capacity<br />

2.2.3 Expansion to new frequency bands<br />

2.3 Evolution of wireless chipsets<br />

3 Mobile broadband device<br />

vendors<br />

3.1 Mobile Broadband data terminals and<br />

form factors<br />

3.1.1 The mobile broadband connectivity<br />

value chain<br />

3.1.2 USB modems<br />

3.1.3 Gateways<br />

3.1.4 Embedded solutions<br />

3.1.5 PC-cards<br />

3.2 Mobile broadband terminal vendors<br />

3.2.1 Huawei<br />

3.2.2 ZTE<br />

3.2.3 Option<br />

3.2.4 Novatel Wireless<br />

3.2.5 Sierra Wireless<br />

3.2.6 AnyDATA<br />

3.2.7 BandRich<br />

3.2.8 Onda Communication<br />

3.2.9 Teltonika<br />

3.2.10 Axesstel<br />

3.2.11 C-motech<br />

3.2.12 Samsung<br />

3.2.13 Franklin Wireless<br />

3.2.14 Others<br />

3.3 Embedded solution vendors<br />

3.3.1 Ericsson<br />

3.3.2 Qualcomm<br />

3.3.3 Others<br />

4 Notebook PC and tablet<br />

integration<br />

4.1 The global notebook PC and tablet<br />

market<br />

4.1.1 Notebook PC market trends<br />

4.1.2 Notebook PC vendor market shares<br />

4.1.3 Tablet market trends<br />

4.1.4 Tablet vendor market shares<br />

4.2 Integration of mobile broadband in<br />

notebook PCs<br />

4.3 Integration of mobile broadband in<br />

tablets<br />

4.4 Notebook and tablet vendors<br />

4.4.1 Hewlett-Packard<br />

4.4.2 Acer<br />

4.4.3 Dell<br />

4.4.4 Lenovo<br />

4.4.5 Toshiba<br />

4.4.6 ASUS<br />

4.4.7 Apple<br />

4.4.8 Samsung Electronics<br />

4.4.9 Sony<br />

4.4.10 Motorola<br />

4.4.11 Research In Motion<br />

5 Operator strategies for mobile<br />

broadband<br />

5.1 Mobile broadband usage<br />

5.2 Business models<br />

5.2.1 Postpaid subscriptions<br />

5.2.2 Prepaid subscriptions<br />

5.2.3 Bundling with other services<br />

5.3 Pricing and conditions<br />

5.3.1 Pricing<br />

5.3.2 International roaming<br />

5.3.3 Terms of use<br />

5.4 3 Group<br />

5.5 Deutsche Telecom<br />

5.6 France Telecom<br />

5.7 KPN Group<br />

5.8 Telecom Italia<br />

5.9 Telekom Austria<br />

5.10 TeliaSonera<br />

5.11 Telefónica Group<br />

5.12 Vodafone Group<br />

5.13 Verizon Wireless<br />

5.14 AT&T<br />

5.15 Sprint<br />

6 Forecasts and conclusions<br />

6.1 Market summary<br />

6.2 Device market<br />

6.2.1 Vendor market shares<br />

6.2.2 Form factor trends<br />

6.3 The European mobile broadband<br />

service market<br />

6.3.1 Pricing trends<br />

6.3.2 Network technology trends<br />

6.3.3 Service convergence trends<br />

6.4 The North American mobile<br />

broadband service market<br />

6.4.1 Pricing trends<br />

6.4.2 Network technology trends<br />

Glossary


NGT Research Series<br />

Smartphone Markets<br />

and Technologies<br />

Smartphone Markets and Technologies is the second<br />

consecutive report from <strong>Berg</strong> <strong>Insight</strong> analysing the latest<br />

trends on the worldwide market for smartphone operating<br />

systems and handset technologies.<br />

This report in the NGT Research Series from <strong>Berg</strong> <strong>Insight</strong><br />

provides you with 110 pages of unique business intelligence<br />

including 5-year industry forecasts and expert commentary<br />

on which to base your business decisions.<br />

This report will allow you to:<br />

Identify the key drivers and barriers for adoption of<br />

smartphones.<br />

Learn about the current strategies of the leading handset<br />

brands.<br />

Evaluate the existing OS platforms from key vendors.<br />

Understand the reshaping of the cellular chipset value<br />

chain and consolidation trends.<br />

Anticipate future smartphone design trends and<br />

technology developments.<br />

Realize the importance of on-device application stores.<br />

Benefit from updated forecasts and extensive statistical<br />

material.<br />

Order now!<br />

Please visit our web site to order this<br />

report and find more information about<br />

our other titles at www.berginsight.com<br />

See inside for further details<br />

<strong>Berg</strong> <strong>Insight</strong>’s NGT Research Series<br />

How will the mobile market evolve in the future? <strong>Berg</strong> <strong>Insight</strong>’s Next Generation<br />

Technologies Research Series examines the latest advances in mobile technology<br />

and the new business opportunities they create. Each title analyses development<br />

roadmaps, potential applications and addressable market segments for a technology.<br />

Topics currently covered by the series include smartphones, femtocells, mobile<br />

broad band and short-range handset connectivity.<br />

www.berginsight.com


NGT Research Series<br />

Will Android, iOS or Windows Phone<br />

be the winner on the surging smartphone<br />

market?<br />

Mobile phones are by far the most pervasive consumer electronics devices<br />

globally. Total handset shipments grew 8 percent in 2010 to 1.3<br />

billion units as the world economy started to recover. Mobile phones<br />

can be divided into segments based on price or device capabilities. For<br />

instance, a broad distinction can be made between smartphones that<br />

support native third party applications and featurephones that do not.<br />

Smartphones is the fastest growing segment with shipments increasing<br />

by almost 74 percent in 2010 to 295 million units. Smartphones are<br />

receiving more attention from handset manufacturers, network operators<br />

and application developers. Handset vendors adopt smartphone<br />

operating systems in order to reduce development time and cost for<br />

new advanced handset models. Operators promote smartphones that<br />

drive adoption of postpaid subscriptions and data plans. Both handset<br />

vendors and operators also strive to attract developers that can bring<br />

additional revenues and customer interest from their applications. Most<br />

importantly, an increasing number of users are now discovering how<br />

smartphones can act as personal computing devices enabling access<br />

to the mobile web and applications, besides voice and text services.<br />

Wider availability of mid-tier and low cost smartphones has already led<br />

to a decline in sales of mid- and high-end featurephones. Shipments of<br />

entry handsets with limited or no support for third party applications is<br />

also forecasted to gradually decline as the cost of featurephones and<br />

smartphones become progressively lower and therefore become a viable<br />

option for more users. <strong>Berg</strong> <strong>Insight</strong> forecasts that shipments of<br />

smartphones will grow from 295 million units in 2010 at a compound<br />

annual growth rate of 32 percent to 1.2 billion units in 2015.<br />

Along with a growing number of device manufacturers and software<br />

developers entering the mobile industry, the number of smartphone<br />

operating systems available has also increased. The early smartphone<br />

operating systems Symbian, Windows Mobile and BlackBerry OS have<br />

been joined by new proprietary operating systems such as Apple’s iOS<br />

and Samsung’s Bada OS. Several Linux-based operating systems including<br />

Android, LiMo, webOS and MeeGo have also been released.<br />

In addition to basic operating systems for featurephones, many handset<br />

vendors now use multiple smartphone operating systems across<br />

their device portfolios. While this creates a broad choice of devices for<br />

customers, it also creates increased development costs for handset<br />

Million units<br />

1200<br />

1000<br />

800<br />

600<br />

400<br />

200<br />

0<br />

2009<br />

2010<br />

2011<br />

2012<br />

2013<br />

2014<br />

2015<br />

Annual shipments of smartphones (Worldwide 2009–2015)<br />

Year<br />

vendors and fragmentation for application developers. However, maturing<br />

web technologies for handsets will eventually facilitate service<br />

deployment on handsets in the same way the browser has become the<br />

primary delivery platform for PCs.<br />

Android became the leading smartphone OS in Q4-2011 with 32 million<br />

handsets shipped – about two million more than Symbian. The slow<br />

progress of its development of the improved Symbian platform and the<br />

MeeGo platform for high-end smartphones ultimately led to Nokia’s radical<br />

change of strategy to adopt Windows Phone as its main operating<br />

system for smartphones. Symbian remained the leading smartphone<br />

OS based on annual shipments with 107 million units, ahead of Android<br />

with 69 million handsets shipped in 2010. Apple’s continued success<br />

with its iPhone handsets enabled the iOS platform to outsell BlackBerry<br />

handsets in the second half of 2010 to become the third largest operating<br />

system. For the full year, both RIM and Apple each shipped about 48<br />

million smartphones. Like Symbian, Microsoft’s Windows Mobile platform<br />

has lost market share consistently after the iPhone and Android<br />

appeared on the market. Microsoft introduced its completely redesigned<br />

Windows Phone 7 platform in October 2010. The new platform has been<br />

relatively well received even though the first handsets using the platform<br />

do not compare favourably with the licensees best handsets based on<br />

other platforms in terms of hardware design.<br />

Over the years, thousands of applications have been developed for<br />

Palm, BlackBerry, Windows Mobile and Symbian smartphones. At first,<br />

application developers had difficulties to reach a broad user base in absence<br />

of a suitable delivery channel. In 2008, the Apple App Store was<br />

launched with immediate success removing this hurdle. All leading operating<br />

system providers and handset vendors have now launched their<br />

own application stores. <strong>Berg</strong> <strong>Insight</strong> estimates that the total number of<br />

downloaded applications for smartphones grew from 3 billion globally<br />

in 2009 to about 9.5 billion in 2010. Revenues from applications have at<br />

the same time doubled year-on-year to € 4 billion in 2010.<br />

This report answers the following questions:<br />

What is driving the adoption of smartphones?<br />

What are the key differences between smartphone<br />

operating systems and traditional handset software?<br />

What are the OS strategies of the leading smartphone<br />

vendors?<br />

Who are the leading developers of chipsets for<br />

smartphones?<br />

What are the secrets behind the tremendous success of<br />

application stores?<br />

What is the technology development roadmap for<br />

smartphones in the coming years?<br />

Who will be the key smartphone vendors in the future<br />

and who are the main market challengers?<br />

How will the installed base of smartphones develop in<br />

the future?


Table of Contents<br />

1 Mobile handsets and smartphones<br />

1.1 Overview of handset segments<br />

1.1.1 Main handset segments<br />

1.1.2 Popular handset categories and form factors<br />

1.2 Introduction to smartphones<br />

1.2.1 Smartphone operating system technologies<br />

1.2.2 Proliferation of smartphone operating<br />

systems<br />

1.2.3 Growing end-user demand for smartphones<br />

1.2.4 Mobile network operators show interest in<br />

smartphones and apps<br />

1.2.5 Application stores provide a new channel to<br />

the market for developers<br />

1.3 Smartphone trends<br />

1.3.1 Evolution of smartphone ecosystems<br />

1.3.2 Evolution of smartphone input mechanisms<br />

and user interfaces<br />

1.3.3 High-end smartphones challenge PCs<br />

1.3.4 Best selling smartphones in 2010<br />

2 Smartphone operating systems<br />

2.1 The Android platform<br />

2.1.1 Android OS versions and features<br />

2.1.2 Android development tools<br />

2.2 BlackBerry OS<br />

2.2.1 BlackBerry OS versions<br />

2.2.2 BlackBerry OS development tools<br />

2.3 iOS<br />

2.3.1 iOS versions and features<br />

2.3.2 iOS development tools<br />

2.4 MeeGo<br />

2.4.1 Linux distribution with support for multiple<br />

portable and connected devices<br />

2.4.2 Application development frameworks and<br />

tools<br />

2.5 Microsoft operating systems for handsets<br />

2.5.1 Windows Mobile to be consigned to niche<br />

markets<br />

2.5.2 Windows Phone 7 increases focus on<br />

consumer devices<br />

2.5.3 Development tools for Windows Phone 7<br />

2.6 Symbian<br />

2.6.1 Current Symbian versions<br />

2.6.2 Symbian transitions to a continuous<br />

improvement model<br />

2.7 WebOS<br />

2.7.1 WebOS versions<br />

2.7.2 WebOS development tools<br />

2.8 Other handset operating systems<br />

2.8.1 Brew MP<br />

2.8.2 Samsung’s Bada platform<br />

2.8.3 LiMo Platform<br />

3 Application stores<br />

3.1 Overview of application stores<br />

3.1.1 Vendor independent application stores<br />

target multiple platforms<br />

3.1.2 Application store revenues<br />

3.2 OS developer application stores<br />

3.2.1 Android Market<br />

3.2.2 Windows Marketplace for Mobile and<br />

Windows Phone Marketplace<br />

3.3 Device vendor application stores<br />

3.3.1 The Apple App Store<br />

3.3.2 BlackBerry App World<br />

3.3.3 HP App Catalog<br />

3.3.4 Motorola Shop4apps<br />

3.3.5 Nokia Ovi Store<br />

3.3.6 Samsung Apps<br />

3.3.7 LG Application Store<br />

3.3.8 Sony Ericsson PlayNow Arena<br />

3.4 Operator application stores<br />

3.4.1 The Wholesale Application Community<br />

3.4.2 AT&T AppCenter<br />

3.4.3 China Mobile Market<br />

3.4.4 Orange Application Shop<br />

3.4.5 Verizon V CAST Apps<br />

3.4.6 Vodafone 360 Shop<br />

4 Handset hardware platforms<br />

4.1 Overview of handset hardware platforms<br />

4.1.1 Handset hardware components<br />

4.1.2 Wireless connectivity technologies<br />

4.2 Mobile application processor<br />

technologies<br />

4.2.1 Smartphones are the new battleground<br />

between ARM and x86 processors<br />

4.2.2 Discrete application processors power highend<br />

smartphones<br />

4.2.3 Integrated communication processors<br />

enable cost efficient devices<br />

4.3 The handset chipset industry<br />

4.3.1 Industry consolidation continues<br />

4.3.2 Handset baseband vendors<br />

4.3.3 Connectivity chipset vendors<br />

4.3.4 Sensor IC vendors<br />

4.4 Cellular connectivity and handset<br />

platform vendors<br />

4.4.1 Broadcom<br />

4.4.2 Freescale Semiconductor<br />

4.4.3 Intel<br />

4.4.4 Marvell<br />

4.4.5 MediaTek<br />

4.4.6 Nvidia<br />

4.4.7 Qualcomm<br />

4.4.8 Renesas Electronics<br />

4.4.9 ST-Ericsson<br />

4.4.10 Texas Instruments<br />

5 Handset manufacturers<br />

5.1 The handset market in 2010<br />

5.1.1 Device shipments reach new record<br />

5.1.2 Smartphone sales drive handset revenues to<br />

an all-time high<br />

5.2 Nokia<br />

5.2.1 Device portfolio<br />

5.2.2 Market analysis<br />

5.3 Research In Motion<br />

5.3.1 Device portfolio<br />

5.3.2 Market analysis<br />

5.4 Apple<br />

5.4.1 Device portfolio<br />

5.4.2 Market analysis<br />

5.5 HTC<br />

5.5.1 Device portfolio<br />

5.5.2 Market analysis<br />

5.6 Samsung Electronics<br />

5.6.1 Device portfolio<br />

5.6.2 Market analysis<br />

5.7 Motorola<br />

5.7.1 Device portfolio<br />

5.7.2 Market analysis<br />

5.8 Sony Ericsson<br />

5.8.1 Device portfolio<br />

5.8.2 Market analysis<br />

5.9 LG Electronics<br />

5.9.1 Device portfolio<br />

5.9.2 Market analysis<br />

5.10 Second tier smartphone vendors<br />

5.10.1 Acer<br />

5.10.2 Dell<br />

5.10.3 Fujitsu Toshiba Mobile Communications<br />

5.10.4 Hewlett Packard<br />

5.10.5 Huawei<br />

5.10.6 Kyocera Sanyo Telecom<br />

5.10.7 Lenovo Mobile Communications<br />

5.10.8 NEC Casio Mobile Communications<br />

5.10.9 Panasonic Mobile Communications<br />

5.10.10 Pantech<br />

5.10.11 Sharp<br />

5.10.12 TCL Communication<br />

5.10.13 ZTE<br />

6 Market trends and forecasts<br />

6.1 Market trends<br />

6.1.1 Changing demands reshapes the wireless<br />

chipset industry<br />

6.1.2 Focus on smartphones among vendors and<br />

operators is accelerating<br />

6.1.3 Web technologies will eventually overtake<br />

native applications<br />

6.1.4 Smartphone operating systems are<br />

becoming ecosystems<br />

6.2 Smartphone shipments and market<br />

shares<br />

6.2.1 Handset shipments by segment<br />

6.2.2 Smartphone shipments by geography<br />

6.2.3 Smartphone shipments by OS<br />

6.2.4 Smartphone shipments by vendor<br />

6.3 Handset shipment forecasts<br />

6.3.1 Handset shipment forecasts by primary<br />

access technology<br />

6.3.2 Handset shipment forecasts by feature and<br />

price segment<br />

6.3.3 Smartphone shipment forecasts by segment<br />

6.3.4 Smartphone shipment forecasts by region<br />

6.3.5 Smartphone shipment forecasts by<br />

operating system<br />

Glossary

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!