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Industries Ripe for Smart Transformation in Industries Ripe for Smart Transformation in Europe Europe Tracking ICT Trends through Key Industries, Tracking ICT Trends through Key Industries, Countries and ICT Elements Countries and ICT Elements © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan. Yiru Zhong, Industry Manager M2M & Connected Industries 13 th November 2013

Industries Ripe for Smart Transformation in Europe

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Page 1: Industries Ripe for Smart Transformation in Europe

Industries Ripe for Smart Transformation in Industries Ripe for Smart Transformation in EuropeEurope

Tracking ICT Trends through Key Industries, Tracking ICT Trends through Key Industries, Countries and ICT ElementsCountries and ICT Elements

© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Yiru Zhong, Industry Manager M2M & Connected Industries

13th November 2013

Page 2: Industries Ripe for Smart Transformation in Europe

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Today’s Presenter

Yiru is an analyst for the ICT industry, with expertise in Machine-to-Machine and Connected Industries

Yiru Zhong, Analyst,

Frost & Sullivan

http://www.linkedin.com/pub/yiru-zhong/1/1a2/b46

@frostsullivan

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Discussion Agenda

• Introduction to Connected Industries Market Forecast

• Identify key ICT opportunities from 3 lenses • ICT components• Industries• Countries

• Deep dive into ICT spending patterns in industries ready for smart transformation in the next 5 years

• IT & Communications • Energy & Utilities• Government

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Connected Industry Research ProgrammeEvaluating Smart Transformation Opportunities Across 14 Industry Sectors

Core ICT Spending Model Overview – Key Questions Answered

Which countries have the highest ICT spending, and

which have the highest growth potential?

Which industries already have a proportion of ICT

spending? Which are most ready for smart

transformation through automation/intelligence?

What is the additional ICT spending needed above a "business-as-usual" ICT

spending forecast, as industries invest in intelligence for a smart

environment?

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Connected Industry Research Programme Core ICT Spending Model Overview

Research Scope

26 Countries: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom

14 Industries: Information & Communications, Construction, Education, Energy & Utilities, Financial Services, Government, Healthcare, Hospitality/ Hotels/ Leisure, Manufacturing, Natural Resources, Professional Services, Retail, Transportation, Wholesale & Distribution

4 ICT Components: Communications, IT Hardware, IT Services, IT Software

Research Methodology

Aligned datasets from a variety of sources including Frost & Sullivan's Decision Support Databases and external organisations such as Eurostat to build a historical picture of ICT spend

1

Historical and macro view of each country's ICT spending developed by ICT components and industries from 2003 to 2012.

2

2013–2017 forecast is based on a bottom up perspective of ICT components spending for each country's key industries (at least of the top 5 industries)

3

Proxies for countries are developed based on their economic structure, historical ICT spending patterns by ICT components, and Frost & Sullivan's opinion on the degree of ICT intensity.

4

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ICT Spending in Europe is expected to grow 4.0% on a 2012-2017 CAGR basis

2012 – 2017 CAGR 3.9%

Source: Frost & Sullivan

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ICT Opportunities from 3 lenses

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The ICT industry is poised for a transformational phase as it becomes an enabler of the Connected Society

Source: Frost & Sullivan^ bubble size reflects 2017 ICT spending forecast

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Expected ICT Spending by Verticals in 2017Outside of ICT, Financial Services and Energy & Utilities Drive Spend

9

^ Bubbles reflect 2017 valuesExcludes ICT sector in chart to avoid distortion to other industries’ growth Source: Frost & Sullivan

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ICT Spending from a Country Perspective

Source: Frost & Sullivan

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Putting it all together (1)Russia & Communications spending stand out

Source: Frost & Sullivan

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Putting it all together (2) Industries with historically strong ICT adoption

Source: Frost & Sullivan

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Deep-dive into ICT spending patterns in key industries

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Nexus of Cloud Computing, Big Data, Mobility and the Internet of Things

Rise of AppsRise of Apps

Internet of Things

Internet of Things

Rise of Cloud and Big Data

Rise of Cloud and Big Data

Ubiquitous Wireless BBUbiquitous

Wireless BB

Cloud allowing access to content on any device in any location. Big data enables value to be extracted out of exponential increase in data.

WiFi, 3G & LTE becoming standard connectivity modes.

Cloud and mobility driving the emergence of apps which can be used on any IP enabled device.

IPv6 driving proliferation of IT enabled sensors/devices across industry-specific activities.

2

3

4

1

Industry Verticals

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The biggest factor driving ICT spending in the sector is in communications networks

Source: Frost & Sullivan

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The Energy & Utilities industry has strong ICT requirements but adoption has also been cautious

ProjectedImpact on the

EnergyVertical by

2020

High Impact

Low Impact

Certainty by 2020Low High

Smart buildings -> Smart Cities

Demand Response

Renewable Energy

Electric Vehicles

Distributed Generation

Automation of the Grid

Expansion into Services

Expansion of AMI

Prosumers

Energy Efficiency

High Growth Impact

LowGrowthImpact

MediumGrowthImpact

Enterprise Mobility

Data Security

Cloud Computing

M2M/IoT

IT/OT Convergence

Big Data & Analytics

Distributed Intelligence

Source: Frost & Sullivan analysis

Energy StorageVirtual Power Plants

Cross domain interoperability

Next Generation Networks

Open Source

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The Energy & Utilities industry is expected to have a high demand for new communications services and networks

Source: Frost & Sullivan

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Moving Towards Mobile GovernmentMobile Technologies for More Efficient and Cost-Effective Public Administration

18

m-Government to Employees (mG2E)

Interactions between government and its own employees

m-Government to Employees (mG2E)

Interactions between government and its own employees

m-Government to Government (mG2G)

Interactions between government departments and agencies

m-Government to Government (mG2G)

Interactions between government departments and agencies

m-Government to Citizen (mG2C)

Interactions and engagements between government and citizens (healthcare, transport, education, security, etc)

m-Government to Citizen (mG2C)

Interactions and engagements between government and citizens (healthcare, transport, education, security, etc)

m-Government to Business (mG2B)

Interactions and engagements between government, companies and other organizations in society

m-Government to Business (mG2B)

Interactions and engagements between government, companies and other organizations in society

Individual

Bac

k-o

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e ap

pli

cati

on

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Organisation

Fro

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off

ice

app

lica

tio

ns

Source: Frost & Sullivan

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The Government sector is expected to migrate to more IT services based demand

Source: Frost & Sullivan

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Summary

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Next Steps

Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or

join our GIL Global Community

Join our GIL Community Newsletter Keep abreast of innovative growth opportunities

Phone: 1-877-GOFROST (463-7678) Email: [email protected]

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Your Feedback is Important to Us

Growth Forecasts?

Competitive Structure?

Emerging Trends?

Strategic Recommendations?

Other?

Please inform us by “Rating” this presentation.

What would you like to see from Frost & Sullivan?

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For Additional Information

Adrian DrozdResearch DirectorICT Europe+ 44 1865 398 [email protected]

Joanna LewandowskaCorporate CommunicationsICT+48 22 390 41 [email protected]

Yiru ZhongIndustry ManagerM2M & ICT in Smart Energy +44 207 915 [email protected]

Adriana BlackAccount ManagerICT Europe+44 207 343 [email protected]