SMARTCITY –a hype or reality ?

EMEA PARTNER SUMMIT 2015

SMARTCITY – a hype or reality ?

September 2015

What is a smart city?

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What is a smart city?

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IHS Technology defines a smart city as one that has deployed, or is currently piloting, the integration of ICT solutions across three or more of the following functions: mobility and transport, energy and sustainability, physical infrastructure, governance and safety and security, in order to improve efficiency, manage complexity and enhance citizen quality of life, leading to a sustainable improvement in city operation

According to Wikipedia, A smart city uses digital technologies or information and communications technologies (ICT) to enhance quality and performance of urban services, to reduce costs and resource consumption, and to engage more effectively and actively with its citizens

Pike Research’s definition of a smart city is characterized by the integration of technology into a strategic approach to sustainability, citizen well-being, and economic development.

What are the Market Drivers?

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Changing demographics50% living, growth to 66% by 2050, 3Bllion additional population

Environmental Pressure and Climate change70% GHG, Traffic congestion, Blackouts and Brown outs, water shortages

Economic Development and regeneration120 cities account for 27% of GDP , 80 % GDG is in cities

Citizen expectationsRural to Urban migration for education, entertainment, employment, economic

opportunities and health care

What are the Market Drivers?

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GovernmentInclusive, Effective, Stable, Transparent

Human & Social CapitalEducation, Skills, Availability, Flexibility

Financial ExpertiseMaturity, Know-how, Globalized

InfrastructureSoft, Hard, High Quality

SocietyFree, Open, Diverse, Fair

Global AttractivenessSafe, Secure, friendly, Accessible

EconomyWealth, Growth, Integration, Innovation

Resilience & SustainabilityGreen Clean & Risk Reduction

What are the key parameters that define smart city?

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Smart Energy: Digital

management of Energy• Smart girds

• Smart meters

• Intelligent energy storage

Smart Buildings:

Automated Intelligent

Buildings• Intelligent Building

Management

• Advanced lighting

Smart Mobility: Intelligent

Mobility• Advanced traffic

management system

• Parking management

systems

• Transportation pricing sys

Smart Technology:

Seamless Connectivity• 4G connectivity

• Super broadband

• Free Wi-Fi

• 1Gbps download speeds

Smart infrastructure:

Digital management of

Infrastructure• Sensor networks

• Digital water and waste

management

Smart Governance and

Smart Education:• eGovernment

• eEducation

• Disaster Management

Solutions

Smart health care:

Intelligent healthcare

technologies• Use of eHealth and

mHealth

• Intelligent and connected

medical devices

Smart Citizens: Civic

Digital Natives• Use of Green Mobility

options

• Smart Lifestyle choices

Smart Security: Next

Gen 911• Surveillance

• Biometrics

• Simulation modeling and

crime protection

Source: Frost & Sullivan

What are the Market Barriers?

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Development of effective financial modelsBuild Own Operate (BOO), Build Operate Transfer (BOT), Build Operate Manage (BOM)

and Open Business Model (OBM).

Moving from Pilot projects to large scale deployment70% GHG, Traffic congestion, Blackouts and Brown outs, water shortages

Developing a holistic view of the cityClear vision of what the city is trying to achieve

What is the Market Opportunity?

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Frost & Sullivan research estimates the smart city market will be valued at $1.565 trillion in 2025. Out of

this share, 24.6% of projects is likely to be in the smart governance and smart education segment

Around 26 global cities and more than 90 sustainable cities are to developed by 2025. Around 50% of

these smart cities will be from North America and Europe.

The need for complex and integrated citywide solutions will drive and foster convergence in the smart

city space. Companies will actively partner and converge with other players in the smart city ecosystem

to create and offer intelligent services. Convergence between pure-play product vendors, networking

companies, and system integrators will create the most smart solutions in the market.

Smart cities will be measured on the level of intelligence and integration of infrastructure connecting

sectors of healthcare, energy, buildings, transportation, and governance. The construction of this ICT

network will have 4 main models: BOO, BOT, BOM, and Open Network


What is the Market Opportunity?

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The smart energy segment will witness the highest growth rate by 2020. With a CAGR of 25.2%, the market is anticipated

to be valued at $248.36 billion, constituting 15.8% of the global smart city market

Smart mobility solutions are likely to be in high demand in the next 15 years. Latin America, Middle East and Africa, and

Central and Eastern Europe will be the growing segments, at 45.8%, 39.1%, and 31.4%, respectively, by 2025

eServices to Citizens, such as ePayments, eExchange, eSharing, etc., will empower citizens with real-time access to

personal data and related services. More than 60% of citizens of smart cities will have full access to eServices in the next 10

years

All smart city market participants will assume one or more of the four main roles in the ecosystem: integrators (the end-to-

end service provider); network operators (the M2M and connectivity providers); product vendors (hardware and asset

providers); and managed service providers (third party providers overseeing management/operation of smart

solutions/services).

The pace of smart city market development will depend on how quickly companies converge and tap into each other’s

industry value chains. In addition to identifying best partners, the first mover advantage in offering integrated solutions to city

governments will also become vital as cities look for centralized operation centres. Cloud-based smart city services, in this

context, will become imperativeSource: Frost & Sullivan

Dubai Plan 2021

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A city of happy, creative

and empowered people

A smart and sustainable

city

An inclusive and

cohesive society

A pivotal hub in the

global economy

The preferred place to

live work and visit

A pioneering and

excellent government

Source: Dubai Plan 2010 website

smart City Agenda of Dubai

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“Our goal is for the entire city’s services and

facilities to be available on smartphones. We

want to provide a better quality of life for all”

His Highness Shaikh Mohammad

bin Rashid Al Maktoum, Vice-President

and Prime Minister of the UAE and Ruler



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8 Areas of smart city focus

• Telecom

• Tourism

• Utilities

• Education

• Buildings

• Public Safety

• Transportation

• Health care

Source: KPMG – Dubai a new paradigm for smart cities


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Telecoms

• Dubai ranked 1st in ME and 27 in the world in internet usage according to World Economic Forum

• Near Ubiquitous 3G/4G coverage especially in building due to DAS installations

• Plans to deploy 5000 hotspots in 100 locations

• Free low bandwidth WiFi and paid premium WiFi


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Transportation

• RTA has initiated a project to create the first multi-modal, multi-agency integrated command and control

centre in the region

• Smart phone platforms include Smart Drive, Journey Planner, Smart Salik, Smart Parking, Smart Taxi,

Drivers and Vehicles, Public Transport, Corporate Services and RTA Dubai

• They have commissioned a plan to test autonomous vehicles (driverless vehicles) in keeping with the aim to

test the latest technology in the region

• In a public private partnership, developers are encouraged to install eclectic vehicle charging stations in

public area such as malls


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Healthcare

• Smart applications, Smart operations, Smart healthcare

• Digitization of all medical records

• Exploring option of implementing Telemedicine

• There are plans to develop medical tourism in Dubai


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Buildings

• Smart application to file design documents to obtain NOC

• All new building designs are filed in a BIM model

• Focus is on smart intelligent buildings with an aim to water and energy consumption by 30% by 2030


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Utilities

• Dewa plans to install 250,000 smart meters in residential, commercial and industrial projects by 2030

• Dewa plans to generate 1000 MW solar power by 2018

• Residence and commercial can install solar power panels for the purpose of generating electricity for their

personal consumption


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Education

• For grade 7 and above in public schools text books are replace with tablets (provided free)

• Student are able to as questions in class over text messenger

• There are online resources that help students review teachers lesson plan, do their homework and read

digital books


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Public Safety

• Dubai police apps allow customers to

• access and pay their fines;

• applying for a good conduct certificate;

• reporting traffic violations or crimes to the police;

• providing a list of pharmacies which are open 24 hrs

• Dubai Police use google glass to identify road users with outstanding warrants through their number plates

• Dubai is in the process of launching a common communications platform to share common data with the

various agencies to cooperate and collaborate on public safety issues


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Tourism

• Smart App Nahaam give tourists provide info on public transportation, site seeing

• Smart gates at airport expedite entry into Dubai

• DTCM) has introduced e-Permit and eTicketing platforms to support and develop Dubai’s growing events

sector

What are the roles for smart City Participants?

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System

Integrators

Smart city integrators are project integrators that bring together various sectors of the smart city

through pre-packaged platforms, thereby providing a unified, holistic, and end-to-end integration of

multiple sectors.

Examples: IBM, Oracle, Accenture

Network

Service

Providers

Smart city network providers offer collaborative networks, data analytics and enterprise working

solutions that connect people, assets, systems and products by leveraging on their networking and

M2M capabilities

Examples: Cisco, Verizon, Ericsson, AT&T

Pure Play

Product

Vendors

Smart city product vendors provide ‘hard assets,’ such as smart meters and distribution devices

(e.g., automated switches, controllers for capacitor banks and voltage regulators) that operate as

the main nodes of connectivity.

Example: Eaton, Honeywell, ABB, Siemens AG

Manages

service

providers

Smart city managed service providers offer round-the-clock monitoring, complete management,

compliance monitoring, and on-site consulting. These services are provided either in house, co-

managed, or are completely outsourced (third-party providers).

Example: IBM, Serco, SAIC, Infosys


What are the roles for smart City Participants?

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Business opportunities from smart City investments 23

Smart cities will contribute to the increase in

deployment of Data Centers at the customer

premise and cloud continues

Deployment of Sensors, CCTV cameras,

outdoor WiFi access points will create a high

demand for outside plant cables

The demand for smart and intelligent building

and smart homes connecting IoT and the

installation of low voltage LED lights will add to

the requirement of structured cabling in

buildings and homes