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Global Smart City MarketA $1.5 Trillion Growth Opportunity in 2020
Today’s Presenters
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Sarwant SinghSenior PartnerFrost & Sullivan
Archana AmarnathProgram ManagerFrost & Sullivan
Karen Parrish VP of Industry Solutions, Public SectorIBM
Agenda
Smart City Market - Key Smart City Segments
Introduction and Definition
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City Stakeholders Analysis – Key Market Participants and New Business Models
Roles for Companies within the Smart City Ecosystem
Macro to Micro Opportunities
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26 global smart cities by 2025 90 global sustainable cities by 2025
$1.5 trillion global market 2020 20% growth in smart energy sector to 2020
Key Findings of the Report
Four Smart City Roles –integrator, network service provider, pure-play product vendor, and Managed service provider
New Business Models–BOO, BOT, BOM, and OBM
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Smart Diamond that Defines a Smart City
4G
Smart Energy
Smart Building
Smart Citizen
Smart Technology
Smart Healthcare
Smart Mobility
Smart Infrastructure*
Smart Governance
Source: Frost & Sullivan analysis.* Other Smart Infrastructure such as security solutions sensor networks, digital management of water utilities not included in other segments
Key Parameters That Will Define a Smart City in 2020
• Smart Grids• Smart Meters• Intelligent Energy
Storage
• Building Automation• Intelligent Buildings:
Advance d HVAC, Lighting Equipment
• Low-emission Mobility• Integrated Mobility
Solutions• Multimodal Transport
• Sensor Networks• Digital Water and
Waste Management
• Use of ehealth and mhealth systems
• Intelligent and connected medical devices
• e-Government• e-Education• Disaster Management
Solutions
• Use of Green Mobility Options
• Smart Lifestyle Choices• Energy conscious
• Broadband penetration rate of over 80%
• Location Based Services, Augmented Reality, GPS enabled devices/ phones
Smart Energy: Digital Management of Energy
Smart Buildings: Automated Intelligent Buildings
Smart Mobility: Intelligent Mobility
Smart Infrastructure: Digital Management of Infrastructure*
Smart Governance: Government-on-the-Go
Smart Healthcare: Intelligent Healthcare Technology
Smart Citizen: Civic Digital Natives
Smart Technology: Seamless Connectivity
Source: Frost & Sullivan analysis.Note: *Infrastructure not included in other segments
Smart Security: Safe Cities
• Surveillance• Biometrics• Simulation modelling
and crime prediction• C2 and response
20.93 %
14.11%
16.65%13.75%
9.09%
15.26%
10.21%
Smart Infrastructure3
CAGR: 8.9% (2012-2020)
Smart cities To Create Huge Business Opportunities With A Market Value Of $1.5 Trillion In 2020
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Smart Governance and Smart Education2
CAGR: 12.4% (2012-2020)
Smart EnergyCAGR: 19.6% (2012-2020)
Smart TransportationCAGR: 14.8% (2012-2020)
Smart HealthcareCAGR: 6.9% (2012-2020)
Smart BuildingCAGR: 8.8% (2012-2020)
7Smart City Market by Segments,1 Global, 2020
Source: Frost & Sullivan analysis.
Note: The graph represent the market share of each segment in the smart city market.
For more information on smart city market sectors please refer to appendix
Smart City Market
2Smart Education includes eLearning services for schools, universities, enterprises, and government entities
1These numbers represent the entire smart solutions eco-system in each segment for both urban and non-urban panoramas
Smart SecurityCAGR: 14% (2012-2020)
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3Other Smart Infrastructure such as sensor networks, digital management of water utilities not included in other segments
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Selected Smart Cities in 2025
Global Smart CitiesOver 26 Global Cities to be SMART Cities in 2025 - More than 50% of Smart cities
of 2025 will be from Europe and North America
Source: Forbes Smart City List, Innovation City Index, Specific Smart Project Websites for Each City, Frost & Sullivan
Toronto
San Francisco
Vancouver
Paris
New York
London Berlin
Barcelona
Amsterdam
Seattle
Tokyo
Singapore
Calgary
ChicagoLos Angeles
Vienna
Copenhagen
Oslo
Seoul
Beijing
TianjinWuhan
Helsinki
Sydney
Shenzhen
Stockholm
Santander (upcoming)
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Global Snapshot of Sustainable/ Eco Cities in 2025
North America
Latin America
Europe
PortlandSacramentoOaklandSan DiegoDallasHoustonOrlandoAustinMinneapolisSan JoseDenverBostonOttawaMontrealPhiladelphiaWashington DCColumbusEdmonton
BrasíliaBelo HorizonteSão PauloRio de JaneiroCuritibaBogotáMexico City
AccraJohannesburgCape TownDurbanTunisMasdar CityDoha
Middle East & Africa
Asia-Pacific & Australia
Note: Eco Cities are cities built on a green initiative, from buildings to transport, governance, city planning,energy, and technology. These cities are either upgraded or built from scratchMoreland
Sustainable / eco-city in 2025Sustainable / eco-city built from scratch
Source: Siemens Green Index, Frost & Sullivan, 2012
CardiffBrusselsZurichLyonFrankfurtMilanRomeCambridge shireMarseilleTampere
GenevaGrazRigaVilniusMetzTubingenMontpellierBordeauxCasablancaNorwichHamburg
ManchesterGothenburgIsle of WightGlasgowLiverpoolDublinMarseilleBergenEdinburghNantesGyor
IstanbulBursaAnkaraEskisehirIzmirDenizliAntalyaAdanaEdinburgh
GIFTSino-Singapore Tianjin Eco-city, Tianjin
NanjingHong Kong
FoshanGuangzhou
WuxiOsaka
YokohamaWanzhuang Eco-city, Hebei
MedanPalembang
JakartaSurabaya DenpasarMakasar
BalikpapanAdelaide
Moreland
City Stakeholders Analysis , Business
Models
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The city planner allows any qualified company or business organisation to build city infrastructure and provide city services. The city planner however will impose some regulatory obligations.
The smart city planner appoints a trusted partner to develop the city infrastructure and services. The partner operates and manages the smart city services. The city planner has no role further. Most of the public-private partnerships are build on this model.
The smart city planner appoints a trusted partner to build the city infrastructure and provide smart city services for a particular area within a time period. After completion the operation is handover to the smart city planner.
The smart city planner independently builds the city infrastructure and delivers smart city services. The operation and maintenance of the services is fully under the planner’s control.
Business Own
Operate (BOO)
Build Operate Transfer
(BOT)
Business Operate
Managed (BOM)
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Smart Cities Business ModelsMajority of smart city projects are developed under Business Operate Managed (BOM)
business model
Source: Frost & Sullivan analysis.
Note: City Planner: Governing authorities involved with urban planning/land use planning that design plans for the development and management of urban and suburban areas based on land use compatibility, economic trends, environmental implications and social needs.Partner: Private / public stakeholders collaborating with city authorities over urban planning and smart city initiatives
Build Own
Operate (BOO)
Build Operate Manage (BOM)
Open Business
Model (OBM)
Selective Wish List of Products/Services Portfolio That Can be Offered to a City
12Source: Frost & Sullivan Analysis
Prod
ucts
/ S
ervi
ces
SECTORS Mobility
Traffic management
Electric vehicle charging
infrastructure
Tolling and congestion
charging
Integrated mobility
management
Geo Fencing & Asset Tracking
Parking Management and
Payment Solutions
Energy
Smart grids; energy
management
Smart meters
Smart home appliances
Flow and regenerative technologies
Renewable integration
Sensors and Smart Material
IT and Telecom
City Cloud Computing
Data-centric Consulting
Services
Information Management
Services
IT Advisory Services
Managed Security Services
Authentication and Monitoring
(Sensors, Video Surveillance)
Security
Identity Management
Cyber Security
Intelligent, real time security management
Sensor actuator solutions
Logistics / Mobility security
management
Building security
Healthcare
Integrated health record system
E-health
M-health
Tele-consultation facility
Home health
Data and Business
Analytics for Healthcare
Governance
e-ServicesTransactions and
Payments
e-Communication
Notifications and alert service
e-AdministrationTools for public administration
e-SecurityLaw enforcement and
emergency management
e-BusinessesRegistration Services
Patent Renewals
M-GovernanceSMS Tax ReturnsSMS Utility Bills
There Are Four Different Roles Smart Cities Players Can Take
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Pure-Play Product Vendors
Managed Service Providers
Network Service Providers
IntegratorsSmart 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 Example: IBM, Oracle, Accenture, Siemens
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. Example: Cisco, Verizon, Ericsson, AT&T
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Smart city product vendors provide “hard assets” like 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, Schneider Electric, Siemens
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
Key Product / Service Provider Roles in Smart City Ecosystem
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Products / Services Integrators Network Service Providers
Pure-Play Product Vendors
Managed Services
Existing case examples Pre-packaged platforms
Collaborative networks
Hardware and Assets Maintenance
Smart Clouds Centralized Collaborative Dashboards
Data Integration Unified Communications Location Based Services and Transportation Platforms Telepresence and virtual public services (education, healthcare)
Wireless Sensor Networks Grid monitoring and control Smart Buildings (materials and sensors)
Electric Charging Infrastructure Asset tracking and management
Source: Frost & Sullivan analysis.
Integrators, network service providers, product vendors, and managed service landscape in the smart city ecosystem
Software Focused Communication Focused
Infrastructure Focused
Operations Focused
Convergence of Technology Will Lead to Convergence of Competition
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Source: Frost & Sullivan
IT Participants• IP networks• Digital technology• Analysis software• Technology integration• Network security
Energy and InfrastructureParticipants• T&D technology• Power electronics• Renewable energy• Integrated distribution
management• Substation automation• AMI-enabled metering
Automation and Building Control Participants• Building automation• Demand-side management• Device connectivity• Monitoring and sensing• Smart grid integration
Telecom Participants• Broadband and Internet
service providers• Phone lines• Mobile communications• Networked IT services
SAP
HPST
ElectronicsOracle
GoogleMicrosoft
Alcatel-Lucent
IBM
Cisco Senergy
Eaton
ALSTOM Grid
Siemens AG
General Electric
ABB
HoneywellRockwell Automation
Johnson Controls
Schneider Electric
Verizon
O2
Deutsche Telekom
Ericsson
AT&T
Serco
SymantecTyco
Point of Convergence
Securitas
Security• Firewalls, Internet protocol
security• Physical implementation of
systems and monitoring• Managed and monitoring
services • Cloud-based services• Identity
management, smart cards
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Key Take Aways and Recommendations
Recommendations to the Private Sector
Recommendations to Cities
Create Smart City Stakeholder Group
Encourage Open Collaboration
Build Digital Infrastructure – e.g., eServices (mHealth)
Evaluate your role and position in the Smart
City market
Build City as a Customer Strategy -
Create a specific team and steering group
Identify potential partners, business
models and consortiums
Develop capabilities in data analytics and
cloud-based services
Develop services as a business model
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How Can Frost & Sullivan Support You?
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• Access to Research + 1 Day Strategic Workshop (to define opportunities and your role in the eco system
• Custom Engagements to help develop your Value Proposition and deep-dive into opportunities
• Access to a Short-list of city profiles and case studies of projects
No Research Topics
14Connected Living: Macro to Micro Implications of Robotics and Artificial Intelligence on Consumer Applications
15 Mega Trends in UK
16 New Business Models
17 Industries of the Future
18 Big Data and its Implications on Industries
19 3D printing and its Macro to Micro Impact on Manufacturing and Supply Chain Management
20 Augmented Reality and its Applications
21 Future of Telecom
22 Mega Trends in Europe
23 Mega Trends in North America
24 Mega Trends in Middle East
List of Studies done by Visionary Innovation Research Group
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No Research Topics
1 Urbanisation and Mega Cities and Impact on Industries and Business
2 Global Mega Trends and its Implications to Urban Logistics to 2020
3 Worlds Top Mega Trends to 2020 and Impact on Society, Cultures, Business, and Personal Lives – 2012 Update
4 Bricks and Clicks: Impact of Connectivity on Future of Retailing
6 Strategic Opportunity Analysis of the Global Smart City Market
7 Mega Trends for Africa
8 Mega Trends for India
9 Mega Trends for LATAM
10 Mega Trends for Turkey
11 Mega Trends in China
12 E Retailing in the Automotive Industry
13 Future of Mobility—New Business Models, Opportunities, and Market Entrants in Mobility Integration
Contact Information
Archana AmarnathProgram Manager, Visionary Innovation Research Group
(+44) 2079157893
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Sarwant SinghPartner & Practice Director, Visionary Innovation Research Group and Automotive & Transportation
(+44) 2079157843
