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Berg Insight Report Catalogue
Berg Insight Report Catalogue
Berg Insight Report Catalogue
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Table of Contents
Wireless M2M Research Series Smart Metering in Europe 8th Edition Smart Homes and Home Automation Security Applications and Wireless M2M 4th Edition Fleet Management in Europe Fleet Management in the Americas Emerging Wireless Consumer Devices mHealth and Home Monitoring 3rd Edition The Global Wireless M2M Market 3rd Edition Car Telematics and Wireless M2M 5th Edition Smart Metering in North America and Asia-Pacific The European Wireless M2M Market 3rd Edition LBS Research Series Personal Navigation Devices 4th Edition Mobile Navigation Services 4th Edition LBS Platforms and Technologies 2nd Edition Mobile Location-Based Services 5th Edition GPS and Mobile Handsets 4th Edition Mobile VAS Research Series Mobile Money in Emerging Markets Mobile Advertising and Marketing 4th Edition Mobile Banking and Payments 2nd Edition Mobile Entertainment Services Next Generation Technology Research Series Handset Connectivity Technologies 2nd Edition Smartphone Markets and Technologies 2nd Edition The Mobile Broadband Connectivity Market 63 66 69 51 54 57 60 36 39 42 45 48 3 6 9 12 15 18 21 24 27 30 33
Smart Metering in Europe is the eighth consecutive report from Berg Insight analysing the latest developments for smart metering in Europe. This strategic research report from Berg Insight provides you with over 220 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.
the final years of this decade. That will also be the case in the Netherlands, where the plans to introduce smart meters met strong opposition on the grounds of being invasive to privacy and were delayed for several years before they were finally approved by the parliament in late 2010. Germany on the other hand has only implemented some weaker regulatory drivers and the federal government has declared that it has no intention to push for a quick nationwide rollout. Iberia is the new focal point for smart metering in Europe. Following a build-up phase in 2010, massive installations will take off in Spain during 2011, as Endesa goes ahead with a full-scale rollout. Iberdrola is performing major pilots involving hundreds of thousands of customers and activity is also picking up at Gas Natural Fenosa. Furthermore EDP considers a nationwide rollout in Portugal that can be coordinated with the mandatory deployment by its distribution network subsidiary in Spain. Berg Insight forecasts that annual shipments of smart electricity meters in Iberia will peak at around 5 million units per year during 20162017 before the market gradually slows down in the final years before the installation deadline in 2018. France and the UK became active markets in 2010 as ERDF and British Gas entered the initial phases of their smart meter installation programmes. ERDF plans to start with a massive nationwide rollout from 2012 and will need to deploy around 6 million units per year between 2014 and 2017 in order to fulfil the regulatory obligations that will take effect in 2018. The UK is currently in a build-up phase, preparing for a mass rollout to nearly 30 million customers during 20142019. British Gas and E.ON have committed to the installation of at least one million smart electricity meters each before the mass rollout begins. Berg Insight expects that all major energy suppliers in the UK will switch to smart meters for new connections and planned replacements prior to the mass rollout. Ireland plans a nationwide rollout of smart meters starting in 2014.
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1 Electricity, gas and district heating distribution in Europe
1.1 1.2 1.3 1.4 Energy industry players Electricity market Gas market District heating market 4.2.11 4.2.12 4.2.13 4.2.14 4.2.15 4.2.16 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7 4.3.8 4.3.9 4.3.10 4.4 Silver Spring Networks Smart Grid Norway Trilliant Tropos Networks Tritech Technologies Xemex MDMS and middleware vendors Ecologic Analytics eMeter EnergyICT Grlitz Netinium Oracle OSIsoft Powel Process Vision SAP System integrators and managed service providers 4.4.1 IT industry players 4.4.2 Telecom industry players 7.7 7.7.1 7.7.2 7.7.3 7.7.4 United Kingdom Electricity and gas distribution industry structure Metering regulatory environment Plans for a nationwide smart metering system Early smart meter deployments
2 Smart metering
2.1 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.4 2.4.1 Introduction to smart grids Smart metering Smart metering applications Smart metering infrastructure Benefits of smart metering Project strategies System design and sourcing Rollout and integration Implementation and operation Communicating with customers Regulatory issues Models for the introduction of smart meters 2.4.2 Standardisation initiatives 2.4.3 Individual rights issues
5 Market analysis
5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.2 5.2.1 5.2.2 5.3 5.4 Market drivers and restraints Macroeconomic factors Regulatory environment Competitive environment Industry standards Smart metering market forecast Geographical markets Capital expenditure forecast Technology trends Industry analysis
Glossary
comfort functions offered by HA systems are not critical or essential and thus suffer when the financial and economic picture is gloomy. A second reason is that the best time to install a HA system is during new home construction, but new construction has been at a virtual standstill in many regions. Usually the large homes segment is immune to economic fluctuations, but this time the malaise has been so widespread that even the high-end segments have been affected. There will continue to be short-term challenges for the HA industry. The economic and housing gloom could stretch out much longer than currently envisaged. Other challenges include lack of awareness of HA offerings and the fact that consumers in many segments do not see a strong reason for HA systems. The costs involved in terms of equipment, installation and ongoing maintenance and service, are all perceived as deterrents. However, there are signs of economic growth and increased residential construction in many parts of the world. In addition, new initiatives such as Googles Android@ Home can bring increased consumer awareness of HA systems and facilitate interoperability between equipment from multiple vendors. Berg Insight forecasts that worldwide revenues from shipments of home automation systems will grow at a compound annual growth rate (CAGR) of 33 percent from US$ 2.3 billion in 2010 to nearly US$ 9.5 billion in 2015. These numbers include all 3 categories of home automation: professionally installed, Do-It-Yourself (DIY) and the more recent category systems installed by broadband and utility service providers. Significant revenue contributions will come from retrofit of existing homes, both luxury and mainstream. The home automation industry is also opening up a new potential market for cellular M2M devices and services. Berg Insight forecasts that the number of cellular connections used by home automation systems worldwide will grow at a compound annual growth rate of 85.6 percent from 0.25 million in 2010 to 5.5 million connections in 2015. The vast majority of these are security and access control systems. Shipments of cellular M2M communication units for home automation systems are forecasted to grow from 0.2 million units in 2010 to 1.8 million units in 2015.
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1 Smart homes, connected homes and home automation
1.1 Introduction 1.2 Types of home automation 1.2.1 Energy management and climate control systems 1.2.2 Security and access control systems 1.2.3 Lighting, windows and appliance control systems 1.2.4 Audio-visual and entertainment systems 1.2.5 Healthcare systems and home monitoring 1.2.6 Pool, spa control, sprinkler, fountains and miscellaneous 1.2.7 Multifunction and whole-home home automation systems 1.3 Market drivers and barriers 1.3.1 Market drivers 1.3.2 Market barriers 4.2.6 4.2.7 4.2.8 4.2.9 4.2.10 4.2.11 4.2.12 4.3 4.3.1 4.3.2 4.3.3 X10 INSTEON Universal Powerline Bus (UPB) Zigbee Z-Wave Wi-Fi Infrared Industry associations CABA CEA CEDIA 7.1.21 7.1.22 7.1.23 7.1.24 7.1.25 7.2 7.2.1 7.2.2 7.2.3 7.2.4 7.2.5 7.2.6 7.2.7 7.2.8 7.2.9 7.3 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.3.6 7.3.7 7.3.8 7.3.9 7.4 7.4.1 7.4.2 7.4.3 7.4.4 7.4.5 7.4.6 7.4.7 7.4.8 7.4.9 7.4.10 7.4.11 7.4.12 7.4.13 7.4.14 7.4.15 7.4.16 7.4.17 7.4.18 7.4.19 7.4.20 7.4.21 7.4.22 7.4.23 7.4.24 7.4.25 7.4.26 7.5 7.5.1 7.5.2 7.5.3 7.5.4 7.5.5 7.5.6 7.5.7 7.5.8 7.5.9 7.5.10 7.5.11 7.5.12 7.5.13 2GIG Technologies Vantage Controls Vivint Xanboo X10 Security and access control system vendors ABB ADT Alarm.com ASSA ABLOY FortrezZ Ingersoll Rand Schneider Electric System Sensor Wayne-Dalton Lighting and window control system vendors Am-Source International BTX Window Automation CentraLite Electronic Solutions Leviton Lutron Powerline Control Systems Skyco Somfy Audio-visual and entertainment system vendors Actiontec Electronics Atlona Technologies AVC Group BDI Channel Vision Technology Class Audio Cinemar Solutions ConnectGear Draper D-Link Envive Fluid Digital Gefen Groov Audio Harman Kaleidescape Krell Industries Linn Marantz Naim Runco Russound Sonos SpeakerCraft Universal Electronics Universal Remotes Energy management and climate control system vendors AlertMe Blue Line Innovations Cisco Grid Net Intermatic Intwine Energy Invensys Portus RCS Technology Simple Control Tendril Universal Devices Web Mountain
6 Market forecasts
6.1 Market analysis 6.2 Cellular M2M connections and module shipments 6.3 Smart homes and home automation forecasts North America 6.3.1 Custom and luxury home segment 6.3.2 Mainstream single-family home segment 6.3.3 MDU segment 6.4 Smart homes and home automation forecasts Europe 6.4.1 Custom and luxury home segment 6.4.2 Mainstream single-family home segment 6.4.3 MDU segment 6.5 Smart homes and home automation forecasts Asia-Pacific 6.5.1 Luxury home segment 6.5.2 Mainstream home segment 6.5.3 MDU segment
7 Company profiles
7.1 Multifunction and whole-home automation system vendors 7.1.1 AMX 7.1.2 Automated Living 7.1.3 Colorado vNet 7.1.4 Control4 7.1.5 Cortexa 7.1.6 Crestron Electronics 7.1.7 Element Controls 7.1.8 ELK Products 7.1.9 Exceptional Innovation 7.1.10 Global Cach 7.1.11 4Home 7.1.12 Home Automation Inc 7.1.13 iControl Networks 7.1.14 iTouch 7.1.15 Lagotek 7.1.16 Mi Casa Verde 7.1.17 Perceptive Automation 7.1.18 RTI 7.1.19 Savant Systems 7.1.20 Simply Automated
4 Technology overview
4.1 4.1.1 4.1.2 4.1.3 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 Cellular network technologies GSM/HSPA networks CDMA networks LTE networks Connectivity and interoperability standards Ethernet HomePlug HomePNA CEBus LonWorks
Glossary
Security Applications and Wireless M2M is the fourth consecutive report from Berg Insight analysing the latest developments among the key applications for wireless M2M communication in the security industry. This report in the M2M Research Series provides you with 110 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
as construction equipment and plant machinery as well as leisure vehicles and boats. Similar hardware designs also constitute the onboard platform for fleet management solutions and the tracking capabilities of these systems enable basic security applications. What distinguishes vehicle tracking and recovery system from fleet management systems is the monitoring and response service of the secure monitoring centre that is linked to GPS-aided security systems. Today, only a handful car OEMs offer telematics solutions in a few markets in the EU. Berg Insight anticipates that additional brands will launch OEM telematics solutions on the European market in response to the eCall intiative within the EU. The European Commission has a strong commitment to introducing eCall as a standard feature in all new cars and recently set 2014 as the new target date for realising this vision through regulations if necessary. Vehicle tracking and recovery is likely to become a key component for many OEM telematics systems in the next few years, especially for premium cars. Features beyond basic E112 functionality are likely to be subscription services that have to be renewed some years after the purchase of a new vehicle. Significant churn can be expected for these services. There are also many emerging niche applications for wireless M2M in the security industry that have not yet reached significant volumes. Personal security for lone workers is an application area offering growth opportunities in the medium and long term. Wearable integrated tracking and wireless communication devices can be used for protecting individuals. This area is mainly driven by stringent employee health and safety regulations in the UK, but other countries may also introduce similar laws in the future. Moreover, various forms of electronic monitoring of offenders are gradually being rolled out across Europe to reduce costs of running prisons and assist in the rehabilitation process.
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3.4 Key fleet management solution providers 3.4.1 Digicore: A global vehicle tracking solution provider 3.4.2 ID-Systems Asset Intelligence: The leading provider of trailer telematics 3.4.3 Masternaut: Europes leading fleet management provider merges with Cybit 3.4.4 Qualcomm Enterprise Services: Global provider of integrated M2M solutions 3.4.5 Transics: Pan-European heavy truck and transport telematics provider 3.4.6 Trimble: Strengthens European presence with acquisition of Punch Telematix 3.4.7 Volvo Group: Dynafleet available with security service from Securitas 3.5 Satellite communication network operators 3.5.1 Globalstar: Increases focus on consumer tracking and communication 3.5.2 Iridium: Experiences fast growth in M2M data services 3.5.3 Orbcomm: Dedicated M2M satellite data communications provider
4.6.1 Motorcycle theft in Europe 4.6.2 Motorcycle tracking solutions 4.7 The European leisure vehicle and boat market 4.7.1 Market overview 4.7.2 Boat tracking solutions
5 People tracking
5.1 Corporate people tracking and lone worker protection 5.1.1 Lone worker legislation 5.1.2 Lone worker protection devices and services 5.1.3 Electronic monitoring of offenders 5.2 Consumer-oriented people tracking 5.2.1 Mobile operator services 5.2.2 Third party handset-based tracking services 5.2.3 Dedicated GPS tracking devices and services 5.3 Company profiles 5.3.1 Connexion2: Identicom and the SoloProtect managed lone worker service 5.3.2 Geonovo: Developer of the Romad RSP-100 lone worker device 5.3.3 SPOT: GPS tracking and satellite messenger devices from Globalstar 5.3.4 Tramigo: TLD landmarks facilitates location of assets without using maps 5.3.5 Twig Com: Acquired the TWIG tracking device business from GeoSentric
Glossary
active units installed. Other significant players include European companies such as Vehco, Navman Wireless and Trafficmaster and international players like Trimble and Qualcomm from the US and the South African telematics providers Digicore and MiX Telematics. All major truck manufacturers on the European market offer OEM telematics solutions as a part of their product portfolio. MercedesBenz, Volvo and Scania launched their first products in the 1990s and followed by MAN in 2000, Renault Trucks in 2004, DAF Trucks in 2006 and IVECO in 2008. The products are all supporting the FMS standard and can generally be deployed in mixed fleets even if some functionality can be brand-specific. A major trend in the past three years has been the announcement of solutions for remote downloading of digital tachograph data and more advanced functionalities for eco-driving. The consolidation trend in Europe has been accelerating in the past 18 months with a total of nine major M&A activities. Francisco Partners, a global technology-focused private equity firm, acquired Cybit in January 2010 in a deal worth about 28 million. This deal was later followed by the acquisition of Masternaut in April 2011 forming the leading player in Europe from the Masternaut and Cybit operations while keeping the Masternaut brand. Trafficmaster was acquired by Vector Capital in June 2010 and subsequently delisted from the London Stock Exchange. In July 2010, Trimble acquired Punch Telematix focusing on the heavy trucks segment in a transaction worth 13.5 million strengthening Trimbles position in mainland Europe considerable. Digicore acquired in the same month Minorplanet in the UK along with the associated businesses in the Netherlands, Belgium and Germany. A part of Datatronics in Spain Datatronics Mobility was acquired by French Sedimap Group in October 2010. Another recent acquisition was done by Vehco in Sweden that acquired Elomobile in France in March 2011. Vehco is the market leader in the Nordics with new ambitions to be a major European player expanding into new countries. The latest transaction was done in June 2011 when Transics acquired the European activities of CarrierWeb.
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6.1.6 6.1.7 6.1.8 6.1.9 6.1.10 6.1.11 6.1.12 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 6.2.10 6.2.11 6.2.12 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 6.3.6 6.3.7 6.3.8 6.3.9 6.3.10 6.4 6.4.1 6.4.2 6.4.3 6.4.4 6.4.5 6.4.6 6.5 6.5.1 6.5.2 6.5.3 6.5.4 6.5.5 6.5.6 6.5.7 6.5.8 6.5.9 6.5.10 6.5.11 6.5.12 6.5.13
IT Mobile Micpoint Mobile Devices OCEAN Orange Business Services RAM Mobile Data Traqueur Germany and Central Europe Autoguard CVS Mobile ETA Automatizari Industriale Euro Telematik Falcom Finder IAV Products Idem Mobile Objects SECAR Telargo Yellowfox The Mediterranean Cefin Systems Cobra Automotive Technologies Datatronics Mobility Detector Ecutronic G4S Telematix Loqus MobiVision Pointer Telocation Tecmic Nordic countries Aplicom Consafe Logistics Fleet 101 GateHouse Locus PocketMobile UK and Ireland Aeromark APD Communications Blue Tree Systems Celtrak FleetMatics GreenRoad Isotrak Matrix Telematics Microlise Quartix TRACKER Network Trakm8 Transpoco
Glossary
in 2015. In Latin America, the number of fleet management systems in use is projected to increase from 0.9 million units in 2010, growing at a CAGR of 20.6 percent to reach 2.3 million units in 2015. The penetration rate among non-privately owned commercial vehicles in the region is estimated to increase from 4.5 percent in 2010 to 11.6 percent in 2015. The market leaders on the fleet management market in the Americas include a range of different actors. Qualcomm Enterprise Services is ranked as the largest player, with an estimated total installed base of approximately 350,000 units in North and Latin America. The companys solutions are targeted at heavy trucks, where the main competitors in North America are XATA and PeopleNet, with approximately 110,000 units installed each. Actors with substantial business within service fleets include FleetMatics, Networkfleet and Wireless Matrix. Other actors often have a broader market scope, covering both light and heavy vehicles. Examples include Telogis, Trafficmaster/ Teletrac, WebTech Wireless and Trimble. Major Brazilian providers include Autotrac, Zatix and OnixSat, each having estimated installed bases in the range of 50,00085,000 units. Other notable actors in Latin America include Copiloto Satelital in Mexico, Satrack in Colombia and Tastets System in Chile, each holding important positions in their respective countries. A number of manufacturers of commercial vehicles active in the Americas offer OEM telematics solutions as part of their product portfolio. Volvo Link has been on the market since 2002, while Fords Crew Chief was launched in 2009, the same year as Daimlers FleetBoard system was released on the Brazilian market. Hino Insight was announced in 2011, as was the Daimler brand Freightliners factory-installation of telematics hardware from Telogis. MAN Latin America offers the VOLKSNET solution in collaboration with a Brazilian aftermarket provider, while IVECO has developed a fleet management solution especially for the Latin American market. Fleet management solutions from OEMs have not been particularly successful in the Americas, but are expected to increase in importance in the coming years.
Who are the leading international and regional providers of aftermarket fleet management solutions in the Americas? What offerings are available from truck and construction equipment OEMs? How will the regulatory developments in the Americas affect the fleet management industry? What differences are there between the North and Latin American markets? How will the commercial vehicle telematics industry evolve in the future?
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Competitive environment Technology environment Value chain analysis Telematics industry players Automotive industry players Telecom industry players IT industry players Future industry trends
6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.1.9 6.1.10 6.1.11 6.1.12 6.1.13 6.1.14 6.1.15 6.1.16 6.1.17 6.1.18 6.1.19 6.1.20 6.1.21 6.1.22 6.1.23 6.1.24 6.1.25 6.1.26 6.1.27 6.1.28 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 6.2.10 6.2.11 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 6.3.6
Celtrak Discrete Wireless FieldLogix Fleet Management Solutions Fleetilla FleetMatics Geotab GreenRoad International Telematics JJ Keller Matrix Telematics Microlise Navtrak Networkfleet PeopleNet Rand McNally and DriverTech SafeFreight SkyBitz Synovia TechnoCom TeleNav TransCore Wireless Matrix XATA Zonar Systems Latin America Autotrac Copiloto Satelital Global Track Grupo UDA High Performance Solutions OnixSat Pointer Telocation Sascar Satrack Tastets System Zatix Hardware providers Calamp Digi International Morey Phoenix International Quake Global Redtail Telematics
Glossary
tablets, together with mobile PCs, will be the major product categories embracing embedded cellular connectivity in terms of shipped volumes. Berg Insight estimates that 22 million connected consumer devices were shipped in 2010 and forecasts that this number will almost double during 2011 to reach 39 million units. In 2015, Berg Insight forecasts that more than 270 million consumer devices with embedded cellular connectivity will be shipped and that mobile PCs, tablets, e-readers and PNDs then will have substantial cellular attach rates with figures around or above 50 percent. Handheld gaming consoles will also be a product category for cellular connectivity to count on due to the introduction of the next generation of Sonys handheld gaming console with embedded 3G at the end of 2011. Berg Insight predicts that portable media players and digital cameras with cellular capabilities will be launched in the upcoming years, but these product categories will have to wait for after 2015 before embedded connectivity becomes a commodity. Continuously decreasing prices of cellular modules and chipsets are important factors for growth on the connectivity market. The deployments of high-speed cellular networks such as HSPA+ and LTE on most markets globally are another important driver enabling bandwidth-hungry applications. Simplified certification procedures of new devices with embedded cellular connectivity are also beneficial to the market. High profile marketing of the increasing number of available devices with embedded connectivity such as popular Internet tablets heightens consumer awareness and further illustrates the benefits with cellular connectivity. The telecom industry is depending on multiple connections per consumer for growth but if a majority of consumers is going to consider having multiple devices with cellular connection, a great deal of business model innovation is required. In order for the wireless consumer device market to take off, prices on mobile data have to decrease and subscription fees for every single connection need to be lowered substantially. Instead, every consumer can open up to having multiple connections, which will still allow for an increased total ARPU.
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Annual shipments of consumer devices with embedded cellular connectivity, million units (World 20092015)
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3.2.3 Connectivity is a core feature of Internet tablets and smartbooks 3.3 Personal computing vendor profiles 3.3.1 Hewlett-Packard 3.3.2 Acer 3.3.3 Dell 3.3.4 Toshiba 3.3.5 Lenovo 3.3.6 Asus
6 Automotive
6.1 Consumer telematics applications 6.2 Personal navigation devices 6.2.1 Connected personal navigation devices enable new services 6.2.2 Navigation on converged devices increasingly popular 6.3 Internet connected car solutions 6.3.1 The ng Connect Program: LTE Connected Car 6.3.2 Audi: 3G Internet connection now available on select vehicles 6.3.3 Autonet Mobile: Wi-Fi hotspot for the car 6.3.4 Ford SYNC: Surpasses 3 million users 6.3.5 Continental Autolinq: Connectivity platform based on Android 6.3.6 Hughes Telematics Cocero: Whitelabel telematics for vehicle OEMs 6.4 Vendor profiles 6.4.1 TomTom 6.4.2 Garmin 6.4.3 NAVIGON 6.4.4 Coyote System
5 Imaging
5.1 Digital still cameras 5.1.1 Digital cameras face increasing competition from mobile phones 5.1.2 Digital cameras and cellular connectivity 5.2 Digital photo frames 5.2.1 Digital photo frames and cellular connectivity 5.3 Vendor Profiles 5.3.1 Canon 5.3.2 Nikon 5.3.3 Olympus 5.3.4 Panasonic 5.3.5 Eastman Kodak Company
3 Personal Computing
3.1 Mobile PCs 3.1.1 Notebooks and netbooks drive PC growth worldwide 3.1.2 Adoption rate of connected notebooks has grown slower than anticipated 3.2 Internet tablets and smartbooks 3.2.1 New generation of tablets use smartphone technology 3.2.2 The fledgling Internet tablet market attracts new vendors
Glossary
mHealth and Home Monitoring is the third consecutive report from Berg Insight that gives first-hand insights into the adoption of wireless solutions for health monitoring. This strategic research report from Berg Insight provides you with 120 pages of unique business intelligence including 5-year industry forecasts and expert commentary to base your business decisions.
Bosch, Honeywell and Philips, or small specialist telehealth companies such as Cardiocom, iMetrikus, MedApps and SHL Telemedicine. Many medical device companies are also active in sales of devices and services focusing on specific vital signs or medical conditions. mHealth has also attracted the interest of many of the leading players in the telecom and IT industries. Business opportunities exist in offering connectivity and data centre infrastructure and services for service providers and device manufacturers that provide home medical monitoring services directly to patients or caregivers. Moreover, a growing number of application developers have released health and wellness apps for smartphones. Common app types include BMI and calorie calculators, diet guides, exercise guides and sport tracking apps. There are also many medical reference and chronic disease management apps available. In the future, smartphones are likely to be the primary monitoring device for many patients. More and more vital sign meters can be connected to handsets or PCs using for instance Bluetooth. The adoption of out-of-hospital wireless monitoring in healthcare is driven by a wide range of incentives, related to everything from demographics and technology development to new advancements in medical treatment. However, there are also challenges such as the financing of wireless solutions by what is at large an underfunded healthcare sector. In order to receive reimbursement, suppliers of medical products not only have to prove their worth in a clinical perspective, but also in an economical perspective. With rising healthcare costs, there is an increasing focus on early diagnosis and home treatment potentially enabled by new technology. Several potential catalysts could speed up the adoption of cellular communication for healthcare monitoring purposes. These include increasing monitoring during clinical trials, insurance company requirements and growing popularity for non-prescribed medical monitoring.
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3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.3 3.3.1 3.3.2 3.3.3 3.3.4 3.4 3.4.1 3.4.2
Medical monitoring devices Cardiac monitoring Blood pressure monitoring Blood coagulation monitoring Blood oxygen level monitoring Glucose monitoring Lipid monitoring Sleep monitoring Breath monitoring Regulatory environment Regulatory environment in Europe Regulatory environment in the US Regulatory environment on other major markets International standardisation Wireless M2M technology Chipsets, modules and terminals M2M network services
4.6.4 4.6.5 4.6.6 4.6.7 4.6.8 4.6.9 4.6.10 4.7 4.7.1 4.7.2 4.7.3 4.7.4 4.7.5 4.8 4.8.1 4.8.2 4.8.3
Medical International Research Midmark Ndd Medizintechnik nSpire Health SDI Diagnostics Sibelmed Welch Allyn Glucose level monitoring Abbott Laboratories Bayer Healthcare Johnson & Johnson Roche DexCom Lipid monitoring CardioChek Apex Biotechnology Biomedix
Glossary
The Global Wireless M2M Market is the third consecutive report analysing the latest market developments in all regions of the world. This strategic research report from Berg Insight provides you with 180 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
the industry for 163 million in June 2010. In the aftermath, Novatel Wireless instead turned to Enfora and entered an agreement to acquire the company for 47 million in November 2010. Two trends in product development were the extension of M2M module ranges with low-cost, automotive and 3G/4G devices and an increasing focus on software solutions. High-speed HSPA modules became more widely available and at the end of 2010 some vendors announced their first LTE devices. M2M software is becoming an increasingly important part of the product mix for traditional hardware vendors, at the same time as new specialised M2M software companies strengthen their role in the ecosystem. M2M and connected devices are widely recognised as key future growth markets among the leading players in the mobile telecommunications industry. The top US operators Verizon Wireless and AT&T were the largest providers of M2M connectivity services at the end of Q3-2010, having nearly 8 million connections each. AT&T reported the highest year-on-year growth rate of 137 percent, the direct result of a strategic initiative launched in late 2008. Behind them Vodafone has accumulated roughly 7 million M2M connections across its global operations. China Mobile reported 5 million M2M devices on its network in mid-2010 and is currently adding around half a million new connections each quarter. T-Mobile, Telefnica and Telenor have emerged as major international M2M communication providers having between 35 million connections each. One of the cornerstones in mobile operator strategies for addressing the M2M market is the deployment of an M2M service delivery platform. Jasper Wireless has emerged as the leading player in this field, supplying its platform to among others AT&T, Amrica Mvil, KPN, Telefnica, Telstra and Vimpelcom. Vodafone is in the process of rolling out its GDSP M2M platform across its global footprint and Verizon Wireless has implemented an M2M platform from its nPhase joint-venture with Qualcomm. Other mobile operators developing proprietary M2M platforms include Orange, Telenor and Sprint.
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2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 2.3.9 2.4 2.4.1 2.4.2 2.4.3
M2M platform and software providers Amplia Axeda Comarch Jasper Wireless Logica nPhase Red Bend SmartTrust Wyless Industry analysis Profitability Industry consolidation New focus on M2M software and integrated solutions 2.4.4 Consumer devices accelerate adoption of 3G/4G wireless technologies
3.4 Industry analysis 3.4.1 Top global telecom groups focus on embedded connectivity to drive growth 3.4.2 Rush to deploy M2M service delivery platforms 3.4.3 Operator M2M organisations expand their international presence 3.4.4 New focus on consumer devices 3.4.5 Channel partners have a key role in the M2M connectivity sales process
Glossary
increase of OEM systems in preparation for the full scale introduction of eCall. By 2015 the pan-European safety system is anticipated to generate shipments of about 15 million OEM telematics units and push the total number of active subscribers to 28.7 million in 2015. Already in 2012 OEM systems are forecasted to catch up with aftermarket systems in terms of shipments and active subscribers. eCall and other OEM initiatives are also expected to curb the growth for aftermarket systems. Until now OEM telematics propositions have so far largely failed to make a significant impression on the European market. Availability is still restricted to a handful of brands and models on selected markets. PSA and BMW are still the most active players in the market, bundling telematics services with navigation, audio and Bluetooth handsfree products. Recently they have upgraded and extended their offerings to cover most of Western Europe. PSA was also the first car manufacturer to have introduced an eCall device as a standard feature on selected models from 2010. Fiat, Volvo Cars and premium brands such as Porsche, Jaguar and Land Rover have also been active on the market for some time. In late 2011, Berg Insight anticipates that additional brands will launch OEM telematics solutions on the European market in response to the eCall intiative within the EU. The European Commission has a strong commitment to introducing eCall as a standard feature in all new cars and recently set 2014 as the new target date for realising this vision through regulations if nessecary. The aftermarket telematics market is now recovering from the economic crisis. Particularly SVR product sales are linked to the demand for exclusive cars and were affected by lower car sales in this segment during 2009. The adoption of motor insurance telematics has slowed down somewhat as the initial success in Italy proved difficult to transfer to additional markets. Insurance providers are however now established as an important distribution channel for aftermarket telematics providers in a number of countries and Octo Telematics, which first developed it, is firmly established as the leading supplier.
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How is the OEM telematics value chain evolving? What are the current car telematics propositions from Europes main car brands?
Table of Contents
1 Passenger cars in Europe
1.1 1.2 1.3 1.4 1.5 1.5.1 1.5.2 1.5.3 1.6 1.6.1 1.6.2 Introduction Car manufacturers Leasing and rental companies Motor insurance Emergency services and assistance providers PSAP and SOC organisations Assistance providers Automobile clubs Passenger cars and the environment Electric vehicles Hybrid electric vehicles
4.2.8 4.2.9 4.2.10 4.2.11 4.2.12 4.2.13 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5
SECAR TRACKER Network Traqueur Trafficmaster Viasat Group Other vehicle tracking vendors Insurance industry telematics initiatives Italy: Motor insurance providers adopt telematics to combat theft and fraud Spain: MAPFRE offers YCar targeting 1830 year olds United Kingdom: Coverbox PAYD has fitted 7,500 cars after one year United Kingdom: Insure the Box new entrant with PAYD scheme United Kingdom: Thatcham CAT 5 and TQA vehicle security standards
Navigon Medion MyGuide Americas Coyote System Mobile Devices Mobile navigation services
Glossary
Furthermore there are numerous projects among medium sized and small utilities throughout the country. National and state policies play a major role in shaping developments. The US market received a major boost through the Obama Administrations American Recovery and Reinvestment Act that includes US$ 43 billion ear-marked for the energy sector plus tax incentives. A number of states, including California, Texas, Florida and Pennsylvania have approved utility plans for massive smart meter deployments, while others such as Virginia have turned down major project proposals. In Canada, the states of Ontario and British Columbia have introduced a mandatory requirement for smart electricity meters for all customers by 2010 and 2012 respectively. BC Hydro will start Canadas largest project to date in 2010, involving 1.8 million metering points. Asia-Pacific is in an early phase of the adoption of smart metering technology. Large-scale rollouts to residential customers have only recently begun in Japan and South Korea, while China remains in the piloting stage. National and industry leaders do however have clear visions for the adoption of the technology over the course of this decade. South Korea has adopted a national plan for the construction of a smart grid by 2020. Japan already has the worlds most advanced power grid monitoring systems in place and several of the leading utilities have announced plans for smart meter deployments over the next ten years. China is investing massively in the expansion of the nations energy infrastructure to keep up with the rapidly increasing power demand. State Grid Corporation of China is preparing for a nationwide rollout of smart meters to all electricity customers from the mid-2010s. Australia and New Zealand began massive installations of smart meters at the end of the last decade. Adoption is driven by regulations in the case of Australia and by the main industry players in New Zealand.
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What is driving adoption of smart meters in Australia and New Zealand? Who are leading the race for market leadership in North America?
South Korea USA & Canada Japan Australia & New Zealand China
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Which are the main providers of PLC and wireless communication technology for smart meters? Who are the leading suppliers of smart metering solutions in China?
Projected penetration rates for smart electricity metering in North America and Asia-Pacific
Table of Contents
3.1.5 3.1.6 3.1.7 3.1.8 3.1.9 3.1.10 3.1.11 3.1.12 3.1.13 3.1.14 3.1.15 3.1.16 3.1.17 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.2.9 3.2.10 3.2.11 3.2.12 3.2.13 3.3 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6
EDMI GE Energy Hangzhou PAX Electronic Holley Metering Jiangsu Linyang LS Industrial Systems Osaki Electric Sanxing Electric Schneider Electric Sensus Wasion Second tier Chinese meter vendors European meter vendors Smart metering communication solution providers Aclara Arc Innovations Cooper Power Systems Comverge Echelon Grid Net KDN NURI Telecom Omni System Silver Spring Networks SmartSynch Tantalus Trilliant MDMS and middleware vendors Ecologic Analytics eMeter EnergyICT NorthStar Utilities Solutions Oracle SAP
Regional overview: Northeast Regional overview: Midwest Regional overview: South Regional overview: West Canada Electricity and gas utilities Ontarios smart meter rollout Smart metering initiatives in other provinces
6 Asia-Pacific
6.1 6.2 6.2.1 6.2.2 6.3 6.3.1 6.3.2 6.4 6.4.1 6.4.2 6.5 6.5.1 6.5.2 6.6 6.6.1 6.6.2 Regional summary China Electricity industry structure Smart grid and metering initiatives Japan Electricity and gas utility industry structure Smart grid and metering initiatives South Korea Electricity and gas utility industry structure National smart grid plan for 2020 Australia Electricity and gas utility industry structure Regulation driven deployments of smart meters New Zealand Electricity industry structure Industry driven deployments of smart meters
7 Case studies
7.1 7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.2 7.2.1 7.2.2 7.2.3 7.3 7.3.1 7.3.2 7.3.3 North America Pacific Gas & Electric American Electric Power Southern Company CenterPoint Energy Tennessee Valley Authority Hydro One East Asia State Grid Corporation of China Kansai Electric Power KEPCO Australia and New Zealand Jemena and UED SP AusNet Vector
4 Market analysis
4.1 4.1.1 4.1.2 4.1.3 4.2 4.2.1 4.2.2 4.2.3 4.3 4.3.1 4.3.2 4.3.3 North America Market forecast Technology trends Industry analysis East Asia Market forecast Technology trends Industry analysis Australia and New Zealand Market forecast Technology trends Industry analysis
5 North America
5.1 5.2 5.2.1 5.2.2 Regional summary United States Electricity and gas utilities Federal smart grid and metering initiatives
Glossary
The European Wireless M2M Market is the third consecutive report analysing the market for mobile network machine-tomachine communication in Europe. This strategic research report from Berg Insight provides you with 150 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
What are the latest trends on the European wireless M2M Market?
Berg Insight estimates that the number of active SIM-cards in use for wireless M2M applications in EU23+2 will reach 14.1 million at the end of 2008. This means total number of mobile network connections used by machines now equal that of a medium-sized European country. Until 2013, the number of wireless M2M connections is forecasted to grow at a compound annual growth rate of 32.9 percent, reaching 58.6 million at the end of the period. Currently energy meters are estimated to account for the largest installed base, ahead of private and commercial vehicles. By 2013 the automotive sector is projected to account for 61 percent of the number of wireless M2M connections in Europe. Energy meters will remain the second largest application area ahead of security alarms and POS-terminals. Growing adoption of remote equipment monitoring will also generate a substantial number of wireless M2M connections for other types of assets and products from virtually all manufacturing industries. In light of the recent economic turmoil it is however important to note that the wireless M2M market is sensitive to fluctuations in shipments of products such as motor vehicles, energy meters, security alarms, POS-terminals and miscellaneous machinery and equipment. Adoption of wireless M2M has been growing rapidly across Europe in the recent years. Berg Insight estimates that the number of active SIM-cards in use for wireless M2M applications in EU23+2 was 12.3 million at the end of Q2-2008. This corresponded to 2.2 percent of the total number of SIM-cards in the region. Sweden and Finland stood out the rest of the European countries with M2M accounting for 13.4 percent and 7.7 percent respectively of all mobile connections. Other countries with high ratios of M2M connections were Denmark with 3.8 percent and Spain with 2.7 percent. All other countries were in the range of 12 percent. In absolute terms, Italy constituted the largest geographical market with 1.9 million connections, followed by Germany and the UK with 1.8 million and 1.7 million respectively. Other markets with one million connections or more were Sweden, Spain and France. Even if wireless M2M is a B2B market in the sense that products and services are sold to enterprise customers, the underlying demand is in fact to a large extent driven by consumer markets. That is particularly true for the largest projects that involve hundred thousands of devices. Nine out of the ten largest wireless M2M deployments in Europe are consumer-oriented. These include smart metering projects in Sweden, Finland, Italy and the Netherlands; pan-European vehicle tracking solutions for private vehicles; OEM car telematics solutions from major car brands and the largest solution for monitored security alarms in Europe. Only the German truck road charging system Toll Collect cannot be classified as a consumer-oriented application. Berg Insight believes that the wireless M2M network service value chain will undergo a significant transformation in the coming years. Until recently the worlds largest mobile operator groups have shown limited interest in M2M. Top global players such as Vodafone, Telefnica and Deutsche Telekom have not yet formulated any official group strategies for exploiting the new market opportunities. Current business development and marketing efforts are primarily being made by relatively small teams on individual markets. One notable exception is Telenor which is actively addressing the international M2M market through the new business unit Telenor Connexion, launched in October 2008.
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Table of Contents
3.2 Mobile operator market shares 3.3 Vertical market trends 3.3.1 Car telematics: Anticipated slowdown before eCall comes to the rescue 3.3.2 Fleet management: Mixed impact from economic downturn 3.3.3 Smart metering: Regulation driven rollouts to go ahead as planned 3.3.4 Other applications: Poor investment climate to hamper growth 3.4 Regional market trends 3.4.1 Benelux and France 3.4.2 Central Eastern Europe 3.4.3 Germany, Switzerland and Austria 3.4.4 Italy, Spain and Portugal 3.4.5 Northern Europe 3.4.6 UK and Ireland 3.5 Industry trends and recommendations 3.5.1 Building a sustainable mobile data business 3.5.2 Business models and pricing 3.5.3 Industry transformation trends
5.3.5 Minorplanet: Renewed international focus after financial turnaround 5.3.6 MiX Telematics: New global brand for telematics services 5.3.7 Navman Wireless: Fast growing international fleet management provider 5.3.8 Qualcomm Enterprise Services: Global provider of integrated M2M solutions 5.3.9 TomTom WORK: Achieved 50,000 subscribers milestone in Q2-2008 5.3.10 Transics: Pan-European heavy truck and transport telematics provider 5.4 OEM fleet telematics propositions 5.4.1 Daimler FleetBoard 5.4.2 Volvo Dynafleet 5.4.3 OEM van fleet telematics propositions in the UK
4 Private vehicles
4.1 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.3 4.3.1 4.3.2 4.3.3 4.4 4.4.1 4.4.2 4.4.3 4.5 4.5.1 4.5.2 The European private vehicle market Passenger car telematics eCall and driver assistance Stolen vehicle recovery Motor insurance telematics Leasing and rental fleet management Vehicle diagnostics Aftermarket vehicle tracking solutions Octo Telematics: The European leader in motor insurance telematics Cobra Automotive Technologies: PanEuropean SVR provider LoJack distributors: TRACKER, Traqueur and Detector OEM car telematics solutions BMW ConnectedDrive PSA RT3/RT4/Navidrive Volvo On Call The European eCall initiative A pending political process Standardisation work
5 Commercial vehicles
5.1 The European commercial vehicle market 5.2 Fleet management solutions 5.2.1 Vehicle management 5.2.2 Driver management 5.2.3 Transport management 5.2.4 Mobile workforce management 5.2.5 Electronic toll collection 5.3 Key market players 5.3.1 Cybit: Growing through acquisitions 5.3.2 Digicore: A global vehicle tracking solution provider 5.3.3 Garmin: Taking an indirect approach to the fleet management market 5.3.4 Masternaut: The European fleet telematics leader
Glossary
Several years of fast growth attracted numerous actors from multiple industries to the PND market. More than 100 brands have been available on the European and North American markets in the past. However, as a result of intensified competition and slowing sales growth, a number of players have already exited the PND market. Others, including MiTAC and United Navigation have driven market consolidation through acquisitions. At the same time, major device vendors and software developers including Garmin, TomTom and NavNGo increasingly focus on related products and services, including in-dash navigation systems and handset navigation solutions. New services and features are becoming more important as an increasing share of PND sales come from replacement devices for existing PND users. Many PND vendors are now developing online services for PNDs with cellular connectivity. Connected PNDs can access dynamic content such as local search, real-time traffic flow information and speed camera locations, as well as local fuel prices and parking space availability. These services can improve the value of PNDs in everyday situations in both familiar environments as well as on trips to new places. Besides leading vendors such as Garmin, TomTom and NAVIGON that offer a portfolio of connected devices in several price segments in multiple countries, several smaller vendors have also introduced connected PNDs in select markets. The content categories offered as part of connected services are roughly the same today as in 2009. However, the pricing has changed. During 2010, several vendors have reduced the cost of service plans by up to 50 percent. Services now typically cost 50 per year. Moreover, the free service trials bundled with new PNDs have been extended from 3 or 12 months to 1218 months. The cost of new connected PNDs is also declining. The cheapest connected PNDs introduced in 2010 typically cost 1030 percent less than similar models launched in 2009.
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How will personal navigation devices and services evolve in the future? How can PND vendors drive sales of replacement devices in maturing markets? How will the conventional PNDs stand up to the competition from in-dash systems and smartphones? How are device manufacturers such as Garmin, Navigon and TomTom positioning themselves?
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What will be the winning formula for connected PNDs and associated services? Which navigation related value-added services appeal to consumers?
Table of Contents
1 Personal navigation solutions
1.1 Vehicle fleets and navigation system penetration 1.1.1 The European passenger car market 1.1.2 The North American passenger car and light truck market 1.2 Overview of personal navigation systems and services 1.2.1 Factory installed in-dash navigation and telematics solutions 1.2.2 Aftermarket in-dash navigation and telematics systems 1.2.3 Personal Navigation Devices 1.2.4 Smartphones and mobile phones 1.2.5 Internet tablets and netbooks 1.3 PND categories and segments 1.3.1 Entry-level PNDs offer increasing value for money 1.3.2 Mid-range PNDs now include text-tospeech and lane guidance as standard 1.3.3 High-end PNDs are gaining new visual features to aid orientation 1.3.4 Connected PNDs 1.3.5 Embedded PNDs 1.3.6 Multimode and rugged PNDs 1.3.7 Truck PNDs
4.3 Text-to-speech and automatic speech recognition software 4.3.1 Loquendo 4.3.2 Nuance Communications 4.3.3 SVOX 4.3.4 VoiceBox Technologies
Glossary
marketed by a mobile operator and 15 percent used a service bundled with a GPS handset. The arrival of app stores has created a new channel to reach a broad audience of handset users. More than 15 percent of active users of mobile navigation services have downloaded their application from an application store. Common propositions for off-board navigation services include daily, monthly and yearly subscriptions. On-board apps for smartphones are usually sold for a one-time fee entitling perpetual use. However, Google and Nokias launch of free services have forced other actors to adjust their business models. During 2010, several operators have reduced prices for monthly and yearly subscriptions by 30 to 50 percent. Many operators are also introducing service bundles that include navigation with voice and data subscriptions. At the same time, service providers and operators try to differentiate their services by adding unique local content and features such as yellow pages, restaurant and event guides. Some operators have even started to offer basic navigation services to all subscribers for free without requiring purchase of service plans. The intent is to generate revenues from upselling features, complementary services and content through in-app shops. By ensuring broad availability and high usage, operators can also monetise services through higher adoption of data plans and possibly advertising revenues in the future. The number of active navigation service users, i.e. those that have used a navigation service at least once per month, reached an estimated 44 million worldwide at the end of Q2-2010. Berg Insight forecasts the number of active users to surpass 60 million in Europe and 50 million in North America respectively in 2015. In other parts of the world, handset-based navigation services are likely to become the main form of personal navigation solution already in the next few years and total active users is expected to reach 85 million at the end of 2015.
How are business models for mobile navigation evolving? How are device manufacturers such as Nokia, Garmin and TomTom positioning themselves on the growing mobile navigation market? Will turn-by-turn navigation services for mobile phones replace portable navigation devices? Which are the leading developers of turn-by-turn navigation applications for mobile phones?
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Which mobile operators have introduced mobile turn-byturn navigation services? How will mobile navigation services evolve in the future?
Table of Contents
1 Mobile navigation solutions
1.1 Portable navigation solutions 1.1.1 Evolution of portable navigation systems 1.1.2 The performance gap between PNDs and smartphones is closing 1.2 Enabling technologies 1.2.1 Satellite positioning technologies 1.2.2 Navigation software platforms 1.2.3 Handset operating systems and software platforms 1.3 Handset segments and device categories 1.3.1 Handset segments 1.3.2 Handset form factors and categories 1.3.3 GPS handset trends 1.4 Handset-based mapping and navigation service trends 1.4.1 Mobile local search and information services 1.4.2 Mapping and routing services 1.4.3 Turn-by-turn navigation services 1.5 Navigation service distribution channels and business models 1.5.1 Mobile network operators 1.5.2 Handset vendors 1.5.3 Search and mapping service providers 1.5.4 On-device application stores provide a new channel to the market 1.5.5 Active handset navigation users
3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 3.1.9 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.2.9 3.2.10 3.2.11 3.2.12
Geolife Intrinsyc Software NAVIGON NavNGo NDrive ROUTE 66 Sygic TomTom Server-based navigation solution developers amAze GPS Appello Systems deCarta Fullpower Technologies NaviExpert NAVITIME Nokia Ovi Maps TeleCommunication Systems TeleNav Telmap UbiEst Yapp Mobile
Glossary
What are the latest trends on the European LBS platforms and middleware market?
Mobile location-based services are applications and services that in some way utilise the geographic location of a handset. Adding location information can enhance an existing service or enable entirely new applications. Countless consumer and corporate services that make use of automatic location of handsets or other assets have been launched in Europe. Mobile location platforms enable mobile network operators to offer location-based services to end-users. Location platforms typically comprise several enabling servers and software extensions to network infrastructure components that together can calculate the position of a handset and mediate the data to a querying application. Many mobile operators also deploy location middleware that functions as a mediator between the location platform, applications and support systems and more importantly, provides centralised control of privacy settings for all applications. Location technologies can be divided into handset-based technologies, such as GPS, with intelligence in the handset, network-based technologies for instance Cell-ID, Enhanced Cell-ID and U-TDOA, with intelligence in the network and hybrid technologies, for instance AGPS, with intelligence in the handset and the network. Handset-based and hybrid technologies often require additional hardware and software in the handset, while network-based technologies require deployment of hardware and software in the mobile network. Operators need to consider several technical and economical aspects when choosing what location technologies to deploy for emergency and commercial services. Each technology has different characteristics and ultimately, no single technology performs best in every aspect. The E911 mandate was a major driver behind the development of location platforms for the US market. In Europe, platform vendors instead focused on commercial services due to the lack of a clear mandate for emergency services. Many operators were interested in acquiring location platforms to deploy services and the rollout accelerated during 2000 and 2001. In the first deployment phase, lasting from 2000 to 2003, operators invested in platforms and ready-made location
services. The results were in many cases limited uptake whereby many operators lost interest in LBS as a mass-market proposition. A new wave of increasing demand for location platforms followed after 2005 when the European Commission started to enforce the European E112 emergency caller location regulations. Today, the demand for new platforms has slowed again as most operators have installed at least basic location platforms that comply with current regulations. In the future, many operators can be expected to acquire system upgrades that will enable higher capacity and improved location accuracy. Demand is likely to come from stricter location accuracy requirements in future emergency call and lawful intercept mandates imposed on mobile operators as location technologies mature and costs decline. Moreover, along with increasing interest in services and applications for mobile phones in general, location services are now experiencing a comeback. Much of the interest comes from third party developers and service providers that want to add location to existing services and applications, leveraging the fact that operators are moving towards opening their platforms. Although A-GPS and the SUPL A-GPS standard receive much of the attention in conjunction with the growing number of GPS handsets being introduced, network-based location methods are also likely to experience an upswing. Emergency services, lawful intercept and many commercial services need to be able to locate any handset and therefore favour network-based methods. Moreover, A-GPS services also need complementary hybrid and fallback methods in environments where GPS cannot operate alone. Berg Insight forecasts total annual revenues in Europe for GMLC and SMLC mobile location platforms, including SUPL A-GPS servers and location middleware, to grow from about 18 million in 2009 to 35 million in 2015. These revenues comprise integration fees and licenses for new platform deployments as well as capacity and technology upgrades, maintenance and associated services.
How will lawful intercept requirements affect technology choice for operators? Which vendors provide location platforms and middleware today?
Table of Contents
2.1.4 2.1.5 2.1.6 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.3.1 2.3.2 2.3.3 2.4
OMA SUPL 1.0 OMA SUPL 2.0 OMA SUPL 3.0 Network-based positioning technologies Cell-ID Cell-ID+TA, Cell-ID+RTT and E-CID E-OTD and OTDOA Uplink Time Difference of Arrival (U-TDOA) GPS, assisted GPS and hybrid location technologies Assisted GPS GNSS: Global Navigation Satellite Systems Hybrid and mixed mode technologies Theoretical limitations of positioning technologies
3 Commercial deployments
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3 Group KPN Group Orange Group Telecom Italia Mobile Telefnica Group Telenor Group TeliaSonera Group T-Mobile Group Vodafone Group Other mobile operators
Glossary
2 Technology overview
2.1 Mobile network location platforms 2.1.1 Location architecture for GSM/UMTS networks 2.1.2 Location architecture for LTE networks 2.1.3 Control Plane and User Plane location platforms
EU E112 regulations that mandate caller location for emergency calls have driven operators to deploy positioning technology in their networks. Mobile operators launch commercial LBS and open their platforms to third party developers and location aggregators to leverage these investments. Some service providers, such as Google, compile their own databases of cell tower locations that can be used as free alternatives. Moreover, all leading handset vendors have now introduced GPS-enabled handsets in Europe and more than 100 models were available at the end of 2009. Shipments are growing rapidly as ever more low cost models feature GPS. The installed base of GPS handsets is approaching 15 percent of total handsets in Europe. An increasing number of services are partially or fully ad-funded and advertising is becoming the main source of revenues for a growing number of mobile developers and publishers. Ad-funding is most likely to become the primary source of revenues also for many locationbased services, especially in the consumer segment. However, the mobile advertising ecosystem is still fragmented and complex. Much of the activities carried out are still essentially on an experimental stage. Mobile ad revenues are still very small compared to premium mobile service revenues. Many actors in the mobile value chain show great interest in location targeted ads. Although location can be a very valuable targeting attribute for some brands and campaigns, many other attributes are available that can be more relevant. In addition, several issues such as user privacy and pricing of location data need to be resolved before location-based ad campaigns can leave the trial stage and contribute significantly to overall revenues. Local search and social networking services are likely to become predominantly ad-funded. Other consumer service categories can be expected to remain premium services. Many operator navigation services are for instance likely to remain predominantly funded by service fees and tracking services can be expected to rely solely on premium fees. More and more service providers are also introducing one-time fees or service bundles rather than monthly subscriptions.
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How will free navigation services affect the market dynamics? What are the mobile strategies of search engines and directory publishers? How is location technology used by mobile social networks and communities? How is GPS-technology altering the conditions for tracking services in Europe?
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Which operators have introduced location-based billing services? How is location being used to add value in mobile advertising?
Table of Contents
1 Introduction to location-based services
1.1 Definition of mobile location-based services 1.2 Overview of the European mobile communications market 1.2.1 Mobile voice and data subscribers 1.2.2 Handset shipments and installed base 1.2.3 Mobile service revenues 1.3 Smartphones and application stores 1.3.1 Proliferation of mobile operating systems 1.3.2 Application stores provide a new channel to the market 1.4 Mobile LBS categories 1.4.1 Mapping and navigation services 1.4.2 Search and information services 1.4.3 Social networking and entertainment services 1.4.4 Tracking services 1.4.5 Location-based billing services 1.4.6 Other services 1.5 LBS business and revenue models 1.5.1 LBS business models 1.5.2 Pricing models for location-based services 1.6 Regulatory environment 1.6.1 European emergency call regulations and implementation 1.6.2 Legal aspects of privacy for electronic communications and LBS 1.7 Mobile network location technologies and platforms 1.7.1 Mobile network-based location technologies 1.7.2 Assisted GPS and hybrid location technologies 1.7.3 Control Plane and User Plane location platforms 1.7.4 Accuracy requirements for LBS
4.2.2 4.3 4.3.1 4.3.2 4.3.3 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6
Mobile network operator offerings Turn-by-turn navigation services Handset vendor offerings Branded software vendor and service provider offerings Mobile network operator offerings Key market players amAze GPS: Ad-sponsored navigation from LocatioNet Systems Appello Systems: White-label navigation application developer Google: Deploying free turn-by-turn navigation Nokia: Free mapping and navigation bundling with GPS handsets Telmap: Leading white-label navigation service provider in EMEA TomTom: Vertically integrated navigation solution vendor
6.4.2 Foursquare: Rewarding users for discovering their surroundings 6.4.3 Facebook: Worlds largest social network gaining mobile traction 6.4.4 Gowalla: Social networking game 6.4.5 GyPSii: Co-branded geo-location platform and social network 6.4.6 MobiLuck: Mobile chat and friendfinder 6.4.7 Rummble: Search and discover recommended places 6.4.8 Twitter: Popular micro-blogging service introduces location support 6.5 Friendfinder services 6.5.1 3Friendfinder 6.5.2 CellVision mBuddy 6.5.3 Lociloci 6.5.4 Mecomo Friends 6.6 Location-based games and geocaching 6.6.1 Creative Workline 6.6.2 MeanFreePath 6.6.3 Orbster 6.6.4 Trimble Geocache Navigator 6.7 Recreation and fitness applications 6.7.1 Fitness applications 6.7.2 Recreation applications
7 Tracking services
7.1 Business services 7.1.1 Fleet management services 7.1.2 Tracking, workforce management and lone worker protection services 7.2 Consumer services 7.2.1 People tracking services 7.2.2 Asset tracking services 7.3 Company profiles 7.3.1 Connexion2: Identicom and the SoloProtect managed lone worker service 7.3.2 Creativity Software: White-label LBS specialist 7.3.3 UbiEst: Expanding from fleet management into consumer tracking
Glossary
developing low cost smartphones with unsubsidised retail prices below 100 for launch in 2010. Smartphones costing about 50 can be available on the market in 2014. Encouraged by Apples success, major handset vendors and several leading mobile operators have now launched on-device application stores that allow users to download applications directly to their handsets. Many of these applications have some kind of support for GPS location. GPS technology for handsets has matured, offering much better performance in terms of sensitivity, power consumption, size and price than was possible a few years ago. Support for other satellite systems such as GLONASS and Galileo will also be added over time. The first handsets with receivers for GPS and GLONASS are expected to become available in 2011 and mobile phones with Galileo compatible receivers can be expected in greater numbers in 2014 when the new system will become operational. The OMA SUPL A-GPS standard has enabled lower cost deployment of A-GPS services that ensure a better and more consistent user experience necessary for the consumer market. SUPL allows deployment of A-GPS services that reduce the time-to-first-fix, lowers power consumption and enhances the sensitivity of GPS receivers. New business models have also become possible, ranging from hosted services for operators, to services deployed by handset vendors for end-users that cannot get similar services from their network operator. Besides adding support for other satellite systems that ensures more visible satellites and incrementally better performance in urban canyons, handset vendors are also starting to adopt hybrid location technologies to improve indoor performance. These technologies combine GPS with other wireless and sensor-based technologies, including Wi-Fi positioning, accelerometers, gyroscopes and electronic compasses to gradually improve performance in challenging environments where GPS signals are extremely weak or unavailable.
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1 GNSS in mobile phones
1.1 Introduction to GPS in mobile handsets 1.1.1 Global navigation satellite system technology 1.1.2 Challenges of GPS integration in mobile handsets 1.2 GPS handset value chain analysis 1.2.1 Traditional handset vendors face competition from new entrants 1.2.2 Mobile network operators show interest in smartphones and apps 1.2.3 Handset software and applications central to new user experiences 1.2.4 Reformation of the cellular chipset industry continues 1.3 Drivers and barriers to GPS integration in handsets 1.3.1 Key drivers 1.3.2 Key barriers 1.4 Overview of key handset segments 1.4.1 Main handset segments 1.4.2 Popular handset categories and form factors 1.4.3 New devices blur the line between handsets and mobile computers 1.5 GPS handset trends 1.5.1 Proliferation of GSM/WCDMA handset models 1.5.2 Best selling GPS-enabled GSM/ WCDMA handsets in 2009 1.5.3 GPS gradually becoming a standard feature in Japanese WCDMA handsets
5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.9.1 5.9.2 5.9.3 5.9.4 5.9.5 5.9.6 5.9.7 5.9.8 5.9.9 5.9.10 5.9.11 5.9.12 5.9.13 5.9.14
LG Electronics Sony Ericsson Motorola Research In Motion Apple HTC Second tier handset vendors Acer ASUSTeK Garmin Dell Fujitsu Hewlett Packard Huawei Kyocera Sanyo Telecom NEC Casio Mobile Communications Palm Panasonic Pantech Sharp Toshiba ZTE
2 Technology overview
2.1 Overview of global navigation satellite systems 2.1.1 Global Positioning System (GPS) 2.1.2 Galileo 2.1.3 GLONASS 2.1.4 Compass/Beidou 2 2.2 Mobile network location technologies and platforms 2.2.1 Mobile location technologies 2.2.2 Control Plane and User Plane location platforms 2.2.3 Location platforms and technologies in 3GPP2 standard networks 2.3 Assisted GPS and hybrid location technologies 2.3.1 Assisted GPS 2.3.2 Enhanced GPS 2.3.3 Hybrid and mixed mode technologies 2.4 GPS, cellular and wireless technology integration 2.4.1 GPS receiver functionality and architectures 2.4.2 Handset hardware and software platforms 2.4.3 Wireless connectivity technologies 2.4.4 Horizontal and vertical integration of connectivity technologies
5 Handset manufacturers
5.1 Nokia 5.2 Samsung Electronics
Glossary
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to US$ 215 billion in 2015. Asia-Pacific is expected to become the most important regional market, accounting for more than half of the total user base. The global remittance market has grown rapidly over the past decade. In 2010 remittances through formal channels amounted to US$ 440 billion, of which, developing countries received an estimated US$ 325 billion. The vast majority of these transactions are still cashto-cash transactions, but the share of digital transactions is steadily increasing. Driven by the development of mobile money systems in emerging markets, Berg Insight estimates that US$16 billion worth of international money transfers will be received with mobile phones in 2015. Similarly, US$ 5.5 billion worth of international remittances will be sent using mobile phones in 2015. International airtime transfer is a rapidly growing niche within the overall international value transfer market. It is a low margin high volume business, with a small number of leading service providers in the field. There are a large number of smaller vendors who have joined the airtime transfer market more recently. Berg Insight estimates that the total value of international airtime transfer will grow from US$ 130 million in 2010 at a CAGR of 67 percent to reach US$ 1.67 billion in 2015. Many new companies have entered the mobile money industry as technology vendors in the past year, including the likes of Ericsson, SAP and Gemalto. The competitive landscape is intense with around 70 vendors competing in the industry, of which many need to reach a critical mass of deployments over the next two years in order to stay in business in the longer term. Yet, the level of consolidation among technology vendors serving MNOs and third party service providers is high, with around 75 percent of mobile money deployments running on the platforms of five leading vendors. In contrast, the landscape among vendors providing financial institutions is highly fragmented with no clear leaders.
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How are financial institutions responding to the entry of mobile network operators in the financial services industry?
Table of Contents
3.5.5 Funds capture interfaces and payment instruments 3.5.6 Funds disbursement 3.6 Mobile remittance players 3.6.1 Money transfer offices 3.6.2 Mobile network operators 3.6.3 Platform providers and third parties 3.6.4 Financial institutions and payment processing networks 3.6.5 International airtime transfer companies 3.7 Case studies 3.7.1 Western Union is putting its bets on mobile money transfers 3.7.2 MoneyGram offers international mobile money transfers 3.7.3 MasterCards MoneySend service goes mobile 3.7.4 Remittances to M-PESA wallets in Kenya
5 Company profiles
5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.1.5 5.1.6 5.1.7 5.1.8 5.1.9 5.1.10 5.1.11 5.1.12 5.1.13 5.1.14 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 Mobile money platform providers Comviva Fundamo Gemalto Halcom MasterCard M-Com (Fiserv) Monitise MoreMagic ProgressSoft S1 Sybase 365 (SAP) Utiba YellowPepper ZTE Mobile value transfer providers eServGlobal and BICS Ericsson Ezetop Luup MoneyGram TransferTo Visa Western Union
Glossary
companies as well as SMEs. Exposure through multiple channels, digital as well as traditional, has proven to generate better outcomes than when channels are used in isolation. This goes especially for mobile, being relatively new and therefore bound to benefit from the viral effects created by campaigns spanning several media and generating attention across the population of potential customers. Numerous actors are engaging in activities related to mobile marketing. Many firms specialised in enabling mobile advertising are still relatively small, venture capital funded companies. Examples of larger players include Apple that launched its iAd platform for advertising in iPhone apps in mid-2010 and Google, having acquired ad network AdMob in 2009. Ericsson has recently increased its presence within mobile advertising through its AdMarket. Microsoft has furthemore just launched its latest mobile OS Windows Phone 7 which will offer greater opportunities for rich advertising experiences. There are a number of key takeaways from the latest developments in mobile marketing. The channel is becoming an integral part of the media mix, a progress which is eased by the increasing habitual mobile consumption exercised by consumers. Brands do however have to establish mobile strategies in order to spend wisely and capitalise on the potential the channel brings. Operators need to pay attention to the possible changes in the mobile ecosystem, where advertising can be an important future source of revenue. When it comes to mobile advertising formats, applications are currently extremely popular, but in line with the development in the PC world a shift over to the mobile web is expected. While advanced formats offer unmatched user experiences, the potential in more simple formats such as SMS are however still substantial, not the least due to the far greater reach. Finally, the integration of location-sensitivity in advertising efforts is increasing, an area which releases the full potential of the mobile channel.
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3.5 Case studies 3.5.1 South Africa prominent in SMS advertising 3.5.2 Ace Hardware drives sales through Mobile Posses idle screen solution 3.5.3 Bluetooth coupons available at major hotel chains 3.5.4 McDonalds in Japan integrates mobile coupons and contactless wallet
2 Mobile advertising
2.1 The mobile handset as an advertising platform 2.1.1 Physical characteristics of the mobile handset 2.1.2 Handset software 2.1.3 Location capabilities 2.1.4 Mobile networks and data transfer capabilities 2.1.5 Mobile Internet versus PC-based Internet 2.2 Advertising on the mobile handset 2.2.1 Deploying mobile advertising 2.2.2 Targeting mobile campaigns 2.2.3 Exploiting location technology 2.2.4 Privacy concerns 2.2.5 Pricing models and cost 2.3 The mobile advertising ecosystem 2.3.1 Advertisers 2.3.2 Ad agencies and creative designers 2.3.3 Digital ad networks 2.3.4 Technical solution providers 2.3.5 Mobile operators 2.3.6 Online media publishers and mobile application providers 2.3.7 Industry associations
5 Ad-funded applications
5.1 Mobile applications 5.1.1 Mobile games 5.1.2 Mobile map and navigation applications 5.1.3 Mobile search applications 5.1.4 Mobile music and video applications 5.1.5 Social networking applications 5.1.6 Pure advertising apps 5.2 In-app advertising 5.2.1 Apple iAd 5.2.2 RIM BlackBerry Advertising Service 5.2.3 Microsoft Windows Phone 7/Microsoft Advertising 5.2.4 Nokia OviStore in-app advertising add-on 5.2.5 Android 5.3 Case studies 5.3.1 MINI Getaway Stockholm locationbased reality game with grand price 5.3.2 Layar and Brightkite advertising in Augmented Reality 5.3.3 Poynt mobile search application which points to local businesses 5.3.4 TV channels offer mobile video services in Sweden
Glossary
The number of active mobile banking users almost doubling every year
Mobile financial services include a range of various applications and usage areas. Most of these services could be classified as mobile payments, mobile money transfer or mobile banking. The mobile handset is now established as a means for payments in certain nich es such as digital services and ticketing using premium SMS. Berg Insight believes that this type of applications will continue to grow with WAP billing and credit card payments gradually increasing their market shares. Mobile money transfer is expected to achieve a mar ket breakthrough in the coming years, generating revenues in the range of US$ 1.26.2 billion in 2015. Berg Insight also anticipates that mobile banking will become highly popular among existing Internet bank users and also become the main digital channel for retail banks in emerging markets. As a result the number of active users of mobile banking and related financial services worldwide is forecasted to increase from 55 million in 2009 to 894 million in 2015. Mobile payments refer to the utilization of mobile handsets for mak ing purchases. Traditionally, mobile payments have focused on purchasing mobile content, but over time the application area has diversified to include goods and services. Initially, premium SMS was the vehicle for payments as it offered unmatched reach and a simple process familiar to the vast majority of the subscribers. As the number of people using their phones for data services increases a range of alternative methods opens up. Today, many content pro viders are moving over to WAP billing, which offers practical advan tages and higher payout rates. Furthermore, the mobile devices are converging with PCs and a natural step is to utilize the payment methods already established on the Internet, which offer better pay out rates and do not rely on operators. These methods are primarily transactional networks and credit cards. In a long term perspective the mobile handset has also been identified as a vehicle for deliver ing contactless payments using NFC technology and we are start ing to see commercial rollouts in a number of markets. The money transfer market has grown considerably over the past years, however the current global economic downturn has con strained the remittance volumes temporarily. Still remittance is a growing market in a long term perspective, driven by a number of factors such as migration, globalization and urbanization. Many mo bile banking and payment providers are glancing at the US$ 600 billion flowing every year to developing countries, which generates about US$ 60 billion in remittance service revenues. There are over
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4 billion mobile subscribers in the world and extensive networks of airtime agents have been built up giving the mobile media un matched reach and it has been identified as a vehicle for remittance. Today, there are a number of international mobile remittance serv ices available in the US, Europe and the Gulf states. Yet, money transfer networks such as Western Union and informal value trans fer systems still dominate the market. Mobile banking is an evolution of telephone and Internet banking that provides mobile subscribers with access to standard banking services such as account information and payments. There is a ma jor difference between mobile banking for the banked population in the US and Europe compared to the unbanked population in Africa, Asia and Latin America. The services differ significantly as they fill different needs and builds upon different business models. In Eu rope the service is at the initial stage and is seen as a convenience service that does not generate additional revenues, but more a serv ice to build valueadded applications upon. In emerging markets the service targets unbanked or underbanked people that do not have access to other official banking systems. There is a wide range of players of every size in the mobile bank ing and payments industry. Since the different services are strongly interconnected most firms dedicated to developing platforms for mobile commerce offer a number of services. Many platforms com prise for example banking services, over the air payments, proximity payments (NFC), remittance, airtime topup as well as other func tions such as marketing and vouchers. In addition to these play ers there are also large IT firms with the capabilities of delivering tailored solutions to operators or financial institutions that integrate with the current systems. Large banks such as Citigroup or Bank of America have the competence to develop mobile banking and pay ment schemes inhouse. There have also been initiatives from the international card payment giants Visa and MasterCard.
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Table of Contents
5.2.1 Value proposition for players in the ecosystem 5.2.2 Market analysis and forecasts 5.3 Mobile banking 5.3.1 Mobile banking in the US and Europe 5.3.2 Mobile banking in emerging markets 5.4 Industry player analysis 5.4.1 Consolidation trend and vertical integration by mobile operators 5.4.2 Service portfolios 5.4.3 Market positioning 5.4.4 Future role in the mobile and financial industries
6 Company profiles
6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.1.9 6.1.10 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 6.2.10 6.3 6.3.1 6.3.2 6.3.3 Mobile payment providers Bango Ericsson IPX Fronde Anywhere Luup mBlox mChek Netsize Nokia Obopay Sybase 365 Mobile banking providers Comviva Firethorn Fundamo MCom mFoundry Monitise MShift Utiba VeriSign YellowPepper Financial institutions Visa MasterCard Mobipay
4 Mobile banking
4.1 The banking sector 4.1.1 Retail banking 4.1.2 The Western European retail banking industry 4.1.3 The US retail banking industry 4.1.4 Trends in the retail banking industry 4.2 Telephone and online banking 4.3 Mobile banking 4.3.1 Utilising mobile devices for remote banking 4.3.2 Levels of functionality for mobile banking 4.3.3 Mobile banking in Europe and the US 4.3.4 Mobile banking in emerging markets 4.4 Case studies 4.4.1 Bank of America Mobile banking adoption rises in the US 4.4.2 FNB 20 percent of its customers use mobile banking 4.4.3 MPESA More than 8 million users in Kenya and Tanzania 4.4.4 The Philippines GCASH and Smart Money attracts 7 million users
Glossary
Mobile Entertainment Services is a comprehensive report analysing the evolution of music, games and television for mobile devices. This strategic research report from Berg Insight provides you with 140 pages of unique business intelligence and expert commentary on which to base your business decisions.
and encourage networking, communication, interactivity and creativity. Berg Insight strongly recommends not only content producers to already early in the design work reflect on how these features can be incorporated in their products, but that also portal and shop managers do the same. Complementing the mobile activity with a fixed base allows for richer features and higher customer loyalty. For a content provider coming from the fixed side on the other hand, the mobile presence should be a well-designed and integrated branch of the overall strategy. The mobile phone as an entertainment terminal features a number of unique characteristics: it is highly personal, always connected and knows where it is. All these are properties that can be incorporated to craft highly creative and original applications. One of the main challenges will be to find motivating factors for operators to get involved. Volume-based subscriptions are today a stumbling block for usage, and proliferation of flat-fee contracts are a critical success factor for mobile data services to take off. Fixed rates are a catalyst to make the existing online activities such as e-mail, search, instant messaging, electronic commerce and current Internet trends such as blogging and social networking expand into the mobile arena. A capped monthly fee is also the requisite to encourage off-portal browsing. Fixed fees however also remove one of the key incitements for network owners to promote these types of services as they put higher pressure on the networks without generating more revenue. Berg Insight recommends that operators begin by offering differently sized subscriptions of minutes or bytes, and then increasingly bundle these with services such as TV and music, as a way to retain customers and to maintain revenue per subscriber. Mobile players, especially operators, need to embrace the idea that everyone stands to win from an enticing and comprehensive mobile ecosystem, and should at this stage of establishment and expansion focus on figuring out how they can fit in and contribute rather than how to stifle competition. This report looks at challenges as well as strategies for successfully overcoming them specifically for music, TV and video services as well as games.
Billion units 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0
Mobile handsets
Television sets
Fixed telephones
PCs
What lessons can be learned from the most advanced markets in Asia-Pacific?
Table of Contents
1 Introduction 2 Music
Products and packaging Traditional music products New digital music products Distribution channels Downloading Streaming Geographical markets United States United Kingdom France Germany Japan South Korea China Brazil Uganda Industry players Mobile operators Handset manufacturers Device manufacturers Internet Service Providers Content aggregators Online industry players Challenges and recommendations Finding the right business model for digital music 2.5.2 Merging to the mobile arena 2.5.3 The role of the music company 2.5.4 The role of the mobile operator 2.1 2.1.1 2.1.2 2.2 2.2.1 2.2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 2.3.9 2.4 2.4.1 2.4.2 2.4.3 2.4.4 2.4.5 2.4.6 2.5 2.5.1
4 TV and video
4.1 The next step in the evolution of television 4.2 Broadcasting technologies 4.2.1 Streaming over mobile networks 4.2.2 3GPP: IMB, MBMS and TDtv 4.2.3 Analogue receivers in handsets 4.2.4 DAB-based technologies: T-DMB, DAB-IP 4.2.5 DVB-based technologies: DVB-H and DVB-IP 4.2.6 MediaFLO 4.2.7 ISDB-T (One-Seg) 4.2.8 ATSC-M/H 4.2.9 WiFi and WiMAX 4.3 Strategies 4.3.1 Unicast or broadcast 4.3.2 Industry players and business models 4.3.3 Content innovation 4.3.4 Financing 4.4 Challenges and recommendations 4.4.1 Regulations 4.4.2 Technology 4.4.3 Business models and strategies 4.4.4 Content and usage
Glossary
3 Gaming
3.1 The mobile handset as a gaming platform 3.2 The player 3.3 Mobile game concepts 3.3.1 Mobile versions of online games 3.3.2 Location sensitivity 3.3.3 Mixed reality 3.3.4 Multiplayer games 3.3.5 Natural interfaces 3.3.6 Ad-funded games 3.3.7 Virtual products 3.4 Business models 3.4.1 Value chain 3.4.2 Distribution 3.4.3 Application stores 3.4.4 Pricing 3.5 Recommendations
widely deployed. Emergency call regulation is being introduced in other regions as well. Canada has chosen to stipulate location accuracy requirements as in the US, while no such rules are yet in place in Europe where Cell-ID-type location accuracy is enough for compliance today. The number of GPS-enabled GSM/WCDMA handset models is growing fast. The number of models from tier-1 vendors available on the market has grown from four in 2005 to more than 170 at the end of 2010. Since 2008, all tier-1 vendors have shipped GPS-enabled GSM/ WCDMA phones for markets worldwide. Sales of GPS-enabled GSM/ WCDMA handsets grew from 150 million devices in 2009 to an estimated 265 million units in 2010. Berg Insight forecasts that shipments of GPS-enabled GSM/WCDMA/LTE handsets will grow to 940 million units in 2015, representing an attach rate of 61 percent. Including handsets based on other air interface standards such as CDMA and iDEN, GPS-enabled handsets sales are estimated to reach about 1,090 million, or 64 percent of total handset shipments in 2015. GPS technology for handsets has matured, offering much better performance in terms of sensitivity, power consumption, size and price than was possible a few years ago. Support for other satellite systems such as GLONASS, Galileo and Compass will also be added over time. The first handsets with receivers for GPS and GLONASS are already available and mobile phones with Galileo compatible receivers can be expected in greater numbers in 2014 when the new system will become operational. Besides adding support for more satellite systems that ensures additional visible satellites and incrementally better performance in urban canyons, handset vendors are also starting to adopt hybrid location technologies to improve indoor performance. These technologies combine GPS with other wireless and sensor-based technologies, including Wi-Fi positioning, accelerometers, gyroscopes or electronic compasses to improve performance in challenging environments were GPS signals are extremely weak or unavailable.
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1 Mobile handsets and smartphones
1.1 1.2 1.2.1 1.2.2 1.2.3 1.3 1.3.1 1.3.2 1.3.3 1.4 1.4.1 1.4.2 1.5 1.5.1 1.5.2 1.5.3 1.5.4 1.6 1.6.1 1.6.2 1.6.3 Introduction Wireless communication technologies Cellular communication technologies Personal and local area networks Spectrum and interference Broadcast connectivity technologies Radio Mobile TV Global navigation satellite systems Connectivity technology integration in handsets Handset hardware and software platforms Horizontal and vertical integration of connectivity technologies Overview of handset segments Growing end-user demand for smartphones Popular handset categories and form factors Evolution of smartphone input mechanisms and user interfaces Best selling smartphones in 2010 Handset connectivity trends Wireless connectivity attach rates driven by higher smartphone sales Proliferation of GPS-enabled GSM/ WCDMA handset models NFC is the next new connectivity technology for handsets
Standalone receivers Host-based receivers Integrated receiver architectures Software-based receivers GPS IC vendor market shares GNSS chipset and software vendors CellGuide SkyTraq u-blox
5.7.1 5.7.2 5.8 5.8.1 5.8.2 5.9 5.9.1 5.9.2 5.10 5.10.1 5.10.2 5.10.3 5.10.4 5.10.5 5.10.6 5.10.7 5.10.8 5.10.9 5.10.10 5.10.11 5.10.12 5.10.13
Device portfolio Handset shipments Motorola Device portfolio Handset shipments HTC Device portfolio Handset shipments Second tier handset vendors Acer Dell Fujitsu Toshiba Mobile Communications Hewlett Packard Huawei Kyocera Sanyo Telecom Lenovo Mobile Communications NEC Casio Mobile Communications Panasonic Mobile Communications Pantech Sharp TCL Communication ZTE
5 Handset manufacturers
5.1 The handset market in 2010 5.1.1 Device shipments reach new record 5.1.2 Smartphone sales drive handset revenues to an all-time high 5.2 Nokia 5.2.1 Device portfolio 5.2.2 Handset shipments 5.3 Samsung Electronics 5.3.1 Device portfolio 5.3.2 Handset shipments 5.4 LG Electronics 5.4.1 Device portfolio 5.4.2 Handset shipments 5.5 Research In Motion 5.5.1 Device portfolio 5.5.2 Handset shipments 5.6 Apple 5.6.1 Device portfolio 5.6.2 Handset shipments 5.7 Sony Ericsson
3 GNSS technologies
3.1 Overview of global navigation satellite systems 3.1.1 Global Positioning System (GPS) 3.1.2 Galileo 3.1.3 GLONASS 3.1.4 Compass/Beidou 2 3.2 Mobile location technologies and platforms 3.2.1 Mobile location platforms 3.2.2 Control plane and user plane location platforms 3.2.3 Assisted GPS and GNSS 3.2.4 Hybrid and mixed mode technologies 3.3 GPS and GNSS chipsets for handsets
Glossary
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Will Android, iOS or Windows Phone be the winner on the surging smart phone market?
Mobile phones are by far the most pervasive consumer electronics devices globally. Total handset shipments grew 8 percent in 2010 to 1.3 billion units as the world economy started to recover. Mobile phones can be divided into segments based on price or device capabilities. For instance, a broad distinction can be made between smartphones that support native third party applications and featurephones that do not. Smartphones is the fastest growing segment with shipments increasing by almost 74 percent in 2010 to 295 million units. Smartphones are receiving more attention from handset manufacturers, network operators and application developers. Handset vendors adopt smartphone operating systems in order to reduce development time and cost for new advanced handset models. Operators promote smartphones that drive adoption of postpaid subscriptions and data plans. Both handset vendors and operators also strive to attract developers that can bring additional revenues and customer interest from their applications. Most importantly, an increasing number of users are now discovering how smartphones can act as personal computing devices enabling access to the mobile web and applications, besides voice and text services. Wider availability of mid-tier and low cost smartphones has already led to a decline in sales of mid- and high-end featurephones. Shipments of entry handsets with limited or no support for third party applications is also forecasted to gradually decline as the cost of featurephones and smartphones become progressively lower and therefore become a viable option for more users. Berg Insight forecasts that shipments of smartphones will grow from 295 million units in 2010 at a compound annual growth rate of 32 percent to 1.2 billion units in 2015. Along with a growing number of device manufacturers and software developers entering the mobile industry, the number of smartphone operating systems available has also increased. The early smartphone operating systems Symbian, Windows Mobile and BlackBerry OS have been joined by new proprietary operating systems such as Apples iOS and Samsungs Bada OS. Several Linux-based operating systems including Android, LiMo, webOS and MeeGo have also been released. In addition to basic operating systems for featurephones, many handset vendors now use multiple smartphone operating systems across their device portfolios. While this creates a broad choice of devices for customers, it also creates increased development costs for handset
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vendors and fragmentation for application developers. However, maturing web technologies for handsets will eventually facilitate service deployment on handsets in the same way the browser has become the primary delivery platform for PCs. Android became the leading smartphone OS in Q4-2011 with 32 million handsets shipped about two million more than Symbian. The slow progress of its development of the improved Symbian platform and the MeeGo platform for high-end smartphones ultimately led to Nokias radical change of strategy to adopt Windows Phone as its main operating system for smartphones. Symbian remained the leading smartphone OS based on annual shipments with 107 million units, ahead of Android with 69 million handsets shipped in 2010. Apples continued success with its iPhone handsets enabled the iOS platform to outsell BlackBerry handsets in the second half of 2010 to become the third largest operating system. For the full year, both RIM and Apple each shipped about 48 million smartphones. Like Symbian, Microsofts Windows Mobile platform has lost market share consistently after the iPhone and Android appeared on the market. Microsoft introduced its completely redesigned Windows Phone 7 platform in October 2010. The new platform has been relatively well received even though the first handsets using the platform do not compare favourably with the licensees best handsets based on other platforms in terms of hardware design. Over the years, thousands of applications have been developed for Palm, BlackBerry, Windows Mobile and Symbian smartphones. At first, application developers had difficulties to reach a broad user base in absence of a suitable delivery channel. In 2008, the Apple App Store was launched with immediate success removing this hurdle. All leading operating system providers and handset vendors have now launched their own application stores. Berg Insight estimates that the total number of downloaded applications for smartphones grew from 3 billion globally in 2009 to about 9.5 billion in 2010. Revenues from applications have at the same time doubled year-on-year to 4 billion in 2010.
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1 Mobile handsets and smartphones
1.1 1.1.1 1.1.2 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.3 1.3.1 1.3.2 1.3.3 1.3.4 Overview of handset segments Main handset segments Popular handset categories and form factors Introduction to smartphones Smartphone operating system technologies Proliferation of smartphone operating systems Growing end-user demand for smartphones Mobile network operators show interest in smartphones and apps Application stores provide a new channel to the market for developers Smartphone trends Evolution of smartphone ecosystems Evolution of smartphone input mechanisms and user interfaces High-end smartphones challenge PCs Best selling smartphones in 2010
3.3.3 3.3.4 3.3.5 3.3.6 3.3.7 3.3.8 3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.4.6
HP App Catalog Motorola Shop4apps Nokia Ovi Store Samsung Apps LG Application Store Sony Ericsson PlayNow Arena Operator application stores The Wholesale Application Community AT&T AppCenter China Mobile Market Orange Application Shop Verizon V CAST Apps Vodafone 360 Shop
5.5.1 5.5.2 5.6 5.6.1 5.6.2 5.7 5.7.1 5.7.2 5.8 5.8.1 5.8.2 5.9 5.9.1 5.9.2 5.10 5.10.1 5.10.2 5.10.3 5.10.4 5.10.5 5.10.6 5.10.7 5.10.8 5.10.9 5.10.10 5.10.11 5.10.12 5.10.13
Device portfolio Market analysis Samsung Electronics Device portfolio Market analysis Motorola Device portfolio Market analysis Sony Ericsson Device portfolio Market analysis LG Electronics Device portfolio Market analysis Second tier smartphone vendors Acer Dell Fujitsu Toshiba Mobile Communications Hewlett Packard Huawei Kyocera Sanyo Telecom Lenovo Mobile Communications NEC Casio Mobile Communications Panasonic Mobile Communications Pantech Sharp TCL Communication ZTE
5 Handset manufacturers
5.1 The handset market in 2010 5.1.1 Device shipments reach new record 5.1.2 Smartphone sales drive handset revenues to an all-time high 5.2 Nokia 5.2.1 Device portfolio 5.2.2 Market analysis 5.3 Research In Motion 5.3.1 Device portfolio 5.3.2 Market analysis 5.4 Apple 5.4.1 Device portfolio 5.4.2 Market analysis 5.5 HTC
3 Application stores
3.1 Overview of application stores 3.1.1 Vendor independent application stores target multiple platforms 3.1.2 Application store revenues 3.2 OS developer application stores 3.2.1 Android Market 3.2.2 Windows Marketplace for Mobile and Windows Phone Marketplace 3.3 Device vendor application stores 3.3.1 The Apple App Store 3.3.2 BlackBerry App World
Glossary
Continued strong growth for mobile broadband connectivity in Europe and North America
Mobile broadband based on HSPA/LTE and other mobile communication standards has taken off as an important technology for connecting mobile PCs to the Internet. The evolution is led by Europe where HSPA now accounts for 17.3 percent of the total number of broadband connections, compared to 7.1 percent in North America. The concept that was first launched as an exclusive business service is now a mass-market consumer product sold on an intensively competitive market. Consumers are utilizing their mobile broadband connections extensively, pushing the networks to their capacity limits. In fact the overwhelming majority of data traffic on mobile networks is today generated by notebook PC users that surf the Internet, not smartphone users. Fair use policies must be implemented to ensure network availability and pricing must be predictable. International roaming is still largely hindered by prohibitive pricing, making services utterly unattractive to use abroad. Mobile broadband terminals are available in different forms and shapes. Four main types have emerged to satisfy different needs PC-cards, USB-modems, embedded modules and gateways. Berg Insight estimates the total global number of shipped external mobile broadband devices in 2009 to 66 million, with Europe and North America accounting for 24.3 million units and 5.6 million units respectively. In addition, shipments of embedded modules reached an estimated number of 7 million units. Expectations on embedded solutions have been high during the past year, but the attach rate is still relatively low at less than 5 percent in 2009. The European device market grew by 34 percent in 2009. Growth is forecasted to continue with shipments reaching 70 million units in 2015, fuelled by strong demand for mobility and integration in notebook PCs. Also the North American device market will experience a rapid growth to reach 39 million shipments in 2015. The ASP in Europe was about 46 in 2009. The US device market is still focused on business users and the Chinese vendors Huawei and ZTE have not managed to capture significant market shares, whereby the ASP remained as high as US$ 123 in 2009. The EU 23+2 external device market generated an estimated 1.1 billion in 2009 while the North American market generated estimated revenues of 503 million. The European mobile broadband market continues to grow rapidly, with demand fuelled by declining prices, improved user experience and massive marketing campaigns. Berg Insight estimates that the
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total number of mobile broadband subscribers in EU 23+2 grew by 73 percent to reach 25 million in 2009 while the estimated operator revenues reached 4.7 billion. The European mobile broadband market is expected to grow at a compound annual growth rate of 10.8 percent to reach 8.7 billion in 2015. Today, a majority of the users subscribe to data bundles for 12 or 24 months, but as the market matures and embedded modules become widely distributed a majority of new subscribers will only be occasional users generating lower network ARPU. Furthermore, multi-play propositions bundling mobile broadband with other services are likely to become prevalent. Berg Insight estimates that the number of mobile broadband subscribers in North America was about 7 million at the end of 2009. The estimated service revenues were about US$ 4.6 billion and are expected to grow at a compound annual growth rate of 14.0 percent, to reach US$ 10.1 billion by 2015. The growth in North America will accelerate when operators start to target the consumer segment with attractively priced proposals. The introduction of LTE and the increasing number of notebooks featured with embedded modules will drive usage as consumers do not need to make the initial hardware investment. Huawei has established itself as the worlds largest supplier of mobile broadband terminals holding a market share of 53 percent and has a particularly strong foothold in Europe. ZTE is the second largest vendor with clear margins capturing a market share of 30 percent. In North America, the local vendors Sierra Wireless and Novatel Wireless still hold strong positions on a market where EVDO is an important network technology. Option was previously the main supplier in Europe, prior to the entrance of the two Chinese vendors and is now ranked third. A vast majority of the external modems shipped are USB modems, but mobile routers are gaining in popularity. Two of the largest telecom vendors Ericsson and Qualcomm entered the market for embedded solutions in 2008 and have managed to sign contracts with many of the major notebook vendors. The two companies captured a market share of almost 83 percent together on this market in 2009.
Europe
8
North America
What will be the future role of wireless chipset suppliers in the value chain? When will embedded mobile broadband connectivity become a standard feature in mass-market notebook PCs? What are the critical success factors needed to gain massmarket traction for mobile broadband connectivity?
Year
2009
2010
2011
2012
2013
2014
2015
How is fixed-mobile convergence and telecom service bundling going to affect the market? What impact will LTE have on the mobile broadband connectivity market?
Table of Contents
1 Market environment
1.1 Internet usage 1.2 The European broadband communications market 1.2.1 Fixed broadband market 1.2.2 Wireless market 1.3 The North American broadband communications market 1.3.1 Fixed broadband market 1.3.2 Wireless market
3.2.7 3.2.8 3.2.9 3.2.10 3.2.11 3.2.12 3.3 3.3.1 3.3.2 3.3.3
BandRich Onda Communications Teltonika C-motech Axesstel Others Embedded solution vendors Ericsson Qualcomm Others
4 Notebook PC integration
4.1 4.1.1 4.1.2 4.2 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7 4.3.8 The global notebook PC market Market trends Notebook PC vendor market shares Integration of mobile broadband in notebook PCs Notebook vendors Hewlett-Packard Acer Dell Toshiba Lenovo Sony ASUS Samsung Electronics
Glossary