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Tourism Overview
September 2018
1
Market Highlights
Source: Frost & Sullivan
Frost & Sullivan and
Amadeus have segmented
travellers into 6 main
“tribes”; each tribe has
different expectations
before, during and after
their holiday or trip
Tourists Tribes
Spend on IT in the Travel,
Cruise and Hospitality
market is expected to
grow at a CAGR of 4.0%
from 2017 to 2020 with
innovations in a number
of different areas
Hospitality
There is a wide range of
emerging technologies
which are disrupting the
way in which museums,
exhibitions and galleries
are composed and
experienced
Museums
A number of new
technologies, often from
neighboring or unrelated
markets, are shaping
and/or enabling the
deployment of mobility
solutions in Smart Cities
Smart Cities
Increased digital
proficiency across product
and services, enterprise
operations and customer
experience, will reshape
the airports and airlines
industries
Airports & Airlines
Services enabling sub-
orbital flights will begin in
2019, leading to high speed
air travel services by 2025
and, eventually, an
established “spaceline”
market
The role of Space
More than ten specialized
flying car manufacturers
are racing to launch their
vehicles in the next five
years and gain a
competitive advantage as
first-movers
Flying Cars
Overall, spending on
physical city surveillance is
forecast to grow at a
CAGR of 4.1% globally
and the cyber risk to smart
cities requires a high level
of planning
P&C Security
2Market Trend #1
Source: Amadeus, Frost & Sullivan
Tourists Tribes
Frost & Sullivan and Amadeus have segmented travellers into six main “tribes”. Each tribe has different requirements and expectations before,
during and after their trip; airports, airlines and other tourism service providers can use this segmentation for effective marketing
Traveller Tribes
Obligation
Meeters
Simplicity
Searchers
Reward Hunters
Ethical Travelers
Cultural Purists
Social Capital
Seekers
Obligation Meeters travel driven by deadlines primarily on business-related trips
Social Capital Seekers understand that to be well-travelled is an enviable quality
Simplicity Seekers value ease and transparency in their holidaymaking above all
Reward Hunters focus on self-indulgent travel, mixing luxury and health
Ethical Travellers allow their conscience to be their guide when travelling
Cultural Purists use their travel as an opportunity to immerse themselves
3Market Trend #2
Source: Market Participants, Frost & Sullivan
Hospitality
Spend on IT in the Travel, Cruise and Hospitality market is expected to grow at a CAGR of 4.0% from 2016 to 2020 with innovations in a number
of areas; automated analytic platforms, autonomous social robots and fraud detection solutions are emerging products and services
Outlook Innovations
IT spend on hospitality, Global, 2016-20
82,4
92,796,4
0,0
25,0
50,0
75,0
100,0
2016 2018 2020
4.0% CAGR 2016-20
Reve
nu
e $
b
is developing automated analytics platforms
is launching autonomous social robots
is working on fraud detection solutions
Selected innovations
4Market Trend #3
Museums
There is a range of emerging technologies which are disrupting the way in which museums, exhibitions and galleries are both composed and
experienced; AR/VR tools, VLC/Li-Fi receiver keys and ultra wideband wireless are transformative for the supply and demand side
Technologies Innovations
Selected technologies
Visible Light Communication
Indoor Positioning Systems
Augmented/Virtual Reality
Micro LED displays
Selected innovations
is an educational AR/VR tool which allows students to
remotely experience expeditions and museums
is developing a VLC/Li-Fi receiver key which allows speedy
data transmission in galleries
uses ultra-wideband wireless technology for positioning
systems which are used for guided tours
Source: Market Participants, Frost & Sullivan
5Market Trend #4
Source: Frost & Sullivan
Tourist’s Mobility: Smart cities
A number of new technologies, often from neighboring or unrelated spaces, are shaping and/or enabling mobility solutions in Smart Cities; smart
glass, artificial intelligence, wearables and high strength materials are all expected to have an important role to play moving forwards
Smart GlassUtilising smart glass in private and public vehicles can reduce energy consumption and
provide passengers with enhanced comfort and privacy
High Strength
MaterialsHigh strength and lightweight materials are replacing metals in vehicles
Artificial
IntelligenceArtificial Intelligence agents will assess the density of traffic using GPS
WearablesWearables, like smart glasses and watches, can improve a driver’s experience and safety
during travel by tracking their vital signs for tiredness
Mobility Technologies
6Market Trend #5
Source: Frost & Sullivan
Tourist’s Mobility: Physical & Cyber Security
Overall, spending on physical city surveillance systems is forecast to grow at a CAGR of 4.1% globally to reach $3.07b in 2022; the cyber risk to
smart cities requires a high level of planning. Many governments today are still grappling with the complexity of the challenge
Outlook Challenges
Spend on physical city surveillance, Global, 2016-22 Selected cyber threats
2.410
2.714
3.066
0,0
800,0
1.600,0
2.400,0
3.200,0
2016 2019 2022
4.1% CAGR 2016-22
Reve
nu
e $
b
DDoS attacks or ransomware attacks on
smart grids
Hacking of public cameras and traffic
signals (devices and sensors)
Identity thefts (digital identity and smart
cards)
Low High
Threat Level
7Market Trend #6
Source: Frost & Sullivan
Tourist’s Mobility: Airports & Airlines
Increased digital proficiency across product & services, enterprise operations and customer experience, will reshape the aerospace industry;
overall, spending on technology from airports is forecast to grow at a CAGR of 3.8% globally to $4.63b in 2023 ($3.56b in 2016)
Segmentation Size
Digital Evolution
Digital
Proficiency
Digital
Fundamentals
Total Airport
Management
Autonomous
Services Augmente
d/Virtual
RealityIntegrated
Security Artificial
IntelligenceSelf-service
Biometrics
IoT Mobility
Big
Data
Connectivity
Cloud
Security
Digital Platforms
Common-use
Business
Intelligence
Products, operations and customers IT spend on airports, Global, 2016-23
3,64,1
4,6
0,0
1,5
3,0
4,5
6,0
2016 2018 2023
3.8% CAGR 2016-23
Reve
nu
e $
b
8Market Trend #7
Source: Frost & Sullivan
Innovation: The role of Space
Services enabling sub-orbital flights will begin in 2019, leading to high speed air travel services by 2025 and, eventually, an established “spaceline”
market; the development of the space industry will also support airport operations as well as autonomous vehicles and trains
ApplicationsTrends
Astronaut training centre to open
Manned balloon to test
Spaceport to be developed
Virgin Galactic & SpaceX to operate
PD Aerospace to trial
Enabling seamless flight
tracking by 2023
Facilitating assisted and
autonomous driving
Allowing fully automated
operations by 2030
Selected developments Selected applications
9Market Trend #8
Innovation: Flying Cars
More than ten specialized flying car manufacturers are racing to launch their vehicles in the next five years and gain a competitive advantage as
first-movers; Flying cars have the potential to address a wide range of public/private end-uses including as taxis and for agriculture
Size Applications
Planned launch of flying cars, Global, 2016-26
0
1
2
3
4
5
6
2016 2018 2020 2022 2024 2026
Ehang 184
PAL-V Liberty
Pioneer
PAL-V Liberty
Sport
Terrafugia
Transition
Volocopter
Aerofex
Aero-X Xplorair
PX 200
Joby S2
Malloy
Hoverbike
Pri
ce
$ 0
00
k
Taxi
Racing
Recreation
Agriculture
Selected applications
Source: Market Participants, Frost & Sullivan
10
...
• TBC
Tourists Tribes
11
Frost & Sullivan, together with Amadeus, has segmented travellers into “tribes”
Source: Amadeus, Frost & Sullivan
Simplicity
Searchers
Cultural
Purists
Social Capital
Seekers
Reward
Hunters
Obligation
Meeters
Ethical
Travellers
Degree of
PersonalisationVery High Very Low Very High High Very High High
Traveller
JourneyBeginning At Time of Use Throughout Beginning Throughout Beginning
Purchasing
ExperiencesBundle A La Carte Both Bundle Both Bundle
Level of Contact Low Low High Low High Low
Sales Channels Fixed Mobile All All Mobile Fixed
Types of Travel
ExperienceConvenience Local
Luxury &
Productivity
Health and
FitnessProductivity Ecological
12
Simplicity Seekers value ease and transparency in their holidaymaking above all
Source: Amadeus, Frost & Sullivan
Traveller Tribes: Simplicity Seeker
Voyando is a Dutch travel website which enables users to
challenge travel experts to help find the best travel deal
based on a set of specified criteria
T R I B E C H O I C E P R O P O S I T I O N
Those whose methods for research, booking and travel look,
in an increasingly digitalised and disintermediated world, for the
traditional. They may rely on travel agents. They demand simple,
unchallenging experiences and familiar surroundings as a
relaxing escape from or antidote to the pressures of modern life
Related Behaviours
• Digital Detox
• Cruise market
• Larger groups/Translation apps
• Seamless airport protocols demanded
“We can be distracted by Silicon Valley boosterism about how
consumer empowerment through IT is the future and that’s it.
What needs to happen first is some of the basics of customer
service are covered. When an airport closes down for smoke do
you think the airport sends texts or emails to the people who
have booked flights for that day?”
James Woudhuysen
13
Cultural Purists use their travel as an opportunity to immerse themselves
Source: Amadeus, Frost & Sullivan
Traveller Tribes: Cultural Purist
Traffle is a mobile travel app which provides its users with
a travel itinerary for a country of choice
by the means of a simple shake
T R I B E C H O I C E P R O P O S I T I O N
This tribe captures those for whom holiday-making is a chance to
step out of a comfort-zone, an opportunity to immerse oneself
entirely in an alien culture, even uncomfortably so. Authenticity is
key for this group, as they seek options which make possible a
connection with an entirely different world
Related Behaviours
• Digital Detox. Solo?
• Anti-algorithm/Surprise Me tech
• Food/Dark Tourism. Peer Economy.
• “Off-the-map” experiences
“I don’t know where the flip point is for the Chinese tourist for
example. They seem very consumption-oriented, very into
shopping. But looking at the hierarchy of needs; community will
become for them more important, less materialistic and more
inconspicuous consumption, and more engagement with other
cultures on their own terms will come to the forefront”
Ian Yeoman
14
Social Capital Seekers understand that to be well-travelled is an enviable quality
Source: Amadeus, Frost & Sullivan
Traveller Tribes: Social Capital Seeker
#noshittyphotos in an attempt to salvage Instagram
feeds from low-quality tourist photos. The developers
marked ideal spots from which to take
the perfect photos of landmarks
T R I B E C H O I C E
P R O P O S I T I O N
This tribe feels, in all areas of life, a need to constantly promote
their personal importance or accomplishment to their online
networks. They do not “switch off” from this when on holiday
They may take guidance from their networks as to their choice of
destination, but once they arrive they will certainly plan their
activities with an awareness of their constantly “being watched”.
In this sense, the social capital seeking traveller is naturally
always “half-here, half-there” Related Behaviours
• Demanding everywhere connectivity
• Seeking “trendy”
• Contributing to review networks
• Posting on multiple/niche networks
15
Reward Hunters focus on self-indulgent travel, mixing luxury and health
Source: Amadeus, Frost & Sullivan
Traveller Tribes: Reward Hunters
The Six Senses spa in Etihad’s first-class lounge,
Heathrow, gives travellers an opportunity to unwind
after check-in with a full-service spa and beauty
parlour
T R I B E C H O I C E P R O P O S I T I O N
As awareness blossoms amongst the global citizenry about
what is best for our bodies and minds, coupled with a growing
understanding that urbanisation, increasing working hours,
solitary living and technological dependency may
not exactly be it, demand grows for forms of travel
which promise health, happiness and heart
Fitness particularly has grown into a “total lifestyle” pursuit in
recent years. The Cult of Fit has burst from the confines of the
gym and spawned untold thousands of pop-up yoga events,
cardio-in-the-park workouts, dance-fitness raves and Soulcycle
discos. Wellbeing is a hard taskmaster;
he doesn’t allow time off for a boozy holiday
Related Behaviours
• Visiting fitness/pop-spiritual “festivals”
• Travelling in or meeting with Connected Communities of
fellow wellness-worshippers
16
Obligation Meeters travel driven by deadlines, primarily on business-related trips
Source: Amadeus, Frost & Sullivan
Traveller Tribes: Obligation Meeter
Virgin America announced a partnership with the
professional networking app Here on Biz. The app uses
GPS technology to physically connect people for potential
networking opportunities
T R I B E C H O I C E
Related Behaviours
• Improvising around main purpose?
• “Bucket list” travel
• Business travel
• Pilgrims
P R O P O S I T I O N
This tribe comprises those who travel not to meet “soft” targets -
such as enjoyment, personal fulfilment, the acquisition of a skill -
but “hard” targets; I need this surgery, I need to shop at this store,
I need to take this exam, I need to attend this lecture/conference, I
need to meet this contact etc
“There are two sectors for business travel. I’ve got a meeting in
Edinburgh today, I might be staying overnight and then I’m
coming back. This is about 80% of business travel. The other
20% is the MICE market - meetings, incentives, conferences
and exhibitions. Blending business and leisure is mainstream
now.”
Ian Yeoman
17
Ethical Travellers allow their conscience to be their guide when travelling
Source: Amadeus, Frost & Sullivan
Traveller Tribes: Ethical Traveller
The Tabacon Grand Spa, located in a Costa Rican rainforest
that has been described as “the eighth wonder of the world,” has
achieved the Luxury Eco Certification Standard and offers flora
and fauna protection, wastewater treatment
and workshops on the natural surroundings
T R I B E C H O I C E P R O P O S I T I O N
We imagine that ethical concerns will have a tangible impact on
the decisions of a small, but resilient, group of travellers.
Environmental issues and energy crises will rise higher and
higher on the global political agenda, and awareness will trickle
down to the level of most consumers. Belief of all kind, will
motivate and restrict some
Related Behaviours
• Carbon offsetting
• Avoiding destinations/providers on ethical grounds
• Travelling virtually/close to home?
“There is a potential 10 to 15% who will seek out the greenest
method of travel [...] I do think between now and 2030 there is
going to be a huge increase in the noise about climate change,
but despite this I don’t think people anywhere in the world will
significantly scale down their travel.”
Ray Hammond
18
...
• TBC
Hospitality
19Overall, spend on IT in the Travel, Cruise and Hospitality market is expected to
grow at a CAGR of 4.0% from 2017 to 2020 with innovations in a number of areas
Source: Frost & Sullivan
Revenues, Global, 2014-2020IT Spend,
Global, 2014-2020Contribution to IT Spend,
Global, 2014
76,2 79,2 82,4 85,7 89,1 92,7 96,4
0,0
50,0
100,0
150,0
2014201520162017201820192020
IT S
pen
d (
$
Billio
n)
4.0%
Software40%
Hardware20%
Telecom22%
IT services18%
• The travel, cruise, and hospitality has gradually become a more technologically equipped sophisticated market. The service
providers strive to harness emerging technologies to enhance customer experience and loyalty. The pressure to operate
efficiently is driven by the dynamic growth in passengers and increased customer expectations while delivering an unparalleled
user experience.
• Air transport facilitates quick and reliable transportation globally and is deemed extremely important from the perspective of
perishable and valuable commodities.
Travel, Cruise, and Hospitality Market
3,7 4,0 4,4 4,8 5,35,8
6,4
0,0
2,0
4,0
6,0
8,0
2014 2015 2016 2017 2018 2019 2020
9.9%
Rev
en
ue (
$ T
rillio
n)
20
Sabre (US) is developing automated analytics platforms
Source: Sabre, Frost & Sullivan
KEY CHALLENGES
TECH PROFILEKEY BENEFITS
• Sabre Corporation has developed an automated analytics platform SynXis Analytics
Cloud to address the needs of the hospitality industry. The platform uses artificial intelligence
(AI) to drive revenue focused decisions for hoteliers. The platform utilizes a suite of business
intelligence tools, which enables hotel executives to analyze hotel performance at a region,
brand, or chain level. The platform leverages pre built machine learning algorithms to design and
test different predictive models for improving guest experience and revenue opportunities, and
offer powerful on-demand analytics and storytelling capabilities. The solution empowers
highly customized, on-demand analytics techniques to provide actionable insights required for
improving overall business operations.Analyst Viewpoint
According to Frost & Sullivan’s analysis, one of the major
concerns for the hospitality industry is to have actionable
business insights to improve customers’ experience and to
drive revenue growth. In the growing Big Data environment,
Sabre Corporation’s solution will have a significant
impact on the hospitality industry
by 2019.
The hospitality industry has been following the traditional static backward reporting method and the tools available are limited to
analyzing only past events, providing a historical view and some insights. Many hoteliers are often using manual reporting for their
businesses, thereby affecting their revenue-focused decisions. With the exponential rise of Big Data, hoteliers are facing
challenges with data integration and generating informed decision making business insights from it.
Market Opportunity
LOW
MEDIUM
HIGHLOW
MEDIUM
HIGH
Short Term (1-2 Years) Long Term (> 5 years)
• It helps hoteliers to avoid revenue loss by
analyzing data from operations, finance, room
services, ancillaries and rate-room-channel
configurations.
• It offers a data warehousing service to the host
and integrates multiple sources of hospitality
data in the cloud.
Key Application Sectors
• Airlines
• Hotels
• Car Rental Companies
• Cruise Lines
• Railways
• Government Sector
21
Ravelin (UK) is working on machine learning-based fraud detection solutions
Source: Ravelin, Frost & Sullivan
Hospitality industry is increasingly being mired with
growing number of fraud attacks and data breaches. From
hotel reservations to tour itineraries to guest’s credit card
information to guest identity documents, theft of personal
data or identity fraud is increasingly becoming
commonplace in the sector.
There is a critical need to integrate and use all available
data to uncover fraud attacks in real time.
Unmet Needs
Ravelin provides a smart fraud detection and prevention platform for the
hospitality industry. It integrates customer and business data and
analyzes it, i.e., from sign up or account creation to
booking/reservations and payment process.
It imports and integrates all key data points through an application
program interface (API). The platform relies on self-improving machine-
learning models with a customizable rule engine to identify and block
fraudsters in real time.
Technology Overview
Data-first
approach
Ability to
manage
peak times
Self-
improving
models
1 2
3
• Ravelin, founded in 2014, has received total
funding of $5.64 million in 3 rounds from
multiple investors.
• The last round of funding for $3.66 million
was led by Playfair Capital with participation
from Amadeus Capital, Passion Capital, Errol
Damelin, and Paul Foster.
• Funding has primarily been in support of
aggressive expansion of team to support its
growing client base across the world. Its
client base include Deliveroo, Easy Taxi, and
Via Taxi to name a few.
Key Benefits Funding Market Opportunities
Rising cyber attacks in the hospitality industry have
created an imperative need for an easily adaptable,
scalable, and enterprise-ready fraud detection
platform. Ravelin’s unique approach adequately
addresses industry needs by preventing companies
from fraudulent attacks and helping them optimize
decision-making at real time.
Short Term
(1–2 years)
Medium Term
(3–4 years)
Long Term
(>5 years)
High HighHigh
22
Cybedroid (France) is launching autonomous social robots
Source: Cybedroid, Frost & Sullivan
Intensity of Impact
0
1
2 3
4
5
3.0
Cybedroid, headquartered in France, has
launched a semi humanoid autonomous
“Leenby” social robot. The robot has the
ability to execute complex tasks and adapt
itself in public environments like hotels. The
robot perform several tasks like socially
interacting with humans, guiding elderly
people and assist in delivery of foods.
Innovation
The robot utilizes its proprietary speech
recognition software for interacting with
people based on recognised keywords. The
Leenby robot is equipped with Lidar sensors
and a stereovision camera system, which can
aid the robot in obstacle detection, mapping
people and its environments. The humanoid
robot on wheels has 20 degrees of freedom
and can move with complete autonomy with
10 hours battery.
Description
• The robot has the ability to climb a 14%
slope
• Intel i7 processor for control
• Less weight of 30Kg
• Lift lightweight objects
Technology Attributes
• Hospitality
• Retail
• Education
• Museums
ApplicationsIn May 2017, the company announced a
600,000 euros (about US$702 million at
the current exchange rate) fund raising to
allow them to begin real production.
Company Approach
23
Tink Labs (Hong Kong) is enabling smarter “guest-host-guest” interactions
Source: Tink, Frost & Sullivan
In the travel and hospitality space, staying connected 24×7
at an optimized cost and convenience has remained an
eternal concern for travelers and guests. On the other hand,
personalized services to drive guest engagement remain the
key differentiator for industry participants focusing on this
space.
There is an imperative need for a solution that can offer both,
that is, a device that can offer connectivity and at the same
time serve as a channel to closely engage with the guests.
Unmet Needs
Tink Labs offers a tailor-made hospitality solution that is housed inside a
smartphone called Handy T1, which is docked as an in-room amenity across
hotels around the world. The device is integrated with hotel property
management systems and private automated branch exchange systems and
is also equipped with a near-field communications chip for enabling keyless
access and an infra-red transmitter connecting to in-room entertainment.
Handy offers unlimited voice and data services. Guests can carry the device
like a normal phone and it can be further patched into hotel services such as
front desk and concierge using applications that run on a forked version of
Android
Technology Overview
Customized
Interactive
guide
Free
roaming
services (both
voice and
data)
1 2
3
• Tink Labs, a Hong Kong-based technology
incubator, has raised 3 rounds of funding totaling
$160 million from about 4 investors including FIH
Mobile, Sinovation Ventures, TCL Communication
Technology Holdings Ltd., and venture capitalist
investor Wensheng Cai.
• With the last round of funding closed in September
2016 for $125 million, Tink Labs is now looking to
deploy services in over 100 cities targeting about 1
million hotel rooms by the end of 2017. Goal is to
expand presence beyond its strongholds Singapore
and Hong Kong to other tourist destinations.
Key Benefits Funding Market Opportunities
With its unique and innovative approach, Handy
serves as a hassle-free mobile companion, offers a
seamless experience, and helps guests stay very
engaged bringing in a slew of benefits to the
participants in the hospitality space.
Short Term
(1–2 years)
Medium Term
(3–4 years)
Long Term
(>5 years)
High HighHigh
24
AquaGrow (US) is testing mobile indoor aquaponic farms
Source: AquaGrow, Frost & Sullivan
Unmet NeedsThe growing population and impact of climate change will induce the
need for indoor food production in a controlled environment. Advanced
farming systems have been catering to this need, but they are highly
capital and energy intensive. Additionally, there is a need to develop
mobile and sustainable indoor farms that are completely grid independent
and operate with alternate sources of energy.
Technology Solution
Innovation Attributes
Container Farming
Additional Profit Streams
AquaGrow farms are containerized and grid independent farms
that offer mobile food production. A container farm is extremely
useful during natural calamities, in refugee camps, and in food-
poor urban or rural areas.
AquaGrow farms offer additional profit streams through organic
waste collection fees and sale of fertilizer, the byproduct of the
bio-digestion process.
Waste Utilization
Utilization of food waste that otherwise would go to landfills aids in
the reduction of greenhouse gas emissions.
• AquaGrow Technologies, started by scientists from the Illinois
Institute of Technology, develop mobile indoor aquaponic based
farms that are completely grid independent. The farms utilize local
food waste to meet the power requirements.
• The aquaponic farms are housed in a 45X10X10 ft. cargo containers
capable of producing 14500 lb of fresh produce, 1100 lb of fish
annually.
• Each container is equipped with an anaerobic biodigester which
converts food waste to methane that is used to power the farm. The
biodigesters are designed and manufactured in collaboration with
Nullam Consulting.
25
...
• TBC
Museums
26There is a range of technologies which are disrupting the way in which museums and
exhibitions are both composed and experienced
Source: Frost & SullivanSelected technologies
Augmented Reality and Virtual Reality (AR/VR) solutions
Visible Light Communication (VLC) systems
Micro LED displays
Indoor Positioning Systems
Ultra-wideband wireless radio-based
Magnetic field-based
Global navigation satellite system-based
27VR/AR is being used for many purposes including enhancing the visitor experience by
allowing museum goers to “handle” precious artefacts
Source: Market Participants, Frost & SullivanVR/AR, selected applications
Productivity Improvements
The Bricklaying team at the South
Staffordshire College in the UK produced
videos that have improved the number of
trainees cutting bricks right the first time
from approximately 40% to 90%.
Healthcare Training
• The Creating Augmented Reality in
Education (CARE) project at the City
University in London, UK covers a series
of health walks to allow healthcare
students to discover the health risks
around the locality.
• The project uses GPS in conjunction with
AR to support delivery of situated
contextualised learning.
3D Reconstructions of
Ancient Artefacts• The Ure Museum of Greek Archaeology
housed by the University of Reading is the
UK’s fourth largest collection of ancient
Greek ceramics.
• Through the Augment app, the museum’s
visitors can now ‘hold’ precious pots,
rotating and moving them freely while the
real object stays safely behind glass.
Nurse Training
• AR enabled tablet-based simulations of
patient scenarios to help nurses to better
connect with their patients.
• With help from AR, nurses and other staff
are able to handle daily work situations
requiring a combination of social, technical,
and team skills.
Display of Iconic
Architecture
AR was used to display the iconic
architectural works of CONAR for the
Bienal Iberoamericana de Arquitecture
Académica ARQA (Latin American
Biennial of Academic Architecture ARQA)
at the University de Cuenca in Ecuador.
Medical Training• Medical professors leverage on AR to
educate medical students and doctors on
new therapies and drugs, thus
streamlining communications.
• Through AR technology, medical students
can easily access and understand
complex body models as well as images
and text found in medical textbooks.
28Google’s “Expeditions” is an educational AR/VR tool which allows students to
remotely experience 500 expeditions including trips to museums
Source: Google; Frost & SullivanVR/AR
Impact of Augmented Learning
• According to a study conducted by Google, VR in education is expected grow to more than $1.7
billion by 2021, with 70% of the revenue, driven by higher education.
• Google’s VR expedition tool can be accessed by teachers by purchasing an expedition kit or
creating their own. Google expedition uses smart phone-based VR viewer, Cardboard.
• Students can use Cardboard—VR glasses, an Android phone, and an app—to travel through an
experiential field trip that the teacher controls from a tablet device.
• Google’s expedition program helps to level the playing field for students who may not be able to
travel due to financial or physical limitations.
Google Expeditions is a VR educational tool that allows students
to experience 500 expeditions from museum visits, swimming
with sharks to walking in space
29Information pertaining to an exhibit inside a museum or exhibition can be effectively
transmitted using a Visible Light Communication system
Source: Frost & SullivanVLC, selected applications
Indoor Connectivity Retail Navigation
Patient Monitoring System Exhibit Information Transmission
The use of VLC for indoor applications is expected to transform
LED lighting for applications. LED lighting, apart from providing
general illumination, will also act as a communication node,
which, when connected to the Ethernet, will provide Internet
access to devices equipped with VLC transceivers.
VLC provides a smart means of navigating through store
maps by identifying each light through the use of MAC
codes placed inside the VLC chip. This can also be used
by retailers to provide information and notifications to
shoppers about offers and discounts.
Patient monitoring is an important application in hospitals. VLC-
enabled LED lights can operate medical devices without RF
signal or EMI interference, thereby monitoring patient movements
with no interruptions. Unlike Wi-Fi, they do not interfere with
electronic operations such as MRI scanners. This enables
contact-free monitoring systems.
Information pertaining to an exhibit inside a museum or
exhibition can be effectively transmitted using a VLC system.
In this case, there is limited need for bi-directional
communication and, hence, a high probability of
implementation. The user’s smartphone camera can
potentially be used as the receiver for communication.
30Lucibel, a French lighting company, is developing a VLC/Li-Fi receiver key which
allows speedy data transmission in galleries and other settings
Lucibel is a France-based lighting company which specializes in providing unique lighting solutions to worldwide customers on the basis of their expertise on LED technology. Lucibel has developed a compact Li-Fi receiver key which facilitates speedy data transmission.
BUSINESS STRATEGY
Source: Lucibel, Frost & Sullivan
COMPETITIVE
FEATURES
Economical
and utilizes existing
LED lights for data
transmission
Bidirectional
and high
speed
data transfer
Secure
data transmission
with uninterrupted
connectivity
Compact and
easy to install
BUSINESS STRATEGY
Lucibel engages in
collaborative partnerships with
leading participants in various
industries, such as VLC
technology developers and
smart lighting integrators to
customize solutions for specific
application needs. Lucibel and
CITELUM are partnering to
develop innovative lighting
solutions that aid in smart
indoor and public lighting
solutions.
APPLICATION AREAS IMPACTED
• Real estate
• Retail market
• Consumer electronics
• Museums and art galleries
Year of
Impact
2019
Lucibel has developed “Li-Fi USB Key” which will be acting as receivers
interfaced with computers or laptops stationed below the Li-Fi LEDs. All
the Li-Fi LEDs are connected to a dynamic host configuration protocol
(DHCP) server using RJ45 cable. Using signal processing, the server
sends data to the LED which in turns sends data embedded in its beam to a
photo detector present in the Li-Fi key. The Li-Fi key will convert this beam of
data into electrical signals while enabling bidirectional data transfer. Li-Fi
LEDs will produce a light cone under which the Li-Fi works at very high
speeds through a bidirectional line rate up to 42 Mbps.
VLC
31In the long term, the micro-LED market promises to generate a $18b market
opportunity with large systems suited to public displays in museums
Source: Frost & Sullivan
• Micro-LEDs have significant
opportunities to replace
conventional displays in small-
scale applications such as
smart watches, smart phones,
and near-to-eye displays
(NTE)
• Frost & Sullivan’s analysis indicates
high growth potential for micro-
LEDs in commercial medium
display applications such as laptops
and televisions.
• The impact of micro-LEDs on
medium-sized commercial displays
may be delayed due to the
shortcomings of existing mass-
manufacturing technologies.
• Large display applications such as
home theatre screens, public displays
in museums and stadiums offer larger
opportunity for proliferation of micro-
LEDs.
• Penetration of micro-LEDs into large
displays depends on two key
technological developments –
miniaturization and mass
transfer/production.
• Failure to meet these needs may
hinder adoption of micro-LEDs
in large displays.
Small Displays
Medium Displays
Large/ Public Displays
MARKET POTENTIAL
Currently, the primary focus of micro-LED technology is to cover three key segments – small, medium, and large displays.
The micro-LED industry is expected to reach $18.1 Billion by 2025 with a CAGR of 52.2% between 2019 and 2025.
Source: Frost & SullivanMicro-LED
32Pozyx Labs (Belgium) uses ultra-wideband wireless radio technology for positioning
systems which are used for guided tours of monuments
Source: Pozyx, Frost & SullivanIndoor positioning systems
1 2 3 4 5 6 7 8 9
Technology Readiness Level
Originating from the work of Samuel Van der
Velde at Ghent University, Belgium, the Pozyx
UWB indoor positioning system has key market
opportunities, as it can provide better accuracy
than indoor positioning systems based on Wi-Fi,
Bluetooth, RFID (radio frequency identification),
or GPS (global positioning system) signals.
The systems are available with vendors.
Market penetration is expected circa 2018.
YEAR OF
IMPACT
Funding
The research has been funded by Fonds
Wetenschappelijk Onderzoek (FWO).
Innovation Attributes
➢ The Pozyx indoor 3D positioning system uses ultra-
wideband technology (UWB) wireless radio
technology, involving low energy pulses across a wide
frequency spectrum.
➢ It is provided as an add-on for the Arduino
microcontroller development board, making it highly
customizable and suitable for researchers and
hobbyists.
➢ As an alternative to satellites in GPS, the Pozyx device
uses four anchor boards to be placed in a space that
result in 3D positioning with an accuracy of about 10
cm.
➢ The system uses an accelerometer, gyro, and
magnetometer (each with 3 axes) to provide 9-axis
orientation, as well as a pressure sensor.
Unmet Needs
➢ Technology for navigation is largely reliant on GPS,
which works well outdoors. On the other hand, GPS-
based indoor navigation is not reliable as the satellite
signals are blocked or bounce off walls and other
physical obstacles.
➢ Indoor navigation systems that use Bluetooth or Wi-Fi
communications technology are highly imprecise,
bounce off walls or are absorbed, and are , therefore,
not very accurate.
➢ Navigation systems for robots and drones
➢ Tracking systems
➢ Tourism – Guided tours for monuments and museums
➢ Augmented reality equipment
➢ Safety systems for factories and warehouses
➢ Smart home automation systems .
Potential Applications
Future Plans
➢ Pozyx is planning to release Arduino libraries
and part of the firmware to the open-source
community.
➢ Research is currently in progress to enable wider
adoption of the UWB-enabled indoor positioning
system over competing products
available in the market currently.
➢ To reach out to developers and commercialize its
product, Pozyx Labs initiated a Kickstarter
crowdfunding campaign recently.
Commercialization Initiatives
33
IndoorAtlas (Finland) supplies magnetic field-base positioning systems
Source: IndoorAtlas, Frost & SullivanIndoor positioning systems
Technology ProfileIndoorAtlas was founded as a spin
off from the University of Oulu,
Finland, in 2012. The startup is
focused on developing hardware-
free position tracking systems.
IndoorAtlas provides magnetic field-based
positioning systems for indoor applications. The
geomagnetic technology identifies the magnetic
fields inside buildings and a smartphone
magnetic sensor (compass) provides accurate
position location and mapping.
IndoorAtlas, Inc., is
Headquartered in Mountain
View, CA, and Oulu,
Finland, with Other offices
in Japan, China, and South
Korea.
Who
WhatWhere
Innovation Attributes➢ The company’s indoor positioning system (IPS) is a software-
based positioning system with no requirement for deploying
and maintaining hardware, with a positioning accuracy of 1 to
2 m.
➢ Steel embedded in modern buildings interferes with the
Earth’s magnetic fields that create a magnetic blueprint of the
building. This is sensed using an in-built technology (including
a magnetic sensor) within the smartphone.
➢ Wi-Fi and cloud platforms are used for optimization.
Application developers can use the accompanying software
development kit (SDK) to incorporate position-based services.
Potential Applications➢ Mobile gaming
➢ Indoor navigation system for large terminals, museums, public
halls, hospitals and so on in real time
➢ Location-based advertising and proximity marketing in retail
establishments
Funding
➢ Initially, the startup was funded by US venture
capitalist Mobility Ventures and Finnish seed
funder KoppiCatch for its potential. With
increased attention from large companies,
partnerships are now a current funding source.
Commercialization Strategy
➢ IndoorAtlas has commercial tie-ups with technology giants like
Yahoo!Japan for indoor positioning across Japan.
➢ SK Planet and IndoorAtlas are involved in a $3m partnership
targeting potential in the Online2Offline e-commerce segment.
➢ Baidu Maps has incorporated the company’s IPS for its Indoor
Location services.
34Sensewhere (UK) relies on global navigation satellite systems for indoor positioning
systems for malls, public offices, airports and museums
Source: Sensewhere, Frost & SullivanIndoor positioning systems
1
2
Indoor positioning systems based on Global Navigation Satellite
Systems (GNSS) are limited by satellite signal blockage and limited
accuracy
A Wi-Fi positioning system that requires surveying the venue is
labor intensive, expensive, and not practical under certain
circumstances.
Problem
Statement
The positioning system is developed in
the form of a suite of distributed
solutions with limited dependency on
GNSS signals.
The location of the transmitters is
updated in real time as they are moved or
replaced. The data from the transmitters
are treated with confidentiality and are
not shared between them.
The system does not require explicit
calibration for utilizing Bluetooth Low
Energy (BLE) beacons such as
iBeacon or Eddystone
The technology is heavily reliant on the
concept of crowdsourcing. However,
the technology relies on indoor RF
signals (such as Wi-Fi and Bluetooth)
with less reliance on GNSS .
Innovation Attributes
Tech
Profile Wh
osensewhere Ltd., established in 2005,
is focused on providing exceptionally
localized indoor positioning software. In
addition, the firm is involved in
providing business intelligence to
location-based advertising and
marketing.
Wher
esensewhere Ltd., is headquartered
in Edinburgh, UK. The company
has an additional office in Mountain
View, California.
What
➢ The company has developed a proprietary and patented positioning system that
incorporates/integrates technologies where available, such as RF (radio
frequency) signals including Wi-Fi and Bluetooth.
➢ Sensewhere servers are fed with indoor signals from the phone’s motion sensors
and the GNSS of all transmitters in real time.
➢ The crowdsourcing method is used to update the databases of the servers to
provide a comprehensive database of the transmitters. A distributed system with a
Wi-Fi location engine is used for position determination via the triangulation
process. In venues where Bluetooth Low Energy (BLE) beacons are deployed,
BLE positioning similar to Wi-Fi positioning can be used.
➢ The existing hardware in the phone – such as a compass, gyroscope,
accelerometer, and barometer – are leveraged to improve accuracy in real time.
Market
Potential➢ The crowdsourcing-based positioning system
available in the form of an SDK can be integrated
with many applications. Thus, it has high potential in
location-based advertising in retail.
➢ Integration with social media applications
➢ Mobile phone manufacturers
➢ Indoor positioning system for malls,
public offices, museums, and airports.
The company is
collaborating with
navigational and
mapping product
producing firm, Tom
Tom to penetrate into
Indoor Positioning
System markets.
Fu
ture
Pla
ns
35
...
• TBC
Tourist’s Mobility: Smart Cities
36There is a wide range of technologies, often from neighboring or even unrelated
spaces, which are shaping and/or enabling mobility solutions in Smart Cities
Sources: Frost & SullivanHighlighted technologies selected for their impact on mobility
By 2050, over 80% of the population in developed countries is expected to have moved to cities. This number is expected to be over 60%
for the developing world. The creation of Smart Cities enables a smooth transition to urbanization through the most optimal utilization of
resource to maximize value for the participants in the ecosystem. This value may be extrinsic as in financial, or intrinsic such as an
improvement in the quality of life, health, convenience or a reduced environmental footprint.
What are some technologies that will be most impactful to the evolution of smart cities?
There are many technologies that impact Smart Cities.
Ten of those, from a range of spaces, that are expected to have the most significant impact are;
• Distributed energy generation which leads to much greater efficiencies in energy management
• Smart glass which helps to reduce the environmental footprint of a smart city
• Personalized Medicine to move from a “one-size-fits-all” healthcare model to a more targeted approach
• AI which is expected to create predictive and prescriptive insights from data
• Robotics which are expected to increasingly automate dangerous and routine tasks
• Wearables which leads to real-time tracking of health and fitness, and improved patient outcomes
• Small Data which enables more efficient resource utilization
• High-strength, lightweight materials which leads to a reduced environmental footprint
• Vertical farming which will help combat space constraints and weather-related failures
37Utilising smart glass in private and public vehicles can reduce energy consumption
and provide passengers with enhanced comfort and privacy
Source: Frost & Sullivan
Smart glass has the ability to change or tune the light or heat transmission in presence of an external stimulus. With advances in material
science and increasing usage of mobile apps for on-the-go customization, smart glass can be integrated in smart cities to enhance the
sustainability quotient. The integration of smart glass with IoT (Internet of Things) can positively impact the building automation systems,
which are focused on building centralized automatic control. BAS/HAS can control power, heating, ventilation, air conditioning (HVAC)
systems or lighting.
Ove
rvie
w
Residential and Commercial BuildingsThe installation of smart glass has the ability to control lighting in the room, improving the residents’ quality of life. It reduces the need for air conditioning, thereby, reducing energy consumption. Integration of IoT iallows building managers to provide optimum comfort.
Solar Cells Smart glass can boost the efficiency of solar cells. Incorporation of solar cells into smart window modules will result in energy generation and solar glare control effect at the same time. This can fulfill the aesthetic aspects while providing environmental benefits.
Digital Media FacadesThe integration of smart glass with IoT opens a new possibilities for a large-scale displays for commercial and digital signage. Compared to conventional advertising billboards, this can also transmit sunlights to room, ensuring indoor brightness.
Mobility Utilizing smart glass in public and private vehicles, including cars, trains, can reduce the energy consumption reduction and can provide passangers with more comfort and privacy. It can also optimize the use of HVAC systems.
Smart Energy Smart Buildings Smart Vehicles Smart EnvironmentKey Areas of Focus
Smart glass
38
Artificial Intelligence agents will assess the density of traffic using GPS
Sources: Frost & Sullivan
Intelligent Mobility
Convergence of AI and LIDAR sensor will help autonomous vehicles to better interpret road signs, traffic lights, and detect
obstacles such as trees, other vehicles and pedestrians. Further, the built-in AI systems in the vehicle will drive it to near by gas
station or battery recharge station when it is running on low fuel.
Smart Parking
Artificial intelligence will be used in accurate parking and traffic management. AI will extract the information about nearby empty
parking spots using cameras installed on electric poles and will provide the information to drivers via smartphones. AI can also help
to keep track of parking inventory by using the technology called “license plate recognition” software. This will track the in-time and
out-time of cars in parking lots and charge them based on their parking hours.
Traffic Management
Artificial agents will assess the density of traffic using GPS and can control the traffic with adequate time slice as per requirement
and situation. This will reduce the commuting and idling time by intelligently routing vehicle and pedestrian traffic. The artificial
agent system equipped with neural networks and deep learning will train itself based on experience much like supervised learning.
Connected Infrastructure
Since infrastructure in smart cities are connected using different devices, chances of device getting hacked is very high due to out-
dated software, or due to a technical glitch in the connected device. Artificial intelligence will provide high level of security by
scanning every single device before it is connected to the infrastructure and ensure that all the software are updated, thereby
reducing the job of human security analysts.
Artificial intelligence
39Wearables, like smart glasses and watches, can improve a driver’s experience and
safety during travel by tracking their vital signs for tiredness
Source: Frost & Sullivan
Communications, Personal Productivity
Wearable devices such as smart watches and bracelets
double up as activity trackers and fitness trackers.
Besides aesthetic appeal, wearable devices also provide
functional utility such as providing maps for guidance and
display alert notifications to the wearer.
Mobility and Automotive Applications
Smart glasses and watches can improve driver experience
and safety during travel. Companies like BMW, Nissan and
Mercedes have invested in technologies to track the driver’s
vital signs to warn when alertness begins to wane. Similarly,
glasses provide augmented visualization without the driver
having to look away from the road
Homeland Security and Defense
In 2016, the U.S. Department of Homeland Security
launched a program to develop discrete wearable devices
that could detect radiation and nuclear bomb threats.
Integrated sensors would track and monitor the vital signs of
defence personnel operating in harsh and remote locations.
Healthcare and Well-being
The use of wearables to track patient vital signs has been
well established. Increasingly, signs such as dissolved oxygen
level, blood glucose and brain activity are being monitored.
Less popular, but equally important healthcare applications of
wearables include the use of smart glasses during surgery.
Flexible ElectronicsAdvanced
CommunicationsLightweight Materials Rapid ChargingConvergence
One of the fundamental attributes of a smart city is that is wirelessly connected, propagating the idea of internet of things (IoT). In such an
environment which pools together data and makes it wirelessly available, it becomes important that contributing to that data pool and using
data from that pool should be done in real time. This is where wearable devices come in. These are miniature computing and
communication devices that can be worn on the body of the user. The current generation of wearable devices are designed predominantly as
watches and bracelets that enable two-way communications. In the future, these devices will be further miniaturized.Ove
rvie
w
Wearables
40
High strength and lightweight materials are replacing metals in vehicles
Source: Frost & Sullivan
Potential Applications
Smart Manufacturing Smart Environment
Smart Building & Living Smart Transportation
Lighter and more mechanically durable materials are required for
construction of bridges, roads, and buildings in the residential and
public sectors. In order to decrease the overall weight of buildings
without compromising on durability, it is important to decrease the
overall mass of building materials such as bricks and concrete,
or to use reinforced materials in metal-based construction parts.
It is important to decrease the weight of light-duty and heavy-
duty vehicles in order to reduce the energy consumption. High
temperature-resistant plastics, carbon fibers, reinforced
composites have rising potential for use in vehicles.
Incorporation of nanoparticles for improved performance of
materials, such as strengthening metal alloys, is required to obtain
materials with high mechanical strength and defect-free surfaces.
This process allows to improve the performance attributes of
advanced materials, for instance, metal alloys for construction and
transportation in smart cities.
Higher sustainability quotient with longer lifespan and
increased recyclable content in materials are key for future
smart cities. The focus is also on replacing metals with lighter
composites and reinforced plastics.
High strength materials
41
...
• TBC
Tourist’s Mobility: Physical Security
42The physical city surveillance market includes cameras, video analytics &
management systems and storage with the former accounting for 59%
Sources: Frost & SullivanImage Source: e.huawei.com, itbusiness.ca, asmag.com, securityinfowatch.com
Cameras
Storage
Cameras are devices used in a surveillance system to monitor and record events that occur on a real-time basis.
Surveillance cameras have evolved from analogue to IP surveillance cameras (HD and Infrared (IR) cameras) that
provide improved quality, visibility, and performance.
Video Analytics
Video Management
Systems
Video Analytics comprises a wide range of software solutions embedded in the surveillance systems to perform a vast
range of activities which include traffic monitoring and management, facial recognition, automatic license plate
recognition, crowd analysis, privacy masking, object detection and classification, etc.
The VMS or Video Management System is a management platform that lets the user view, control, and monitor the
real-time data recorded by the surveillance system from a centralised location or through mobile devices.
Storage systems are devices used to store large volumes of structured and unstructured data generated
by surveillance systems. Storage systems are moving towards more distributed architectures from physical storage
systems to accommodate the increasing demands to store
large volumes of data.
43An increase in the deployment of solutions is driven by a desire to deter crime and
also to improve the operational efficiency of first responders
Sources: Frost & Sullivan
City Surveillance: Key Market Drivers, Global, 2017–2022
Drivers 1–2 Years 3–4 Years 5–6 Years
Crime deterrence H H H
Improving operational efficiency (force multiplier) H H H
Strategic planning H H H
Officers’ safety H H H
Impact Ratings: H = High, M = Medium, L = LowCrime Deterrence
• The constant threat of crime in public places, ranging from petty robberies to large scale attacks, continues to be a major cause of
concern in both developed and developing countries. The installation of public surveillance systems reduces the chances of a
criminal offence taking place as there is a higher probability of the perpetrators getting caught
Improving Operational Efficiency (force multiplier)
• Intelligent analytics solutions such as anomalous behaviour detection in crowded places identify suspicious patterns and
automatically triggering an alarm to the viewer. This in turn reduces the manual effort of law enforcement
personnel significantly and acts as a highly reliable force multiplier, allowing the deployment
of fewer skilled personnel
44
Concerns around privacy and low budgets are, however, restraining growth
Sources: Frost & Sullivan
City Surveillance: Key Market Restraints, Global, 2017–2022
Drivers 1–2 Years 3–4 Years 5–6 Years
Breach of privacy H M M
Low budgets H M L
Existence of legacy systems H M L
Limited bandwidth M L L
Impact Ratings: H = High, M = Medium, L = LowBreach of Privacy
• Despite the growing need for surveillance systems, breach of privacy due to constant real-time monitoring is a cause of concern for
people, particularly in Western European countries such as the UK, France, and Germany where privacy protection laws are highly
rigid. However, the recent emergence of privacy masking analytic solutions ensures that stringent security is maintained whilst
preserving the privacy of people.
Low Budgets
• Constant technological advances in various segments of surveillance systems with a focus on improving resilience and security
require significant funding from governments. Whilst the developed countries in Europe and North America have sufficient
government funding, developing countries in Latin America and Africa lack the ability to allocate substantial
budgets for the deployment of advanced surveillance systems.
45Overall, spending on city surveillance systems is forecast to grow at a CAGR of 4.1%
globally to reach $3.07b in 2022 up from $2.41b in 2016
Sources: Frost & Sullivan
Cameras will dominate market spending, primarily owing to the increase in digitisation and enhanced capabilities of cameras
to perform under challenging environments coupled with their decreasing costs. This will also lead to a steady increase in
spending on storage as increased surveillance is directly related to the better management of data
0,0
500,0
1.000,0
1.500,0
2.000,0
2.500,0
3.000,0
3.500,0
2016 2017 2018 2019 2020 2021 2022
Cameras 1.422,1 1.479,0 1.538,7 1.601,3 1.667,0 1.736,1 1.808,8
VMS 120,5 125,3 130,4 135,7 141,3 147,1 153,3
Analytics 144,6 150,4 156,5 162,8 169,5 176,6 183,9
Storage 723,1 752,0 782,4 814,2 847,6 882,8 919,7
Rev
en
ue (
$ M
illio
n)
Year
City Surveillance: Revenue Forecast by Product Type, Global, 2016–2022
46In the largest, camera segment, specialists such as Axis (Sweden) are competing with
more diversified companies such as Bosch (Germany)
Sources: Market participants, Frost & Sullivan
• FLIR
• AXIS COMMUNICATIONS
• DAHUA
• PELCO
• BOSCH
• HUAWEI
• HANWHA TECHWIN
• SONY
• PANASONIC
• HIKVISION
• HONEYWELL
• TYCO
Key Suppliers
• Price–Price is one of the key factors influencing surveillance system end users. Customers are
looking for cameras that ensure robust security as well as cost effectiveness.
• Ease of Use–with the increasing technological capabilities of digital cameras, ease of use
becomes a crucial factor from an end user’s standpoint. Whilst analogue cameras previously
required extensive expertise for installation and operation, the wireless IP cameras in the market
come with easily deployable instruction manuals.
• Reliability–Customers are looking for cameras that can ensure supreme performance
effectiveness even under extreme challenging conditions such as fog, rain, and snow.
• Brand Recognition–despite the emergence of a number of new suppliers in the market, brand
value plays a pivotal part amongst customers. Customers prefer brands that have a strong
market presence with large customer bases, as it is an indication of product excellence.
• Interoperability–Interoperability is another key competitive factor for suppliers. Customers are
looking for customisable IP cameras that are accessible from anywhere and also capable of
working with other digital cameras and existing legacy cameras.
• Technological Capabilities–customers are looking for IP cameras with advanced capabilities
such as infrared for enhanced visibility, PTZ and 360 zoom for increased coverage, and
intelligent analytics to trigger alarms in the event of a breach.
Key Competitive Factors
47Cameras find their application in a number of environments; wall-mounted, outside
fixed box solutions account for ~25% of the global market
Sources: Frost & Sullivan
For law enforcement purposes, cameras are generally located outside. Installation depends on the
urban environment and the surrounding (whilst surface, recessed, and parapet installations favour the use of dome
cameras, wall and pole installations are more suitable for fixed box)
City Surveillance: City Surveillance Installation Type, Global, 2016–2022
Installation TypeSpeed Dome Fixed Box Fixed Dome 360-Degree
Outdoor Indoor Outdoor Indoor Outdoor Indoor Outdoor Indoor
Surface - - - - 20% - - -
Recessed - - - - 5% - - -
Pendant - - - - - - - -
Wall 5% - 25% - 10% - 5% -
Pole - - 15% - 5% - 5% -
Parapet - - - - 5% - - -
48From a technology perspective, there is a clear shift away to HD IP video cameras
which offer better visibility and more accurate monitoring
Sources: Frost & Sullivan
• The glaring limitations of existing analogue cameras such as poor image quality, poor security, and inability to
perform under intense environmental conditions have driven the need for better, smarter, quicker, and more
scalable surveillance cameras to accommodate user needs more efficiently.
• Law enforcement agencies in cities have increasingly adopted high definition (HD) IP surveillance cameras
with advanced pan, tilt, and zoom capabilities for better visibility and more accurate monitoring and detection
and shorter response time in public places.
• The IR capability of thermal cameras to function under intense environmental conditions such as extreme
weather and poor lighting conditions on a 24x7 day/night basis offers smart cities the perfect solution for public
safety.
• The availability of encoder systems in the market ensures a seamless transition of legacy analogue systems to
IP surveillance cameras, whilst making the exercise cost-effective.
• Decreasing prices IP surveillance cameras will pave the way for their greater deployment and a shift in
investment towards intelligent user analytics and more robust storage systems to accommodate increased
volumes of data.
• The total number of IP cameras for city surveillance is expected to increase steadily from 17.2 million to 21.3
million across the forecast period, recording a CAGR of 3.6%. This is expected to be primarily driven by smart
city projects. On the other hand, analogue camera growth will taper from 7.02 million to 7.7 million, recording a
CAGR of 1.6%. This will provide suppliers with the perfect opportunity to offer IP cameras
with increased functionalities whilst ensuring cost-effectiveness.
49
Video analytics for traffic management are expected to become hot spots
Sources: Frost & Sullivan
City Surveillance: Key Analytics, Global, 2016-22
Key Analytics
Requirements of
End Users
Parking Space
Analysis
Facial Recognition
Technology
Metadata Searching
Crowd Behaviour
DetectionTraffic Management
Automated Number Plate
Recognition (ANPR)
Privacy Masking
Object Detection and
Classification
50
...
• TBC
Tourist’s Mobility: Cyber Security
51The cyber risk to smart cities requires a high level of planning; many governments
today are still grappling with the complexity of the challenge
Sources: Frost & Sullivan
Top Cyber Security Threats for Smart Cities, Global, 2016–2020
Malware in free public Wi-Fi
Hacking of public cameras and traffic
signals (devices and sensors)
Access to private healthcare data by
inducing worms
Altercations in governments’ open data
initiatives
DDoS attacks or ransomware attacks on
smart grids
Identity thefts (digital identity and smart
cards)
Threat Level Type of Solution Needed
Proactive
Proactive
Responsive
Responsive
Deductive
Proactive
Responsive
Reactive
Low High
Threats for Smart Cities
DDoS = Distributed Denial of Service
52
In general terms, effective cyber security relies on three principal pillars
Sources: Microsoft, Frost & Sullivan
Three Technology Prerequisites of Smart Cities
Robust Cloud Last-mile Connectivity Cyber Security
Three Pillars to Action—Cyber Security in Smart Cities
Protect across all endpoints, from
sensors to the data center
Detect all security issues using machine
learning and monitoring activities
Respond by closing the gap between
discovery and action
P
RDCyber Security
53With increasing connectivity, areas within cities which attract significant levels of data
exchange are the most open and vulnerable to attacks
Sources: Frost & SullivanCERT = Community Emergency Response Team
Vulnerabilities of Smart Cities and Their Impact, Global, 2016
Impact on Smart Cities
Low
Divided or lack of protocol
Cross platform communication
Poor or no network security
No prior security testing
No CERTs and no incident records
Lack of security awareness
Encryption Issues
No uniform standard across project implementation
Government People/End Users VendorsHigh
Smart City Vulnerabilities Verticals
54Smart city stakeholders must collaborate to create an integrated, end-to-end security
infrastructure, with a focus on secure citizen services
Sources: Frost & SullivanPPP = Public-private Partnership
Smart City: Roadmap to a Safe Smart City, Global, 2016
Governments People/End Users Vendors
Cyb
er
Se
cu
rity
Ro
ad
ma
p Steps to Address Smart City Cyber Security
Challenges and Vulnerabilities
Participation Level of Stakeholders
Set Up Laws and
Frameworks
Create Awareness
Goal
PPP Infrastructure
and Solutions
Maintain
AB
CD
Low High
• Set up network and information security agency
• Set up national cyber security council
• Security testing before implementation
• Risk mitigation and recovery teams
• Secure digital access, data, and sensors
• Create city and nation-wide CERTs
• Develop frequent security audit teams
• Fix security issues as soon as they are discovered
A
B
C
D
55Globally, device encryption, biometric & digital ID and smart grid management
solutions are at the forefront of the fight against cyber crimes
Sources: Frost & Sullivan
Cyber Security and Its Relevance to Smart Cities, Global, 2016–2020
Re
leva
nc
e t
o
Sm
art
Cit
y
• Threat and fraud analytics
• Biometrics and digital Identity
• Device encryption solutions
• Threat intelligence solutions
• Large-scale incident monitoring and
response platforms
• Smart gird management security
• Biometrics and digital identity
• Monitoring solutions
• Smart Infrastructure protection solutions
• Video surveillance solutions
• Endpoint security
• Risk assessment solutions
• Command center and communications
• Blockchain implementation
Traffic and Monitoring Energies and Power
Citizen Services
Mobile Applications Internet Connections
Connected (e.g., home,
office, and car)Medium High Very HighNascent
56
...
• TBC
Tourist’s Mobility: Airports
57Increased digital proficiency across product and services, enterprise operations and
customer experience, will reshape the aerospace industry
Sources: Frost & Sullivan
Digital
Evolution
Digital
Proficiency
Digital
Fundamentals
Product and
Services
Enterprise
Operations
Customer
Experience
Total Airport
Management
Autonomous
Services Augmente
d/Virtual
RealityIntegrated
Security Artificial
IntelligenceSelf-service
Biometrics
IoTMobility
Big
Data
Connectivity
Cloud
Security
Digital Platforms
Common-use
Business
Intelligence
58For airports, technology offers a solution to challenges, such as high passenger
growth, that legacy systems will not be able to adequately address
High Passenger Growth
New Business Models
Interoperability and Collaboration
Government regulations and
competition have resulted in a
price cap on aeronautical fees.
Operators need to find
innovative business models to
make revenue.
Passenger Satisfaction
High passenger throughput
creates strain on infrastructure.
Many airports are physically
constrained in their efforts to
support rising traffic flow.
Digitalization aids in
management of flows.
Airport infrastructure is fraught
with numerous systems that are
isolated from each other and
generate incompatible data.
These silos render data
collaboration unviable.
Low service quality,
mismanagement of facilities and
resources, long queues,
insufficient parking and complex
journey paths increase
passenger stress and
dissatisfaction.
Sources: Frost & Sullivan
Transition to ‘Smart’ Airport
Development of technology,
the need to reduce costs,
journey time, and automate
services represents a dynamic
shift in the airport business
model.
Operational Efficiency
Stakeholder Alignment
The business priorities and
privacy concerns of various
stakeholders hinders sharing
and collaboration of critical
information. Digital endeavors
can aid in overcoming
challenges.
Stagnant aeronautical revenue,
increasing operational delays
and stringent security measures
highlights the need for a
standardized digital model for
airports that streamlines
processes.
Sources: Frost & Sullivan
59The pace of change is however slow with only 32% of airports globally having
completed their digital transformation programs by the end of 2017
Top Digital Transformation
Challenges
• Resistance to change
• Training and expertise
required
• Implementation cost/
financial investment required
• Privacy and security
implications
• Ambiguity on standards and
regulatory policies
• Disruption to work processes
• Lack of clear business
information strategy
• Low or uncertain financial
returns / ROI
?
Less than half of global airports have undertaken digital initiatives. Large hubs and large point-to-point airports make up a majority of airports that have implemented digital programs.
Although digital transformation programs are in the nascent stages, airports acknowledge the importance of these programs.
While many departments are averse to the transition from a ‘well-oiled’ system, airports are generally hesitant to adopt digital strategies due to the costs involved, system downtime and limited clarity on standardization.
32% 68%
Done To do
Rate of Adoption
Airport Digital Transformation: Implementation
Progress, Global, 2017
Sources: Frost & Sullivan
60Overall, spending on technology from airports is forecast to grow at a CAGR of 3.8%
globally to reach $4.63b in 2023 up from $3.56b in 2016
Sources: Frost & Sullivan
Airport Digital Transformation: Airport IT Spending Forecast, Global, 2016–2023
3,56 3,73 3,90 4,05 4,19 4,33 4,48 4,63
3,00
4,00
5,00
2016 2017 2018 2019 2020 2021 2022 2023
Sp
en
din
g
($ B
illi
on
)
Note: The forecast reflects spending on software and related applications that form an integral part of digital technology. IT systems include
operational control systems, common use software and applications (web, mobile), baggage management software, airport management,
Business Intelligence software, billing and revenue management systems. The forecast does not include baggage handling systems, cargo
handling systems, self-service systems, hardware applications, airport equipment and security screening systems.
• Airport spending on digital technology is forecast to grow at a CAGR of 3.8% from $3.56 billion in 2016 to $4.63 billion in 2023.
• Apart from general IT infrastructure and maintenance, airports are investing in passenger service- oriented technology such
as self-service passenger processing solutions, baggage management systems, common use solutions, flight information
display systems and passenger flow management solutions.
• Airport IT spending is growing faster than total airport operating expenditure, making up 6.0% to 9.0% of total
OPEX for a majority of airports.
61The proliferation of technology suppliers is paving the way for partnerships,
acquisitions and investment in R&D to meet airports’ requirements
Sources: Market participants, Frost & Sullivan
Master Systems
Integration
Global Leaders
Passenger ManagementAirport Management Security ManagementBaggage Management
Infrastructure Management
Information and Communications
Landside Management
IT & Data Storage
IBM
Business Intelligence
Selected players
62
Digital transformation is making itself felt in all critical operational processes
Source: Frost & Sullivan
Passenger Operations Airport Operations Safety and Security
The adoption of various operations
management systems and
analytical tools provide operators
with greater control over traffic flow
and resource management.
Digital technology has transformed
the passenger journey with the
implementation of solutions that
enhance passenger processing
speeds, reduce queues and ease
the journey.
The implementation of integrated
cameras, access gates and safety
measures across the building
secures passengers, employees
and critical operations from attacks.
Administration and Finance
The proliferation of software tools
and applications have transformed
airport administration and revenue
management from a manual to an
automated process.
Baggage Operations Infrastructure Management
Technology allows operators to
control the airport environment from
a centralized system. The system
helps airports to reduce wastage
and minimize carbon footprint.
A number of digital initiatives have
been implemented to track and
monitor baggage, prevent baggage
loss and ensure passenger is aware
of baggage status.
63While large and point-to-point airports have invested in digital transformation
programs, technology is not yet a priority for many regional airports
Source: Frost & Sullivan
Airport Digital Transformation: Deployment of Digital Technologies, Global, 2016
Base: All respondents (n=50).Q20. Which of the digital technology listed underneath are already deployed at your airport and which ones are you planning to deploy.
Display Systems
General IT Infrastructure
Baggage Tracking/ Reconciliation
Airside Technologies
Asset Management and Planning
Digital Marketing
Passenger Flow Management
Business Intelligence and Analytics
Self-service Systems
Common Use Platforms
Location-based Service solutions
Collaborative Decision Making
Advanced Screening Systems
Ground Mobility Platforms
Cloud Data Platforms
Biometrics / Smart Security Gates
Smart Parking
68%
70%
44%
58%
44%
50%
48%
46%
48%
50%
42%
34%
28%
26%
29%
22%
20%
28%
22%
38%
24%
34%
26%
28%
30%
26%
22%
22%
26%
32%
32%
25%
24%
22%
6%
12%
12%
12%
16%
18%
20%
24%
26%
28%
20%
36%
32%
37%
42%
36%
6%
10%
8%
10%
16%
8%
6%
10%
6%
6%
96%
92%
82%
82%
78%
76%
76%
76%
74%
72%
64%
60%
60%
58%
53%
46%
42%
Already deployed, upgrade planned Already deployed, no upgrade planned Plan to deploy by 2020 No plans to deploy Don't know
64
Leading airports are moving from “Airport 2.0” towards a data driven strategy
Source: Frost & Sullivan
Data Ignorant Data Driven Strategy Data Exploitation
• Analogue
• Wired communication
• Multiple and unconnected
IT systems
• Limited data
• Significant data silos
• Digital transformation
• Wireless communication
• Integrating systems and
data
• Increasing data
• Reducing data silos
• Digital Everything
• 4G LTE
• Integrated systems and
agile infrastructure (cloud
based)
• Big Data
• Data driven support and
decision making
• Digital ecosystem and
connected travel
experience
• 5G
• Intelligent infrastructure
(machine learning and
robotics)
• Multi-source data
correlation, and predictive
and prescriptive analytics
LeadersLaggards
2020–2025 2025–2030
Airport 1.0 Airport 3.0 Airport 4.0
Present
Airport 2.0
Data Enlightenment
65
...
• TBC
Tourist’s Mobility: Airlines
66Airlines’ digital transformation programs break out into five main work streams and
have the potential to generate an additional $5-10 per passenger
Source: Frost & Sullivan
• A digital transformation program in a medium-sized airline with basic IT infrastructure may take 3-5
years to be completed.
• The incremental value of such a program could reach up to $5-$10 per passenger annually, mainly
generated via improved productivity, cost savings, and new ancillary revenue streams.
Airline Digital Transformation: Digital Transformation Program, Global, 2017
DT Workstream Components
Business IntelligenceData centralization (passenger, finance, performance, budget, capacity, flight/weather information,
baggage/cargo/fueling, commercial, directories), analytics
Digital Marketing Content management, distribution, CRM, loyalty, ancillary products, e-Commerce, m-Commerce
Core Airline Services PSS, revenue management, MRO, flight operations, airport operations, catering systems, network planning
Corporate Services ERP, PMO, finance/billing, SCM, resource management, asset management
Infrastructure IT, data centers, cloud, cyber security, centers of excellence (CoE), sensorization, workplace
1
2
3
4
5
67
There are a range of market trends that necessitate a digital marketing strategy
Source: Frost & Sullivan
Industry marketing budgets are now being re-directed to digital formats; dominance of digital formats over
traditional media
Growing demand from corporates to connect directly to airlines, bypassing intermediaries, such as travel
agents; this requires direct connect technology
Two opposing forces in product structures: Product Unbundling versus Value-Add Bundling; requires
customer insights
Consolidation in the Online Travel Agent (OTA) industry; airlines need to engage with OTAs and provide
digital data when needed
Emergence of Mobile Travel Agents (MTAs); airlines require right mobile strategy
Emergence of metasearch in flight search; there is need for rich, high quality data from airlines the market
Emergence of customers that are users of new technologies and open to share data; further need for
customization and focus on customer experience
68Overall, the “digital passenger journey” mirrors the physical journey with digital touch
points all along the way, including in pre-, post and in-travel
Passenger Journey
Inspiration Booking Pre-Flight To/From Airport Post-TravelSearch Flight
Web Mobile Kiosk Social Call CenterAssisted
Service/Sale
Agent Sale/
Service
Digital Touchpoints
Marketing Activities/Intermediaries
Metasearch
Online Ads
Traditional Media
PR
Social Word-of-
Mouth
Metasearch
OTAs
TAs
TMCs
Direct
Destination
Marketing
Self-Service
Airport
Service
Personalization
Loyalty Management
Disruption
Management
Ancillary Cross-
/Up-Sell
Source: Frost & Sullivan
69
Passenger segmentation is a key prerequisite for effective digital marketing
Source: Frost & Sullivan
Passenger
Interaction
Digital
Management
Enterprise
Information and
Integration
Business
Process
Management
Core Airline
Applications
Digital
Operational
Support
Data
Management
Content Management
System (CMS)
Digital Asset
Management (DAM)
Multi-channel Analytics
Campaign Management
Multi-Variant Testing
Dynamic Creative
Optimisation (DCO)
Key Digital Marketing ProjectsDigital Marketing Process
Management
Focus
Areas
Passenger Segmentation
Loyalty Platform
Mobile Application
New Distribution Capability
Contact Centre Automation &
Virtualization
Branded Fares
Social Media Management
Merchandizing
70Airports, airlines and others should use digital marketing tools to identify and
influence high value customers and customise their services accordingly
Source: Amadeus, Frost & Sullivan
Airline passenger segmentation starts with the requirement to increase customer satisfaction through cross-channel engagement
When to interact?
Identification of passenger journey stages
that provide the most attractive marketing
opportunities.
What level of personalization?
Customize solutions by building long-term
relationships and making sense of past
interactions.
What type of offer?
Develop the right products and services and
deliver at the right time and place.
What experience?
Understand the passenger needs and
wants. Business travelers are different
from leisure travelers.
How to interact?
Understand the right technologies and
mediums to interact with passengers.
What level of interaction?
What is the right level of interaction with
passengers to enhance their experience and
improve commercial revenues.
71
...
• TBC
Innovation: The role of Space
72Regulatory developments across the globe between 2018-2022 will enable the
expansion of the space industry and provide users with new products & services
S TW O
Strengths:
• New technologies
• Cheaper hardware
• Small form factor sensors and payloads
• Multiple commercial players
Threats:
• Reduced government involvement
• Business models not realizing required funding
for commercial operations
• Customers resisting migration to new frequencies
• Lack of suitable terrestrial solutions
Weaknesses:
• Delay in launch schedules
• Expensive launch prices
• Lack of sufficient ground infrastructure
• Irregular capacity usage
• Airspace regulations
Opportunities:
• Dedicated and cheaper launch services
• Connectivity over remote locations
• New high frequency services
• New business models
Source: Frost & Sullivan
73By 2030, over 13,000 satellites will be launched and space tourism is expected
to be one of many emerging business models
Source: Frost & Sullivan
Timeline
2016-2029
Scheduled small satellites
launch services
(30 potential players)
Spaceport-based
business models (US and
UK leading the game)
8,504 small satellites
to be launched
6 SBAS and 4 GNSS
(and regional) systems delivering
NAV services
Air launched and other
range-independent launch
capabilities
Additive manufactured
space hardware for satellites and
launch vehicles
Serial production of satellite
and launch hardware to meet launch
schedules
Broadband and narrowband
services to remote locations
via satellite
Space tourism business
models and high speed
air travel
13,462 satellites
to be launched
74Services enabling sub-orbital flights will begin in 2019, leading to high speed air travel
services by 2025 and, eventually, an established “spaceline” market
Source: Frost & Sullivan
Operations
covering sub-
orbital flights and
high speed air
travel by
2025
UK Space Industry
Bill 2017: Enabling
spaceport business
Commercial astronaut training center in the
UK: Blue Abyss: GBP 120 million,
to be ready by 2020
Abu Dhabi building spaceport: High speed
air travel; consequence of
space tourism efforts
SpaceX: Manned orbital
test flights (lunar) in 2018
World View: Multi-day
mission test in 2017; manned balloon flight
by 2020
Virgin Galactic: Test
flights in 2017; scheduled operations by
2018
China‘s Kuang-Chi Science: Balloon- based spaceflight;
complete trials by 2020
Japan‘s PD Aerospace:
Trials by 2020; operations by 2023
New commercial
spaceflight
business models
by 2019
By 2019, the market will be ready for scheduled operations
By 2025, this market will have a $1.2 billion addressable market
INDUSTRY DEVELOPMENTS
75Orbital flights have the potential to reduce long haul air travel time by 80% and will
need the development of “spaceports”
Source: Frost & Sullivan
Air Breathing Rocket Engines
Single stage to orbit capabilities will enable such high speed air travel operations connecting spaceports across the globe.
Spaceport Dominated Markets
This service will utilize spaceport- based
business models, enabling them to realize
revenues from individuals and organizations
Industry on Its Own
The commercial spaceline business will
represent a market segment of its own,
adding to the orbital launch market
Enhanced Personnel Deployment
Organizations will be able to deploy key
personnel across regions on-demand,
enabling the reduction in remote
participation in events of significance inside
and outside the business
Public Private Partnerships
Collaborative business models engaging government
and private entities will help to scale
up the market, globally
Standardized Production
Scheduled operations will depend on
standardized hardware and production processes
Enabling High Speed Mobility
The business model will be built on existing rocket
technologies, optimized for civilian human travel
Next-gen, Long Haul Flights
Elon Musk’s aspiration is aimed at enabling high speed
mobility across the planet, rendering international long haul
travel synonymous with local short haul travel
76Later this year, NASA will launch its Ionospheric Connection Explorer which is aimed,
among other things, at supporting the development of space tourism
Orbital
ATK Application
Earth Observation:
Atmospheric Imaging
(Assessment of ionized
gas attributes) for Fringe-
Risk Assessment
Launch Service
Provider
LEO/SmallSatellite
Type
Source: Frost & Sullivan
NASA will also be able to
guide space tourism business
models and help high-speed
air-travel capability developers
better understand the impact of
variables in the fringes.
Space weather services
provider will benefit from this
data.
NASA’s earth observation
mission to understand the
variable nature of the fringes of
earth’s atmosphere.
To better understand the
ambiguities imposed on all
space missions when they
cross the fringe regions and
to plan for data that can
support other atmosphere
bases risk assessment for
space and aeronautics
applications.
Inter-continental ballistic
missile systems will get
suitable upgrades and
revisions to their flight modes
when this data is utilized
extensively. This indicates
the operator is planning to
support the government’s
missile offence and defense
capabilities.
OpportunitiesWhat Why Implications
Source: NASA, Frost & Sullivan
77Development of the space industry will also enable satellite-guided airport operations
and seamless flight tracking by 2023
Increasing
Commercial Aviation
Traffic
Increasing
UAV Usage
in the Military DomainProliferation of Commercial
Drone Applications
Evolving Satellite
Guided Air-side
Operations
Evolving Regulatory Framework Covering Civil Airspace
Cooperative hunting architectures
evolving towards autonomous,
collaborative UAS missions
Autonomous UAS Missions
FAA is yet to comprehensively
regulate drone-based delivery
capabilities
Future of Drone-based LogisticsPerformance-based navigation
capabilities enabling aircraft access to
airports in low visibility conditions
RNAV Using
Augmentation Systems
Satellite-based flight
tracking for enhanced ETA
assessments and safety
ADS-B-based
Flight Tracking
Legal regulations for commercial drones in
effect since August 2016
Comprehensive Civil Airspace Management
Satcom for Onboard
Wi-Fi and Cockpit
ConnectivitySatellite-based seamless
connectivity for safety and
enhanced passenger experience
• Satellite operators in the connectivity
domain will deliver high throughput
connectivity
• Augmentation systems will deliver
precise navigation services
• Seamless integration of commercial
drones into civil airspace
Air Traffic Management: 2025 and Beyond
Evolving Air Traffic Management
Source: Frost & Sullivan
78On the ground, automotive OEMs will benefit from the deployment of more
sophisticated satellites to implement their assisted/autonomous driving programmes
Enhanced Navigation Enhanced Assisted Driving
Autonomous
Cars and Fleets
GNSS and
Augmentation
Systems
Satellite Imagery and
Mapping Solutions
Communication
Constellations and
Connectivity Solutions
Safety and Value-
added Services
Enhanced Telematics
Autonomous truck executed
first of its kind fully
automated delivery of
shipment [October 2016]
Autopilot system provides
driver assistance through
system-guided navigation,
vehicle control and
obstruction detection
The Platoon Challenge
in Europe witnessed
automated fleet
operations
2025 and BeyondKey Attributes
Evolved regulatory framework, autonomous vehicles, assisted
driving capabilities, onboard services via telematics
Impacts Enhanced revenue opportunities for incumbent and new
players Entry of new customer groups
Global
PresenceGlobal
Adoption2020 20252023
Source: Market participants, Frost & Sullivan
79Rail networks across the globe will similarly leverage satellite-based services to
enable fully automated operations by 2030
Source: Frost & Sullivan
SteadyVolume of
Goods Being Transported
Via Rail
ReducingOverall Rail
NetworkCoverage
Increasing Frequency and
Proximity of Locomotives
IncreasingSafety Risks
and Efficiency Losses
EnhancedGuided Rail
Traffic Management Trend
Sequence
Driving
Evolution
• Closely positioned locomotives
• Enhancing the utilization of rail networks
Satellite Guided Navigation Services
• Augmentation Systems and Connectivity
over Remote Locations
Key Space Segment Evolutions to Materialize
Automated rail traffic
management enabling
cross-network safety and
reduced delays and
congestion
2030 and Beyond
8.000.000,0
8.500.000,0
9.000.000,0
9.500.000,0
10.000.000,0
10.500.000,0
20072008200920102011201220132014
Year
Go
od
s T
ran
sp
ort
ed
(Millio
n-t
on
-km
)
Goods Transported via Rail,
Global, 2007-2014
• Enhanced voice and data
communications
• Efficient traffic and logistics
operations
Satcom Capabilities for
Efficient Operations
80
...
• TBC
Innovation: Flying Cars
81Flying cars can be segmented into two broad groups; those that can be operated both
on the road and in the air, and those that can be operated in the air
Sources: Frost & Sullivan
Flying Cars: Vehicle Segmentation, Global, 2017
Image sources: Popsci; CNET; Daily Mail; Ehang; Aerofex; Hoversurf
Next-generation Personal Flying Vehicles/Flying Cars
Roadable Aircrafts Roadable Gyrocopters Passenger Drones Hover Bikes
• Terrafugia Transition
• AeroMobil V3
• PAL-V Liberty Pioneer • Ehang 184
• Cormorant Air Mule
• Aerofex Aero-X
• Hoversurf
• Winged aircraft
• Can be operated on
air and land
• Propeller-driven aircraft
• Can be operated on air
and land
• Drones capable of
carrying people
• Can be operated
only in air
• Vehicles resembling
motorbikes, which can hover
• Can be operated only in air
82The search for alternative modes of transport, a burgeoning suburban population and
ever-improving technologies are all factors driving their development
Political
Economic
Social
Techno-
logical
Legal
Environ-
ment
PESTLE
Issues Impact on Flying Cars Industry
Governments globally are investing in smart
cities and looking for innovative ways to
address traffic congestion.
Governments open to new ideas would augur well for flying
cars to be considered as a serious alternate form of travel for
the future.
Globally, the number of dollar Millionaires
is set to rise 46.2% by 2020
The initial target market for flying cars would be the affluent; it
is positive that the target market is expanding.
In the United States alone, 600,000 people
travel 90 minutes or at least 50 miles to get to
office.
Creates opportunities for flying taxi operators to cater to the
suburban population that travels to cities for work every day
The advent of advanced GPS, sensors,
autonomous and battery technology
Technology suitable for developing a robust and safe flying car
is available now more than ever before
Rules and regulations for flying cars still in the
nascent stage
Rules and regulations are likely to be a big restraint for the
flying car industry to achieve successful mass
commercialization.
Emphasis on conserving forests and reducing
energy consumption
Green energy fuel is key for the success of flying cars. Vertical
takeoff and landing eliminate the need to destroy forests for
developing new airports.
Source: Forbes; Frost & Sullivan
83Regulatory hurdles and safety issues are the key challenges that OEMs must
overcome to win customers’ confidence and achieve mass commercialization
Source: Frost & Sullivan
Rules & regulations
Human Errors
TakeOff and
Landing
Safety
Hacking
Noise
Fuel Range
Air Traffic Control
• Flying cars have the challenge of meeting both the
stringent air and road rules and regulations.
• In future, when numerous flying cars traverse
the sky, accidents due to human error are a
distinct possibility.
• It is impractical to have long airstrips for
flying cars to take off and land everywhere.
• If airports must be used for this, it again
adds to traffic congestion while travelling
from the airport to the intended destination.
• Flying cars need to have foolproof fail-safe
mechanisms to counter any unexpected
crisis that may arise mid air.
• The efficiency of the flying car depends
on the distance it can travel without
refueling/recharging.
• Range and fuel efficiency are limited in
electric models under development.
• When the airspace is filled with
flying cars, providing an optimal
flight path to ensure that they do
not collide with other or other
obstacles will be a challenge.
• As vehicles become more
digital and software driven,
they are increasingly
susceptible to hacking.
• Noise from the propellers and
engine is a serious issue. If
flying cars are to become a
mainstream mobility solution in
future, this needs to be
addressed.
0
100.000
200.000
300.000
400.000
500.000
600.000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Price and Launch Year
Year of Launch
Xplorair PX 200
Ehang 184
PAL-V Liberty
Pioneer
PAL-V Liberty
Sport
Terrafugia
Transition
Volocopter
Aerofex
Aero-X
Joby
S2Malloy
Hoverbike
Pri
ce (
$)
84More than ten specialized flying car manufacturers are racing to launch their vehicles
in the next five years and gain a competitive advantage as first-movers
Source: Market Participants, Frost & Sullivan
• Roadable aircraft and manned drones set
to be launched in the next 5 years are
expected to be in the price range of
$200,000–$600,000
• Hover vehicles such as the Aero-x and
the Malloy Hoverbike are expected to be
priced between $60,000 and $100,000.
• Companies such as Airbus, Cormorant,
Carplane, and Lillium are also expected
to release their versions of flying cars in
the next 5 years, although they have not
revealed the price of their vehicles yet.
Flying Cars: Impending Avalanche of Launches, Global, 2016–2026
85Tech companies such as Google as well as aircraft and automotive OEMs (e.g. Airbus
or Toyota) are expected to enter the market in the slightly longer term
Source: Market Participants, Frost & Sullivan
Flying Cars: Current Participants Snapshot, Global, 2017–2035
Company Name Notes Industry Sign
Airbus Airbus is developing a flying car that it plans to test by the end of 2017.Airlines
UberUber envisions a flying car taxi service and is working toward enabling the
commercialization of flying cars.Ride Hailing
GoogleGoogle founder Larry Page funded two flying car start-ups Kitty Hawk and Zee.
Aero recently.Technology
Ehang China-based Ehang has developed a passenger drone, which is in the final stages of
testing.Drone
AeroMobil, Terrafugia AeroMobil and Terrafugia are two flying car companies that have developed
prototypes.
Flying Car
Specialists
Northwestern
University
Students from Northwestern University’s start-up incubator are working on developing
a flying car by 2024.Universities
DARPADefense Advanced Research Projects Agency (DARPA) has funded companies to
develop a transformer-type flying car.Defense
Toyota Toyota was recently awarded a patent for “Aerocar,” a shape-shifting flying car.Automotive
86Flying cars have the potential to address a wide range of public and private end-uses
including personal mobility, recreation, and emergency response
Source: Frost & Sullivan
Flying Cars: Key Applications, Global, 2017–2035
Shuttle service ferrying employees to
workplace, ride hailing service such as Uber
Competitive tournaments beyond just recreation
Assessment of vast lands of crops,
precise delivery of pesticides and fertilizer
Rides in amusement parks, sightseeing,
part of important ceremonies
Mine detection, troop & cargo transportation,
and ambush mitigation, border patrol
Accident response, first aid, airlift of
passengers
Disaster assessment, delivery of essential
commodities, rescue and airlift
Urban policing, riot control, hot pursuit
Military
Air Ambulance
Police Patrol
Disaster Response
Landscape mapping, natural gas pipeline
inspection and repair, logistics escorts
Ownership of flying cars by the general
population for everyday mobility needs
Surveillance
Air Taxi
Flying Car Race
Recreation
Agriculture
Personal Mobility
Service Business Model Profit Business Model
87Autonomous flying and Vertical Take Off and Landing (VTOL) technologies will be key
and will require manufacturers to make significant R&D investments
Source: Frost & Sullivan
Flying Cars: Technology Mapping, Global, 2017–2035
Pro
jec
ted
Im
pa
ct
on
th
e M
ark
et
High
Impact
Low
Impact
Technology Availability
Low High
High Capacity
Batteries
Autonomous Flying
Artificial
Intelligence
Biometric
Sensors
VTOL
Communications
Low Noise Pro-
pulsion Systems
High Growth Impact
Low Growth
Impact
Medium Growth
Impact
GPS Navigation
Light weight materials
Cybersecurity
88The flying cars industry is nascent but testing is under way and commercial launches
are expected by 2025; in 2040-50, they could become truly disruptive
Source: Frost & Sullivan
Flying Cars: Competitive Analysis—A Peek into the Future, Global, 2000–2050
2000Time
Mark
et
Valu
e
2025 2050
Nascent Pilots Growth Disruptive
Focus on Innovation
• The market is currently in this
stage.
• There are several small and
large participants in this very
nascent market.
• Rules and regulations are
major barriers.
• The market mainly consists of
disruptive start-ups and some
key aerospace companies.
Focus on Safety
• At least 15 different companies
to launch flying cars
• Commercialization to begin with
recreational applications
• Automotive OEMs to enter the
market with prototypes
• Evolution of rules and
regulations
• Evolution of supporting
infrastructure
Focus on Commercialization
• Applications such as security and
recreation will gain traction.
• Some first applications of air taxis
will evolve.
• Emergence of new business
models
• Competitive rivalry among flying
car specialists, aviation,
technology and automotive
companies, with their flying car
models
Focus on Expanding
Commercial Applications
• Could become disruptive and
replace some existing transport
solutions
• Potential of large number of
models in the market
• Application markets will grow
beyond niche if technology
proves sustainable and safe
2030
First testsMore pilot
tests
Limited commercial
applications
Wider
commercial
applicationsNon-automotive
entrantsAutomotive OEMs
89
...
• TBC
Appendix
90
Principal abbreviations
AI Artificial Intelligence KG Kilogramme
ANPR Automated Number Plate Recognition LED Light-Emitting Diode
API Application Program interface LTE Long-Term Evolution
AR Augmented Reality M Million
B Billion MRO Maintenance, Repair, Overhaul
CAGR Compound Average Growth Rate MTA Mobile Travel Agent
CERT Community Emergency Response Team OEM Original Equipment Manufacturer
CMS Content Management System OPEX Operating Expenses
CoE Centre of Excellence OTA Online Travel Agent
CRM Customer Relationship Management PMO Project Management Office
DAM Digital Asset Management PSS Passenger Service System
DARPA Defense Advanced Research Projects Agency R&D Research & Development
DCO Dynamic Creative Optimisation ROI Return On Investment
DDoS Distributed Denial of Service SCM Supply Chain Management
DHCP Dynamic Host Configuration Protocol TA Travel Agency
ERP Enterprise Resource Planning TMC Travel Management Company
GNSS Global Navigation Satellite System UAV Unmanned Aerial Vehicle
GPS Global Positioning System UK United Kingdom
HD High Definition US United States
HVAC Heating, Ventilation, Air Conditioning VLC Visible Light Communication
IoT Internet of Things VMS Video Management System
IP Internet Protocol VR Virtual Reality
IPS Indoor Positioning System VTOL Vertical Take Off and Landing
91
...
• TBC
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please contact Livio Vaninetti, Director of Frost & Sullivan Italy
September 2018
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