Director of Studies, IDATE DigiWorld
IDATE has just released its latest market report on connected cars, which is part of its ongoing series on the Internet of Things and M2M. The report provides an opportunity to take stock of a major market whose rate of development appears to be accelerating, with a series of announcements, veteran industry leaders such as Mercedes talking about driverless cars, the rise of newcomers such as Tesla, and connected car projects coming out of China, as foreshadowed by the new joint-venture between Internet giant, Alibaba and one of China’s first car-makers, SAIC Motors.
This is a market that every stakeholder along the value chain is gearing up for.
The strategy of most manufacturers is to make their cars connected. The main driver here is based on the regulation related to safety issues in Europe and the underlying revenue opportunity for them. In the USA, the recent GM announcement to embed 4G modules in all new cars is seen as a key trigger for market take-off. For telcos, the revenue opportunity could be interesting as the connected car will generate traffic that telcos will charge for indirectly (through the automobile manufacturer).
All main M2M mobile carriers are involved in the connected car space, as the connected car represents one of the major markets in volume. In a context where their traditional mobile revenues are flat and even declining in some regions, providing mobile connectivity in cars is a key business opportunity for telcos. Beyond car-related applications in driver assistance, from the perspective of a telco, the car can be seen as an additional cellular device, with a potential high-consumption service profile with such usage as the mobile Internet, entertainment on demand and mobile hotspot features. The prime business model remains the traditional wholesale relationship (B2B2C), even though some telcos like AT&T try to address end users directly through B2C models (through a retail data plan) and the integration of an automotive into the mobile share plan.
For Internet players, the strategy here is clear: the automobile is an additional connected device just as smartphones, tablets and laptops and needs to be addressed. However, Apple and Google do not have really the same approach. Indeed, whereas Apple aims to introduce its technology to interface with its products, Google is promoting the embedment of its technology into the car as a regular device. Google also wants to collect data to provide the most accurate advertising as possible, such as a related point-of-interest, based mainly on location.
A market that is starting to take off
On the market side, according to IDATE, in 2020, 420 million automobiles will be connected, representing a 34% CAGR on the 74 million connected vehicles in 2014. Nevertheless, this growth is not homogeneous for each category of connected cars. The embedded systems will lead the market by 2020.
Asia will lead the connected car market in 2020. Europe benefits from a 39% CAGR by 2020, mainly thanks to eCall regulation, entering onto market by end-2018.
In 2020, connectivity revenue for connected cars will exceed 9 billion EUR. In value, North America will be the leading zone, mainly due to higher ARPU than anywhere else in the world both for telematics and infotainment offerings. This encompasses direct connectivity through embedded systems but also indirect revenue related to smartphone usage. The major issues to be raised here are on the real willingness of the user to pay for such services. To encourage users to subscribe, telcos and manufacturers are already contemplating different revenue models including share plans. All the same, adoption is likely to remain limited over the next five years.
Forecast for connected car evolution, by implementation technique
worldwide, 2020 (%, Million units)
The headlines are full of the self-driving vehicle, which is on everyone’s lips in the industry. Automation could be framed at six levels, ranging from zero autonomy to fully automated. The leading manufacturers are, at the first steps, mainly luxury car providers. The traditional car manufacturers are focused on the semi-autonomous route, but the ‘upstarts’ from the realm of the Internet, such as Google and Apple, are straightaway testing the waters of the fully autonomous car. Nevertheless, many issues need to be removed to see the self-driving car market take off. Currently, they are legal (on how to handle accident responsibility), cultural (seeing no real demand from end users) and economical (on who will fund the infrastructure).
Find out more information on "Content economics market" in our dedicated market report
Debate over the crucial role that trust will play in the digital economy’s future
The 38th annual DigiWorld Summit will run from 15 – 17 November 2016, and have as its central theme: The Internet of Trust. It will be an opportunity to engage in a meaningful international debate over digital trust issues – starting with security and privacy – which have become major sources of concern for all of the ecosystem’s stakeholders.
As the number of reported cyber-attacks worldwide is growing by close to 40% a year, we expect that upcoming stages in digital technologies’ evolution will only amplify the phenomenon. And this to such an extent that any future scenario is possible: from a continuation of the current chaos to a breakdown in trust that would lead to the construction of a new digital economy, which will no doubt differ in many respects from the one we know today.=
• Are we reaching a tolerance threshold for online trust?
• How can veteran digital industry players (equipment suppliers, telcos, IT companies) capitalise on the current climate?
• Are verticals threatened by the situation or, on the contrary, on the winning side of trust and security issues?
• Do we need a new regulatory framework to govern, or reassure, market players and consumers?
The need for a profound reassessment of security and trust issues seems inevitable: massive increases in spending on security solutions, rise in protectionist behaviour (use of ad-blockers, battle against botnets, etc.), avoidance tactics (piracy and circumvention), clarification of the terms governing access to private data and the management of digital identities and online reputation… There is no shortage of issues and threats affecting the rate of adoption of digital technologies, but which could also prove to be opportunities for all market players.
> Use and misuse of trust
Will trust be a key parameter in tomorrow’s Internet?
• The privacy paradox: Usage is high, trust is low: Are we reaching a tolerance threshold for online trust?
• Digital trust at the heart of customer relations? How do Internet companies and verticals gain their customers’ trust?
• Can we trust digital world players? Can the Internet giants continue to be both the arbiters and targets of their users’ trust issues?
• Can the digital world trust us? Focus on piracy: Can businesses trust their customers?
> Trust technologies
A broad field of innovation for market leaders and start-ups
• Innovative security solutions: biometrics, etc.: What can we expect from the next wave of innovations in the arena of cyber security and data control?
• Blockchains and decentralized trust: Will today’s trusted third parties be cut out of the loop?
> Trust altering the digital value chain
Will trust be a game-changer?
• Trusted third parties & digital coaches: Will we see new trusted third parties emerge (banking, post, health…)
• Do we need more secure enablers? New growth enablers for telecom and IT industry leaders?
• What role for telcos? Monetise data or become trusted third parties?
> Business model crash test
Will the current and future business models for trust-sensitive advertising and IoT markets be suited to the new climate?
• Real time biding and programmatic ad buying: Can online advertising survive and adapt to the loss of trust?
• Big Data and the Internet of Things: Will successful trust management be key to the future of IoT and monetisation initiatives?
> Regulation of trust, and trust in regulation
How can regulation stimulate usage and innovation while also safeguarding against threats and transgressions in the digital economy?
• Trust and anti-trust: what about platforms? Can and must online platforms be regulated?
• Safe Harbor and Privacy Shield – the new deal: Can a balance be struck between conflicting European and US positions?
• Cybersecurity and terrorism: Are the future credibility of and trust in the digital economy bound up with the fight against global threats?
A unique international forum for debate and networking
> Thematic Forums
> DigiWorld Week
A full week of symposiums and partner events (13 – 21 November 2016)
> The DigiWorld Awards
Recognising the best digital start-ups created by French entrepreneurs abroad
Key facts & figures
Europe’s trailblazing conference on the digital economy
The DigiWorld Summit is an annual event organised and hosted by IDATE experts, with the support of DigiWorld Institute members. Every year it holds ultra high-level international debates on the core issues shaping the digital economy, with the finest speakers and industry insiders.
• Participants: 1,200 participants at the DigiWorld Summit and more than 5,000 at DigiWorld Week
• Speakers: 120 speakers from around the world; 400 at DigiWorld Week
• Partners and sponsors: over 100 partners and sponsors (businesses, public sector, media…)
• Social media: 15,000 tweets (trending topics) and 2,000 live followers
Speakers in 2015 included: Jimmy WALES, Founder, Wikipedia – Peter VERHOEVEN, Managing Director EMEA, Booking.com – Alex SCHLEIFER, Head of Design, Airbnb – Eric DENOYER, CEO, Numericable-SFR – Dan JUDKINS, Head of Global Design and Development, Hasbro Inc. – Carlo d’ASARO BIONDO, President EMEA strategic relationships, Google – WEN Rui, Director of national Business Development, Youku Tudou – Sebastien SORIANO, Chairman, ARCEP – Bruno LASSERRE, Chair, French Competition Authority… > for more, go to www.digiworldsummit.com
Director of Studies, IDATE DigiWorld
A Eur 30 billion worldwide market driven by automotive, consumer electronics & utilities
This IDATE DigiWorld report, published along a worldwide database, analyses the overriding trends and changes taking place in the M2M market around the globe. It explores the driving forces behind the market's growth and transformation, including an examination of major market trends, plus volume and value forecasts up to 2019 by geographical area and 25 countries.
Over the next few years, the M2M market will clearly be driven by three key verticals: automotive, consumer electronics and utilities.
• In recent years, the market has been driven by a few major verticals like Fleet management, Industrial asset management and Security. But the overall market in volume remains small, with potential for each market in tens of millions.
• In the upcoming years, there will be new major verticals (including Automotive, Connected consumer electronics and Utilities). Potential volume is definitely higher by expanding towards consumer objects (billions) rather than industrial objects only. Moreover, regulations will stimulate automotive in Europe and utilities though public policies in some regions worldwide. However, while they will theoretically drive the market, certain barriers could obstruct growth in these sectors. In the short term, some applications in these key verticals are recurrently delayed (as with the eCall regulation in Europe which is now expected to be rolled out from October 2018) and have a potential impact on the traditional M2M market. Moreover, the utilities market is seen as less attractive with business opportunity being somewhat limited for Telcos (concentrator will only be cellular connected). UK is a key exception as a cellular concentrator will be installed in almost all households (in two main regions out of the three).
• In the future, the market will be focused on emerging segments like healthcare with remote patient monitoring and smart homes.
The M2M market is still growing very fast
In 2014, the number of active M2M modules (all technologies included) reached 1.2 billion units. They will top over 4.1 billion by 2019 with a 29% CAGR.
• In 2015, the cellular market is expected to represent 290 million modules worldwide for a total market of 30 billion EUR. The annual growth of the M2M market is around 10% in value and 26% in volume, compared with 2014. Most revenues will come from software and IT services.
• Asia-Pacific will dominate Europe and North America in volume only. Europe will still lead in value, followed by Asia-Pacific. Since 2012, China has led the M2M world and has overtaken the USA in terms of cellular modules installed.
M2M players seeking business opportunities beyond their core expertise
M2M offers them attractive opportunities for Telcos, as, despite low and declining ARPU, projects offer high lifetime value, reduced churn rate and average deals representing thousands of SIM cards. Connectivity alone should represent more than 20% of total SIM cards for European telcos. Telcos are also trying to consolidate and reinforce their position on connectivity by looking at partnerships with LPWA providers, allowing them to address emerging applications.
Representing two thirds of the market, IT services are key in M2M and all players along the value chain are therefore attempting to position themselves by grabbing a piece of this lucrative market. Main players are looking at new services based on the cloud and Big Data (though analytics mainly), allowing them new business opportunities.
Finally, module providers are also challenged to break even in a market where unit prices are falling. In addition to services, they also attempt to offer connectivity services helping them provide end-to-end offering (MVNO acquisitions by Sierra and Neul purchased by Huawei).
Find out more details regarding market M2M in our dedicated market report
IDATE Insights : Philippe BAUDOUIN, Head of digital plan practice
5th edition of the Smart City Forum. This year with a focus on territorial strategy, and a second focus on the predictive analysis for the development of Smart Cities.
- First challenge on climate change, especially with the COP21 conference organized in France.
Smart City could allow making savings in terms of gas emission, equivalent to India production.
- 5 years ago, Smart City was a hot topic for very few cities. In 2014, 50% of 100’000+ cities were involved in Smart City development. Besides, the Caisse des Dépôts launched an initiative to help smaller cities to develop Smart City initiatives as well.
- Various approaches of the smart city : the block, the vertical, the citizen, …
Round-table: From experiments to strategic visions: how cities are becoming smart cities?
- Norbert FRIANT, Responsable Service Aménagement et Usages du Numérique, Rennes Métropole
- Benjamin FAVRIAU, Chef de projet Smart City, Mairie de Paris
- Hélène ROUSSEL, Développement filière d’excellence, Montpellier Méditerranée Métropole
Flash-back regarding what have been done regarding smart cities in your city ?
Montpellier is working on smart city for 5 years, and is currently in the end of a learning phase. Legislative tools and synchronization are complex to develop such initiatives. In 2010, Montpellier has been involved in the label “Eco Cité” allowing the city to start a reflexion with IBM and local labs on Smart City. 4 fields investigated : mobility, floods prevention, risk management. Currently at the end of the trial phase.
Rennes has the moto “living smart” since 1983. The city is very involved in data use and management, thinking early of open data, big data. Worked with Dassault to develop projects around data and worked with Montpellier to co-create data-based services.
Paris started an initiative for Smart and Sustainable City since last elections. The idea was to provide tools to the city to achieve its main goal regarding mobility, wastes, … The city is therefore currently developing new tools around data, and try to federate an ecosystem around data.
The position of the local administration regarding the development of Smart City
In Rennes, the role of the city and the “Metropole” is to be a data “régie”. The aim is to gather data, and manage initiatives around data, stimulate an ecosystem, and provide a “citizen fabric”. One of the issues for a data-based application is to create an audience.
In Paris, the city managed to release data for now. The idea is to open a reflexion on data to all partners that could be interested in the use of data. The city try to develop a territorial sense to federate players around data.
In Montpellier, the city was involved on open data. The “metropole” was involved on its side on data already used. Montpellier is therefore between both initiatives.
There is beside a challenge on the Internet of Things and connected objects, and how to use and federate data generated by these objects placed on the city. Telcos are involved, software editors as well. In Rennes, they work with the development of open technical bricks. The role of the city is to stimulate the local ecosystem around smart city. Rennes worked with research labs around Lora and the Lora alliance.
It can be the charge of cities to define a de-facto standard, at the national level.
About the link between Smart City and the French tech ecosystem
In Montpellier, the dynamic have been lunched concretely in 2015, especially with the Big Data Challenge. The Smart City is an enabler of the French Tech initiative and ecosystem, and the development of start-up community.
Paris worked with Numa (start-up incubator), to develop applications around Big Data.
Rennes also worked on data-based applications, around geo-tourism, developing new services, tested by local citizens.
There is also a culture of “free of charge” services that is killing start-ups, living more or less on public subventions rather than on a sustainable business model. The other players that are correctly living on smart city are large players including SNCF, Google, Cisco, IBM. Some of them do not release their data and are blocking the development of big data, especially start-ups.
Rennes and Montpellier answered to a call for projects in 2014 and have been chosen : they have launched jointly 10 challenges on Big Data. 4 companies from Rennes and 4 from Montpellier are involved in these Challenges.
Keynote : Gabrielle GAUTHEY, Head of Investments, Caisse des Dépôts
The smart city can take profit from the legacy city. The smart city is involved in the territorial transition, in the climate transition, the digital transition and the demographic transition.
How can we see the intelligence of a city (for the Caisse des Dépôts) :
- More fluid
- More sustainable
- More sober
- More resilient
- More inclusive (social integration)
Some original example of mobility / smart city solutions provided in France :
- Nantes developed a “pay-as-you-use” model for transport, bus, tram and train.
- Lille developed the concept of shifting time mobility: you are paid to shift your working time to take the bus out of the peak hour.
Infrastructure is key for the development of Smart Cities, especially to gather and store the data.
There are also needs for fixed mutualized telecom networks that are neutral and provided by the city. “It is necessary to have an open infrastructure to avoid silos and to release innovation”.
Governance is necessary to manage initiatives (by the city especially), and the citizens have to be involved in the development of these initiatives and applications.
Roundtable - Are predictive technologies the next stage in the smart city’s development?
Moderated by : Albert ASSERAF, Directeur général stratégie, Etudes et Marketing France, J.C. Decaux
- Jean COLDEFY, Directeur, Service Mobilité Urbaine du Grand Lyon, Optimod Lyon
- Philippe SAJHAU, Vice President Smarter Cities France, IBM
- François STEPHAN, Directeur de Programme « Systèmes de Systèmes », SystemX
- Michel LIGNON, EMEA Telecom Sales Director, Ruckus Wireless
Presentation of round table members’ involvement in predictive analysis for Smart City:
SystemX: Research labs placed in the Paris-Saclay innovation cluster. Work especially on smart territories, and especially on predictive data analysis. To work on transportation systems, it is necessary to modelling transport networks in order to understand the how it works. It leads to understand how people flows are moving, by investigating at stations, analyzing location-based data from mobile operators, or location-based tweets.
IBM – Smarter Cities: Analytics is only one step among others on the “smart” aspect of the city. In 2020, there will be 1.7 Mbyte generated each second for each person around the world. It is therefore necessary to use these data to generate value, in order to improve living conditions in the city. IBM worked with the Chinese government to anticipate pollution levels 72 hours upstream. The territory have to stay at the center of the smart city initiative, and at the core of the governance.
Optimod – Lyon: technology is a mean and not a way to make investment. The main goal remains related to the city: mobility, environment, … Optimod deals with transportation in Lyon. The idea is to answer issues regarding environment: reducing gas emission, reducing transport costs (including cars and public transport). The first option is to change behaviors regarding cars, the other option is to change infrastructures. Digital can help changing things waiting for disruptive options in terms of transportation. Optimod works on predictive analysis especially for traffic lights optimization. Companies like Uber do not generate value, rather destroy value at the scale of the city. It is important to keep the value within the city and to preserve the economic ecosystem.
Ruckus Wireless: Californian company working on smart city communication infrastructures. Some developing countries are more advanced than developed countries in terms of Smart City initiative. In the US, Ruckus worked in San Francisco, Los Angeles and San Jose: developed services with real-time parking places available. Also analyzed data from SingTel in Singapore to know how long people are waiting for trains, by analyzing wifi connections density on the platform. In NYC, provide Wifi interactive hot-spots, to replace the existing phone booths, providing especially free calls over-wifi on these hot spots.
Head of radio technologies & spectrum practice, IDATE
Now mainstream for MNOs and key issue for smart city
Mobile data traffic is continuing to grow fast. To cope with the data surge, MNOs are in a very complicated situation, where they need both to provide improved coverage or capacity to customers and to proceed with great caution on spending. This latest IDATE report presents the state-of-the art of the small cell and Wifi opportunities to close the gap and highlights strategies at play. It also gives the flavour of future scenarios.
Wifi is not brand-new. It has been playing a key role in releasing network congestion for years because it is not expensive. Seamless connectivity and handover between cellular and Wifi are addressed carefully. Carrier Wifi solutions that promise an enhanced customer experience and security through Passpoint/Hotspot 2.0 are currently implemented by players. Wifi has also been widely adopted to provide voice services through Wifi calling, also known as VoWiFi.
All in all, small cell and carrier Wifi are needed for a smooth transition to 5G, scheduled at the earliest for 2020. IDATE forecasts the small cell market is at last close to take-off. We foresee a huge growth of the small cell market driven by a robust increase in mobile data traffic:
• Macrocell densification continues in Europe as population coverage has not yet reached the 95-100% range.
• Alongside macro cells, MNOs are increasingly relying on carrier Wifi and small cells to cope with mobile data surge in cost-cautious times. Small cells have extended beyond the first devices dedicated to residential use and moved to urban, enterprise and rural areas. Technical innovations facilitate the management of small cell interference with the macro network. Small cells give the opportunity to come closer to the user and to increase customer experience. They can be installed in street furniture, for instance.
• In this face-off between cellular and Wifi, different players want to take a share of the cake.
Wifi-first players appeared in 2014 in the USA with a disruptive proposition: customers are using primarily free Wifi and they switch to paid cellular when Wifi is not available.
With Wifi, cablecos are on the road to offer quad-play services. Mobile is both an additive strategy to grow into a new market segment and a defensive strategy to cement cable’s stronghold in households.
OTTs were very successful in creating innovative services and in expanding them to many different devices. With a 20 USD plan, Google Fi is able to threaten MNOs in the USA and to attract young price-sensitive customers. Apple was very successful in eating into MNO revenues with popular iPhone services.
Small cells as a strategic path to the smart city
Small cells can use existing street furniture such as lamp posts, billboards or bus stops to come closer to the customers: JCDecaux pioneered the concept of subsidizing public street furniture in exchange for rights to advertise. Installation can also be done on municipality furniture such as lighting poles and traffic lights: Philips promotes actively the LED technology. Supporting digital lamp posts, it signed a partnership with Ericsson to integrate Ericsson’s small cell equipment in lamp posts.
Towards hyper density and emergence of smart cities
Source: IDATE, Small cells and Wifi offloading, August 2015
Find out more information on "Small cells and Wifi offloading" in our dedicated market report
More informations about IDATE's expertise and events :
ICT industry players vs. the new disrupters
From 17 to 19 November 2015, the 37th annual DigiWorld Summit will bring together 140 top-tier speakers from around the world to Montpellier, to share their views with the more than 1,200 participants from over 25 countries. French Tech will also be in the spotlight during the 2nd annual DigiWorld Week and at the inaugural DigiWorld Awards.
For IDATE Chairman, François Barrault, the theme of “Digital-First” – which was chosen in concert with DigiWorld Institute members – “refers to the tremendous rise of digital technologies in the business world, and huge changes in consumer behaviours. This astonishing acceleration is upsetting the status quo and shaking up the traditional economy, paving the way for new business models ushered in by the digital economy”.
Supervising the programme is IDATE CEO, Yves Gassot, drawing on IDATE consultants’ knowledge and expertise. “Once again this year,” says Mr Gassot, “the participants coming to Montpellier will get an invaluable, detailed snapshot of all of the latest digital industry events, thanks to the plenary sessions and the many forums, and to a large and prestigious panel of speakers from Europe, the United States and China who will be on hand to debate the multifarious questions raised by the ongoing digital revolution”:
• What are the promises of this new age of knowledge? with Jimmy WALES, Founder, Wikipedia
• How is the Internet changing the travel industry? with Peter VERHOEVEN, Managing Director EMEA, Booking.com and Alex SCHLEIFER, Head of Design, Airbnb
• How are veteran toy companies reacting to the video game invasion? with Dan JUDKINS, Head of Global Design and Development, Hasbro Inc.
• How are the Internet giants adjusting to the changes at work? with Carlo d'ASARO BIONDO, President EMEA strategic relationships, Google
• In with the new for a telco going global, with Michel COMBES, COO, Altice
• Is everything about to change for telcos? with Santiago Fernández VALBUENA, Group CSO, Telefónica
• What services will be attached to smart devices? with Bruno BARLET, Executive VP France, LEGRAND, Vincent CHAMPAIN, Operations Director, General Electric and Xavier BOIDEVEZI, VP Development & Digital, SEB
• Just how far can telcos go in helping their customers’ digital transformation? with Thierry BONHOMME, Senior Executive Vice President, Orange Business Services
• Do we really need new dedicated networks for the Internet of Things? with Geoff MULLIGAN, Chairman, LoRa Alliance and Ludovic LE MOAN, CEO, Sigfox
• Will the next Netflix come from China? with WEN Rui, Director of national Business Development, Youku Tudou
• Will new gen mobile TV be the new killer app for video? with Richard LUCQUET, Director, Business Development Technology Partnerships & Licensing, Oncue (Verizon)
• What does the future hold for a top, integrated telecom equipment supplier? Vincent PENG, President Western Europe, Huawei
• Does regulation need to adapt to Internet rules? with Fatima BARROS, Chair 2015, BEREC, Sébastien SORIANO, Chairman, ARCEP and Bruno LASSERRE, Chairman, French competition authority
• Can we count on digital markets to deliver a new period of growth? with Georg GRAETZ, Associate-Labour Markets, London Economics School and Jean-Hervé LORENZI, President, Cercle des Économistes
• As well as: Accenture, BBC, Bouygues Telecom, Deutsche Telekom, Ericsson, France Télévisions, edX, IBM,
• JC Decaux, NEST, Nokia, Qualcom Life, SEB, SNCF, Studio Bagel, Wilseed Studio…
The DigiWorld Summit programme has grown in 2015, to give us a chance to explore the ins and outs of the tremendous and wide-reaching effervescence at work in digital industries today: “This is why we are hosting the second annual DigiWorld Week, which was designed as a collaborative space for partner events. We will also be hosting the first ever DigiWorld Awards, which were created to identify and reward French talent abroad, with special guest, Axelle Lemaire, French Minister of State for the Digital Sector,” explains IDATE’ deputy CEO, Jean-Dominique Séval.
> View the complete programme at:http://digiworldsummit.com
DigiWorld Week 14 – 22 November 2015
IDATE expands on the two days of the DigiWorld Summit, and plays host to an exciting event-filled week. Delving deeper into the issues and shaking up ideas through symposiums, workshops, hackathons, exhibitions, festivals, master classes, digital café… Exploring a host of topics, including the cloud, IoT, eHealth, FX, digital arts, smart agriculture, management, …
> Get the latest news at: www.digiworldweek.com
DigiWorld Awards 19 November 2015
In partnership with Business France and French Tech, IDATE will be hosting the first annual DigiWorld Awards, recognising French digital start-ups (Equipment and devices, Networks and telecoms, Internet services and application, M2M and IoT…), created abroad. Awards will be in four categories: Africa and the Middle East – The Americas – Asia – Europe. The winning start-ups will be added to the international innovation support programmes being run by Accenture, Capgemini, Ericsson and Orange.
> For more details: http://www.digiworldsummit.com/awards
Follow us on Twitter: @DigiWorldIDATE
Head of Media & Digital Content Business Unit, IDATE DigiWorld
Who will come out on top?
The development of smart TV is inextricably bound up with the widespread availability of high-speed Internet access, a shift to more and more individual viewing and the proliferation of smart devices in the home. Together, these three elements are steadily revolutionising how viewers access their TV programmes, and providing them with an array of new functions and features.
Televisions can be connected to the Internet in several ways. Using:
• a smart or connected TV (direct connection, via Ethernet or Wi-Fi)
• a connected set-top box/DVR,
• a connected set-top box/DVR
• a streaming box or stick
• or a connected game console. or a connected game console.
Today, close to half of the televisions being shipped are smart TVs, even if their owners may not systematically take advantage of the Internet connection. At the same time, the market for streaming devices – whose main purpose is to play online videos – is progressing rapidly.
Within this market that is still populated by a great many solutions and services, several trends are taking shape:
• smart TV has shifted from "Internet-centric" to "video centric";
• managing connectivity with users’ personal devices has become a key issue, with app systems playing an increasingly central role;
• OTT services are moving to the TV and making real strides;
• viral platforms, which are “systematically” included on smart devices, are steadily consolidating their position in the video distribution chain.
Technological progress is also helping to vitalise the market, whether by increasing users’ connection speeds, through progress in compression thanks to the use of HEVC, or functionalities that improve the user experience, such as casting – i.e. the ability to send content from a personal device to the TV set.
The main stakeholders in the connected TV ecosystem can be broken down into three categories, based on their original sector of activity: consumer electronics (CE) companies, TV market players and the Internet’s leaders.
• CE industry players are working to improve their software interfaces, either through dedicated developments such as Samsung has done with Tizen, or by acquiring another company, as LG has done with WebOS. The aim is to capture the added-value in the marketplace, whether in the arena of services and/or by selling high-end devices.
• Players from the TV universe are developing their OTT products, and working to bolster their position on the software side of the equation with more open and hybrid platforms. The smart TV could enable them to renew ties with consumers, and better monetise their plans. Veteran TV market players nevertheless remains threatened by the shift to more individual viewing, the risk of being cut out of the equation and a dramatic loss of revenue. Smart TVs can actually accelerate the growth of on-demand services, which naturally threatens the business of TV channels, and especially specialty channels, as well as the business of those who assemble pay-TV packages.
• Lastly, companies such as Google, Amazon and Microsoft that dominate the Internet, are very knowledgeable about software, and changing consumer habits. So they are in the best position to deliver a top-notch user experience, whether in terms of smooth and intuitive interfaces, or providing recommendations based on user data. Their increasingly vertical positioning – covering everything from the content to the device – is also bolstering their potential to capture a growing portion of the video entertainment market.
Impact of the three scenarios on the smart TV market in 2025: size of the OTT market and smart devices used (billion EUR, %)
Source : IDATE, Connected TV, June 2015
The purpose of the three scenarios for “smart TV in 2025" is to determine which industries are likely to increase their control over the smart TV environment:
• TV market players: "Smart TV ";
• CE market players: "Consumer Electronics+";
• or Internet specialists: "Internet video".
The size of the OTT video market will vary considerably under the three scenarios, depending on how the environment evolves and so which industries prevail. We estimate that the market could climb to:
• 41 billion EUR under the most conservative scenario, “Smart TV”;
• 57 billion EUR if consumer electronic gain the upper hand, with earnings based on revenue sharing;
• 105 billion EUR if Internet companies prove the most successful, with an ecosystem tailor made for OTT video services.
The popularity of the different devices will also evolve along the same lines:
• the television will be used less to access services as the more disruptive scenarios come into being;
• eventually, the PC will be marginalised, replaced to a large extent by personal devices.
Regardless of the scenario, smartphones and tablets will be used more and more to watch videos, especially as viewing becomes an increasingly individual pastime.
Find out more on Connected TV in our dedicated market report
The place to be in Europe, to understand upcoming disruptions and their impact on telecom, IT, Internet and media markets
From 17 to 19 November 2015, the 37th annual DigiWorld Summit will bring together 150 top-tier speakers to Montpellier to share their views with the more than 1,200 participants from over 30 countries. French Tech will also be in the spotlight during the 2nd annual DigiWorld Week and at the inaugural DigiWorld Awards.
Under the banner of “Digital First” IDATE will host debates on the core trends shaping telecom, IT, Internet and media markets, with the knowledge that digital technology is entering a new stage in its ubiquity, becoming the vehicle of a major overhaul in many sectors: energy, insurance, finance, health, automotive, travel and tourism… “But,” says IDATE CEO, Yves Gassot, “this digital verticalisation also represents a new challenge for IT, telecoms, Internet and media industry stakeholders. They may see new growth opportunities, but also challenges as innovation cycles are accelerating, as they consider the shifting outlines of their business and contend with new digital intermediaries.”
This new stage in the digital transformation is being spurred by ubiquitous wireline and wireless connectivity, the economies of scale of cloud computing, and the power of real time data processing algorithms. But it is being amplified by the rise of connected objects, and the promises of 3D printing, of artificial intelligence and the collaborative economy. A profound transformation of the economy that is already materialising in changes to production and distribution infrastructures, in the accelerated shift from product to service and the profusion of channels for interaction with end users.
• What do vertical companies (media groups and TV networks, insurance, automotive, travel, retail, etc.) want from digital industry players (telcos, OTT, IT)?
• How should digital industry players position themselves with respect to the digital transformation in vertical markets?
• How can the Web’s top destination platforms cohabitate with the vertical markets’ new digital champions?
• This year’s Guest Country: China. Can China combine the power of its recently acquired positions in Internet and telecom markets with its manufacturing ambitions?
2015 DigiWorld Summit Programme
Analysis and debates between veteran industry players and disruptive start-ups, with insights from IDATE’s finest economists and analysts:
Digital Europe, Digital World
In-depth seminars with the industry’s top expertsConnected Things Forum
Smart City Forum
TV & Video Distribution Forum
Future Digital Economy Forum
DigiWorld Week (14 – 22 November 2015): IDATE expands on the two days of the DigiWorld Summit, and plays host to an exciting event-filled week. Delving deeper into the issues and shaking up ideas: symposiums, workshops, hackathons, exhibitions, festivals, master classes, …
DigiWorld Awards: in partnership with Business France and French Tech, IDATE will be hosting the first annual DigiWorld Awards, recognising French digital start-ups (Equipment and devices, Networks and telecoms, Internet services and application, M2M and IoT…), created abroad. Awards will be in four categories: Africa and the Middle East – The Americas – Asia – Europe
The DigiWorld Summit, is organised under the patronage of the French Ministry of the Economy, Industry and Digital Affairs, the Région Languedoc Roussillon and Montpellier Métropole, with the support of DigiWorld Institute member companies.
More informations about IDATE's expertise and events :
Il décolle ! Le marché du Serious Gaming en forte progression pour atteindre les 12 milliards d’Euros d’ici 2018.
L’innovation est au coeur des préoccupations des entreprises qui développent des Serious Games. Elle porte sur des aspects technologiques (accessoires, terminaux, interfaces, réseaux, logiciel et cloud), sur les contenus (gameplay, graphisme, stratégie éditoriale), et également sur les services d’accès aux SG (conditions d’accès, add-on, modularité de la plateforme, fonctionnalité sociales).
Cette progression du marché offre donc des perspectives très prometteuses aux développeurs de Serious Gaming (SG) sur le territoire français, comme le confirment les cinq sociétés que l'IDATE a invitées à collaborer à ce rapport : Daesign ; KTM Advance ; Groupe Interaction ; Manzalab et Dassault Systèmes.
Aussi, sur la période, on observe une croissance à deux chiffres à partir de 2015 et un pic de croissance sur 2016-2017. Ce pic correspond à un phénomène d’accélération de l’adoption du SG comme outil de formation et d’information par des PME. Aujourd’hui, ces dernières commencent à vouloir adopter ces outils vendus sur étagère.
La formation initiale et continue représentera plus de deux tiers du marché en 2018
Le segment de marché de la formation initiale et professionnelle représente le premier segment de marché du SG. Ce segment offre l’avantage d’avoir des modèles économiques compris et acceptés des commanditaires, de la production à façon à l’acquisition de licences utilisateurs.
Pour rappel, en 2014, ce segment représentait plus de 60% du marché global. Il gagnera 10 point jusqu’en 2018.
À l’image du marché mondial, le pic de croissance concernera davantage les années 2016-2017.
Ainsi, Dans les trois années à venir, le défi des acteurs offrant leurs services dans le SG sera de convaincre les entreprises de plus de 500 salariés, soit près de 2 700 en France. Les experts de l’IDATE s’accordent à dire que ce défi pourra être relevé tant les preuves du concept ont été faites auprès des grands comptes nationaux. Il s’appuiera donc sur différents facteurs clés de succès :
Pour retrouver toutes les informations concernant l’étude Serious Gaming et les études associées, cliquez-ici
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