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Gian Gherardo CaliniHead of Market Development

European GNSS Supervisory Authority

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GSA Market Development and R&D strategy - Agenda

GNSS downstream market and benefits

FP7 Strategic objectives

GSA approach

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GSA Market Development and R&D strategy - Agenda

GNSS downstream market and benefits

FP7 Strategic objectives

GSA approach

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All players shall benefit from a huge global GNSS market …

GNSS worldwide market* revenuesProducts & services, €bn

0

50

100

150

200

250

300

20

07

08

09

10

11

12

13

14

15

16

17

18

19

20

Note: * Enabled market, i.e. including both price of services and devicesSource: L.E.K. research and analysis

5

5

A new digital camera on the market has a built in compass, able to geo-tag images as they are captured

Source: L.E.K. research and analysis

A new watch incorporates a high sensitivity GPS, allowing to monitor altitude, barometric pressure, speed and distance

A new ultra mobile PC, just presented in the US, works also as Personal Navigation Device

… experiencing a continuing trend of new products and services…

A new software able to show nearby points of interest, as well as a capture button to record favourite routes, locations, and voice memos

A navigation device specific for the trucking industry, able to provide, specific information (e.g. height restrictions, hazardous materials restrictions, points of interest)

A GPS-based waterproof recovery and tracking device, features also always-on cellular communications for security monitoring

Nokia has introduced a new series of mobile phones with a built-in GPS receiver with Nokia Maps application and navigation services

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Europe has a significant market share in key sectors of a relatively consolidated market …

Market size of EU players by industryProducts & services, %

EU EU

EUEU EU EU

Non EU Non EU

Non EUNon EU Non EU Non EU

0

10

20

30

40

50

60

70

80

90

100

Chip

sets

Platf

orm

s

Dev

ices

(Roa

d)

Dev

ices

(LBS

)

Cont

ent &

appl

. (Ro

ad)

Serv

ices

(LBS

)

Note: * Approximate figuresSource: L.E.K. research and analysis

Size (€bn)*

Concentration

0.5

VeryHigh

20

Medium

>5

High

>80

High

1VeryHigh

>200

MediumEurope is a first tier player within the GNSS industry:

• In the key segments of services and devices it has a global market share ranging from 27% to 42%

• Europe has also a strong presence in other segments of the value chain

7

7

0

10

20

30

40

50

60

70

Ups

trea

m

Dow

stre

am

Use

rs

Soci

al

Tota

lbe

nefit

s

… and is therefore well positioned to exploit the benefits brought by Galileo

Source: L.E.K. research and analysis

Benefits for European firms, users and society Cumulated up to 2030, €bn

11 3 63

45

Galileo will bring €63bn of cumulated benefits to Europe up to 2030

• Downstream and upstream industries will increase their competitiveness

• Users will benefits from launch of new services and from increased performance on existing ones

• Among social benefits, a reduction of pollution as well as increased safety will be the major source of benefits

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GSA Market Development and R&D strategy - Agenda

GNSS downstream market and benefits

FP7 Strategic objectives

GSA approach

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FP7 Strategic Objectives

1. Create economic value

2. Ensure EGNOS and Galileo competitiveness

3. Maximise public benefits

4. Project the image of Europe

FP7: stimulating R&D towards market and GNSS industry progress

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GSA Market Development and R&D strategy - Agenda

GNSS downstream market and benefits

FP7 Strategic objectives

GSA approach

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R&D is a key element in our approach …

Generation/ Concept

Generation/ Concept

Readiness level of technology, application and ideas

Validation/ Demonstration

Validation/ Demonstration Completion/ OperationCompletion/ Operation

Awareness programme•Network events•Business plan contest•Marketing

Support to R&D•Research programmes•Joint research•Expert network

Business incubation•Incubation•Expert network•Test environment

Funding

•Seed funding•VC funding•JV•M&A

Entry to Market

Entry to Market

FP7 focus

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We concentrate on projects and activities impacting the whole value chain …

Device makers require integrated solutions to produce complex

products cost effectively

Services are becoming keyto attract new customers

Focus is on applications (more than 50% of FP7 1st call) which drive the downstream industry

Chipset providersChipset

providers

Platform & receiver

manufacturers

Platform & receiver

manufacturers

Devicemanufacturers

Devicemanufacturers

Content & applications

providers

Content & applications

providers

Service providersService

providers

13

13Product Maturity

Pote

ntial

End-to-end Concept

Tech. Devp.

Regulatory/ legal.

Business economics

Pre-market trial

Road PricingLBS social

LBS innovation

Com. Aviation

Maritime

RailTiming

Security

Road Congestion

Road VASRoad Fleet mgt.

General Aviation

Aviation airports

Agriculture

Road Emergency

Downstream markets opportunities have been reviewed…

Surveying

+

-

14

14

…In the 1st call applications in road, aviation and LBS also via SMEs were addressed …

Topic Budget (€m)

# of projects

Road Innovative GNSS-based road applications - focus on RUC and VAS

2.7 2

LBS Innovative GNSS-based mobile LBS Applications

2.3 2

Aviation Accelerating EGNOS adoption in aviation - focus on general aviation

1.9 2

SME/LBS Innovation

Open call for focussed innovative projects in mass-market GNSS applications

2.7 9

9.6 15

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… while the 2nd call the main theme is to develop downstream markets via public sector adoption …

Objectives of the 2nd call

• Stimulate EGNOS and CDDS use in EGNOS' priority segments (e.g., Aviation, Agriculture)

• Prepare Galileo introduction in segments with long lead times (e.g., Other Transport)

• Stimulate EU industry competitiveness in GNSS downstream markets by promoting innovation and supporting SMEs

Topics covered

• Road telematics with emphasis on safety

• Fleet management and logistics• High precision, including

agriculture• Accelerating EGNOS adoption

in aviation• EGNOS in rail and maritime• Social LBS• SAR service• Education and and innovation

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FP7 will also support priority actions to stimulate markets

• Promoting tools beyond R&D to accelerate market development (e.g. Contests for ideas)

• GNSS Knowledge hub for Application Developers and Users

• Galileo and EGNOS users’ needs monitoring• EGNOS Market Entry Actions, including EDAS Beta

testing• …