EU Economic Diplomacy Meeting14 September 2017, Brussels - Belgium

By Gard UelandGalileo Services Chairman

EU Economic Diplomacy:Views from the European GNSS Downstream Industry

Presentation of Galileo Services

Non-profit making association focusing on the downstream side of the European GNSS programmes

Aims at developing, promoting and maximising the potential of the GNSS applications market

Consists of the key GNSS Downstream Industry players from Europe

Members’ Profiles:

Active across the whole value chain

Cover all the application sectors (aviation, maritime, road, rail, LBS, surveying…)

Galileo Services Missions:

Voice the industry concerns & expectations to relevant institutions

Share market experience and knowledge of user needs

Support the implementation of the European GNSS Programmes

Galileo Services Association

Contact : Aureline Borel, Permanent Representative – aureline.borel@galileo-services.orgFor further information : www.galileo-services.org

Galileo Services & OREGIN together represent a community of almost

180 organisationsranging from SMEs to large companies and academia

Galileo Services Current Members

Network (160 members – 20 countries)

Space Economic Diplomacy &

Space Business Internationalisation

Rationale – GNSS Market & Industry Trends

GNSS applications and services market

Global market in 2025: €300 billion

Annual growth rate by 2023: +7%

European market share: < 20%

Usual European market share in other high-tech sectors: 33%

Markets in which the European industry must position itself include:

Most promising markets in terms of growth potential

Strategic markets

Strong reputation for quality and reliability of European equipment and industries

Strong interest from the European industry to provide solutions for European GNSS applications globally

Notably, GS and Oregin Members already have or are developing technology for a broad range of applications, in particular building on Galileo differentiators

7

Rationale – European Industry vis-à-vis Worldwide Competitors

European GNSS downstream industry suffers from a significant competitive disadvantage vis-à-vis worldwide competitors

Dedicated national strategies in the US, Russia, China, and Japan to support competitiveness of their industry & to enhance GNSS market take-up, including:

Massive funding from R&D to manufacturing capabilities

Regulation

Massive Public Procurement

Need to restore a level playing field

Galileo Services Proposed Way Forward

“A Space Strategy for Europe”: Orientations detailed about the ambition to promote the internationalisation of the European industry and to establish a level playing field through EU trade policy instruments and economic diplomacy

Very much welcomed by Galileo Services

Yet it remains pivotal to remind that this effort shall be accompanied by measures aiming at supporting the development of a competitive GNSS downstream industry in Europe

Support to the Development of a CompetitiveEuropean GNSS Downstream Industry

Support the development of a competitive GNSS downstream industry in Europe

Building on competitive advantages offered by the European GNSS

By considering several support actions/instruments

R&D funding, public procurement (e.g. PCP/PPI), education, support to the development of manufacturing capabilities, regulations, awareness, etc.

Be supported by funding at a strategic level to grow Europe’s share

Recommended EU investment in the development of value-added GNSS applications and services :

€2 billion 2016 – 2020 – Initial Services Exploitation Phase

€2-3 billion for 2021-2027 - Next MFF

of the global GNSS downstream market by 2025

The objective is for Europe to win 33%

+ 400 000 jobs

Economic Diplomacy

Trade agreements

International agreements

Market opportunities

Industry skills

Regulations

R&D projects cooperation

Promotion of existing and future European champions

Conclusion