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Industries Ripe for Smart Transformation in Europe


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Frost & Sullivan recently concluded a top-down analysis of ICT spending in 14 industries across 26 European countries. This webinar will share some of the study’s insights, picking out ICT opportunities in specific industries and highlighting the likely evolution in ICT spending patterns as industries transition toward smart transformation.

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Industries Ripe for Smart Transformation in Europe

  1. 1. Industries Ripe for Smart Transformation in Europe Tracking ICT Trends through Key Industries, Countries and ICT Elements Yiru Zhong, Industry Manager M2M & Connected Industries 13th November 2013 © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. Today’s Presenter Yiru Zhong, Analyst, Frost & Sullivan Yiru is an analyst for the ICT industry, with expertise in Machine-to-Machine and Connected Industries @frostsullivan 2
  3. 3. Discussion Agenda • Introduction to Connected Industries Market Forecast • Identify key ICT opportunities from 3 lenses • • • • ICT components Industries Countries Deep dive into ICT spending patterns in industries ready for smart transformation in the next 5 years • • • IT & Communications Energy & Utilities Government 3
  4. 4. Connected Industry Research Programme Evaluating Smart Transformation Opportunities Across 14 Industry Sectors Core ICT Spending Model Overview – Key Questions Answered Which countries have the highest ICT spending, and which have the highest growth potential? What is the additional ICT spending needed above a "business-as-usual" ICT spending forecast, as industries invest in intelligence for a smart environment? Which industries already have a proportion of ICT spending? Which are most ready for smart transformation through automation/intelligence? 4
  5. 5. Connected Industry Research Programme Core ICT Spending Model Overview Research Methodology 1 2 Aligned datasets from a variety of sources including Frost & Sullivan's Decision Support Databases and external organisations such as Eurostat to build a historical picture of ICT spend Historical and macro view of each country's ICT spending developed by ICT components and industries from 2003 to 2012. 3 2013–2017 forecast is based on a bottom up perspective of ICT components spending for each country's key industries (at least of the top 5 industries) 4 Proxies for countries are developed based on their economic structure, historical ICT spending patterns by ICT components, and Frost & Sullivan's opinion on the degree of ICT intensity. Research Scope 26 Countries: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom 14 Industries: Information & Communications, Construction, Education, Energy & Utilities, Financial Services, Government, Healthcare, Hospitality/ Hotels/ Leisure, Manufacturing, Natural Resources, Professional Services, Retail, Transportation, Wholesale & Distribution 4 ICT Components: Communications, IT Hardware, IT Services, IT Software 5
  6. 6. ICT Spending in Europe is expected to grow 4.0% on a 2012-2017 CAGR basis 2012 – 2017 CAGR 3.9% Source: Frost & Sullivan 6
  7. 7. ICT Opportunities from 3 lenses
  8. 8. The ICT industry is poised for a transformational phase as it becomes an enabler of the Connected Society ^ bubble size reflects 2017 ICT spending forecast Source: Frost & Sullivan 8
  9. 9. Expected ICT Spending by Verticals in 2017 Outside of ICT, Financial Services and Energy & Utilities Drive Spend ^ Bubbles reflect 2017 values Excludes ICT sector in chart to avoid distortion to other industries’ growth 9 Source: Frost & Sullivan 9
  10. 10. ICT Spending from a Country Perspective Source: Frost & Sullivan 10
  11. 11. Putting it all together (1) Russia & Communications spending stand out Source: Frost & Sullivan 11
  12. 12. Putting it all together (2) Industries with historically strong ICT adoption Source: Frost & Sullivan 12
  13. 13. Deep-dive into ICT spending patterns in key industries 13
  14. 14. Nexus of Cloud Computing, Big Data, Mobility and the Internet of Things 2 Cloud allowing access to content on any device in any location. Big data enables value to be extracted out of exponential increase in data. Ubiquitous Ubiquitous Wireless BB Wireless BB WiFi, 3G & LTE becoming standard connectivity modes. Industry Verticals 1 Rise of Cloud Rise of Cloud and Big Data and Big Data 3 4 Internet of Internet of Things Things Rise of Apps Rise of Apps Cloud and mobility driving the emergence of apps which can be used on any IP enabled device. IPv6 driving proliferation of IT enabled sensors/devices across industry-specific activities. 14
  15. 15. The biggest factor driving ICT spending in the sector is in communications networks Source: Frost & Sullivan 15
  16. 16. The Energy & Utilities industry has strong ICT requirements but adoption has also been cautious High Impact IT/OT Convergence Big Data & Analytics Distributed Intelligence Projected Impact on the Energy Vertical by 2020 Low Impact High Growth Impact Data Security Medium Growth Impact Cloud Computing Renewable Energy Distributed Generation M2M/IoT Automation of the Grid Next Generation Networks Expansion of AMI Enterprise Mobility Cross domain Energy Efficiency interoperability Prosumers Expansion into Services Demand Response Electric Vehicles Low Growth Impact Open Source Smart buildings -> Smart Cities Energy Storage Virtual Power Plants High Low Certainty by 2020 Source: Frost & Sullivan analysis 16
  17. 17. The Energy & Utilities industry is expected to have a high demand for new communications services and networks Source: Frost & Sullivan 17
  18. 18. Moving Towards Mobile Government Back-office applications Front-office applications Mobile Technologies for More Efficient and Cost-Effective Public Administration m-Government to Citizen m-Government to Citizen (mG2C) (mG2C) m-Government to Business m-Government to Business (mG2B) (mG2B) Interactions and engagements between Interactions and engagements between government and citizens (healthcare, government and citizens (healthcare, transport, education, security, etc) transport, education, security, etc) Interactions and engagements between Interactions and engagements between government, companies and other government, companies and other organizations in society organizations in society m-Government to Employees m-Government to m-Government to Employees m-Government to (mG2E) Government (mG2G) (mG2E) Government (mG2G) Interactions between government and Interactions between government and its own employees its own employees Individual Interactions between government Interactions between government departments and agencies departments and agencies Organisation Source: Frost & Sullivan 18 18
  19. 19. The Government sector is expected to migrate to more IT services based demand Source: Frost & Sullivan 19
  20. 20. Summary 20 20
  21. 21. Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: 1-877-GOFROST (463-7678) Email: 21
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  24. 24. For Additional Information Adrian Drozd Research Director ICT Europe + 44 1865 398 699 Adriana Black Account Manager ICT Europe +44 207 343 8324 Yiru Zhong Industry Manager M2M & ICT in Smart Energy +44 207 915 7822 Joanna Lewandowska Corporate Communications ICT +48 22 390 41 46 24