Global Smart City Market A $1.5 Trillion Growth

Opportunity in 2020

2

Smart Cities

Market

3 3

Smart Cities Definition and Segmentation A truly smart city will have active projects in 5 of the 7 core smart city segments

Smart cities are cities built on

“smart” and “intelligent”

solutions and technology that

will lead to the adoption the

following smart parameters

Smart Cities: Smart Heptagon to Define Smart City

4G

Smart

Energy

Smart Building

Smart

Security

Smart

Healthcare

Smart

Transportation

Smart

Infrastructure

Smart

Governance

4 4

Key Parameters That Will Define a Smart City in 2020

Source: Frost & Sullivan analysis.

Smart Energy: Digital Management

of Energy

Smart Buildings: Automated

Intelligent Buildings Smart Mobility: Intelligent Mobility

Smart Technology: Seamless

Connectivity

Smart Infrastructure & Security:

Digital Management

Smart Healthcare: Intelligent

Healthcare Technology

Smart Governance: Government-on-

the-Go Smart Citizen: Civic Digital Natives

• Smart Grids

• Smart Meters

• Intelligent Energy

Storage

• Renewable Energy

Integration

• Smart Homes &

Buildings

• Intelligent Lighting

• Low-emission Mobility

• Integrated Mobility

Solutions

• Multimodal Transport

• ITS

• Broadband penetra-

tion rate of over 80%

• Location Based Services,

Augmented Reality, GPS

enabled devices/ phones

• Sensor Networks

• Digital Water and

Waste Management

• Command & Control

Response

• Use of ehealth and

mhealth systems

• Intelligent and

connected medical

devices

• e-Government

• e-Education

• Disaster Management

Solutions

• Use of Green

Mobility Options

• Smart Lifestyle

Choices

• Energy conscious

5 5

Smart cities To Create Huge Business Opportunities With

A Market Value Of $1.5 Trillion In 2020

Source: Frost & Sullivan analysis.

Smart City Market by Segments,1 Global, 2020

20.93 %

14.11%

16.65% 13.75%

9.09%

15.26%

10.21%

Smart

Infrastructure

CAGR: 8.9%

(2012-2020)

1

2

4

5

6

Smart

Governance

and Smart

Education

CAGR: 12.4%

(2012-2020)

Smart Energy

CAGR: 19.6%

(2012-2020)

Smart

Transportation

CAGR: 14.8%

(2012-2020)

Smart Healthcare

CAGR: 6.9%

(2012-2020)

Smart Building

CAGR: 8.8%

(2012-2020)

7

Smart City

Market

Smart Security

CAGR: 14%

(2012-2020)

3

6 6

Smart Cities

Development Types

7 7

Global Smart Cities Over 26 Global Cities to be SMART Cities in 2025 - More than 50% of Smart cities of 2025 will be from Europe

and North America

Source: Forbes Smart City List, Innovation City Index, Specific Smart Project Websites for Each City, Frost & Sullivan

Toronto

San Francisco

Vancouver

Paris

New York

London Berlin

Barcelona

Amsterdam

Seattle

Tokyo

Singapore

Calgary

Chicago Los Angeles

Vienna

Copenhagen

Oslo

Seoul

Beijing

Tianjin Wuhan

Helsinki

Sydney

Shenzhen

Stockholm

Selected Smart Cities in 2025

8 8

Types of Smart City Projects

New Smart Solution

Redevelopment New Infrastructure

Retrofits Greenfield

Brownfield

Smart Hubs

Smart hubs are theme-

based projects such as

electronics cities, heritage

cities which will have

smart elements to them

Existing

cities which

are made

“smart” by

technological

interventions

New large cities built from

scratch. Some

redevelopment activities

can be regarded as

greenfield

Types of Smart Intervention Types of Cities

1

2

3

4

Larger city-wide systems

within single solution like

Intelligent Transport

Solutions

1

Reconstruction of

already built-up area

that is not amenable

for smart retrofits

2

Gaps in existing

infrastructure will be

addressed through

smart solutions

3

New infrastructure

deployed

4

9 9

City Stakeholders

Analysis , Business

Models

10 10

Smart City Stakeholder Dynamics Most successful smart city programs in 2016 are governed by joint ventures, with the government playing the

leadership role.

Municipal Government Management

Dir

ec

t

Sta

ke

ho

lde

rs—

Cit

y

as

a C

us

tom

er

Ind

ire

ct

Sta

ke

ho

lde

rs—

En

ab

lin

g C

ity a

s a

Cu

sto

me

r

Role in Smart City Value Proposition

Sm

art

Cit

y

Sta

ke

ho

lde

r

An

aly

sis

Municipal Government Service Delivery

Municipal Infrastructure and Services

Citizens

Enterprises in the City

Technology and Application Providers

Systems Integrators

Infrastructure Services Providers

and Operators

Support to plan and execute a

governance system

Develop and administer

advanced, targeted services

Deliver fundamental service

Live in a safe community with

sufficient access to all services

Location in an environment that

supports and promotes prosperity

Re digital foundation of a

smart city

Construct the digital infrastructure

of the smart city

Interface with and often operate

the intelligent infrastructure

Use intelligence to make

better tactical decisions

Use intelligence and insight to

create plans & support decisions

Use intelligence to build and

operate municipal infrastructure

Beneficial returns on taxes,

reliable and useful services

world-class services with

reliable infrastructures

generation of intelligence that

makes a smart city ‘smart’

logical and information

framework for intelligence

Create and deliver advanced

services to direct stakeholders

11 11

Smart Cities Business Models Majority of smart city projects are developed under Build Operate Manage (BOM) business model

Source: Frost & Sullivan analysis.

Build

Own

Operate

(BOO)

Build

Operate

Transfer

(BOT)

Build

Operate

Manage

(BOM)

Open

Business

Model

(OBM)

01 The smart city planner

independently builds the city

infrastructure and delivers smart

city services. The operation and

maintenance of the services is

fully under the planner’s control.

The smart city planner appoints a

trusted partner to build the city

infrastructure and provide smart

city services for a particular area

within a time period. After

completion the operation is

handover to the smart city planner.

Eg. Ausgrid

The smart city planner appoints a

trusted partner to develop the city

infrastructure and services. The

partner operates and manages

the smart city services. The city

planner has no role further. Most

of the public-private partnerships

are build on this model. Eg.

Barcelona

The city planner allows any

qualified company or business

organisation to build city

infrastructure and provide city

services. The city planner

however will impose some

regulatory obligations. Eg. Songdo

in Seoul

02

04 03

12 12

Convergence of Technology Will Lead to Convergence of

Competition

Source: Frost & Sullivan

SAP ST

Electronics

Oracle

Google Microsoft

Alcatel-

Lucent IBM Cisco Senergy

Eaton

ALSTOM Grid

Siemens AG

General

Electric ABB

Rockwell

Automation

Johnson Controls

Schneider

Electric

Verizon

O2

Deutsche Telekom

Ericsson

AT&T

Serco

Symantec

Tyco

Securitas Honey-

well

IT Participants

• IP networks

• Digital technology

• Analysis software

Energy and Infrastructure

Participants

• T&D technology

• Power electronics

• Renewable energy

• Integrated distribution management

• Substation automation

• AMI-enabled metering

Automation and Building

Control Participants

• Building automation

• Demand-side management

• Device connectivity

• Monitoring and sensing

• Smart grid integration

Telecom Participants

• Broadband and Internet

service providers

• Phone lines

• Mobile communications

• Networked IT services

Security

• Firewalls, Internet protocol

security

• Physical implementation of

systems and monitoring

• Managed and monitoring services

• Cloud-based services

• Identity management, smart

cards

• Technology

integration

• Network security

13 13

Summary

14 14

So what will the future of Smart Cities market will

look in 2025

Over 26 cities to be Smart cities, out of which 50% share will be from

Europe and North American cities by 2025

The smart city market will be valued at $1.50 trillion by 2020

Companies in the smart city space will not only partner and converge to

offer “smart” capabilities– but would also start converging with different

players in the eco-system

Location Based Services, Trust and Security Platforms, Multimodal

User Interfaces will be some of the more obvious technologies that will be

deployed in smart city markets in the future.

E- Services to Citizens – such as e-payments, e-exchange, e-sharing

etc. will empower citizens with real-time access to personal data and

related services.

Companies will look at “City as a Customer” strategy and will revamp

their products and services around this value proposition.

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02

03

04

05

06

15 15 Discussion

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Contact

Iain Jawad Director Strategic Partnerships

+44 20 7343 8311 Mob: +44 7961 769545

iain.jawad@frost.com

@JawadIain

www.frost.com

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