GROWTH OPPORTUNITIES IN A SMART, SUSTAINABLE AND INCLUSIVE ECONOMY

WHY FROST & SULLIVAN?

GLOBAL PERSPECTIVE 360-DEGREE

RESEARCH AND INDUSTRY

COVERAGE

UNIQUE ORGANIZATION

AROUND CONVERGENCE

POWERFUL TRANSFORMATIONAL

GROWTH STRATEGIES

DIGITAL SINGLE MARKET

ARTIFICIAL INTELLIGENCE

FUTURE OF FINTECH

FUTURE OF RETAIL

MOBILITY

ENERGY

SECURITY & DEFENCE

SMART CITIES

FUTURE OF MANUFACTURING

INTERNET ECONOMY

URBANISATION

INFRASTRUCTURE

SELECTION OF THEMES COVERED

60 PERCENT OF COMPANIES WILL NOT SEE A TEN YEAR ANNIVERSARY

Our clients understand that effective Mega Trend planning supports long term sustainable growth and drives a culture of innovation

This acts as a form of insurance policy against future disruptive events that could impact growth both positively and negatively

YOU ARE HAVING DIFFICULTY FINDING WHITE SPACE GROWTH IN EUROPE

YOUR INDUSTRY IS FUNDAMENTALLY CHANGING DUE TO CONVERGENCES IN EUROPE

NEW BUSINESS MODELS EVADE YOU BUT NOT OTHERS

YOU HAVE NO EUROPE SPECIFIC PLAN BEYOND 3 OR 5 YEARS

YOU HAVE A SUB OPTIMAL INNOVATION PIPELINE

YOU HAVE NO PLAN FOR THE CHANGING FACE OF EUROPE

Europe is bound by an enormous number of out of date regulations and systems. New environmental, economic, social and political developments have challenged these systems forcing Europe to rethink strategies for the future. With the new growth strategy ‘Europe 2020’ the European Union is re-enforcing its commitment to becoming a smart, sustainable and inclusive economy. This insight examines these developments along with other external factors through a Mega Trend lens and also highlights macro to micro implications on businesses and the society.

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TOP 10 FACTS ON FUTURE OF EUROPE

Key trends span across the financial services sector, social forces, data and technology shifts, global economic policies, and business models

EUROPE WILL ENTER THE COGNITIVE ERAEuropean cities such as Berlin and London could become the Mecca for AI hubs

EUROPE WILL SPARK THE FIRST FINTECH REVOLUTIONNearly 30% of total transactions will be cashless by 2020

BLOCKCHAINThis will become Europe’s ledger for Machine-to-Machine (M2M) transactions

DIGITAL SINGLE MARKETUp to $464.8 billion (¤415 billion) additional GDP will be availed

FUTURE CLASH OF DATA POLICIES: UNITED STATES VS. EUROPEStreamlined approach to date policies in Europe could disrupt data value

WORLD AGREES WITH EUROPEThe TTIP deal will result in a GDP increase of $240.8 billion (¤215 billion) in 2027

EUROPE TO CATALYSE INDUSTRY 4.0Europe will reindustrialise with smart factories and intelligent systems

B2B NEXT FRONTIER IN SHARING ECONOMY$18 billion sharing economy for grabs in peer-to-peer enterprise sharing

WOMEN STRATEGISE BUSINESSESOver 40% representation in European boards expected by 2025

SMART CITIESEurope will have the largest number of smart city project investments

1

2

3

4

5

6

7

8

9

10

KEY TRENDS

22% TECHNOLOGY

22% OFFICE SPACE

22% VEHICLES

35% ACCOUNTING

21% ADMINISTRATIVE

15% HR

PHYSICAL ASSETS

Heavy up-front CAPEX expenditures can be avoided and

turned into OPEX costs.

OPERATIONSOutsourced expertise can be

integrated as needed for faster go-to-market capabilities.

WORK SPACE

Lower cost and flexible workspaces provide scalability

and accessibility.

PERSONNEL RESOURCES

Employee numbers can be scaled up and down as needed to meet fluctuating demand.

EDUCATIONWomen gaining majority of higher

education awards

LEADERSHIPA third of decision making

roles and rising

EARNINGSRise in seniority driving

pay levels up

ENTREPRENEURSHIPFemale business owners growing

faster than men

AFFLUENCEWomen control 60% of

global wealth

POLITICAL REPRESENTATION

Greater respect and power

By 2018, Europe is expected to witness five-fold growth in installed base of smart meters. Europe will experience a growth rate of 20%–25% in the smart grid market in the next 3 years.

Smart technology is set to fuel double-digit growth in the European HEMS and BEMS markets by 2018. Smart Building Technology segment is expected to have the highest growth rate with spending reaching around $17.4 billion.

European Commission to invest ¤200m in Smart Cities in the next two years. According to ERDF regulation around $16 billion funds is to be invested annually towards development of smart city through 2014-2020.

New wireless network and automation technologies like Z-Wave, Insteon, and many more are expected to be the emerging technological trends in the smart cities market.

SMART CITIES, EUROPE, 2025

OSLO

COPENHAGEN

AMSTERDAM

LONDON

HELSINKI

STOCKHOLM

BERLIN

VIENNAPARIS

BARCELONA

ONE SINGLE DIGITAL EUROPENON-CASH TRANSACTIONS,

EUROPE (IN BILLIONS), 2012-2020SHARE OF NON-CASH

TRANSACTIONS, EUROPE

2010 2015 20200

20

40

60

80

100 1%

6%

40%

53%

4%-6%12%-20%<3%

<2%

40%-44%

38%-42%

45%-50%

43%-47%

Alternate Payment Methods

Cheques

Debit and Credit Cards

Credit transfers and direct debits

0

50

2012 2014 2016 2018 2020

100

150

200

87.6

100.3

115.9

135.2

157.7

76% 69% 62%

Share of cash transactions in retail

¤250 BILLION GROWTH ¤415 BILLION GROWTH 100,000 JOBS

Digital Single Market for Goods and Services

Digital Market Infrastructure

Digital Single Economy and Society

Reducing VAT Cross- border Logistics

Single law for economic trading across EU

Strong European data protection rulesRolling out fast broadband for all

Digital Cloud for allDigital by default

Extensive use of Big Data analytics

Tax planning by corporates will be minimised

Incentivise investment in high-speed broadband networks

Faster online boarding for payments and transactions with

universal IDs

CAGR 7.6%

STATUS OF TTIP

European negotiators are aiming to finalize a trade pact with the United States by end of 2016.

Launched in November 2011, by the end of October 2015, negotiators from the EU and US concluded the 11th round of discussions.

INDUSTRIES MOST LIKELY TO BENEFIT BY INCREASE

IN EXPORTS

Metal Products +12%

Processed Foods +9%

Chemicals +9%

Other Manufactured Goods

+6%

Other Transport Equipment

+6%

Automobile +40%

ECONOMIC IMPACT OF TRANSATLANTIC TRADE & INVESTMENT PARTNERSHIP

The agreement will result in an increase of

$112 billion (¤100 billion). OECD countries will

gain $40.32 billion (¤36 billion) collectively,

while developing nation partners will gain

approximately $2.68 billion (¤2.4 billion).

IMPACT ON THE REST OF THE WORLD

EU exports to the United States will increase

by 28%, valued at $209.4 billion (¤187 billion).

EU imports from the United States will also

increase by $178.08 billion (¤159 billion).

TRADE

The TTIP agreement will bring significant

economic gains for the EU $134.4 billion (¤120

billion) and the United States $106.4 billion

(¤95 billion).

GROSS DOMESTIC PRODUCT

UPCOMING ANALYSIS TO BE INCLUDED IN THE SUBSCRIPTION IN 2016

UNBUNDLING OF SUPPLY CHAIN

FINTECH REVOLUTION

WOMEN TO DRIVE THE BUSINESS WORLD

FUTURE OF EUROPE

FUTURE OF WORK

GROWTH STRATEGY

DIALOG

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GROWTH PARTNERSHIP SERVICELIST OF STRATEGIC INSIGHTS INCLUDED IN THE SUBSCRIPTION

GLOBAL MARKET MOVERS

REGIONAL TRENDS EVALUATIONS

INDUSTRY TRANSFORMATIONS

TOPIC

Future of the Office: Work structures of 2025—Mega Trends Shaping the Work Spaces Globally

Top 16 for 2016: Top Predictions in Markets, Innovations, and Trends

Future Work Technology: Technologies Revolutionising Work Models

Women as a Customer: B2B Strategies in Selling to Women Decision Makers

Smart City Survey: Analysing Consumer Expectations and Awareness

Smart City Funding Models: Innovative Funding Mechanisms Delivering Smart Cities

Marketplace-as-a-service: Online B2B Industry Hubs and Aftermarket Marketplaces:

Future of Governance: New Open and Collaborative Models in Governance

TOPIC

Future of Europe: The Impact of Mega Trends on Europe’s Complex Environment

Mega Trends in Russia: Russia's growth story post ruble-oil crisis

The Future of the United StatesThe Social and Technological Forces Reshaping the Country

Mega Trends in LATAM: Future Outlook for the “Next-Generation” Continent

Smart Cities Leader board: Benchmarking 50 Global Smart City Projects

Future of Japan: Relevance of Mega Trends in a Sluggish Economy

Top Trade Policies Under Review: Shifts in Geopolitics and Economic Power

TOPIC

Future of Artificial Intelligence—Dispelling Dystopian Myths

Future of Logistics: Unbundling of the Supply Chain

Future of Financial Services: Growth in FinTech and Alternative Finance

Future of Insurance: Future of Prescriptive Insurance and Pay as you Go Model

Future of Agriculture: Future Disruptions to Traditional Farming (Drones and Driverless Tractors)

Artificial Intelligence in Healthcare: Beyond eHealth

Future of Manufacturing: The Future Factory

Internet of Cars: The Cars with Sixth Sense

CONTACT US

CHIARA CARELLA Head of Corporate Communications and

Marketing – Europe, Israel, Africa E: chiara.carella@frost.com

T: 44 207 343 8314

ARCHANA VIDYASEKAR Team Lead – Visionary Innovation

E: archanav@frost.com T: 44 207 915 7871

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact us to start a discussion.

enquiries@frost.com

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