BUSINESS & TECHNOLOGY INNOVATION REPORT

Week 39

2014

Prepared by

Ferhat Ünlükal

9/28/2014

BUSINESS & TECHNOLOGY INNOVATION REPORTWeek 39

Headlines

Consumer Electronics (CE)

Samsung Electronics will widely incorporate its Tizen OS in its smart home-use electronics.

Sharp said it would grant use of its TV brand in Europe to Universal Media Corp (UMC) Slovakia while a sales unit of Vestel would receive use of its home appliances brand.

NVR estimates that total electronics assembly value was $1.3 trillion in 2013 and will grow to approximately $1.8 trillion in 2018.s

ICT Industry

Samsung is working with PayPal on a simple mobile payment function.

Ericsson announced it has agreed to acquire a majority stake in Apcera.

Ayla Networks announced that is has obtained a license to serve as an Internet Content Provider (ICP) in China.

Wireless M2M market to account for $196 Billion in revenue by the end of 2020.

Taiwan's information and communication technology sector is expected to reach the scale of NT$2.8 trillion (US$92.6 billion).

Fewer than 1 million smart watches will have sold by the end of 2014, but this is expected to leap to 13.6 million sales in 2015.

The global Ed Tech market is estimated to grow from $31.31 Billion to $59.90 Billion in 2018.The Global HD Voice Market to grow from $815.5 Million in 2014 to $2,296.6 Million in 2019.

The passenger car security systems market in terms of value is projected to grow $11.5 Billion by 2019.

Worldwide revenue from smart waste technologies is expected to total more than $42 billion from 2014-2023.

Flat Panel Industry

Taiwan panel makers will continue to focus on production of a-Si panels.

The global proportion of small- to medium-size TFT LCD production capacity from China is expected to increase to 35% as of 2017.

Semiconductor Industry

Broadcom has announced that they are sampling quantities of their new Tomahawk chip.

Intel has invested $1.5 billion in Tsinghua Unigroup.

LG Group chairman Koo Bon-moo was reportedly in talks with Tata Motors.

WSN markets will reach $102 billion up from $18.2 billion in 2012.

Service Industry

Vodafone has partnered with Dresden University of Technology to research and develop 5G technology.

Telefonica SA agreed to buy Vivendi SA’s Brazilian broadband unit GVT.

Healthcare and Hospitality Industry

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Digital healthcare, is expected to double in the United States over the next three years, growing from $3.5 billion in 2014 to $6.5 billion by the end of 2017.

Retail and Payment Industry

VeriFone announced that its UX Solutions series of unattended payment devices has achieved an industry-first certification.

VeriFone and Vantiv, Inc. won The BankerTechnology Project of the Year 2014 award in the Risk Management category.

Ingenico Group announces that Elavon will rely on its EMV-ready payment solutions to power two key Elavon initiatives.

Visa announced that it will strengthen its technology resources by creating 2,000 full-time technologist positions.

Consumer Electronics (CE)

Samsung

Tizen OS in home use electronics

Samsung Electronics will widely incorporate its Tizen OS in its smart home-use electronics and LCD TVs in 2015, in an attempt to boost the penetration of Tizen using its leading global market status, and to set up a platform for developing the Internet of Things, according to Taiwan-based supply chain makers.

The Korea-based vendor has already integrated Tizen into its wearable products.

At CES 2015, which will be hosted from January 6-9, Samsung CEO Boo-Keun Yoon is set to provide a keynote about the development of Internet of Things and connections between devices, and will also discuss its smart home electronics and applications, showing the company's aggressiveness about the industry in 2015.

Since the mobile device industry has been dominated by iOS and Android, Samsung's Tizen was not able to achieve much results and therefore the vendor has turned to push the platform into the IoT industry.

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Samsung’s stock performance

Sharp

Using Sharp brand by Vestel

Japan's Sharp Corp <6753.T> said that it would seek 300 job cuts in Europe and pursue cooperative ties in household electronics with two companies in the region in a renewed round of restructuring of its European operations.

The electronics maker said it would grant use of its TV brand in Europe to Universal Media Corp (UMC) Slovakia while a sales unit of Turkish electronics firm Vestel Elektronik Sanayi ve Ticaret AS would receive use of its home appliances brand.

Sharp also said it was in talks with UMC about transferring its Polish TV factory to the Slovakia firm.

Sharp said it would book a 6.4 billion yen ($58.7 million) special loss related to the moves in the second quarter. It expects no change to its full-year profit forecasts.

Sharp has been cutting costs and exiting unprofitable operations since it suffered a massive 545 billion yen net loss in the year ended March 2013. In July, Sharp pulled out of solar panel production in Europe. 

Sharp’s stock performance

CE Market

Electronics Assesmbly Market

NVR estimates that total electronics assembly value was $1.3 trillion in 2013 and will grow to approximately $1.8 trillion in 2018 - a 5.9 percent compounded annual growth rate. Fueled by the demand for EMS services, NVR believes that the EMS industry will grow from $440 billion in 2013 to $639 billion in 2018 - approximately at a 7.7 percent CAGR.

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ICT Industry

Samsung

Cooperation with Paypal

Samsung is planning yet another smartwatch to sit alongside the six it has already launched over the past 12 months. However, while its past efforts have been focused on fitness or replacing reliance on smartphones, this one wants to be a replacement for consumers' wallets.

According to Business Korea, Samsung is working with PayPal on a simple mobile payment function that will be integrated into its next smartwatch.

A high-ranking, though unnamed Samsung official told the publication: "We are currently developing the smartwatch equipped with fingerprint identification technology and relevant solutions through cooperation with PayPal, the world's most renowned financial transaction service company, as well as Synaptics, a global

company specialized in biometric verification."

Ericsson

Acquisition of Apcera

Ericsson (ERIC) announced it has agreed to acquire a majority stake in Apcera, a U.S.-based enterprise services company and creator of the next-generation platform as-a-service (PaaS) called Continuum(TM) which works across cloud, on premise and hybrid environments. In addition, Ericsson commits to significant funding toward development of next-generation technology as well as sales channel and ecosystem creation. 

Ericsson’s stock performance

Ayla Networks

ICP in China for IoT

Ayla Networks, a leading provider of Agile Internet of Things (IoT) platforms, announced that is has obtained a license to serve as an Internet Content Provider (ICP) in the People's Republic of China, a significant milestone that will permit Ayla to collaborate with manufacturers, web sites, social networks and others to build a nationwide framework for IoT in one of the fastest growing markets in the world.

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ICT Market

M2M Market

The Wireless M2M & IoT Bible: 2014 - 2020 - Opportunities, Challenges, Strategies, Industry Verticals and Forecasts research forecasts the wireless M2M market to account for $196 Billion in revenue by the end of 2020, following a CAGR of 21% during the six year period between 2014 and 2020. This research also indicates that the installed base of LTE powered wireless M2M connections will reach nearly 210 Million by the end of 2020. Eyeing this lucrative opportunity, vendors and service providers across the highly fragmented M2M value chain have become increasing innovative in their strategies and technology offerings which have given rise to a number of submarkets such as M2M network security, Connected Device Platforms (CDP) and M2M application platforms.

Taiwan ICT Market

According to the MIC, revenues across Taiwan's information and communication technology sector, including exports of modules is expected to reach the scale of NT$2.8 trillion (US$92.6 billion), gaining 9.9 per cent year-on-year and exceed the anticipated global average growth rate of 7.9 per cent.

In addition, following the launching of the 4G mobile broadband network in Taiwan, expected sales of smartphones is expected to surge by 12.7 per cent and reach around 292 million units in 2015. 

Smart Watches Market

Fewer than 1 million smart watches will have sold by the end

of 2014, but this is expected to leap to 13.6 million sales in 2015, as Apple drives the market. Device manufacturers cannot afford to miss the wearables opportunity: 758 million smart wearable devices will be sold worldwide in the next 7 years, and device revenue will grow at a CAGR of 50% to reach USD22.9 billion in 2020. However, the market is still in its infancy and it will take until 2020 for wearable devices to reach the level of yearly unit sales that tablets achieved in 2013.

The Internet of Nano Things

The Internet of Nano Things (IoNT) is expected to grow from $4.26 billion in 2016 to $9.69 billion by 2020, at an estimated Compound Annual Growth Rate (CAGR) of 22.81% from 2016 to 2020.

Global Education Technology Market

The global Ed Tech market is estimated to grow from $31.31 Billion to $59.90 Billion in 2018. This represents a Compound Annual Growth rate (CAGR) of 13.9%. In the current scenario, educational cloud is expected to be the largest adaptor for technologies used in the education sector. In terms of regions, North America is poised to be the biggest market for Ed Tech. However, over the next five years, Asia-Pacific (APAC) is set to experience increased market traction, to become the biggest Ed Tech market globally.

Global HD Voice Market

MarketsandMarkets forecasts the Global HD Voice Market to grow from $815.5 Million in 2014 to $2,296.6 Million in 2019, at a Compound Annual Growth Rate (CAGR) of 23.0% during the

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forecast period. North America is expected to be the largest market in terms of market size, while Europe and Asia-Pacific are expected to experience an increase in market traction during the forecasted period.

Passenger Car Security Systems

The passenger car security systems market in terms of value is projected to grow $11.5 Billion by 2019, at steady CAGR of 3.89% between 2014 and 2019.

Smart Waste Market

According to a recent report from Navigant Research, cumulative worldwide revenue from smart waste technologies is expected to total more than $42 billion from 2014-2023.

Flat Panel Industry

Flat Panel Market

Focused on A-Si Panel production

Taiwan panel makers will continue to focus on production of a-Si panels for use in handsets to compete in the high-end smartphone panel segment, according to Digitimes Research.

Small to Medium size LCD in China

The global proportion of small- to medium-size TFT LCD production capacity from China is expected to increase to 35% as of 2017, up from 15.5% in 2011, according to Digitimes Research. In terms of large-size TFT LCD applications, China's global share will increase

from 5.3% in 2011 to 25.5% in 2017.

The statistics include production from both China-based makers and international makers who have facilities in China.

China-based makers will be responsible for 33% and 17% of the global shipments of small- to medium-size and large-size LCD panels, respectively, in 2017. Their shipments to the two segments are expected to reach 130 million and 970 million units in 2017, up 51% and 54% respectively compared to 2013.

BOE will hold the largest flat panel display spot in China from 2014-2017, holding 38% of all revenues produced from panel makers in China in 2017. That percentage is expected to exceed 40% in 2018 following the company's developments of high-end technologies, including LTPS TFT LCD, AMOLED and Oxide TFT LCD.

Digitimes Research also believes China makers will hold a 17.4% revenue proportion in the global TFT LCD industry in 2017, up from 11.4% in 2013.

Semiconductor Industry

Broadcom

New Tomahawk Chip

Broadcom has announced that they are sampling quantities of their new Tomahawk chip in the just released StrataXGS Tomahawk series of switches.

The new Broadcom BCM56960 chip, with over 7 billion transistors, can support 32 ports of 100GE, 64 ports of 40GE/50GE or 128 ports of 25GE on a single chip.

With this 3.2 Tbits of bandwidth the new ASIC offers more than 2.5 times the bandwidth of the two-

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year-old Trident generation of chips from Broadcom.

Broadcom’s stock performance

Intel

Investment in Tsinghua Unigroup

Intel has invested $1.5 billion in Tsinghua Unigroup, a state-owned holding company that operates two Chinese chip manufacturers, as part of a plan to accelerate the adoption of Intel’s own chips in the Chinese market.

The world’s biggest chip maker said it would take a 20 percent stake of Tsinghua Unigroup, the owner of Spreadtrum Communications and RDA Microelectronics. The deal is subject to regulatory approvals and other closing conditions.

Intel said the goal of the agreements is to expand the adoption of Intel-based mobile devices in China. The Chinese companies will jointly develop mobile phone technologies based on Intel architecture. Intel has set a goal of selling 40 million Intel-based tablet and smartphone chips in 2014, and it no doubt plans to increase that in 2015. This deal is one way that the company is going to accomplish that. In other words, it is buying market share.

Intel’s stock performance

LG

Cooperation with Tata Group

LG Group chairman Koo Bon-moo was reportedly in talks with Tata Motors chairman Cyrus Pallonji Mistry on supplying vehicle components, industry sources said.

According to LG, Koo and Mistry met in late August, when the latter visited South Korea with top executives in the vehicle business. LG vice chairman Koo Bon-joon and Lee Woo-jong, head of the vehicle components department, accompanied chairman Koo at the meeting after giving the Tata delegation a tour around the LG campus in Incheon. 

“The meeting was arranged on Tata’s request. Our chairman is believed to have introduced the group’s overall vehicle component business in Korea and India,” an LG spokesman told The Korea Herald. 

Car components have become a next-generation business for LG since June 2013, when the business group merged all relative units into the VC division. 

But what draws more attention from market experts is LG and Tata’s possible collaboration on the electric vehicle production. LG is regarded as one of the global powerhouse in EV batteries, camera modules and motors while

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Tata is known to be devoted to mid-to-small EV development as a means to edge out its market competitor and India’s largest carmaker Mahindra. 

LG’s stock performance

Semiconductor Market

WSN Market

In 2018, global annual revenues-- including equipment and services-- for WSN markets will reach $102 billion up from $18.2 billion in 2012. New WSN markets—where wiring is not feasible— will make up the majority of the revenues at this time. The smart home will make up over half of the shipments in 2018 but commercial, industrial and municipal WSNs continue to accelerate and are projected to grow by a 38% compound annual growth rate (CAGR) over the projection period.

Service Industry

Vodafone

Partnered with Dresden for 5G Technology

Telecoms giant Vodafone has partnered with Dresden University of Technology to research and develop 5G technology. The two will work together to explore the capabilities of 5G and establish technical guidelines for its development. 

The FTSE 100 company said the partnership was part of its global programme focused on researching the next generation of wireless technologies with universities, technology companies and industry groups around the world. 

Vodafone’s stock performance

Telefonica

Acquisition of Vivendi’s Brazilian Broadband

Telefonica SA agreed to buy Vivendi SA’s Brazilian broadband unit GVT for about €7bn (approximately £5.5bn) to increase its challenge to competitors including billionaire Carlos Slim’s America Movil SAB.

 Telefonica’s stock performance

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Healthcare & Hospitality Industry

Healthcare & Hospitality Market

Digital Healthcare Market

Driven by evolving consumer expectations, start-up funding for digital healthcare, such as telehealth or wearable technology, is expected to double in the United States over the next three years, growing from $3.5 billion in 2014 to $6.5 billion by the end of 2017, according to new researchby Accenture.

Retail and Payment Industry

Verifone

Unattended Payment Terminal

VeriFone Systems, Inc. (PAY), announced that its UX Solutions series of unattended payment devices has achieved an industry-first certification to Canada’s first and only contactless debit

payment solution, the Interac Flash 1.5 contactless payment specifications. MSC, a VeriFone distribution partner that provides solutions for the entire unattended market in Canada and the U.S., has selected devices within the UX series to support its next-generation EMV capable, PCI compliant unattended payments solution which will include support for Interac Flash transactions.

Verifone’s stock performance

The Banker Technology Project Award

VeriFone Systems, Inc. (PAY) and Vantiv, Inc. (VNTV)—a leading provider of payment processing services and related technology solutions for merchants and financial institutions of all sizes—won The BankerTechnology Project of the Year 2014 award in the Risk Management category for their industry-leading, multi-layered approach to reducing cardholder data security risk using end-to-end encryption.

Ingenico

Cooperation with Elavon

Ingenico Group (Euronext:FR0000125346-ING), the global leader in seamless payment, announces that Elavon will rely on its EMV-ready payment

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solutions to power two key Elavon initiatives in the United States.

Elavon has worked with Ingenico Group to build EMV-enabled payment solutions in Europe, as well as in Canada and Latin America. Based on its demonstrated ability to deliver consistently high quality infrastructure and support, Elavon has now selected Ingenico Group to be a key partner in supporting its migration to EMV-based payment processing infrastructures in the U.S. In addition, it has chosen Ingenico Group to run Fanfare, Elavon's omni-channel marketing and customer loyalty program for small-to-medium size U.S. customers

Ingenico’s stock performance

Visa

New Technology Center in India

Visa Inc. (NYSE:V), the global leader in payments, announced that it will strengthen its technology resources by creating 2,000 full-time technologist positions. These positions will be a combination of new roles and existing contractor positions that are being converted to full-time positions. Visa also plans to open a new technology center in India. The combination of these initiatives will help accelerate the shift to electronic payments and drive innovation in mobile and digital platforms.

Visa plans to recruit professional technologists, many in specialized areas, to enhance its teams in India, Singapore and four U.S. locations. Recruitment efforts, which are currently underway and will continue through 2017, will focus on a range of technology needs spanning data scientists, engineers, platform architects and mobile developers.

 

 Visa ’s stock performance

           

 

References

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