value chains and market segments of downstream value adding sectors of space...
TRANSCRIPT
a
Market Segmentation
D O C U M E N T
document title/ titre du document
VALUE CHAINS AND MARKET
SEGMENTS OF DOWNSTREAM
VALUE- ADDING SECTORS OF
SPACE APPLICATIONS
prepared by/préparé par Sergio Lopriore reference/réference TEN-S/SL/1177 issue/édition 1 revision/révision 0 date of issue/date d’édition April 10th , 2007 status/état Final Document type/type de document Technical Note Distribution/distribution
Value Chains and Market Segments of Downstream Value- Adding Sectors of Space Applications issue 1 revision 0 -
TEN-S/SL/ page ii of iii
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10-Apr-2007
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Value Chains and Market Segments of Downstream Value- Adding Sectors of Space Applications issue 1 revision 0 -
TEN-S/SL/ page iii of iii
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T A B L E O F C O N T E N T S
1 INTRODUCTION....................................................................................................4 1.1 The Satellite Value Chains and Satellite Value- Added Services......................................................4
2 OVERVIEW OF MARKET SEGMENTS: SATELLITE COMMUNICATION ......11 2.1 Satellite Networks ............................................................................................................................12 2.2 Consumer Broadband Services ........................................................................................................20 2.3 Mobile Communications..................................................................................................................22 2.4 Video distribution ............................................................................................................................26 2.5 Video contribution ...........................................................................................................................36 2.6 Mobile Entertainment ......................................................................................................................40
3 OVERVIEW OF MARKET SEGMENTS: SATELLITE NAVIGATION ................43 3.1 Consumer Services...........................................................................................................................44 3.2 Road Applications............................................................................................................................50 3.3 Professional ......................................................................................................................................55 3.4 Government......................................................................................................................................61 3.5 Transport ..........................................................................................................................................64
4 OVERVIEW OF MARKET SEGMENTS: EARTH OBSERVATION....................69 4.1 Natural Resource Monitoring...........................................................................................................70 4.2 Defence & Security ..........................................................................................................................79 4.3 Land Monitoring ..............................................................................................................................86 4.4 Meteorology .....................................................................................................................................92
1 INTRODUCTION
This document describes the structure of the downstream value adding sectors of space applications, the structure and main elements of the value chains of satellite communication, navigation and Earth observation, the market segments, the profiles of the customers and suppliers of each market segment.
The value chain and market segments described in this document correspond to those developed by Euroconsult under ESA contract no. 19583/06/F/VS. The figure below provides a visual representation of the market segments of the downstream value- adding sectors of space applications.
1.1 The Satellite Value Chains and Satellite Value- Added Services
1.1.1 OVERVIEW OF THE SATELLITE VALUE CHAIN
The satellite value chain may be split in four main segments:
Satellite
Satcom6 Macro Segments
16 Market Segments
SATELLITE NETWORKS
CorporateNetworks
Satnav5 Macro Segments
17 Market Segments
EO5 Macro Segments
15 Market Segments
CONSUMER BROADBAND
MOBILE COM
VIDEO DISTRIB.
VIDEO CONTRIB.
MOBILE ENTERTAIN.
Rural Com Telemedecine
DefenseSecurity
IP Direct Access
Professional Mobile Com
Messaging & Asset Track.
DTH
HITS
SNG
Digital Cinema
EducationTV
Business TV
Content Management
SNG
DAB/DMB
In flight
CONSUMER
TRANSPORT
GOVERNMENT
ROAD
PROFESSIONAL
Personal LBS
Outdoor recreation
Leisureveissel
General Aviation
Rail
Maritime
Commercial Aviation
MACRO SEGMENTSMARKET
SEGMENTS
Public SafetyDefence
TrafficManagementFleet Management
Telematics
Agri/Fish
Surveying
Asset Management
Time & Freq. Dissemination
Scientific
NATURAL RESOURCE
MANAGEMENT
DEFENCE&SECURITY
LAND MONITORING
OCEANO-GRAPHY
METEO
Water
Energy
Forest
Agriculture
Environmentmonitoring
Homeland Sec/Law
enforcement
Humanitarian
DisasterManagement
Consumer Services
Cartography
Land use/cover
Transport
Coastal Zone /Engineering
ProfessionalWeatherForecast.
Market Segmentation
Satellite
Satcom6 Macro Segments
16 Market Segments
SATELLITE NETWORKS
CorporateNetworks
Satnav5 Macro Segments
17 Market Segments
EO5 Macro Segments
15 Market Segments
CONSUMER BROADBAND
MOBILE COM
VIDEO DISTRIB.
VIDEO CONTRIB.
MOBILE ENTERTAIN.
Rural Com Telemedecine
DefenseSecurity
IP Direct Access
Professional Mobile Com
Messaging & Asset Track.
DTH
HITS
SNG
Digital Cinema
EducationTV
Business TV
Content Management
SNG
DAB/DMB
In flight
CONSUMER
TRANSPORT
GOVERNMENT
ROAD
PROFESSIONAL
Personal LBS
Outdoor recreation
Leisureveissel
General Aviation
Rail
Maritime
Commercial Aviation
MACRO SEGMENTSMARKET
SEGMENTS
Public SafetyDefence
TrafficManagementFleet Management
Telematics
Agri/Fish
Surveying
Asset Management
Time & Freq. Dissemination
Scientific
NATURAL RESOURCE
MANAGEMENT
DEFENCE&SECURITY
LAND MONITORING
OCEANO-GRAPHY
METEO
Water
Energy
Forest
Agriculture
Environmentmonitoring
Homeland Sec/Law
enforcement
Humanitarian
DisasterManagement
Consumer Services
Cartography
Land use/cover
Transport
Coastal Zone /Engineering
ProfessionalWeatherForecast.
Market Segmentation
• Research and development activity, largely driven by space agencies internationally. The R&D activity excludes here dedicated R&D for satellite applications, but includes all R&D dedicated to technological improvement of satellite and launch technical capabilities
• Space industry: Space industry refers to all the activity linked to satellite manufacturing and launch. It consequently includes satellite manufacturers, satellite launch service and ground segments (dedicated to satellite tracking and control) providers, as well as all the suppliers of sub-systems to prime contractors.
• Raw satellite services: In the current assessment, raw satellite services include all operations related to the simple carriage of signals by satellite. It consequently includes satellite operation activity, either for commercial or government/military purpose as well as the uplink and downlink operations required for the transmission.
• Value added services: value added services are defined in the following section. It largely includes the activity that takes place between satellite operation and the final user of satellite services, as soon as the service involves more than the simple transmission of the satellite signal. Such services may be either for commercial or non-commercial purpose and service users may include companies, public offices as well as individuals.
One company may be involved at different levels of the satellite value chains. In such case, and due to the focus on value- added service of our current assessment, only the value added services provided by those companies will be taken into account.
1.1.2 DEFINITION OF A VALUE ADDED SERVICE
Reference definition
A value added service is understood as any service that corresponds to any of the following criteria:
- does not rely on the sole provision of the satellite signal, but enhance/upgrade it, or
- is designed for a customer, a final user, or
- is provided for operational purpose (recurring service),
- mixes several applications
Consequently, uplink/downlink of satellite signal, TT&C ground stations and reception of raw data are excluded from the classification described in this document.
Added value may be measured according to different criteria:
• For commercial services, the added value may be measured through the revenues generated by the service and the number of customers or subscribers;
• For non commercial services, the added value may be measured through the benefit brought to final users and the volume of activity generated (number of employees, number of users and measurable output)
A combination of several value chains
Innovation, and the creation of an added value to a raw service result from the combination of features and qualities brought by the combination of several value chains.
The satellite business
value chain
satellite manufacturing
commercial satellite
operation
satellite service provision
(TV, voice, data,Internet , radio,
images…)
sub-systems
launcher manu-
facturing
SSP groundsegment
final users groundsegment
sub-systems
satelliteoperation by publicagencies
satellite service provision
(meteo, images,scientific data,military data…
usersgroundsegment
publicinstitutions
needs
Spaceindustry
tax payersfinal users
operation groundsegment
Commercial applications
Public markets
launch services
Spaceagencies R&D
tax payers
CIV
ILIA
N
MIL
ITA
RY
dual use systems
Sat. groundsegment
Sat. groundsegment
Raw services:Simple carry of signal
Value added services:Enhanced/ upgraded
solutions
In satellite value added services, the satellite value chain is one of the chains creating the value of the final services.
For most value added services, the added value results from three main types of chains:
• The satellite value chain, described above
• The content value chain, that will be consumed by the final user. Depending on the chain, this may include TV channels, websites, maps, measures…
• The terrestrial technical chain, that includes all the hardware and software that is associated to creating the service and that is independent from the satellite value chain
As an example, the table below provides description of the value chains that lead to the creation of a satellite direct-to-home digital television platform.
The three value chains (satellite, content and terrestrial technical) can be clearly identified.
Sample of value chain for one value added service: DTH television broadcasting
DTH platform
Satellite operator & sat. control ground
station
Content provision
TV channels
Content producers & right owners
Production equipment
manufacturersSatellite
equipmentmanufacturer & prime contractor
Content management &
video contribution
Satellite launch service provider
Satellite transmissionTerrestrial technical chain
Retailers
Final users
Set-top-box manufacturer
Software:Encryption
CompressionInteractive middlewareSubscriber
management systems
Broadcast equipment
manufacturer
Electronic equipment
providers (chipsets, hard drives…)
R& D specialized centers
Value added services result from the
combination of several value chains
1.1.3 SEGMENTATION METHODOLOGY
For each of the three value chains in telecommunication, navigation and Earth observation, the segmentation takes into account the following criteria:
Customers: commercial (B-to-B, B-to-C) and institutional (civil and military);
Applications: e.g. video versus voice/data traffic in the field of telecommunications, aeronautical versus personal positioning in the field of navigation;
Products (hardware/software) and services (wholesale/retail, transport/distribution);
Geographical markets: domestic and export markets
Any other relevant criteria found for the specific application.
Three objectives have driven the segmentation:
1) Market segments are representative of and consistent with the practices observed in the industry;
2) Market segments are homogeneous and exhaustive;
3) The number of market segments is optimised for sector and segment- level analyses (sub- segments are not considered).
Two levels of segmentation are identified:
- The macro-segments, grouping markets where players share similar interests and face similar issues.
- The macro-segments are divided into market segments for services, addressing customers with specific global, regional and local trends, issues and potentially specialized suppliers.
Each market segment is presented with main characteristics and structure including customers and suppliers.
Some applications cut across several market segments or macro- segments in a value chain. It is the case for instance of telemedicine, which is identified in several market segments implying different kinds of customers and services, depending on the segment.
This document addresses the markets and services that are mature or emerging in each value chain. Perspectives of future value- adding services integrating different applications are not considered.
SEGMENTATION OVERVIEW
Telecommunications: 6 Macro Segments; 16 Market Segments
Navigation : 5 Macro Segments; 17 Market Segments
MACRO SEGMENTS MARKET SEGMENTS
SATELLITE NETWORKS
Corporate networks Rural Communications Telemedicine Defence and security
CONSUMER BROADBAND SATELLITE SERVICES Internet Direct Access
MOBILE COMMUNICATIONS Professional Communications Messaging & Asset Tracking
VIDEO DISTRIBUTION Direct to Home TV Head end in the sky for Cable and IPTV Networks Digital Cinema Tele-education and Distance Learning Business TV
VIDEO CONTRIBUTION
Satellite News Gathering Content Management and Video Exchanges
MOBILE ENTERTAINMENT Digital Audio and Multimedia Broadcasting In-Flight Passenger Services
MACRO SEGMENTS MARKET SEGMENTS
CONSUMER SERVICES
Personal LBS Outdoor recreation Leisure vessels General aviation
TRANSPORT Rail Maritime Commercial aviation
GOVERNMENT Public Safety Defence
ROAD APPLICATIONS Telematics and ADAS Fleet management Traffic management
PROFESSIONAL Precision agriculture and fisheries Surveying Workforce and asset management Time and frequency dissemination Scientific
Earth Observation : 5 Macro Segments; 15 Market Segments
MACRO SEGMENTS MARKET SEGMENTS
NATURAL RESOURCE MANAGEMENT
Water resources Agriculture Energy and mineral resources Forest resources Environment monitoring
DEFENCE SECURITY Homeland security / Law enforcement Humanitarian Relief Disaster management
LAND MONITORING Consumer Services Cartography Land use/land cover
OCEANOGRAPHY Ocean Forecasting Marine Engineering
METEOROLOGY Professional Weather Forecasting
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2 OVERVIEW OF MARKET SEGMENTS: SATELLITE COMMUNICATION
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2.1 Satellite Networks
This application addresses satellite-based communications and network solutions for professional customers to connect corporate and organizations sites located in remote areas.
The typology of customers defines market segmentation since service requirements and market drivers vary significantly for corporate, civil government agencies and military agencies.
The specific trunking market, consisting in wholesale services of satellite bandwidth to professional communication services providers (telecommunication companies, Internet Service Providers, etc.) is excluded as it does not consist in a “value added service” but in a raw data package transfer from point to point.
In addition, the market of direct broadband access for individuals and small enterprises/offices is not included within this segmentation. As a consumer market, its characteristics are different from those of professional satellite private networks. Consequently, broadband consumer access is included in a specific section.
2.1.1 CORPORATE NETWORKS
The corporate networks markets correspond to the delivery and/or operation of a private communication network, based on VSAT technology, to a business enterprise or a public organization for its internal needs (embassy, postal service for instance).
Most of VSAT suppliers offer one-stop-shop / turnkey solutions that include both hardware and service: system design, procurement, implementation and operation. Services may also include additional value-added services to support a wide range of business applications and improve networks’ efficiency (security, backup, multicast etc.)
Market segmentation for Satellite Networks
Corporate networks Package / operation of communications networks, including satellite networks, for a business enterprise
Rural Communications Provide connection solutions to remote locations with inadequate ground telecommunications infrastructure
Telemedicine
Defence & Security Package / operation of communication solutions to military forces Back up communications to local government / emergency departments and agencies
Satellite networks solutions for business & enterprises includes a diversified portfolio of services
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Customers
The VSAT-based satellite network market is still dominated by corporate and enterprises customers, for which the satellite technology provides cost effective two-way communications solutions.
Customers include industries with connection needs for multiple sites located in remote areas (mining/oil & gas, manufacturing industries, forestry) or with specific requirements for secured internal communications (banking, stock exchange, pharmaceutical, retail).
Customers’ main motivations in choosing a satellite-based network include:
1) The absence of viable terrestrial infrastructure. In this case, satellite will be the primary network
2) Back up for terrestrial infrastructure, that will be the primary network
3) Flexible and fast deployment of satellite networks, compared to the implementation of a terrestrial solution.
In addition, satellite networks offer key advantages including ubiquity (VSAT is available at any location) and multicast support (sending the same data to tens or thousands of locations at once).
Suppliers
The VSAT market is highly concentrated with a limited number of key players. This industry has gone through structural transformation with consolidation between technology suppliers and service providers. The movement should even accelerate in the future with the potential purchase of VSAT solution vendors by telecom and satellite operators.
Typology of Customers for Satellite Networks
Energy Mining, Oil & Gas Forestry
Industry Pharmaceutical Automotive Other Manufacturing industries
Financial Banking ATM Stock exchange
Retail Restaurant Department stores
The enterprise market remains the VSAT industry first source of revenue
This industry should continue to undergo major transformations in the future
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Most of VSAT suppliers integrate network installation, operation and management. VSAT service provider may provide turnkey solutions or network infrastructure, then operated by the final customer or a global network operator. Business relations with telecom operators and network service providers may be problematic as they can be customers or competitors depending on the end-user. .
Specialised hardware and software product manufacturers include multidisciplinary companies involved in broadband, IP VPN and broadcast technologies. Their products include modems, network routers, amplifiers, transceivers, frequency converters, antenna tracking controllers and combination systems
The development of high bandwidth network solution represents a fundamental issue for this industry. Laboratories and research centres have developed standards for broadband satellite services that would enable to decrease cost per customers. The three main standards are
• DOCSIS (Data OverCable Service Interface Specification) developed by the US Cable Industry,
• DVB RCS (Digital Video Broadcasting Return Channel System) adopted in Europe and Canada through the SatLabs non profit association as an open-air interface, and
• IpoS (Internet Protocol over Satellite), developed supported by ETSI and the Telecom Industry Association.
2.1.2 RURAL COMMUNICATIONS
VSAT architecture is extensively used to connect remote locations primarily in developing countries where there is no or limited telephone or Internet service due to inadequate ground telecommunications infrastructures. Satellite-based networks are often the sole or the most efficient solution for rapid deployment of communication links in these areas.
Customers
Over 40% of the world’s population (2.3 billion people) live in rural and remote areas of developing countries with poor or no access to telecommunication services. These areas often include difficult geographical configuration (forest, desert, grasslands, mountain etc.) for which implementing, operating and managing traditional (terrestrial) communication architectures is challenging, not affordable or simply not impossible. As a consequence this market is first and foremost focused on the needs of developing countries in particular in Africa, South Asia and Latin America., with support of government and non-government organizations.
A wide range of applications to fill the digital divide
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Then, satellite networks are increasingly used by municipalities and government public service departments to delivering affordable communications solutions and accessible services to their population, including:
• Rural Telephony
• Internet Access
• Distance Learning / Tele Education
Telemedicine applications are covered in a specific segment.
Suppliers
Suppliers are traditional VSAT service providers since products are similar to those of corporate networks. However, market players are much more concentrated for rural communications services. The market is dominated by global VSAT service providers that have built specific services to address these particular customers. In addition, most of VSAT suppliers provide services to local telecom operators in developing countries that deliver the final service.
Because this market requires a specific customer approach due to the particularities of users, some service providers decided to create subsidiaries dedicated to provide specific communications services to remote areas. However, this strategy turned out to be unsuccessful and the market is today dominated by traditional VSAT providers.
Main R&D players include incumbent telecom operators, equipment suppliers but also space agencies who develop specific R&D programs related to satellite applications and Universities/laboratories.
The Twister program (Terrestrial Wireless Infrastructure integrated with Satellite Telecommunications for E-Rural) is one of the largest R&D initiative in Europe for hybrid satellite-wireless broadband solutions providing innovative broadband services & applications
Typology of Customers for Rural Communications
Local public authorities
Public access to basic telephony, fax Public Internet Access Registration & voting Dissemination of information about government programmes,subsidies and administrative matters Delivery of multimedia educational content On-line academic database and bibliographic access Distance learning Training
Same categories of suppliers, but specific players for R&D programs
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meeting the needs of rural user communities. The project regrouped a consortium of 12 partners in charge of the development of applications: agriculture , education, health care, e-business and related ground segment mixing wireless and satellite solutions.
2.1.3 TELEMEDICINE
Telemedicine combines telecommunications networks (VSAT, Wireless LAN) and information technologies to enable medical related training, consultations and interventions. One advantage of telemedicine is that it allows for the interaction between a medical specialist or generalist and a patient to a non-specialist (ex. practitioner) at different locations. The training or consultations may involve data (such as text, voice, images) transmission and remote operations (ex. of diagnostic equipment such as an ultrasound system or of surgical instruments).
Customers
This sector is in a demonstration phase via publicly funded initiatives opportunities.
Promoters of telemedicine projects expect to improve health conditions, medical interventions efficiencies and lower medical costs. Telemedicine programs are not exclusive to developing nations, since many developed countries have shown interests to improve their medical system, ensure access to best health care practices for their population or improve medical interventions during emergencies. Benefits that are commonly acknowledged for telemedicine include:
• Centralizing functions across state hospitals;
• Best practice sharing:
• Real-time consultation with distant or urban specialists via broadband data and
• Video networks,
• Training based on distance learning applications.
Suppliers
Leaders in telemedicicine include Europe, Canada, Japan and the US.
Key players in the telemedicine value chain include:
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• Telemedicine service providers who supply the medical service between the medical sites and the related services for the coordination, maintenance and integrity of the service.
• Medical service providers who supplies professional expertise in the field of medicine. Examples of medical service providers include hospital departments, emergency departments, First Assistance Local Unit, general practitioners (GP), specialist doctors and scientific centres.
• Hardware and software providers, who are often independent from the service providers (low level of vertical integration).
• Telecommunication providers who provide the telecommunication service
2.1.4 DEFENCE & SECURITY
Satellites play a critical role when terrestrial infrastructure is overloaded or inoperable in emergency situations: hurricanes/typhoons, tornadoes, floods, earthquakes/volcanic activity, blizzards, man made environment disaster. Demand from military customers was supported by a particular geopolitical conjuncture but also due to a number of key advantages in procuring commercial bandwidth for non sensitive communication links.
Satellite systems provide invaluable solutions to these government customers due to their key advantages: global coverage, any-time availability, easily deployable and operation.
Customers
Procurement of commercial satellite bandwidth is a very attractive option for any military agency looking for flexible and end-to-end communications solutions. If this market is characterized by a strong US-centric nature, many other military agencies turn towards commercial service providers to supply their communications needs
Securing communications capabilities is among the first priorities for local government and emergency agencies that have to deal with emergency response, rescue, or relief situation. Their communication requirements include: emergency assistance, locating and rescuing victims, remote monitoring and alarm, radio broadcasts of urgent content (disease outbreaks, disaster warnings, instructions for refugees), re- establishing communications after a disaster, remote monitoring to alert of potential natural disasters etc.
The US Department of Defence is the first customer for commercial satellite communications services worldwide. Since 2001, the surge of its communication requirements far exceeds the capacity of its ageing satellite fleet and motivates this organisation to rely first and foremost
Securing communications solutions during emergency situations has become a major application for the satellite
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on commercial communications. During military operations in Iraq over 80% of satellite communications requirements were provided by commercial services.
For other military agencies with no or limited proprietary or dedicated military communications systems, procurement of commercial capacity enables to have access to satellite bandwidth without supporting development, procurement and operations costs of a full system. European military agencies are increasingly turning towards to commercial bandwidth with innovative procurement schemes.
Emergency departments and organisations use satellite communications as a back up of terrestrial networks to secure their emergency operations and rescue victims. Recent events including the Katrina Hurricane, Tsunami in South Asia and the World Trade Center in September 2001 have highlighted the contribution of satellite networks to local emergency authorities. Several local division of emergency management have set up permanent satellite system.
Suppliers
The Defence market is addressed by specialized suppliers because of the intrinsic specificities of customers requirements compared to other traditional customers (for instance on-site management of networks during a conflict)
There are today different kinds of service providers who have developed diversified offers to address the military market
• Global satellite communications service providers with sometimes a particular focus towards military customers in the US mainly,
• Satellite Operators’ subsidiaries
• Operators of dedicated commercial satellite systems for military use.
Similarly, equipment suppliers include global equipment suppliers and companies specialised in the military market. Similarly to the commercial VSAT market, service suppliers generally provide end-to-end managed, or so called one-stop-shop solutions (including service and equipment).
Traditional suppliers of satellite service solutions who have designed dedicated solution to emergency communications. In addition, several companies have specialized in these services, e.g. by providing wireless satellite and terrestrial communication solutions to first respondents.
Emergency communications are a typical application implying integration of a wide range of technologies and partnership with
Military services are often provided by specialized suppliers
Wide range of market players, technologies and potential partnerships
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different kinds of players, since service providers provide packaged solutions integrating satellite and non-satellite technologies, wireless local area networks, handheld equipments such as PDAs and mobile phones, wireless computing solutions, SCADA etc.
In the longer term, disaster relief should lead to merging satellite technologies including satellite communication systems (mobile and fixed), satellite navigation systems and real time earth observation data, opening the door for advanced integrated value added services and new kinds of suppliers.
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2.2 Consumer Broadband Services
Broadband services to individuals consist in delivering direct internet access by satellite to households. Its market characteristics are very different from traditional satellite networks dedicated to professional users, including
• Specialized service providers with specific business models
• Large size consumer base
• Nature of service: internet access, no network management
• Technology used and terminal equipments
• Pricing policy
• Regulation
Consequently, this market segment is treated in a separate section.
2.2.1 INTERNET DIRECT ACCESS
Customers
In a booming Internet market, the satellite industry anticipated large market perspectives for the satellite broadband consumer market, perceived as a next “killing application” after DTH services.
However, satellite access remains a marginal solution for IP connection to individuals due to a weak competitive position of satellite products with respect to the existing terrestrial offering. IP over satellite reached about 250,000 subscribers in 2005 worldwide compared to over 150 million for DSL and cable.
Satellite solutions suffer from poor performance technologies and high upfront cost (still over $500) and monthly fees ($60 to $400) for the
Market segmentation for Consumer Broadband Services
Internet Direct Access Two way high speed internet connections to households
Slow take off due to uncompetitive solution
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customers first generation service consisted in one-way services with satellite download and a return channel via PSTN/ISDN, making the product not attractive. If the introduction of two-way services may positively impact the market thanks to better performance and lower costs, the consumer market is expected to be concentrated in specific regions combining large internet acceptance and specific geographic features (North America and Asia in particular).
Suppliers
Service providers include a mix of suppliers including specialized subsidiaries of satellite service providers, satellite operators and incumbent telecommunication companies. DTH broadcaster had shown interest around 2000 to combine TV broadcasting and internet access. However, they scaled back their plan with demonstration projects rather than making significant investments.
Most of service providers have a limited consumer base (less than 5,000) and target the small enterprise market (SMEs and SOHOs) that provides better business perspectives. Promoters have scaled back their broadband projects in their business priority with a “wait and see” strategy. However, in 2005 the satellite industry started deploying four satellite systems dedicated to broadband.
Consumer equipment, satellite modems and Ka-band terminals are provided by traditional VSAT suppliers and professional equipment manufacturers.
In Europe, space agencies are supporting R&D programs with industry to improve satellite efficiency and have funded R&D studies on DVB-RCS and DVB- S2 standards. In North America, most of the R&D is funded by the private sector.
Ka-band promoters finally start services
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2.3 Mobile Communications
Mobile communications includes two markets where satellite technology is instrumental to provide communication to businesses and governments while they are in the move in areas not served by terrestrial communications networks:
- professional communications include telephony and two-way communications with mobile users outside the reach of terrestrial communications networks at sea, on the land and in the air
- messaging & asset tracking include low data rate one-way and two-way communications with land users that divide into two categories: mobile humans for fleet management and messaging and fixed and mobile machines for telemetry and SCADA (Supervisory Control and Data Acquisition).
2.3.1 PROFESSIONAL COMMUNICATIONS
Since its early days, satellite technology has been providing mobile voice & data communications to civilian government agencies and businesses where no terrestrial network is available. Initially concentrating on the maritime industry, the market enlarged over time with land and aeronautical communications by satellite.
After 25 years of existence, the leading European maritime satellite operator is still number one of the mobile satellite services (MSS) industry, even if new entrants have developed regionally.
Customers
Large businesses and multinationals in various industries (media, maritime trading) and government agencies have mobile-to-fixed communications needs that can only be served by a satellite solution. In addition to voice communications, they generally require data communications at different bandwidth.
Military agencies use mobile satellite systems to allow the military forces operating in remote theatres not served by terrestrial
Market segmentation for Mobile Communications
Professional Communications Voice & data communications to government agencies and businesses when they are in locations where no
terrestrial communications network is available
Messaging & Asset Tracking Low data rate communications, data collection, telemetry and SCADA (Supervisory Control and Data Acquisition) for fixed and mobile assets to monitor and command.
Market enlarging from maritime to land and aeronautical services
A market highly sensitive to military & peace-keeping operations abroad
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infrastructures to communicate with headquarters and command centres. Demand for such services is driven by the intensity of foreign military operations during conflicts (e.g. Iraq) and for crisis prevention and peace monitoring. Two of the largest customers in recent years were a governmental military organisation and a company specialised in secure communications.
Suppliers
Equipment and services for mobile satellite communications are sold to professional users by service providers generally specialised by vertical market and/or regionally: for example, trading, fishing, off-shore, and yachting for maritime customers and media, humanitarian & emergency, energy, and mining for land customers. The market for aeronautical communications is much more concentrated with a limited number of specialized companies providing service globally to the airline industry.
The service providers bundled offers that combine satellite airtime with terminal lease or purchase along the same model than cellular telephony subscriptions. As more capable satellites become available, broadband services up to 432 kbps are possible such as the broadband global area network introduced in 2005.
Equipment and services for mobile satellite communications are sold to military users by specialized service providers that generally also sell fixed satellite communication solutions and terrestrial communications networks. Some have global capability as they are part of large telecom and information technology solutions providers.
The service providers lease airtime on mobile satellite systems (MSS) through their resellers. Service contracts can be for short periods of time or for several years and include the lease of satellite terminals.
Typology of Customers for Mobile Professional Communications
Land
Press & Media Humanitarian & Emergency Energy & resources management Government civil (embassies, offices) Defence
Maritime
Fishing Trading Off-shore Passenger cruise Defence
Aeronautical
Airline companies, private and corporate aircraft Defence
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2.3.2 MESSAGING AND ASSET TRACKING
Satellite technology is instrumental for data collection, telemetry and SCADA (Supervisory Control and Data Acquisition) services to governments, multinationals and utilities with fixed and mobile assets to monitor and command and to the transport industry with fleets of vehicles to manage.
Telemetry and SCADA is a specific segment of assets tracking as it involves machine-to-machine (M2M) communications while fleet management include messaging between humans.
The segment experiences growth with active marketing from three satellite constellations in low Earth orbit. They have enlarged their portfolio of services to include data collection and short burst data services in addition to voice communications.
Customers
More and more companies operating network infrastructures require a continuous monitoring of their assets to optimize their operations. Satellite is a unique solution for them when their infrastructures cover large territories with sometime difficult terrain conditions (mountains, islands, high latitude) that can not be reached physically or economically by radio systems and humans. The growing recognition of the productivity and security benefits of telemetric and telematic solutions is beneficial to satellite systems.
Customers for SCADA, telemetry and telematics services divide into four broad categories, of which two (Utilities/Energy, and Transportation) are more developed than the two others (Science and Transaction).
When selecting a satellite communications solution provider for SCADA, customers consider factors such as security, reliability, types of connectivity and recurring communications costs. Additional aspects are: dedicated networks, communications protocols and user control.
A growing market for satellite services
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Suppliers
The service providers integrate wireless communications and sensor-generated information about equipment status. In most of the cases, the information is combined with GPS-based location information. They divide in two categories serving different markets:
• a few large companies providing telematics service globally to specific industries (e.g. freights, energy, water);
• a large number of small companies active only locally and nationally.
Typology of Customers for Asset Tracking
Utilities & Energy
Pipeline monitoring Oil & Gas wells Utility meters Water & Irrigation
Transportation
Box cars and containers (on trucks, trains, ships) Cars & trucks, truck tractors Ships & vessels Trains
Science
Oceanography Hydrology Meterology Vulcanology
Transaction
Vending machine, ATM Return channel to TV broadcasting
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2.4 Video distribution
Video distribution is the leading commercial application for satellite systems. It corresponds to the delivery of video signals to either private antennas or head-ends of terrestrial networks by satellite.
The application primarily includes four types of players:
• Commercial and public TV channels,
• Satellite pay-TV platforms,
• Cable and IPTV platforms,
• Providers of tele-education and business TV,
• Providers of technologies supporting broadcast applications
2.4.1 DIRECT-TO-HOME TELEVISION
Direct-to-home (DTH) television corresponds to the delivery of TV channels to TV viewers through privately held antennas. Companies involved in DTH broadcasting include either TV channels or satellite TV platforms. As of today, more than 50 DTH pay-TV platforms broadcast TV channels to more than 65 million subscribers. As a result, satellite is currently the leading network for the delivery of digital TV content.
Market segmentation for video distribution
Direct-To-Home television Broadcast of TV channels and packaged TV offers direct to TV viewers through private dishes
Head-end in the sky for cable and IPTV networks
Broadcast of TV channels to head-ends of terrestrial networks
Digital Cinema Multicast of video signals (movies) to theaters
Tele-education Broadcast of packaged educative content for an educative purpose
Business TV Broadcast of video content for businesses
Leading satellite commercial application
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Nevertheless, the increasing competition of terrestrial networks, offering in particular triple play services, may threaten the leadership of satellite for digital TV delivery in the long term.
Customers
Customers of direct-to-home (DTH) satellite services are primarily households, in addition to a limited professional market. Currently, more than 70 millions households subscribe to satellite TV services, while a large additional number of households receives free-to-air TV channels by satellite.
The professional market, that remains less developed, corresponds to leisure areas, including bars and hotels, offering a broadcast service to customers.
Some governments have developed DTH services dedicated to armed forces deployed abroad. The most developed service is currently the AFRTS-Armed Forces Radio and Television Forces that provides live broadcasts for the US army in the different world regions.
Suppliers
Service providers
An increasing number of service providers is observed for direct-to-home TV broadcasting, largely due to the launch of new services in developing regions in the last three years. Almost all large broadcasting markets are now served by commercial service providers, with the notable exception of China.
We may distinguish four types of service providers:
• Satellite TV platforms: those companies package an offer of thematic channels and offer this service for a monthly subscription. At the end of 2005, 58 satellite pay-TV platforms were in service at the end of 2005 in the different world regions.
• Private TV channels: TV channels can be broadcast outside of satellite TV platforms. The business model for most of these commercial channels relies on advertising revenues with a free-to-air reception for final viewers. In addition, a number of these individual channels ask for a specific monthly fee.
• Public TV channels: A number of public TV services are offered by satellite. The purpose of these channels may be to provide general news or cultural information on certain countries/cultures languages or to provide specific services such as education. Educative channels are treated later in the report as a dedicated segment.
An increasing number of service providers, despite consolidation in certain markets
A business model both based on pay-TV and free-to-air viewing
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• Multiplexes: Multiplexes corresponds to the packaging of a number of free-to-air channels on a single transponder. The purpose may be to optimise transmission networks and share part of the content management expenditure. Multiplex service providers are treated in the segment dedicated to satellite contribution, as service providers are the same for the two segments.
• Military services: military offices providing broadcast services for military forces. The AFRTS-Armed Forces Radio and Television Services from the US is the only large office specifically structured to provide broadcast services. Due to its coverage capability, satellite is the reference delivery network for the AFRTS.
Hardware / Software providers
Three main types of players can be analysed in the provision of hardware and software:
• General broadcast equipment manufacturers: Those companies provide the broadcast equipment required to manage the TV signals for the TV providers. This industry is relatively consolidated.
• Content management companies (covered in the video contribution section)
• Set-top-box manufacturers: These companies provide the reception equipment for final users. The market may be split between a number of world leaders focused on value added products such as personal video recorders and a growing competition for local manufacturers of developing countries, who are more focused on “basic” set-top-boxes”. Highly competitive, the market is currently far from consolidated
• Middleware and software manufacturers: those companies are notably responsible for the development of encryption and interactive solutions. Due to the large R&D required to develop advanced solutions and to the limited corresponding market, this industry segment has rapidly consolidated, with a few companies dominating the market
R&D centres and institutions
Due to the convergence of video & multimedia technologies, an increasing number of research centres are involved in programs that may impact the future of the broadcast industry.
Three types of players can be identified:
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• Standardisation entities: as a mass market, TV broadcasting has tended to develop standards in order to optimise consumer acceptance of new services and achieve economies of scale. As leading delivery network for digital TV in the last ten years, the satellite has been largely involved in developments and implementations of digital broadcasting standards. Key standardisation including DVB and MPEG are to be considered with the impact that future standards may have on the market.
• Private research centres: leading electronic manufacturers have developed large internal research centres to support the design of innovative products and services. Although manufacturers of hardware are included in the previous section, specific research centres may be considered in the third section.
• Public research centres, universities and institutes: all leading digital TV markets have specific research programs dedicated to the development of digital media, including content creation,
2.4.2 HEAD-END IN THE SKY FOR CABLE AND IPTV NETWORKS
Satellite operators have increasingly provided head-ends in the sky (HITS) type of services. It corresponds to the multicast of TV channels to head-ends of cable and IPTV networks. With the expected fast development of digital TV services over cable and DSL networks, terrestrial systems can benefit from the broadcast capacity of satellite systems to deliver TV content to local nodes of their networks and optimise networks.
The added value is provided by the multicast capability of satellites. A single broadcast of a TV channel can support services for the different parts of a national terrestrial network or even support different networks and customers.
Customers
The application of “head-end in the sky” (HITS) is a professional market, with customers being terrestrial networks. As a result, this application is purely commercial, and does not include government customers, except for certain public broadcasters and/or networks. Customers primarily include cable networks, and may potentially include DSL, DTT and mobile TV networks.
Suppliers
Satellite as node of terrestrial networks for TV broadcasting
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Service providers
Three main types of suppliers can be found that provide “head-end in the sky” (HITS) services. These include:
• Broadcasters: a number of channels have developed HITS solutions to support their own carriage to cable systems and optimize their transmission costs
• Specialized service providers: a number of companies have specifically designed HITS services to support terrestrial networks. Most of those companies can be found in the US and serve both leading and rural terrestrial networks.
• Satellite operators: recently, several satellite operators in the US have developed HITS solutions in order to support the delivery of TV channels
Hardware / Software providers
Main providers for the segment will be broadcast equipment manufacturers. Companies involved will be the same as for direct-to-home TV broadcasting. (ref. previous section).
R&D centres and institutions
R&D centres involved will the same as for video distribution (see previous section).
2.4.3 DIGITAL CINEMA
Compared to the traditional physical delivery of tapes to theatres for movie broadcasts, satellite solutions have begun to be designed to deliver video content direct to theatres. This B- to- B application may result in significant savings on the delivery of video signals. It may nevertheless in parallel require significant upfront investments in digital equipments by theatres to receive and project the received video material.
Customers
The digital cinema application is a business-to-business market, with customers being potentially production majors and theatres.
Two types of services may be distinguished. A first application may be the regular delivery of digital movies to theaters for day-to-day operations.
Three types of service providers
Satellite offering an optimized video delivery solution to movie theaters
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The second type of service corresponds to special events delivery. It may include specific sports events, music shows
In addition to theaters, an additional market may be composed of certain reception rooms in rural markets.
Suppliers
Digital cinema is still an emerging application. As a result, the number of companies involved in the market is still limited.
Service providers
A number of companies have started developing digital cinema solutions, primarily in the US and Europe.
However, at the early stage of the market, the value chain for the application is not fully designed:
• A limited companies may be considered as pure service providers,
• Certain content producers and/or broadcasters have invested in such services,
• A number of industrial players, are likely to offer integrated services including the equipment delivery and the technical service,
• A number of chains of theatres may decide to internalise the technical capability to serve their proprietary cinemas
Hardware / Software providers
A number of large electronic manufacturers, primarily in the US, Europe and Japan, have started dedicating business units to the emerging digital cinema markets.
A number of niche players are also present in the market segment. A VSAT manufacturer for example has started designing a solution for the creation of a D-Cinema service in India.
R&D centres and institutions
R&D activity is split between the research activities of equipment manufacturers and a number of research centres. However, as D-Cinema has remained a niche application, research projects on the development of equipment and services can be more limited compared to other applications. Still, certain research programs can be identified in the US and Europe.
An increasing number of companies involved in digital cinema projects
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2.4.4 TELE-EDUCATION
The development of satellite TV broadcasts for educative purposes has accelerated in the last few years. Satellite has been chosen as a reference network for the delivery of educative either direct-to-home or with a BtoB approach in an increasing number of countries, with content offered either by public offices, schools and universities or private companies.
Customers
The tele-education market may be split into two sub-markets.
One part of the market can be considered as a business- to- consumer application. Free-to-air services of that type are usually supported by governments, with the objective of providing training to the population. Pay services dedicated to subscribers have so far not been significantly developed.
Another market segment can be regarded as business- to- business. More specifically, universities and companies may use satellite as delivery networks to supply training programs for internal or external use.
Suppliers
Service providers
Education TV services are currently offered by three main types of companies:
• Public broadcasters that dedicate certain channels for education purposes
• Universities, with an increasing number of leading universities developing TV broadcasts
• Potentially a minority of private TV services. However, in such services, services offered may be considered as close to business TV
• Association type structures: depending on the definition of education, certain independent structures, for example supported by religious organisations, may promote education type services.
Overall, public services supported by national governments remain currently largely dominant. The offer appears to be more limited in Europe compared to several world regions, including in particular North America, Asia and the Middle East.
In a number of developing countries, TV is considered as a privileged tool to provide education to households, due to the high penetration of
Education as a growing satellite video application
A market dominated by public services
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TV, and the potential lack of local education infrastructure of good quality as well as issues related to literacy.
Hardware / Software providers
Largely relying on equipment developed for traditional broadcast solutions and or VSAT technologies, education TV does not present pure players in the hardware manufacturing.
In terms of software, whereas a number of products have been developed to provide training, those products are not directly related to Education TV. The market of training software is however far from consolidated, with many small companies focusing on one type of product/content (i.e. languages, biology)
R&D centres and institutions
Research centres involved in broadcast activities have already been cited in other segments, in particular for DTH broadcasting. As a result, these have not been introduced here.
In parallel, a number of R&D centres may be involved in general research on training, but these may not be particularly focused on the transmission aspect of the service.
Otherwise, a significant part of the R&D activity is estimated to come from leading electronic manufacturers as well as by companies developing e-learning solutions. Those companies have been cited below in the hardware and software providers.
Selected issues
Education TV has been a growing application in recent years, with satellite being one of the privileged transmission networks due to its coverage.
The field of education is expected to be greatly impacted by the current digital revolution due to three main factors:
• Due to rapid technological and sociological evolutions, training needs are increasing for both individuals and companies,
• Digital technology opens new opportunities for the management of programs and the development of interactive applications,
• The usage of Internet as key learning tool, in competition but also complementary to television, creates both opportunities and challenges.
Globally, the market of education currently appears to be underdeveloped, particularly in Europe.
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For satellite, the ability to be a long term primary player in the Education field may imply the development of hybrid solutions with terrestrial networks as well as the development of applications that include a mix of live programming and of downloaded and stored content.
2.4.5 BUSINESS TV
An increasing number of companies has turned to satellite solutions to deliver video content to multiple locations. The purpose may be for internal communication in companies’ premises or for promotional communication at retailing points. Satellite benefits from its flexibility for network deployment by public and private entities.
As an application, it remains close both to education TV and corporate networks, but may still be introduced as a particular market segment.
In the future, the development of business TV may be conditioned by the ability to deliver richer content including data and potentially a return link.
Customers
Business TV is a business-to-business application. Service providers primarily provide the network solution, potentially completed by activities in the content production.
Main customers are currently private companies. Nevertheless, growing needs in terms of training and communication from government agencies may push for the development of business TV solutions.
Suppliers
As already mentioned, business TV is at the crossroad of three value chains:
• TV broadcasting
• Education TV
• Corporate networks
As a result, few pure players in this market segment, with most companies being involved in at least one of the market segments cited above.
Satellite as efficient solution for business TV networks
An application at the crossroad of different service provisions
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If this is true for service providers, it is even more relevant for manufacturers and research centres. Few if any company may be focused on the segment of business TV only. On the opposite, the development of the application benefits from the R&D conducted for related value chains.
As a result, manufacturers and research centres to be considered are the same as stated in the market segments of TV distribution and corporate networks.
An increasing number of service providers is currently becoming active, due to growing demand from large companies. The type of companies involve are primarily technical companies providing support to either broadcast or corporate networks as core business.
In addition, the involvement of a multi- channel TV provider in the market segment must be mentioned.
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2.5 Video contribution
Satellite is one of the key networks for the exchange of video programming and the only network available for a number of contribution services. Video contribution corresponds to the exchange of “raw” video content, which has then to be integrated in the stream of programming of broadcasters.
2.5.1 SATELLITE NEWS GATHERING
The coverage of live events is a continuous requirement, that continues to increase with the multiplication of news TV channels. Most places where news must be collected are not suited for a terrestrial carriage of content collected, which is consequently preferably carried by satellite.
News gathering, with the multiplication of events covered, has seen a number of innovations in the past few years, which makes it a dynamic application. This includes the development of personal terminals, as well as the current development of services using MSS satellite systems.
Customers
Satellite news gathering is a business to business activity, with main customers being TV broadcasters.
Due to the increase in the number of video signals and treatments, the number of type of customers is expected to progressively diversify, with a demand from telecom operators and Internet sites providing news video content.
Direct demand from government, excluding public broadcasters, is limited. However, technologies and services of video collection and transmission from remote areas may be used as an operational tool to support local operations, in particular in case of national disaster of military operations.
Suppliers
Market segmentation for video distribution
Satellite news gathering Collection of live programming to provide news information.
Content management and video exchanges
Management and exchange of live and stored video programming for broadcasters
A fast growing application supported by the multiplication of 24 hours news channels
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Service providers
Service providers of satellite news gathering services may be of three main types:
• Specialized technical providers: those companies are equipped with SNG capability including trucks to provide a SNG solution to broadcasters;
• Broadcasters: A lot of TV channels have internalized at least part of their satellite news gathering activity, with the ownership of the SNG equipment and the sending of journalists onsite;
• International associations: certain association type structures are responsible of satellite news gathering for a group of broadcasters and provide services to their members as well as potentially for other companies as a commercial product.
Hardware / Software providers
Hardware companies in satellite news gathering may be specialized either on the electronic side with the development of routers (…) up to videophones, while a number of companies will be specialized in the integration of equipments and solutions in trucks and heavy mobile units.
R&D centres and institutions
R&D focused on satellite news gathering is expected to be primarily provided by industrial companies involved in the development of new products and solutions.
Otherwise, the development of the segment will be supported by general R&D in signal transmission, which is already covered in the other segments dedicated to broadcast and telecom applications.
2.5.2 CONTENT MANAGEMENT & VIDEO EXCHANGES
The exchanges of programming are multiplying with the increase in the number of TV channels broadcast and the digitisation of content. Historical providers of content management and video exchange services currently work on the development of integrated offers that include the management of content and global solutions of content delivery.
While satellite remains a key network for video exchanges, it is currently facing the fierce competition of the terrestrial backbone
Supply is well developed
A fast growth of service providers may be followed by consolidation
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networks in areas with a dense terrestrial infrastructure and more specifically for the exchange of permanent programming.
Customers
Video exchanges and content management is a business to business application. Customers are public and private broadcasters.
Although satellite news gathering (SNG) can be considered as part of the programming exchanges, the current segment is more dedicated to the development of solutions for content management for regular of permanent streams of stored content.
The activity of multiplexes, that provide a full technical solution for the broadcast of packaged TV channels by satellite, is included in the segment.
Suppliers
Service providers
An increasing number of market players is currently observed in content management, including multiplexes.
This increase is driven by two main drivers:
• Operators of infrastructures and manufacturers of hardware are currently in the process of developing value added services. An increasing number of companies have invested into the development of content management activities;
• A number of more specialized players has developed to provide multiplex type solutions. Such companies may be subsidiaries of telecom operators or independent.
This increase in the number of service providers and of competition in a market that already presents low margins is expected to result in a consolidation in the middle term.
Hardware / Software providers
Hardware and software providers include leading companies involved in the development of routers and network solutions such as Cisco. A number of more specialized companies in TV networks can also be met as well as providers of content management software.
Except potentially for content management software, where a number of new offers are likely to develop for management of content over the Internet, the hardware manufacturers are already relatively consolidated, with a limited number of niche players.
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The content management activity largely corresponds to a sub-segment of the larger markets that directly corresponds to the internalized broadcast needs of TV channels and pay-TV services (cable, satellite, IPTV).
R&D centres and institutions
R&D is expected to be shared with general R&D for broadcast and network solutions, and is consequently include in previous sections focused on TV distribution
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2.6 Mobile Entertainment
The macro-segment comprises all services geared to deliver entertainment contents directly by satellite to individuals while they are in movement for personal and professional reasons.
It can be subdivided into three market segment with distinctive features in terms of contents and nature of terminals, principally.
2.6.1 DIGITAL AUDIO BROADCASTING
Digital audio broadcasting (DAB) is a new market for satellite technology with three companies operating vertically proprietary satellite systems, two in the US (XM Satellite Radio and Sirius Satellite Radio) and one in Asia & Africa (WorldSpace). Customers Success of digital audio broadcasting was rapid in the US as the two broadcasters had together 9.3 million subscribers at YE 2005, i.e. five years after service launch. The two US broadcasters launched service in Canada in 2006. Europe, a large media and entertainment market, is not yet served by a satellite DAB solution, and several projects are under study, of which one by WorldSpace. Most of the subscribers are vehicle drivers who benefit from numerous commercial-free digital radio channels while traveling across the US. Households also subscribe to receive digital radio they can not get terrestrially. Key success factors in the US have been 1) exclusive agreement for terminal OEM by car manufacturers, 2) exclusive contents from right holders (sports, TV stars), and 3) terrestrial repeaters to better serve urban areas. Suppliers
Market segmentation for mobile entertainment
Digital audio broadcasting Broadcasting of digital pay radio services to cars and households equipped with satellite receivers
Digital multimedia broadcastingBroadcasting of digital pay radio, video and data services to individuals, car and households equipped with satellite receivers
In-flight service High-speed data connectivity and live TV to individuals while traveling by planes equipped with satellite receivers
A rapid success of DAB in the US
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2.6.2 DIGITAL MULTIMEDIA BROADCASTING
Digital multimedia broadcasting is an emerging market for satellite technology with only two companies providing services in Korea and Japan, from a single satellite launched in 2004.
Customers
Less than one year after launch, one company had 500,000 subscribers. The company expects to double its subscriber base in 2006 with real time broadcasting of sport events, such as the World Football Cup. The broadcaster expects 5 million subscribers by 2008.
Suppliers
The two providers sell packages that include predominantly radio channels completed by video channels and data channels. The activation fee is $20 and the monthly subscriber fee $13. They sell directly to consumers equipped with satellite receivers in their automobiles, trucks, homes, offices and in their mobile and portable devices. To permit reception in shaded areas, about 8,000 terrestrial repeaters have been installed in Korea at a cost of $350 million. The hybrid broadcasting infrastructure allows a large coverage of the country with a very good indoor and outdoor signal quality.
In Japan, two companies developed the first cellular phone with S-DMB capability to be available on the market by mid-year 2006.
2.6.3 IN-FLIGHT PASSENGER SERVICES
In-flight passenger services are an emerging market for satellite technology. The first high-speed connectivity service was launched in May 2004, and is currently offered on more than 180 routes daily
Sample of market players for DAB
Category of suppliers World Europe & Canada (including Eastern Europe)
Service providers 2 companies in the US 3 companies in Europe
Hardware/Software providers
3 companies in the US, 3 companies in Japan
R&D Centres and laboratories
1 R&D organisation the US 4 R&D organisations
S-DMB, only an Asian story for the time being
From in-flight high-speed connectivity to in-flight live TV
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worldwide by 12 commercial airliners with prices starting at US$9.95. A competitor has just selected the broadband service of a major and Thales’s satellite communication system for its in-flight mobile phone voice an data service.
In January, 2006, two airlines began offering four channels of live TV to passengers’ laptops on aircraft. This application service also permitted the first transcontinental flight where mobile video gamers held real-time matches in the air. The same application has selected a national telecom mobile satellite communication operator to offer its high-speed connectivity service to the commercial shipping industry globally. The maritime service will also include live TV.
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3 OVERVIEW OF MARKET SEGMENTS: SATELLITE NAVIGATION
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3.1 Consumer Services
The consumer services macro- segment is characterised by the purchasing decision being made by the end-user.
Products include services, specialist GPS receivers and specific content, such as topographic maps. Consumers are more price-sensitive than many other markets, but the volume of sales can be extremely high for market leaders. Note that the private road user is included in the road user macro-segment.
3.1.1 PERSONAL LBS
Applications relevant to users in this segment include:
• Maps and directions to place of interest.
• Concierge services (find nearest).
• Finding peers in local vicinity.
• Access real-time schedules of public transport.
• Find travel disruptions.
• Gaming interaction with local peers.
• Track people at risk (elderly and children).
The content is normally downloaded from a remote ASP (application service provider) with the handset acting as a very thin client. In the early stages of LBS, the MNOs acted as the ASP for many applications, but now there are many more independent ASPs. However, the customer relationship is still owned by the MNO. As users migrate from GSM to
Market segmentation for Consumer Location Based Services
Personal LBS Individuals acquiring information with a location context.
Outdoor recreation Hikers, cyclists, skiers.
Leisure vessels Private unregulated leisure craft, including yachts.
General aviation Owner-operated micro-light, hang-gliders, balloons, fixed-wing and rotary aircraft.
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3G services, the user experience will improve with faster services and more flexible content.
The main trend is the improvement in location accuracy and its availability in difficult environments, such as indoors or in urban canyons. Initially, location was determined by cell-ID with accuracy levels of a few hundred metres or more. A major limitation with GPS technology is the time to first fix (TTFF) when the phone is switched-on in an indoor or urban canyon environment. Many MNOs now use A-GPS (assisted GPS) to reduce TTFF from 30-60 seconds down to 5 seconds.
After many false dawns, it now appears that 2006 could herald the mass adoption of personal LBS applications
Customers
This market segment has, by definition, only one type of customer, that of individual consumer. Consumers range from parents purchasing phones to keep track of children, elderly people requiring emergency assistance services to the general public who use their mobile phones more and more to locate services and facilities close to their location.
In Asia (Japan and S Korea), consumers are more willing to pay for high-end handsets and GPS is common-place. In the USA, the mandatory introduction of E-911 spurred the development of much more accurate location methods, such as OTDOA (Observed Time of Difference of Arrival) or the incorporation of GPS chipsets. In Europe, consumers are reluctant to pay the full price for a handset and so are frequently supplied a handset for a greatly reduced price by the MNOs (mobile network operators) in return for agreeing to a 12-month contract. Hence the MNOs assert a more influential role in the European market and, to keep costs low, there has been slower introduction of GPS-enable phones in Europe than in the technology-fashionable Asian market (Japan and Korea).
Suppliers
Globally, the supply-side of the personal LBS market is dominated by the mobile telephone manufacturers, and most now offer a handset with GPS capability, and many other high-end handsets can use blue-tooth plug-in modules. Since the leading seven handset manufacturers co-own
Typology of Customers for Personal LBS
Consumer Parents Elderly patients General public
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and share the Symbian operating system (OS), there are many GPS applications which work with this OS (70% of smart phones operate on Symbian OS).
In Europe, the MNOs were instrumental in the introduction of LBS, often imposing proprietary solutions. Now two industrial alliances are introducing standards to exploit GPS. MNOs will typically own the customer relationship.
Many MNOs now use a mixture of their own content and that provided by third parties. Content aggregators supply services to many MNOs. Further specialisation within the supply chain leads to map providers.
The GPS hardware manufacturers are almost exclusively US with few dominant suppliers
3.1.2 OUTDOOR RECREATION
Many of the applications are superficially the same as Personal LBS. However, there is an assumption that there will be no connectivity to a network. This results in the essential content being stored on the device. Users also require content which is more specialised in nature with digital terrain maps being much more detailed than the street maps used by personal LBS applications.
Customers
Demand for specialist outdoor recreation devices comes from hikers, cyclists, skiers, horse-riders, hunters and others. This user group recognizes the safety benefits of electronic navigation devices. Users are therefore prepared to pay more (typically up to €200) for a specialist device that is reliable, has ergonomic form factor, low weight, good battery life, rugged, water-resistance and good display
.
Typology of Customers for Outdoor Recreation
Water- activities Diving Water-skiing
Wilderness Cross-country skiing Hiking Mountain running
Route-finding in difficult terrain
Horse-riding Orienteering Geo-caching
The LBS market is dominated by the mobile telephone manufacturers
Users recognise the safety benefits of GPS and demand rugged equipment
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Suppliers
The supply side of the outdoor recreation market is driven by a small number of product and terminal suppliers. The two dominant suppliers manufacture both GPS chipsets and the terminals. Today, there is little or no independent service value chain other than value added after-market products sold through the terminal suppliers themselves.
3.1.3 LEISURE VESSELS
This user group consists of unregulated leisure craft. The craft may be used on lakes, inland waterways or coastal and offshore environments, with yachts representing approximately 65% of the total user group. Depending upon the use of the vessel, the owner may have requirements for navigation and for communicating their position with other users and waterway authorities. For example, along major waterways within the EU, vessel tracking systems are being trialled. This requires the transmission of vessel information from ship to shore, together with positioning data.
Customers
This user group consists of recreational yachters, boaters and fishing vessels. They are not regulated (<500 tonnes) and may not have to comply with SOLAS (Safety Of Life At Sea) regulations which require GPS location beacons in case of emergency. There is a wide range of installed equipment levels, from hand-held devices to complex integrated systems. In many cases the cost of terminal devices may be only a small percentage of the value of the vessel, and so there is less price pressure in this segment. Competing against, or complementary to, satellite navigation are well-established navigation methods such as chart-plotters and Loran.
Typology of Customers for Leisure Vessels
Sailing Open sea Coastal Waterway
Fishing Open sea Lake
Water-sports Diving
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Suppliers
3.1.4 GENERAL AVIATION
Navigation equipment requirements vary dependent upon whether the aircraft is flying under IFR (Instrument Flight Rules) or only VFR (Visual Flight Rules), although there are no regulations requiring the carriage of GPS equipment. However, many recreational pilots use GPS devices as a pilot’s aid. These devices range from handheld navigation devices to complex systems integrated into the flight management systems (FMS).
Any system that is integrated into an aircraft’s FMS has to comply with MOPS (Minimum Operational Performance Standards) and MASPS (Minimum Aviation System Performance Standards), which are applied to avionics development and certification. This greatly increases the cost of such terminals, and is only offered by specialist avionics manufacturers.
Customers
This user group consists of owner-operated micro-lights, hang-gliders, balloons, aircraft and helicopters. The options for equipment has some reliance upon the weight of the aircraft and whether it can power large navigation systems. For example, a micro-light or hang-glider pilot may carry a handheld, battery powered device to assist in navigation.
Suppliers
The supply chain is divided into the device manufacturers and the database providers.
Sample of market players for Leisure Vessels
Category of suppliers World Europe & Canada (including Eastern Europe)
Terminal devices 4 companies in US 3 companies in Japan 3 companies in Europe
Typology of Customers for General Aviation
Powered aircraft Fixed-wing aircraft Helicopters
Unpowered aircraft Hang-gliders Gliders Balloons
There are no regulations requiring the carriage of GPS, but it is used extensively as a pilot aid
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Sample of market players for General Aviation
Category of suppliers World Europe & Canada (including Eastern Europe)
Terminal devices, chipset, content
3 companies in the US Septentrio
Database 1 company in the US 1 company in Europe
R&D 1 R&D organisation in the US 4 R&D organisations in Europe
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3.2 Road Applications
This segment contains elements from the consumer, transport, professional and government segments. The justification for grouping road applications under a combined segment is that they share similar value chains and service enablers.
The road transport market is very significant due to the very large numbers of vehicles in operation. It is convenient to categorise the road vehicles into the following groups:
• Private cars • Fleet cars (rental and large organisations) • LCV (light commercial vehicles) • HGV (heavy good vehicles)
A key enabler of road-based location services is eCall. With the aim of saving 2,000 lives per year, the EU is calling for all new vehicles manufactured from 2009 onwards to have the capability in the event of an accident to make an emergency E112 call and provide accurate location information without any driver intervention. This will result in every new vehicle having knowledge of its location and a method of communication, which can be exploited by other on-board systems.
3.2.1 TELEMATICS AND ADAS
Telematics is the combination of location technology and mobile communications. As congestion grows on Europe’s roads, drivers are
Table 8: Market segmentation for Road Applications
Telematics and ADAS Combination of computing and telecommunications on-board vehicles. ADAS – Advanced Driver Assistance Systems.
Fleet management Monitoring and control of goods vehicles and rental car fleets. Note that the command and control of emergency services vehicles is covered in the government section.
Traffic management Road tolling, congestion control.
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increasingly looking to telematics devices for applications such as traffic congestion warnings and re-routing to avoid congestion and road-works.
In-car navigation systems were traditionally reserved as expensive options offered on expensive brands of cars. However, Christmas 2005 saw a huge demand for navigation devices in the after-market. As a result, OEM GPS navigation solutions are being offered as standard fit on many more models.
A second area of telematics activity is the insurance-per-km trial schemes.
ADAS applications are under active development across Europe, including automatic lane departure warning, autonomous cruise control, stop and go automation and traffic sign assistance. Other projects include the presentation of safety-related information to drivers, such as the Speed Alert initiative which is working to progress a common European solution for speed limit communication. Most of these use GPS to define location and velocity.
Customers
All types of road users use telematics systems, although for some this may be incorporated into a fleet management system (see next section). For example, emergency services vehicles, delivery vehicles, taxis and buses are often equipped with a telematics device.
Suppliers
The hardware supply side now includes both the traditional OEM (original equipment manufacturer) supply route, and an alternative value chain, independent from the vehicle, through the sale of PDAs and other devices with on-board application software. This reflects a closer convergence with the consumer mobile industry and a reduced dependency upon vehicle manufacturers.
Typology of Customers for Telematics
Private drivers Personal route finding in cars Congestion avoidance
Passenger vehicles Taxis Buses Coaches
Goods vehicles Couriers Local delivery vehicles National/international heavy goods vehicles
The after market for in-car navigation has exploded over the last 12 months and is no longer the preserve of luxury brands
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Large motoring organizations are also leading traffic information providers. They have sufficient market presence to greatly influence the market and, in particular, the choice of communications network.
High quality maps are essential to this application, and the competitors are racing to increase their coverage of Eastern Europe.
3.2.2 FLEET MANAGEMENT
Fleet management systems can be as simple as interactive position reporting system to a complex system autonomously relaying telemetry on the status of loads. Functions can include vehicle location, driver communications, documentation for border security, driver adherence to rest regulations, theft tracking and remote maintenance reporting.
Purchasing decisions for new technology will normally be made by individual fleet organisations purely on the basis of operational benefit. The primary user of fleet management applications is not the driver but the central control centre where tasking decisions are based upon the vehicle status and location data.
Customers
This user group consists of a wide variety of organisations ranging from small local companies to international fleets (e.g. car hire companies, heavy goods fleets, package delivery, buses, taxis and emergency services). For some operators the application is critical to the business. However, some 98% of HGV operators are small and medium enterprises, with 30% having less than 10 employees. These operators will not benefit as much from fleet management applications as their larger competitors.
As an example, public transport operates within a certain area (typically urban) and to a regular schedule. Operators need to be able to locate their assets, interface with traffic control systems (eg: traffic lights at bus lanes), respond to on-request stops, provide passenger information and to synchronise with multi-modal transport systems. In London, over 7,000 buses use GPS to report their position to a central operations centre.
A highly fragmented market with many bespoke systems. ISO standards and convergence could lead to market consolidation
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Suppliers
The competition amongst terminal suppliers and service providers is fierce. The market for telematics services, vehicle tracking applications and GPS receivers is mature despite the fact that its use cannot yet be considered widespread. The choice of solution is often therefore driven by cost as the main differentiator, given the difficult economics in this competitive user group.
The market is highly fragmented, both in terms of user groups and service providers. This has led to a large number of highly customised products from a large number of suppliers. The user relationship is owned either by service providers or mobile operators themselves. To help overcome this, ISO Technical Committee 204 has developed standards relating to ITS (intelligent transportation systems).
Some convergence with consumer devices will lower the entry price for fleet management systems, so stimulating the market further for smaller operators. At the higher end, the complexity of the terminals and applications is set to increase as vehicle manufacturers increase the amount of telematic data available.
3.2.3 TRAFFIC MANAGEMENT
The introduction of road charging is often politically difficult, and there has been a shift in emphasis from the pricing of major highways to the use of road charging as a congestion control mechanism within large conurbations. Road traffic management applications are relatively immature, and many of today’s road pricing and tolling applications throughout Europe are largely based either upon microwave tags or number plate recognition. Whilst much is planned for the future use of satellite navigation for such applications, no such schemes have yet to materialise on a widespread basis.
Typology of Customers for Fleet Management
Passenger services Taxis Buses
Goods vehicles Service vehicles (light goods vehicles) Freight vehicles (heavy goods vehicles)
Rental cars Hire car companies dispatchers
Emergency services Police Fire Ambulance
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Customers
The market fragmentation and trend of introducing schemes for conurbations, has led to political responsibility shifting from central to local government.
Suppliers
Today’s value chain is centred upon the after-market sale of microwave tags to support local/regional road tolling. In the future, the contracts placed by national governments in respect of these services are likely to be of significant value and incur substantial development costs. This means that large system integrators will be required to design, build and implement bespoke solutions in partnership with consumer and commercial vehicle manufacturers. These are likely to include large multi-nationals and the Mobile Network Operators (MNOs).
Typology of Customers for Traffic Management
National motorways National government Toll-road operators
City congestion schemes
City authorities Conurbations
Traffic services organizations
Traffic reporting organizations obtaining real-time data from systems
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3.3 Professional
The professional market is characterised by the purchasing decision being made on the basis of operational benefit or cost reduction. This market also tends to have demanding requirements which may include accuracy, integrity, availability or support.
3.3.1 PRECISION AGRICULTURE AND FISHERIES
Precision agriculture is highly localised soil and crop management, tailored to fit the exact conditions found in each given area of land. Precision agriculture includes farm machines, manned or robotic, that are capable of being controlled by intelligent tracking systems or can record their operations against time and position.
Customers
The agriculture sector is made up of farms, mostly family owned, but with a number owned by supermarket chains and animal feed manufacturers. Farmers have to comply with stringent regulations, such as EU Common Agriculture Policy (CAP) and ever more rigorous control of crop spraying and GM crops. Satellite navigation systems can assist in demonstrating compliance to these regulations.
Table 9: Market segmentation for Professional
Precision agriculture and fisheries Precision agriculture and commercial fishing, including regulations pertaining to these industries.
Surveying Construction, mapping, off-shore surveying.
Workforce and asset management Lone worker, security of assets.
Time and frequency dissemination Timing for power distribution, telecom systems, computer networks, financial and legal time-stamping.
Scientific Geologists, sociologists.
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Commercial fishing operators usually wish to log where shoals of fish were found so that the vessel can return there on its next journey. Also, if the vessel operates as part of larger group then the fish conditions can be communicated to other vessels.
Fishing vessels are required to report when they put to sea as well as their fishing records. This fish traceability, or Chain of Custody, is to meet food quality and safety standards.
Suppliers
Manufacturers of large agricultural machinery are the major players in this sector. Auto steerage machinery is being developed for the future, with fully robotic machines introduced by 2010. Many precision farming applications require accurate positioning and therefore augmentation of GPS. This augmentation is either provided via satellite or ground based networks from commercial providers. Stand-alone terminals and yield mapping systems are offered on the market by several suppliers and are restricted to the ‘aftermarket’. However, these suppliers play only a minor role in the market.
The fishing value chain is a relatively simple one where the only actors in the supply chain are system suppliers. The provision of real time information or geo-content today remains limited to a very small number of vessels. In the worldwide market, there are less than 10 companies offering GPS-based navigation systems that today make up the entire ‘value chain’.
3.3.2 SURVEYING
Like agriculture, the surveying market is determined by a very small number of key players and major strategic alliances have already been established. The stringent user requirements of these applications demand a higher level of technical performance and therefore equipment
Sample of market players for Agriculture and Fisheries
Category of suppliers World Europe & Canada (including Eastern Europe)
Agricultural machine OEMs 7 companies in the US 1 company in Europe
Augmentation services 1 company in Japan 1 company in Europe1 company in Europe
Fishing system 2 companies in Japan 1 company in the US
2 companies in Europe
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price. Whilst reduced prices would stimulate market growth, significant drops in price are not anticipated in the short to medium term.
Customers
Surveying includes mapping and land survey for registries, positioning for civil engineering, seismic monitoring, dredging, oil exploration and maritime and hydrographic surveys for port, coastal and lighthouse authorities.
Suppliers
The high-end surveying market is dominated by two companies of the US and Switzerland. Both companies have merged or acquired companies with expertise in areas such as R&D, design software, chipset manufacture, 3D laser mapping, imaging and GIS application software. There are some small suppliers of traditional systems or software solutions operate as value adding resellers or distributors, but that have little influence on market development.
R&D is supported by universities in Europe, Canada and Japan.
3.3.3 WORKFORCE AND ASSET MANAGEMENT
The lone worker segment covers the monitoring and protection of lone workers in potentially dangerous or unsafe environment. Some services already exist but there is little accurate positioning or relaying of status of the worker to the monitoring centre. Most information is relayed verbally. This application will typically be bundled with non safety critical services, such as workforce management.
Typology of Customers for Surveying
Construction industry Civil engineering Pipe laying
Off-shore Oil platform positioning over well-head Submarine cable laying
Coastal Dredging Beacon siting
Naional mapping agencies
Cadastral surveying Partitioning of land
Specialist high performance systems dominated by two companies
An employer’s duty of care to workers will force the adoption of technological solutions
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The main constituents of the asset management user group are freight containers, trailers and plant and transportable machinery. In particular, the management of these assets is most demanding at sea-ports, airports and rail terminals. Anti-theft is also one of the benefits of asset management.
There is potentially a huge market, but only if the unit installation cost and subscriptions are low and the hardware is reliable. The terminal device would need to be secure, have an autonomous power source and some intelligence as to when report messages are sent.
Customers
Customers for workforce management include the railway maintainers, social workers and the police. Asset management users include hauliers, shipping companies, train operators, airlines and other large organisations.
Suppliers
There are several US and European suppliers of tracking devices systems. Few European universities conduct R&D.
3.3.4 TIME AND FREQUENCY DISSEMINATION
GNSS offers a world-wide timing reference, measurable to the sub-micro second level that is arguably more valuable than the positioning service.
GPS system time can be extracted by all GPS devices and is exploited by NTS (Network Time Servers), produced by a small number of specialist manufacturers. With the introduction of Galileo Commercial Service, and a timing standard traceable back to an institutional reference time, GNSS timing is likely to supplant many existing terrestrial systems.
Customers
GPS timing is widely used by the utility industry for phasing of electrical distribution networks and the synchronisation of telecommunication networks. Broadcast systems also require highly stable timing sources to avoid interference. Most financial transactions are time-stamped (eg: cash withdrawals from ATM machines and share purchases), with the majority of systems synchronised to GPS system time. Other applications include cryptography.
As more telecoms operators move to high-speed backbones the need for stable timing is vital
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Suppliers
This niche market is served by several US and European companies.
3.3.5 SCIENTIFIC
More and more researchers are exploiting the precision of satellite navigation in fields as diverse as geology (the rise of mountains and plate tectonics) to sociologists tracking the movements of individuals. The requirements of this group are also very diverse and so there are a number of applicable value chains.
GPS is now very familiar to the academic community and generally very cheap to use within experiments. Its use as a research tool will continue to spread and will soon become ubiquitous.
Typology of Customers for Time and Frequency Dissemination
Broadcast TV and radio Mobile phone networks Satellite control ground stations
Network timing Banking systems Computer networks Telecoms infrastructure
Time transfer National metrological institutes
Utilities Power distribution
Sample of market players for Time Dissemination
Category of suppliers World Europe & Canada (including Eastern Europe)
Time / frequency reference systems 3 companies in the US
Odetics (Can) Deutsche Telecom (DE) Symmetricon (UK) National Physical Laboratory (UK)
Time transfer modems 3 companies in the US
Temex (Fr) Satre (DE) Time Tech (DE) Gorgy (Fr) Kayser-Threde (DE) Chronos (UK)
R&D National and international R&D institutions National Metrology Institutes
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This is a general field and no specific customers, suppliers or issues are identified.
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3.4 Government
This macro- segment is characterised by very large, multi- million € contracts undertaken on behalf of a nation (or EU) and spanning several years. Such contracts often set de facto standards which are then used in smaller projects.
This segment also includes regional and local projects undertaken by civil authorities and military applications.
3.4.1 PUBLIC SAFETY
Public safety applications include the management of the emergency services, offender tagging, homeland security and border control.
With the problem of overcrowding in prisons, there is a drive to release prisoners under licence. To help alleviate public concern, many offenders are being tagged with GPS location devices. However, it should be noted that these offenders would have been released into the community even if they were not tagged. There are genuine public concerns about such schemes and any offence committed by a tagged offender will create much political debate. The pilot schemes are being operated by the same service providers who operate prisons and escort services for central government.
Homeland security and border security have increased in importance since the terrorist attacks of 11th September 2001. Many more location and tracking devices are being used by the police and security forces in their fight against organised crime and terrorism.
Customers
Fire and ambulances operate from fixed stations and return to these stations upon completion of a task. Nearly all such vehicles use GPS for in-vehicle navigation, whilst 35% use GPS for fleet management purposes by regional control centres. Police assets generally roam their
Market segmentation for Government
Public safety Emergency services, offender tagging, homeland security, border security.
Military Logistics, reconnaissance, precision guided munitions.
Since 9/11, Governments have had to demonstrate that they are actively improving the capabilities of the emergency services
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patrol area and respond to tasking from the control centre as required. Many of the 4 million emergency service officers are also tracked when they are outside of their vehicles.
Suppliers
To fully exploit the benefits offered by the introduction of E112 eCall in Europe, emergency services will need to radically upgrade their infrastructure and procedures. Today, the specific needs of this user group cannot often be met by COTS products thereby requiring bespoke integrated solutions. Therefore the system integrator remains the most likely to ‘own’ the customer relationship in the medium term. Such suppliers will be consortiums comprising of the network operators and control room system integrators, such as Siemens VDO and O2 Airwave.
3.4.2 MILITARY
Customers
The GPS constellation was developed for the military and the system has been optimised for military needs. Applications range from logistics, ingress and egress planning, route finding, strategic reconnaissance and precision guided munitions.
Typology of Customers for Public Safety
Emergency services Police, fire, ambulance Disaster management agencies
Border control Border police Customs – tracking of consignments
Typology of Customers for Military
Smart munitions Cruise missiles (air, sea, submarine launched) Guided artillery
Vehicle navigation Aircraft autopilot Ship plotters Tank guidance
Logistics Tracking of munitions, equipment and personnel
Assault Route-planning and guidance during operations Target locating
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Suppliers
The system manufacturers and integrators are the dominant force in the value chain. There is ever increasing demand for remote operation of weapon systems and use of precision guided devices to reduce both military and civilian casualties. Three system integrators dominate the European market.
Sample of market players for Military
Category of suppliers World Europe & Canada (including Eastern Europe)
System Integrators
Boeing Lockheed General Dynamics Northrop Grumman
BAE Systems (UK) EADS (EU) Thales (Fr)
System manufacturersHoneywell Raytheon Rockwell Collins
Alcatel (Fr) EADS (EU) BAE Systems (UK)
R&D US DoD
Military University of Technology (PL) DLR (DE) Qinetiq (UK)
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3.5 Transport
Transport covers commercial operators carrying either passenger and/or freight. Road hauliers and buses are covered under the Road Applications macrosegment.
3.5.1 DANGEROUS GOODS
Currently 8% of goods vehicles carry dangerous chemicals. As a consequence of the 9th September 2001 terrorist attacks, there is new UN legislation that all dangerous goods shall be tracked (‘European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR)). At present it is unclear as to which items on the UN’s list of High Consequence Dangerous Goods (HCDG) will be required to be monitored. The UN model rule states that when appropriate and already fitted, the use of vehicle telemetry or other tracking methods or devices will be used to track HCDG. Therefore, the vehicle operators will be strongly encouraged to employ high integrity tracking applications.
The transport of nuclear material will not be included in this study because of its highly regulated nature, its very low volume and systems are already established.
Many of the fleet management system providers are also active in this value chain. However, in the future the telemetry may not only be required by the fleet operator but also a centralised monitoring agency responsible for the security of dangerous goods.
Table 11: Market segmentation for Transport
Dangerous goods Chemical distribution.
Rail Scheduling and signalling.
Maritime Automatic Identification System, Global Maritime Distress System.
Commercial aviation Navigation aids, airline operations.
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3.5.2 RAIL
The most immediate application of satellite navigation in the rail industry is for fleet management of trains and rolling stock. It would also provide a real-time schedule to both controllers and passengers.
In the longer term, satellite navigation may be used to replace the safety critical track-side signalling infrastructure. More intelligence would be placed on-board the train, which would then transmit its position using GSM-R (a GSM channel dedicated to rail operations). GPS alone would not satisfy the safety case in terms of integrity, and so this is not likely to be introduced until EGNOS is fully operational and even then inertial navigation systems would still need to be used as a backup when trains pass through cuttings and tunnels.
Customers
The strongest opportunity for such a system is in Eastern Europe, where there is not so much existing infrastructure and there is a real effort to improve safety standards.
Suppliers
The value chain will continue to be dominated by the existing signalling and track-side infrastructure suppliers.
Typology of Customers for Rail
Train management Train operating companies Multi-modal transport operators Track network operators and maintainers
Wagon management Train operating companies Hauliers
Passenger information Public Public transport operators
Eastern European states can jump a whole generation of technology
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3.5.3 MARITIME
The Automatic Identification System (AIS) is mandatory for regulated vessels, although not all vessels are yet fully equipped. AIS is not a fleet management application, but the requirements of the authorities are similar.
Two main regulatory requirements drive the use and installation of GPS on board regulated vessels, namely LRIT (Long Range Identification and Tracking) and GMDSS (Global Maritime Distress and Safety System). The main driver for LRIT is political and in particular for the purpose of supporting a nation’s homeland security. LRIT is not yet mandated; however the United States declared that its target was to see LRIT operational globally by 31 December 2005. All shipping that trades with North America and Canada will have to have an LRIT capability. The US Coast guard are pushing hardest to have a LRIT system in place as soon as practicable. Already, any ship that gives the mandatory 96 hours’ notice of intention to enter a US port is beginning to be tracked. The IMO (International Maritime Organisation) is in the process of formulating LRIT regulations.
The primary purpose of GMDSS is to automate and improve emergency communications for the world's shipping industry. GMDSS alerts Search and Rescue (SAR) authorities ashore and vessels in the vicinity of a distress so they can assist in a coordinated search and rescue operation with minimum delay.
Customers
Every ship subject to the communications act or the safety convention must comply with GMDSS. These vessels include all passenger ships regardless of size and cargo ships of 300 gross tons and upward.
Sample of market players for Rail
Category of suppliers World Europe & Canada (including Eastern Europe)
Telematics – train supervision 2 companies in the US 4 European companies
Wagon tracking 1 company in the US 2 European companies
R&D 1 R&D organization in the US
2 European companies 4 European R&D organisations
LRIT and GMDSS will be mandatory for all large vessels
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Ship owners need to track their vessels in order to conduct fleet management and provide additional tasking.
Suppliers
The maritime value chain is still relatively simple. In the worldwide market, there are less than ten companies offering GPS-based navigation systems that today make up the entire ‘value chain’. GPS-based navigation was introduced by most of these companies to extend the legacy product portfolio based upon alternative means of navigation. These suppliers include several European companies.
3.5.4 COMMERCIAL AVIATION
As stated under the General Aviation section, there is no requirement for carriage of GPS, even for commercial airlines operating under IFR. In most regions IFR navigation is performed with reference to terrestrial aids, such as DME (distance measurement equipment) and VOR (VHF omni-directional range). Indeed, there is a requirement to have the aircraft’s avionics suite re-certified if a GPS receiver has been integrated into the flight management system, at a cost of up to €100K.
Customers
Typology of Customers for Maritime
Distress and AIS Vessels > 500 tonnes Passenger carrying vesels
Fleet owners Tracking and tasking of ships
Crew Aid to navigation to avoid danger and to maintain route
Sample of market players for Maritime
Category of suppliers World Europe & Canada (including Eastern Europe)
Bridge navigation systems
4 companies in the US 3 companies in Japan 4 companies in Europe
Distress beacons 2 companies in the US 1 company in Europe
R&D 1 R&D organization in the US 1 R&D organization in Japan
3 R&D organization in Europe 1 company in Europe Maritime Agencies
There are some strong disincentives for airlines to re-equip with GNSS
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Only for aircraft operating in sectors in which there is an operational advantage for free flight, such as in some regions of North America and Australia, or in areas with unreliable ground aids, such as Africa, is there a case for GPS. In the congested European sector the equipage rate is very low (less than 33%).
Other than for air navigation purposed, there has been some introduction of GPS to support airline operations. The airline operations centre needs to have accurate information on the actual location and status of an aircraft and this is referred to as AOC (airline operations communications). Some of this is autonomous telemetry not requiring pilot intervention.
Suppliers
The value chain is dominated by the large aircraft manufacturers and the large avionic system manufacturers. The requirement to demonstrate compliance with MOPS and MASPS places a large barrier to entry for any new entrant.
Typology of Customers for Commercial Aviation
Airliners To fly efficient routes to minimize fuel costs To maintain safety where ground infrastructure is unreliable
Air traffic Possible option to reduce reliance on expensive ground-based navigation systems
Sample of market players for Commercial Aviation
Category of suppliers World Europe & Canada (including Eastern Europe)
Aircraft manufacturers 1 company in the US 1 company in Brazil
1 company in Europe Bombardier (Can)
Flight management systems 2 companies in the US 2 companies in Europe
Air Traffic Management Systems 2 companies in the US 3 companies in Europe
R&D
Several National Aviation Authorities 1R&D organisation in the US 1 company in the US
2 R&D organizations in Europe 2 companies in Europe
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4 OVERVIEW OF MARKET SEGMENTS: EARTH OBSERVATION
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4.1 Natural Resource Monitoring
The inventory, exploration, monitoring and management of natural resources is one of the largest EO markets at present, and certainly the most mature, when compared to many of the other applications.
4.1.1 WATER RESOURCES
Water is an increasingly scarce resource, and it is therefore an important market segment for service providers who provide information to the stakeholders on: state of surface and ground water from both a quantitative and qualitative viewpoint, as well as on seasonal and yearly fluctuations.
There are three main applications of EO data in this sector:
1) Drought monitoring (not enough water)
2) Flood monitoring (too much water)
3) Water quality and supply (pollution, irrigation, etc.)
The limitation in the value added services sector are partly due to fact that many types of EO data are required simultaneously (thermal IR, SAR, optical). In terms of research and new trends, there are an increasing number of small value-adding companies (3-15 persons) developing hydrological models, assimilating data sets from EO and meteorological satellites with in-situ data sources.
Market segmentation for Natural Resources Management
Water resources Both surface and subsurface water supplies
Agriculture Crop production, yield prediction, precision agriculture, agricultural monitoring during growing season
Energy and mineral resources Oil and gas exploration, environmental (pollution) monitoring of installations, mineral exploration, monitoring mine production
Forest resources Forest plantation monitoring, deforestation monitoring
Environment monitoring Biodiversity, eco-system studies, environmental pollution
NRM is most mature and well understood EO market segment
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Customers
Water resources are a rapidly growing market segment for EO service providers with an increasing demand from government agencies. Main customers include the European Commission, international organizations, national/local authorities in charge of water management and monitoring (water boards and authorities). Much of the use of EO data is done in-house by the Government Agencies.
Suppliers
There are some small, specialized companies offering EO Water resources services, plus a number of private specialized Engineering Consultancies.
In Europe it is mainly the large engineering consultancies who provide the information at present. Perhaps a European public/private partnership organization for EO water resource management should be considered, where the different stakeholders would actively promote the creation of a successful Pan European market in the EO water resources application systems, which could then be “exported” to rest of the world.
Research institutes undertake user/application R&D programs to develop new water services using EO data.
Typology of customers in Water Management
International / Intergovernmental Organisations
European Commission: Responsible for ensuring fresh water supplies to European citizens. International Agencies: As many river basins cross national boundaries (e.g. Danube basin, Mekong basin) international bodies monitor international agreements on water rights using EO data.
Public/Governmental bodies
Public Operational Administrations and Public National Administrations (Water Boards/Water Authorities): Monitoring (sub) watersheds, water quality, etc
Agro/Fish/forestry Agro Industry: Drought, flood monitoring of agricultural fields, irrigation supply
Water is becoming a scarce resource and needs EO for better management
European institutes among world leaders.
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4.1.2 AGRICULTURE
Worldwide, there is a need for up-to-date agricultural production information for food security and production monitoring. At the detailed level, EO is used for “Precision Agriculture”, to monitor, on either a daily, weekly or monthly basis, farm conditions, need for irrigation, need for fertilizer, etc.
Customers
This application addresses government and business customers of agricultural services.
Customers include government authorities who use annual/seasonal agricultural information in the framework of their regulation/monitoring production. In Europe, the European Union and national ministries of Agriculture are extensive users. Monitoring production in relation to European agricultural subsidies and other policies, such as Set-Aside Land, are carried out annually within each of the EU member States.
The commercial market is large with multinational food companies and farmers using EO data to
• to manage production: managing cropping patterns, inventorying crops, estimating yields and organizing harvesting, estimating irrigation requirements and assessing the impact of bad weather,
• annual crop forecasts (cereals, rice, etc), yield prediction and agricultural production forecasting,
• to manage farming practices at parcel level (precision farming)
Sample of main market players
Category of suppliers World Europe (including Eastern
Europe)
Service providers 2 companies in the US
6 companies in Europe 1 company in Canada
Software / imagery providers 1 company in the US 2 companies in Europe
R&D Centres and laboratories
2 R&D organisations in Australia 1 R&D organisation in China 1 R&D organisation in the US 1 R&D organisation in Africa
6 R&D organisations in Europe
EU Agricultural Policy is key issue in this sector.
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Suppliers
Annual crop surveys are carried out in all EU Member states using Earth Observation data, high-resolution satellite data and digital aerial photography. This application has spawned numerous small value-added companies throughout the European Union.
Several companies developing services, and software solutions are involved in agricultural production forecasting and precision farming. North American companies dominate the market thanks to a large customer base.
Service providers include general EO service providers and specialists who offer packaged and customized solutions to agriculture customers, including:
• Multi- resolution imagery suited to parcel checking and monitoring, integrated agriculture or agricultural statistics,
• Thematic maps and inventories of croplands, crop status bulletins, field survey support,
• Vegetation monitoring and estimation of acreages and yields, monitoring of parcels farmed under contract, production management support,
• Creation and revision of farmland parcel databases.
• training, technical support, hardware, software and technology transfer
Typology of customers in Agriculture
Public / Governmental bodies Public National Administrations: Ministries of Agriculture and related ministries
International Agencies European Commission Intergovernmental bodies
Agro/Fish/Forest Agro Industry: Food Companies for crop forecasting, early yield prediction stock market speculation Farming: Irrigation, fertilize needs, precision farming
Sample of main market players in Segment
Category of suppliers World Europe (including Eastern
Europe)
Service providers 5 companies in the US 1 company in Japan
6 companies in Europe 1 company in Canada
Hardware /software providers 4 companies in the US 3 companies in Europe
R&D Centres and laboratories
1 R&D institution in Australia 1 R&D institution in S. Africa 1 R&D institution in Japan
5 R&D institutions in Europe
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4.1.3 ENERGY AND MINERAL RESOURCES
With increasing oil prices, and instability of oil producing regions such as Middle East, Nigeria, there is a growing market for use of EO for exploration, monitoring production and environmental quality aspects.
With the rapid economic development of emerging economies such as China, India, Brazil, the demand for all types of mineral resources is increasing, pushing up stock prices, and thus stimulating use of EO to find more mineral resources.
EO data has proven itself to provide useful data for finding many types of mineral resources, such as: gold, copper/lead/zinc, coal, iron, diamonds, phosphates, as well as of course as a tool for oil/gas exploration.
Customers
Energy and mineral resources is basically a B-to-B market with institutional and corporate customers who use EO data (most of the time combined with other data sources) for finding new reserves, monitoring current production facilities and for environmental monitoring (pollution control).
Various national public organisations use EO for their survey and monitoring activities, including
• Government’s geological surveys,
• Ministry of mines, water and energy
• Highway authorities or departments
• Public utilities
Main industry users include oil and mining industries who use EO data for their exploration and exploitation activities, including
• Mining companies specializing in metals, non-metals, coal, etc.
• Geological exploration firms
• Oil and natural gas exploration and development companies
• Geophysical exploration firms
• Civil engineering firms
• Surveying and drilling companies etc
EO vital for mineral exploration.
Scarcity of oil resources spurring on use of EO.
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Suppliers
Several specialized value-adding companies are servicing these large customers. It includes engineering companies that provide engineering/consulting services to assist the energy sector in the management of their production and facilities.
These specialized service providers buy their data from traditional EO data providers, to which they add their specific expertise in multidisciplinary integrated consultancy services, research and development, and specific software tools. As a consequence, most of the R&D and software development is integrated in-house.
Several national R&D institutes develop new products and software. In addition, each country has a “Geological Survey” which is also involved in EO work in Europe and internationally.
4.1.4 FOREST RESOURCES
There are a number of key service sectors in this field, plus several rapidly rising EO research issues being addressed by research organizations around the world.
Typology of customers in Energy & Mineral Resources
Energy/Natural Resources Oil & Gas Industry: Searching for new reserves Coal & Mining Industry: Mineral exploration, mine management
Public Governmental Bodies
Local & Regional Government, Public National Administrations: Geological mapping, production/environmental monitoring Education/training & research communities: Universities and NGO’s are developing new techniques for finding minerals and for environmental protection
Sample of main market players in Energy and Mineral Resources
Category of suppliers World Europe & Canada
(including Eastern Europe)
Service providers
1 company in Australia 1 company in China 3 companies in the US
5 companies in Europe
Software and imagery providers 3 companies in the US 6 companies in Europe
R&D Centres and laboratories
1 R&D institution in Australia , 1 R&D institution in China 1 R&D institution in US 1 R&D institution in Japan
6 R&D institutions in Europe
Trend to hyperspectral sensors for mineral exploration becoming operational
Tropical forest monitoring needs “all weather” EO data
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From a commercial market point of view, one of the main operational applications is the monitoring and management of commercial forest plantations around the world.
A second important sector is monitoring and inventory of (tropical) deforestation. Here the need for temporal data for change detection is well served by EO data with its uniform and repetitive coverage. Especially SAR satellites have allowed this application to develop in the cloud covered tropical forest areas such as Brazil, central Africa and Indonesia.
A third emerging market is the detection and early warning/monitoring of forest fires.
Besides these three operational services, there are several emerging, promising research initiatives which may soon lead to set up of service providers. These include : Carbon sequestration (for verification of Kyoto Protocol) biomass monitoring, tree cadastres using high resolution satellite data with digital aerial imagery, and TROF (Tree Resources Outside the Forest) for semi arid areas such as SANEL.
Customers
Three categories of customers are concerned:
• On the one hand, commercial timber companies that exploit renewable forest plantations and make extensive use of RS/GIS technologies for the monitoring of their plantations,
• On the other hand, government and international organizations to assist in their environment policy and monitor deforestation. Organizations use services of EO value adding service providers. Forest administrations are also large users of satellite data in their daily work (for instance the Swedish Forest Administration).
• In Europe, the need for fast reporting of forest fires, especially in the Mediterranean countries (Portugal, Spain, southern France, Greece, etc.), is resulting in a growing market for EO forest fire detection/monitoring systems.
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Suppliers
The commercial timber companies do much of their work in-house, with their own EO trained forest image analysts. Consequently they buy data directly from data providers and do their own value adding activities. Stora Enso from Finland is one of the major players in Europe. The company provide paper, packaging and forest products as well as consultancy/engineering services to forestry companies via its EnsoMOSAIC software.
Some specialists have developed specific services towards the forestry sector by assisting users in imagery acquisition, processing, software development etc. Examples in Europe include NEO (the Netherlands).
Mainly commercial-off-the-shelf software such as ESRI ARCGis, and ERDAS are used. Some institute specialized in forestry develop new techniques of information extraction from EO data (e.g. IUFRO International Union of Forest Research Organizations).
There are an increasing number of small EO service providers developing new services for forest fire monitoring. The GMES Service Element on Forest Monitoring has numerous EO companies as well as national forest agencies and Research Institutes, plus consultants, acting as a team to convert this market segment into a truly operational/commercially viable EO service.
Typology of customers in Forest Resources
Agro/Fish / Forest Forest Industry: Selecting concession areas for plantations, monitoring forest stands, managing forest resources
International / Intergovernmental Organizations
Intergovernmental bodies: , World Commission on Forests and Sustainable Development, Intergovernmental Panel on Forests, Non Governmental organizations: Forum on Forests, environmental protection organizations
Public/Governmental Bodies Public operational services and Public national administrations: Forest Administrations, Forest Fire Fighting Agencies
Sample of main market players in Forest Resource
Category of suppliers World Europe & Canada
(including Eastern Europe)
Service providers Not identified 3 companies in Europe 1 company in Canada
Software and imagery providers 1 company in Japan 2 companies in the US
5 companies in Europe
R&D centres and institutions
1 international R&D organisation 2 R&D organisations in the US
5 R&D organisations in Europe
GMES Service Element advancing European expertise.
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4.1.5 ENVIRONMENT MONITORING
This market segment has two main elements, namely ecosystems (improving the management and protection of terrestrial, coastal and marine ecosystems), and Biodiversity (understanding, monitoring and conserving biodiversity)
Environment monitoring is essentially a government market, including non-governmental organisation (Green Peace), international organizations (UN, and Research community.
Suppliers include global service suppliers and specialized private and public entities.
The availability of data is one of the main issues in the sale and development of EO products and services. Services are internally complex, incorporating a wide range of data types, including data from non EO sources (e.g. field data, statistical data, etc.). Global coverage, on a weekly or 10-day cycle is required. Existing global EO systems such as NOAA-AVHRR and SPOT’s VEGETATION sensor cannot obtain cloud free data.
Sample of main market players in Environment Monitoring
Category of suppliers World Europe & Canada
(including Eastern Europe)
Service providers 6 international organisations 6 companies in Europe
Hardware/software providers 1 company in Japan 1 company in Russia 4 companies in Europe
R&D centres and institutions
4 international R&D organisations 1 R&D organisation in the US
5 R&D organisations in Europe
Climate change spurring use of EO for biodiversity
Climate change spurring use of EO for biodiversity
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4.2 Defence & Security
As a result of 9/11 and the growing importance of non-conventional threats to State sovereignty, national security is an emerging market for the use of Earth observation information.
Defence & Security encompasses various government responsibilities such as natural disaster prevention and recovery, large-scale emergency, travel & transportation, immigration & borders, public health, food security, and cyber threats. In most case, Earth observation information is combined with other satellite capabilities for navigation and communications and with non-space geospatial information in order to provide the public decision-makers with critical environmental and geospatial information.
Three segments have been defined that together embrace all defence & security-related applications of Earth observation.
In each of the three segments, the data products and services offered by the value added companies help final users and decision-makers to: • Monitor, plan and prepare for disasters and emergencies • Prepare response efforts for natural, terrorist and unintentional events • Analyze information and provide relevance • Provide for preventative action and timely response resulting in reduced consequences • Evaluate critical infrastructures • Monitor border and transportation activities • Actively support first responders, related military organizations, citizens and non government organizations • Support efficiency and options for recovery • Provide expertise
Market segmentation for Security
Homeland security / Law enforcement
monitoring of restricted areas and of borders, intelligence gathering on conflicts, terrorism, clandestine weapon
Humanitarian Relief Refugee crises, humanitarian de-mining, diseases (e.g. Avian Flu), food security
Disaster management Natural disasters (Earthquakes, hurricanes, ..) and man-made disasters (chemical/nuclear pollution,…)
Security in broadest sense is embracing EO.
Increased spatial resolution will continue to grow this segment
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4.2.1 HOMELAND SECURITY / LAW ENFORCEMENT
The creation of the Department of Homeland Security by the Bush Administration in 2002 and the adoption of the Global Monitoring for Environment & Security (GMES) program by Europe illustrate the growing interest of the governments for security issues.
By proving accurate and timely information, earth observation assets can support decision making from the routine situation monitoring, through the build-up to a potential crisis, to support for a crisis management operation. Space-based observation assets are mostly free from the restrictions of geography and sovereignty, and are therefore particularly useful in this context
Customers
The demand for satellite-based Earth observation services for homeland security is exclusively the fact from government agencies, both civilian and military and both national and multilateral who need
- to rapidly produce and distribute geospatial and intelligence information to an area of national or international interest
- prepare, simulate and assess missions in conditions close to the reality with 3D images
- ensure coherency of geographic data coming from different sources
- verify the enforcement of international treaties
The concept of security has evolved since the end of the Cold War, and the term “security” is now used in a variety of contexts. In the US, the term “Homeland” security is used for internal security issues. Within Europe (and in particular within GMES), the scope of security, and the role of EO is felt to contribute to the monitoring needs of the following policies:
- Prevention and responses to crisis related to natural and technological risks in Europe
- Humanitarian aid and international co-operation
- Conflict prevention including monitoring of compliance with treaties
- Surveillance of borders
- Law enforcement
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- Common Foreign and Security Policy and European Security and Defence Policy to support the missions outlined in Article 17.2 of the Treaty of the European Union (humanitarian and rescue tasks, peace keeping tasks and tasks of combat forces in crisis management including peacemaking).
Outside arm controls, the multiplication of international treaties and protocols require monitoring and verification, to which satellite Earth observation is an input. Examples include the Kyoto Protocol, and other environmental treaties on illegal fishing or ship discharges. Earth observation data can contribute to the ability of signatories to multilateral agreements to move from detecting problems to mitigating them in a wide range of activities: from monitoring wetlands and ensuring compliance with Kyoto Protocol emission targets to combating desertification and preserving World Heritage sites and protecting gorillas in east and central Africa.
The following organisations could be considered as potential users:
- Civil protection and search-and-rescue organisations within the borders or territorial waters of Europe for management of natural and technological risks.
- Military offices for management/prevention of conflicts overseas
- European institutions, government departments of EU or ESA Member States, international organisations and non-governmental organisations engaged in co-operation, humanitarian and development aid, as well as civilian crisis management outside Europe.
- The Council and, under the mandate of the Council, entities involved in the planning and conduct of civil and military crisis management operations.
Military customers are dominant through specialized departments or agencies that generally procure high resolution satellite data and 3D
Typology of customers in homeland security
Public / Governmental bodies
Defence: National intelligence agencies, military offices Public operational services: civil protection, police force Education, training & research: R&D Centres and Labs in US and EU
International/Intergovernmental organizations
Intergovernmental bodies: NATO, International Atomic Energy Agency (IAEA), CTBTO, IAEA UN Drug Control Program etc. European Commission: EUSC, EU-JRC-ISPA
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models from commercial providers in order to complement proprietary satellite systems.
.
Suppliers
Most of the work here is done by government (military) agencies, or by security-cleared value added companies (mainly in US). In Europe, there are very few companies working in the EO field for homeland security.
4.2.2 HUMANITARIAN RELIEF
To improve the effectiveness of aid requires increasing the quality and quantity of information available on regions outside Europe, both for those who need to decide rapidly whether to deploy resources and for those operating on the ground in remote areas with limited communications and poor infrastructure. In this context, satellite based imagery plays an increasing role, especially to provide a rapid update when existing maps are obsolete.
However, it should be borne in mind that satellite imagery has to be complemented by other topographic, socio-economic and statistical data in order to meet specific information demands.
Customers
The demand for satellite-based Earth observation services for the prevention and management of humanitarian crises principally come from governments through aid agencies and from non government organizations (NGO).
Earth observation data and services contribute principally to the monitoring of populations (refugees), and pandemic situation. For example, satellite data and processing is essential for spatial analysis for settlements and camps. Satellite imagery completed by airborne survey
Sample of market players for Homeland security
Category of suppliers World Europe & Canada (including Eastern Europe)
Service providers 1 company in India 1 company in Israel 2 companies in the US
4 companies in Europe 1 company in Canada
Hardware/Software providers 5 companies in the US 4 companies in Europe
R&D Centres and laboratories
1 international R&D organisation 2 companies in the US
3 R&D organisation in Europe
EU and GMES leading the way in environmental security.
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is integrated into a geographical information system to help image analysts and experts to make recommendations for mitigation, preparedness, response, and recovery in case of humanitarian crises.
Growing concerns on certain diseases (e.g. malaria, paludism, Asian flue, AIDS) create a market for GIS integrating Earth observation data and GPS data to trace movements and spreading of such events. The use of Earth observation data to improve human health is an emerging field, driven by the demand of international and national government organizations in charge of health security
Suppliers Respond is one of the 12 ESA funded GMES service elements with objective to associate the European and international organisations working with the humanitarian community in order to improve access to maps, satellite imagery and geographic information. Respond has been active in providing timely mapping for recent crises. Several VACs are supplying integrated EO/GIS type services to help private businesses and public organisations develop pandemic action plans.
Typology of customers in humanitarian relief
NGOs Norwegian People Aid, CARE, Halo Trust, Oxfam, Red Cross, Caritas, ActionAid
Public National Administrations
Health departments and research institutes (e.g. Inserm and Institut Pasteur in France) , USAID (US), DFID (UK), Public health agencies, transportation services
Intergovernmental bodies UN High Committee for Refugees, UN Office for the Coordination of Humanitarian Affaires (OCHA), UNOSAT, World Bank, World Health Organization)
European Commission EU-ECHO
Sample of market players for humanitarian crises
Category of suppliers World Europe & Canada (including Eastern Europe)
Service providers 1 company in India 1 company in Israel 2 companies in the US
4 companies in Europe 1 company in Canada
Software / imagery providers
1 company in India 1 company in Israel 2 companies in the US
8 companies in Europe
R&D Centres and laboratories
2 international R&D organisations 2 R&D organisations in the US 1 R&D organisation in Turkey1 company in India 1 company in Israel 2 companies in the US
5 R&D organisations in Europe
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4.2.3 DISASTER MANAGEMENT
Natural disasters (Earthquakes, hurricanes, volcanic eruptions, landslides, drought/floods) and man-made disasters (such as technology disaster, nuclear/pollution) cause billions of dollars loss, plus loss of life annually. Demand for Earth observation information is growing from governments and private companies with interest in understanding, preventing and coping with the losses of assets and of human lives.
Earth observation information generally combines with satcom and navigation services in order to provide decision-makers with updated relevant information. In addition, at the World Conference on Disaster Reduction in January 2005 in Kobe (Japan), top policy makers and experts agreed on the “Hyogo Framework for Action to build the resilience of nations and communities to disasters”. Against the backdrop of the Indian Ocean tsunami, hurricane Katrina, the Pakistan earthquake and a string of other dramatic natural events causing disasters in many parts of the world, the task of satellite technology to provide early warning has never been more urgent than now.
Customers
According to the United Nations; over 300 natural disasters were reported each year between 1994 and 2003, affecting nearly 260 million people and with damages estimated at $55 billion annually. In 2004, the tsunami in the Indian Ocean caused the death of 241,400 people and damage of $103 billion.
The demand for satellite-based Earth observation services for the prevention and management of natural disasters principally come from governments through aid agencies and from non government organizations (NGO), including United Nations Development Programme, World Food Programme, UN HCR.
In response to the needs expressed by local authorities as regards to natural and technological risk management, the United Nations Office for Project Services (UNOPS) and the United Nations Institute for Training and Research (UNITAR) have established a service called UNOSAT with the aims to study and prevent risks, to support humanitarian operations and sustainable reconstruction and rehabilitation.
In addition to government organizations, insurance companies are also key users (e.g. Swiss Re, Munich Re) but with less important requirements for real/time or temporal information. Insurance companies use GIS to calculate premiums and compensation. The analysis of
Rapid Response after a Disaster requires timely EO data
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geospatial information enables them to assess past damages and to assess future risks.
Suppliers
Suppliers include private companies but also government organisations that acquire and process data, in particular the space agencies.
In the USA, several companies offer earthquake prediction services using EO value added data from satellites. Space agencies contribute to disaster management by acquiring and processing data for other government agencies.
Customers for Disaster Management
Local/regional government Prevent and manage crisis. Initiate relief.
Public National Administrations Prevent and manage crisis. Initiate relief.
Intergovernmetal organisatrions Prevent and manage crisis. Initiate relief.
Services Insurance industry Risks assessment, calculate damages and premiums
Sample of market players for disaster management
Category of suppliers World Europe & Canada (including Eastern Europe)
Service providers
1 international organisation 1 company in India 2 companies in the US
4 companies in Europe 1 company in Canada
Hardware/Software imagery providers Not identified 9 companies in Europe
R&D Centres and laboratories
1 international organisation 2 R&D organisations
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4.3 Land Monitoring
Land information services includes two segments that provide the data and the tools to inventory and understand land occupation and transformation by human activity and infrastructure. This is the only area of EO services where there are “standard” products and hence efficient production lines can be set up. By contrast, all preceding EO market segments described are for 90% or more produced in-house, and are one-off products.
4.3.1 TOPOGRAPHIC MAPPING
Geographic data is increasingly collected and combined with a variety of other data in order to create relevant information for spatial analysis and decision making for cartography, surveying and mapping:
Customers
Topographic mapping is the most established service for Earth observation data. Most countries with large territories are now using such data from commercial companies to provide national 1:50.000 orthophotomaps and DEM/contour maps at a national level. At regional and local levels, the increasing availability of high resolution satellite imagery (no European sources yet) is allowing mapping companies to provide 1:10.000 and even 1:5000 scale topographic maps.
In addition to national geographic agencies and municipalities, customers also include private companies such as retailers, restaurant owners, real estate developers, brokers, business consultants, urban planners, telecom operators to identify new store locations, analyze trade areas, assess market opportunities, etc.
Customers have three main requirements with respect to satellite technology:
Spatial resolution: High spatial resolution needed for detailed mapping
Market segmentation for Land Monitoring
Topographic Mapping Topographic and thematic mapping
Land use/land cover Use of spatial and temporal data for urban planning, monitoring of infrastructure
Consumer Services Web-based EO maps and related services
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Spectral resolution: More and more spectral bands required for object discrimination
Temporal resolution: More revisits for map updating.
Suppliers
Suppliers often include specialized engineering/consulting companies that provide a wide range of services such as demographic projection, market analysis and forecast and thematic mapping.
These companies often integrate a full range of products and capabilities: aerial photography, photo interpretation, processing and interpretation of digital satellite images, production of photogrammetric and topographic maps, airborne laser scanning (LIDAR) etc.
Companies such as ESRI in the US have developed specific software tools dedicated to mapping that are integrated by service providers.
Competition is intense between service providers for broadly similar products and services in mapping and cartography.
Typology of customers in cartography & mapping
Public operational services National Mapping Agencies High-resolution satellite image mapping (orthophotos, DTMs, DEMs)
Public national administrations Resource Ministries (Land, Agriculture, etc.)Land use map updating with EO data
Local and regional government City/town: Urban planning, tourism etc
Private customers (real estate, retailers etc.) Assess market opportunities
Sample of market players for mapping
Category of suppliers World Europe & Canada (including Eastern Europe)
Service providers 1 company in India 1 company in Israel 4 companies in the US
5 companies in Europe
Software & imagery providers
1 company in Japan 3 companies in the US
8 companies in Europe
R&D Centres and laboratories
2 R&D organisations in China 2 R&D organisations in the US 6 R&D organisations in Europe
Certification is becoming a requirement for satellite map accuracy
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4.3.2 LAND COVER/USE
Customers
Satellite imagery and especially high resolution imagery is increasingly used to - Build and update land use databases at local, regional and national
scale
- Design and comply with land planning rules
- Conduct environmental impact studies
- Follow expansion of urban areas
- Cadastral information systems.
In emerging economies, where cities are growing rapidly, urban monitoring and planning is providing these companies with nice repeat business, updating city maps on a regular basis and integrating them with satellite navigation data (GPS) for ground control.
Suppliers
The CORINE program of the European Commission for land cover has led to growth of many SMEs in the field, first to make European wide Land cover maps, with a uniform classification and standard and then enabling these SMEs to offer up-dating or change detection/temporal monitoring services.
There are several specialised companies (mainly SMEs in Europe) and large engineering firms who provide service to infrastructure companies using EO and GPS data for projects such as port development, designing route alignments for high speed trains, tunnels, other major engineering works.
The market for rural cadastres, especially in Central and Earth Europe, plus in many Developing Countries is now growing rapidly since it can be met by EO data such as SPOT, and other high-res satellite data. Thus many European traditional cadastral, large scale rural areas at scales of 1:50,000 up to 1:10,000.
As cost of EO data reduces, market demand and Value Added Services increase
Ever-increasing processing speeds, increased data storage are expanding EO use in this sector
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4.3.3 CONSUMER SERVICES
In 2005, the introduction of consumer services based on 3D- based satellite imagery, opened a mass market for satellite observation.
Consumer services are characterised by the purchasing decision by individual end users. However, based on a basic service offered to consumers, the services developed as they stand in the current segment will also likely be addressed to professional users with the release of premium services.
As a very emerging application, the business model for consumer and related services are still to be built, and the service brought monetized. Still, according to the early results of the service, it clearly represents a breakthrough innovation in the field of earth observation. At present only one service is operational.
Customers
Consumer services, as generic tools, will likely address five types of communities:
• Individual users: Individuals are likely to use Earth Observation images to follow news events, plan their holiday destinations, etc.
• Professional users: companies involved in a commercial way to which images can bring support (including real estate…) will be likely users of a user friendly service that can bring support and an increase in productivity to their services
• Educational users: Schools, colleges and universities will benefit from a flexible tool to teach many types of courses (geography, environment politics…) in a more precise and interactive way
• Other public services: Government and public organizations are likely to use earth observation engines to support local development
Sample of market players for mapping
Category of suppliers World Europe & Canada (including Eastern Europe)
Service providers
1 company in India 1 company in Israel 1 company in S. Africa 2 companies in the US
3 companies in Europe 1 company in Canada
/Software & imagery providers 4 companies in the US 5 companies in Europe
R&D Centres and laboratories
1 R&D organisation in Australia1 R&D organisation in Japan 1 R&D organisation in Nigeria 1 R&D organisation in S. Africa
1 international R&D organisation 3 companies in Europe
An emerging demand with a very large potential in terms of users
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projects including urbanism, transportation management, agriculture, development
• Military and home security users: Also military users may require other type of earth observation information, the development of easy to use earth observation engines is likely to efficiently address a number of needs, including training as well as operations in certain areas in case of disaster recovery and military operations
Although part of the users were already in position to obtain access to earth observation information, the availability of a user-friendly, low cost tool will help to distribute information and operational tools to a larger number of users. It will be particularly efficient for the development of structures with limited financial capabilities.
Suppliers
Service providers:
At present only two service providers are active worldwide. A third supplier of similar types of EO services could surface.
While the generic earth observation engines are likely to be the main service providers, a number of specialised services are likely to emerge in coming years. A comparison with other internet developments leading to the creation of several small businesses may be relevant. Such services still largely have to be developed.
Software & imagery providers: At present, the EO Data Providers are providing the EO data to feed this service. Some companies have already stated to develop software linked to the Google Earth APIs.
Typology of customers in consumer & related services
Consumers Individuals
Public governmental bodies/ International Agencies Education, Defence, public operational services
Commercial services Real Estate, travel/tourism, leisure/retail
Infrastructure/transport/ communications
Construction industry, transportation industry
Service providers are expected to diversify in coming years with the development of tailored applications
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At present these are no European/Canadian EO providers which can provide data as input to this type of service. All high resolution satellite imagery is provided by US companies. The only input by European companies at present is as a provider of airborne digital colour imagery.
R&D centres and institutions: There are various institutes who are doing research for consumer services to develop new applications of such a consumer market.
Sample of main market players in Consumer Services
Category of suppliers World Europe (including Eastern
Europe)
Service providers 1 R&D organisation in the US 3 companies in the US
1 company in Europe
Software and imagery providers 6 companies in the US 2 companies in Europe
R&D Centres and laboratories 1 R&D organisation in the US
1 company in Europe
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4.4 Meteorology
Meteorology represents the most operationally mature and economically significant EO application. Although the science of meteorology and routine weather forecasting existed long before satellite EO data were available, both R&D and operations now depend to an increasing extent upon observations from satellites, which offer much better spatial coverage, particularly over the oceans, than in situ measurements.
This segment covers all of the meteorological applications, including general purpose and specialized forecasts for land based users. Specialised “Metocean” services such as wind/wave forecasts are dealt with in the Oceanography section. The segmentation is determined by the typology of customers and the funding and service models. The entire macro segment is underpinned by public sector meteorological agencies.
4.4.1 PUBLIC SERVICE WEATHER FORECASTING
This segment includes all the general purpose weather forecasting, including basic products which are subsequently used in value-added applications discussed in the “Professional met services” segment. This segment is almost entirely the domain of national, public funded weather services, though delivery of weather forecasts to consumers is undertaken by public and private mass media.
Customers
Public service meteorology outputs represent both final products in their own right and input to customised forecasts for specialised users. For all applications of baseline weather forecasting, there has been a trend to much more diverse delivery mechanisms as all users, including individual citizens, have come to expect ever more sophisticated weather forecasting products
Market segmentation for Meteorology
Public Service Weather ForecastingProvision of public service short- range weather forecasts for consumer and general purpose business and government use
Professional Met services Provision of value added customised forecasts for commercial, transportation and military use
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These sophisticated forecasts are delivered either directly by the weather forecasters or via media outlets, which provide “cosmetic” customisation before passing them on to their audience.
The later products are dealt with in more detail in the following segment.
Suppliers
In essence the supply chain is limited to the main national meteorological services. These services sub-contract substantially to industry for the constructions of facilities and of course satellites. However typically, R&D and operations, including data collection, are done in-house by the national meteorological agencies of each country.
4.4.2 PROFESSIONAL METEOROLOGY SERVICES
The market for weather forecasting has enormous economic consequences. The impact of weather conditions can be extreme on a large number of industrial segments, and in particular for those directly exposed to outdoor activity. As a result, premium services have been designed to address the needs of professional users.
Typology of Customers for public service meteorology
Consumer Citizens using general purpose forecasts
Media TV, internet and printed media weather forecasts as part of general news services
Financial Weather indices used for triggering payments of weather
contracts
Value-add specialists
Basic weather data used as a starting point for specialised
services
Leading market players in public service weather forecasting
Category of suppliers World Europe & Canada (including Eastern Europe)
Data providers 2 international agencies 1 European agency
Service providers 2 international agencies 1 national agency in Australia
5 national agencies
Supply is primarily managed by public agencies
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Customers
Professional users of added value meteorological products can be broadly split into two categories: direct users and indirect users.
• Direct users need information to help them manage the direct affect that weather has on their activities or production capacity, for example, farmers using weather forecasts to predict the need for irrigation or fertilization of crops, highway management agencies planning the need for snow removal and the use of meteorological information for air traffic planning and management.
• Indirect users require meteorological information to predict the financial consequences of weather conditions on the demand for their products, on their exposure to risk. These users include the financial services and energy industries. The overall typology of customers and services is shown below.
Suppliers
The supply chain consists of both the large institutional public sectors players and a large spectrum of private sector companies, ranging from large multinationals to small companies working in specific niches.
Typology of customers for professional meteorology services
Agro/Fish/Forest Farmers: For planting, harvesting, irrigating
Infrastructure/Transport/Communications
Transportation industry: Road conditions (ice, snow, storms, floods)
Services
News/Media: Major events such as yachting, sport Travel/Tourism/leisure : events, open air festivals Insurance Sector
Public / Governmental bodies Defence: National intelligence agencies, military offices Public operational services: civil protection, police force
Leading market players in Professional met services
Category of suppliers World Europe & Canada (including Eastern Europe)
Data Providers
1 international meteorological
agency 1 meteorological agency in Japan 1 meteorological agency in Australia
5 national agencies in Europe
Service providers
Several companies worldwide
2 companies in Europe
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The main service providers are the satellite agencies with meteorological satellites.
The national weather forecasting agencies provide the services using data from meteorological satellites. The same satellite data are used by all agencies, but coupled with ground weather stations and models to make forecasts.
Around data provisions, a specific network of companies with specialised service provision has emerged. In particular, two types of consulting services may be highlighted:
• Consulting companies providing tailored analysis of weather information. Such companies may primarily target small companies with limited internal capability for the treatment of weather information.
• Companies focused on legal expertise: such companies are specialised in expert analysis for lawyers in case of claims that involve elements related to weather conditions.