GALILEO COMMERCIAL STANDPOINT
From INVESaTWIKI
Main applications in the field of GPS
Here applications that have shown
very promising developments are presented.
The Location Based Services (LBS) market,
with its enormous potential, is first described.
In particular, four main LBS categories, i.e.
information and navigation services,
emergency assistance services, tracking
services and network-related services, are
examined in detail and their expected
considerable revenues explained.
Four important transport domains (road,
aviation, maritime and rail) are also presented,
giving for each sector an insight into the
present markets, the possibilities for
development and the new markets opened
by Galileo.
Specific applications such as oil and gas, electricity networks and
precision farming are addressed, in view of the
improvements in exploitation techniques
made achievable by satellite navigation
technologies.
A complete view on GNSS applications is not
complete without referring to almost all of the
sectors of activity, such as fisheries, survey and maritime engineering, insurance,
leisure, water management, environment
monitoring, support to people with disabilities,
consumer protection, meteorology, science,
timing, etc. [1]
Major leading countries and players worldwide
Industrial players of GNSS
In the GNSS value chain, a variety of different industries is involved, ranging from space industry with extremely long product cycles, down to chip manufacturers that update their products every six months. The following Figure 1 and related links illustrate the possible navigation value chain, as it might be realised with GALILEO (based on different studies, e.g. PWC). This mixture of different industries that are already established in other areas and partially do not yet see navigation as a potential profitable business, demands a high level of communication and co-operation. [2]
European industrial capabilities and co-operations
The industrial capability for the development and maintenance of European satellite navigation products has to be exploited best to enable the
successful extension of Europe's share in the satellite navigation market. Where needed the European impact can be maximised by exploiting
possible synergy between different industries. What can be done to stimulate and to facilitate such industrial co-operation?
European players in the satellite navigation business today and their success
There is apparently sometimes the perception that the European industry is at a disadvantage against its American counterparts in the satellite navigation business. This is a perception which is perhaps worthwhile to challenge.
American ownership of GPS - an excuse for not parteciping in this business today?
Certain companies today might not want to participate in this business because of the costs involved until this technology is mastered and competitive products can be built.
Critical success factors to get the development of GPS/GALILEO receivers started
Players potentially interested in GALILEO need to see clear and unambiguous signals that GALILEO will become operational at a certain point in time. Before these signals are not sent out by the EC or the GALILEO proponents, nobody will start investing into the development of GALILEO based receivers or chipsets.
Is there a need for an european wide industry association?
The existing industrial trade associations (Automotive, Mechanical Engineering, Electrical Engineering, etc.) that are addressed to specific products or market sectors very likely would not be suitable in order to provide a central contact point to the public sector and to disseminate information to the industries concerned. A more appropriate way would be to have an GNSS focussed platform representing all those industries supplying and using GNSS related products and services.
Will GALILEO create an (interely) new industry in Europe?
A major objective of the entire GALILEO programme is to establish a new industry in Europe, which is currently believed to be mainly in the hands of USA.
Role of local/regional technology parks
The common denominator of companies building positioning / navigation products is probably pretty small. The advantage of a technology park should be to draw synergy from a variety of different competencies, which share a location.
General role of international co-operation
Co-operation between companies of different countries can have several positive effects, and are therefore a widely used measure to improve business. [2]
Overview of market developments and emerging applications
Ever since the launch of the first satellite
navigation systems for military purposes (GPS
in the United States and GLONASS in
Russia), companies worldwide have been
developing products and services to stimulate
and serve a civilian market for positioning
technology. From a baseline of professional
equipment for surveying and civil engineering,
continued innovation in technology has led to
huge improvements in the price and
performance of equipment. In tandem with
this, entrepreneurs have continued to develop
new applications and spawn new businesses
to serve growing markets.Today, several
thousand companies are already involved in
satellite navigation device production and
service provision, encompassing a diversity of
markets far outstripping anything that could
have been envisaged even ten years ago.
As the market grows in size, it also develops in
structure.What started as an industry that
supplied stand-alone navigation units, the
situation has developed to combine both
navigation and communication technologies as
shown in Figure 2.
Satellite navigation receivers are now
commonly integrated into other devices,
including in-car navigation systems, fleet
management systems, and increasingly also
into mobile phones and Personal Digital
Assistants (PDAs) either by full integration
of the GNSS receiver or by wireless (e.g. via
Bluetooth®) communications with external
receivers.The product business is
complemented by a rapidly developing
service industry that integrates, among others,
digital mapping, bundled with mobile
communications to deliver packaged services
to end-users.
In this section we will present several applications very promising, produced by some of the major leading players worldwide, in the fields of Location Based Services, road, aviation, maritime, rail, oil and gas, agriculture, fisheries, science, electricity networks, social, customs, justice and home affairs and leisure. [1]
Assessment of the strategy of major space corporate players
Implications of controlled Access Concepts for GALILEO
There are considerations to provide certain services of the GALILEO system, i.e. high quality services or services with higher availability only to subscribers against a fee, or to exclude non-trusted users from the service, particularly in times of tension or war. Both scenarios would require some sort of key management to control access and specific hardware and software elements.
Civil aviation
Civil aviation is a highly regulated industry under the mandate of ICAO, with over 160 member states. Being a Safety of Life industry, the navigation aids used must comply with ICAO Standards (SARP: Standard And Recommended Practice) and these SARPs take many years to generate and be approved.
Maritime and fisheries
One of the important areas of GNSS applications are maritime and fishing related activities, especially for regulation and mandatory monitoring. Open ocean and inland waterways are the most widely used mode for transporting goods world-wide. The efficiency, safety and optimisation of marine transportation are key issues.
Applications induced by regulations as new business opportunities due to GALILEO
Regulations mandating GNSS application or notably certification of the GNSS signal and guaranteed integrity as intended for GALILEO may pave the way for new GNSS applications and markets not feasible today based on GPS alone thus opening new business opportunities for European industry in the future.
Charging policies and mechanism for GALILEO
It is expected that the charging policies for the usage of GALILEO will form a central part of the tenders for the GALILEO operating company.
GPS/GALILEO compatibility
Until now, compatibility between GALILEO and GPS has become a common understanding during definition and development of GALILEO. It is a fundamental requirement for both providing a maximum of added-value to the end user, and enabling European industry access to world-wide markets. [2]
Global market statistical figure and market shares related to the various existing applications
![Fig.3 European GNSS market 2005 [3]](/invesatwiki/index.php/Image:Gnss_market.jpg)
SME and start-up access to the market
Due to their flexibility and innovative power start-up companies and SMEs are expected to play an important role in creating new GNSS related products and services. [2]
GALILEO contribution to overall GNSS market growth
In this section we will show the market prospects for european industrial players and the european suppliers global revenue. [4]
Ensure european share
There is a huge market potential for GNSS but market preparations and investments are needed downstream to ensure the european suppliers global market shares. [4]
Global market forecast
Market take-up is estimated and information on current pricing and future trends is used to produce a turnover model. In view of the diversity of the overall supply chain for navigation products and services, forecasts are made regarding the specific segments of the market. [1]
Public and private investment data
Galileo research and development activities
The Galileo research and development 2nd call activities are financed by 66,9 M€ and are spread in three areas:
- Area 1: User Segment development.
- Area 2: Mission Definition and Implementation.
- Area 3: Innovation and international initiatives.
These areas can be examinated by a global view, an analysis of country share in the total grants and the financing policy. [3]
Close and widespread links between GALILEO and the downstream industry
Close links between GALILEO and the downstream industry are of paramount importance to optimise the economic benefits in both directions: for the GALILEO programme to define the system features according to user needs, and for the downstream industry to get detailed and reliable information about system features and requirements to develop adequate and market attractive products and services. [2]
RTD funding possibilities and constraints
Frequently SMEs are missing the financial and human resources required to develop new and innovative applications and businesses in the GNSS domain. What can be done to support SMEs by customised RTD funding schemes, and notably to provide easy and targeted access to such funding for SMEs? [2]
Public funding opportunities for pilot projects
A considerable amount of public funding (around 100 MEURO per year) will be available over the next number of year to test new ideas and concepts. [4]
Supporting policy public practices
Political and regulatory environment
- Development and specification of new, more efficient and safer transport networks (road, rail, maritime, aviation).
- New directives in fishery policies, in environment monitoring, in agriculture, etc.
- New measures to enhance public and consumer protection (customs, justice and home affairs, external relations, etc.)
- Measures in support of people with disabilities, for regional development or for humanitarian aid in poor countries, etc. [1]
Assessment of the technological advantage of the use of satellite based technology
Electronic navigation systems employing artificial satellites as radio signal sources and position references. Satellites have the advantage that their signals have line-of-sight propagation to almost an entire hemisphere of the Earth. These systems have become the preeminent radio navigation systems and are gradually replacing ground-based systems such as Loran and Omega. Two main types of satellite navigation systems have been developed, Doppler systems and differential-time-of-arrival systems.
In addition to providing navigation service to aircraft, vehicles, and watercraft, many other uses have become practical because of the accuracy, global coverage, and low cost of satellite navigation receivers. Small, inexpensive, handheld receivers are available for use in hiker, boating, and other recreational activities. In other applications, the receiver is combined with a communication system or a geographic database. Surveying has been revolutionized by a very accurate type of differential system. A surveying system can take advantage of the fact that it is not moving for the duration of its measurements. This yields very precise position estimates relative to a local reference point. The tectonic motion of the Earth's crust around fault lines has been measured with an accuracy of 1 cm (0.4 in.) or less.
In automobile systems, the navigation receiver is combined with a display and a digitized map which is stored on a CD-ROM. Vehicle tracking systems use satellite navigation to determine a vehicle's position, which is then periodically reported to a central location by using a cellular telephone or some other communications system. Variations of this concept have been employed to track livestock, weather balloons, wildlife migration, and many other things. The ability to easily record the exact location at any point makes satellite navigation receivers ideal for mapping environmental data such as soil conditions, forest growth patterns, and pollution. Such data are used to monitor environmental damage. In aircraft navigation systems, satellite navigation is often combined with an inertial navigation system. The inertial system improves short-term accuracy, particularly during a maneuver. The satellite navigation maintains accuracy over the long term. [5]
Business opportunities
Operational Services for Air Transportation (OSAT)
One of the major objectives of European space policy is to make space investments more valuable to
taxpayers and to maintain or improve the competitive position of the European space sector. Space is
an expensive business. Not only can individual
nations no longer afford large space programmes,
but the general public cannot always see that money
spent on space projects could be beneficial to them
in the long run. The European Space Agency is trying to address these concerns by creating business
opportunities from suitable space applications.
OSAT is a contribution to the safety
and economic aspects of air transportation, enabling
flight route optimisation by providing instantaneous
weather display in to the cockpit.
In the following we will show the service idea, with her applications, and the business idea, with her economic considerations. [6]
The German market and the value chain effects
The objective of this chapter was to
establish a sound basis for a decision of the German
government for whether or not it was economically
reasonable to participate in the European satellite navigation system project Galileo. Therefore, existing market studies were investigated
and completed by a newmarket forecast
in order to determine the market potential in Germany.
Different market segments and applications
had to be identified and the special requirements of
future users had to be documented.
The economic effects on the
German Value-Adding-Chain were also investigated.
To determine the market potential and the
effects on the Value-Adding-Chain, the following
set of parameters was implemented in the
computer-based model for the market:
- Number of equipment (e.g. number of new cars) and services including a linear/quadratic trend model,
- Equipment penetration factor (percentage of e.g. newcars equipped with a satellite navigation system) including a linear/quadratic trend model,
- Prices/charges including a linear/quadratic trend model,
- Investment cycles,
- Sales taxes, value of production, industrial cost breakdown structures and
- Sensitivity analysis based on best-/worst-case scenarios (Monte-Carlo simulations).
To identify the special requirements of the different market segments, questionnaires, personal/telephone interviews and workshops were used. To classify and understand this market forecast, some boundary conditions have to be taken into account:
- Only the German market is considered. Conclusions for the European market can only be drawn with care.
- The considered period of time are the years 2007–2017.
- All market values are given in German Marks (DM) in 1998 values.
- Market values related to satellite navigation equipment can be considered very robust, since data are based on company statements used for their business development. For market segments, where no data were available the assumption was made that there is no market.
- The market potential for services is very sensitive since the acceptance of a satellite navigation system is very much dependent on the price/charges structure. Therefore, the number of users is extremely variable.
- The market potential that is considered is not equal to the potential that the European “Galileo” will cover. The latter will very much depend on implementation strategies and realization times. [7]
See also
Emerging commercial opportunities based on combined communication-navigation services
References
[1] Galileo Joint Undertaking
"Business in satellite navigation - An overview of market developments and emerging applications".
[2] G.Dippel-Hens (GALILEAN working group report)
"GNSS business issues".
[3] S.Muller
6th Framework Programme. Work programme of the Thematic Priority Space.
[4] B.Holt Andersen, M.Dillon, W.Forrest
"Market development - The route to the market".
[5] A.J.Gavin, S.Scarda, K.Sheridan, J.I.Herrero
"Polaris: a software tool to support GNSS-based application design".
[6] A.Atzei, F.Gampe, K.Pseiner
"Assessing new applications and testing business opportunities".
[7] A.Vollerthun, M.Wieser
"A european global navigation satellite system - The german market and value adding chain effects".
