Mega Trends Driving Change in Business Environments Macro to Micro Implications of Global Mega Trends

What is a Mega Trend?

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Mega trends are transformative, global forces that define the future world with their far reaching impact on business, societies, economies, cultures and

personal lives.

Connectivity and Convergence

Cognitive Era Bricks and Clicks Smart is the New Green

New Societies

Health, Wellness, and

Welllbeing

New Business Models

Urbanisation Future of Infrastructure

Innovating to Zero

Future of EnergyNew Markets

Beyond BRICSsFuture of Mobility

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News Headlines in 2030

Robots enter our personal lives.

Sensory devices guide our everyday lives.

Mobile financial transactions are now in crypto-currencies.

We enter cognitive era

3D printing is commonplace. 4D printing is gaining

mainstream acceptance .

EU signs agreement to introduce a high speed rail

service from London to Beijing.

Autonomous cars on the roadSummer Sale: Low-cost

holidays in space.

Connectivity and Convergence

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10 Connected Devices for Every Household by 2020

5 billion internet users by 2020

5 connected devices for every user by 2020

500 devices with unique digital IDs (Internet of things) per square kilometre by 2020

80 Billion Connected Devices By 2020

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Gen

erat

ion

D

evic

e Sp

ecif

icat

ion

s

1G 2G 3G 4G 5G

Less than 1 millisecond Latency

90% Energy

savings

0 perceived down

time for service

provision

7 trillion M2M wireless connections

5G Targets

5G Rollout in Europe: Road Map and Vision European Commission has signed strategic deals with Asian market leaders in 5G technology, Japan and South

Korea and China to rollout 5G by 2020

Analog Voice Calls

Speed: 50 KBPS

Digital Voice Calls

Speed: 250 KBPS

Data

Bandwidth: 20 MBPS

Video Streaming

Bandwidth: 200 MBPS

M2M

Bandwidth: 10 GBPS

559

225

107

102

220

365

129

73

71

327

R&D Reconnaissance Navigation Earth Observaion Communication

136

59

218

354

161 164

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89

Heavy5,400kg+

Large4,200-

5,400 kg

Medium2,500-4,200

kg

Small500-

2,500 kg

Micro100-

500 kg

Mini10-100 kg

Pico0.1-1 kg

Nano1-10 kg

Sub-Trend: Space Jam There will be 1,213 Satellites Launched, Cumulatively, Globally by 2021.

1,213

965

2011* 2021*

Source: Frost & Sullivan Analysis

*Note: The numbers refer to accumulated number of satellites to be launched in the period 2012 to 2021 cumulatively

Sub Trend: Augmented RealityAugmented Reality (AR) is defined as a real-time augmented view of the environment through digital data through use of text, sound, graphics, video, and navigation systems that increases user’s interactivity with the local environment . This extends business and mobility options, social interactions and experiences which has implications on personal lives, businesses and even day-to-day activities.

Reality Augmented Reality Augmented Virtuality Virtual World

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Sub Trend: Augmented Reality Impacting Different Personal Experiences

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Case Study on Future of Education: ‘Flipped Classroom’ (Khan Academy)

Lecture today; Classwork Tomorrow

Lecture Online; Classwork Today

Teacher – speaks in the classroom

Teacher – helps in the classroom

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Source: Frost & Sullivan

Smart is theNew Green

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Smart Technology

Smart Buildings

Smart MobilitySmart

WindowsSmart CloudsLEVEL 3

Sensing Mechanism +

Two-way Flow of Data

Communication

Smart Chip Smart LightingLEVEL 2

Basic Sensing Mechanism + One-way Data

Communication

Smart Bandages

LEVEL 1

Basic Sensing Mechanism

Image Source: Dreamstime and Connected Digital World Source: Frost & Sullivan

A smart product is

characterized by an intelligent sensing technology that is

increasingly being integrated with Internet technologies, thereby

allowing the product to react to and communicate with the changing

environment around it. This leads to optimal operations and

improvement in efficiency.

Smart is the New Green—3 Levels of Smart Products and Technologies

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Selected Smart Cities in 2025

Global Smart CitiesOver 26 Global Cities to be Truly SMART Cities in 2025 - More than 50% of Smart

cities of 2025 will be from Europe and North America

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

Toronto

San Francisco

Vancouver

Paris

BostonNew York

London Berlin

Barcelona

Amsterdam

Seattle

Tokyo

Singapore

Calgary

Chicago

Vienna

Helsinki

Oslo

Seoul

Beijing

Tianjin

Wuhan

Helsinki

Sydney

Shenzhen

Stockholm

Santander (upcoming)

Smart Buildings—The Triple Zero Architecture of the Future

Smart buildings are green, energy efficient, and intelligent, with advanced automated infrastructure that controls and manages aspects, such as lighting, temperature & energy consumption, independently or with minimal human intervention.

CommercialResidential

Building Automation SystemsReduction in energy consumption up to 30%

Smart MetersLighting

HVAC ControlsEnergy Management

Energy Efficiency

Image Source: Dreamstime

Source: Frost & Sullivan

HVAC—Heating, ventilation, and air conditioning EMS—Energy management system

Electronic Article Surveillance Systems

Contraband Detection Systems CCTV

Automotive Security systems

Electronic Security Systems

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Sub-Trend - Industry 4.0 Creates New Smarter Factories4th industrial revolution will expand mobile robot applications in the smart factory from playing

mundane jobs like assembly to building sophisticated machinery in production floors

Illustrating the role of Cloud Robotics in Industry 4.0

Industry 4.0

• Internet of Things

• Cloud platforms

• Wireless intelligence

• Integrated Industries

• IP centralization

• Big Data

Industry 4.0 benefits

• Newer insights on factory operations• Real time trajectory of business• Insights on customers• Sustainable manufacturing

Algorithmic learning & data

enhancing

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Future of Mobility

1717

DEMAND RESPONSIVE TRANSPORT (TAXI, BRT)

CONNECTED LIVING (including

car)

INTERCITY PUBLIC

TRANSPORT

CAR LEASING

CAR RENTAL

CAR SHARING & POOLING

INTRACITY PUBLIC

TRANSPORT

PHYD INSURANCE

DYNAMIC PARKING

CONCIERGE SERVICES

ENERGY MANAGEMENT

MICRO-MOBILITY SOLUTIONS

TRAINS/FLIGHTS INTEGRATION

APPS, JOURNEY PLANNING, BIG

DATA

Mobility Configuration will Drive Energy Saving in TransportationIn Future Industry Stakeholders Will Showcase Mobility Integration

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The Future of Mobility will be Smart

Micro-mobility

Integrated mobility

Global car sharing

Parking management Zero emission taxisNew business models

Connected/autonomous transport

Telematics based insurance

Alternative fuels

Demand Response Management

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Demand Responsive Transport Solutions Remove Inefficiency

“Fixed” Carpooling

Instant – Short Distance

Planned – Long Distance

Higher Price per KM

Lower Price per KM

Source: Frost & Sullivan.

“On Demand” Carpooling

“Taxi” ServicesPublic Transport

“Transportation Network Companies”

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Urban Transhipment Areas

Urban Consolidation Centres

Urban Intermodal Hubs

Locker BoxesMicrodistribution

Mobile Depots / Freight Buses

Sub Trend: Future of Consolidation and Last Mile DeliveryMore Bundling, Intermodality and Microdistribution in Urban

Areas

Types of Urban Distribution

Types of Urban Last-mile Deliveries

One Hour Deliveries Click ‘n’ Collect

Future of Infrastructure

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In Future, HS Rail will not only Connect Cities and Countries but will also Connect Continents

• China : 25,000 kms by 2025 (7,431 kms in 2010)• 2020 Trans Siberian Link: New Route 66• Biggest Project: $68 billion California HSR• UK project: £33 billion (by 2026)

What are the Opportunities?

• High Speed Logistics• Copper-silver and copper-magnesium wires• Steel Companies• Construction tooling, spare parts• Condition monitoring, security, surveillance, • Data handling, Passenger information

systems• Mergers and Acquisitions

Source: Frost & Sullivan analysis.

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Future of Energy

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Top 10 Technologies and Markets to Tackle Carbon Reduction

Energy Efficiency and SMART Buildings

LED Lighting Revolution

Small Scale Distributed Generation

SMART Grid & SMART Energy

Advanced Batteries and Energy Storage

SMART Water Networks

RenewablesEnergy

HarvestingEnergy Recovery from

WasteGas-fired Power &

Shale Gas Exploitation

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Urbanisation

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Mega CitiesMega

Regions

Mega Corridor

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Smart and Sustainable

Cities

Implication : Cities, and Not Countries,Will Drive Wealth Creation In the Future

New York City, with a GDP of $1.28 trillion, which is the equivalent of being the 15th largest country in the world, close in economic scale to South Korea ($1.12 trillion).

Cities like Istanbul in Turkey will account for more than 22% of country’s GDP

What are the Micro Implications?

High Economic PowerHub and Spoke Business ModelPilot Project ApproachNew Mobility SolutionsCity as a Customer

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Suppliers

Manufacturers

Retailers

Consumers

Landfill/Waste Management

Linear Economy

Circular Economy

Reuse/ Redistribute

Refurbish/ Remanufacture

Recycle

$700 billionin consumer goods

material savings

$1.80 trillion per annum savings in avoiding waste in

textiles

$1.50 billion in collecting

household food waste annually in

the United Kingdom

Savings in reusing/refurbishing/ recycling

Source: ESA; Ellen MacArthur Foundation; Frost & Sullivan

New Avenues for Resources: Circular EconomyThe circular economy will promote efficient use of resources, provide greener production, and

support resource optimization, with an opportunity in excess of $1 trillion for the global economy.

Circular economy refers to an industrial economy that, contrary to a traditional linear economy, reclaims used materials and recycles them as secondary raw materials for new products.

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Macro Micro

From Macro to Micro: Taking Mega Trends from Information to Strategy Implementation

Mega TrendSelected trends that impacts key

business environments

Sub TrendA sub-layer of trends that has a

wide ranging impact

Impact to Your IndustryVisualising the roadmap of these critical forces through scenario-

building and macro economic forecasts

Impact on Future Product/ Technology

Analysis of Opportunities and Unmet Needs

To

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