European GNSS Market Development: Maximizing Benefits & Opportunities

1. Gian Gherardo Calini Head of Market Development European GNSS Supervisory Authority

2. GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

3. GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

4. All players shall benefit from a huge global GNSS market … GNSS worldwide market* revenues Products & services,€bn Note: * Enabled market, i.e. including both price of services and devices Source: L.E.K. research and analysis

5. … experiencing a continuing trend of new products and services… A new digital camera on the market has a built in compass, able to geo-tag images as they are captured A navigation device specific for the trucking industry, able to provide, specific information (e.g. height restrictions, hazardous materials restrictions, points of interest) A new watch incorporates a high sensitivity GPS, allowing to monitor altitude, barometric pressure, speed and distance A GPS-based waterproof recovery and tracking device, features also always-on cellular communications for security monitoring A new ultra mobile PC, just presented in the US, works also as Personal Navigation Device Nokia has introduced a new series of mobile phones with a built-in GPS receiver with Nokia Maps application and navigation services A new software able to show nearby points of interest, as well as a capture button to record favourite routes, locations, and voice memos Source: L.E.K. research and analysis

6. Europe has a significant market share in key sectors of a relatively consolidated market … Market size of EU players by industry Products & services,% Size (€bn)* 0.5 20 >5 >80 1 >200 • Europe is a first tier player within the GNSS industry: • In the key segments of services and devices it has a global market share ranging from 27% to 42% • Europe has also a strong presence in other segments of the value chain VeryHigh VeryHigh Concentration Medium High High Medium Note: * Approximate figures Source: L.E.K. research and analysis

7. … and is therefore well positioned to exploit the benefits brought by Galileo • Galileo will bring €63bn of cumulated benefits to Europe up to 2030 • Downstream and upstream industries will increase their competitiveness • Users will benefits from launch of new services and from increased performance on existing ones • Among social benefits, a reduction of pollution as well as increased safety will be the major source of benefits Benefits for European firms, users and society Cumulated up to 2030, €bn 63 3 11 45 4 Source: L.E.K. research and analysis

8. GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

9. FP7: stimulating R&D towards market and GNSS industry progress • FP7 Strategic Objectives • Create economic value • Ensure EGNOS and Galileo competitiveness • Maximise public benefits • Project the image of Europe

10. GSA Market Development and R&D strategy - Agenda GNSS downstream market and benefits FP7 Strategic objectives GSA approach

11. R&D is a key element in our approach … Readiness level of technology, application and ideas Generation/ Concept Validation/ Demonstration Completion/ Operation Entry to Market • Awareness programme • Network events • Business plan contest • Marketing • Support to R&D • Research programmes • Joint research • Expert network • Business incubation • Incubation • Expert network • Test environment • Funding • Seed funding • VC funding • JV • M&A FP7 focus

12. We concentrate on projects and activities impacting the whole value chain … Services are becoming key to attract new customers Chipset providers Platform & receiver manufacturers Device manufacturers Content & applications providers Service providers Device makers require integrated solutions to produce complex products cost effectively Focus is on applications (more than 50% of FP7 1st call) which drive the downstream industry

13. Downstream markets opportunities have been reviewed… Road Pricing + LBS social Road Congestion LBS innovation General Aviation Com. Aviation Road VAS Road Fleet mgt. Potential Aviation airports Road Emergency Security Maritime Agriculture Surveying Rail - Timing End-to-end Concept Tech. Devp. Regulatory/ legal. Business economics Pre-market trial Product Maturity

14. …In the 1st call applications in road, aviation and LBS also via SMEs were addressed … 9.6 15

15. … while the 2nd call the main theme is to develop downstream markets via public sector adoption … • Topics covered • Road telematics with emphasis on safety • Fleet management and logistics • High precision, including agriculture • Accelerating EGNOS adoption in aviation • EGNOS in rail and maritime • Social LBS • SAR service • Education and and innovation • Objectives of the 2nd call • Stimulate EGNOS and CDDS use in EGNOS' priority segments (e.g., Aviation, Agriculture) • Prepare Galileo introduction in segments with long lead times (e.g., Other Transport) • Stimulate EU industry competitiveness in GNSS downstream markets by promoting innovation and supporting SMEs

16. FP7 will also support priority actions to stimulate markets • Promoting tools beyond R&D to accelerate market development (e.g. Contests for ideas) • GNSS Knowledge hub for Application Developers and Users • Galileo and EGNOS users’ needs monitoring • EGNOS Market Entry Actions, including EDAS Beta testing • …