Roland Berger views on technologies and French position

Paris, June 2016

Sectors of the Future

2

To identify the possible future innovations of every sector, we have analyzed how their different factors of production could evolve

Identification of future technologies – Illustrative

Source: Roland Berger

Chemicals

Automotive

Aerospace

Machinery

Sectors

Factors of production

LaborHumans, living

CapitalMachines, equipment

ResourcesNatural resources, energy, materials

InformationKnowledge, use of data, communications

Biotechnologies Advanced materials

Autonomous carElectric car

Electric satellite

Robots

60 technologies identified out of 80+ technologies

reviewed

…

…

…

…

48 s

ecto

rs1)

1) Corresponding to the 48 sectors (INSEE's sub-sectors – i.e. groups) identified as important for the French economy

3

InformationCapitalResources/ energyLabor

We have identified 60 new technologies that will impact those sectors considered as important for the economy (1/4)Future technologies by factor of production

Source: DGCIS, interviews, press review; Roland Berger

> Biotechnologies> Cell and tissue engineering> Rapid diagnosis technology> Telemedicine> Medical imaging> Microbial management system technology

> Robots> Nano electronics> Internal combustion engine> Turbo-machines> Mechatronics> Power electronics> Optoelectronics and photonics> Electric car> Electric aircraft> Electric satellite> Sensors and sensing systems> Storage technologies and onboard

management of energy> Embedded system> Aircraft automation> Train automation> Aircraft electrification> Cabine digitalization> Autonomous car

> 3D printing and rapid manufacturing> Thin film deposition> Micro process engineering> Catalysis> Composite materials> Advanced materials> Membrane technology> Bio sourced building materials> Non-destructive testing> Smart grids> Biomass energy> Offshore wind> Deep geothermal energy> Solar PV> Concentrated solar power> Marine energy> Fuel cell> Hydrogen technology> Stationary storage of electricity> Building insulation> Water treatment/ sanitation> Water desalination> Air treatment> Ecological pre-assembled building> Clean up of soil and polluted sites> Treatment of polluted sediments> Green chemistry> Biofuels (2nd and 3rd generations)

> Wireless technologies> 3D visualization and virtual reality> High speed networks> Connected devices (RFID, NFC)> Human-machine interface> Super calculators> Digitalization technologies> Cloud computing

More efficient consumption of resources

More accurate decision making process

Lower capital cost / Higher production time (OEE1))

Higher availability of workforce

1) Overall Equipment Effectiveness

4

We have identified 60 new technologies that will impact those sectors considered as important for the economy (2/4)

Future technologies by sector

Source: DGCIS, interviews, press review; Roland Berger

Sector Technology

> Aircraft automation> Cabine digitalization> Composite materials> Electric aircraft> Electric satellite> Embedded system> Turbo machines> Internal combustion engine

Aircraft and Spacecraft

Automotive

> Autonomous car> Composite materials> Electric car

Chemicals

> Biotechnologies> Advanced materials> Biofuels (2nd and 3rd

generations)> Catalysis> Cell and tissue

engineering> Clean up of soil and

polluted sites> Composite materials

> Green chemistry> Hydrogen technology> Microbial management

system technology> Treatment of polluted

sediments> Water desalination> Water treatment /

sanitation

Sector Technology

> 3D visualization and virtual reality> Cloud computing> Connected devices (RFID, NFC)> Digitalization technologies (e.g.: scanners)> Human-machine interface (e.g.: joysticks, touch screens)> Super calculators> Wireless technologies

Computers and office machinery

Electrical motors and machinery

> Mechatronics (conversion systems)> Power electronics> Smart grids (power electronics)> Solar PV (regulator)

Food and Beverages

> Biotechnologies> Catalysis> Membrane technology

5

We have identified 60 new technologies that will impact those sectors considered as important for the economy (3/4)

Future technologies by sector

Source: DGCIS, interviews, press review; Roland Berger

Sector Technology> 3D printing and rapid

manufacturing> Air treatment (e.g. filter)> Clean up of soil and

polluted sites (venting)> Concentrated solar power> Deep geothermal energy> Marine energy> Micro process

engineering (e.g. reactor)

Machinery, Equipment, Appliances

Sector Technology

> Advanced materials> Composite materials> Ecological pre-assembled buildings

Mineral-based Products (non-metallic)

Optical and Photographic Equipment

> Concentrated solar power> Digitalization technologies> Optoelectronics and photonics

Railway and Equipment

> Composite materials> Train automation> Electric engine> Internal combustion engine> Cabine digitalization

> Offshore wind (turbines)> Robots> Stationary storage of

electricity> Thin film deposition> Treatment of polluted

sediments> Water desalination> Water treatment /

sanitation

Measuring Equipment

> Air treatment> Aircraft electrification> Building insulation> Mechatronics> Micro process

engineering> Non-destructive testing

> Rapid diagnosis technology

> Sensors and sensing systems

> Smart grids (smart meter)> Telemedicine (sensor)

Medical Equipment

> Medical imaging> Rapid diagnosis

technology> Telemedicine

6

We have identified 60 new technologies that will impact those sectors considered as important for the economy (4/4)

Future technologies by sector

Source: DGCIS, interviews, press review; Roland Berger

Sector Technology> Bio-sourced building

materials> Composite materials

Rubber and Plastic Products

Sector Technology> Connected devices (RFID, NFC)> Mechatronics> Smart grids (communication devices)> Telemedicine (communication devices)> Wireless technologies

Textiles and Apparel

Transmitters and Routers

> 3D visualization and virtual reality (e.g. Google glasses)

TV Radio Equipment

> Fuel cell> High speed networks> Mechatronics> Offshore wind> Smart grids> Solar PV (inverter)

Semiconductors, Circuit Boards, LCD

> Embedded system> Human-machine interface> Marine energy> Mechatronics> Nano electronics

(semiconductor)

> Offshore wind (transformer)> Power electronics> Solar PV (module)> Storage technologies and

onboard management of energy

Shipbuilding

> Internal combustion engine

Wire, Cable and Batteries

Wood Products

> Advanced materials> Biotechnologies

> Stationary storage of electricity (battery)

> Storage technologies and onboard management of energy

> Bio-sourced building materials> Ecological pre-assembled buildings

7

Description French playersFrench capabilities IllustrationTechnology

Despite global competition, French players play a key role in the development of new aerospace technologies (1/2)

Aircraft automation

Use of control systems and information technologies reducing the need for human (Flight and air traffic control operations)

Cabin digitization (Connected aircraft)

Air Traffic Management Systems

Aerospace

Description of related enabling technologies

Advanced composite materials

Source: DGCIS, Press, Xerfi; Roland Berger

> Navigational accuracy

> Infrastructure cost reduction

> Better traffic regulation

Leader with a dominant position in ATM Solutions

Leading position but growing threat from new entrants

Major industrial players and strong R&D capabilitiesHigh Low

> Weight savings for aircraft structure

> Fuel efficiency> Fewer

maintenance and repair costs

Use of expensive, high-performance resin systems and high-strength, high-stiffness fiber reinforcement

Technologies to collect data and leverage analytics from the airframe and key systems, in an attempt to offer “Big Data” solutions for airlines

In-Flight Entertainment (IFE)

Composite aerostructure

> Better customer services and experience

8

Description French playersFrench capabilities IllustrationTechnology

Despite global competition, French players play a key role in the development of new aerospace technologies (2/2)

All-electric propulsion satellite

Generic name encompassing all of the ways of accelerating a propellant using electrical power

Turbo machinery

Electrically powered spacecraft propulsion

Aerospace

Description of related enabling technologies

Source: DGCIS, Press, Xerfi; Roland Berger

> Potentially disruptive cost savings that have implications across the satellite value chain (spacecraft mass and launch costs)

Co-Leaders with a strong position despite competition from US Satellite Prime Manufacturers

High Low

> Engines that are more reliable, quieter, greener and less expensive

New-generation engines (LEAP Aircraft Engine)Well-positioned players despite a severe global competition

Machines that transfer energy between a rotor and a fluid, including both turbines and compressors

9

French players seem well positioned on electric cars but the technological gap with US players is increasing for autonomous cars

Autonomous car

Combination of systems that allow the vehicle to pilot, guide and take decisions with limited or no human intervention

Google autonomous carLaser sensor scanning 360 degrees around the vehicle for objects

Processor reading the data and regulating vehicle behavior

Wheel hub sensor detecting the number of rotations to help determine the car's location

Radar measuring the speed of vehicles ahead

Orientation sensor tracking the car's motion and balance

Automotive

Description of related enabling technologies

Description French playersFrench capabilities IllustrationTechnology

Large technological gap with the US (Google)

Electric car Propulsion by one or more electric motors, using electrical energy stored in rechargeable batteries or another energy storage device

Well positioned players (Bolloré Autolib)

Power electronics and controller

Single piston rotary engine

Lube-oil system

Permanent magnet synchron machine Antifriction-bearing

shaft

Electric engine

Connected car

Presence of devices connected to other devices or to networks and services which can be within or out of the car

Ubimobility program for sending French SMEs to the Silicon Valley1)

Connected car >Navigation: traffic, live weather>Safety and security: anti theft, emergency & breakdown calls>Entertainment: Wi-Fi, live TV…>Convenience: autonomous parking, eco-driving, remote control>Maintenance: usage based insurance, remote diagnostics

1) Joint program by Business France and Bpifrance

Source: Interviews, DGCIS, INSEE, CCFA; Roland Berger

High Low

10

Innovations in the chemistry industry could bring greener sourcing, optimization of waste and production of biodegradable products

Chemicals

Description of related enabling technologies

LEAP jet engine by GE aviation Materials with superior performance in one or more characteristics that are critical for the application under consideration (especially nanomaterials)

Source: Interviews, INSEE, DGCIS, UIC; Roland Berger

> Mainly using Ceramic Matrix Composites for lower fuel burn and emissions– As strong as metal– Much lighter than metal– Withstand higher

temperatures

> Use of enzymes able to recognize enantiomeric forms of complex molecules

> Use of micro-organisms able to transform biomass or minerals

> Use of green resources > Production of eco

friendly materials or products (recyclable plastic, …)

Advanced materials

Engineering focused on the design of products and processes that minimize the use and generation of hazardous substances

Green chemical reactionsGreen chemistry

Fabrication of chemical products and bioenergy Use of living cells and/or their enzymes to create industrial products

Biotech (white)

Push from regulatory constraints

Few French enzymes producers and growing biotech in Asia

Driven by the aerospace industry with stronger and lighter materials for aircrafts

Description French playersFrench capabilities IllustrationTechnology

High Low

11

Description French playersFrench capabilities IllustrationTechnology

Driven by innovations in transportation sector, French players are well-positioned to capture market shares

Mechatronics Synergistic combination of precision mechanical, electronic, control, and systems engineering, in the design of products and manufacturing processes

Power electronics

CATIA CAD Software (Dassault Systems)

Electrical motors & machinery

Description of related enabling technologies

Source: DGCIS, Press, Xerfi; Roland Berger

> More efficient design processes

> Optimized performance, productivity, reliability

> Cost reduction

Leaders with a strong position in the growing market of mechatronic systems

Key players on the design and integration of components

High Low

Solid-state energy conversion technology that enables efficient and agile processing and control of electrical power

High-Voltage Direct Current (HVDC - Alstom)> High efficiency> High reliability> Long life and

less maintenance

> Flexibility in operation

12

Innovations could improve food and beverages preservation and nutritional quality

Biotech (white)

Use of living cells and/or their enzymes to create agro-industrial products

Food and beverages

Description of related enabling technologies

Food transformation with micro-organisms

Microbiological analysisMicrobe agri-food

Monitoring of microbian ecosystem

Source: Interviews, INSEE, DGCIS, ANIA, Agreste; Roland Berger

> Monitoring of hygiene in food production companies

> Investigating the performance of micro-organism in and around food

> Use of micro-organisms able to transform biomass

> Use of enzymes able to recognize enantiomeric forms of complex molecules

Catalysis Speed up of chemical reaction, but no consumption by the chemical reaction

Food transformation with enzymesStrong R&D but few French players on production side and few applications

Few French enzymes producers and growing biotech in Asia

Strong R&D but few competencies transferred to the industry

Description French playersFrench capabilities IllustrationTechnology

High Low

13

Many French players look into new technologies but investments in productive base should increase to fully embrace these opportunities

Volkswagen robot arm

Description of related enabling technologies

3D printer

Source: Interviews, DGCIS, INSEE, SYMOP; Roland Berger

Technological advance of Japan and Germany

Decreasing investment in productive capacities

Competencies in complex systems engineering

Numerous dynamic SMEs

Machinery, Equipment, Appliances – Manufacturing

Description French playersFrench capabilities IllustrationTechnology

> High-precision flexible robot arm

> Gravity-reduction mode to help lifting heavy parts

> Safety to work alongside operators thanks to collision sensors

> Improved prototyping and small series production capabilities

> New design capabilities with new component capabilities like weight optimization or optimized heat transfer

> Giving new functionalities to materials (self cleaning, adhesive ..)

> Improving materials performance (anticorrosion, resistance for chemicals …)

> Multi-core processors used within integrated systems

> Embedded software> Smallest possible

Robots Enhanced senses, dexterity, and intelligence used to automate tasks or augment humans

3D printers Process for making a physical object from a three-dimensional digital model, by laying down many thin layers of a material (plastic, metals …)

Micro process engineering

Chemical or physical processes inside channels with diameters < 1mm

Thin film deposition

Placement of thin films of material onto metal, ceramic or semiconductor substrates

High Low

14

France has 3 leaders in water and air engineering technologies thanks to active public-private research but is lacking players in equipment

Description of related enabling technologies

Source: Acenergie, Pure Effect Environment Solutions, Press review, DGCIS; Roland Berger

Only 1 French large company among installers for industrial smoke treatment

Advanced regulatory framework fostering research and good practices

Two French world leaders but growing competition from Asia

Three French world leaders & specialized "pôles de compétitivité"

Machinery, Equipment, Appliances – Water and air treatment

Description French playersFrench capabilities IllustrationTechnology

>Treatment of the air via the transfer and interaction of the polluting compounds with a porous material

>Injection of air in the soil so that the polluting elements comes up and are then absorbed

>Water is pressurized and circulates trough tubes of 1nm of diameter

> Semipermeable membrane used to remove larger particles from drinking water

Air treatment > Air treatment aims at reducing concentration of primary, secondary and biological pollutions (mold, allergen…)

> Different technologies exist: classic (air goes through a filter); adsorption; photocatalysis

Clean up of soil and polluted sites

> In-situ depollution consist into treating soil without any displacement (i.e. no transport)

> Most common in-situ techniques are venting, phytoextraction, chemical oxidation…

Water desalination

> Two techniques used to remove salt from water: reverse osmosis and distillation

> In 2010, 60% of the sites

worldwide use reverse osmosis

Water treatment / sanitation

> 33 substances considered as the most toxic ("priority" list)

> Emergent substance appear (pharma, cosmetic…)High Low

Treatment by adsorption

Venting

Reverse osmosis site

Treatment by nanofiltration

15

Renewable energy technologies have great development potential thanks to geography and political objectives but lag behind leaders

Description of related enabling technologies

Source: France Energies Marines, Wind Power System website, Press review, DGCIS; Roland Berger

Risk of predominance of foreign constructors of heat pump technology

One of the biggest potential with French large maritime facade but facing strong local opposition

Complex judiciary and administrative environment

Machinery, Equipment, Appliances – Energy production

Description French playersFrench capabilities IllustrationTechnology

>High temperature geothermal energy with temperatures higher than 150 degrees (reservoir located between 1500 and 3000 m deep)

>France is targeting 6 GW of installed capacity by 2020 (Grenelle de l'Environnement)

>Installatio nof hydroliens in Paimpol-Bréhat (6 MW) by EDF

>Tides are more predictable than wind energy and solar power

Deep geothermal energy (heat pump)

> Technology extracting the heat stored in the subsoil for two main applications– Electricity generation– Heat generation

Offshore wind (turbines)

> Off-shore wind turbines follow the same principle as on-shore turbines

> Mechanical energy is transformed into electric energy and then transferred to earth by submarine cables

Marine energy > Technologies allowing to produce renewable energy from resources from sea

> Three major technologies– Tidal energy conversion– Wave energy conversion– Thermal energy

conversion

High Low

Off-shore park in France

Tidal energy conversion

High temperature geothermy

16

Measuring equipment technologies are overall mastered by the French industry but lack investment for larger-scale development

Linky counter

Description of related enabling technologies

Source: Press review, DGCIS; Roland Berger

Lack of sufficient investment and of clear development strategy

> Strong competition from US and Japan

> Lack of investment

Dynamic network of SMEs leaders in this segmentStrong private and public research centers (CSTB)1)

Measuring equipment

Description French playersFrench capabilities IllustrationTechnology

>Smart electric meters>Pilot tests launched in

2007>Generalization of the

use of the smart meters in France voted in August 2015

>Sensor used to control the quality of the air's evolution near a highway

>Development of "smart" frontages able to adapt to the external environment (acoustic and thermic insulation)

>Provides information on the material/ object structure without any penetration

Smart grids > Sensors providing additional services or functionalities on top of the measures (e.g. remote control, auto-test, calculation capabilities,…)

Sensors and sensing systems

> Systems conducting a measure and including the detection, transmission and analysis of the acquired data

> Three types of sensors: physical, chemical and biological

Non-destructive testing

> Methods allowing to characterize the integrity of structures or materials without damaging it

Building insulation

> Envelop of a building - interfacing with the external world

> Includes walls, ceilings, windows, doors…

High Low

Air control

X-Ray control

Building insulation

1) CSTB: Centre scientifique et technique du bâtiment

17

France has a leading position in R&D for composite and advanced materials as key users are mostly aerospace players

Description of related enabling technologies

Source: Press review; Press review, DGCIS; Roland Berger

> Small market (Vs. China/India)

> But good positioning at a global scale with over 1,000 SME

> Leader in terms of research on nanotechno-logies (220+ laboratories)

> Leader in term of high-performance materials

Mineral-based products (non-metallic)

Description French playersFrench capabilities IllustrationTechnology

> Low density, high hardness and superior thermal and chemical resistance

> Used for aircraft engine, brake discs, fuel cells, vehicle & body armors, heat shields, and so on

> One-atom thick layer of carbon arranged in a honeycomb lattice

> About 207 times stronger than steel by weight, conducts heat and electricity efficiently and is nearly transparent

Composite Materials

> Combination of two or more materials that results in better properties than those of the individual components used alone

> High strength and stiffness, with low density, allowing weight reduction

Advanced Materials

> Nanomaterials & biotechnologies

> Functional, intelligent and high performance materials used in aerospace & defense, automotive, nuclear, or in the textile industry

High Low

> Graphene

> Ceramic Matrix Composite

1) Main users

1)

1)

1) 1)

1) 1)

18

Description French playersFrench capabilities IllustrationTechnology

Concentrated solar power

Process of generating solar power by using mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area

Digitalization technologies

> Process of converting an object, document, audio, image into a digital format

> Enabling to transmit, share and preserve data as well as computer processing

CSP stirling

Optical and photographic equipment

Optoelectronics and photonics

Generation, detection, and manipulation of lights (visible lights, gamma rays, X-rays, ultraviolet and infrared) in different devices and industries.

Source: Interviews, DGCIS, INSEE, Forthac, UIT, IHS, Xerfi; Roland Berger

OCR is the conversion of images of typed, handwritten or printed text into machine-encoded text

A parabolic solar dish concentrating the sun's rays on the heating element of a Stirling engine

Converting electrical energy to light> converting optical

signals into electrical currents

Scanners and Optical character recognition

Semiconductor lasers & Photodetectors

Very few French players but can potentially contribute to the development of the sector (up to 11% by 2050)

> Lack of private investments

> Debate around property rights and data privacy

> Strong R&D (30% in Europe)

> Demand driven by numerous industries and mostly by large groupsHigh Low

1) Public R&D players

1)1)

Description of related enabling technologies

Development of optical and photographic equipment is driven by various key industries in France but lack well positioned players

1)

19

Except for STMicroelectronics, France lacks national champions to drive development of these technologies

Description of related enabling technologies

Source: Linux Information Project, Press review, DGCIS, Nanowerk website, Intel; Roland Berger

> Lack of access to the international market

> Good expertise of specific technologies

> French leader: STMicroelectronics

> Strong foreign competition

> Lack of national champion

> Advanced competitors in Germany and USA

Semiconductors, Circuit Boards, LCD

Description French playersFrench capabilities IllustrationTechnology

>Embedded systems are included in vehicles, portable tools, spatial, defense, nuclear, video monitoring…

>Chip with billions of transistors

>Transistors can reach today less than 30 nm in size

>Used mostly for residential housing, tertiary and industry

>Can resist to extreme weather conditions and are immobile, thus reliable

Embedded system

> Combination of computer circuitry and software that is built into a product for purposes such as control, monitoring and communication without or with limited human intervention

Nano electronics (semiconductor)

> Use of nanotechnology in electronic components

> Application in a large variety of high tech products (computers, memory storage, optoelectronics, quantum computers, medical diagnostics…)

Solar PV (module)

> Light conversion into an electric current using the photovoltaic effect (creation of voltage or electric current in a material upon exposure to light)High Low

Solar power station

Nano chip

20

Description French playersFrench capabilities IllustrationTechnology

Technical textiles have opportunities to improve their usage, their attributes and their environmental impact

Smart textile Fibrous structures integrating electronic components or transferring numeric information with optimum goal of acting as human and machine interface

Advanced textile Set of soft materials composed of technical fibers (ex: carbon) offering specific attributes (light weight, softness, resistance, dryness, fire-proof …)

Textile embedded with a light sensor

Technical textile

Description of related enabling technologies

Bio-sourced textile

Environmental friendly sourcing (new fibers replacing cotton) and manufacturing

Source: Interviews, DGCIS, INSEE, Forthac, UIT, IHS, Xerfi; Roland Berger

> Lighter> More solid> Resistant to

vibrations

> Ability to receive and transfer information

> Ability to adapt to thermic, chemical reactions

Organic textiles: made of algae> Use of new

resources> Recyclable

Textile made of carbon

Demand mostly driven by the aerospace and defense industries

Dense ecosystem of players and potential buyers

Demand mostly driven by the pharma industry

High Low

21

French key players are well positioned on transmitters and routers technologies and supported by favorable public incentives

Description of related enabling technologies

Source: Decorationa.tk website, Press review, DGCIS; Roland Berger

Strong presence of French players on biggest part of the value chain (M2M design, standards definition…)

> France played key role in the definition of GSM standards

> Highly developed infrastructures

Transmitters and routers

Description French playersFrench capabilities IllustrationTechnology

>Technology based on RFID

>Short range communication (less than 10 cm)

>Used as a payment method via phone

> Increased bandwidth leading to higher data transfer rate (multiplied by 5 compared to 3G

> Latency divided by 10 compared to 3G

Connected devices (RFID, NFC)

> Different types of technologies…– Radio Frequency

Identification (RFID)– Short range

communications (Bluetooth, ZigBee…)

– Mobile technology (cellular and satellites)

Wireless technologies

> Continuous evolution of the wireless technologies: GSM (1993), 3G, LTE, WiMax Mobile, 4G

> Different applications:– Voice and data used on

mobile devices– Data used in M2M

exchanges

High Low

4G antenna

NFC (Near Field Communication) technology

22

Although they benefit from public financing wire, cable and batteries technologies lack sufficient investments to reach commercial maturity Description of related enabling technologies

Source: Press review; Press review, DGCIS; Roland Berger

> Existing network of limited number of players

> Steady public financing

> High investment costs

> Strong regulatory constraints

Diversity of technologies making mutual use of infrastructures challenging

Wire, Cable and Batteries

Description French playersFrench capabilities IllustrationTechnology

>Limited products with a commercial maturity

>Can be used in the future as decentralized electricity units (less than 1 MW)

>Capacity of electricity storage of 127 GW worldwide in 2011 (350+ sites) mainly via Pumped Storage Power Station (PSPS)

>In France, 6 major PSPS sites

>French national program "THD" (Très Haut Débit) aims at connecting 70% of the French population by 2020

Fuel cell > Systems allowing to produce electricity from hydrogen and oxygen

> The output of the process is electricity and water steam

Stationary storage of electricity

> Used to stock electricity when consumption exceeds production

> Can reach up to hundreds of MWh via Pumped Storage Power Station or Compressed Air Energy Storage

High speed networks

> Transmission over longer distances and at higher bandwidths (data rates) compared to wire cables

> Flexible, transparent fiber made by drawing glass (silica) or plasticHigh Low

Pumped Storage Power Station

Optic fiber

Fuel cells

23

Despite large quantity of wood, France lags far behind Germany and Nordic countries for wood-based buildings

Description of related enabling technologies

Source: Decorationa.tk website, Press review, DGCIS; Roland Berger

Administrative process and insurance regulations hamper the development of innovative bio-sourced building materials

Pre-assembled buildings not well developed due to poor image among consumers and lack of interdisciplinarity between building professions

Wood products

Description French playersFrench capabilities IllustrationTechnology

>Eco-friendly>Resistance to fire>High level of comfort

(hygrometry, thermic…)>Speed/ ease of

installation

> Compared to traditional construction, modular construction is:– Cheaper– Quicker and

simpler– Greener– Safer

Bio-sourced building materials

> Material made from renewable resources

> Two type of resources used– Biomass: wood, hemp,

linen– Recycled material:

cellulose wadding, wood fibers…

Ecological pre-assembled buildings

> Permanent or temporary buildings made of one or several modules

> Modules manufactured off-site then transported to the construction site

High Low

Modular building in wood

House in wood panels

24

Pharma players could develop advanced drugs and cost-effective treatments to overcome pressure on prices and public expenses

Biotechnologies (red)

Molecular modelling

Theoretical methods and computational techniques used to model the behavior of molecules (e.g. immune system)

Manipulation of microorganisms

Pharmaceutical

Description of related enabling technologies

Computer-Aided molecular modelling

MembranesMembrane technology

Engineering approaches for the transport of substances between two fractions with the help of permeable membranes

Source: Interviews, DGCIS, Xerfi, LEEM; Roland Berger

> Mechanical separation processes for separating gaseous or liquid

> No heating needed and therefore use of less energy than conventional thermal separation processes

> Storage of molecules characteristics in numerical databases

> Computer-modelling of their behaviors in specific environments

> Use of micro-organisms able to transform biomass

Biological processes for medical purpose incl. genetic manipulation of microorganisms

Lack of education and specific formations skills

Fewer launches of new molecules with decrease in production of new drugs

Most of production based abroad (USA and China) and buyout of dynamic French SMEs

Description French playersFrench capabilities IllustrationTechnology

High Low

25

High technological medical equipment improve both medical care cost and quality

Description of related enabling technologies

200 French small and medium companies

Strong competencies in a promising but competitive sector

Description French playersFrench capabilities IllustrationTechnology

Rapid diagnosis

Medical imaging

Telemedicine

Life sciences embedded systems

> Medical robotics: minimal invasive surgery performed through tubes using long instruments

> Paving the way for long lasting robotic substitutes

High Low

> Remote diagnosis and treatment of patients by means of telecommunications technology

Real-time, remote and less costly medical consultation and patient follow-up

Enables complex brain operations which could not been performed by humans alone

Massive parallel sequencing of nucleic acid fragments to address a variety of experimental questions including DNA re-sequencing, SNP discovery, detection of structural variants…

Precise anatomical visualizations with added benefits for radiologists, referring physicians and patients and reduced costs for the healthcare system

> Non invasive tests conducted at low-cost, simple to operate and read and giving results in a short period of time

> Nuclear imaging: radiopharma injected to patient

> UltraFast imaging: image acquisition 200 times faster than conventional ultrasound

Source: Interviews, DGCIS, Xerfi; Roland Berger

> Competitive clusters specialized in medical imaging

> 5% of worldwide publications

Development of French blood biomarkers

Rosa chirurgical robot

Next generation sequencing

3D medical imaging

Teleconsultation in a nursing home

Medical Equipment

26

Technologies to collect data and leverage analytics and key systems, in an attempt to offer “Big Data” solutions for airlines

Description French playersFrench capabilities IllustrationTechnology

The "train of the future" will be composed of several innovations among which automation, cabin digitalization and advance materials

Train automation Use of control systems and information technologies reducing the need for human (rail traffic control operations)

Cabin digitization

Complex systems dynamic modelling

Description of related enabling technologies

Composite materials

Source: DGCIS, Press, Xerfi; Roland Berger

> Give large infrastructure operator an unprecedented view of their asset

> Enhanced profitability through increased asset utilization

One key French player which is facing strong competition on the international market

French key player lags behind European and international competitors for trains digitalization

Low market growth compared to India or China but dynamic sector driven by aerospace demand

High Low

> Assembling of at least 2 materials non-miscible with one another

> 3 existing types: organic matrix, ceramic matrix, metal matrix

In-train entertainment

Rail equipment produced by Stratiforme Compreforme

> Better customer services and experience

> Reducing the weight and resistance of the train components at a lower price

Railway and Equipment

27

France has strong players in rubber and plastic products industry

Description of related enabling technologies

Source: Press review; Press review, Study "Technologies clés 2015"; Roland Berger

> Many innovative SMEs

> But small integration compare to more advanced countries

> Good positioning at a global scale with 1,000+ SME

> 2 world leading companies in the rubber and tire industries

Description French playersFrench capabilities IllustrationTechnology

> Bio-composite made of the inner woody core of the hemp plant mixed with a lime-based binder

> Insulating material, seven to eight times lighter than concrete

> Combination of a rubber matrix and a reinforcing material (usually fibers)

> Impact resistance, high thermal and dynamic stability, and outstanding abrasion resistance

Bio-sourced Building Materials

> Bio-sourced materials are made of renewable resources obtained from biomasses or recycled materials

> Many applications in the building industry, especially as isolation

Composite Materials

> A combination of two or more materials that results in better properties than those of the individual components used alone

> High strength and stiffness, with low density, allowing weight reduction

High Low

Reinforced rubber

Hempcrete

1)

1) Main Users

1)

1)

Plastic Products

28

Computers and office machinery industry is dominated by American actors

Human-machine interface

Permits the interaction between a human and a machine/process/ application, using an input device that controls the machine and an output device to keep the human user updated on the progress of commands

Description of related enabling technologies

3D Human-Machine-Interface (Thales)

The jaguar supercomputer Super calculators/ supercomputer

> Machine operating at the highest operational rate possible for computers

> Typically used for scientific and engineering applications that must handle very large databases or do a great amount of computation (or both)

Source: Interviews, INSEE, DGCIS, ANIA, Agreste; Roland Berger

> Owned by the U.S. Department of Energy, and generating 1.75 petaflops in performance.

> The computer used for large-scale scientific simulations of climate change and new energy technology development

> Used for airborne missions : interactive touchscreen table, providing extremely realistic 3D preview of the theatre of operations.

Cloud Computing

On a pay-for-use basis, access on-demand computing services (storage, data-centers, applications) over the internet instead of a stand alone computer's hard drive

Apple I cloud Few French actors but supply largely dominated by American actors

Strong R&D skillsGood French mathematician, demand driven by many industries, but few actors on production side

Description French playersFrench capabilities IllustrationTechnology

High Low

> Online storage, backup, and synchronization of mail, contacts, calendar etc.

> All data available iOS, Mac OS, or Windows device

Strong actors (systems integrators) with strong competencies but few of them transferred to the industry

TV Radio Equipment

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TV radio equipment new technologies are dominated by American actors although French players are emerging

Immersive augmented reality

Technology allowing real-world environments to be enriched with both digital information and digital media (from videos to 3D models)

Description of related enabling technologies

3D glasses

Source: Interviews, INSEE, DGCIS; Roland Berger

> Increasing number of applications : virtual characters in a film production, simulation of a construction project, instructions for repairing a car engine, or a reconstruction of an archaeological site, urban gaming

> Use of 4K technology in a wide range of markets : broadcasting, digital signage, and corporate boardrooms, as well as display applications in the security, military and medical verticals

4K Ultra-High Definition (or 4K UHD)

> Video format (3840 x 2160 pixels) delivering around eight million pixels in total

> Four times the resolution of full HD

4K UHD end-markets> Few French players on the electronic equipment segment

> French expertise on related markets

> Markets dominated by the USA

> Emergence of French players with strong competencies

Description French playersFrench capabilities IllustrationTechnology

High Low

TV Radio Equipment