BUSINESS & TECHNOLOGY INNOVATION REPORT

Week 32

2014

Prepared by

Ferhat Ünlükal

10/8/2014

BUSINESS & TECHNOLOGY INNOVATION REPORTWeek 32

Headlines

Consumer Electronics (CE)

The total Smart TV gesture recognition market is expected to reach $479.88 Million by 2018 growing at a CAGR of 131.26% from 2012 to 2018.

ICT

Apple has officially closed its $3 billion deal to acquire Beats.

Nokia Systems is acquiring part of the wireless networks business of Panasonic Systems Networks Co. Ltd.

HARMAN announced that new orders from global automakers in July 2014 totaled US$1.3 billion.

The global smart cities market is expected to grow from $654.57 billion in 2014 to $1,266.58 billion by 2019, at an estimated Compound Annual Growth Rate (CAGR) of 14.1% from 2014 to 2019.

The five largest notebook vendors' combined shipments in July decreased 25% on month.

The cloud security market is expected to grow from $4.20 billion in 2014 to $8.71 billion in 2019.

Semiconductor Industry

IBM unveiled what it's calling the world's first neurosynaptic computer chip, a processor that mimics the human brain's computing abilities and power efficiency.

Software Industry

Emu announced that it was being acquired by Google.

Facebook has acquired PrivateCore, a security startup focused on encryption and malware prevention.

Hospitality and Healthcare Industry

Siemens plans to sell its hospital IT business to Cerner Corp.

Total DS market is expected to reach $14,875.6 million by 2020 at an estimated CAGR of 8.94% from 2014 to 2020.

Retail and Payment Industry

Gemalto NV is to buy U.S.-based data protection specialist SafeNet for $890 million.

Square plans to announce that it has acquired San Francisco-based Caviar.

PTL International, the technology subsidiary of Hili Ventures, has acquired APCO Limited.

The global market for NFC, in terms of revenue, was valued at USD 1.07 billion in 2012 and is estimated to grow at a CAGR of 43.7% during the forecast period from 2013 to 2019.

EMV/smart payment card volumes reached shipment levels totaling 1.67 billion in 2013, an increase of 27% when compared to 2012.

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Consumer Electronics (CE)

CE Market

Gesture Recognition for Smart TV Market

According to a new market research report "Gesture Recognition For Smart TV Market by Software (2D & 3D Image Sensor), Hardware (Image Sensor, IR Proximity Sensor, IR Temperature Sensor, Light Sensors, & Semiconductor ICS), And Geography (Americas, EMEA, & APAC) - Analysis & Forecast to 2013 - 2020", published by MarketsandMarkets, the total Smart TV gesture recognition market is expected to reach $479.88 Million by 2018 growing at a CAGR of 131.26% from 2012 to 2018.

ICT Industry

Apple

Acquisition of Beats

Apple has officially closed its $3 billion deal to acquire Beats.

The iPhone maker posted a page on its site on Friday, announcing that the deal has officially closed. Apple provided no insight into what it has planned for Beats now that it owns the company, but did welcome the firm "to the family."

Apple’s stock performance

Nokia Siemens

Acquisition of Panasonic

Nokia Systems is acquiring part of the wireless networks business of Panasonic Systems Networks Co. Ltd. The two companies signed last week a memorandum of agreement to make way for that.

 A press statement by the Espoo, Finland-based data networking and telecoms equipment vendor said the agreement involves purchase of the Osaka, Japan-based vendor's mobile phone (LTE/3G) wireless base system station system business for

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operators as well as its related wireless equipment system.

Harman

Connected Car

HARMAN, the premium global audio and infotainment group, announced that new orders from global automakers in July 2014 totaled US$1.3 billion.

As building automation and information technology converge, wireless technology is providing a range of potential benefits for commercial building owners and managers. While building automation and controls have been used for decades, wireless communication systems are becoming the catalyst for enabling more granular control over building systems, without many of the design and labor challenges involved with running traditional cabling to support communications and/or power. Click to tweet:According to a new report from Navigant Research, shipments of wireless control nodes for commercial buildings will grow from 12.9 million in 2014 to 57.4 million by 2023.

Harman’s stock performance

ICT market

Smart City Market

The study reports that the global smart cities market is expected to grow from $654.57 billion in 2014 to $1,266.58 billion by 2019, at an estimated Compound Annual Growth Rate (CAGR) of 14.1% from 2014 to 2019.

The main long-term drivers of smart cities are linked with the economic growth of a region. In case of mature markets, the regions boast with high engaged citizens, sophisticated and multi-layered government and access to high innovations. In case of emerging markets, the region focuses on developing more smart cities as they lack proper infrastructure facilities while competing for global attention.

Notebook shipments

The five largest notebook vendors' combined shipments in July decreased 25% on month while the three largest ODMs' combined shipments also slipped 17%, according to Digitimes Research.

Hewlett-Packard (HP) and Lenovo saw over 30% declines while Acer and Asustek Computer saw roughly 20%. Dell, however, saw an increase in shipments.

In terms of ODMs, Compal saw a 20% decline while Wistron saw an 11% decline.

Despite the declines for notebook vendors and ODMs, their shipments from January-July 2014 have overall increased over the same period in 2013.

Chromebooks meanwhile reached 1.5 million in shipments during the second quarter of 2014 to hold a 3.7% share in overall notebook shipments, up from 2.4% in the previous quarter. Samsung Electronics and Acer are the main

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suppliers of the technology, currently holding a 80-85% share in the market, addedDigitimes Research.

Cloud Security Market

The cloud security market is expected to grow from $4.20 billion in 2014 to $8.71 billion in 2019 with a CAGR of 15.7% during the forecast period 2014-2019.

Semiconductor Industry

IBM

Neurosynaptic Computer Chip

IBM unveiled what it's calling the world's first neurosynaptic computer chip, a processor that mimics the human brain's computing abilities and power efficiency.

Known as TrueNorth, IBM's chip could cram supercomputer-like powers into a microprocessor the size of a postage stamp. Rather than solving problems through brute-force mathematical calculations, like today's processors, it was designed to understand its environment, handle ambiguity, and take action in real time and in context. Plus, it could be among the most power-efficient chips in the history of computing, enabling new types of mobile apps and computing services, IBM principal investigator and senior manager Dharmendra Modha said in an interview.

Modeled after the human brain, the TrueNorth chip incorporates 5.4 billion transistors, the most IBM has ever put on a chip. It also features 1 million programmable neurons and 256 million programmable synapses. That's far lower than the 100 billion neurons and 100 trillion to 150 trillion synapses in the human brain -- but still enough, Modha

said, to run devices that could, for example, proactively issue tsunami alerts, do oil-spill monitoring, or enforce shipping lane rules. And all that happens while consuming just 70 milliwatts of power, about the same as a hearing aid.

The TrueNorth chip is the core element of IBM's cognitive computing program, which is known as SyNapse.

IBM’s stock performance

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Software Industry

Google

Acquisition of EMU

Emu announced that it was being acquired by Google. The smart messaging service mines your conversations and surfaces relevant information like restaurant and movie reviews. Plus you when you receive or send a message with a time or day (for example: let’s get lunch on saturday), the app gives you the option to create a calendar event based on that information with just a tap.

Google’s stock performance

Facebook

Acquisition of PrivateCore

Facebook has acquired PrivateCore, a security startup

focused on encryption and malware prevention, according to a blogpost by PrivateCore chief Oded Horovitz.

According to Horovitz, Facebook will “deploy” PrivateCore’s “technology into the Facebook stack to help protect the people who use Facebook.”

PrivateCore was backed by Foundation Capital, a VC firm that also invested in Pocket, AdRoll, and SpoonRocket. PrivateCore was founded by ex-VMware and ex-Google staff.

Facebook’s stock performance

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Hospitality and Healthcare Industry

Siemens

Selling hospital IT business to Cerner

German engineering group Siemens plans to sell its hospital IT business to Cerner Corp, a U.S. provider of healthcare IT services, for $1.3 billion in cash, the two companies said.

Siemens’s stock performance

Hospitality and Healthcare Market

Digital Signage

According to a new report "Digital Signage Market by Hardware, Software (Edge Server, Distribution & Scheduling, Content Management), Application (Commercial, Infrastructure,

Institutions, Industrial), Products (Indoor & Outdoor) & by Geography - Forecast to 2014 - 2020", published by MarketsandMarkets, the total market is expected to reach $14,875.6 million by 2020 at an estimated CAGR of 8.94% from 2014 to 2020.

Retail and Payment Industry

Gemalto

Acquisition of Safenet

Gemalto NV, the digital security company that makes smart chips for mobile phones, bank cards and biometric passports, is to buy U.S.-based data protection specialist SafeNet for $890 million (529 million pounds), it said on Friday, in a move set to boost its earnings and reach.

Gemalto’s stock performance

Square

Acquisition of Caviar

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Square is on a mission to diversify, and it’s turning to the red-hot food delivery industry to do so.

The payments company run by CEO Jack Dorsey plans to announce this week that it has acquired San Francisco-based Caviar, according to a person familiar with the deal. Caviar runs a service that lets consumers order meals to be delivered to their homes or offices from restaurants that don’t normally offer delivery.

PTL

Acquisition of APCO

PTL International, the technology subsidiary of Hili Ventures, has acquired APCO Limited, the Malta-based market leader in automation products and payment solutions.

This is PTL International’s second key acquisition this quarter, following the announcement on July 1 of its purchase of SAD, Poland’s largest retail network of Apple products.

With APCO under its umbrella, PTL International now boasts a knowledge base of more than 400 people, mostly IT professionals, based in seven territories: Malta, Poland, Latvia, Libya and Dubai, and in Hungary and Romania through a joint venture with VJ Salomone. PTL International’s annual turnover will now exceed €100 million.

Retail and Payment Market

NFC Market

According to a new market report published by Transparency Market Research "Near Field Communication (NFC) Market (By Products - NFC Controller ICs (chips), NFC Tags, NFC Readers and NFC Secure Elements; By Applications - Payments, Ticketing, Booking, Data Sharing, Services, Authentication and Access Control, Healthcare, Games and Toys, and Others) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019", the global market for NFC, in terms of revenue, was valued at USD 1.07 billion in 2012 and is estimated to grow at a CAGR of 43.7% during the forecast period from 2013 to 2019. The growing adoption of NFC technology in smartphones emerged as the most significant growth driver for NFC market. In 2012, North America was the largest market for NFC which held a share of around 32% in terms of revenue owing to the significant demand for contactless payments and early implementation of technology.

 EMV/Smart Payment Card

EMV/smart payment card volumes reached shipment levels totaling 1.67 billion in 2013, an increase of 27% when compared to 2012. This exceptional growth was primarily driven by the “China effect” as it continues to migrate to its PBOC standard. Additional growth will come from EMV migration in the United States and increased contactless adoption in Europe. Moving forward ABI Research expects a doubling of worldwide shipments, with 3.3 billion forecast in 2019.

In 2013, 442 million smart payment cards with the PBOC specification shipped into China. Of that total, 56% were contactless, with the remainder primarily made up of contact-based payment/social security

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cards. If we discount China, worldwide YoY growth would have been just 8.5% between 2012 and 2013, which highlights the effect this single country is having on the overall worldwide picture.

References

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