(Source: Navigant Research)
- 10 20 30 40 50 60 70 80 90 100 Vision Go-to-Market Strategy Partners Product Strategy Geographic Reach Market Share Sales & Marketing Product Performance & Features Product Integration Staying Power Ex ec uti on Str ate gy
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4.4 Followers
Followers are vendors that have failed to distinguish themselves and scored below 25 in Strategy and Execution. No companies scored in the Followers category of this Navigant
Research Leaderboard.
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Section 5
COMPANY DIRECTORY
ABB Affolternstrasse 44 PO Box 8131 CH-8050 Zurich, Switzerland www.abb.com +41.43.317.7111 AGT International GmbH Lintheschergasse 7 8001 Zurich, Switzerland www.agtinternational.com +41.44.828.49.97 Cisco Systems170 West Tasman Drive San Jose, CA 95134, USA www.cisco.com +1.800.553.6387 Ericsson Torshamnsgatan 23, Kista Stockholm, 164 83, Sweden www.ericsson.com +46.10.719.00.00 General Electric 3135 Easton Turnpike Fairfield, CT 06828, USA www.ge.com +1.203.373.2211 Hitachi 6-6, Marunouchi 1-chome
Chiyoda-ku, Tokyo, 100-8280, Japan www.hitachi.com
+81.3.3258.1111
Huawei
Huawei Industrial Park, Bantian Longgang District, Shenzhen Guangdong 518129, China www.huawei.com
+86.755.28780808
IBM
1 New Orchard Road Armonk, NY 10504, USA www.ibm.com
+1.914.499.1900
Itron
2111 North Molter Road Liberty Lake, WA 99019, USA www.itron.com
+1.509.924.9900
Microsoft
One Microsoft Way
Redmond, WA 98052, USA www.microsoft.com
+1.425.882.8080
Oracle Corp.
500 Oracle Parkway
Redwood Shores, CA 94065, USA www.oracle.com +1.650.506.7000 SAP Dietmar-Hopp-Allee 16 69190 Walldorf, Germany www.sap.com +49.6227.74.7474
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Schneider Electric
35 rue Joseph Monier
92500 Rueil-Malmaison, France www.schneider-electric.com +33.1.41.29.70.00 Siemens AG Wittelsbacherplatz 2 80333 Munich, Germany www.siemens.com +49.69.797.6660
Silver Spring Networks
555 Broadway Street
Redwood City, CA 94063, USA www.silverspringnet.com +1.650.839.4000
Toshiba
1-1, Shibaura 1-chome
Minato-ku, Tokyo 105-8001, Japan www.toshiba.co.jpm
+81.3.3457.4511
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Section 6
ACRONYM AND ABBREVIATION LIST
Closed-Circuit Television ... CCTV Compound Annual Growth Rate ... CAGR Delhi Mumbai Industrial Corridor ... DMCI Electric Vehicle ... EV Fifth Generation ... 5G General Electric ... GE Global Positioning System ... GPS Information and Communications Technology ... ICT Information Technology ... IT Intelligent Operations Center (IBM) ... IOC Internet of Things ... IoT Internet Protocol ... IP Internet Protocol Version 6 ... IPv6 Light-Emitting Diode ... LED Operating System ... OS Research and Development ... R&D Smart+Connected Communities (Cisco) ... S+CC United Kingdom ... U.K. United States ... U.S.
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Section 7
TABLE OF CONTENTS
Section 1 ... 1 Executive Summary ... 1 1.1 Introduction ... 1 1.2 Evaluation Overview ... 11.3 The Navigant Research Leaderboard Grid ... 2
Section 2 ... 4 Market Issues ... 4 2.1 Market Definition ... 4 2.2 Market Drivers ... 4 2.2.1 Urbanization ... 4 2.2.2 Sustainability ... 5 2.2.3 Economic Development ... 5
2.2.4 Improving the Quality of Life in Cities ... 5
2.3 Market Challenges ... 6
2.3.1 Finance ... 6
2.3.2 Governance Challenges ... 6
2.3.3 Citizen Engagement and Resistance ... 7
2.3.4 Security ... 7
2.3.5 Technology Maturity and the Skills Gap ... 8
2.3.6 Finding the Right Standards ... 8
2.4 The Market Opportunity ... 9
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Section 3 ... 10
The Navigant Research Leaderboard ... 10
3.1 The Navigant Research Leaderboard Categories... 10
3.1.1 Leaders ... 10
3.1.2 Contenders ... 10
3.1.3 Challengers ... 10
3.1.4 Followers ... 10
3.2 The Navigant Research Leaderboard Grid ... 11
Section 4 ... 14 Company Rankings ... 14 4.1 Leaders ... 14 4.1.1 IBM ... 14 4.1.2 Cisco ... 16 4.2 Contenders ... 17 4.2.1 Schneider Electric ... 18 4.2.2 Siemens ... 19 4.2.3 Microsoft ... 21 4.2.4 Hitachi ... 22 4.2.5 Huawei ... 24 4.2.6 Ericsson ... 25 4.2.7 Toshiba ... 27 4.2.8 Oracle ... 28 4.2.9 SAP ... 30 4.2.10 ABB ... 32
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4.3 Challengers ... 33
4.3.1 General Electric ... 34
4.3.2 Itron ... 35
4.3.3 AGT International ... 37
4.3.4 Silver Spring Networks ... 38
4.4 Followers ... 40
Section 5 ... 41
Company Directory ... 41
Section 6 ... 43
Acronym and Abbreviation List ... 43
Section 7 ... 44
Table of Contents ... 44
Section 8 ... 47
Table of Charts and Figures ... 47
Section 9 ... 48
Scope of Study and Methodology ... 48
9.1 Scope of Study ... 48
9.2 Sources and Methodology ... 48
9.2.1 Vendor Selection ... 49 9.2.2 Ratings Scale ... 49 9.2.2.1 Score Calculations ... 50 9.2.3 Criteria Definitions ... 50 9.2.3.1 Strategy ... 50 9.3 Execution ... 50
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Section 8
TABLE OF CHARTS AND FIGURES
Chart 1.1 The Navigant Research Leaderboard Grid... 3
Chart 2.1 Smart City Technology Annual Revenue by Region, World Markets: 2014-2023 ... 9
Chart 3.1 The Navigant Research Leaderboard Grid... 11
Chart 4.1 IBM Strategy & Execution Scores ... 15
Chart 4.2 Cisco Strategy & Execution Scores ... 17
Chart 4.3 Schneider Electric Strategy & Execution Scores ... 19
Chart 4.4 Siemens Strategy & Execution Scores ... 20
Chart 4.5 Microsoft Strategy & Execution Scores ... 22
Chart 4.6 Hitachi Strategy & Execution Scores ... 23
Chart 4.7 Huawei Strategy & Execution Scores ... 25
Chart 4.8 Ericsson Strategy & Execution Scores ... 26
Chart 4.9 Toshiba Strategy & Execution Scores ... 28
Chart 4.10 Oracle Strategy & Execution Scores ... 29
Chart 4.11 SAP Strategy & Execution Scores ... 31
Chart 4.12 ABB Strategy & Execution Scores ... 33
Chart 4.13 GE Strategy & Execution Scores ... 35
Chart 4.14 Itron Strategy & Execution Scores ... 36
Chart 4.15 AGT Strategy & Execution Scores ... 38
Chart 4.16 Silver Spring Networks Strategy & Execution Scores ... 39
Table 3.1 The Navigant Research Leaderboard Overall Scores ... 13
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Section 9
SCOPE OF STUDY AND METHODOLOGY
9.1 Scope of Study
Navigant Research has prepared this report to provide an analysis of the current landscape of major global suppliers addressing the smart city market. The report is intended for city leaders and managers responsible for smart city projects and suppliers seeking to understand how they fit in to the overall landscape.
The major objective of this Navigant Research Leaderboard Report is to provide a timely overview of the companies involved in this market, as well as their strategy and execution in developing and marketing smart city solutions and services. Note that the company rankings capture the vendor’s standing at the time of the report and are not a retrospective of past accomplishments or an indication of future success. The ratings are likely to change rapidly as this market matures and business models continue to evolve.
Note that the report is not exhaustive. There are other global and smaller players in the market that were not included because of their specific focus on one aspect of the market or their lack of geographic reach.
9.2 Sources and Methodology
Navigant Research’s industry analysts utilize a variety of research sources in preparing Research Reports. The key component of Navigant Research’s analysis is primary research gained from phone and in-person interviews with industry leaders including executives, engineers, and marketing professionals. Analysts are diligent in ensuring that they speak with representatives from every part of the value chain, including but not limited to technology companies, utilities and other service providers, industry associations, government agencies, and the investment community.
Additional analysis includes secondary research conducted by Navigant Research’s analysts and its staff of research assistants. Where applicable, all secondary research sources are appropriately cited within this report.
These primary and secondary research sources, combined with the analyst’s industry expertise, are synthesized into the qualitative and quantitative analysis presented in Navigant Research’s reports. Great care is taken in making sure that all analysis is well-supported by facts, but where the facts are unknown and assumptions must be made, analysts document their assumptions and are prepared to explain their methodology, both within the body of a report and in direct conversations with clients.
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Navigant Research is a market research group whose goal is to present an objective, unbiased view of market opportunities within its coverage areas. Navigant Research is not beholden to any special interests and is thus able to offer clear, actionable advice to help clients succeed in the industry, unfettered by technology hype, political agendas, or emotional factors that are inherent in cleantech markets.
9.2.1 Vendor Selection
The diverse nature of smart city market means there are potentially hundreds of companies that can be considered as part of this market. This Leaderboard Report necessarily focuses on a subset of suppliers that are able to lead large-scale smart city projects spanning a number of operation areas and city services. Navigant Research excludes companies that focus on one particular industry or operational area (e.g., intelligent transportation solutions or street lighting systems).
All the companies included in the report operate globally. They also offer a portfolio of solutions that span at least two of Navigant Research’s core smart city operational areas (energy, water, building, transportation, and government). In addition, these companies were selected to provide a cross-section of infrastructure, IT, and service suppliers. While the suppliers included in the report cover a wide range of solutions and services, Navigant Research has excluded some sectors in order to allow a reasonable comparison to be made across sectors. Telecom service providers, systems integrators, building service companies, and real estate developers are among those excluded for this purpose. The selection spans North American, European, and Asia Pacific companies.
There is still considerable divergence in the types of products and solutions offered by these companies and their go-to-market strategies. Navigant Research has assessed each company in terms of its strengths relevant to its core market and to the needs of smart cities.
9.2.2 Ratings Scale
Companies are rated relative to each other using the following point system. The ratings are a snapshot in time, showing the current state of the company. These scores are likely to be fluid as new competitors enter the market and customer requirements evolve.
» Very Strong 91 – 100 » Strong 76 – 90 » Strong Moderate 56 – 75 » Moderate 36 – 55 » Weak Moderate 21 – 35 » Weak 11 – 20 » Very Weak 1 – 10
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9.2.2.1 Score Calculations
The scores for Strategy and Execution are weighted averages based on the subcategories. The overall score is calculated based on the root mean square of the Strategy and
Execution scores.
While this report uses the same criteria as the previous Navigant Research Leaderboard
Report: Smart City Suppliers (2013), the scoring has been adjusted to reflect the development
of the market. This means that in some categories, a supplier may have a lower score than in the 2013 version. In particular, the scoring in this current report rewards further innovation and development by suppliers across the smart city market and in their engagement with customers and partners.
9.2.3 Criteria Definitions
9.2.3.1 Strategy
» Vision: Measures the company’s stated goals in designing market solutions against the actual needs of customers based on the entire environment in which they will operate. Clear and compelling visions that are effectively communicated to the industry result in higher scores.
» Go-to-Market Strategy: Evaluates the company's strategy for reaching the target market, including the sales and marketing channels to be used, as well as the processes
established for informing the target market about brand differentiation and unique product value. Assesses specific innovations in engagements with city leaders and other stakeholders.
» Partners: Measures the company's established partnerships with key organizations that will provide an advantage in financial backing, sales, business, and product development. The breadth of partnerships across the potential smart city market is assessed, as are specific partnerships to address emerging requirements and gaps in the market.
» Product Strategy: Evaluates the long-term competitiveness of the product strategy as an effective solution that satisfies market requirements and meets market capacity needs. A component of this is an evaluation of the ability of the company to show innovation in product development to meet emerging market demands.
» Geographic Reach: An evaluation of companies’ ability to reach national and international customers through networks of distributors and resellers. Scores are lower if the company does not have a sales or dealer strategy suitable for sales in multiple regions.
9.3 Execution
» Market Share: Evaluates the company's current position in the smart city market as defined above, including involvement in large demonstration projects, recent sales agreements, and key customer accounts that are likely to affect sales during the next calendar year.
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» Sales & Marketing: Evaluates the capabilities of the existing company sales and marketing resources, its understanding of the most suitable target markets, its understanding of the various needs of different end users, and its ability to successfully influence customer perceptions and purchases.
» Product Performance & Features: Higher scores are given if the company’s technology is already a proven market success or delivers unique product attributes. The maturity of its smart city solutions is also taken into account.
» Product Integration: Evaluates the completeness of the company's portfolio and the level of integration of the smart city solutions. Higher scores are awarded for a common architecture and specific smart city platform offerings that have been deployed to customers.
» Staying Power: Evaluates whether the company has the financial resources to support large-scale smart city projects on a global basis.
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Published 4Q 2014
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