PROXIMITY TECHNOLOGIES IN SMART CITIES The Proximity.Directory Report State Of The Proximity Industry Q4 2016

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TABLE OF CONTENTS About the report

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Proximity adopters in Smart Cities

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Proximity Solution Provider index

What’s new?

5

Bluetooth 5

26

A message from the CEO & Co-founder

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Proximity sensors deployed globally

28

Executive summary

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Beacon standards

29

What is proximity marketing?

8

Proximity products and services

30

Proximity software and technologies

31

Industry verticals

32

Proximity Solution Providers per country

33

Proximity Solution Provider categories

35

Proximity solutions in Smart Cities

10

Status of the Smart City industry

11-12

How proximity technology can benefit Smart City use cases

13 14-21

Proximity industry status

22 23-25

Methodology

36

About Unacast

37

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ABOUT THE REPORT

Purpose The aim for our reports is to give industry status updates and educate the market about the proximity industry. In addition to industry status, each report is given a specific theme, wherein we provide details about specific areas and showcase real-life use cases from the companies that have signed up to Proximity.Directory. Use All information in the report is free to use and share, as our main goal is to give insights to the industry and educate the market.

Want access to more? Interested in more details about the report? Please get in touch with us at [email protected]

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PROXIMITY ADOPTERS IN SMART CITIES

Proximity brings improvement in many areas of a Smart City

TONI PÉREZ President of 
 Visit Benidorm

“Benidorm is a pioneer in Spain by implementing a beacon infrastructure together with MOCA to deliver better tourism experiences. With the implementation of this infrastructure, Benidorm gives an impressive qualitative and quantitative leap in the management of touristic information as well as gathering valuable information on visitor behavior, such as determining how long a visit is to a particular location.”

“As Cleveland prepared to host the 2016 Republican National Convention, Destination Cleveland, the convention and visitors bureau of Greater Cleveland, capitalized on the opportunity by launching its new mobile application to create a unique experience for the more than 50,000 visitors attending the event. Utilizing proximity-based technology, Destination Cleveland’s app could offer each user a personalized visitor experience by delivering information based on DREW SHIPLEY the user’s location. The app provided critical data, Manager of Web that otherwise would have been missed, to enhance Administration & Digital the visitor experience.” Marketing at

CHRIS HAGELIN Senior Transportation Planner for the City of Boulder

“The City of Boulder’s Transportation Division hired DVmobile to design a smartphone application to collect travel behavior data from city residents. The data is used to measure the city’s progress in meeting our transportation and greenhouse gas emission goals. Based on this first application and our experience working with DVmobile’s high performing staff, the city has committed to a long-term relationship with DVmobile to create new versions of the application for other survey needs.”

“The BlindSquare initiative assists people who are visually impaired or partially sighted to navigate around the central business district (CBD) with confidence. It is great to see that Wellington is leading the way in providing technology to assist those with access needs and ensuring that everyone is able to participate equally. As the first step, Kontakt.io has installed 200 iBeacons, and we see this as just the beginning. There is great potential for this technology to be incorporated KEVIN LAVERY more widely than just within our CBD integrated into CEO at Wellington City Council our public transport systems and beyond.”

Destination Cleveland

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WHAT’S NEW?

Introducing the Proximity.Directory

We are rebranding the platform by changing the name from Proxbook to Proximity.Directory. There has been a lot of feedback from our audience who would like to see other analytics/hardware/software companies that are telling the deterministic location story, but that are not currently hosted in the directory. Therefore, we are opening up our directory to a wider audience and more companies, moving beyond a technology-specific focus. We are now welcoming all companies that are working with location analytics, location data or any other company that is offering location-related products and is focused on the deterministic user and location story.

ROMET KALLAS Product Manager Proximity.Directory

Since we released the directory in 2015, our focus has been very much on the proximity sensor eco-system. With almost 400 companies registered in the directory, it has become our duty to help these companies tell their stories and show their products. We are helping to build an industry that ends fraudulent bidstream data and inaccurate location products. Does your company operate by these same standards? Create a free profile at Proximity.Directory and tell the world what your company is about. Best, Romet

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A MESSAGE FROM THE CEO & CO-FOUNDER

Proximity.Directory is the world’s largest directory for proximity solution providers

Dear all, The proximity industry is continuing its growth in Q4, and the physical world is indexed further with proximity sensors. Predictions about marketing and technology for 2017 are putting even more emphasis on proximity and location data, as retargeting, attribution and monetization have been some of the hottest topics of 2016.

THOMAS WALLE CEO & Co-founder Unacast

In this edition, we have been focusing on Smart Cities, since the entire concept is gaining a lot of traction. The population in urban areas is going to increase a lot in the years to come, and 66% of the world’s population is predicted to be living in urban areas by 2050. The market for Smart City technology in 2016 was recorded to be at $12.1 billion, and is predicted to grow to more than $27.5 billion annually by 2023. We have already seen a lot of interesting projects coming to life, especially with the usage of proximity technology. As you will learn in this report, Smart City technology represents a huge potential for cities, governments and companies to cut costs, increase efficiency, and discover untapped revenue potential. I hope that you’ll enjoy the report and I look forward to your feedback. Best, Thomas

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EXECUTIVE SUMMARY

In the PSPi ranking, Kontakt.io has taken the lead in the hardware category, while Swirl is number one in the platform category

Smart City technology is predicted to grow to more than 27.5 billion annually by 2023

Total amount of sensors in Q4 ended up at a total of 13,074,000 deployed globally, out of which 8 million are beacons, 2.9 million are Wi-Fi and 2.1 million are NFC sensors

Although we are at an early stage, cities such as Singapore, Barcelona and New York City have already come a long way with their initiatives

Proximity Advertising Networks, Data Monetization and Retargeting were the proximity services with the highest growth through 2016

Uber started to give access to location data for organizations to better understand how to optimize traffic within cities

Google Eddystone is still growing, with more than half of the industry supporting the format, while Apple iBeacon is decreasing its share

Proximity technology will be important for Smart Cities going forward, as they give more precise and better context

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WHAT IS PROXIMITY MARKETING? The cycle of proximity marketing

Beacons

Geofencing

NFC

Wi-Fi

Proximity marketing Proximity marketing is a granular type of location-based advertising, where the communication with the consumer is timely, relevant, and personal. This can be in form of beacons, NFC and Wi-Fi. Other location-based technologies, like GPS (lat, long) are often inaccurate and do not work indoors like proximity technologies.

Mobile communication To succeed with proximity marketing, you need to provide value to the customer while ideally aligning with an overarching marketing strategy. The value provided can be anything from personalized messages sent to the user, indoor mapping and navigation to help consumers find places of interest, among others.

Retargeting & Attribution Retargeting - When the client has left the venue it is possible to retarget them, continuing the communication that was initiated at the venue. The retargeting ad is shown when the customer surfs the web or uses their favorite apps. Attribution - After the customer has been exposed to the ad, one can measure attribution. Did the customer return to the venue as a result of seeing the ad?

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Monetization The interaction between the customer and the proximity sensors generates value that can be generated through monetization of the data. The demand for proximity data is higher than ever, as marketers are increasingly more aware of data accuracy challenges that GPS possesses.

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READ UP ON PREVIOUS REPORTS Q3 Report: Airports & Transportation

Q2 Report: Sports & Events

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PROXIMITY SOLUTIONS IN SMART CITIES All use cases seen in the Report have been provided by Proximity Solution Providers that are members of the Proximity.Directory. The directory contains over 150 proximity use cases. These can be accessed on Proximity.Directory

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STATUS OF THE SMART CITY INDUSTRY 82% of the U.S. population live in urban areas Urban population are increasing, and according to studies 66% of the world population will live in urban areas by 2050. In the same research, as many as 82% of the population in U.S. already live in urban areas. Additionally, global energy consumption is predicted to rise by 56% by 2040. Traffic issues is also causing problems, with Americans being stuck in traffic for more than 8 billion hours in 2015. Many of these areas will be improved in the years to come through the use of a Smart City concepts. With these predictions, cities need to look into technological advantages to become smarter cities. Between 2014 and 2016, the global Smart City technology market grew by $3.3 billion, climbing from $8.8 billion to $12.1 billion. According research by Navigant, this growth is predicted to continue, as it will grow more than $27.5 billion annually by 2023. Here are some similar challenges cities are facing today: Emphasizing renewable energy and waste management Reducing waste of energy and water with smart management Facilitating the movement of goods within cities Coordinating data collection and analysis across systems and sectors Reducing inefficiency in parking systems and payments Optimizing traffic flows

Smart City technology predicted to grow more than 27.5 billion annually by 2023

We are still at the early stages of smart city developments. However, a lot of interest and funding started in late 2016, and big announcements and project deployments will come to life in 2017. As more pilot programs get funding, we will see a lot more Smart City projects going forward.

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SMART CITY INITIATIVES TODAY A lot of potential for cities to cut costs and be more efficient

Singapore 1M sensors

London
 >1M sensors

Barcelona 100K-500K sensors

Oslo