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Top 10 Smart Cities of Asia-Pacific by 2025

An Overview of the smart city landscape

NF9F-MT
NF9F-MT
December 20151
Contents

Section Slide Number


Executive Summary 4
Research Scope, Objective, and Methodology 17
Introduction 21
Smart City Ecosystem 34
Smart Energy Initiatives 42
Smart Technology Trends 52
Smart Building Projects 64
Smart Mobility 72
Smart Healthcare 78
Smart Governance Initiatives 85
Smart Infrastructure 91
Conclusion 98
Appendix 103

NF9F-MT 2
Introduction and Special Thanks

Frost & Sullivan’s Visionary Innovation Research Thank You


Group’s latest publication on Smart Cities will
explore the dynamics, plans and trends in such
Frost & Sullivan would like to thank the following
developments for the Asia-Pacific region. thought leaders and organizations, whose insights
helped guide the team’s research efforts:
Themes Covered

NCS Microsoft
Smart City Singapore, Director, Health Industry
Smart Cities Smart City
Ecosystem Product Management Manager, Australia
Overview Case Studies
and Models
Parking Duck Toshiba
CEO & Business VP, Transmission &
Strategy Distribution Division

Cisco Accenture
Managing Director and Managing Director,
This chapter This chapter These case studies Chief of Staff, Smart+ ASEAN Health & Public
explores the addresses funding discuss the new Connected Communities Service
vision of models, public- and emerging smart and Globalization
governments in private partnership cities and profiles
Asia-Pacific in (PPP) models, key vendors from Intel
building smart and economic the private sector. Health & Life Sciences
cites and draws policies in place to Lead, Australia
comparison with catalyse smart city
global plans. developments in
Asia-Pacific.

NF9F-MT 3
Executive Summary

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Key Findings

Smart Cities: Key Findings, Asia-Pacific, 2015

Asia-Pacific to witness 10 smart cities by 2025, of which, more than 50% will be in China. Investments in
1 infrastructure to grow from $55.6 billion in 2013 to $260 billion in 2020.

Urbanisation rates in APAC has accounted for 90% of the growth in world population in the last decade, posing a
2 critical and immediate challenge for cities and their development

While some cities in Asia-Pacific such as Jakarta and Bangkok have small-scale projects, cities such as Seoul
3 and Singapore are completely integrated and poised to be smart cities in the next 3 to 4 years.

Communication service providers and network service partners play a key role in forming the technological
4 backbone to roll-out smart cities. Singtel in Singapore and Telstra in Australia have laid out $500 million and $100
million, respectively, to enable smart city technology platforms and infrastructure.

Smart cities will thrive with dynamic business models in a disruptive environment; technology and governance will
5 be key enablers for participants in this ecosystem in Asia-Pacific.

Source: Frost & Sullivan

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Recommendations to City Councils and Governments
How to engage in the smart city ecosystem?

Complex projects require collaboration between government agencies, the


private sector, and city stakeholder constituencies such as citizens,
Consortium
universities, and not-for-profit organizations. Pooling expertise and resources
Approach from all sectors to form a consortium can help to achieve local and regional
goals.

Form a Governments can lead by example and bring together agendas by breaking
silos, or by providing zero-interest loans or revolving funds for hospitals,
charter and schools, or municipal buildings to drive smart city projects. For example, the
agenda Climate Smart Precincts work in Australia is led by the state governments.

Peer Stakeholders can conduct a peer analysis of cities at similar levels of urban
development to identify investments of companies in the same industry and
analysis of
to identify focus areas of the city council. For example, the NCS projects in
similar Singapore and Melbourne, where the level of urban and technological
cities development is similar.

Look for opportunities to pilot business models by using universities as test


Pilots to beds to measure the viability of a citywide rollout and to identify stakeholder
project value to convert pilots into bankable projects. For example, the Living Lab
rollouts initiative is being run by the Singapore Economic Development Board for
smart grid solutions.

Source: Frost & Sullivan

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Recommendations to Companies in the Private Sector
How can the private sector engage in the smart city ecosystem?

1. Identify Best Fit Business Model

Evaluate Identify best fit role based on internal Build team of experts from Finalise business model to
opportunities capabilities and future roadmap different domains operate in the ecosystem

2. Identify Strategic Partnership Opportunities

Identify city Examine resource Build a collaborative suite of Short-list opportunities to pursue and best way to
planning availability and best fit offerings to enable strategic form alliance, such as joint ventures, mergers
priorities environment alliances and acquisitions (M&As), tie-ups

3. Collaborate with the government or city council

Bid for projects Proactively engage between developers and city


Align strategic plans Evaluate and plan funding
with local data store owners to encourage the release of
to city council goals models and revenue models
government datasets

4. Create an integrated digital platform

Create an entire ecosystem that is all inclusive of Move away from siloed approach to providing
Build an integrated
applications and connects across all departments holistic integrated platforms by partnering with
open digital platform
within the city telecom service providers

5. Pilots and Rollouts

Performance review Establish revenue model and ensure return on


Implement Scale-up pilots for full-
mechanism and investment in the form of energy savings or
pilots and trials fledged horizontal rollouts
milestones fee-based model, for example

Source: Frost & Sullivan

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Key Conclusions and Future Outlook
Smart cities will thrive with dynamic business models in a disruptive environment; technology and
governance will be key enablers for participants in this ecosystem in Asia-Pacific.

Smart Cities: Key Findings and Future Outlook, Asia-Pacific, 2025

8 big smart Focus on


Networked Smarter
10 smart cities city projects in technology
infrastructure infrastructure
in Asia-Pacific emerging enablement,
and sensor with efficient So What?
by 2025 nations in governance,
networks utility systems
APAC and mobility

Collaborative Smart City Convergence of Leveraging data for Technology


Projects Competition Governance Enablement

• The traditional, silo-like • Ecosystem convergence • Smart cities will emerge • Connectivity will be a key
model is transforming to will increase between as Big Data hubs with enabler while designing
a more collaborative, energy, infrastructure, IT, data from sensors and an omni-channel
integrated service telecoms, and networks being collected, experience platform
delivery model. government stakeholders analysed, and monitored across all touch points
• Consortiums with to deliver integrated in real-time by a central including online and
different stakeholders will services. monitoring command mobile.
be established. centre.
• New business models • Data from sensors will
• Transparency of data enable private • This will be used to enable new technologies
exchange will lead to an participants to act as optimise and streamline to integrate softer
all-encompassing developers, policy city operations and aspects, such as
approach to developing makers, and/or project resolve issues in real- customer perception and
smarter cities. managers. time. citizen awareness.

Source: Frost & Sullivan

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Research Scope, Objectives, and Methodology

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Research Objectives

1 Identify the potential smart cities of the future in mature Asia-Pacific markets.

2 Identify critical smart city projects in emerging Asia-Pacific markets.

Understand and highlight the business models used by different participants in the
3 smart city ecosystem.

Identify the funding mechanisms of key smart city projects and potential returns on
4 investment.

Provide recommendations to companies and city councils on different ways to


5 participate in the smart city ecosystem.

Source: Frost & Sullivan

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Research Scope

Base Year 2015

Study Period 2015–2025

Geographical Scope Asia-Pacific

Smart city market for mobility, infrastructure, healthcare,


Industries Covered
government and security, energy, ICT, and buildings

Source: Frost & Sullivan

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Research Methodology

Research Methodology
Frost & Sullivan’s research is based on secondary and primary research data.
Secondary Research: This includes the extraction of information from existing studies and project materials
within the Frost & Sullivan database, as well as data and information gathered from technical papers, specialised
magazines, seminars, and Internet research.
Primary Research: More than 5 interviews have been conducted over the phone by senior consultants and
industry analysts with IT participants, and power and automation companies.
Smart Cities: Partial List of Companies Interviewed, Asia-Pacific, 2015

Company Designation

NCS Director, Product Management

Parking Duck CEO

IBM Vice President, Smarter Cities

Cisco Managing Director and Chief of Staff, Smart+ Connected Communities and Globalisation

Intel Health & Lifesciences Lead

Microsoft Health Industry Manager

Toshiba VP, Transmission & Distribution Division

Accenture Managing Director, ASEAN Health & Public Service

Note: This is only a sample list and is not exhaustive.


Source: Frost & Sullivan

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Introduction

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What is Smart?
Smart products and technologies can be segmented into 3 levels.

A smart product is
Basic Sensing characterised by an
Mechanism intelligent sensing technology
Smart Bandages
that is increasingly being
Level 1 integrated with Internet
technologies, thereby
allowing the product to react
Basic Sensing to and communicate with the
Mechanism + changing environment
One-way Data around it. This leads to
Communication optimal operations and
improvement in efficiency.
Level 2 Smart Chips Smart Lighting

Sensing
Mechanism +
Two-way Flow of
Data
Communication
Smart Smart Smart Smart Smart
Level 3 Clouds Windows Mobility Technology Buildings

Image Source: Dreamstime; Connected Digital World.


Source: Frost & Sullivan

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Global Definition of Smart Cities
In smart cities of Asia Pacific, green initiatives combined with technological adoption form the main drivers
for growth and development

Smart Cities: Smart Diamond to Define Smart City, Global, 2015–2025


Smart Governance

Smart cities are cities Smart Citizen


built on “smart” and Smart Energy
“intelligent” solutions and
technology that will lead
to the adoption of at
least 5 of the 8 following
smart parameters—
smart energy, smart Smart Healthcare
building, smart mobility, Smart Building

smart healthcare, smart


infrastructure, smart
technology, smart
governance and smart
education, and smart 4G
citizen.
Smart Technology Smart Mobility

Smart Infrastructure

Source: Frost & Sullivan

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Key Parameters That Will Define a Smart City in 2025 and Beyond

Smart Energy: Digital Management Smart Buildings: Automated


Smart Mobility: Intelligent Mobility
of Energy Intelligent Buildings
• Advanced traffic
• Building automation management system
• Smart grids • Intelligent buildings: (ATMS)
• Smart meters Advanced heating, • Parking management
• Intelligent energy ventilation, and air • Intelligent transport
storage conditioning (HVAC), system (ITS)-enabled
lighting equipment transportation pricing
system

Smart Technology: Seamless Smart Infrastructure: Digital Smart Governance and Smart
Connectivity Management of Infrastructure Education: Government-on-the-Go

• 4G connectivity
• eGovernment
• Super broadband
• Sensor networks • eEducation
• Free Wi-Fi
• Digital water and • Disaster
• 1 Gbps (gigabyte per waste management management
second) download solutions
speeds

Smart Healthcare: Intelligent Smart Citizen: Civic Digital Natives Smart Security: Next Generation 911
Healthcare Technology

• Use of eHealth and • Surveillance


mHealth systems • Use of green mobility
options • Biometrics
• Intelligent and
connected medical • Smart lifestyle choices • Simulation modelling
devices and crime protection

Source: Frost & Sullivan

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Asia-Pacific Smart City Landscape—Disruptive and Dynamic
These evolving trends will transform the smart city ecosystem in the region.

Challenges Upcoming Trends


Drivers Smart City Teams
1. Inadequate capital to fund 1. Urban mobility solutions
1. Urbanisation and demand smart city projects 1. Domain experts to track,
for city services 2. Device proliferation monitor, and evaluate feed
2. Constraints due to from different services
2. Focus on minimising 3. Pervasive analytics
bureaucratic procedures
carbon footprint with city councils 4. Smart governance and 2. Aggregation experts who
3. Rise of the middle class citizen services extract trends, insights, and
3. Lack of central governing analytics from these
and improving quality of life body in many cities to drive 5. Public safety and smart
incidents
4. ICT penetration these efforts security solutions

Smart Security Cities To Look Out For Key Assertions


1. Remote FIR for crime to Business Models 1. Songdo IBD 1. Smart cities is a compelling
police in Bangalore, India 1. Increased land monetization 2. Hong Kong Mega Trend
2. Citizen services in for urban sustainability 3. Singapore 2. Contribution of ICT as an
Cambodia and Vietnam 2. Public private partnerships 4. Seoul enabler is likely to increase
3. Sensors, feed, and video 3. Application- and device- 5. Sydney going forward
analytics through light centric models to integrate 6. Mega Cities of Jakarta 3. Innovation to differentiate
poles for tracking incidents multiple platforms (Bogor) and Mumbai, and leaders from followers in
in Kuala Lumpur (KL) cities in China this space
Key: FIR—First Information Report.
Image Source: Frost & Sullivan. Source: Cisco; Frost & Sullivan

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Drivers and Challenges for Smart Cities in Asia-Pacific
There are several push and pull factors that define the rate of growth of smart cities in this region

Drivers Challenges

A highly urbanised population, hyper-connected Lack of seamless technology and processes


citizens, and high ICT entrenchment that forms for free-flow and transparent exchange of
a backbone for this ecosystem. data sets across companies and government.

New greenfield cities planned in the region, No presence of a centralised command


such as Tianjin in China and Songdo in South centre or authority that conducts project
Korea. management and progress monitoring.

Smart Cities in
Asia-Pacific

Local urban development initiated by Shortage of capital leading to inadequate


governments and city councils in the form of funding of smart city projects such as those in
mobility and security. Malaysia.

Increased ownership of smart city agenda Unstable political environment, price sensitive
among regulatory authorities, government market, and weaker economic scenarios in
agencies, and private domain participants. some emerging markets in APAC.

Source: Frost & Sullivan

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Types of Smart City Projects
Different levels of smart city development will occur in Asia-Pacific, addressing different challenges.

Types of Smart Intervention Types of Smart City Projects

Smart hubs are theme-based


1 Larger citywide systems projects such as electronic
within single solutions 1 cities and heritage cities, which
such as intelligent will have smart elements in
transport solutions. Eg. New Smart them, such as Kuala Lumpur
Shanghai Intelligent Solution and Jakarta.
Mobility Solutions
2 4 These are
2 Reconstruction of an existing cities
already built-up area Redevelopment New which are made
that is not amenable Infrastructure Smart Hubs
“smart” by
to smart retrofits Eg. technological
Cities in India 3 Brownfield interventions; for
3 Gaps in existing example,
Retrofits
infrastructure will be Greenfield Singapore,
addressed through Tokyo, and
smart solutions Eg. Hong Kong.
Singapore Jurong
district These are new, large cities built
4 New gated from scratch such as Songdo
communities with a and Tianjin Eco-City.
wide range of smart
living concepts Eg.
Songdo international
business district
Source: Frost & Sullivan

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Types of Smart Cities in Asia-Pacific
While some cities in Asia-Pacific such as Jakarta and Bangkok have small-scale projects, cities such as
Seoul and Singapore are completely integrated and poised to be smart cities in the next 3 to 4 years.

Levels of Smart Infrastructure


• Seoul and
Singapore have
Smart Cities advanced smart
Interconnects
city initiatives that
different Citywide are promoted by
infrastructure modes their
and stakeholders
Integrated
governments.
across city systems Platform
• Cities in China
have integrated
Integrated data analytics
Optimises the use of capabilities and
City interconnected systems sensor networks
by offering more pro- Intelligent that relay all
active real-time Infrastructure infrastructure-
intelligent city services related
Systems information from
the various
Semi- platforms.
Fitted with
automated sensors, • Jakarta and
modules, and Instrumented Manila are setting
Infrastructure up traffic and
transponders to Brick and Steel parking
gather data on Infrastructure management
usage across sensors.
infrastructure

Source: Frost & Sullivan

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Asia-Pacific Mature and Emerging Smart Cities Map
Asia-Pacific to witness 10 smart cities by 2025, of which, more than 50% will be in China. Investments to
grow from $55.6 billion in 2013 to $260 billion in 2020.

Smart Cities: Mature and Emerging Smart Cities, Asia-Pacific, 2025


Beijing

Smart cities, Asia-Pacific in 2025 Kashiwanoha

Chengdu Tianjin
Select smart city projects in 2025 Tokyo
Shanghai
Wuhan
Shenzhen
Hong Kong
Bangkok
Seoul
Kuala Lumpur
Iskandar
Manila
Smart city projects are city projects that are
being trialled and/or implemented on a
small-scale for a specific industry, public Jakarta
entity, or industry cluster, such as the
Parking Duck smart parking app in Bangkok,
Sydney
Thailand. Sydney

This list is not exhaustive. The cities


highlighted here have implemented at least Adelaide
one of six smart city aspects in their smart
city projects. Singapore
Melbourne

Image Source: Dreamstime


Source: Forbes Smart City List 2009; Innovation Cities Global Index 2012–2013; Specific Smart Project Websites for each city; Frost & Sullivan

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Asia-Pacific’s Front Runners in Smart City Development
The following 10 cities have the potential to become smart in the next 5 to 10 years

Seoul
Songdo international business district (IBD) ($40 Melbourne
billion project) with universal broadband, integrated Telstra’s involvement in bringing together smart
sensor networks, and green buildings; also U-City apps for infrastructure and traffic management.
projects in partnership with Cisco.

Singapore
Singapore’s Smart Nation agenda with $500 million Adelaide
investment by largest telco Singtel; also, significant Adelaide City Council’s Connect Adelaide initiative
focus on smart living and smart mobility through and Internet of Things (IoT) Innovation Hub to bring
involvement of IBM and LTA. together smart infrastructure solutions.

Shanghai
Hong Kong Shanghai intelligent transport systems and
Sensor networks across public and private services technology adoption leading to smart mobility
including transport, identification, and healthcare. solutions; use of robotics for healthcare and
industrial solutions.

Tokyo
Tokyo Green Building Program is aiming for 50% Beijing
reduction in energy consumption; Cap and Trade Nearby Tianjin Eco-City for renewable energy and
Program to reduce carbon footprint and emissions resource conservation to contribute to Beijing smart
from cars and buildings by 25%. city agenda.

Sydney Shenzhen
Sydney’s smart city plan led by Telstra and Optus; Highly advanced ICT integration with several
advanced smart healthcare and mHealth solutions incubation programs and innovation hubs and living
for aged care and integrated health solutions. lab projects on smart campuses and public safety.

The ranking is based on weighted scores for 5 criteria for smart cities in Asia-Pacific. These are green initiatives (25%),
technology adoption (20%), infrastructure investment (25%), health and wellness (15%), and transport and mobility (15%).
Image Source: Dreamstime; Travis Wise, CC BY 2.0; Yiannis Theologos Michellis, CC BY-SA 2.0; Yida Xu, CC BY 2.0. Source: Frost & Sullivan

NF9F-MT 22
Comparative Analysis of Smart Cities in Asia
The following depicts the top Asia-Pacific smart cities’ performance by key weighted criteria.

Smart Cities: Weighted Criteria of Key Cities, Asia-Pacific, 2015


Environmental Technology Infrastructure Health and Transport and
Initiatives Adoption Investment Wellness Mobility
City (25%) (20%) (25%) (15%) (15%)

Seoul

Singapore

Hong Kong

Tokyo

Sydney

Melbourne

Adelaide

Shanghai

Beijing

Shenzhen

High Medium Low ( ) Weightage


Source: Frost & Sullivan

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Singapore —An Aspirational Asian Smart City
Singapore aims to have 80% of all its buildings meet its minimum ‘Green Mark Certified' energy-efficiency
standards by 2030.

Key Aspects of Singapore as a Smart City, Asia-Pacific

Smart Energy Smart Citizen


• 90% to 95% of electricity to be • One-in-two residents to commute to work by
generated from natural gas public transport
• Smart grid systems already installed in • 100% population with access to sanitation
more than 30% of the households • Target to recycle 65% of waste by 2020

Smart Healthcare
• Integrated health information system
across Singapore Smart Governance
• Cloud computing models used in most Establishment of Inter-Ministerial Committee
healthcare organisations on Sustainable Development to create
Singapore’s national strategy on sustainable
development
Smart Technology
• 100% broadband penetration rate
• Initialisation of 4G LTE service
Smart Mobility
• 50% of households to have smart
• 70% of traffic to be public transport by 2020
home solutions
• Availability of real-time travel information on
Internet and mobile phones
• 40% rebate on purchases of green
vehicles, such as hybrid and electric cars

Smart Buildings
• 80% of all its buildings to meet its
minimum 'Green Mark Certified'
energy-efficiency standards by
2030
• Zero energy buildings in the next 5
years
Image Source: Frost & Sullivan. Source: Siemen's Green Index; Frost & Sullivan

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Smart City Ecosystem

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NF9F-MT 25
Smart City Ecosystem and Its Components

Smart Cities Ecosystem, Asia-Pacific, 2015

Smart City
Ecosystem

Revenue Models – Product and Service


Business Models and Funding Models and
Tangible and Portfolio of Smart
Roles of Participants Mechanisms
Intangible City Participants

Source: Frost & Sullivan

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Regional Insights
How differences in regulatory environment and economic outlook of different countries in the region is
shaping smart city development

Smart Cities: Mature and Emerging Smart Cities, Asia-Pacific, 2025

Japan focusses its


health initiatives on
hyper aged society
and robotics. TPPA
China: Investment in constructing Kashiwanoha implications on
city facilities, such as underground Beijing smart city
pipelines, and for urban areas to Chengdu Tianjin
development
adopt the national Internet Plus
Shanghai Tokyo
strategy to build smart cities.
Government will also improve land Wuhan Seoul
and housing policies, and Shenzhen
encourage local authorities to set Hong Kong
Bangkok
up urbanization development funds
with social and financial capital Kuala Lumpur
Iskandar
Singapore Manila

Economic
Jakarta slowdown in ANZ
will result in
Singapore is well poised to be a phased smart
smart city with 4 significant city project
categories - transportation, land rollouts
Sydney
use and environmental
management, water and
education. It is a start-up hub and Adelaide
Melbourne
has great living lab projects
making it a very easy city to start
and run businesses

Image Source: Dreamstime Source: China Daily

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Australia-New Zealand Insights

Government spending will continue to focus on development of public healthcare infrastructure, sensor
networks, traffic management and infrastructure management apps that will ease the life and well being of
its citizens

Australian economy is expected to slow down driving the need to curb costs. With the downsizing in
companies and adverse employment conditions, Australia will have a phased development of smart cities.
Involvement of city leaders and investment of city councils will drive development of smart cities. Example:
Adelaide City Council’s Connect Adelaide Program

Clinical wearable devices market will see spiralling growth as integrated platforms will be a necessity for
chronic disease management for patients with limited mobility, home-bound as well as the actively mobile
patients. The APAC medical wearable market is projected to grow at a compound annual growth of 23.3%,
and Australia is one of the countries in lead.

Australia will continue to leverage ICT to address staff shortage in providing elderly care and robotics.
Telehealth platforms, sensor networks and integrated technology platforms will be focus of all smart city
projects.

The Smart City, Smart Grid Program as a part of Australian government’s energy efficiency initiative under
the Ausgrid Consortium. Significant water usage and waste water management programs for smart building
projects built according to regulations

Note: The base year is 2015. Source: Frost & Sullivan

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India Insights

Hyper connected citizens, tech savvy population and new age residents who are interested in growth and
development of cities. Smart citizens of the future are part of several initiatives of the government such as
the Clean India movement and the Make In India initiative

Indian economy will experience an accelerated growth in all industries including infrastructure, renewable
energy, healthcare as the current government is launching multiple initiatives and forming steering
committees to drive them. Considerable foreign investments are directed towards consumer goods, solar
energy and construction of smart townships and highways.

National Health Management Information Systems is committed to drive eHealth – a Digital India initiative

In line with government’s Digital India initiative, both private and public sectors will aggressively harness
technology to establish smart city projects and drive digital movement by leveraging telecom networks and
legacy infrastructure

India will progressively work to establish a proper regulatory framework that defines telehealth standards to
monitor ethical storage, usage and sharing of data for the Indian populace. There are also initiatives to
open and leverage data sets for government analytics and city improvements.

Note: The base year is 2015. Source: Frost & Sullivan

NF9F-MT 29
China Insights

Increasing carbon footprint, urbanization and carbon emissions from industries and factories have pushed
Chinese government and its people to look for cleaner greener solutions for their cities. Citizen comfort is
the focus – healthcare, well being, commuting, workplace are key focus areas to ensure citizen comfort

Chinese government will increase their GDP on healthcare spending from 5% to 6% or more. Which means
the total amount of GDP spent on healthcare for 2016 estimated to be $687.46bn (USD-RMB exchange rate of
0.1595). Part of the funding will channel to the development of Country Hospital and Primary Health
Institution.

Expanding access to healthcare; resulting an infrastructure upgrade in Grassroot Health Institution and
County Hospital.
Changing the rules for government tender; Priority consideration will be given to local vendor during tender
process, especially for high-end medical devices and medical consumable

Chinese government will focus on creating a holistic platform in which, all hospital information, government
data, civil and public service informtation are stored electronically and are shared among agencies.

Land policy issues with respect to ownership of urban and rural land significantly affect the development of
smart cities in China

Note: The base year is 2015. Source: Frost & Sullivan

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Japan Insights

Mixed Services are being consider by MOH Japan, A scheme where the patient are allowed to receive
treatment covered by public healthcare insurance, alongside private insurance. This scheme will serve an
a stimulant to introduce latest medical equipment to those who can afford to pay extra.

Rapidly aging society is pushing development of nursing robot programs, robotic surgeries and care robots
that can assist in daily living and health

Government will shift patient care from hospital to primary health.


Cut down Unnecessary specialist consultation and over utilization of hospital facilities.
Improve cost management to create a more sustainable health system in nation with world oldest
population.

Advanced transport infrastructure and highly connected rural and urban areas through an intricate rail
network (high speed and normal) are the key levers that make Japan an integrated nation that is poised to
become the smart nation of the future

Increased government expenditure and focus on green agenda to reduce carbon emissions through Cap &
Trade Program, Car Sharing Program, Green Buildings Program, etc.

Note: The base year is 2015. Source: Frost & Sullivan

NF9F-MT 31
Smart City Business Models in Asia-Pacific
Build operate manage (BOM) and build operate transfer (BOT) models are being used in mature markets for
smart city project management and execution.

1 The smart city planner appoints a


2
trusted partner to build the city
The smart city planner independently builds the
infrastructure and provide smart city services
city infrastructure and delivers smart city
for a particular area for a set time period.
services. The operation and maintenance of the
After completion, the operation is handed
services are fully under the planner’s control.
over to the smart city planner.
Example: Adelaide City Council has
Build Example: The Smart Nation program by
launched the “Connect Adelaide” initiative Build Own
Business
and its IoT Innovation Hub. Operate the Singapore government invites several
Own
Operate Transfer private participants for infrastructure
Operate
(BOO)
(BOO) (BOT) development and sensor networks, such
as IBM’s investment for the Jurong
district’s urban smart centre.
4
The smart city planner appoints a trusted
partner to develop the city infrastructure and
Business
Build
Operate
Open 3
services. The partner operates and manages Operate
Managed Business
Model The city planner allows any qualified company
smart city services. The city planner has no Manage
(BOM)
or business organisation to build city
further role. Most public-private partnerships (BOM) (OBM) infrastructure and provide city services. The
are built on this model. city planner, however, will impose some
Example: Songdo is a PPP between Gale regulatory obligations.
International, a real estate developer; Cisco, Example: Iskandar, Malaysia has
a network service provider; POSCO, a steel government and well-known private
maker; and the Incheon City Council. partners on-board such as Medini, IRDA,
Legoland, and Khazanah among others.
Note:
City Planner—Governing authorities involved with urban and land use planning that design plans for the development and management of
urban and suburban areas based on land use compatibility, economic trends, environmental implications, and social needs.
Partner—Private or public stakeholders collaborating with city authorities for urban planning and smart city initiatives.
Source: Adelaide City Council; IBM; Songdo IBD; Iskandar Malaysia; Frost & Sullivan

NF9F-MT 32
Smart City Funding Models Used in Asia-Pacific
Most services are financed by either public private partnerships or the city itself.

Funding Mechanisms, Asia-Pacific, 2015


Specific funds set up for implementing and scaling-up urban development or smart city initiatives. (For
Special
example, in China, the Ministry of Housing and Urban and Rural Development selected 193 local
Development governments and economic development zones as official smart city pilot project sites for funding from a
Funds $16 billion investment fund sponsored by the China Development Bank.)

Inviting investments from foreign experts to develop and set-up operations in the home country.
Foreign
(For example, in India’s 100 smart cities project, the $100 billion Delhi-Mumbai corridor effort has a 26%
Investments investment from Japan.)

Funded and operated through a partnership between government and one or more private sector
Public-private companies. (For example, the Public Utilities Board in Singapore has jointly piloted over 150 projects with
Partnerships leading water participants, such as Suez Environnement, Anaergia, and Meidensha, in the last 8 years via
the PPP model.)

Several participants of the ecosystem come together to form a consortium for smart city development.
Consortium
For example, in the Songdo Project, South Korea is in partnership with Cisco (networks), Korea Telecom
Approach (operator), POSCO (steel maker), and Gale International (real estate developer).

This option mostly applies for new and not already proven ideas. For example, the Singapore-MIT
Alliance for Research and Technology (SMART) is a major research enterprise established by
Research
the Massachusetts Institute of Technology (MIT) in partnership with the National Research Foundation of
Grants Singapore. The primary grant will be the Innovation Grant of up to $177,000 (S$250,000). Also, for
projects in very early stages, an Ignition Grant of up to $35,000 (S$50,000) will be rewarded.

Private Financed through commercial stakeholders, service providers, private investors, and venture capitalists
(For example, IBM has invested in Singapore for the Jurong Lake District Development.)
Investment
Source: Frost & Sullivan

NF9F-MT 33
Funding Mechanism Case Study—Songdo Smart City Project
Songdo international business district (IBD) is a public-private model jointly funded by the city council and
global private participants.

Smart City Market: Funding Mechanism Overview, Songdo, 2020

Funding Body Public Participants


The New Songdo
International City (NSIC) Private Participants
Development is a 70/30 joint NSIC
venture between Gale
International and POSCO.

Funding Sources Government Funded Private Funding


Gale International USA,
Posco E&C Korea, and Morgan City of Incheon
Stanley Real Estate are funding Gale Morgan Stanley
and Incheon POSCO
the project. Infrastructure International Real Estate
Free Economic (30%)
development, labour, and
Zone Authority (61%) Fund (9%)
funding are also provided by
City of Incheon.

Investors and Partners Asia United


Cisco Arup &
Development Technologies
Services Partners
Institute

Planners/ Contractors
Kohn John Portman Gansam
These companies have contributed MVRDV REX
Pederson Fox & Associates Partners
in the planning and design of
Songdo IBD.

Source: Songdo IBD; Frost & Sullivan

NF9F-MT 34
Tangible and Intangible Revenue Models in the Smart City Ecosystem
Smart cities fetch revenues, ensure savings, and also improve the way of life.

Intangible Benefits

Smart cities contribute to reductions in CO2


emissions and carbon footprints, for example through
the launch of energy saving cars. For example, Tokyo
to have energy savings of 50% by 2025. Energy Tangible Benefits
Savings
Citizens who feel that smart cities Costs are saved by reducing
improve quality of life are less congestion in the city and
likely to leave. New citizens are
Indirect Cost damage to public
also attracted to the city, helping Monetization Savings infrastructure. For example,
it to maintain and increase the Philippines aims to save
revenue through taxes, such as 1.2 trillion pesos by 2030 by
with Songdo IBD. reducing congestion.
Time spent due to Residents pay for smart city
infrastructure, commuting, and
Benefits projects by components
Time Pay by through a subscription-based
public transport issues is Components
saved in a smart city. By
Savings model, such as the smart
2030, commuters in Manila healthcare benefits and
will save 49 minutes per trip. services in Singapore.
Fee-based
Citizens pay for smart city projects by way of tolls
Model for bridges, roads, taxes. and other fee
instruments, such as through Electronic Road
Pricing (ERP) in Singapore.

Source: Frost & Sullivan

NF9F-MT 35
Main Stakeholders in the Asia-Pacific Smart City Ecosystem

Set the technical and policy regulations,


specifications for equipment, and
provide pre-approvals to suppliers and
City Councils and the budgets for urban development.
Regulatory Authorities

Provide end-to-
end integrated Provide software
solutions and digital
partnering with System Integrators/
Citizens Telecom/Tech platforms that
hardware and Infrastructure
Providers connect various
software suppliers Providers (End systems,
to create holistic Users) departments, and
city solutions. devices in the city.

Responsible for developing Provide gap analysis,


and managing real estate; at risk management,
Real Estate/Property Consulting
times can take the role of the and advisory
master planner or project
Developers Companies services, including
manager support in vendor
selection
Source: Frost & Sullivan

NF9F-MT 36
Products and Services Portfolio of Smart City Participants
Based on their role in the ecosystem, participants can scale-up or expand the scope of their offerings.

Smart Cities: Products and Services by Sectors, Asia-Pacific, 2015


IT and
Sectors Mobility Energy
Telecoms
Security Healthcare Governance

Smart grids; Integrated eServices


Traffic City cloud Identity
energy health record Transactions and
management computing Management
management system Payments

Electric vehicle Data-centric eCommunication


charging Smart meters consulting Cybersecurity eHealth Notifications and
infrastructure services alert service
Products and Services

Tolling and Information Intelligent, real- eAdministration


Smart home
congestion management time security mHealth Tools for public
appliances
charging services management administration

Integrated Flow and Sensor Tele- eSecurity


IT advisory Law enforcement
mobility regenerative actuator consultation
services and emergency
management technologies solutions facility management

Logistics or eBusinesses
Geo-fencing Managed
Renewable mobility Registration
and asset security Home health
integration security services,
tracking services
management patent renewals

Parking Authentication Data and mGovernance


management Sensors and and monitoring Building business
and payment smart material (Sensors, video security analytics for SMS tax returns
solutions surveillance) healthcare SMS utility bills

Source: Frost & Sullivan

NF9F-MT 37
Smart Cities and Smart City Projects in Asia-Pacific
An interesting mix of pilot projects and full-scale citywide investments are emerging across the region with
key industry leaders stepping into modular roles and with start-ups with lean business models.

Smart Cities: Key Participants, Asia-Pacific, 2015


Smart Smart Smart Smart Smart
Role Smart Energy Technology Buildings Smart Mobility Healthcare Governance Infrastructure
• Singapore Smart
Integrated
Songdo IBD Shanghai Nation Plan
Hitachi Smart NCS with smart Health
System with Cisco and Intelligent • Tokyo Green
Energy Project, technology Information -
integrators United Mobility City
Japan platforms Systems
Technologies Systems • U-City, South
(IHiS)
Korea

Network City of Melbourne


Xiaomi iHealth Hong Kong sensor
service - infrastructure - - -
monitoring networks
providers apps

Tenaga
Nasional Toyota and Seoul Smart
Pure play SMART Cars
Berhad, - - Hitachi nursing Complaint -
vendors in Singapore
Toshiba, and care robots Centre
Tokyo Electric

Qlue and
IBM – Bandung Parking Duck
Managed Hong Kong CROP for
Intelligent (Bangkok) and
service Energy Savings - - Jakarta and KL -
Operations Indra-MMDA
providers Plan crime
Centre (Manila)
monitoring

Source: Frost & Sullivan

NF9F-MT 38
Smart Energy Initiatives

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NF9F-MT 39
Smart Energy—Smart Grids and Smart Meters

Smart energy uses digital technology through advanced metering infrastructure (AMI), distribution grid
management, and high-voltage transmission systems, as well as demand response for the intelligent and
integrated transmission and distribution (T&D) of power.
Smart Grid
Saving energy costs by 15%–20%
Advanced Metering Infrastructure
• Smart meters • Meter data management
• Installation agent
• Communication systems • Customer data and
and networks program management

Demand Response
• Power curtailment revenue
• Home area network and management
• Smart home appliances
Distribution Grid Management
• Distribution automation
• Substation automation and integration
• Field equipment
High-voltage Transmission Technologies
• Flexible AC transmission systems
• High- and ultra-high-voltage DC
• Grid monitoring systems
Source: Frost & Sullivan

NF9F-MT 40
Fast-Growing Smart Energy Hotspots in the Region
Japan continues to be the most attractive country for smart grid project development.

Smart Grid Market: Regional Hotspots, Asia-Pacific, 2014–2019

Japan
Market Stage: Growth
Market Revenue (2014):
$3,032.1 million
CAGR (2014–2019): 16.4%

South Korea
Market Stage: Growth
Market Revenue (2014):
Thailand
$1,077.4 million
Market Stage: Nascent
CAGR (2014–2019): 1.2%
Market Revenue (2014):
$25.6 million
CAGR (2014–2019): 23.0%

Singapore
Revenue (2014): $61.6 million
Revenue (2019): $163.4 million
CAGR (20142019): 21.5%

Note: Although South Korea has a CAGR of 1.2%, it is still considered a hotspot as the country is
forecasted to be attractive for future smart grid project investments in North Asia. Source: Frost & Sullivan

NF9F-MT 41
Smart Meters in Asia-Pacific
Southeast Asia will witness growth in the smart meter market with a 24.5% penetration rate by 2020.

Advanced metering systems or


smart meters record the
Automatic consumption of energy in short
Advanced
Traditional Metering Metering
(manual checking by staff) (one-way
Metering (two-way intervals and communicate back to
communication) the utility for monitoring, with two-
communication)
way data flowing between the meter
and the central system.

Installed Base of Smart Meters,


Asia-Pacific, 2010 and 2016
400.0
Governments in Asia-Pacific are looking at 350.0

Units (Million)
300.0
smart meters for 4 reasons:
250.0
• Improve power grid reliability 200.0
150.0
• Improve operating efficiencies of grid 100.0
infrastructure 50.0
0.0
2010 2016
• Balance the supply and demand of
Installed Base of
power Smart Meters
52.8 350.3

• Reduce environmental impact Year

Source: Frost & Sullivan

NF9F-MT 42
Hitachi’s Kashiwa-No-Ha Smart City in Japan
Hitachi’s underlying technological expertise integrates industries and inter-links urban infrastructure.

Area Energy
Consortium Project Structure Management Smart Electricity User Awareness
Approach Solutions Management and Smart Citizens
Collaboration between ¥125 billion project Duplication of energy- Controls electrical Provides information to
real estate companies; where Hitachi worked in transmission lines, demand and energy users and increases
manufacturers; trading partnership with partial unused energy, and situation in the region by user awareness of
firms; government funding from the construction of electrical monitoring load, disaster energy conservation by
agencies; universities; government and Mitsui networks that optimise information, and displaying usage advice
research institutions; Fudosan levels of production, establishing flexible for water, electricity, and
Mitsui Fudosan Co., Ltd.; receipt, and electrical interchange gas
and Hitachi, Ltd.; among consumption through plan
other entities smart grid integration

Objective:
Results: Purpose: Helpful Tips:
Create
• Power • Reduce CO2 Action Points: • Establish energy
environmentally
consumption in emissions • Peak reduction use targets
symbiotic city, across
region cut by 26% • Regional energy operation • Issue warnings on
urban development
• Power bill costs optimisation • Conservation for energy use levels
value chain with a
reduced by about • Smart grid planned blackouts • Provide monthly
strong technology
¥10 million annually deployment usage statistics
base
Source: Frost & Sullivan

NF9F-MT 43
Toshiba’s Partnership with Tokyo Electric Power Co.
This project is the largest advanced metering infrastructure deployment in APAC for 27 million customers.

One-Stop Shop Maximising Inter-operability Developing a Smart Community


The portfolio contains solutions from The advanced metering infrastructure Japan is a test bed for Toshiba,
power generation and T&D deployed by Toshiba aims to reduce which has partnered with Tokyo
equipment to communication the interoperability gaps between Electric Power Co. to develop a
infrastructure, smart meters, and wireless mesh, power line carrier, smart community that involves smart
smart home solutions which puts the and home area network technologies meters, energy management
company in a unique position to by designing a multi-modular systems, smart thermostats, energy
deliver end-to-end solutions and communication system that works on controls, and smart home solutions –
achieve significant value creation in an integrated data management all elements of a smart city
the value chain. platform. ecosystem.

Frost & Sullivan awarded Toshiba


“2014 Asia-Pacific Advanced Metering Infrastructure Company of the Year”

Source: Toshiba; Green TechSource:


Media; Frost & Sullivan

NF9F-MT 44
Tenaga Nasional Smart Meter Technology Roadmap
Malaysia has plans to install smart meters in 8.5 million households in the next 10 years.

25-year Electricity Technology Roadmap to 2030


Pilot Project:
A $470,000 (RM2-million) pilot project was launched in
2013 to promote efficient energy production and usage. It
involved the replacement of 1,000 old analogue meters
with smart meters, with 200 installed in Putrajaya
households and 800 in Malacca.
Future Potential:
• Between 2015 and 2020, Peninsular Malaysia will need
to build approximately 4 gigawatts of additional power
capacity to meet rising demand.
• This initiative will allow Malaysia to maintain a healthy
power reserve margin making it 34% more energy
intensive than its neighbouring countries.
• Eventually by 2030, with the help of smart grids and
smart meters, Malaysia aims to modernise Malaysia’s
electricity supply system.

Image Source: Tenega Nasional. Source: Frost & Sullivan

NF9F-MT 45
Hong Kong Energy Saving Plan 2015–2025
Hong Kong aims to achieve energy intensity reductions of 40% by 2025 through smart pilot programs.

The myEnergy Program was an 18-month long smart metering


myEnergy pilot project launched at the end of 2012 for 3,000 homes and 1,400
Program
small- and medium-sized enterprises.

Under the energy savings plan, customised alerts for spikes in


consumption patterns or increases in household electricity budgets
are provided to make customers more aware and responsible.

A green city initiative and proactive care model provides tips


and suggestions to minimise or optimise usage via SMS alerts
based on real-time data.

The Smart Grid Experience Centre has four exhibition zones,


“Renewable Energy,” “Transmission and Distribution,” “Green and
Smart Living,” and “myEnergy.” It educates citizens about smart
grids and their participation in energy-efficiency programs through
interactive models, display boards, and videos.

Source: Computer World Hong Kong, “CLP powers novel customer services with smart metering”; Frost & Sullivan

NF9F-MT 46
Case Study—Mahindra World City, Jaipur India

Mahindra World City (Jaipur) is India’s largest special economic zone. It was established as a Mahindra
Living Lab, acting as a Smart City Innovation centre for all Smart City Initiatives.

Mahindra World City, Jaipur (MWCJ) drives the mission of Mahindra World Cities,
Vision which is to achieve a balance between life, living, and livelihood. It is a live smart
city, or a customer demonstration centre.
Mahindra World City, Jaipur

The project leverages Mahindra’s group-level competencies in automobiles,


Implementation
hospitality, and retail services. The layout was conceptualised and planned by
Model
Jurong Consultants.

MWCJ is a 74:26 joint venture between Mahindra Lifespace Developers Ltd. and
Funding RIICO. As of 2013, total investments into Mahindra World City crossed $150
million, with an envisaged investment of $1.5 billion.

All basic amenities are located within a 10 km radius from the city centre and
residential facilities. The water supply distribution systems are designed to reduce
Impact
energy consumption by at least 30% and to enhance efficiency with a reduction in
losses by up to 50%.

Source: Tech Mahindra; Frost & Sullivan

NF9F-MT 47
Case Study—Elements of the Mahindra World City, Jaipur Project

The project is based on the connected components of a smart city, including connected utilities, connected
communications, connected public safety, and connected homes and buildings.

Smart Street Lights Smart Indoor Lighting Smart Parking


Dashboard mapping of Proximity-based control Current hourly
lights’ location, at the command centre, occupancy vs. historic
indication of light status selective control of average, identification
(on/off), control of light lighting at command of authorised vehicles
operations, configuring centre, and lighting at entry gate, real-time
the luminosity level, and based on maximum status of parking slots These smart projects
naming the light points. demand. at parking bay, and have helped MWCJ to
managing reserved
parking slots.
become the first project in
Asia-Pacific and sixth in
the world to commit to a
carbon-positive road map
Smart Waste Smart Building Smart AMI
as part of the C40 Cities
Sensors are ruggedized Real-time monitoring of Real-time alerts on
to be fitted on bins, distributed generation faults, leakages, and Climate Leadership
map the location view (DG) status, its fuel abnormal consumption; Group.
of all bins, and send tank and usage, preventive maintenance
alerts to corresponding temperature of the DG scheduling and alerts
authorities for timely room, and provides on power losses and
cleaning (colour of bins real-time alerts on the power supply condition.
on dashboard depicts level of water tanks.
the status).

Source: Tech Mahindra; Frost & Sullivan

NF9F-MT 48
Smart Technology Trends

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NF9F-MT 49
Government ICT Expenditure Fuels Smart City Growth
Future investment paves the way for lucrative smart city opportunities.

Government Expenditure in ICT by Countries, Asia-Pacific, 2011 and 2017


40,000.0

35,000.0
Telcos’ spending on smart city
Expenditure ($ Million)

30,000.0
investments in Asia-Pacific will be $64
25,000.0 billion by 2020.
20,000.0

15,000.0

10,000.0

5,000.0

0.0
New South
Australia China Indonesia India Japan Malaysia Philippines Singapore Thailand
Zealand Korea
2011 3,023.2 21,822.1 1,496.5 7,918.5 18,679.7 950.9 402.9 780.2 564.8 3,538.5 877.4
2017 4,219.4 36,269.0 2,581.2 11,461.8 22,204.7 1,500.3 476.2 1,309.1 715.9 4,703.2 1,363.8
Countries

• China, Japan, India, and South Korea are the top-4 government ICT spenders in Asia-Pacific. Total ICT
spending by Asia-Pacific governments is expected to increase at a CAGR of 6.3%, with China leading with a
CAGR of 8.8% from 2011 to 2017.
• Massive ICT spending by Asia-Pacific governments is expect to drive smart city adoption while opening up
APAC markets to foreign smart city investment. Smaller markets, such as Indonesia and the Philippines, also
have strong potential for future smart city opportunities.
Source: Asian Development Bank; Frost & Sullivan

NF9F-MT 50
Communication Service Providers in Asia-Pacific—A Snapshot
Operators in Asia-Pacific to monetise 'smart city' projects by enabling digital ecosystems by 2025.

Smart Cities: Key Operators and Project Descriptions, Asia-Pacific, 2015


Operator Country Project Description Role
South Korea Korea Telecom formed a joint venture (JV) with Cisco for the U-
City Project to lead the 48 ubiquitous cities initiative in South
Korea
Korea since the success of Dongtan in 2006. Korea Telecom Integrator
Telecom
takes part in the strategic planning, design, implementation, and
operation of U-Cities.
Australia Telstra’s wireless machine-to-machine (M2M) control centre in
Melbourne enables smart transport, collision avoidance, traffic Network service
Telstra
flow management, and emergency response system and provider
planning.
Singapore Singtel is in the process of deploying a network of sensors for
public safety and security measures as one of the agendas for the
Singtel Integrator
Singapore Smart Nation plan. Its technology arm NCS is leading
this initiative.
Thailand Under the ICT2020 blueprint for Smart Thailand, a smart
broadband network should be accessible to 95% of the Thai Network service
AIS Thailand
population by 2020, which will enable eGovernment services such provider
as integrated back office systems for taxes and passports.
Malaysia Telekom Malaysia plans to build a data centre and provide cloud
Telekom computing and smart services in a technology park. The Nusajaya Network service
Malaysia Data Centre will connect multiple telecoms carriers and help provider
develop smart services such as safety and security technology.

Source: GSMA; Frost & Sullivan

NF9F-MT 51
IBM—Smarter Cities Solutions
IBM Smarter Cities is focused on delivering improved citizen services across industries such as energy and
water, transportation, education, public safety, environment, and urban planning.

IBM Smarter Cities offer solutions for more instrumented, interconnected, and intelligent systems.

Image Source: IBM; Source: IBM

NF9F-MT 52
Case Study—IBM Intelligent Operations Centre, Bandung Indonesia

Parking Issues
Road Maintenance Accidents and Emergencies

Traffic Congestion

• The Mayor of Bandung has initiated a project with IBM Water Management
to set up an Intelligent Operations Centre that
monitors all the civic issues of the city.
• It integrates various agencies, leaders, and citizens by
using social media and photo-clicking apps to send
maintenance crews to solve issues on a real-time
basis.
• It also uses analytics to minimise future incidents and
will lead to overall societal satisfaction and ultimately
Infrastructure
time savings and improved infrastructure.
• IBM has also entered into similar partnerships with Waste and Recycling
LTA in Singapore and Da Nang in Vietnam

Source: IBM; Frost & Sullivan

NF9F-MT 53
NCS Smart Technology Platform
The technology backbone will enable applications to drive Singtel’s smart city strategy by 2025.

Key Focus Areas Intelligent SURF Centre (ISC)

Transport Education Healthcare Public Safety


Smart Predictive
Smart and
Transport Treatment
Schools Targeted
Hub and
Recovery Policing

Variable Hospital Unified Threat


Toll Pricing Smart
and Assessment
Universities
Physician and Response
Automation
Airport
Operations Next-Gen
Optimisation CNI
Adult Population
Security
Learning Health
Analytics Acquire and Process Predict Decide
Airport Intelligent Integrate and and and
Security Border Data Analyse Visualise Respond
Control

Key Enablers and Capabilities

Cybersecurity Data Visualisation

Geo, Data, and Video Analytics Large-scale and complex system integration
Source: NCS

NF9F-MT 54
Seoul’s Pioneering Smart Technology Initiatives
Seoul is poised to be world’s first free Wi-Fi city by 2025.

Greenhouse Gas (GHG) Emissions Broadband Penetration Rate Internet Connectivity

To reduce emissions in 2020 To be the first free Wi-Fi city and To ensure 100% coverage by
by 25% and 40% in 2023 to have the highest penetration optical fibre networks; around 85%
from the 1990 levels rate in the world in 2025 at 60% of households to have very high-
speed broadband
Renewable Energy Hybrid Vehicles Smart Energy

To reduce the use of nuclear To introduce 7,000 electric and To ensure completion of the nationwide
power and fossil fuel-based hybrid buses in next 5 years smart grid system programme which
energy by at least 30% of was launched in 2011
current use by 2020 Source: Frost & Sullivan

NF9F-MT 55
Melbourne—Smart Solutions to Spearhead a Growth Wave
The City of Melbourne has appointed a Chief Digital Officer to set up a real-time city model by 2020.

BETTERWAY
A “road load balancing” tool will predict congestion on any road in the city. The tool
re-adjusts traffic lights in real-time to improve traffic. The solution integrates data
from vehicle counters and traffic light detectors to optimise the traffic and to spread
vehicles more evenly across the roads so people get to their destination faster.

LO-ZO
A “loading zone finder” for restaurants and delivery outlets will alert drivers on
available loading zone bays as they approach their destination. The finder also
indicates when a bay is most likely to be available so drivers can better plan ahead.
Data is used from parking events from bays with sensors.

TRAMJAM
This is an app to warn pedestrians and motorists when a tram is approaching. The
app alerts users by flashing a warning signal on their phone screen and by making
noise.
Using a heat map of tram accidents, when users create a journey, it warns them
when they are approaching a dangerous stop.

Source: Techworld; Frost & Sullivan

NF9F-MT 56
U-City Project, South Korea
The ICT-enabled U-City project for smart cities in South Korea has already created a market valued at
$58 billion.

uHealthcare uWork uHome uEducation


• Health management • Remote working facility • Digital home services • Digital classroom
• Senior citizen care service • Mobile tele-network • Security management • Remote education
• Remote check-up service • Video conferencing • Home automation service

• Residence complex • Digital library


management

uTransportation uEnvironment uLogistics uPublic Services


• Public transportation • Contamination management • Port • Digital payment
• Road management • Eco management • Baggage control • Regional portal
• Parking management • Sewage water quality • Traceability • Kiosk service
• Traffic violation management services • Mobile shopping service
• Monitoring • Air pollution monitoring and • Civil application site
management service • Public opinion poll
• Public safety
• Public facilities protection

Source: Frost & Sullivan

NF9F-MT 57
Case Study—Smart BKC (Bandra Kurla Complex)
Smart BKC is being showcased as a Smart Hub and a globally-benchmarked Intelligent International
Finance Centre.

Smart BKC aims to create a citizen-friendly central business district that is intelligent,
Vision
efficient, transparent, inclusive, interactive, and accessible in real-time to all citizens.

The Mumbai Metropolitan Region Development Authority (MMRDA) plans to adopt one
of the following models:
Implementation
• Bundle all the key 5 initiatives and invite one Master System Integrator through a
Model
consortium
BKC

• Invite individual vendors for each initiative


The total capital expenditure (Capex) requirements for implementing all initiatives is
about $3 million, while total operational expenditure (Opex) requirements is $830,000.
Funding
Regardless of the implementation model chosen, MMRDA may opt for a PPP or BOT
model, following a Capex model or a hybrid model to execute initiatives.

Energy consumption has reduced by 40%; parking time has reduced from 20 minutes to
Impact 5 minutes; 50,000 man-days are saved per year; 19,000 litres of fuel are saved; and 24
tonnes of carbon are reduced annually.

Source: MMRDA; Frost & Sullivan

NF9F-MT 58
Case Study—Elements of the Smart BKC Project
BKC has shortlisted 5 smart initiatives that encompass stakeholder analysis, best practices, and opportunity
assessment.

Public Wi-Fi hotspots Smart parking Smart street lights


A 5-Mbps high-speed 3,000 smart parking 841 street-lights
wireless Internet slots; parking time converted; 800 tonnes
connection covers a reduced from 20 to 5 of carbon reduced
175 hectare area in minutes; 19,000 litres of annually and energy
BKC; seamless Wi-Fi fuel and 7,800 man- consumption reduced
connectivity to save days saved; and 24 by 40%; 200 KW of
50,000 man-days per tonnes of carbon clean energy Phase I initiatives
year. reduced annually; also generated. generated revenue of $1.2
reduced unauthorised million, which is sufficient
parking. to fund the Opex
requirements; thus
Smart security Central command making the initiatives self-
Complete block centre sustainable in the long
coverage with 90 33,000 man-days saved term.
cameras; improved due to ease of access
emergency response of information;
and greater co- improved emergency
ordination among alert and response;
security agencies; better citizen
reduced theft of street communication and
utilities. service delivery.

Source: Frost & Sullivan

NF9F-MT 59
Case Study—Key Milestones Planned for BKC

2014 2024

The first phase, titled Smart BKC 2.0 will Smart BKC 3.0 will
Smart BKC 1.0, will have advanced have futuristic initiatives
have: initiatives such as: that would add:
• Video analytics • Intelligent buildings • An urban incubation
• Wi-Fi • A city command centre

• Intelligent street centre • Congestion charging


lights • Smart meters • Car-pooling systems
• Smart parking • Electric vehicle • Interactive sidewalks
charging systems
• Citizen apps
• Pollution monitors
• Efficient energy and
water systems
Source: MMRDA; Frost & Sullivan

NF9F-MT 60
Smart Building Projects

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NF9F-MT 61
Smart Buildings—The Triple Zero Architecture of the Future

Smart buildings are green, energy-efficient, and intelligent with advanced automated infrastructure that
controls and manages aspects such as lighting, temperature, security, and energy consumption,
independently or with minimal human intervention.

Building Automation Systems


Reduction in energy consumption up to 30%
Commercial
Residential

Energy Efficiency
Smart Meters
Lighting
HVAC Controls
Energy Management

Electronic Security Systems


Electronic Article Surveillance Systems
Contraband Detection Systems
CCTV
Automotive Security Systems

Image Source: Dreamstime


Key: HVAC—Heating, Ventilation, and Air Conditioning Source: Frost & Sullivan

NF9F-MT 62
Smart Building Projects Overview Asia-Pacific
The Asia-Pacific smart buildings market is set to reach $1.03 trillion by 2020, up from $427 billion in 2011.

Energy
GHG Emissions Consumption
Smart Buildings
56% growth in global Region to consume
one-third of global Largest markets:
carbon dioxide
energy by 2025 due China (46%), Japan
emissions between
to addition of 44 Smart Lighting (19%), and India
1990 to 2025
million people every Phillips Symphony (11%)
year Smart Lighting
Solutions: low-
wattage LED lights
for illumination
Renewable through infrared
Energy controllers
Buildings to use waste
recycling plants and
photovoltaic screens
Home Automation
Smart home
automation market in
Asia-Pacific to be worth
$361.1 million by 2018

Source: Seoul.gov.kr Frost & Sullivan

NF9F-MT 63
Songdo International Business District in South Korea
Fully functional by 2018, each building in Songdo aims to reduce energy consumption by 30%.

Approximately $10 billion is being invested in building 100 smart buildings, including South Korea's
tallest skyscraper.

Energy-Efficient
Recycling Smart Systems
Buildings

Per capita energy Waste processing Videoconferencing


use in Songdo is by cogeneration technology that
40% less than the plant that uses allows residents to
average existing natural gas to access remote
city power electricity healthcare and
other services

Windows have low Touchscreens


Use of LED lights
U-value that enable residents to
and water-cooled
reduces the sunlight control their
air conditioning
coming in and apartment unit’s
system
conserves energy energy use

Source: Frost & Sullivan

NF9F-MT 64
Innovating to Zero—Singapore’s Zero Energy Building (ZEB)

The use of smart technology to reduce building operating costs by S$84,000 a year.
2009
2030
A critical test-bed facility, the 4,500 square metre building
aims to produce enough energy to power the building. The Inter-Ministerial Committee on Sustainable
The building will save S$84,000* a year in energy costs Development has a target to achieve 80% Green Mark
compared to a typical office in Singapore. Certification for all buildings by 2030.

Zone 3
• Personalised Ventilation
The office of the Future • Displacement Cooling
• Natural Lighting
• Automatic Light Level Adjustment
Zone 2
The Solar Energy • First Zero Energy Building
• Solar Systems
Panorama • Solar Chimneys • Continuous readout of energy supply/demand
• Daylight Collector in the main lobby; high transparency ZEB
• Rooftop Garden • Objectives:
Zone 1
o To serve as a laboratory for the integration
Visitor of green building technologies in existing
Centre • Shading Devices buildings
• Living Walls o To be a hub for the study of energy
• Mirror Ducts efficiency and green buildings

*Note: Based on an electricity tariff of 21.69 cents/kWh.


Source: Building and Construction Authority Singapore; Frost & Sullivan

NF9F-MT 65
Case Study—GIFT City and Smart Buildings
Gujarat International Finance Tec-City (GIFT) is being developed to catalyse India’s financial services
potential by offering world-class infrastructure to attract top talent in the country.

Vision GIFT aspires to target 8% to 10% of the financial services potential in India.

The Gujarat Urban Development Company Limited and Infrastructure


Implementation
Leasing & Financial Services Limited (IL&FS) have established a 50:50 joint
Model
GIFT City

venture company, "Gujarat International Finance Tec-City Company Limited."

The Government of Gujarat and IL&FS are engaged in a PPP project to roll-out a
Funding
state-of-the-art international financial city.

GIFT aims to create 1 million direct and indirect jobs and up to 90 million square
Impact
feet of real estate office and residential space.

Source: GIFT City; Frost & Sullivan

NF9F-MT 66
Case Study—Elements of the GIFT City Project
The smart components in GIFT will focus on people and businesses, livability, smart infrastructure,
sustainability, efficiency, and safety and security.

Solid Waste Smart Water Smart Transportation


Management Zero discharge city, Interactive road maps,
Minimal emissions, potable water from automatic vehicle
positive impact on taps, wastewater is location and tracking,
health and recycled for use in transit node
environment, reduced district cooling system management, road
human intervention and and for horticulture. condition system, All the smart components
space requirements. parking management, will be monitored by a
and real-time travel
response.
central city command and
control centre which will
take critical live feeds
from all the control
District Cooling Utility Tunnel
centres and take remedial
System All utility services,
Reduces energy and except for gas and actions in case of an
maintenance costs, sewerage from plants emergency.
improves air quality and and various buildings,
temperature control, will be routed through
efficiency through an underground utility
economies of scale. tunnel.

Source: GIFT City; Frost & Sullivan

NF9F-MT 67
Case Study—Key Milestones Planned for GIFT City
The GIFT City project is being implemented in three phases, each over a period of 4 years.

2012 2024

Allotments of 14 million This phase will The GIFT project is


square feet of built-up area facilitate offshore and expected to be
have been completed for international financial completed by the end of
the development of services-related Phase III between 2020
commercial, residential, and activities to be carried and 2024.
social facilities while out from GIFT The total committed
commensurate state-of-the- International Financial investments to be made
art infrastructure is near Services Centre. by various developers for
completion. A few banks, the development of
insurance, and IT allotted projects exceed
companies have already $1.5 billion.
moved to GIFT City.

Source: GIFT City; Frost & Sullivan

NF9F-MT 68
Smart Mobility

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NF9F-MT 69
Smart Mobility—Technology on Wheels
Dynamic transport business models have led to the convergence of many smart mobility solutions in
Asia-Pacific.

Smart mobility is enabled through the use of innovative and integrated technologies and solutions, such as intelligent
transportation systems, IT-enabled transport payment solutions, and electric vehicle infrastructure.

Intelligent Transportation System

Advanced Traffic Management System (ATMS)


Advanced Traveller Information System
ITS-Enabled Transportation Pricing System
Advanced Public Transportation System
Commercial Vehicle Operation
Example: How2Go—Public Transport Journey
Planner by Land Transport Authority of Singapore

Smart Mobility Solutions


Ticketing Management
Parking Management
Passenger Information
Traffic management
Example: Octopus Smart Card by Government of
Hong Kong

Electric Vehicle Transport Solutions


Electric Vehicle Charging Equipment
Electric Vehicle Charging Services
Example: State Grid has installed 50 fast-charging
stations along the 1,260-km (780 mile) route
between Beijing and Shanghai. Image Source: Dreamstime
Source: Frost & Sullivan

NF9F-MT 70
Parking Duck—The Airbnb of Parking Space Solutions
Smart parking to ease parking issues and to save an average of 20 minutes for 7 million registered cars in
Bangkok.

• Plays on the demand and supply • An integrated online forum with an • Rent payment for parking to be done
gap, and parking-related issues in interactive map displays empty online through a payment gateway
Bangkok parking spaces • Allows the host and driver to
• Plans to have both a peer-to-peer • Gives location, price per month, and communicate to establish trust and
model with monthly parking and a images of parking spots exchange critical information
business-to-business model with • Provides suggested rentals to host • The business model to function on
hourly parking services and allows him/her to verify driver/car 10% commission fee for every
• Insurance and registration of parking details and select or reject offers at successful transaction; 6% service
spots will be enabled their discretion fee to be obtained from drivers and
• Uses quick response (QR) codes and 4% service free from hosts renting
emails receipt for transaction out parking spaces
authorisation and confirmation

Image Source: Parking Duck. Source: Parking Duck; Frost & Sullivan

NF9F-MT 71
Shanghai—Intelligent Mobility Systems
The city’s intelligent transport system received China's Environment of Living Model Award from the Ministry
of Housing and Urban-Rural Development.

Shanghai Intelligent Mobility Systems

Shanghai public Shanghai’s intelligent Jiaotong ka Smart Car pooling and car
transport is reliant on transport system Card is used to make sharing apps connect
its rail system, which (ITS) started in 2013 electronic payments for people using personal
is expected to be and creates a bus and urban rail vehicles at peak hours
expanded to 540 km to seamless mobility fares, taxis, and on a real-time basis to
cater to 10 million system with surface parking spaces. Near- reduce congestion and
people by 2020. Smart and underground field communication pollution.
transport systems will integrated guidance for (NFC)-enabled
manage this driving, parking, and smartphones also allow
infrastructure. walking. cashless payments for
urban rail.

Image Source: Travis Wise, CC BY 2.0; jo.sao, CC BY 2.0; Frost & Sullivan. Source: Shanghai Transport Authority; Frost & Sullivan

NF9F-MT 72
Smart Traffic Management in Manila, Philippines
The Metro Manila Development Authority (MMDA) aims to solve congestion and infrastructure issues by
2030.

Smart Technology Power to Results and


and Connectivity Citizens Improvement

Adding automation Mobile app / Cost savings due


and intelligence to software to reduced
hardware congestion

Example – MMDA – Indra Smart Traffic Management

Installation of an integrated state- High congestion areas can be Improved road safety, less hold-
of-the-art surveillance centre, detected on smartphones and up times, and pollution and due
traffic light regulators, and high- handheld devices for better to real-time data availability on
definition traffic control cameras traffic management and control. traffic-related incidents.
for 85 key intersections. Source: Indra; Frost & Sullivan

NF9F-MT 73
Singapore’s Driverless Car Project from SMART
SMART’s driverless car to be available at half the price of Google’s autonomous car by 2019/2020.

Singapore’s SMART car to re-define the autonomous car market due to a clear cost advantage.

Advantages:
Cost: • Automated driving can
reduce emissions by
• It costs less than half of 20% to 50% and
Google’s autonomous efficiently interface with
car at S$30,000 smart power grids.
($23,500).
• Autonomous driving also
• SMART plans to enables mobility-on-
eventually bring the cost demand and car sharing
down to S$10,000 models.
($7,800).

SCOT:
(Shared Computer Operated
Innovating to Zero: Transport)
Driverless cars are aiming These are low-cost off-the-
towards zero accidents, shelf LIDAR sensors instead
improving road safety, and of expensive 3-D laser
reducing car accidents due sensors that enable the car
to efficient route planning to drive autonomously,
and eliminating human error. independent of the GPS.

Image Source: Asiaone


Source: Frost & Sullivan

NF9F-MT 74
Smart Healthcare

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NF9F-MT 75
Smart Healthcare—Health in a Greener Economy

Smart healthcare uses eHealth and mHealth systems and intelligent and connected medical devices. It also
involves the implementation of policies that encourage health, wellness, and well-being for citizens, and
promotes health monitoring and diagnostics as opposed to treatment.

eHealthcare

Up to 25% reduction in labour costs; overall, up


to 30% reduction in operating costs

Electronic Medical Records and


Administrative Solutions
Secure Exchange of Patient Health Data for
Health Networks
Integrated Patient and Asset Management
System
Mobile Health Apps
Virtual Surgeries
Intelligent and Connected Medical Devices
mHealth

Image Source: Dreamstime


Source: Frost & Sullivan

NF9F-MT 76
Universal Health Coverage Roadmap in Select Asian Nations
UHC provides opportunities for smart healthcare through an integrated healthcare ecosystem.

Universal Health Coverage: Stages of Coverage in Select Countries, Asia-Pacific, 2015

China
Universal health coverage (UHC)
provides healthcare accessibility to

Thailand Singapore
all participants in an integrated

Indonesia
approach. Some UHC targets
include:
• Indonesia: By 2019

Malaysia

Vietnam
• Vietnam: By 2016
• Malaysia: Proposed

0% 25% 50% 75% 100%

Smart healthcare includes the following:


• Smart hospitals
• Smart technology including: 3-D printing of organs, tissues, prosthetics, and implants; use of
nanobots for treatment, neutrosimulators, and electroceuticals; use of robotics to perform
surgeries; cutting-edge medical devices and equipment for treatment; and smart, designer pills
• Smart patient monitoring including: mHealth, tele-health, remote health monitoring through
wearables, embedded devices to check vital signs, and prevention before cure
• Smart non-core activities administration such as maintaining patient records and medical history,
appointment scheduling, nutrition additive suggestions, electronic records, integrated healthcare
management, and click-to-deliver pharma store formats
Source: Ministry of Health of respective countries; Frost & Sullivan

NF9F-MT 77
Integrated Health Information System in Singapore
Singapore’s Healthcare 2020 Master Plan ensures the integration of healthcare information across the
ecosystem.

Access to consolidated information improves the management of chronic diseases, reduces test duplication,
and offers better patient care along with accessible and affordable services.

Remote monitoring devices for Tele-consultation Smartphone health


follow-up care of chronically ill
diaries and patient
patients at home
portals for self-
monitoring

Integrated Health
Information System

Integrated health electronic


Tele-health hubs record accessible to medical
Integrated appointment practitioners for physical,
scheduling and common mental, and health services
case management

Image Source: Frost & Sullivan. Source: IHiS, Singapore; Frost & Sullivan

NF9F-MT 78
Mobile Health in Australia to Drive Smart Agenda
Business model innovation will be biggest game changer to fuel the explosive growth in mHealth solutions.

Australia mHealth Landscape


Business Model
Technology Trends Regulatory Challenges Future of mHealth
Innovation
• Technology platform and • Supportive regulatory • Smart healthcare plug-
• Integrating a smart
infrastructure enable environment is needed ins enable analysis and
element in mobile health
plug-ins to share confidential recommendations for
apps, devices, and
patient information chronic diseases
• Cloud computing can systems
bring together functions • Necessity of a regulatory • Lifestyle management
• Sensors, machine
operating in silos authority or body that and patient engagement
learning, and Big Data
monitors introduction of
• Internet of Things and analysis to relay
new apps in the market
gamification intelligent insights
• Operates on
consumption or data
usage-based model

Source: Microsoft; Intel; Orion Health; Frost & Sullivan

NF9F-MT 79
iHealth Labs’ Smart Healthcare Partnership with Xiaomi
China will have a leading position in the $49 billion mHealth market in Asia-Pacific due to high technology
adoption.

Xiaomi has invested $25 million in iHealth Labs as China contends with Apple and Google.

This is an app integrated with a blood


pressure device that measures and tracks
vital signs through smart technology.
The app, customised for
Xiaomi, tracks blood pressure,
heart rate, average pulse, and
The device comprises a more on a real-time chart, and
sphygmomanometer, or blood pressure cuff, then makes recommendations
and accompanying phone dock. The device for improvements to these
will go on sale RMB 199 ($32) about one- parameters.
fourth of the price of Apple’s product.

iHealth Labs has launched several smart


healthcare products such as glucometers,
wireless scales, blood pressure monitors,
and fitness devices.

Source: Tech In Asia; Frost & Sullivan

NF9F-MT 80
National Nursing Robotics Project in Japan
An ageing population in Japan has improved the potential for healthcare robotics for elderly care.

• At least 20% of the population in Japan is aged 65 and above.


• PARO, an interactive, robot baby seal, is expected to be priced at $8,600 in Japan. The robot
already passed a successful trial in 2014.
• The Japanese government is providing subsidies to participants such as Toyota and Seikisui
Hometechno to develop robots in the healthcare space.
• Softbank has prototyped Pepper at an expected price of $1,900 to $2,000 for home healthcare. The
US market is expected launch the product by May or June 2015 through Sprint Corp. stores.

Different nursing devices under the smart nursing healthcare program in Japan:

Robohelper Smart Suite


Stride Minelet Patient
Sasuke: Lite: Smart
Management Sawayaka: Transfer
Muscle Support
Assist: Honda NWIC Assist: Toyota
Corporation Corporation

Source: Aged Care Insite; Statistics Bureau of the Ministry of Internal Affairs & Communications; METI Journal; Frost & Sullivan

NF9F-MT 81
Smart Governance Initiatives

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NF9F-MT 82
Smart Governance and Smart Security
Smart governance enables 100% access to a full-range of government services through digital technology
eAdministration.

Smart governance and smart security includes policies and digital services from the government that help
support the adoption of green and intelligent solutions through incentives, subsidies, or other forms of
promotional schemes.

eGovernment
• Online transactions (eFiling of tax returns)
• Distributed governance through open data,
crowdsourcing, and co-creation of services
• Smart governance through predictive analytics,
behavioural psychology, and outcome-based
regulation

eEducation
• Virtual classrooms and augmented reality
• Distance learning and computer-based training
• Real-world trials and project-based learning

Security
• Urban security and ID management
• Critical infrastructure protection
• Cybersecurity
• Gamified mobile interfaces such as predictive video,
drones, and facial recognition software
Image Source: Dreamstime
Source: Frost & Sullivan

NF9F-MT 83
Seoul’s Smart Complaint Centre
Digital governance is achieved through 1,200 open data sets and digital tools that enable citizen
participation.

Seoul’s Smart Complaint Centre Application

Smart Main
Element Application Stakeholder

Citizens are able to track the A location-based mobile The Seoul Metropolitan
progress of their complaints in application enables users to Government, with the aid of
real-time through SMS updates. register complaints regarding smartphone providers and Internet
community issues that affect public search engines, is the main
safety and infrastructure. stakeholder.

The call centre


directs the
Complaints complaints to the
registered are appropriate city
immediately services.
Complaints are 3
transferred to
registered the 120 Dasan
through the Call Centre.
Seoul Smart 2
Complaint
1 Centre app.

Source: futuregov.asia; seoul.go.kr; www.happycity.go.kr; Frost &Sullivan

NF9F-MT 84
Qlue and CROP—Public Complaint Monitoring in Jakarta
With a planned investment of $2.4 million in 2015, the app currently receives 100 reports per day and has
100 city council officers resolving issues daily.

A public complaint monitoring app in Indonesia had 30,000 users as of March 2015 and is growing.

Detect Problem

• The system enables problem


detection and provides solutions Real-Time Solution
in real-time by digitally
integrating social media
channels and community-based • Real-time public complaint
traffic reporting. monitoring and resolutions by
• It accesses 300 CCTV cameras civil servants is provided
around the city for fibre optic • Qlue is an app that collects through app called CROP.
lines, building locations, police rapid feedback on public • This new model of
outposts, and population data. opinion of infrastructural pain governance involves citizens
points. shaping public policy in real-
• Community reports are time.
accessible to everyone with
transparent complaint data on
public infrastructure issues.

Report Problem

Image Source: Dreamstime


Source: Frost & Sullivan

NF9F-MT 85
Kuala Lumpur Crime Monitoring Program—A Safe City Initiative
Kuala Lumpur aims to be featured in the World’s Top 20 Safest Cities by 2020, up from its current position of
79th according to the Economist’s Intelligence Unit (EIU).

Kuala Lumpur’s street crime and theft rates have reduced by 40% and 11%, respectively, from
2011 to 2015.

Crime hotspots are


Analysing crime trends,
identified online through a Smart partnerships exist
patterns, repeat locations,
GIS map in the Police between the Royal
and displacement provides
Reporting System, Malaysian Police, local
holistic crime prevention
categorising activity authorities, and the town
actions through intelligent
according to the type of council for the execution
machine learning for all
crime and urgency to of the Safe City Program.
concerned parties.
resolve.

Image Source: PEMANDU


Source: PEMANDU; Frost & Sullivan

NF9F-MT 86
Case Study—Smart Security in Mumbai
The implementation of CCTV is part of the security measures taken by the state government to address
safety concerns in Mumbai after the attacks on 26 November 1998.

Mumbai’s vision is to become the safest city in India by adopting smarter security
Vision
initiatives, such as the citywide use of CCTV at over 15,000 junctions.

The project is being executed by L&T on BOT model. The main command control
Implementation centre will be situated at the Office of the City Police Commissioner. The
Greater Mumbai

Model centralised architecture will be adopted to connect cameras via different


technologies.

The project is entirely funded by the state government, incurring a cost of


Funding
$145 million.

The installation of CCTV cameras will help maintain law and order in Greater
Impact
Mumbai.

Source: Media reports; Frost & Sullivan

NF9F-MT 87
Smart Infrastructure

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NF9F-MT 88
Smart Infrastructure—Digital Management of Infrastructure

Smart infrastructure includes intelligent and automated systems that manage, communicate, and integrate
different types of intelligent infrastructure, such as energy grids, transport network, water and waste
management systems, and telecommunications through sensor technology and networks.

Digital Water and Wastewater Management


Smart Water Grids
Smart Irrigation
Wastewater Management
Smart Utility Management

Digital Waste and Recycling Management


Reduces water wastage and landfill waste up to 30%
eWaste Management
Waste Recycling (metals, plastic, silica)
Waste-to-Energy Technology
Smart Mobility

Image Source: Dreamstime


Source: Frost & Sullivan

NF9F-MT 89
Sensor Networks Enable Smart Infrastructure in Hong Kong

Hong Kong to be the 4th most competitive smart city by 2025 according to the EIU.

Smart Payments Smart Infrastructure


Octopus and AutoToll use smart The Tsing Ma Bridge—the 7th-longest in
cards and radio-frequency the world—is equipped with more than
identification (RFID) technologies to 350 sensor channels. The bridge, which
enable speedy payments for public can handle wind speeds up to 341
transport services, tolled tunnels, kilometres per hour, uses GPS sensors
and bridges. mounted on the towers and cables to
measure wind speed. One-hundred
Smart Utility Management photonic sensors are used to monitor
Smart sensors are used by the Water the strain on the bridge’s cables.
Supplies Department to detect water
pipe leakages by analysing the Smart Buildings
difference in the sound of water flow Smart sensors, photovoltaic panels,
and providing prompt remedial actions. and smart meters are used by the
Housing Authority to monitor electricity
Smart Mobility and water consumption and enable
Smart sensors are used by the smart and safe lighting solutions.
Transport Department to collect real-
time traffic data and geo-referenced Smart IDs
tramway fleet data to dynamically Smart IDs digitise public
control traffic lights for smoother consumption information,
traffic and provide journey time identity information,
estimations for route planning during eHealth records, and smart
peak and off-peak hours. technology identification.
Source: Secretary of Commerce & Economic Development HK; Frost & Sullivan

NF9F-MT 90
Tokyo—The Green City
By 2025, Tokyo to cut emissions by 25% from 2000 levels.

Highlights of Tokyo as a Smart City, Asia-Pacific, 2025

• Vehicle owners receive a tax • Initiatives are underway to replace


reduction of 50% to 75%, depending incandescent light bulbs in the city
Smart
on their fuel economies and exhaust Environmentally with fluorescent lighting; to reduce
Lighting
emissions. -friendly cars energy consumption by 80% per
Solutions
lamp.

• Expand the use of solar • Level of carbon


energy which will cover Tokyo Tokyo emissions to be reduced
around 40% of the total Green Green Targets for by 25%.
buildings in the city. Building 2025 • To achieve energy
City 2025
Program savings of 50%.
• Level of traffic jams to
be reduced by 25%.

Ten-Year
• Ensure reductions of CO2 from Tokyo Cap • Involves an eco-driving campaign
Project for a
commercial sector buildings, and Trade and a car-sharing programme, with
Carbon-Minus
including office buildings. Program further plans to introduce a park-
Tokyo
and-ride system.

Source: Frost & Sullivan

NF9F-MT 91
Singapore Smart Nation Plan 2025
The deployment of more than 1,000 sensor networks across the country will enable smart infrastructure
management.

• Smart medical
Smart Energy devices and apps
Systems in • Electronic medical
Buildings • Vehicle-to-vehicle communications
record for safety
• Home security • Better patient • Smart parking applications
devices monitoring in • Real-time data capture and
• Water meters moving management
• Smart meters ambulances • Dynamic mobility applications
• Home • Smart lighting based on motion
entertainment sensors and time of the day
• Smart alliances Smart
• Wi-Fi Healthcare
Smart
connectivity Mobility
• Bins with smart
sensors

Smart Buildings Smart Infrastructure


and Homes Smart Equipment
• Flood prevention
• Traffic jam prevention • Surveillance cameras
and control • Air quality sensors
• Computer chips
Source: AsiaOne; Frost & Sullivan

NF9F-MT 92
Case Study—Lodha Palava and Smart Urban Infrastructure
Palava, a smart city being developed as a satellite city to Mumbai, is India’s first and largest privately-owned
greenfield smart city and will be home to over 100,000 families and create over 350,000 jobs by 2025.

Vision Palava strives to become one of the top-50 most livable cities by 2025.

Lodha has a franchisee agreement with the Maharashtra State Electricity Distribution Co. Ltd for
Implementation 24-hour electricity supply and a tie-up with General Electric Co. (GE) for 100% water recycling
Model and automated water metering and billing. Philips fitted the smart street lighting using solar
panels.
Palava

Land acquisition and the building of physical infrastructure is being wholly funded by the Lodha
Funding Group while the vendor ecosystem operates on a Capex/Opex model.

The city provides the following:


• 24/7 safety and security and emergency handling capability
Impact • Reductions in water wastage and energy usage
• Hassle-free public transport services
• Increased life of city assets

Source: Lodha; Frost & Sullivan

NF9F-MT 93
Case Study—Elements of the Palava Project
Palava focuses on areas such as walk-to-everywhere, job creation, education and sports, healthcare,
security, and transportation, an all-encompassing smart infrastructure project.

Smart Water Meters Smart Energy Meters Smart Street Lighting


Track losses in the Smart card-based Monitoring and The following 3 elements
water network and recharge; prepaid controlling of street will help meet the key
when repairs are metering eliminates lighting, including
objectives of a smart city
needed; automates collection risks dimming, from a central
water billing location in Palava:
1. Efficient governance and
Citywide Fibre and Central Command Geographic high-quality service
Wi-Fi Networks Centre Information System delivery
Citywide network, thus Already established at Maps all roads,
users have capability to PCMA; includes CCTV buildings, and assets in 2. Sustain investment in
interact with multiple feeds and the ability to Palava; helps in land infrastructure and
access points centrally control utilities tracking conserve precious
resources
Palava Smart Card Emergency Response CCTV Cameras 3. Focus on creating
Facilitates identification, Vehicles Network of 300 to 400 opportunities for citizens
access control, online Capable of handling CCTVs; system
to maximise potential and
payment, and bus medical, fire, or other supports video analytics
tickets and passes emergencies improving their quality of
life

Key: PCMA—Palava City Management Association


Source: Lodha; Frost & Sullivan

NF9F-MT 94
Conclusion

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NF9F-MT 95
Recommendations to City Councils and Governments
How to engage in the smart city ecosystem?

Complex projects require collaboration between government agencies, the


private sector, and city stakeholder constituencies such as citizens,
Consortium
universities, and not-for-profit organizations. Pooling expertise and resources
Approach from all sectors to form a consortium can help to achieve local and regional
goals.

Form a Governments can lead by example and bring together agendas by breaking
silos, or by providing zero-interest loans or revolving funds for hospitals,
charter and schools, or municipal buildings to drive smart city projects. For example, the
agenda Climate Smart Precincts work in Australia is led by the state governments.

Peer Stakeholders can conduct a peer analysis of cities at similar levels of urban
development to identify investments of companies in the same industry and
analysis of
to identify focus areas of the city council. For example, the NCS projects in
similar Singapore and Melbourne, where the level of urban and technological
cities development is similar.

Look for opportunities to pilot business models by using universities as test


Pilots to beds to measure the viability of a citywide rollout and to identify stakeholder
project value to convert pilots into bankable projects. For example, the Living Lab
rollouts initiative is being run by the Singapore Economic Development Board for
smart grid solutions.

Source: Frost & Sullivan

NF9F-MT 96
Recommendations to City Councils and Governments
How to engage in the smart city ecosystem?

Complex projects require collaboration between government agencies, the


private sector, and city stakeholder constituencies such as citizens,
Consortium
universities, and not-for-profit organizations. Pooling expertise and resources
Approach from all sectors to form a consortium can help to achieve local and regional
goals.

Form a Governments can lead by example and bring together agendas by breaking
silos, or by providing zero-interest loans or revolving funds for hospitals,
charter and schools, or municipal buildings to drive smart city projects. For example, the
agenda Climate Smart Precincts work in Australia is led by the state governments.

Peer Stakeholders can conduct a peer analysis of cities at similar levels of urban
development to identify investments of companies in the same industry and
analysis of
to identify focus areas of the city council. For example, the NCS projects in
similar Singapore and Melbourne, where the level of urban and technological
cities development is similar.

Look for opportunities to pilot business models by using universities as test


Pilots to beds to measure the viability of a citywide rollout and to identify stakeholder
project value to convert pilots into bankable projects. For example, the Living Lab
rollouts initiative is being run by the Singapore Economic Development Board for
smart grid solutions.

Source: Frost & Sullivan

NF9F-MT 97
Recommendations to Companies in the Private Sector
How can the private sector engage in the smart city ecosystem?

1. Identify Best Fit Business Model

Evaluate Identify best fit role based on internal Build team of experts from Finalise business model to
opportunities capabilities and future roadmap different domains operate in the ecosystem

2. Identify Strategic Partnership Opportunities

Identify city Examine resource Build a collaborative suite of Short-list opportunities to pursue and best way to
planning availability and best fit offerings to enable strategic form alliance, such as joint ventures, mergers
priorities environment alliances and acquisitions (M&As), tie-ups

3. Collaborate with the government or city council

Bid for projects Proactively engage between developers and city


Align strategic plans Evaluate and plan funding
with local data store owners to encourage the release of
to city council goals models and revenue models
government datasets

4. Create an integrated digital platform

Create an entire ecosystem that is all inclusive of Move away from siloed approach to providing
Build an integrated
applications and connects across all departments holistic integrated platforms by partnering with
open digital platform
within the city telecom service providers

5. Pilots and Rollouts

Performance review Establish revenue model and ensure return on


Implement Scale-up pilots for full-
mechanism and investment in the form of energy savings or
pilots and trials fledged horizontal rollouts
milestones fee-based model, for example

Source: Frost & Sullivan

NF9F-MT 98
Key Conclusions and Future Outlook
Smart cities will thrive with dynamic business models in a disruptive environment; technology and
governance will be key enablers for participants in this ecosystem in Asia-Pacific.

Smart Cities: Key Findings and Future Outlook, Asia-Pacific, 2025

8 big smart Focus on


Networked Smarter
10 smart cities city projects in technology
infrastructure infrastructure
in Asia-Pacific emerging enablement,
and sensor with efficient So What?
by 2025 nations in governance,
networks utility systems
APAC and mobility

Collaborative Smart City Convergence of Leveraging data for Technology


Projects Competition Governance Enablement

• The traditional, silo-like • Ecosystem convergence • Smart cities will emerge • Connectivity will be a key
model is transforming to will increase between as Big Data hubs with enabler while designing
a more collaborative, energy, infrastructure, IT, data from sensors and an omni-channel
integrated service telecoms, and networks being collected, experience platform
delivery model. government stakeholders analysed, and monitored across all touch points
• Consortiums with to deliver integrated in real-time by a central including online and
different stakeholders will services. monitoring command mobile.
be established. centre.
• New business models • Data from sensors will
• Transparency of data enable private • This will be used to enable new technologies
exchange will lead to an participants to act as optimise and streamline to integrate softer
all-encompassing developers, policy city operations and aspects, such as
approach to developing makers, and/or project resolve issues in real- customer perception and
smarter cities. managers. time. citizen awareness.

Source: Frost & Sullivan

NF9F-MT 99
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NF9F-MT 100
Appendix

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NF9F-MT 101
List of Acronyms and Abbreviations

AMI Advanced Metering Infrastructure ITS Intelligent Transport System


APAC Asia-pacific JV Joint Venture
ATMS Advanced Traffic Management System KL Kuala Lumpur
B2B Business-to-business M2M Machine-to-machine
B2C Business-to-consumer M&A Merger and Acquisition
BKC Bandra Kurla Complex MIT Massachusetts Institute of Technology
BOO Build Own Operate MMDA Metro Manila Development Authority
BOM Build Operate Manage Mumbai Metropolitan Region Development
MMRDA
BOT Build Operate Transfer Authority
CAGR Compound Annual Growth Rate MWCJ Mahindra World City, Jaipur
Capex Capital Expenditure NFC Near-field Communication
DG Distributed Generation NSIC New Songdo International City
EIU Economist’s Intelligence Unit OBM Open Business Model
GDP Gross Domestic Product Organization for Economic Co-operation And
OECD
GHG Greenhouse Gas Development
GIFT Gujarat International Finance Tec-city Opex Operational Expenditures
HVAC Heating, Ventilation, and Air Conditioning PPP Public-private Partnership
IBD International Business District Singapore-MIT Alliance for Research and
SMART
IL&FS Infrastructure Leasing & Financial Services Technology
IMF International Monetary Fund T&D Transmission and Distribution
IoT Internet of Things UHC Universal Health Coverage
IP Intellectual Property USD United States Dollar
IT Information Technology ZEB Zero Energy Building

Source: Frost & Sullivan

NF9F-MT 102

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