Smart Transportation Systems Executive Summary
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Copenhagen Capacity · Nørregade 7B · DK-1165 Copenhagen K t +45 33 22 02 22 · www.copcap.com · info@copcap.com
Executive Summary The smart transportation systems industry constitutes a position of strength in the Copenhagen Region. The present study aims to map this industry, which combines technologies that reach into well-established regional clusters such as information and communications technology (ICT), cleantech and transportation. The study was conducted by Copenhagen Capacity as part of the proactive investment promotion project “SPI”, involving 15 municipalities in the region. This report pinpoints regional strengths as well as challenges and opportunities available to companies providing software, hardware, products, solutions and services for smart transportation systems. The findings of the study will provide a platform for focused growth support to the smart transportation systems industry, and for attracting international companies, talent and investment to the region. The smart transportation systems industry was analysed from perspectives such as business characteristics, culture and collaboration, market, education and talent, and R&D and innovation. This report sums up information drawn from 55 in-depth interviews and a survey of 174 companies and stakeholders in the smart transportation systems sector in the Capital Region, and supportive data from Statistics Denmark.
A market poised for growth
One of the greatest challenges facing major cities around the world is the need for costefficient smart transportation systems to provide safe and smooth traffic flows and sustainable urban and regional growth and development. Copenhagen aims to become the world’s first carbon-neutral city by 2025, and Denmark is determined to become independent of foreign fossil fuels by 2050. To be able to reap the benefits of smart transportation in this context, the development, testing and application of smart transportation systems and solutions attract political focus as well as funds.
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Economic pressures drive demand for intelligent and cost-efficient transport solutions from private and public fleet owners and operators of passenger and freight transportation services.
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Funding is available to support the development of new technologies in all phases until they are ready for market.
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Large public-private investment projects (OPI) provide excellent opportunities for international companies to enter the Copenhagen Region to pursue development and growth.
Smart Transportation Systems © Copenhagen Capacity
A model test and demonstration market
The region is characterised by a strong commitment to government-industry-university interaction as a foundation for creating cutting-edge solutions to regional challenges. This study points to the potential of the Copenhagen Region for testing and demonstrating new products and technologies in areas such as ITS, electric vehicles and smart grid. The attractions of the region as a model test and demonstration market include: •
Denmark is a compact, transparent market with a population of early adopters eager to test new technologies.
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Finding partners to test and demonstrate new concepts for smart transportation is easy.
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A focus on user perceptions and involvement is inherent in business and industry.
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Access to an abundance of detailed and accurate data is easy.
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Highly specialised professional environments in relevant areas of expertise exist at research and knowledge institutions in the region.
Potential for progress
Optimism prevails in the smart transportation sector, and companies possess the organisational capacity to expand. A highly qualified workforce is available but growth will be accompanied by an increasing demand for specialised knowledge and talent, which is not presently abundant in the region. Companies in the industry encourage the formulation of a coordinated political strategy for smart transportations systems across the region in order to promote focused investment, innovation and development. In connection with public tenders and proposals for publicprivate investment projects, companies have found that the public sector is not updated on the latest technological solutions available. In the industry there is a general wish for technical standards in areas such as intelligent transportation systems (ITS) and electric vehicles, just as the study revealed that companies are not fully aware of the variety of business services provided by the region and its municipalities.
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Smart Transportation Systems © Copenhagen Capacity
Strengths of the smart transportation systems industry in the Copenhagen Region The Copenhagen Region hosts a multitude of innovative and internationally oriented companies engaged in the development of smart transportation systems. Common to all of them is their focus on intelligent technologies and sustainability – and their capacity for growth. • 174 companies operate in the smart transportation systems industry in the region. 71% of them expect to launch new products, solutions or services for smart transportation systems in the next couple of years. • The estimated annual turnover of companies in the industry amounts to 88 billion DKK (2011), of which an estimated 21% derives directly from smart transportation systems. • 2,700 people have smart transportation systems as their primary occupation. Most of them are highly educated, and they possess the competencies that the industry requires. • The industry is internationally oriented. 63% of the companies operate in Sweden, Germany and Norway, 50% include the rest of Europe in their market, and 20% operate globally in overseas markets such as the USA and Canada.
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• Large industry players are forwardlooking and eager to cooperate and share insights and solutions. • Research, know-how and consulting, intelligent transportation systems (ITS) and information & communication technology (ICT) stand out as significant strengths in the region. • Computer technology and transport optimisation (fleet management, route planning etc.) are strong suits in the ITS area. Other industry strengths include planning and design, traffic modelling, and algorithms. • Denmark is a pioneering country in the area of alternative fuels and alternative-fuel vehicles. A large number of electric cars are in use in Copenhagen, and optimism and growth expectations are high in the Danish electric vehicle business.
Smart Transportation Systems © Copenhagen Capacity