June 2018 Market Insights – Technology

Complimentary Content

Transformative Technologies

• ARM buys Stream to provide integrated device and connectivity management offering for IoT market – Sam Lucero
  ARM has acquired Stream Technologies and will add the company to its IoT Service Group to extend the Mbed Device Management Platform with connectivity services/service management capabilities.
• IOT World 2018 showcases the expanding universe that is the internet of Things – Matt Short
  Technology fundamentals are becoming pervasive, but it is still baby steps. However, there are three key areas where it was encouraging to see significant progress from the industry.
• Smart Home Companies Diversifying – Blake Kozak
  In the most recent competitor database, smart home companies were analyzed across several factors, including the number of connected consumer devices by segment, smart speaker compatibility, company size, and platform.

Building, Home & City Technology

• Siemens expands its smart buildings presence through its acquisition of Building Robotics – Bryan Montany
  In its third smart buildings acquisition this year, Siemens Building Technologies Division announced its intention to acquire Building Robotics Inc., a vendor responsible for the smart workplace application, Comfy.
• Fire detection and suppression equipment market to reach $179 million globally in 2022 – Robert Brooks
  As data center construction continues to mount owing to increasing demand from the Internet of Things, data center architecture is evolving.
• Amazon solidifies its smart speaker portfolio with Alexa for Hospitality – Bryan Montany
  Amazon on 19 June announced Alexa for Hospitality, a new version of its Alexa voice assistant, tailored and optimized to support unique interactions with hotel guests.
• Voice-operated alarm systems expected to grow at a 7 percent CAGR through 2022 – Anna Sliwon
  Home assistants developed by Amazon, Google, and others are changing how consumers interact with connected home devices, including intruder alarms.

Displays

• <span/>First foldable AMOLED smartphone displays expected to hit market this year – Jerry Kang
  Foldable active-matrix organic light-emitting diode (AMOLED) smartphone displays are expected to debut in 2018, as consumer demand grows for large-screen smartphones.

Enterprise & IT

• Ethernet switching market surges 12% year over year, fueled by data center and campus upgrades – Matthias Machowinski
  Ethernet switch revenue declined 10% sequentially in Q1 2018 due to a seasonal slowdown in demand, but the longer-term growth outlook remains positive and strengthened further during the quarter.
• ARM buys Stream to provide integrated device and connectivity management offering for IoT market – Sam Lucero
  ARM has acquired Stream Technologies and will add the company to its IoT Service Group to extend the Mbed Device Management Platform with connectivity services/service management capabilities.
• Data center and enterprise LAN SDN market reach $4.4 billion in 2017; VMware and Cisco are leaders – Clifford Grossner, Josh Bancroft
  Global data center and enterprise LAN software-defined networking (SDN) market revenue—including SDN-in-use bare metal and branded Ethernet switches and SDN controllers—is anticipated to reach $15.8 billion by 2022.
• Richer server configurations in Q1 2018 led to a 32% year-over-year rise in data center server revenue – Clifford Grossner, Vladimir Galabov
  Richer server configurations, supported by new compute and memory-intensive workloads, led to a 32% year-over-year increase in data center server revenue, which hit $17.9 billion in Q1 2018.
• IOT World 2018 showcases the expanding universe that is the internet of Things – Matt Short
  Technology fundamentals are becoming pervasive, but it is still baby steps. However, there are three key areas where it was encouraging to see significant progress from the industry.

Healthcare Technology

• Artificial intelligence, handheld systems, and end-user comfort dominating ultrasound equipment design – Holley Lewis
  Three trends have dominated ultrasound product launches of the past year: artificial intelligence capabilities, handheld systems, and designing for the end-user’s comfort.

Manufacturing Technology

• China’s machinery production market set to grow 7.9% in 2018 – Teik Chuan Goh
  China's machinery production is growing at a slightly slower rate in 2018 than in 2017, but the industry is exhibiting strong growth of 7.9%.
• IoT innovation becoming key driver of the embedded computing market – Brian Arbuckle
  Global revenue in the embedded computing market contracted 3.1% year over year, falling to $2.5 billion in 2016, owing to the ongoing effects of the collapse of the xTCA telecom market.

Media & Advertising

• Telefonica regains TV rights to La Liga – Tim Westcott
  Telefonica has regained control of most of the rights to Spanish first-division football from the start of the 2019/20 season, with challenger Mediapro losing all residential domestic rights.
• Kinepolis selects laser for start of replacement wave with Cinionic/Barco – Charlotte Jones
  Kinepolis has earmarked the start of its replacement schedule of first-generation digital projectors to laser technology in a deal with Cinionic/Barco for 300 laser systems during the next three years.
• Cineworld makes major commitment to panoramic ScreenX format – Charlotte Jones
  Cineworld, the second-largest global exhibitor by screen count, has made a significant commitment to the novel ScreenX format from Korean technology brand CJ 4Dplex.
• Vietnam to tighten control on online media – Kia Ling Teoh
  In June 2018, the Vietnamese government passed a cyber security law that will see the country tighten its control on online media companies operating in the market.
• Sky and Perform win rights for Serie A for next three seasons – Matteo Marchello
  After more than a year, Italy’s Lega Calcio Serie A has awarded domestic rights to the country’s top football championship for the next three seasons, with Perform Group entering the market for the first time alongside incumbent Sky.
• Amazon and BT buy remaining Premier League packages – Tim Westcott
  Continuing its move into live streaming sport, Amazon has acquired a package of rights to the Premier League in the UK from 2019 to 2022.
• Local players struggle as Netflix leads Dutch subscription market – Max Signorelli
  Dutch telco KPN is to close its over-the-top service KPN Play on 2 July. Another local on demand venture, Knippr from T-Mobile, closed officially on 1 June.
• Samsung targets India as major territory for growth of Cinema LED – Charlotte Jones
  PVR cinemas and INOX, the two leading multiplex circuits in India, have both agreed to install the potentially disruptive Cinema LED display technology branded as ONYX from Samsung later in 2018.

Mobile & Telecom

• Ethernet switching market surges 12% year over year, fueled by data center and campus upgrades – Matthias Machowinski
  Ethernet switch revenue declined 10% sequentially in Q1 2018 due to a seasonal slowdown in demand, but the longer-term growth outlook remains positive and strengthened further during the quarter.
• Wyplay embraces Android Operator Tier – Merrick Kingston
  Wyplay has become the latest set-top middleware and UX vendor to embrace the Android TV platform and to market a custom launcher for Android TV’s Operator Tier.
• Comcast outbids Disney for Fox, as court clears way for AT&T takeover of Time Warner – IHS Markit Technology Expert
  Comcast has made an offer for the entertainment assets of 21st Century Fox, outbidding the Walt Disney Company by around 19%.
• ARM buys Stream to provide integrated device and connectivity management offering for IoT market – Sam Lucero
  ARM has acquired Stream Technologies and will add the company to its IoT Service Group to extend the Mbed Device Management Platform with connectivity services/service management capabilities.
• It’s hard to get rid of those good old DMS switches! – Stéphane Téral
  That’s the key takeaway from Ribbon Perspectives 18’s Network Transformation panel held on 5 June in Los Angeles. With more than 600 attendees and loud L.A.-style music blasting before, between, and after sessions, the event keeps growing.
• Data center and enterprise LAN SDN market reach $4.4 billion in 2017; VMware and Cisco are leaders – Clifford Grossner, Josh Bancroft
  Global data center and enterprise LAN software-defined networking (SDN) market revenue—including SDN-in-use bare metal and branded Ethernet switches and SDN controllers—is anticipated to reach $15.8 billion by 2022.

Mobile, Consumer & Connected Devices

• Amazon Fire TV Cube: The latest in the wave of TV-connected smart speakers – Paul Erickson
  Amazon announced its newest member of the Echo smart speaker line on 7 June, the Fire TV Cube.
• Sonos' new Beam soundbar: a glimpse into the full voice-controlled TV experience – Pau Erickson
  Sonos in June launched its new $399 Beam soundbar, a combination Sonos connected speaker, assistant-agnostic smart speaker, and home theater soundbar.
• Smart Home Companies Diversifying – Blake Kozak
  In the most recent competitor database, smart home companies were analyzed across several factors, including the number of connected consumer devices by segment, smart speaker compatibility, company size, and platform.

Power & Energy Technology

• Power semiconductor market remains buoyant: Highlights from PCIM Europe 2018 – Richard Eden
  The following insight from IHS Markit details key themes and takeaways from the PCIM Europe 2018 trade show and conference, held in Nuremberg, Germany, earlier this month.
• China’s solar policy change triggers another cycle of price pressure and industry consolidation – Edurne Zoco
  Although photovoltaic (PV) industry fundamentals remain solid, recent solar industry policy changes in China will lead to overproduction, price declines, and market consolidation.

Security Technology

• Fire detection and suppression equipment market to reach $179 million globally in 2022 – Robert Brooks As data center construction continues to mount owing to increasing demand from the Internet of Things, data center architecture is evolving.
• Amazon solidifies its smart speaker portfolio with Alexa for Hospitality – Bryan Montany
  Amazon on 19 June announced Alexa for Hospitality, a new version of its Alexa voice assistant, tailored and optimized to support unique interactions with hotel guests.
• Voice-operated alarm systems expected to grow at a 7 percent CAGR through 2022 – Anna Sliwon
  Home assistants developed by Amazon, Google, and others are changing how consumers interact with connected home devices, including intruder alarms.

Semiconductors

• US-China tariff dispute will spill into semiconductors and consumer electronics – Myson Robles-Bruce
  For the semiconductor space, the escalating tariffs dispute between the United States and China will be a bruising zero-sum game injurious to both sides in which there are no winners.
• Power semiconductor market remains buoyant: Highlights from PCIM Europe 2018 – Richard Eden
  The following insight from IHS Markit details key themes and takeaways from the PCIM Europe 2018 trade show and conference, held in Nuremberg, Germany, earlier this month.

Subscriber Content

Displays

• Foxconn breaks ground in Wisconsin – Paul Gagnon
  Foxconn hosted a groundbreaking ceremony on 28 June for its Wisconn Valley Science and Technology Park, showcasing the level of investment in both manufacturing technology and local community development. This presentation offers an analysis of the event.
• Global demand for automotive display systems expected to continue strong growth in 2018 – Hiroshi Hayase
  Both revenues and shipments of automotive display systems are forecast to see double-digit growth this year.
• Head-mounted display for VR headsets to grow sharply in H2 2018 due to discounts – Hiroshi Hayase
  Low-temperature polysilicon TFT LCD is challenging AMOLED to increase shipments for the virtual reality market.
• IT displays at Computex 2018 – Jason Hsu
  At Computex 2018 in Taipei, industry giants, including software and chip makers, promoted the next wave of innovations.
• Will panel prices stop declining in Q3? – Nick Jiang
  Panel makers are aggressively clearing inventory, and panel prices were near cost in May—a sign that the market will soon become more active.
• Foxconn and Innolux acquire 3.1% and 4.1% share in Vizio – Deborah Yang
  In late June, Foxconn and Innolux each separately announced new investments in Vizio of 3.1% and 4.1% share, respectively, adding to their previous holdings and in the process gaining control of Vizio with a combined 15% stake.
• Virtual reality display trends and shipment forecast – Brian Huh
  Panel makers are focusing on higher-ppi virtual reality displays. AMOLED is the mainstream technology in use, but TFT LCD is becoming an affordable alternative.
• Displays at CES Asia 2018 – Ricky Park, Brian Huh, Kimi Lin
  Consumer Electronics Show (CES) Asia is the premier event for the consumer technology industry, showcasing the full breadth and depth of the innovation value chain in the Asian marketplace.
• Displays at SID Display Week 2018 – Stacy Wu
  Exhibitors at SID Display Weeks showed foldable, transparent, and mini/micro-LED displays.
• Demand is not bad, but oversupply continues – Ricky Park
  Gen 10.5 capacity will increase by 54 million to 67 million sq. m. during the next four years, so TV set makers are hesitant to stock inventory, expecting lower prices.
• Japanese panel makers dynamic update – Linda Lin
  JDI hopes to get the Apple Watch OLED business, and Foxconn needs a successful Chinese online shopping festival in June to reduce inventory problems.
• CSOT announces T7 – Chase Li
  China Star Optoelectronics Technology (CSOT) announced in May its plan to build a second Gen 10.5/11 fab.
• Making borders seem slimmer – Joy Guo
  Smartphone displays continue to enhance the ratio of active display area to set area. With the introduction of the notch design, OEMs and display makers must determine how to make the bottom border seem slimmer.
• Price of silicon-based fingerprint sensors falling rapidly – Kimi Lin
  The average selling price (ASP) of traditional silicon-based fingerprint sensor will be below $2.2 in H2 2018.
• Smartphone display delivery issues through 2018 – Joy Guo
  Smartphone display panel capacity is in oversupply, but module capacity will be tight from Q2 2018, with a shortage to continue through 2018 owing to capacity bottlenecks.
• Integration of key components into panels – Charles Annis
  Technology advances are adding value and increasing the performance of flat-panel displays.
• Trend toward affordable interactive white boards – Calvin Hsieh
  The interactive white board (IWB) is an emerging application for commercial and educational use. New capacity and touch technology may help drive demand.
• Automotive display industry trends: Beijing Auto China – Stacy Wu
  Connected cars and new energy vehicles (NEV) are reshaping the auto display industry.
• Flat panel demand to grow 6% in 2018 – Ricky Park
  The forecast for panel area demand this year is approximately 211 million sq. m., with Gen 10.5 fabs producing larger TV panels but lower refresh rates for smartphones.
• LG Display’s fab restructuring status and outlook – Alex Kang
  LG Display is trying to give a soft landing to its new business model by aggressively investing in OLED TV panel fabs and maintaining its LCD business profitability.

Enterprise & IT

• OpenStack Summit 2018: Clouds, containers, and computing take center stage – Devan Adams
  The OpenStack Summit was held in Vancouver, British Columbia, from 21 to 24 May 2018, with roughly 2,600 people attending this year’s event.
• Recent enhancements to IoT Devices & Connectivity Intelligence Service – Julian Watson
  Based on customer feedback, we have recently added 5G, cellular LPWAN, and non-cellular LPWAN to the IoT Devices & Connectivity Market Tracker.
• It’s hard to get rid of those good old DMS switches! – Stéphane Téral
  That’s the key takeaway from Ribbon Perspectives 18’s Network Transformation panel held on 5 June in Los Angeles. With more than 600 attendees and loud L.A.-style music blasting before, between, and after sessions, the event keeps growing.

Media & Advertising

• Wyplay embraces Android Operator Tier – Merrick Kingston
  Wyplay has become the latest set-top middleware and UX vendor to embrace the Android TV platform and to market a custom launcher for Android TV’s Operator Tier.
• Netflix to add Minecraft: Story Mode to its emerging interactive-content category – IHS Markit Technology Expert
  Netflix has announced that it will release a version of Telltale Games’ Minecraft: Story Mode for its video-streaming platform later this year.
• Comcast outbids Disney for Fox, as court clears way for AT&T takeover of Time Warner – IHS Markit Technology Expert
  Comcast has made an offer for the entertainment assets of 21st Century Fox, outbidding the Walt Disney Company by around 19%.
• Valve partners Perfect World to bring Steam to China – Chenyu Cui
  Perfect World announced that it is working on “Steam China,” which indicates an upcoming official launch of the platform in China.
• UK approves potential Fox, Comcast bids for Sky – Tim Westcott
  The UK government will allow 21st Century Fox to go through with its bid to acquire the 61% of the company it does not own, on condition that it sells Sky News.

Mobile & Telecom

• Wyplay embraces Android Operator Tier – Merrick Kingston
  Wyplay has become the latest set-top middleware and UX vendor to embrace the Android TV platform and to market a custom launcher for Android TV’s Operator Tier.
• Comcast outbids Disney for Fox, as court clears way for AT&T takeover of Time Warner – IHS Markit Technology Expert
  Comcast has made an offer for the entertainment assets of 21st Century Fox, outbidding the Walt Disney Company by around 19%.
• It’s hard to get rid of those good old DMS switches! – Stéphane Téral
  That’s the key takeaway from Ribbon Perspectives 18’s Network Transformation panel held on 5 June in Los Angeles. With more than 600 attendees and loud L.A.-style music blasting before, between, and after sessions, the event keeps growing.

Mobile, Consumer & Connected Devices

• Foxconn Wisconsin groundbreaking ceremony – Paul Gagnon
  On 28 June, Foxconn was joined by senior US government officials, including President Trump, in breaking ground officially at the Wisconn Valley Science and Technology Park in Mount Pleasant, Wisconsin. IHS Markit was invited to attend, and a summary of the event is presented in the attached.
• Analysis of China 6/18 TV sales event – Bing Zhang, Hisazaku Torii
  In China, traditional selling holidays are giving way to manufacturer "shopping holidays," and the 6/18 event is the largest in the first half of the year.
• Wyplay embraces Android Operator Tier – Merrick Kingston
  Wyplay has become the latest set-top middleware and UX vendor to embrace the Android TV platform and to market a custom launcher for Android TV’s Operator Tier.
• TV sets excluded from China tariffs – Hisazaku Torii, Paul Gagnon
  On 15 June, the US Office of the Trade Representative released the final document indicating which of the more than 1,300 products were to be included in tariffs against Chinese imports.

Power & Energy Technology

• Key takeaways from EES Europe 2018 – Sam Wilkinson, Julian Jansen
  The IHS Markit analyst team attended SmarterE 2018 in Munich featuring EES Europe, which continues to grow, reflecting the positive development across the global and European energy storage market.
• Key takeaways from Intersolar Munich 2018 – Sam Wilkinson, Josefin Berg, Cormac Gilligan, Edurne Zoco
  Intersolar Munich is the leading event in Germany for renewable energy and energy storage. The scale of the event provides a crucial overview of the respective industries and the current market status in Germany and globally.
• Nevada accelerates utility-scale solar plus storage in the United States – Camron Barati, Julian Jansen
  On 31 May 2018, electric utility Nevada Energy announced plans to offer six contracts for solar PV projects for a total 1 GWac.
• China PV market update - impact of recent changes – Josefin Berg, Holly Hu
  On 31 May 2018, China’s National Development and Reform Commission (NDRC), Ministry of Finance (MOF), and National Energy Administration (NEA) published a notice with the aim to curb escalating feed-in tariff payments by restricting the amount of new PV installations under national subsidy schemes.
• China cuts support for solar PV and sends supply chain into oversupply in H2 2018 – Sam Wilkinson, Josefin Berg, Holly Hu
  On 31 May 2018, immediately following the SNEC PV Power Expo in Shanghai, China’s National Development and Reform Commission (NDRC), Ministry of Finance (MOF), and National Energy Administration (NEA) jointly published the “2018 Solar PV Generation Notice.”

Semiconductors

• Executive summary of forecast changes - Q2 2018 – Myson Robles-Bruce
  This is a brief executive summary of AMFT forecast changes produced exclusively for current subscribers.
• Q1 2018 Competitive Landscape Tool (CLT) quarterly updates – Ron Ellwanger
  This insight contains changes to the Quarterly CLT published 28 May 2018.
• Q1 2018 Competitive Landscape Tool (CLT) regional updates – Ron Ellwanger
  This insight contains changes to the Regional CLT that was originally published in March 2018.
• Q1 2018 Competitive Landscape Tool (CLT) annual updates – Ron Ellwanger
  This insight contains changes to the Annual CLT that was originally published in March 2018.