May 17, 2012

Despite Recession Bbite Sees Opportunities for Growth in the UK’s Technology Markets (3 of 4)

The UK is officially in another recession with the dreaded ‘double-dip’ and with the economy bumping along the bottom, inevitably there is pessimism in the air.

However, at times like this, it is important to take a step back and focus on the areas in which we excel. For the UK it is innovation and in particular innovation around high-tech. The UK thrives on its culture of innovation and on the practical creativity of its graduates and engineers.

So, looking at where the UK is particularly adept at innovation, points us to markets of opportunity for growth. Global opportunities which demand high skills and technical capabilities are present within the UK’s current economy.

Continuing from Part 1 and Part 2...

This is Part 3 in a series of 4 outlining those six markets of opportunity.

AD is vital to the UKs EXPORT market. AD UK Employs 100,000 people, is worth £23b p.a. with £16b exports – BIG BIG BIG. UK AD is the largest in Europe and second in the world only to USA. The UK has a 17% global market share. AD UK is BIG for now and ever. New technologies are being acquired and developed continuously.

Security - The Queen’s Jubilee and the Olympics drove demand for security and surveillance capability. Last minute spending is expected continue through 2012 for implementation and post-event analysis.

Space – The UK Space Agency and the European Space Agency (ESA) will be funded to enable the development, commercialisation and exploitation of space technologies and services based on space data. The UK Space Innovation and Growth Strategy (available at ) highlights the opportunity for the UK to capture 10% of a global market which is forecasted to be worth £400bn in 2030. A UK International Space Innovation Centre is to be established.

The UK has a strong transport industry with significant capabilities in the aerospace, road, rail and marine sectors as well as newer capabilities in intelligent transport systems. Transport is responsible for about 25% of the UK’s carbon emissions and congestion in our transport system is set to cost the economy £22bn by 2025. The transport (manufacturing) sector in the UK employs more than 1.3 million people directly, has a turnover of more than £123bn and provides nearly £40bn of GVA. The UK has key R&D activities in the automotive and aerospace sectors and is well-placed to develop and commercialise innovations that meet the demands of future transport in the areas of energy management, carbon reduction, integration and mobility.

The impact of growing demand for transport in terms of environment, energy use and efficiency demands a transformation in performance to deliver a sustainable transport system. The UK continues to lead the way in high tech vehicles dominating: Formula 1 Cosworth are investing; McClaren now have a production vehicle being developed out of Woking (e.g. McLaren MP4-12C road car high-tech production facility in Woking); €220m in Nissan’s first electric car and first production of European electric vehicle batteries. Green issues drive the investment in electric vehicles. They need charging points.

Other technologies being developed include infrastructure communications between highways, agencies and vehicles, electric propulsion, anti-collision radar, hybrid/electric vehicle,  infotainment, innovation in rail – enabling integrated, sustainable and profitable systems.

Needs are growing for less power consumed by everything as data rates surge. Everyone are demanding 24-hour infotainment in full HD colour. There is a need to reduce power consumption in everything from audio, visual to touch devices. The need for lower power consumption drives the need for higher precision measurements. 

One of the key goals is to achieve lower power wireless technologies for smart phone market. 35% of smart phones in 2012 to be shipped with dual mode Bluetooth low energy a.k.a. Bluetooth Smart Ready.  Low power WiFi enabled PC peripherals and low power wireless communications will proliferate.

Environmental Energy In many areas, the UK is leading technology development, such as in wave and tidal generation devices, or in providing leading markets and supply chain capabilities such as in offshore wind turbines. Countries that can innovate to find sustainable solutions most rapidly will most likely to benefit. The effective use of resources, energy and social capital is a prerequisite for long-term economic success. Those businesses that can manage these successfully are likely to have the most staying power. The challenge is to introduce the ‘triple bottom line’ of environmental, social and financial sustainability from the start.

Next week, Part 4 concludes with Wireless, Manufacturing & Development and an introduction to the process for absorptive capacity. Meanwhile, get your copy of the World Electronic Industries Report & Forecast 2010-2015 by clicking on the banner below:

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The views expressed in this presentation are those interpreted by Bbite drawn from public declarations accessed during research. Bbite reserves the right to reuse this material.

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