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Circular Economy Overview

Developed in collaboration with

March 2017

1

Context and headlines

Introduction to the Circular Economy

Among its predictions for the future of Europe, Frost & Sullivan highlights the growth of the Circular

Economy as a key transformative trend

Indeed, resource scarcity is driving governments and businesses to move from a traditional linear

(“make-use-dispose”) model to an approach which is based on reusing, refurbishing and recycling

The Circular Economy has the potential to boost annual savings for EU businesses by

€600m, raise GDP by 1% and create 2m jobs by 2030

In practical terms, the approach breaks into 3 business models; products as a service,

reconditioned products and collaborative consumption

Products as a service – Healthcare Services; Third party sterilization

Up-take is being driven by a range of factors, including the adoption of technologies which require

specialized reprocessing. Nonetheless, continued concerns amongst clinical staff about the quality

and efficiency of third party services acts as a restraint

Frost & Sullivan expects that growth in managed on-site services will drive the overall

market to $2.9b in 2022, a 11.4% CAGR

Source: Frost & Sullivan

2


Products as a service – Healthcare Services; Third party sterilization …

STERIS is the established leader overall whilst Servizi and Cleanpart are strong in their domestic

Italian and German markets. There are however opportunities for players across the value

In Europe, Italy is one of the early adopters of third party sterilization services, behind

only the UK in terms of market maturity; here, Frost & Sullivan expects the managed on-site

services side to reach $150m in 2022, up from $87m in 2015, a 8.2% CAGR

Moving forwards, it is anticipated that the penetration of third party services will continue to

increase in Italy with up to 30-35% of surgical instruments sterilized off-site in 5 years time

Products as a service – Building Technologies; Lighting as a service

The advent of LEDs has revolutionized the lighting market and provided the catalyst for a shift to

intelligent and integrated lighting systems. Due to the higher up-front costs, consumers in B2B

sectors have hesitated to invest so market participants have adopted new approaches

including a service-based model

The education, healthcare and retail verticals have lead uptake with a view to benefitting from

improved security, energy-efficiency and safety.


3


Products as a service – Building Technologies; Lighting as a service …

On the supply side, the transformation has brought a new set of participants to the market with

incumbents such as Philips, Osram and GE joined by semiconductor firms and start-ups

Reconditioned products – Automotive Aftermarket; Remanufactured Parts

In the automotive aftermarket, growth in remanufacturing is being driven by aging vehicle

populations and consistent price differences between reman and new as well as improved

consumer awareness.

Frost & Sullivan expects the total remanufactured auto parts market to reach $14.2b in 2022

up from $8.2b in 2015, a CAGR of 8.1%

From a competitive point of view, Bosch and Delphi are the top global remanufacturers in Europe

which is dominated by regional players

Reconditioned products – Waste Management; Municipal recycling

The Circular Economy model applies to all segments of the waste management industry but is of

particular relevance to municipal waste sector.


4


Reconditioned products – Waste Management; Municipal recycling …

Limited landfill capacities will increase opportunities for recycling as volumes continue to increase

to reach an expected 259m tons in 2017.

In percentage terms, recycling is becoming a more significant treatment method and will

account for 18.0% of volumes in 2017, up from 17.6%

Collaborative consumption – Mobility Services; Bicycle-sharing schemes

Bike sharing operators are continuously striving to incorporate the latest technologies into their

service offerings to optimize usage. Innovation also provides a means with which to address the

challenges of theft and vandalism and to reduce redistribution costs

In 2015, over 440 cites across Europe had bike sharing programmes accounting for 140,000

bikes and 12,000 stations; France is the largest market, with 45,000 bikes in 38 cities

Several city councils in Europe have awarded tenders for bicycle-sharing system which suggests

that the UK and Italy could grow rapidly

Italy has the highest penetration of bike sharing in Europe, with schemes operating in

122 cities and fleet sizes of 15–100


INTRODUCTION TO THE CIRCULAR ECONOMY

5

Among its predictions for the future of Europe, Frost & Sullivan

highlights the growth of the Circular Economy as a key

transformative trend

Europe’s economy will slip to third position in the

next decade, superseded by the United States.

China will overtake the EU and account for 21% of

the global economy.

The circular economy will boost annual savings for

EU businesses by $669.9 billion (€600 billion); it will

also raise GDP by approximately 1% while creating

2 million additional jobs by 2030.

More than 50% of Europe’s GDP will arise from the

top 5 economies (the United Kingdom, Germany,

Spain, Italy, France). By 2030, Britain will become

the powerhouse of Europe by overtaking Germany.

China will continue to dominate European FDI.

Europe received significant amounts of Chinese

FDI over the past 4 years, with investments

averaging $10 billion, annually, from 2011 to 2014.

The collaboration economy will reach new heights

as the sharing economy will grow exponentially,

with the United Kingdom leading Europe with an

estimated revenue of $9 billion by 2025.

Europe accounted for around 37% of global

merchandise trade in 2014, which is the highest in

the world. The EU’s new trade policy will boost the

economy by more than 2% ($274 billion).

Future

Economic

Trends

6Source: Frost & Sullivan

Indeed, resource scarcity is driving governments and businesses to

move from a traditional linear (“make-use-dispose”) model to an

approach which is based on reusing, refurbishing and recycling

Suppliers

Manufacturers

Retailers

Consumers

Landfill/Waste Management

Linear

Economy

Circular

Economy

Reuse/

Redistribute

Refurbish/

Remanufacture

Recycle

$700 billionin consumer goods

material savings

$1.80 trillion per annum savingsin avoiding waste

in textiles

$1.50 billion in collecting household

food waste annually in the United Kingdom

Savings in reusing/

refurbishing/recycling

Source: Frost & Sullivan; ESA; Ellen MacArthur Foundation

Circular economy refers to an industrial economy that, contrary to a traditional linear economy, reclaims

used materials and recycles them as secondary raw materials for new products.

7

The Circular Economy has the potential to boost annual savings for

EU businesses by €600m, raise GDP by 1% and create 2m jobs by 2030

Source: Frost & Sullivan; EU Commission Consumption

Product Policy

Measures

Recycle

Manufacturing

Waste Policy

Measures

Textile Re-use

Furniture Re-use

Minimised Food Waste

Waste Taxes

Product Policy

Measures

Reusable

Products;

Ease of

Disassembling

Use of

Recycled

Plastics in

Manufactured

Products Ensure

Product

Longevity

Sharing

and Leasing

Schemes for

Products

18K Extra

Jobs

€72 billion of savings/

year in terms of waste

management costs

Benefits of a Circular Economy, Europe, 2030

146-244M Less

Tonnes of GHG

Emission

Key Targets in Circular Economy Proposal

Phase-out landfilling for compostable /

recyclable material

70% recycling target of municipal solid

waste

80% recycling target of packaging waste

Long-term Benefits

2-4% drop in EU’s total annual GHG

emissions

2 million additional jobs

€600 billion annual savings for EU

businesses

8

In practical terms, the approach breaks into 3 business models;

products as a service, reconditioned products and collaborative

consumption

Zipcar provides a car-sharing service

that offers customers shared access

to a pool of cars located throughout

their city.

• Pay per service unit

• Product renting

• Product lease

• Product pooling

Products as a

Service

Collaborative Consumption

• Social media exchange platforms

• Harnessing idle resource capacity

• Crowdsourcing

Netflix provides collaborative services to its customers by managing a single collection of movies, delivering DVDs through the mail, and providing online

streaming media.

• Remanufacturing used components

• Product transformation with effective design and service

Reconditioned Products

BMW sells its remanufactured parts,

which provides 50% cost savings to

customers compared to new ones, but

with the same quality specifications.

Circular Economy Driving New Business Models


PRODUCTS AS A SERVICE – Healthcare Services

THIRD PARTY STERILIZATION

The two most prominent third party sterilization models in the US

and Western Europe are off-site and managed on-site services


Third Party Sterilization Services

Third Party Sterilization Market: Market Segmentation, US and Western Europe

On-site (Within hospital premises) Off-site (Outside hospital premises)

Reprocessing of Single

Use Devices (SUD)*

Reprocessing of

Reusable Devices (RUD)Managed Reprocessing Services

Two predominant models of outsourcing of CSSD (Central Sterile Supply Department) are:

• Managed on-site: The third party provider takes up management of CSSD on hospital premises. Various models exist

such as co-managed services, contract services, and consultancy services. Typical contract ranges 3–5 years.

• Off-site sterilization services: The third party provider processes the instrument at its own facility at a distance from the

hospital. The provider takes responsibility of logistics, facilities, and equipment, and charges contract fees.

Typical contract ranges 8–12 years.

11

Reprocessing of SUD is not included in this analysis

Up-take is being driven by a range of factors, including the adoption

of technologies which require specialized reprocessing

Focus on quality and

efficiency

Volume

to Value-

based

Reimburs

-ementsHospital

budget

pressures

Healthcare

Reforms

Increase in

surgical volumes

Reduction

in hospital

numbers

Decreasing

clinical

resources

Increasing

Pressure on

Healthcare

Resources

Advancedsurgical

procedures

Complex

instrumen

-tationSpecialized

reprocessing

requirements

Advanced

Technology

Adoption

Product commoditization

pushing vendors to service

based models

Market

consoli-

dation

through

organic

and

inorganic

growth

Value

chain

integration

lead to evolved

operational

models

Supply-side

Push

Ranking of Factors Based on Certainty and Criticality

Healthcare

Reforms

Advanced

Technology

Adoption

Increasing

Pressure

Healthcare

Resources

Supply - side

Push

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4

Low High1 52 3 4Certainty Criticality


Nonetheless, continued concerns amongst clinical staff about the

quality and efficiency of third party services acts as a restraint

Third Party Sterilization Market: Key Market Restraints, US and Western Europe, 2016-2022

Drivers 1–2 Years 3–4 Years 5–7 Years

Unwillingness by hospitals to give full control of CSSD operations

to third party vendors which might lead to loss of influence in key

decisions

H M M

High clinical and surgeon opposition due to quality and efficacy issues H M L

Relative low number of third party providers leading to low market

penetration and low market influenceM M L

Lack of clarity on business models that are appropriate for different

participants in the value chain to inhibit market adoptionM L L

Impact ratings: H = High, M = Medium, L = Low


Frost & Sullivan expects that growth in managed on-site services

will drive the overall market to $2.9b in 2022, a 11.4% CAGR

Third Party Sterilization Market: Revenue Forecast by Segment, US and Western Europe, 2015-2022

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

2015 2016 2017 2018 2019 2020 2021 2022

Gro

wth

Rate

(%)

Reven

ue

($M

illio

n)

CAGR (2015–2022): On-site Services = 12.3%; Off-site Services = 8.3%

Year

All figures are rounded. The base year is 2015

Offsite Services (Revenue) 310.6 331.1 354.6 385.3 420.5 457.2 496.7 543.2

Offsite Services (Growth Rate) 6.3 6.6 7.1 8.7 9.1 8.7 8.6 9.4

Onsite Services (Growth Rate) 10.2 10.8 12.1 11.8 12.2 13.2 12.5 13.3

Onsite Services (Revenue) 1,059.9 1,173.9 1,316.5 1,471.3 1,651.3 1,868.7 2,101.9 2,382.4


STERIS is the established leader overall whilst Servizi and Cleanpart

are strong in their domestic Italian and German markets

Third Party Sterilization Market: Competitive Market Structure, US and Western Europe, 2015

Number of Companies in the Market ~40

Competitive Factors

Price points (units of instruments sterilized per week/ month) or yearly contract; Terms of contract for

adverse events; Layout planning of the CSSD; Quality of equipment; Systems integration (a universal

partner for all products & services supplied); Support services (call centers, help desks);Training and

education of CSSD staff; Value added services (logistics, instrument tracking, asset management)

Key End-user Groups Hospitals, ambulatory surgical centers, dental, and other specialty clinics

Major Market Participants STERIS, Getinge, Matachana Group, Servizi Italia, Servizi Ospedalieri, Cleanpart Healthcare, Sterience

Average Terms

Managed Services – Typically these are 4–6 year contracts with annualized payment. Various terms

exist ranging from only service to a full refurbishment of CSSD, instrument rental, and service.

Off-site Services – Typically 8–10 year contracts. The vendor comes up with an integrated solution

taking care of other related activities such as logistics and instrument tracking.



There are however opportunities for players across the sterilization

services value chain in related areas such as transportation

Selected vendors

Third Party Sterilization Service Providers

D&S

Equipment &

Consumables

Validation

and Testing

CSSD Design

and Planning

Transport,

Logistics &

Distribution

Instrument

Trace and Track

Solutions

Surgical Asset

and Inventory

Management

16

Overall, the market is being shaped by constant technological and

service innovations such as instrument rental programmesKey Takeaway: Higher savings always do not ensure renewal of managed on-site service contracts, unlike addition of newer services.

Emergence of

managed on-site

services enabling

greater operational

control and shorter

lead times.

However, off-site

services are a highly

viable option for small

facilities with space

constraints, clinical and

ambulatory settings.

$15–25 million for

building an off-site

facility as opposed

to $4–5 million for

on-site

refurbishment

Lead times for

reprocessing of

24–36 hours as

opposed to 8–12

hours for on-site

Transport

and logistics

risks

Environmental

regulation

compliance in

transporting bio-

hazardous

material

Greater storage

area for the

increased instrument

inventory

requirement

Requires about

three times more

stock of trays and

instruments as

compared to on-site

Higher

lead times

Managed on-site service is a newer concept and is a result of operational innovations due to certain limitations of the off-site model, which include:

Further Innovations in the Market Include:

• Instrument Loaner Sets – Often used for specialty surgeries such as spinal, joint, cardiac, etc. It is difficult for facilities to inventory these

specialty types of instruments due to the routine changes in sets and the variety of devices. While there are specialized vendors for this, market

participants have been actively providing this as a value added service.

• Instrument Rental Programs – Surgical instrument rental and sterilization on a per-procedure basis. In addition, instrument repair,

maintenance, and replacements are included in the contract. This helps hospitals optimize inventory and improve process efficiencies by

reducing “flash” or immediate use steam sterilization (IUSS).

• Mobile Sterilization Units – These are fully integrated, mobile CSSDs to ensure continuous support for OR

in case of normal CSSD service disruption due to expansion, construction, or unforeseen disasters.

Increased

storage

requirement

Increased

instrument

inventory

Financial

barrier


THIRD PARTY STERILIZATION

ITALY SNAPSHOT

Third Party Sterilization Market: CSSD Resources and Number of Participants, Italy, 2015

Total number of

Hospitals

1,200–1,250

Total number of

CSSDs

Number of hospitals

catered by a CSSD

3–4

~17.6 million Surgical

Volumes

CSSDs managed by third

parties

120–135

20–35 Number of off-site

Some prominent third- party

participants

• Servizi Italia

• Servizi Ospedalieri

• STERIS Italy

• Steritalia

In Europe, Italy – as one of the early adopters of third party sterilization

services – is behind only the UK in terms of market maturity Infection Control

Regulatory Environment

• The National Agency for

Regional Healthcare

(AGENAS), in cooperation

with the Ministry of Health,

launched the National

Outcomes Program in 2012 to

help policy makers evaluate

all hospital trusts across Italy.

• This program uses a set of

32 indicators to measure

evidence-based outcomes.

These outcomes can then be

used to compare hospitals

and make critical policy

decisions.

• The above, coupled with the

spending review has put

significant pressure on Italian

hospitals to improve their

CSSD functioning.

Healthcare Infrastructure and PatientVolumes

The Italian healthcare system has experienced huge healthcare funding cuts to the tune of $2.23 billion in 2014.

Additionally, co-payments have been implemented to reduce unnecessary hospital admissions and diagnostics

related expenses.• Nursing shortages have led to a large

inflow of foreign nurses, with 10% of all

nurses currently being of foreign origin

• Further, fiscal austerity measures have

forced the reduction in the number of

hospital beds from 4/1,000 to 3.4/1,000.

• 80% of the hospital beds in Italy are

acute care beds. As a result,

un-necessary A&E admissions have

placed a significant financial burden on

acute care hospitals.

Hospital Inpatients and Nurse Population,2009–2015

384.9

369.7362.4

8.07.1 6.6 10

8

6

4

2

0

390

380

370

360

350

Inp

ati

en

ts(M

illi

on

)

Nu

rse

Po

pu

lati

on

(‘0

00

)

2009 2013

Nurse Population

2015

In-patients

third party CSSDs450–550 (Inpatient + Outpatient)

Impact on Third Party Sterilization Market: Positive Negative Neutral

Source: Frost & Sullivan; OECD; European Health Observatory19

250

200

150

100

50

Frost & Sullivan expects the managed on-site services side to reach

$150m in 2022, up from $87m in 2015, a 8.2% CAGR


Managed On-site Sterilization Market: Scenario Revenue Forecast, Italy, 2015–2022

0

Conservative Scenario2015 2016 2019 2022

Frost & Sullivan Scenario 86.6 93.4 115.3 150.4

Optimistic Scenario 86.6 97.1 141.3 214.2

Re

ve

nu

e($

Mil

lio

n)

CAGR (2015–2022)

4.6%

8.2%

13.8%

• More than 40% of Italian hospital CSSDs are in need for refurbishment to be compliant with existing standards.

This number is expected to increase to more than 60% by 2022. About 90% of such hospitals are unwilling to allocate the

budgets required to meet the refurbishment costs. Managed services are the ideal solution for such hospitals, enabling

them upgrade to the latest sterilization technologies at no upfront expenditure on revamping.

86.6 90.2 103.5 118.5


35

30

25

20

15

10

5

Growth in the off-site segment will be comparatively slower with a

5.5% CAGR taking the market to $19m by 2022 up from $13m in 2015Off-site Sterilization Market: Scenario Revenue Forecast, Italy, 2015–2022

0

Conservative Scenario2015 2016 2019 2022

Frost & Sullivan Scenario 13.3 13.9 16.8 19.4

Optimistic Scenario 13.3 14.9 21.8 32.7

Re

ve

nu

e($

Mil

lio

n)

CAGR (2015–2022)

3.0%

5.5%

13.7%

• In Italy, surgical procedures differ due to lack of standardization in procedural kits. While this provides surgeons with

freedom to choose instrument of their preference, it has further complicated the job of CSSD technicians when

reassembling such trays. This has added to the demand for third party sterilization services as increased time on

reassembly significantly increases the labor costs and greater requirement of CSSD technicians for hospitals.

13.3 13.7 14.9 16.4

21



Moving forwards, it is anticipated that the penetration of third party

services will continue to increase in Italy with up to 30-35% of surgical

instruments sterilized off-site in 5 years time compared with 18-23%

today

About 70–75% of the CSSDs are in the more than 300 bed hospitals

About 65–75% of the surgical procedures in the country are conducted in these facilities

• Italy has the second-highest penetration of managed services in CSSD after the UK. The country has a high number of CSSD

supported by third party providers.

• While managed services contract renewals have remained stable, the country’s healthcare spending review has led to several

contract renegotiations, impacting margins of existing participants. However, this is expected to be a short-term impact.

• We estimated that about 18–23% of the surgical instruments in the country are sterilized in off-site sterilization centers in the

country. We expect this increase to reach 30–35% in the next 3–5 years.

• Managed service solutions are likely to increase, albeit at a slower pace as compared to other countries. Instrument loaner and

instrument rental services are some of the value added services expected to provided significant advantage to competitors.

• The sterilization equipment market is mature and has had a low growth rate, but with increase in adoption of managed services

and off-site sterilization, the replacement market is expected to decline further.


PRODUCTS AS A SERVICE – Building Technologies

LIGHTING AS A SERVICE

The advent of LEDs has revolutionized the lighting market and

provided the catalyst for a shift to intelligent and integrated lighting

systems Light as a Service: Lighting Market Transformation, 2000–2020

Time Line

2012 2015

Fragmented market

Smart buildings/cities

and towns

Traditional Lighting

Single Application

Full Integration into the IoT

Entrants from

Asia

Increased

functionalities

Competitive

distribution

channel

New IT startups

2020

Ubiquitous

2000

LED Lighting Revolution

Multiple Devices

LED at nascent

stage

Partnerships/integrated

solution-driven value

chain strategy

Smart TechnologyBuilding Performance


Due to the higher up-front costs, consumers in key B2B sectors

have hesitated to invest so market participants have been compelled

to adopt new approaches including notably a service-based model,

known as LaaSLight as a Service: Intelligent Lighting Solutions, 2015

• Multiple sensors detect temperature and ambient light patterns.

• They also detect human movement around cubicles and conference rooms to

regulate the use of lights.

• Companies such as Digital Lumens offer such sensor arrays.

Office Solutions

• Intelligent lamp posts act as a data-collection tool for driving

patterns.

• Sensors in a train station can detect noise levels

Public

Transportation

Solutions

• Dynamic color-changing lighting creates themed environments.

• Automated lighting creates directional spotlights to illuminate tables.

• The solutions can result in a 30% decrease in heating, ventilation, and air

conditioning (HVAC) load and lower capital costs.

Restaurant

Solutions


The education, healthcare and retail verticals have lead uptake with

a view to benefitting from improved security, energy-efficiency and

safety

• Intelligent lamp posts and lighting across schools and universities are critical for

safety, energy savings, and security.

Education

Solutions

• Intelligent lighting in operating rooms eliminate glare.

• The illumination of handrails and bedrails creates easier accessibility to seniors

and people with vision disabilities.

Healthcare

Solutions

• A link between a store’s light sensors and smartphones helps a retailer locate an

item of interest or coupons.

• GE Lighting’s collaboration with Qualcomm Atheros, Inc. is an example of a

“smart” retail experience.

Retail Solutions

Light as a Service: Intelligent Lighting Solutions, 2015


Large commercial offices and corporations are also proving to be

early adopters, opting for digital solutions such as Power over the

EthernetLight as a Service: Office Intelligent Lighting Solutions, 2015

• Large commercial offices and corporations with multiple buildings are moving towards the early adoption of Power over Ethernet (PoE) and

luminaries for energy efficiency and achieving sustainability goals.

• The shift from analog to digital will help end users save on electrical wiring costs by eliminating costly conventional mains wiring and installation.

The result is a reduction in installation time by 50% and overall installation costs by about 25%.

• Additionally, analysis indicates that office employees can seamlessly analyze the data collected through PoE. The collected data can be used to

monitor energy usage and associated costs.

• For example, in various offices across North America, each luminaire has sensors for temperature, occupancy and motion, and infrared sensors

that serve as an emergency control in the event of a power failure or intrusion.

Energy saving realized

through less use of HVAC

in unoccupied areas

Location-based services

via visible light

communications (VLC)

improves productivity

Connected lighting detects

unoccupied areas resulting

in lower operational costs

Intelligent Central Management

Correct light area helps in

employees’ well-beingIndividuals personalize

and adjust lighting

through mobile apps

More themed and

appealing environment

retains employees


On the supply side, the transformation has brought a new set of

participants to the market with incumbents such as Philips, Osram

and GE joined by semiconductor firms like Samsung and start-ups

such as Igor-TechLight as a Service: Competitive Landscape, 2015

• Traditionally, Philips, Osram, and GE have been the dominant brands in lighting market. They offer similar products types and this

perceived commoditization has been a challenge to retaining customer loyalty. Hence, the industry is opening up to new

competitors with expertise in semiconductors such as Cree and Samsung Electronics.

• Simultaneously, the leaders of the lighting industry are under siege by a rash of startups. Most of these startups have found a

niche in the intelligent lighting market. Companies such as Digital Lumens and Igor-Tech have digital-based business models.

• These companies have tackled the problem of high installation costs by providing an innovative platform of network-enabled

lighting. For example, NuLed offers a PoE platform so there is no need to wire switches or sensors directly to different fixtures.

Similarly, Digital Lumens combines LEDs and a wireless network of fixtures to sensors. Its business model is heavily based on

partnerships programs or the company acts as systems integrators for LED manufacturers without software partnerships.

• The long life cycles of LED bulbs of at least 15 years adds to this conundrum. Incumbents also face a business-model challenge in

moving towards a service-based model. Additionally, traditional fixtures manufacturers have formed partnerships with IoT platform

providers who integrate the software into the fixture and deploy their proprietary systems at the facilities. The fixture vendors hold

the agreement and have access to relevant data transmitted trough the platform to the cloud.

• Traditional brands face competition to these IoT platform providers who not only have a technological

edge, but who also are trusted installers and IT technicians.


RECONDITIONED PRODUCTS – Automotive Aftermarket

REMANUFACTURED PARTS

Remanufacturing

Remanufacturing differs subtly but significantly from rebuilding or

repairing with the manufacturer’s goal to make the final product

perform like a new one by adhering to the latest and strictest

specifications

• Used/Defective products

• Disassembly followed by replacing failed parts

• Reassembly

• Predominantly done at independent repair shops

• Warranty covering repair only

• Product retains earlier standard

• Used/Defective products

• Disassembly to individual components

• Cleaning followed by replenishment of parts

• Reassembly, testing for adherence to OE standards,

and re-packaging

• Industrial processes involved

• Back-to-new restoration of assembly

• Like-new warranty or comparable provision

• Upgrade to latest technology

Applicability

Process

Characteristics

Rebuilding/Repair


In the automotive aftermarket, growth in remanufacturing is being

driven by aging vehicle populations and consistent price differences

between reman and new as well as improved consumer awarenessRemanufactured Automotive Aftermarket: Growth Drivers, Global, 2015

HighLow Certainty

Strong growth in global VIO

primarily driven by APAC

Increasing number of

global remanufacturers

setting up facilities in China

and Brazil demonstrates

high growth potential in

these countries

Consistent price spread of 30

to 35% between new and reman

and supported by a competitive

warranty favor reman

These are the factors with the greatest

impact on remanufactured automotive

aftermarket from 2015 onward. Aging

vehicle populations, continued economic

growth, consistent price difference, and

improved consumer awareness are the

biggest drivers. The growth in the number

of older vehicles is likely to result in a shift

from use of rebuilt parts to reman with the

latter's value proposition expected to be

rapidly communicated to technicians and

end consumers globally.

Absence of trade

restrictions within the

European Union favors

core logistics benefitting

reman

High

Low

The APAC average vehicle

age is 4 years which is

expected to increase to 5

years by 2022.

The growing 7+ year-

old vehicle population in

NA and EU will favor

remanufacturingImproving awareness on value

proposition of reman parts

The Federal Vehicle

Repair Cost Savings Act

of 2015 to favour

reman in the U.S

Impact


Nonetheless, the transition from reman to new components in

certain categories and industry consolidation leading to higher

bargaining power among distributers is a key challenge to further

procurement Remanufactured Automotive Aftermarket: Key Challenges, Global, 2015

Core accounting and core devaluation challenge remanufacturers:

Core is a non-productive asset and lowers margins and so its accounting is an issue. When core

values come down, distributors seek more protection.

Lower core return rates challenge core availability: Core returns are always less than 100% either because

some cores are sold to the open market at a higher cost or are not viable for remanufacturing making it challenging

for remanufacturers to supplement the core bank.

Ensuring core billings keep pace with core price adjustments: The fluctuation in demand for newer model applications versus

older ones makes it difficult for the remanufacturer to set the right core price by application. Frequent adjustment in core prices

makes core accounting a challenging task.

Core inventory management is a challenge for remanufacturers: Core inventory management is the biggest challenge with increased

proliferation of parts in the remanufactured engine and transmission aftermarket. Reducing core inventory to maintain an optimum level is difficult

for industry participants.

Remanufacturers are challenged to reduce distributor’s core investment without hurting profitability: As distributors become large due to industry

consolidation, remanufacturers find it difficult to negotiate with them in reducing core investment to keep the remanufacturing market alive.

Transition from reman to new components in certain categories: The remanufacturer bills the distributor for cores that are in its inventory; increasing instances of

transition to new vehicles can make the remanufacturer fall short of cash to write off all the core credits. This causes a cash flow burden for the remanufacturer. Examples of

such categories are CV driveaxles, water pumps, brake master cylinders, and A/C compressors.

Degree of Restraint

Res

train

ing

Fa

cto

rs

Low High


Frost & Sullivan expects the total remanufactured auto parts market

to reach $14.2b in 2022 up from $8.2b in 2015, a CAGR of 8.1%Remanufactured Automotive Aftermarket: Size by Country, Europe, 2015

Italy

Reman Revenue (2015): $1.4 Billion

Market Share (Europe): 17.1%

France



Germany



United Kingdom



Russia

Total Revenue (2015): $0.9 Billion


Rest of Europe

Reman Revenue (2015):

$1.3 Billion

Market Share (Europe):

15.8%

TOP

6

Spain





Unless legislation against reman relaxes in Russia and Turkey, the

future potential lies in Western and, in particular, Eastern EuropeRemanufactured Automotive Aftermarket: Future of Remanufacturing, Europe, 2016 to 2022

CountryLocal

Demand

Reman Presence (vs.

Rebuild / Repair)

Price Spread

(Reman vs. New)

Legislative

Ease

Ease of

Core Collection

Overall

Attractiveness

Western

Europe

Eastern

Europe

Russia

Turkey

1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4

1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4

1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4

1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4 1 52 3 4

0

12 3

4

5

3.8

0

1

2 3

4

5

3.5

0

1

2 3

4

52.4

0

1

2 3

4

52.8

• Reman is most widely accepted in Western Europe because consumers prefer to replace parts for older vehicles with reman, rather than repair but the situation

is the opposite in Eastern Europe although it has started to change.

• The biggest advantage of remanufacturing within the European Union is that import and export of reman and used parts are possible. Legislative barriers

and preference for repairs curb local demand for reman parts in Russia and Turkey.

0 = low and 5 = high


From a competitive point of view, Bosch and Delphi are the top

global remanufacturers in Europe which is dominated by regional

playersRemanufactured Automotive Aftermarket: Remanufacturers by Top Product Categories, Europe, 2015

Top Reman Parts Brake Calipers R&P Steering Gears Steering PumpsECUs & Instrument

ClustersTurbochargers

Growth Potential

Key

Remanufacturers

Bosch Bosch Bosch Delphi BorgWarner

Valeo BorgWarner (Remy) BorgWarner (Remy) Bosch Cummins

Meritor Borg Automotive Borg Automotive SMP Honeywell

Borg Automotive Lizarte Lizarte Siemens AET Turbos

RSL Wat Wat ACtronics Delphi

BTT APS APS DENSO CAT

-- -- -- BBA Reman Detroit Diesel Reman

High LowGrowth Potential


Independent aftermarket distribution channels have been gaining

approximately 1% share annually since the European Commission’s

Block Exemption Regulation opened up the space in 2002 and 2003Remanufactured Automotive Aftermarket: Percent of Revenue by Distribution Channel and Country, Europe, 2015

Commission Regulation (EU) No 1400/2002

• Severs warranty link between OEM and OES

• More choice and access to IAM products as

new channels open up, that is, hypermarkets

and Internet

• Reduction in the number of OES outlets or

vehicle dealerships

• The OES channel is the strongest in Germany, where automakers enjoy high brand loyalty.

• The OES channel is the weakest in the United Kingdom and Spain, as they have more discounted aftermarket

products for sale and/or vehicle owners are migrating to the IAM channel for lower priced parts

and services.



RECONDITIONED PRODUCTS – Waste Management

MUNICIPAL RECYCLING

The Circular Economy model applies to all segments of the waste

management industry but is of particular relevance to municipal

waste sector Municipal Waste Industrial Waste WEEE C&D Waste

• To capture new opportunities, leading

municipalities and corporations should

develop new circular models along their

supply chain.

• Target hard to recycle materials within

waste types to achieve zero waste goal.

• Follow eco-effectiveness approach to

generate cyclical, cradle-to- cradle material

flow.

• Explore if shifting to a particular business

model will make profits and stand up to

consumer demands.

• The circular economy strategy is the key

mega trend influencing the waste

management and recycling services market.

• It provides an opportunity to make the

economy environmentally friendly and

encourages the use of recycled products.

• It will boost technological innovations

reducing the amount of waste entering

landfills.

• Circular economy will also bring in more

employment opportunities, especially in

semi-skilled and entry- level jobs.

Context and Opportunity Call to Action

Applicable

Segments

Europe Americas APAC MEA

Vision Transformation

Megatrends Impact

Disruptive Applications

Business Models

Current Offerings

New Capabilities

Value-add Services

Vertical Integration

Geographic Expansion

Partnerships

Investment / M&A

Applicable

Regions


Here, the approach overlaps with the “zero waste” concept which

has spread across the world with many cities committing to

reaching the goal

Sustainable

Packaging

Smart Cities and Smart

Waste Management

Smart Bins

Zero Waste

MunicipalitiesSmart Waste

Collection Truck

Image Source: itproportal.com Image Source: Treehugger.com

Image Source: Goodyear.euImage Source: Reuk.uk


Limited landfill capacities will increase opportunities for recycling as

volumes continue to increase to reach an expected 259m tons in 2017

0.0

400.0

800.0

1,200.0

2,000.0

1,600.0

MSW Recycling Market: MSW Volume Recycled, Global,

2016 and 2017

MSW Recycling Market: MSW Recycled and Landfilled,

Global, 2016 and 2017

800.0

600.0

400.0

200.0

0.0

1,000.0

Lanfilled

2016 2017

Recycled 243.4 259.0

Trend

Vo

lum

e(M

ton

)

Vo

lum

e

(Mto

n)

2016 2017

Generated 1,734.6 1,745.2

Collected 1,383.1 1,439.4

Recycled 243.4 259.0

503.7504.8

About 1,734.6 Mton of MSW was generated globally in 2016; total volume is

expected to increase to 1,745.2 Mton in 2017.

The MSW collection volume is expected to improve, from 1,383.1 Mton in 2016 to

1,439.4 in 2017 as implementation of sustainable waste management practices

continues, with the most advanced solutions and the highest collection rates

expected in Europe, the Americas, and some APAC Countries.

The amount of recycled MSW is expected to increase by 22 Mton in 2017. New

recycling methods are being introduced in the industry, which will trigger growth.

Strong growth is anticipated for recycling services, with limited new capacities in the

heavily restricted landfilling space.

Key Highlights 2017


In percentage terms, recycling is becoming a more significant

treatment method and will account for 18.0% of volumes in 2017, up

from 17.6%

Landfill

36.5%

Incineration

24.0%

Recycling

17.6%

Biological

Treatment 16.0%

Reuse

6.0%

MSW Recycling Market: MSW Management by Service,

Global, 2016

MSW Recycling Market: MSW Managementby Services, Global, 2017

Key Highlights2016

Although recycling remains

the important waste

recovery method, a still

higher percentage was

landfill. This might be

because certain countries

do not have access to

sustainable waste

treatment.

Waste to energy has

gained increasing

importance across the

globe, especially In

Europe, which has

increased the volume of

incinerated waste.

Waste is pre- treated

biologically before land

filling or incinerating,

which supports growth

of the treatment

methods.

Landfill

35.0%

Recycling

18.0%

Biological

Treatment

17.0%

Reuse 6.0%

Incineration

24.0%

Key Highlights2017

MSW collection rates are

expected to improve, mainly

due to strict environmental

regulations and evolving

policies.

Incineration, recycling,

and biological treatment

technologies are expected

to gain market share as

investment interest and

implementation of

emerging technologies

increase.

Landfilling will remain

the primary MSW

waste management

service, though this

varies significantly by

region.

41Source: Frost & SullivanAll figures are rounded. The base year is 2016

The recycling rate is expected to increase in Europe with particular

market opportunities in Poland and Central & Eastern Europe more

broadly

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

2016 2017

23.2%25.4%

MSW Recycling Market: Percentage Solid Waste

Recycled, Europe, 2016 and 2017

0.00

20.00

40.00

60.00

80.00 $60.99 $62.91

MSW Recycling Market: MSW Recycling Revenue

Share, Europe, 2016 and 2017

2016 2017

So

lid

Wa

ste

Re

cyc

led

Re

ve

nu

e S

ha

re

($ B

illi

on

)

Scenario:

Europe

2016–2017

Key Highlights

Introduction of innovative

solid waste collection and

recycling programs to

recycle waste that was

not previously recyclable

Converting municipal

waste into raw

materials via Smart

Public Procurement

Waste recycling in Europe has considerably improved in the last few

years. Revenue from recycling is expected to increase to $62.91

billion by 2017.

Volume of collection is predicted to increasethroughout the forecast

period because of the EU’s interest in efficient waste treatment and

implementation of separate collection schemes.

The recycling market is considered the second largest revenue

generating area in CEE. This market will also foresee a steady

increase up to 2020. This will be mainly because of the economic

support provided by the governments in constructing multiple

recycling facilities across the region.

Development of novel

recycled paper cups using

recycled paper that holds a

carbon footprint of half the

normal paper cups.

42

All figures are rounded. The base year is 2016Source: Frost & Sullivan

COLLABORATIVE CONSUMPTION – Mobility Services

BICYCLE-SHARING SYSTEMS

A bicycle-sharing system, also known as public bicycle system or bike-

share scheme, is a service that makes bicycles available, for shared use, to

individuals on a short-term basis, usually to facilitate last mile travelBike Sharing Market: Bike Sharing Systems, Europe, 2015

Automatic

• Self-service

• Electronically controlled

racks/locks

• Use of IT for system control and

monitoring

• Ideal for medium-to-large cities

with high population density

Examples: Bycyklen system in

Copenhagen, Velo’v in Lyon

Bike Sharing Systems

Users

• Individuals: Permanent

residents for commuting to

work, students, tourists.

• Communities: Universities,

corporate houses.

Fixed Bike

Sharing

Flexible Bike

Sharing

Docks

at

Station

A

Docks at

Station A

Docks at

Station B

Station

• Over 40% of the global bike sharing systems are

in Europe.

• Over 90% of the bike sharing systems in Europe

are automatic.

• Most bike sharing systems in Europe offer

flexible docking points, with a few systems

gradually transforming to mobile docking

stations.

Manual

• Supervised manually by staff

• May or may not use IT for

tracking and payment

• Ideal for small or medium-sized

townships with low population

density

Examples: C’entro in Bici system in

a number of small Italian towns

(<50k population)


Bike sharing operators are continuously striving to incorporate the latest

technologies into their service offerings to optimize usageBike Sharing Market: Market Trends, Europe

Solar-powered stations

reduce the need to be

connected to an energy

grid.

Individuals could use their personal

mobile devices, typically smartphones, to

systematically report on various aspects

of their environment. The information

would contribute to system design,

infrastructure planning, transportation

modelling, and policy formation.

The innovation of common payment

systems across transit modes such

as buses, trains, taxis, and car

sharing has enhanced usability.

Reciprocal apps have further

enabled real-time data for travellers.

Laser technology to demarcate personal bike

lanes for greater safety: A recent rollout by

London’s Santander Cycles includes an

innovative upgrade, wherein each bike is

equipped with laser lights that project a bike

symbol on the road ahead of them. This

ensures greater safety for night riders as well

as pedestrians.

Station-less systems

linked to street

furniture for pick up

and drop off and

facilitated by

smartphones.

Improved distribution through geo-

fencing: By dividing the cycling

environment into virtual zones, users

can be rewarded when returning

bikes to areas that most need them.

GPS deters theft and improves

the likelihood of bike recovery.

Additional features such as

route mapping, speed tracking,

fingerprint identification, smart

locks, and light signals improve

user experience.


Innovation also provides a means with which to address the challenges of

theft and vandalism and to reduce redistribution costsBike Sharing Market: Key Challenges, Europe

Th

eft

an

d

va

nd

ali

sm

Third-generation systems introduced smartcards to access bicycles from their racks. Smartcards record user

identification information as well as bike usage (e.g., time, duration, location, kilometres). This improvement solved

previous issues of user anonymity and facilitated bicycle tracking, which reduced bicycle theft and vandalism.

Despite such innovations, theft and vandalism remain a concern. Within 2 years of operation, 7,800 bicycles

disappeared and another 11,600 were vandalized in Paris. It cost the programme €400 to replace the bicycles. While

existing technologies, such as GPS and RFID tracking developments, have greatly decreased bicycle theft, they also

increase implementation costs.

• Bicycles must be redistributed to key demand locations frequently after use. In some cities, bicycle traffic flows may

rebalance the system automatically by the end of the day. Others may require an investment in redistribution systems.

• To manage its 20,600 bicycles, Vélib’ uses 20 natural-gas-powered vehicles to transport bicycles from one station to

another. Some contracts may mandate that an empty station be restocked within a specified period, adding to cost

burdens. Redistribution forms one of the largest cost components for operators. On an average, it accounts for about

30% of the operational costs.

Bicycles must be redistributed to key demand locations frequently after use. In some cities, bicycle traffic flows may

rebalance the system automatically by the end of the day. Others may require an investment in redistribution

systems.

To manage its 20,600 bicycles, Vélib’ uses 20 natural-gas-powered vehicles to transport bicycles from one station to

another. Some contracts may mandate that an empty station be restocked within a specified period, adding to cost

burdens. Redistribution forms one of the largest cost components for operators. On an average, it accounts for about

30% of the operational costs.

Re

dis

trib

uti

on

co

sts


In 2015, over 440 cites across Europe had bike sharing programmes

accounting for 140,000 bikes and 12,000 stations; France is single largest

market, with close to 45,000 bikes spread across schemes in 38 citiesBike Sharing Market: Key Bike Sharing Countries, Europe, 2015

Austria

122 cities, 11,359 bikes, 1,296

stations

Sweden

5 cities, 2,120 bikes, 158 stations

The Czech Republic

1 city, 20 bikes, 6 stationsThe United Kingdom

14 cities, 14,225 bikes, 1,054 stations

Spain

62 cities, 23,217 bikes, 2,170 stations

Denmark


Poland


Slovakia

2 city, 50 bikes, 20 stations

Portugal

6 cities, 584 bikes, 64 stations

France

38 cities, 44878 bikes, stations 3455

N.EU 7 countries, 31 cities, 1,8021 bikes, 1,420 stations

S.EU 7 countries, 206 cities, 35,753 bikes, 3,598 stations

W.EU 8 countries, 151 cities, 69,398 bikes, 5,627 stations

E.EU 7 countries, 28 cities, 11,605 bikes, 859 stations The Netherlands


Croatia


Slovenia


Serbia


Hungary




Several city councils in Europe have awarded tenders for bicycle-sharing

system to be implemented in 2 years or are planning one which suggests

that the United Kingdom and Italy could grow most rapidly to 2018Bike Sharing Market: Fleet Size Forecast, Europe, 2015–2025

France: 1 new BSS

likely to launch by end-

2016, at Saint Denis

Spain: 2 new BSS likely

to launch by end-2016 at

Vilagarcía de Arousa and

Santiago de Querétaro

Germany: 7 additional

programmes likely to

launch by 2020

UK: 14 new BSS likely to

launch by 2018

Italy: At least 12 new

cities likely to have an

operational BSS by 2018



Many companies participating in the BSS value chain have multiple roles,

including in operations, management, and manufacturing

Bike Sharing Market: Examples of Key Value Chain Participants, Europe, 2015

While some operators

such as NextBike and

Smoove manufacture the

system software as well

as hardware for the

systems they or others

operate, companies such

as JCDecaux only operate

BSS for advertisement

rights and source their

equipment from Orbita and

Lapierre.

City Councils,

local transport

authorities

Bicycle

manufacturers

Bike sharing

operators

Sponsors,

advertisers Docks, charging

stations

System, software


Existing stakeholders are continuously innovating and upgrading their

technologies to maximize the value of their offeringsBike Sharing Market: Technology and Innovations, Europe, 2015–2025

Future Bikes

Future Payment Systems

Future Stations

Intelligent Transport Systems

• On-board computers

for booking, user

identification using mobile

phone code; information

on navigation; GPS;

on- board Wi-Fi systems.

• Pedal generator e-bikes.

• Smartphone applications

enabling better journey

planning by giving, by default,

alternative journey

options/plans including public

transport modes, other bike

sharing operators, and even

peer-to-peer bike sharing

availability.

• Software facilitating incentives

and rewards for parking in

high-demand locations or hilly

areas to address redistribution

problems.

• Mobile stations, enabling

relocation of stations based

on user demand in minimal

time. Using crowd sourcing

to pull network data,

enabling users to leave

bikes in geo-fenced

locations.

• Using energy from pedal-

generated bikes that users

dock in the stations, to

charge the station power

grid.

• Integration of ticketing

system to include wider

transport modalities such

as bus, train, and car

sharing.

• Payment through other

online purchase platforms

such as amazon.com.

Bicycle manufacturers

System providers

Bicycle charging

station

manufacturers


BICYCLE-SHARING SYSTEMS

ITALY SNAPSHOT

Italy has the highest penetration of bike sharing in Europe, with schemes

operating in 122 cities and fleet sizes of 15–100

• National funding: The Ministry of the Environment has allocated $39 million for sustainable mobility in 2015, recognising the bicycle as a sustainable means of transport.

• New tender: Issued by Trieste City Council for 92 bikes, including 9 pedelecs across 9 stations. BSS at Bari is suspended temporarily for a new contract. Planning is on-going for a city bike sharing scheme for Sorrento.

• e-Bikes: More than 40 bike sharing services have a mix of e-bikes and regular bikes. Italy’s largest e-bike fleet was launched in Milan with 1,000 bikes in 2015.

• Strong growth: 84 new schemes were added to the existing 38 in 2010

Key Metrics Measurement

Cycling modal share 4.7%

Number of key bike sharing operators 5

Cities with a bike sharing service in

operation122

Number of bikes 11,389

Number of docking stations 1,306

Key bike sharing cities Turin, Milan, Brescian

Bike Sharing Market: Per Cent Market Share of Key

Participants in Total Fleet, Italy, 2015

• Bike sharing in Italy is dominated by the advertisement-

based model covering more than 92% of the existing bike

sharing schemes.

• Bicincitta has partnered with Spanish transport company

CEMUSA to deliver bike sharing services in certain Italian

cities, while it operates its stand-alone programmes

in most cities.

Key Trends

Business Model

Bike Sharing Market: Key Metrics, Italy, 2015



The Italian bike sharing market is led by Bicincitta, with an almost 60%

share, followed by Clear Channel which holds ~32%


Bike Sharing Market: Key Market Participants, Italy, 2015

Key Metrics Bicincitta-ToBike Clear Channel-BikeMi

Organisation A subsidiary of Comunicare S.r.l. group Advertising company

Function Operator/system provider Operator/system/equipment

Bikes 6,810 3,620

Cities 98 2

Station 718 220

Key ProgrammesTOBike (Turin), Bicimia (Brescia)

GoodBike (Padua), SiracusaBikeMi (Milan), SmartBike (Verona)

Key Highlights

Italy’s second-largest city bike sharing service was

launched in the city of Turin in 2010 as part of the

city bike sharing scheme Bicincitta. Now, there are

1,200 bikes operated by TOBike in Turin across

210 stations.

In mid-2015, 1,000 e-bikes were added to the

BikeMi fleet in Milan. BikeMi is the first city BSS

to offer electric bikes as well as push bikes in

their ‘one station dual system’.


In Milan, Clear Channel’s strategy was to make traditional and e-bikes

available in the same station, as an integrated programmeBike Sharing Market: Bike Sharing Programme Overview, Milan, 2015

Scheme BikeMi was launched in 2008 in the city of Milan to enhance short trips

Operator Clear Channel Outdoor, a global street advertising company

Business Model

Based on advertisement model. Initial capital costs are public funded. Clear Channel offsets the operational

costs for service such as maintenance, bike repositioning, customer care, and service planning from advertising

revenue

Scale of Operations There are an estimated 3,370 bikes spread across 200 stations in Milan

Growth Strategy

2008: Launched with 1,300 bikes and 103 stations

2013: There 5.8 million bike withdrawals, registering a 33% growth from 2012

2014: Plans to upgrade system with a target to double the number of subscribers to reach 50,000 by the end of

2015 in 3 stages, including, in the ending of phase 2, introducing e-bikes and restructuring existing stations

2015: Introduction of 1,000 e-bikes plus 70 new stations to the existing fleet of 3,600 pedelecs and 206 stations

Pricing strategy• Pricing of e-bikes: $0.28 (for first 30 min) to $4.18 (for up to 2 hours)

• Pricing of traditional bikes: $0 (for first 30 min) to $1.67 (for up to 2 hours).

FundingThe initial capital costs for developing systems and infrastructure worth $5.6 million was incurred by the

Municipality of Milan


BikeMi is expected to touch 14.28 million bike rentals by 2025 with

government incentives and investment to promote cycling and technological

innovations driving sustainable future demand for bike sharing


Strong historical rental growth: Over 2 million bike rentals were recorded in 2014, which registers a CAGR of 28.1% since 2009.

Technology Innovation: eBikeMi is the first of its kind to introduce traditional and electric bikes in a single integrated system.

Future innovation: There are further plans to integrate public transport with biking by introducing a unique card for bike sharing and public transit, through the use of a universal reading system.

Investment: The government funded the eBikeMi scheme with $4.5 million in 2015; this involves a fleet expansion of the BikeMi scheme by introducing 1,000 new pedelecs.

Cycling incentive: Milan’s city council for mobility is hoping to introduce rewards for cycling to work, and support the incentive from part of the $39 million government fund for sustainable mobility solutions.


APPENDIX

Principal abbreviations

APAC Asia Pacific M&A Mergers and Acquisitions

BSS Bike Sharing Scheme MEA Middle East and Africa

CEE Central and Eastern Europe M Million

CSSD Central Sterile Supply Department MSW Municipal Solid Waste

CAGR Compound Average Growth Rate NA North America

C&D Construction and Demolition OE Original Equipment

EU European Union POE Power over Ethernet

GPS Global Positioning System RFID Radio Frequency Identification

GHG Green House Gas RUD Reusable Device

GDP Gross Domestic Product SUD Single Use Device

HVAC Heating, Ventilation, Air Conditioning K Thousand

IUSS Immediate Use Steam Sterilization UK United Kingdom

IAM Independent After Market US United States

IoT Internet Of Things WEEE Waste Electrical and Electronic Equipment

LED Light Emitting Diode

57

Frost & Sullivan

www.frost.comFor further details on Frost & Sullivan’s coverage and services, please contact Livio Vaninetti, Director of Frost & Sullivan Italy, [email protected]

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