uk sensor community mapping - Connect Innovate UK

UK SENSOR COMMUNITY MAPPING

Knowledge Transfer Network

CONTENTS

CONTENTS

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INTRODUCTION THE UK COMPETITIVENESS AGENDA THE PURPOSE AND SCOPE OF THIS REPORT THE INTENDED AUDIENCE THE SENSORS AND INSTRUMENTATION COMMUNITY METHODOLOGY PHASE 1: SELECTION OF THE KEY SECTOR PHASE 2: DATA CAPTURE PHASE 3 SYNTHESIS BIOSENSORS FOR THE LIFE SCIENCES SECTOR BASIC STATISTICS HOW IT FITS INTO UK ECONOMY COMPETITION ANALYSIS EXPECTATIONS/FUTURE GROWTH POTENTIAL ROLE FOR GOVERNMENT SWOT ANALYSIS SENSORS FOR THE DEFENCE AND SECURITY SECTOR BASIC STATISTICS HOW IT FITS INTO UK ECONOMY COMPETITION ANALYSIS EXPECTATIONS/FUTURE GROWTH POTENTIAL ROLE FOR GOVERNMENT SWOT ANALYSIS SENSORS FOR THE TRANSPORT (INCLUDING AUTOMOTIVE) SECTOR BASIC STATISTICS HOW IT FITS INTO UK ECONOMY COMPETITION ANALYSIS EXPECTATIONS/FUTURE GROWTH POTENTIAL ROLE FOR GOVERNMENT SWOT ANALYSIS SENSORS FOR THE AEROSPACE SECTOR BASIC STATISTICS HOW IT FITS INTO UK ECONOMY COMPETITION ANALYSIS EXPECTATIONS/FUTURE GROWTH POTENTIAL ROLE FOR GOVERNMENT SWOT ANALYSIS LIST OF ACRONYMS ANNEX 1: INPUTS TO THIS STUDY

4 4 6 6 7 10 10 10 10 13 14 17 21 25 28 29 31 32 38 41 43 50 51 53 54 64 67 69 70 78 81 82 88 92 94 99 100 104 109

Three key extracts from this report highlight the important message for the Sensors and Instrumentation community (closely allied to both the ICT and electronics communities and of course to many vertical sectors) that certain horizontal enabling sectors are identified, and that specific interventions need to be developed for each: Enabling sectors such as information and communication technology (ICT) and electronics potentially offer widespread gains as the technologies they generate often drive innovation and productivity across the whole economy, or provide the solutions for end users that differentiate them in the market... At the European and international level, horizontal and sector level interventions to address market failures and improve competitiveness, including both supply and demand side measures, are applied in varying degrees by different countries. It is clear that there is no single prescription, and there are many variants of targeted policies. They include policies to: foster clusters, support innovation activity, build links between education providers and industry to strengthen market signals on industry skill demand, attract foreign direct investment, and ensure access to finance. Inevitably there is a high degree of variance, however, in their use and impact... It is clear, however, that there are circumstances where particular barriers are felt more acutely by individual sectors, for example: information failures increasing the risk premium attached to investment in capital intensive sectors such as aerospace, defence and life-sciences, due to long product development; market failures affecting the provision of highly selective skills sets, such as high-end IT and electronics specialists; and government uncertainty, for example over the long-term regulatory framework which can discourage or defer investment decisions such as in civil nuclear and offshore wind. Given all this, the UK government has several horizontal and vertical interventions underway. One important horizontal intervention is the Technology Strategy Board’s Enabling Technologies Strategy [2], which targets the advantages and opportunities to be won through national support in “the design and integration of technologies to develop sensor systems with intelligence and optimised control”. This focus on sensor systems rather than just components is important, as the commercial added-value, the opportunity to build the underpinning skills and knowledge base, and the opportunity to impact the Technology Strategy Board’s priority themes, are all much higher 1. Industrial strategy: UK sector analysis (2012) BIS. 2. Enabling Technologies Strategy 2012-2015, TSB.

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if the UK is strong at the Systems level, rather than at just the level of isolated sensors. This is illustrated in Figure 1, which shows the many technical elements of a generic sensor system for an arbitrary application, designed to assess just one measurand. Vertical sectors • Advanced manufacturing (aerospace, automotive, life sciences) • Knowledge-intensive traded services (information economy, professional and business services, Higher and Further Education) Horizontal enabling sectors • Energy • Construction

APPLICATION VISUALISATION & PRESENTATION ANALYSIS & POST-PROCESSING DATA REPOSITORY

INFORMATION

The UK government has a clear mission to support industry in both technology-led innovation, and in addressing new opportunities from existing capability. This strategy is led by the Department of Business, Innovation and Skills (BIS), which published in 2012 the Industrial Strategy: UK Sector Analysis [1] to inform the selection of key vertical industrial sectors to be addressed as priorities (such as Aerospace, Automotive and Life Sciences)

INTRODUCTION

COMMUNICATIONS & NETWORKING (1,2...n) TRANSDUCTANCE & PRE-PROCESSING (1,2...n) SENSOR ELEMENT 1

SENSOR ELEMENT 2

DATA

THE UK COMPETITIVENESS AGENDA


POWER SUPPLY & MANAGEMENT

4

... SENSOR ELEMENTn

MEASURAND

Figure 1. Schematic of the elements of a generic sensor system

There is however a clear need for evidence to support the development of specific strategies for other horizontal “enabling” sectors, both to inform interventions and to enable the evaluation of success. The approach recommended in the BIS report (Ref 1) is pertinent: Where sectors are less affected by market failures, government will continue to set the business environment through horizontal policies; in sectors where market failures are more prevalent, and barriers to growth are high, the Government will act to address specific issues, or establish a long-term partnership with the sector to support its development.

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THE PURPOSE AND SCOPE OF THIS REPORT THE INTENDED AUDIENCE

With this backdrop, this work seeks to extend the work of BIS and give an evidenced and detailed input on the capabilities of the UK Sensors and Instrumentation commercial sector and its important subsectors, both in terms of its internal structure, place in the UK economy and factors available to promote growth. Preliminary suggestions will be made of interventions that might be suitable for each sector.

•

Policy makers at BIS, UKTI and local agencies seeking to promote UK innovation, business and sustainable employment via regulation, R&D support or other interventions

•

Research support agencies

•

Businesses seeking guidance regarding investment opportunities.

ORGANIC CHEMISTRY BIOTECHNOLOGY, PHARMACEUTICALS CIVIL ENGINEERING MEDICAL TECHNOLOGY, BIOLOGICAL ANALYSIS CONSUMER GOODS MEASUREMENT, CONTROL BASIC MATERIALS, CHEMISTRY, METALLURGY CHEMICAL ENGINEERING, MACROMOLECULAR, POLYMERS HANDLING, MACHINE TOOLS FOOD, ENVIRONMENTAL TECHNOLOGY THERMAL PROCESSES, APPARATUS, MECHANICAL ENGINES, TRANSPORT SPECIALIST MACHINES COMMUNICATIONS INFORMATION TECHNOLOGY SURFACE, MICRO-STRUCTURAL, NANO TECHNOLOGY ELECTRONICS OPTICS

INTRODUCTION

THE SENSORS AND INSTRUMENTATION COMMUNITY

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The UK Sensors and Instrumentation community is highly capable, impacting many vertical sectors but building on often core research, technical and manufacturing capability (Figure 3). However it has been identified through extensive analysis, including for example the consultation for the possible “Sensor Systems Technology Innovation Centre” [3] that: Integration and demonstration gaps exist and are blocking the value chain through academia, SMEs, systems integrators and instrumentation companies to end-users. The UK has significant presence at each stage of the value chain but has not been able to overcome the skills shortages and risk aversion that is preventing the component and sub-system level technology becoming sensor system solutions. A different analysis by BIS, reported in its Industrial Strategy: UK Sector Analysis (Ref 1, page 21), shows that the UK has a Revealed Technology advantage in “Measurement, Control”, which will certainly include Sensors and Sensor Systems (Fig 2). It is certainly relevant that the same analysis reveals a UK weakness in three technology sectors that contribute to Measurement and Control, namely Nanotechnology, Electronics, and Optics. Finally, the actual composition of the UK’s commercial Sensors and Instrumentation community has been analysed by the ESP Community of the Knowledge Transfer Network [4] and this shows a wide variation in strength and coverage of the supply chain according to the end-user applications. More evidence has been captured through past and ongoing ESP activities (detailed in Annexe 1), which give detailed insight of, for example, vertical sectors like Forensics, and horizontal sectors like Energy Harvesting and the Internet of Things.

-0.8 -0.6 -0.4 -0.2 0.0

0.2

0.4

0.6

0.8 1.0

Figure 2. UK Revealed Technology Advantage in certain sectors, taken from Ref 1

3. Interim Report on Sensor Systems Technology & Innovation Centre : Making a Case (2011), ESP KTN https://connect.innovateuk.org/documents/2864009/3709071/Interim+Report+on+Sensor+Systems+Technology+%26+Innovatio n+Centre.pdf/bc02987a-153f-47ec-ac5a-07c1878ef444 4. Cohort study of the Commercial Sensors and Instrumentation community of the UK, to be published. ESP KTN


£6 BILLION IN EXPORTS

CAL 6%

RE TA

6%

IL

5%

SO FT

8% 5%

2%

2%

SION

7%

£14 BILLION

%

3%

2%

UFACTURING 12% & MAN

UC

R TU

% E5

PR IAL 6% STR U S E IND NC

& NE

K TWOR

PP EA

IE O M PA N

TU

R N OVE

R

£161,000 MEDIUM TURNOVER

PER EMPLOYEE

D N 2

PATENTS FOR

DEFENCE & SECURITY

AND LIFE

SCIENCE

RGY ENE

ENVIRO NMEN

SSES OCE

IS PUBL HED IN S T P EN

R ST RA NF

I

LIA

&

1 in 3

SENSOR S Y TO ST E

% BU IL D IN G

6% 8%

A VE 7

5%

9%

UTO MO TI

7%

IC

E AT

12%

&

S 10 YEARS OU RE I L EV R

PA T

& DEFENCE 7%

7%

SME’s S

TO ADDED NOMY O C E UK

PACE AEROS

2%

SME’s

S

12%

CHEM I

N3 TIO

IT INFRAS TRUC T

PHARMA /

AGRICULTURE 1%

I NE V CHI MA

URE 2% RES EAR CH LAB OR AT OR IES &

G

7%

8% CE ARE SPA

RTATION 3%

2% ICA UN TA DA MM E/ CO LE AR W TE

TE ST IN

C DI ME

HC ALT /HE L A

PO TRANS 1% & E-O

THE SENSORS AND INSTRUMENTATION COMMUNITY

S M

8

T 9%

CON SUM ER

PR O DU CT S&

HO M

S 8%

Figure 3. Technology sector of the 874 sensor companies in the 2013 ESP cohort study (Ref. 4)

87%

INCREASE

IN NUMBER

OF PATENTS

IN LAST

10 YEARS

£120bn UNDERPINNING

MARKET

73,000 JOBS IN THE COMMUNITY

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METHODOLOGY


For this study the ESP Community followed the methodology proposed by the Department for Business, Innovation and Skills (BIS). Using the BIS approach as a model, this study is designed in the following way:

PHASE 1: SELECTION OF THE KEY SECTOR

1. ESP Community dialogue with key stakeholders, and selection of those 4 Sensors and Instrumentation sectors that seem to have the greatest presence or potential benefit to the UK in response to current drivers.

PHASE 2: DATA CAPTURE

2. For the shortlist of 4 sectors, we collated the data available for each sector in turn, trying to access data that has been requested by BIS [5].

PHASE 3 SYNTHESIS

3. SWOT analysis for each sector. Analysis of similarities and differences between the sectors, looking for clusters or possible synergies. Suggestions of possible vertical or horizontal interventions for each sector. Conclusions and recommendations.The ESP Community has taken inputs from the Sensors and Instrumentation Leadership Council (SILC) and has concluded that the vertical sectors that should be selected for deeper analysis are:

PHASE 1: SELECTION OF THE KEY SECTORS PHASE 2: DATA CAPTURE FOR EACH SECTOR

• • • •

Life Sciences (specifically Biosensing for Medical, Healthcare, Industrial and Pharma), Transport (including Automotive), Defence & security and Aerospace

In this section, we provide some detailed analysis of each of the six short-listed sectors. Where no reliable information is yet available or available in the public domain, we report N/A.

5. Sector competitiveness analysis template, supplied by BIS (2013)

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BIOSENSORS FOR THE LIFE SCIENCES SECTOR

13


$2.7

BILLION ESTIMATED TURNOVER

18,000 16,600 EMPLOYED IN PATENTS BIOSENSORS COMMUNITY

IN LAST 10 YEARS

14




15

BASIC STATISTICS

The total employment in the sector is thus about 18,000.

This sector is emergent, with the largest driver being the healthcare and pharmaceutical communities, but there is significant academic and industrial engagement in the UK. There is a detailed summary by BIS on the 2010 position of the whole UK bioscience and health sector [6]. BIS address the “Life Sciences” community as a whole via a specific strategy[7].

Trade One simple estimate of the turnover is to assume each employee contributes £150k p.a., which leads to an estimate of £2.7bn, which is a reasonable 5% of the total £50bn annual turnover in 2011 for the UK Life Sciences sector reported in Ref 7.

In summary, in 2010 the medical technology and diagnostics, medical biotechnology and industrial biotechnology landscape in the UK contains just over 4,000 companies, with a combined turnover of £19bn, employing 93,500 people across the UK (Ref 7). This of course covers many subsectors: the biosensing sub-sector is analysed in more detail in two ESP publications: one for UK academic groups [8], the other for UK commercial groups [9].

Innovation • Dedicated academic groups and spin outs: The ESP Biosensing and Biosensors academic directory (2012) (Ref 8) lists about 66 R&D groups, which have generated at least ten spin-out sensors businesses (Affinity Sensors Ltd., Rebha Ltd., Cambridge Sensors Ltd., Smart Holograms, Paramarta, Lab901, Blackford Analysis, Eco Diagnostics, Biosense Technology, Ag Plus. The academic groups (as of 2011) are listed in Annex 2.

We define a biosensing system as a compact analytical device incorporating a biological or biologically derived sensing element (the bio receptor) either integrated within or intimately associated with a physicochemical transducer. Biosensing is defined as the specific application of a biosensor or any other sensor to monitor living systems sensors. Typical bio receptors are enzymes, microorganisms, antibodies, tissue, organelles and chemoreceptors. Typical transducer types are amperometric, potentiometric, semiconductors, thermometric, photometric and piezoelectric. These organisms can be anything from individual cells or enzymes in an R&D laboratory, through to animals in a farm environment. The key issue is that the sensors are designed to measure parameters characteristic of life. Transparency Market Research declared a 2011 global market for biosensors of $9.9bn [10]. Employment The academic employment estimate of 1,600 Full Time Equivalents (FTE) can be derived using a simple methodology [11]. In comparison, an estimate derived from the 2008 Research Assessment Exercise (RAE) for the “Biological Sciences” sector [12] suggests a lower bound of 400. Commercial employment is about 17,000 [13]. 6. Strength and Opportunity: The landscape of the medical technology, medical biotechnology and industrial biotechnology sectors in the UK (2010) BIS. 7. Strategy for UK Life Sciences (2011) BIS 8. Guide to UK Academic Research Activity in Biosensors and Biosensing - Issue 2 (2011) ESP KTN. 9. Guide to UK Companies involved in Biosensors and Biosensing - Issue 3 (2013), ESP KTN 10. http://medicalcaremarketnews.files.wordpress.com/2013/06/biosensors-market-global-industry-analysis-sizeshare-growth-trends-and-forecast-2012-2018.pdf 11. Ref 8 lists 66 universities with relevant research groups. From inspection these seem to be typically comprised of 10 staff researchers and 5 postdoctoral researchers, with maybe 5 Ph.D students, so we assume that the total employed research base is 1,320. There will of course be associated support staff (technicians etc.) so we add on 20 % to account for these, giving a total estimate of 1,600. 12. Research Assessment Exercise 2008: RAE2008 subject overview reports (2009). 14 Biological Sciences http://www.rae.ac.uk/pubs/2009/ov/ suggests that for every active researcher, there are 3 employed Research Assistants or Research Associates. The ESP Guide (Ref 8) names about 100 senior researchers involved with Biosensing, so this would imply about 300 R.A. and R.Ass. roles, giving a total of about 400 academic employees in the UK. This estimate is likely to be very low as there are many researchers not named in the ESP Guide. 13.. This is done on the basis of the company sizes reported in Ref 4: here the actual sizes of the companies are estimated to be mid range, with the exception of the 250 + group which is estimated to be of mean size 500 - it is likely that this is an over-estimate. However, comparison with the numbers reported in the UK Life-Sciences Strategy Document (Ref 8) suggests that the subsector associated with Biosensors and Biosensing comprise a reasonable 10 % of the total employees, that would be about 17,000, “Pharmaceuticals, medical biotechnology and medical technology sectors together comprise around 4,500 firms, employing 165,000 staff, with an R&D spend of nearly £ 5 bn and an annual turnover of over £ 50 bn.”

•

Company R&D: The ESP Commercial Guide (Ref. 9) shows that over the years 2011-2013, the number of companies involved in the various phases of the biosensors ecosystem in the UK has increased from 86 to 148, and a large fraction of these (16 %) are of age less than 5 years. Many of the companies, are explicitly involved in R&D, suggesting a highly innovative community.

•

Patenting results: A quantitative analysis of innovation in the biosensors community can be inferred through the IPO patent landscape analysis of sensor systems [14]. Total global patents for the sensors in life science sector are shown in Figure 4 and indicate that the UK is 4th in the World behind the USA, Japan and Germany. Figure 5 Is a representation of the patent landscape map for UK applicants, it shows reasonably poor coverage of the innovation landscape by UK companies – perhaps demonstrating that the sector is not engaged enough in non-medical applications.

Other France

23%

UK 52%

4% 4%

Germany Japan

7% 9%

USA

Figure 4. Biosensors UK Innovation - publication country coverage 14. A Patent Landscape Analysis of Sensor Systems, Intellectual Property Office, To Be Published (2014)

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number of important multinationals in pharmaceuticals and healthcare have adopted the UK as a R&D base, this may be in part due to the established regulatory perspective of the UK, which when compared to other countries is optimistically cautious: not too swift to act but open minded enough not to stifle free thinking and innovation [15].

HOW IT FITS INTO UK ECONOMY Metrics as % of UK Table 1. Metrics as % of UK economy for the biosensors market

Figure 5. Biosensors UK innovation landscape

EMPLOYMENT

18,000 in 29.78 million employees [16] in the UK represent 0.05 %

TRADE

Estimated $ 2.7 billion turnover in $2.445 trillion GDP (2011) [17] is 0.1

INNOVATION

16,600 patents in 540,000 UK applications from 2003 to 2013 is 3 % [18]

16 1718

Current position and recent trends The biosensing sector undertakes development of materials and sensors, their application to living systems for a variety of reasons (dominantly medical devices and healthcare, but also industrial processing, pharmaceutical discovery, environmental control etc.), associated research and development at all stages of the supply chain, and service provision. With reference to Figure 10, the UK community provides companies largely at the service; materials and components end of the supply chain and less at the system-manufacturing end. This may reflect the tendency for companies to be acquired by (normally) overseas system groups. The patent landscape provides a collaboration map, which shows very good cross-links between UK companies and research bases in life sciences suggesting that the UK biosensors sector is a well-linked collaborative network – the report however does highlight that, Six of the top 10 UK inventors are employed by non-UK companies, suggesting a potential ‘brain drain’ of specialist UK inventors working in the life sciences sector away from the UK, which could indicate that whilst the community has a good collaborative atmosphere, enough is not being done to ensure UK companies are reaping the benefits of this open community. The community is highly academically and commercially active, with several acquisitions of early-stage companies by larger groups in the past 2 years. It seems likely that this dynamic activity will continue. A

15. Private communication from univerCELLmarket (2013) 16. Statistical Bulletin: Labour Market Statistics, September 2013. 17. UK GDP: Google source http://www.google.com/search?q=uk+GDP&ie=UTF-8&sa=Search&channel=fe&client=b rowser-ubuntu&hl=en 18. Taken from the WIPO, sum of patent applications between 2003 and 2011 (2012 and 2013 were assumed to be the same as 2011)

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Location / clustering There are several strong clusters as shown in Figure 6, especially associated with university centres such as Exeter, Cardiff, Bristol, Reading, Oxford, London, Southampton, Cambridge, Cranfield, Manchester, Durham, Newcastle and Belfast. Weaker clusters are associated with Sheffield, Nottingham, Leicester, Glasgow, Dundee and Edinburgh. These clusters arise from both the need to access skills and facilities. However one important constraint is related to reliable transport of fragile and “shelf-life-limited” biological material from manufacturer to user. This can impose a need to be within range of an airport.

Inverness Aberdeen

It is notable that this clustering is very similar to that of the medical biotechnology companies reported Ref 6, bar the Glasgow/ Edinburgh region, but not very similar to that of the industrial biotechnology companies reported in Ref 6 (see Figure 7 (a) and Figure 7 (b)).

Dundee

For the international companies here in the UK, there are advantages the UK is very strong at providing collaborative initiatives which foster driving innovation. Some examples of this include Stevenage Biocatalyst which looks to put big pharma and start ups in the biomedicine space together, the new Cambridge Biomedical Campus – which again will put some big named companies into close proximity with clinicians and patients – which is ultimately aimed at speeding the process of development of new medical products.

Falkirk Glasgow

Motherwell

Newcastle Durham Teeside

Belfast

SPILLOVER

Leeds Doncaster Manchester Stockport Sheffield Liverpool Nottingham Peterborough Leicester Cambridge Hereford Newport Cardiff

Hemel Hempsted Stevenage London Bristol Oxford Guildford

Taunton Exeter

Portsmouth

Redhill Tonbridge Brighton

It is very clear that the majority of UK companies focus on the Healthcare and Medical markets (comprising Diagnostics, Pharmaceuticals, Immunological and Medical Devices). This has generated a large capability in small, low-power and rugged sensors for long-term use, and in “one-shot” disposable sensors with associated readout instrumentation. These capabilities are highly synergistic with other markets, and have led the existing companies to declare interests in other markets such as Environmental Monitoring, Industrial Processing, Security and Defence, and Veterinary. The range of markets of interest reported to the ESP Community in 2013 is shown in Figure 8 [4]. It is significant that of these, some are closely related to TSB Priority themes in the recent Delivery Plan [19] as follows: l    Veterinary – under the Agri-Food theme (animal-welfare and feed -usage efficiency) l    Industrial Processing – under the Energy theme (conservation through use of low intensity bioprocess) and Resource Efficiency (though bioprocess for life-cycle management of critical materials)

Bournemouth

Figure 6. Location of headquarters of commercial biosensing companies, 2013 19. Delivery Plan Financial Year 2013 – 14, Technology Strategy Board (2012)

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COMPETITION ANALYSIS DESCRIPTION OF MARKET PLAYERS/MARKET SHARE Internationally, the biosensor market is dominated by medical and healthcare sectors, comprising most of its estimated $9bn value in 2011. The main players are international giants such as Roche Diagnostics, Abbott Diagnostics, Bayer Diagnostics, Abbott Point Of Care Inc., Agamatrix Inc., Hoffmann-La Roche, Lifesensors Inc., M-Biotech, Medtronic Diabetes, and Siemens Healthcare which between than account for more than 60% of global sales [20]. These companies have grown by company acquisition or licencing of technology, which is largely generated by SMEs. The remaining sectors include food toxicity, environmental, industrial, agriculture and others. Frost and Sullivan published [21] the breakdown below in 2010 (The Medical and Healthcare sectors are labelled as Home Diagnostics and Point of Care).

Aberdeen

Biotechnology

39

Diagnostics

Edinburgh Glasgow

Forensics

57 3

Security / Defence

24

Pharmaceutical Newcastle Teeside

26

Veterinary

13

Immunological

12

Environmental monitoring Leeds Manchester

18

Industrial

26

Medical Devices

Brough Doncaster

74

Research Process industries

Lincoln

52 7

Other (specified in text)

Derby Leicester

Figure 8. Target markets for UK companies involved in biosensors and biosensing Coventry

Northampton

Cambridge

Hereford Cheltenham Newport Bristol Slough Cardiff Taunton MEDICAL BIOTECHNOLOGY 2010 INDUSTRIAL BIOTECHNOLOGY LOCATIONS IN THE UK 2010

Stevenage London

Guildford Andover Portsmouth Bournemouth

Colchester

Crawley

Canterbury

The UK players of any size include the Axis-Shield and other activities of Alere plc. with a turnover of $2.8bn, which is, however, a US-headquartered company. Activities typically include supply of instrumentation and services, with the business model being to make most revenue and profit from supply of one-use consumables.

Brighton

Plymouth

Figure 7. (a) Medical biotechnology and (b) Industrial biotechnology locations in the UK (both from 2010)

20. Transparency Market Research (2011) http://medicalcaremarketnews.files.wordpress.com/2013/06/biosensorsmarket-global-industry-analysis-size-share-growth-trends-and-forecast-2012-2018.pdf 21. http://www.sensorsmag.com/specialty-markets/medical/strong-growth-predicted-biosensors-market-7640

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TOTAL BIOSENSORS MARKET: PERCENT REVENUES (WORLD) 2009 Point of Care 7%

Home Diagnostics

12% 3% 48%

11%

Research Laboratories Biodefence


23

Patent share information from Ref. 14 indicates that the top applicants in the life sciences sector are Genentech (USA), University of California (USA), Hoffmann-La-Roche (Switzerland), Bayer Healthcare (USA) and US Dept. of Health and Human Services (USA). Big UK players are GE Healthcare UK, Cambridge Enterprises, Medical Research Council, Isis Innovations and Imperial Innovations. Ref 6 summarises of the 2010 position of the whole UK biotechnology sector but does not separate out the players active in biosensors or biosensing. Figure 10 (a) (from Ref 9) shows that of the 157 UK biosensor or biosensing companies, of which the vast majority are microbusinesses or SMEs, over 58% are active at R&D, material or service supply, rather than at component manufacture or system integration.

Environmental 19%

Process Industries

19%

26% 32% 11%

45%

13%

TOTAL BIOSENSORS MARKET: PERCENT REVENUES (WORLD) 2016

Point of Care 7% 14%

Home Diagnostics Research Laboratories

3% 45% 11%

25%

29%

Large > 250

Services

Medium 51 - 250

Instrumentation

Small 11- 50

Sub-systems

Micro < 10

Sensors

Biodefence

Figure 10. (a) Size of the companies in the biosensors market and (b) The main activities of the UK biosensors companies

Environmental

Ranking by key metrics against rest of the world or main competitor countries

Process Industries 20%

Figure 9. World biosensor technology breakdown by sector in 2009 and 2016 (adapted from Ref. 21)

The UK biosensors community seems to be much more active in generating businesses than the main competitor territories (EU, USA, Asia). The evidence for this comes from the international Biotechbase website, where if the number of companies involved in three relevant technology sectors are analysed [4] (molecular diagnostics, biochips, in-vitro diagnostics), the following pattern emerges:

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Table 2. Proportion of biosensor companies in the parent sector

NUMBER OF BIOSENSOR COMPANIES

NUMBER OF COMPANIES IN THE SECTORS

PROPORTION OF BIOSENSOR COMPANIES

ALL TERRITORIES

633

7950

8%

UK

157

625

25%

USA

476

7325

6%


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EXPECTATIONS/FUTURE GROWTH POTENTIAL (SHORT, MEDIUM AND LONG TERM) DRIVERS WITHIN THE SECTOR The main drivers within the sector are shown in Figure 9, which shows the market for biosensors in 2009 and expected market in 2016: • • •

This indicates that the UK is possibly four times more likely to have a biosensors-related business than any other territory. The table below compares the size of the biosensor market to that of other key countries in that sector: size of the market, number of patent applications in the sector and number of patents normalised to the regional workforce. Figures for Table 3 are compiled from Refs. 10 and 14.

•

Table 3. Turnover and patent fraction of UK biosensor companies and key competitor companies

•

Healthcare and Medicine: increasing lifetimes with increasing ailments, increasing affluence and expectation of well-being are expected over all timescales. Industrial sector: energy costs and resource efficiency are issues that will extend to the long-term Environmental sector: legislation and public opinion and global climate change are medium and long-term drivers. Security: one-off events and global conflict can initiate both shortterm needs e.g. for anthrax detectors) and longer-term policy changes.

WITHIN LINKED SECTORS The main drivers in linked sectors include:

• • •

Technology advances, especially low-power electronics and Energy Harvesting Increasing usage of mobile devices Increasing connectivity of sensor devices to the internet Development of digital economy models that allow extracting commercial value out of distributed sensor data.

2011 MARKET ($ BILLION)

PATENTS

PATENTS PER WORKING POPULATION

ALL TERRITORIES

9.9

331,053

0.0110 %

Over all biosensor sectors, Frost & Sullivan predict CAGR 11% over 2012-2018, with the bulk in Medicines and Healthcare, Figure 9.

UK

£ 2.7 billion

16,600

0.0556 %

BARRIERS TO ENTRY AND EXIT

GERMANY

N/A

23,200

0.0580 %

• •

USA

N/A

175,500

0.1228 % •

Internationally, key drivers are based around healthcare and reimbursement systems. In the US, the insurance companies have a great deal of power when it comes to product reimbursement whereas in the UK it is down to NICE and their recommendations. An example of Government driven innovation is in Japan, where the Japanese Government has decided to push regenerative medicine hard and have a significant number of regenerative medical clinical trails launching into 2014. To deal with this, the Japanese Government has created a new healthcare insurance model for those in the clinical trails – because this landscape is an unknown commodity.

• •

The long and expensive development phase demanded by highly regulated markets for medical devices [22]. The access channels to end-users, especially via the clinicians of the NHS, or to the general public. These have been extensively discussed, for example, in an ESP Community report [23]. Investment costs in highly bio-chemically secure R&D and manufacturing facilities. The high value allocated to public IP in this sector, which makes investment dependent on secure access to IP, which can be difficult in a rapidly growing sector. The challenges of securing access to IP and facilities to allow integration and demonstration of several biosensor system elements, especially those related to sample capture and pre-processing. This has been analysed in depth in an ESP Community report [24].

22. http://www.emergogroup.com/files/2012-medical-device-industry-survey.pdf 23. Taking Medical Sensing Technologies to Market – July 2010 from https://connect.innovateuk.org/web/sensorsand-instrumentation/esp-ktn-guides-reports 24. Sampling Challenges for Medical Point of Care Diagnostics (2012), ESP Community. https://connect.innovateuk. org/web/sensors-and-instrumentation/esp-ktn-guides-reports

26


BARRIERS TO BUILDING CAPABILITY The Sensor Systems TIC consultation process exhibited a repeated call for a facility to support low-volume pilot production on manufacturingscale equipment for biosensors, especially those using microfluidic platforms. Without such a capability, with a capacity to demonstrate both pilot-scale manufacture, and a route to full-scale manufacture, many biosensor innovations are left as piece-parts on the shelf. One major target would be to integrate and demonstrate the sampling technologies that are needed to capture, pre-process and deliver a sample of a biological material to a sensor: consultation done by the ESP Community (Ref 25) strongly indicates that this step is the major barrier to demonstration of existing biosensor technologies, and success in this would unlock rapid progress in commercialisation of many technologies developed by UK academics and businesses. One other barrier common to all life science industries is the inherent unreliability of processes dependant on living organisms. The impact of “manufacturing batch crashes” has been especially high for SMEs, which do not have the skills or resources to perform a full design and manufacturing process analysis (such as those in the Six-Sigma toolset developed by GE Inc. which include Failure Mode and Effects Analysis (FMEA) etc.). This challenge has been mitigated in sectors such as aerospace, automotive, photonics and electronics by the training of staff in analysis processes, and the creation of community technology roadmaps, standards, and support facilities to steer and inform manufacturing disciplines - but it seems to be far from a standard approach in the life sciences. Some relevant consultation has been published by the TSB [25], uncovering a demand for such capabilities from the biopharmaceutical sector: Analytical tools to ensure the quality and safety of products are vital for the biopharmaceutical sector where the purity and structural integrity of samples must be constantly checked at each stage of the process. More effective analytics would enable products to reach the market quickly, at a lower cost and with reduced waste and be more akin to a Quality by Design approach. To create more effective analytics we need to identify the complex biopharmaceutical products and processes requiring innovative analytics. Predictive models need to be created building on process data, and a range of cost effective analytical tools developed. Critical gaps in our current capabilities include low cost and rapidly accessible sensors, immunoassays and biomarkers to support more biopharmaceutical manufacture. Medical regulation in the UK can be seen as a stifling factor for innovation. An example of regulation success in the UK, however, is Intercytex; a company based in Manchester. Intercytex have one key product, VAVELTA, which is a suspension of human dermal fibroblasts used to aid scar contracture and of particular use for Epidermolysis Bullosa a rare genetic condition where collagen type 7 is absent. This is key as it allowed the product to be classed as “an orphan drug” 25. The Future UK Life Sciences Manufacturing Landscape: Opportunities and Challenges for High Value Manufacturing in the Pharmaceutical and Biopharmaceutical Sectors. A Consultation for the Technology Strategy Board (November 2012) https://www.innovateuk.org/c/document_library/get_file?groupId=3107972&folderId=3845293&title= HVM_Life+Sciences_Lo+FINAL+221112.pdf.pdf


27

for treating a disease where the cohort of affected individuals is fairly small and this impacted on what they needed to do in phase 3 – it was certainly reduced. They also had a success in September when the MHRA issued a special license for VAVELTA to allow it’s release for intended and specific patients [16].

OPPORTUNITIES IN THE UK One important differentiator and driver for the UK may be the expected early roll-out of Smart Meters, and the high availability of high-bandwidth communications (cable, telephone, 4G) which could allow an earlier deployment of biosensor self-monitoring systems.

OPPORTUNITIES IN THE UK AND OVERSEAS The main target for the medicine and healthcare market is that associated with point of care (POC) diabetes diagnosis and monitoring, however these are similar if smaller opportunities associated with cholesterol testing, infectious diseases and pregnancy testing. These are increasingly important in recently industrialised economies. In the EU especially, there is an increasing appetite for food toxicity, quality and provenance detection as a result of recurrent food-scares. Rapid industrialisation, high levels of automotive use, and legacy facilities provide opportunities for environmental sensors.

LIMITING FACTORS AROUND AVAILABLE OPPORTUNITIES The extended and complex process for qualification and licencing largely limits medicines and healthcare opportunities. For some markets (especially the USA), the provision of Health Insurance cover to fund a sensor-based intervention can be an issue. Other markets are largely limited by simple cost of development, demonstration and manufacture to the appropriate price point.

CAPACITY TO RESPOND TO OPPORTUNITIES The UK has a strong commercial biosensors community- however it is highly focused in medicine and healthcare markets, and so it’s limited in its responsiveness to other opportunities like security or industrial processes. Existing institutions, for example the CPI / Medtech Community / Biosensors Community and existing industry/academic collaborations such as the Cambridge IKC etc. can facilitate the pull-through. Nationally funded programmes by groups like the Environmental Agency (EA), NERC and MOD also provide some pull-though into demonstration for specific technologies in niche applications. Both the MOD (via the Centre for Defence Enterprise) and NERC are active in seeking to build commercial impact from this research.


Table 4. SWOT analysis for the UK biosensor market

HELPFUL

HARMFUL

TO ACHIEVING THE OBJECTIVE


NG RE

o

Highly regulated development and licensing phase constrains sector growth.A

o

How to classify new technologies as drug or technology limits growth.

o

The access channels to end-users, especially via the clinicians of the NHS, or to the general public.

o

The challenges of securing access to IP and facilities to allow integration and demonstration of several biosensor system elements.

ST The UK has a strong commercial biosensors community given the proportion of biosensor companies.

o

BIS revealed technology advantage in organic chemistry, biotechnology, medical technology and biological analysis.

o

Mainly in the healthcare market associated with POC diagnosis and monitoring.

o

Increasing opportunities for food toxicity quality and provenance detection.

o

EU directives dictating faster, cheaper, smaller sensing platforms for environmental monitoring.

o

S

Difficulty in setting up comprehensive sensor network field trials.

ES

TI

RE

I UN RT

PO

AT S

OP TH

INTERNAL ORIGIN

The UK is highly focused in medicines and healthcare markets – leaving gaps in the innovation landscape. It has become limited in its responsiveness to other opportunities like security.

SE

(ATTRIBUTES OF THE ORGANISATION)

o

ES

o

KN

EA

TH

S

W

Suggestions include: 1. Creation of a capability for application-specific demonstration at TRL 6-7 of microfluidic “sampling” technologies to suit a range of existing bio-sensors. 2. Launch of an initiative to train bio-sensing companies in Quality by Design/ Design for Manufacturing and manufacturing and processes. 3. Launch of an initiative to provide a route for SMEs to access biosensing consultancy from centres with bioprocess failureanalysis capability. 4. The existing AMSCI scheme might be a suitable platform for such initiatives.

29

SWOT ANALYSIS FOR THE BIOSCIENCES MARKET

EXTERNAL ORIGIN

ROLE FOR GOVERNMENT: SUGGESTED LEVERS TO ADDRESS CONSTRAINTS AND INSIGHTS SECTIONS ABOVE.



28

30


SENSORS FOR THE DEFENCE AND SECURITY SECTOR

31


£7.6


47,200 58,800 EMPLOYED IN PATENTS DEFENCE S&I COMMUNITY

IN LAST 10 YEARS

32



BASIC STATISTICS The defence and security sensor market covers systems directly related to the detection of threats. Due to its nature, the defence and security market is utterly reliant on sensing technology. The market is driven largely by Government policy and major World events such as international conflict and despite its large size, it is not immune to events such as global recession. It does however have the advantage of being a very well established and integrated industry that enjoys very good collaboration across universities, private sector and Government institutions via various Government led initiatives. There are detailed analyses of the UK Defence and Security landscapes by the trade association ADS in Refs [26,27].


technologies and proposed technologies are shown below and have been compiled using various references [33, 34, 35]:

The global CBRN defence market is estimated to value $9bn in 2013 [28] The UK Defence Industry is a leading high technology manufacturing and service provider for the UK, generating £22.1bn per year to the UK economy – with £9.5bn in exports. [27] The figures specific to the defence and security sector clearly reflect a huge number of subsectors, and there is also a large crossover between the linked sectors covered in this chapter and other sectors such as transport and aerospace. Both indirectly and directly, employment figures associated with defence spending and defence exports are around 300,000 in the UK [29]. In the security industry, approximately 50,828 are employed (from Ref 4). The sum of these figures results in a UK defence and security employment figure of 350,828. The UK continues to capture 20 % of the global defence export market. From Ref [1] it can be estimated that defence exports in the UK are worth £ 10 billion with approximately 80 % of these exports coming from the air domain [30]. While In the security industry, the UK is the fifth most successful exporter of security products with an estimated UK domestic market valued at £1.8 billion. This puts an estimate for the entire UK defence and security export market as £11.8 billion. The market addressed by this section is defined as a sensor system that has the ability to detect threats. There is clearly an overlap with, for example, the military aerospace sector (MAS), a key challenge area relates to the advent of unmanned aerial vehicles (UAVs) [31]. For security and defence the CBRNe classification is commonly adopted, that is having the capability to detect threats from chemical, biological, radiological, nuclear and/or explosive substances. The CBRNe market is divided into four subsectors, detection, protection, simulation and decontamination; clearly the detection part of this market is the one relevant to this report. In the UK, Government is the largest procurer in this CBRNe market [32]. The challenges related specifically to sensor 26. UK Defence Survey 2012, ADS Group (2012) 27. UK Security Survey 2011, ADS Group (2011) 28. Global CBRN Defence Market 2013 – 2023: Chemical, Biological, Radiological & Nuclear Detection Equipment, 29. MOD expenditure and defence exports supports around 155,000 jobs, with a further 145,000 people indirectly employed in the supply chain 30. UKTI DSO, UK Defence & Security Exports Statistics for 2012, page 14 31. The University of Manchester, Aerospace Research Institute, Sensor Technologies. 32. National Security Through Technology: Technology, Equipment and Support for UK Defence and Security 2012

33

33. Sensor Technology challenges Within the Context of Integrated Defence Systems, Keith Lewis 34. Sensors in the Battlefield, Dstl (2010) 35. Defence Science and Technology Programme 2013/14

34


Table 5. Overview of current challenges and technologies in he defence and security market

CHALLENGE


35

EMPLOYMENT

SENSOR TECHNOLOGY

From the ESP Community cohort study (Ref 4), we can estimate the number of people employed in sensor companies involved in the aerospace, defence and security sectors to be approximately 43,600 [36]. In addition to the figures from the cohort study, there are employment figures to be added from identified Government groups that work exclusively in defence and security sensor R&D. Dstl employs 3,600 in the Detection and Sensors and Countermeasure groups [37]. A smaller harder number to quantify from University groups directly linked with defence and security sensor technologies funded through CDE Ph.D funding initiatives [38] - the sum of these is approximately 47,200. Using the employment figure derived earlier, the proportion of workers in the defence and security sector involved in sensor technologies is approximately 13.5%.

1

Significant increase in effective range for target detection and identification – whilst operating in difficult environments with scene clutter and noise

l    l   

CCD / CMOS Spectroscopy

2

Increase sensitivity of threat detection – trace amount of substances or detection of low profile/camouflaged UAVs etc.

l    l    l   

Biosensors Radiation detectors Spectroscopy

3

Deliver significant increase in field of view – whilst retaining high resolution

l   

CCD / CMOS

4

Provide stand-off detection and recognition of targets – through obscurants and materials, debris, fog, adverse weather, day or night…

l    l   

IR sensors X-ray detectors

5

Sensing technologies to meet the trends of a busier battlefield

l   

IR sensors

6

Increase the variety of detectable threats, with multiple sensors on one platform

l    l    l   

Biosensors Spectroscopy Lab-on-a-chip

7

The importance of on-site processing for real-time intelligence, increasing the generation of information not just data

l   

Integrated processing technology

8

Imaging round corners

l    l   

IR sensors X-ray detectors

9

Non-contact sensors for the evaluation of defence materials

l   

Ultrasound

Innovation in the defence and security sectors can be quantified by a number of different qualifiers shown below:

10

Advanced EM systems for passenger and baggage screening

l    l    l   

THz imaging X-ray tomography γ-ray screening

•

11

Smart sensors (where am I, what am I looking at? Automated ID) l Detection, recognition and identification. l Situation awareness l Pattern of life generation

l    l    l   

GPS RF Digital Compasses

Dedicated Academic groups: There are a few groups in the UK who are specifically involved in defence sensing technologies: UDRC, UCLan and Dstl for examples, with central government funding for Ph.D projects [41].

•

Large R&D facilities: The MOD has an extensive R&D capability and regularly undertakes development in technologies at all TRLs.

•

10

SWAP challenges. Unique challenges for ADS sensors l Size: for covert operations, sensor sywstems should be discrete. l Weight: may need deployment anywhere, must be easily transported. l Power: minimizing communication, could be remote locations and must reduce burden on SATCOM

11

Due to the potentially dangerous situation these systems will be in, ease of use is essential.

Patenting results: In the UK, applicants in all areas (except aerospace) appear to be performing relatively poorly [4]. However, when normalised to the population size, in the life sciences, security and defence sectors in 2012, the UK innovation is ranked 2nd ahead of Japan, Germany and France only behind the US. Total global patents for the security and defence sensor sector are shown in Figure 11, and show the UK as 4th in the World behind the USA, Japan and Germany [42].

12

As terrorists exploit military hardware and commercially-sourced technology, we require disruptive technologies to regain the advantages

l    l    l   

l    l    l   

MEMS Energy harvesting technologies Disruptive technologies in material science.

RF Quasi optical EO

TRADE From Ref 4, the UK turnover for companies working in the aerospace, defence and security sensor sectors are approximately £3.6bn and a non-UK turnover of £3.9bn contributing a total of £7.5bn and 47,200 jobs to the UK economy – resulting in a productivity figure of £159,000 per person per year. This figure comes only from UK private companies - including Government statistics for revenue and employment from Dstl [39,39] and MOD [40] of £107.1m, the total contributed to the UK economy is estimated to be approximately £7.6bn. As a fraction of the total UK ADS revenue, the sensor industry contributes a very impressive 22.4%.

INNOVATION

36. This figure is from sensor companies identifying themselves as belonging to either aerospace and defence or security sectors 37. Private communication from Dstl (2013) 38. https://www.Dstl.gov.uk/nationalukphdprogramme 39. Dstl Annual Report ad Accounts 2012/13, Published 17 June 2013 40. Sum of Detection group and Sensors and Countermeasures group revenue 41. https://www.Dstl.gov.uk/phds 42. It should be noted here that the patent metrics for the security and defence market are likely to be underestimates

36


Other France

23%

UK 54%

5% 4%

Germany Japan

6% 8%

USA

Figure 11. Defence and Security Sensor UK Innovation - publication country coverage

CURRENT POSITION AND RECENT TRENDS The defence and security sectors are currently dominated by military use and homeland defence and therefore often have strong links with Government (explained later in this chapter). In terms of defence, whilst global economies are cutting defence spending, the Chancellor in 2013 announced the defence budget will be maintained in cash terms at £24bn, and importantly for sensing companies, the equipment budget will be £14bn, which is a 1% growth in real terms – suggesting that the importance of sensor technologies has been appreciated for future growth. The financial downturn has put pressure on other nations defence spending. The UK however has seen growth during this, the stronger export market was driven by a weak home market and growth in the Middle East, Brazil, South-East Asia and India region. As explained in Ref. [43] – The Future Character of Conflict – an increasing population will drive a competition for resources, and will result in an increasing number of people living in urban areas leading to conflict arenas becoming more congested, cluttered, contested and connected. This shift to urban populations is currently driving much of the research into defence sensing. As shown earlier, technologies that are being investigated are those that can meet the challenges and security threats of urban conflict - seeing through walls, around corners, more sensitive explosive detection, more discrete, sensor technologies to identify CBRNe threats etc. ISTAR (intelligence, surveillance, target acquisition and reconnaissance) is a hugely relevant technology strategy for sensors in the defence and as under sections 22 and 23 of the UK Patents Act 1977, the Intellectual Property Office screens all patent applications and any that have a potential threat to national security (e.g. many defence patents) are never published 43. Strategic Trends Programme, Future Character of Conflict, Ministry of Defence 2010


37

security industry, these will involve technologies such as THz, CCD, CMOS, IR and microwave imaging. The inclusion of intelligence into the ISTAR strategy requires more than simply sensing something, it requires turning the data into information for better decision-making and strategy formation. This will require the UK to develop its skills in backend processing - ICT, statistical and mathematical approaches such as machine vision, risk and uncertainty quantification and management. Another clear crossover into aerospace is the potential development of UAV platforms with ISTAR technology being deployed in the combat arena.

38



39

HOW IT FITS INTO UK ECONOMY METRICS AS % OF UK Table 6. Metrics as % of UK economy for defence and security sensor market

EMPLOYMENT

47,200 in 29.84m employees in the UK (Ref 16) represents 0.16%

TRADE

Estimated £7.6bn turnover in $2.445 trillion GDP (Ref 17) is 0.50%

INNOVATION

Aberdeen

58,800 patents in 540,000 UK applications (Ref. 18) is 11%

LOCATION/CLUSTERING There are several cluster regions of companies (shown in Figure 12) around London and in the Northwest. These areas show a similar dispersion to that of the biosensors, perhaps suggesting that the companies working in defence and security sensor research also have interests in biosensor technologies, although according to Ref 22, defence in biosensors only holds a 2.2% market share. This could indicate that the sensors for defence are at a much lower TRL than for those associated with POC.

Edinburgh Motherwell Glasgow

Newcastle Teeside

Leeds

Lancaster Blackburn Liverpool

Doncaster Manchester Stockport Chester Lincoln Crewe Nottingham Derby Peterborough

Coventry

Newport Bristol Bath Cardiff

Norwich

Northampton Cambridge Colchester Stevenage London Chelmsford Guildford

Taunton Dorchester

Portsmouth Bournemouth

Plymouth

Figure 12. Location of the 261 identified sensor companies working in the defence and security sensor sector

Canterbury Tonbridge Brighton

40


It is interesting to note that the cluster that exists in biosensors in the Northeast, however, does not exist – this may indicate a fraction of bioscience research in that region that is not associated with defence and security application. There is also a large sensor community in the East Anglia region suggesting that R&D is still very active given that East Anglia is a technology hotspot.

East Midlands

7

East Anglia

22

London

8

Northern Ireland South East

45

South West

7

Scotland

8

Wales West Midlands North East

5 2

North West Yorkshire and the Humber

8 4


41

COMPETITION ANALYSIS DESCRIPTION OF MARKET PLAYERS/MARKET SHARE Internationally, the market is dominated by multinational companies, and the largest defence spenders: North America and Europe have well developed domestic CBRNe industries, which makes them self-reliant. Companies of note are: Argon Electronics, FLIR Systems, Blucher GmbH, Federal Resources and Smiths Detection [44]. In the UK, the size of the companies involved in the aerospace, defence and security sensor market are predominantly medium or large (approximately 2/3) companies (Figure 14 (a)) this dominance of the larger players is confirmed with reference to the top 10 companies (in terms of revenue): QinetiQ, Selex, Ultra Electronics PMES, Astrium Ltd, TT Electronics Plc., BAE Systems, Honeywell, Goodrich, e2v Technologies and Meggit who possess 77% of the defence and security sensor market. In terms of innovation (patents fraction) the main players are IBM, Microsoft (USA), Nokia (Finland), Panasonic (Japan) and Samsung (Korea) with the UK not in the top 20, suggesting much of the work in this area is based on cyber-security. No large defence companies or Government aided companies fall into the top 10, no doubt due to the UK Patents Act which restricts the publication for reasons of national security. The large players for the UK for innovation are companies such as IBM UK, BT, QinetiQ, BAE and De La Rue. With reference to Figure 14 (b), the UK is active across all parts of the supply chain in security and defence sensing. Its strong instrumentation sector indicates how the UK is a prime supplier of defence and security equipment globally.

Figure 13. Regional location of UK defence and security sensor companies

SPILLOVER Whilst the sensor technologies in this section are already well allocated into sectors, there is clearly a large crossover into other sectors due to the diverse technology base involved. Applications away from defence and security that are driven by CBR detection are in areas such as environmental monitoring, health and perhaps space applications. Other spillover sectors related to aerospace might include transport. The underlying challenges in reducing SWAP (size, weight, cost and power), increasing durability for tough environments are challenges that span all sensor technology sectors.

44. The Global CBRN Market 2013 – 2023 – Competitive Landscape and Strategic Insights: Market Profile. Strategic Defence Intelligence (2013)

42



43

RANKING BY KEY METRICS AGAINST REST OF THE WORLD OR MAIN COMPETITOR COUNTRIES

7% 17%

22%

25%

24%

29%

24%

52%

Large > 250

Services

Medium 51 - 250

Instrumentation

Small 11- 50

Sub-systems

Micro < 10

Sensors

Figure 14. (a) Size of the companies in the defence and security sensor market and (b) Shape of the supply chain in the defence and security sensor sector

The table below compares the size of the defence and security sensor market to that of other key countries in that sector: size of the market, number of patent applications in the sector and number of patents normalised to the regional workforce. Figures for Table 7 are compiled from Refs 4 and 14. Table 7. Key metrics for market size and patents normalised to regional workforce

2012 MARKET ($BN)

PATENTS


ALL TERRITORIES SECURITY & DEFENCE

N/A

1,470,947

0.0490%

UK SECURITY & DEFENCE

£7.6

58,800

0.1970%

GERMANY SECURITY & DEFENCE

N/A

88,300

0.2206%

USA SECURITY & DEFENCE

N/A

794,300

0.5558%

44


EXPECTATIONS/FUTURE GROWTH POTENTIAL (SHORT, MEDIUM AND LONG TERM) DRIVERS WITHIN THE SECTOR The main drivers for growth in the defence and security sectors are: •

•

•

An increasing population will drive a competition for resources [46]. This increasing population will result in an increasing number of people living in urban areas, which in a military perspective, will result in battlefields becoming more congested, cluttered, contested and connected.


45

•

Veterinary – detection of animal diseases

•

Food and drink – detect and determine the viability of food pathogens

Expected growth for the defence and security sensor market - The global CBRNe detection market is expected to increase at a CAGR of 4.1% [47] between 2013 and 2023, to reach $13.7bn by 2023.

BARRIERS TO ENTRY AND EXIT UK companies may find the UK a hostile environment to enter in the defence and security sensor market due to a variety of reasons:

Defence aerospace: As warfare becomes more complex, the technologies to detect and combat it require innovation. In particular, with the advent of UAVs - advanced sensors will be required for navigation and pilotage to enable UAVs to operate in the same airspace as manned aircraft. Global information networks will allow sensors to be networked, which when coupled with novel data fusion algorithms, will provide a capability for intelligence.

•

Lack of supply chain integration: The MOD rarely buys from sensor developers but instead from the sensor integrators above them [48].

•

Start-up costs: As defence and security equipment is often highly complex, defence equipment contractors tend to go through Defence Prime Contractors such as QinetiQ etc.

Increasing concern over global terrorism and CBRNe threats, which constitute an issue of highest concern in the UK [45], require more sensitive detection and coverage of a wider range of agents.

•

Collaboration: with reference to the collaboration map of the top 5 patent applicants (Fig. 83 in Ref. 14), entry is restricted by the relatively insular and non-cooperative nature of the collaborations landscape. As SMEs would probably require a large company to enter the market with, this lack of collaboration is a hindrance. Secrecy: related to the above point, the need for secrecy for national security also prohibits the vital transfer of knowledge required.

WITHIN LINKED SECTORS •

The main drivers in linked sectors for the defence and security sensor markets include:

•

•

Increasing connectivity of sensor devices to the internet: development of smart networks of CBRNe sensing for global monitoring / dangerous goods tracking.

BARRIERS TO BUILDING CAPABILITY

•

Environmental sector: the awareness of growing environmental pollution is at its peak and new technologies are evolving to detect contaminants / pathogens etc. This sector now has more support from local universities, Government and companies.

•

SWAP: Cross cutting challenges reduces the size, weight and power – especially low-power electronics and energy harvesting technologies.

•

Industrial mathematics: Smart on-chip sensor signal post and pre-processing are required by many defence and security sensor systems for real-time detection, intelligence and counter-action to take some of the responsibility out of human hands. The University Defence Research Collaboration (UDRC) in Signal Processing is currently addressing these challenges [46].

•

Material science: new materials leading to disruptive technologies are linked drivers for detection sensors.

•

Forensic science - chemical and biological sensing for scene of crime analysis

45. The Release of Chemical, Biological, Radiological or Nucleur (CBRN) Substances or Material, Guidance for Local Authorities, Home Office 2003 46. UDRC: University Defence Research Collaboration in Signal Processing. http://www.eng.ed.ac.uk/drupal/udrc/

•

BIS revealed weaknesses for optics, electronics and information technology, three key areas for addressing the current sensing challenges listed above. The formation of intelligence and decision making – vital for these applications – cannot be performed without appropriate mathematical and statistical treatment of the sensor data; an area which can be commonly overlooked.

•

Opportunities to develop wireless sensor networks implicit for large scale defence and security applications require stringent network security – which is currently one of the biggest challenges faced with the Internet of Things (IoT). Until resolutions on standards and safety have been achieved, little progress can be made.

•

Innovation can be hampered by albeit necessary secrecy that is associated with this area, see for example the Patents Act 1977.

•

The explosive detection industry, for example, can not introduce a new sensor system unless it is very certain of it, as peoples lives are at risk.

47. Global CBRN Defence Market 2013 – 2023 Chemical, Biological, Radiological & Nucleur Detection Equipment 48. Private communication with the AAD Community

46


OPPORTUNITIES IN THE UK There are a few specific UK drivers and opportunities for the UK sensor companies involved in the defence and security sector to capatilise on which include: •

Increasing concern over home-grown terrorism has raised awareness of UK based security,

•

A specific centre for sensor research in the ADS sector is the Dstl ISTAR and sensors organisation, research funding for this initiative is approximately £40m for the years 2012 - 2013, 25% of the work is done within government with the remaining 75% of the work being done by external resources providing a good opportunity for UK sensor SMEs.

•

The UK defence budget remains the fourth largest in the World, and will be spending around £160bn over the next ten years on equipment and support, providing continued funding for sensor R&D projects [49].

OPPORTUNITIES IN THE UK AND OVERSEAS •

There are opportunities to engage in international collaboration programmes including working with the French government on multi-function sensor technology development and with NATO on ISTAR standards via the MAJIIC [50] (multi-sensor aerospaceground joint intelligence surveillance and reconnaissance (ISR) interoperability coalition) collaboration) [51].

LIMITING FACTORS AROUND AVAILABLE OPPORTUNITIES Constraints to sector growth are: •

The rarity of a CBRNe event means that technology can rarely be tested in the field and it can be seen as unnecessary to outfit large populations with CBRNe sensors.

•

Shrinking defence budgets globally mean that less money is in the sector [52].

•

Ending of combat missions in Afghanistan restrict in-field testing of devices.

49. Securing Prosperity: a strategic vision for the UK defence sector. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/237314/bis-13-1154-defence-growth-partnership.pdf 50. http://www.nato.int/docu/update/2007/pdf/majic.pdf 51. https://www.Dstl.gov.uk/istarandsensors1 52. 2013 Global aerospace and defence industry outlook, Deloitte


47

CAPACITY TO RESPOND TO OPPORTUNITIES 48

Acoustic / Ultrasonic

77

Chemical / Gas 46

Electric / Magnetic

50

Flow / Viscosity / level / pH 40

Force / Load / Torque / Strain 26

Humidity / Moisture

45 83

Optical 33

EM

60

Motion / Velocity / Displacement/ Acceleration / Vibration

70

Position / Presence / Proximity 50

Pressure

106

IR / Thermal / Temperature 23

Bio-sensor / Bio-sensing Audio Radiation

9 15

Figure 15. ADS sensor technology breakdown

The UK is a world leader in defence and security R&D and the sensor sector enjoys unparalleled Government intervention. With reference to Figure 15, given the challenges in the defence and security industry above, the UK sensor technology base seems ready to respond to the challenges of imaging, gas and chemical detection given the large number of companies in the chemical/gas, optical and IR / thermal / temperature technology sectors. There does appear to be a weakness however in the number of radiation detection companies working in this sector, estimated to be around 15 in this study. The identified theme of intelligence building by integrated pre- and post-processing technology could be a negative factor for UK sensor companies. This comes from the BIS report that reports an identified weakness in the optics, electronics and information technology sectors. These sectors will be vitally important for the next generation of intelligent sensor device. Recognising itself as the prime contractor for much of the defence market, Government have addressed many of the constraints and difficulties for UK businesses, as they are in the best position to help SMEs. They have developed various schemes though grants or centres to help ease the route for sensor SMEs into the large contract projects that dominate the market. The current Governmental commitment to sensor science and technologies is shown in the National Security

48


Through Technology: Technology, Equipment, and Support for the Defence and Security Document (Ref. 33) is: Continuing to develop the ability to communicate rapidly and effectively within and between all relevant organisations, including being able to manage information from sensors deployed in challenging environments and develop accurate information pictures in real time. The following are Government initiatives designed to address these specific challenges: •

Defence Equipment & Support: To streamline the procurement process for UK companies, the Defence Equipment & Support exists, whereby all MOD procurement is through one organization


application [54] We are helping UK companies to thrive, through practical advice to exporters, back up by robust diplomatic support, and with a specific emphasis on encouragement to the SMEs that are vital in providing innovation and flexibility to the defence and security supply chain. Our proposed Patent Box regime offers a reduction in corporation tax on profits attributable to patents and will also act as an incentive for companies in the defence and security sector to invest further in innovation and technology. l

Make defence and security procurement as accessible as possible to small – and medium-sized enterprises (SME’s) … recognized in particular that Governments are the leading customers of defence and security goods and therefore our procurement approach and the differing approaches in other countries shape the defence and security market •

Centre of Defence Enterprise: Universities are readily engaged in collaborative R&D through interaction with the Dstl and the MOD (via the Centre of Defence Enterprise). CDE funds research into novel, high-risk, high-potential-benefit innovations. CDE works with the broadest possible range of science and technology providers and often provides an entry point for those new to defence. CDE aims to remove barriers for small and medium-sized enterprises (SMEs) to enter the defence supply chain.

It starts from the presumption that work should be conducted by external suppliers unless there is a clear reason for it to be done or led by Dstl. At present, around 60% of the approximately £400m MOD non-nuclear defence research programme, managed through Dstl, goes to industry and academia to deliver. More than two thirds of CDE contracts go to SMEs, it is aligned with the Government’s SBRI managed by the TSB resulting in contract based work with Government as the primary customer. Quick commercialization of novel sensing technologies is achieved through large, well-established, high profit UK organisations such as BAE, QinetiQ and others. There also exist a number of EPSRC funded university consortia aimed at addressing relevant issues in defence sensing, see the UDRC, UCLan and Dstl for examples. Dstl leads on concept development, top-level system design, performance modeling and specific niche technologies, while the external resources lead on concept realisation, system development and demonstration and wider technology development. Overarching all of these activities is the ISTAR Concepts and Solutions project which develops future system concepts at the enterprise level, future technology concepts, architectural designs, assessment methodologies and carries out live experimental validation of concepts. ICS regularly runs a series of themed calls [53] through the CDE, for example the Dismounted Urban Sensor Technology call which was led by the Dismounted Tactical ISTAR 53. http://www.science.mod.uk/events/current_calls.aspx

49

DGP: Launched on 9th September 2013, the Defence Growth Partnership is a Government and industry partnership to secure a thriving UK defence sector, delivering security, growth and prosperity. The DGP will identify and establish eight joint teams with clear objectives to identify and develop enduing propositions. 1. 2. 3. 4. 5. 6. 7. 8.

Air capabilities team Intelligent systems team International business team Technology and Enterprise team Skills team Value chain competitiveness team Engagement team Strategy team

The DGP has been established to involve and engage with key stakeholders across wider Government, Academia, trade associations and all levels of the industrial value chain in the UK, from Prime Contractors to SMEs to work together to deliver enhanced growth and prosperity for the UK. So far we have benefited from a broad base of active participants, including Government (BIS, MOD, UKTI) Industry (15 companies) and the trade association ADS l

Ploughshare Innovations: In the UK, the Dstl has set up Ploughshare Innovations which licenses world-class defence technology developed for defence – designed to maximize the impact of science and technology on UK defence and security. Evidence of its success can be found in a number of its case studies on their website [55].

l

Tax breaks: Aerospace companies are also eligible for tax breaks which amounted to $173m in 2008. Examples of generic eligible activities: o

Development, ground trials and demonstration testing of prototype aircraft, helicopter, warships, ground vehicles, aircraft or equipment

o

Integration of existing equipment with platforms, which it has not previously been fitted.

It has been reported however, that many companies do not take advantage of this opportunity. 54. ISTAR and sensors, Dstl, https://www.Dstl.gov.uk/istarandsensors1 55. www.ploughshareinnovations.com


Table 8. SWOT analysis of the defence and security sensor market

HELPFUL

HARMFUL



S TH NG

S

SE

ST

ES

RE

KN

It is vital for the UK to maintain and grow the national capability in sensing because sensing is at the heart of many security and defence technology. Continuing investment into developing innovative sensing technologies through Dstl and CDE is important. It is also important to develop mechanisms to support involvement of SMEs in this area and creating an innovative ecosystem, where SMEs work together with prime contractors of the UK MOD.

SWOT ANALYSIS FOR THE DEFENCE AND SECURITY MARKET

EA


51

W

Small Business Research Initiative (SBRI): a funding scheme that matches business ideas to government challenges through a simple procurement process. SBRI works well for SMEs because it funds 100% of the project cost. Recently, SAPIENT SBRI competition co-funded by Dstl and TSB proved that it could be an efficient collaborative framework for SMEs and large companies working together to develop technologies for security and defence. The call attracted a large number of highly innovative proposals and it could be used as a template for the future activities. SBRI also strengthens a positive spillover effect, where technologies and ideas from civil applications are being transferred into the security and defence sector and vice versa.

INTERNAL ORIGIN

l

SENSORS FOR THE TRANSPORT (INCLUDING AUTOMOTIVE) SECTOR


50

o

Government support to defence and security R&D through increased funding to defence technology.

o

Defence budget remains fourth biggest in the World.

o

CDE provides access for R&D into the Dstl for sensor technologies.

o

Singular route for supplying into MOD.

o

SBRI regularly engages SMEs .

o

Complex equipment means MOD tends to buy through established Prime Contractors.

o

Intelligent sensors for ISTAR operations require strong skills in information technology – a revealed weakness according to BIS.

o

Rarity of CBRNe event makes realistic field testing difficult.

o

Weakening global markets to invest in UK ADS companies.

o

Need for secrecy in many military based technologies stifles innovation.

o

Network security.

Suggestions include:

o

Strongly linked CAS increase will provide income for companies with links in ADS sensor development.

ES

TI

RE

I UN RT

PO

AT S

OP TH

3. Understanding the importance the mathematical sciences can have in this sector. There have existed KTN/MOD collaborations in this area (the Underpinning Defence Mathematics (UDM) programme) and a currently funded Dstl/EPSRC (the UDRC) programme. It is important to ensure that the work of these continues.

EXTERNAL ORIGIN

2. Some clear methods for helping Prime Contractors engage with SMEs whether through community engagement events or technology showcases.


1. Creation of facilities that can help demonstration of technologies as it is hard to apply many of these technologies to the purpose they were designed for.

52



53


£7.7


42,000 11,100 EMPLOYED IN PATENTS TRANSPORT COMMUNITY

IN LAST 10 YEARS

54



BASIC STATISTICS The transport sensor sector covers sensor systems relevant to the running of the transport infrastructure, be it rail, aviation, marine or road. The automotive sensor sector covers sensor systems directly to automotive vehicles. Due to their size, the sectors cover a diverse number of technologies and applications from the small, simple magnetic sensors used for rotational speed information to advanced, multi-faceted LIDAR systems used for intelligent transport. The size of the transport and automotive market is one of its defining features in terms of employment and revenue. If aviation were a country, for example, it would rank 19th in the world in terms of GDP, generating a staggering $539bn per year, considerably larger than some members of the G20 [56]. Briefly, the global size of the transportation and automotive sectors are shown below:


55

communication and sensor technologies to vehicles and transportation infrastructure in order to provide real-time information for vehicle users and transportation system operators with the aim of better decisions making. ITS aims to improve traffic safety, relieve traffic congestion, reduce air pollution, increase energy efficiency and improve homeland security. In the last 5 years, the global ITS market witnessed substantial growth, this growth is attracting vendors throughout the value chain of the transport and automotive industry to invest in this sector [61]. Although specifically different, there is a generic commonality whether on land, sea, or air transport. The sensor technology in these areas are used to create Intelligent Transport Systems, and following the definition of S3C can be identified as belonging to the (non-exhaustive) applications defined below [62].

The global transportation market recorded more than 7% year-on-year growth in 2011 to exceed an industry value of more than $2.8 trillion, the industry is expected to generate revenues in excess of $3.8 trillion in 2016, representing 37% growth rate over the five years. [57] There is significant global opportunity potentially worth £900bn annually by 2025 for improved transport systems that unlock latent capacity. We request a five-year core grant of £46.6m from the TSB to make this happen. In return, we believe we can generate £712m of linked economic value within the same period.[58] The UK has a strong transport industry especially in aerospace, road, rail and marine sectors as well as capabilities in intelligent transport systems. Transport is important to the UK economy as it provides employment for 1.3 million people and generates GVA of £40bn [20] The UK produces 1.5 million cars and commercial vehicles and over 2.5 million engines. Of these, around 80% of vehicles and 70% of engines are sold overseas… typically generates around £50bn in annual turnover … (it) is the UK’s largest sector in terms of exports and generated £29bn of export revenue for the UK in 2010… accounts for around 11% of total UK exports … employs over 730,000 people across manufacturing, retail and aftermarket sectors with approximately 145,000 people directly employed in manufacturing in 2010 [59] The market addressed by this section is defined as any device that adds intelligence to a transport or automotive system through the inclusion of a sensor device. The definitions proposed by the Scottish Sensor Systems Centre (S3C) in Ref [60] shall be used to cover the scope of the section. This definition contains all the standard sensing equipment used today in transport and automotive industries (fuel gauges, exhaust quality monitors, engine temperature etc.), but importantly opens up the definition to include new innovative, technologies which are being currently developed. Intelligent Transport Systems (ITS) apply network 56. ATAG facts and Figures, www.atag.org 57. Global Transportation Market, Companies and Markets (2013) 58. Transport Systems Catapult, Five-Year Delivery Plan to March 2018 (2013) 59. Motor Industry Facts 2012, The Society of Motor Manufacturers and Trader (2012) 60. http://sensorsystems.org.uk/markets/intelligent-transport/

61. Intelligent Transportation System (ITS) Market – Global Industry Analysis, Size, Share, Growth, Trends And Forecast, 2013 – 2019, Research and Markets (2013) 62. Sensing a Brighter Future, Sensors and Sensor Systems for Scotland, Technology Advisory Group (2010)

56


Table 9. Overview of current challenges and technologies in the transport and automotive market

CHALLENGE

SENSOR TECHNOLOGY

1

Sensing technologies for invehicle applications to monitor efficiency, safety and the environment of a vehicle.

• • • •

Temperature Rotation Position Chemical sensing

2

Systems for traffic sensing, signaling and management that enable the control and management of traffic whether on land, sea, or air.

• • • •

GPS RF communication CCD / CMOS Long range communication

3

Technologies that monitor and relay information to the driver / pilot.

• • • •

GPS RF communication Temperatures, Position

4

The ability to monitor the external environment from within the vehicle for situation awareness.

• • •

RADAR / LIDAR Ultrasound CCD / CMOS

5

Technologies for understanding a vehicles position / attitude. High reliability in harsh conditions: high temperature, high pressure etc.

• • • •

GPS Digital compasses MEMS Disruptive materials advances

6

SWAP challenges. Unique challenges for transport and automotive sensors are: Size: Should be small for installation in vehicles. Weight: in-vehicle systems need to be light for installation on vehicles. Power: in-vehicle systems must not detract from engine or system performance.

• • •

MEMS Energy harvesting technologies Disruptive technologies in material science


applications are 27,500. This information is shown in Figure 16.

TRADE For all the companies in the UK sensor cohort studying declaring their business interests as being in the automotive and/or transport sectors, the UK turnover is £4.5bn and the non-UK turnover is £3.3bn, the fact the UK turnover is larger than the export market suggests that the transportation and automotive industries in the UK are self-supporting sectors. Breaking that down into automotive and transport looks as follows:

EMPLOYMENT 8,000 13,500 27,500 42,000

TRANSPORT

AUTOMOTIVE

and and /or

REVENUE £1.4bn £2.8bn £4.8bn £7.7bn

Figure 16. Breakdown of employment and revenue of the transport and automotive sensor market (From Ref. 4)

INNOVATION •

Dedicated academic groups and spinouts: The Intelligent Mobility and Intelligent Transport Systems Capability Report [63] reveals 20 UK academic research centres working in the areas of intelligent mobility and intelligent transport systems (Table 22 in Annex 2) and list (as of 2010) of projects funded under EPSRC, TSB and FP7.

•

Company R&D: With reference to Figure 25 (b), the transport and automotive sensor industries are very robust in the sensors and sub-system area, suggesting continual R&D. According to Ref. 63, £1.3bn was spent on automotive R&D in the UK in 2010.

•

Patenting results: The innovation in the Transport and Automotive sectors can be quantified by the patent position of the UK. The applicant country distribution for the transport sensors and automotive sensors are shown in Figure 17 and Figure 19 respectively. The UK typically has 2-3% share of the patents in the years 20032013. For both the automotive and transport sensor market, the majority of the patents (approximately 80%) are dominated by three countries (Japan, USA and Germany).

EMPLOYMENT The automotive and transport sensor sector supports employment for approximately 42,000 people [4]. Those working in only the automotive sensor development sector amount to approximately 13,500 whilst those working purely in transport sensing amount to 8,000. Companies who develop sensor technologies in automotive and transportation

57

63. Automotive technologies: The UK’s current capability, Technology Strategy Board (2010)

58



Other

Other

UK

18%

UK

20%

24%

Germany

2%

59

Germany 3% 45%

Japan

Japan

12%

23%

USA

USA

33% 20%

Figure 17. Automotive UK Innovation - country publication coverage

Figure 19. Transport UK Innovation - Country publication coverage

Figure 18. Automotive patent landscape with UK companies shown

Figure 20. UK Transport patent landscape with UK applications shown

60


Figure 18 and Figure 20 are graphical depictions of the patent landscape in terms of application areas and where the major UK patentees are covering. The snow-capped peaks in Figure 18 relate to the keywords “train”, “railway”, image”, “camera”, “warning” and “speed” and appears well covered by the UK company priorities. The snow-capped peak in the top left of Figure 20 shows that the majority of patents in this dataset appear to relate to sensor systems for vehicle occupant safety and is covered by one UK company.

CURRENT POSITION AND RECENT TRENDS The automotive and transport sensor market is traditionally driven by monitoring and safety sensors, Figure 21 shows the growth in automotive sensors. Traditionally, the sensors have been for applications such as rotational monitoring, temperature, emissions monitoring, pressure and position sensors. This growth will likely continue, driven by increasing car numbers, more advanced controls requiring more safety monitoring and more stringent environmental requirements. This can be seen in Table 10 (taken from Ref. 64), where the sensors with the highest annual growth rate (AGR) are those associated with monitoring emissions, efficiency and situation awareness which encompass current technologies such as Advance Driver Assistance Systems (ADAS). The predictable growth of the automotive industry is one important factor which attracts component suppliers - for example, magnetic sensors for automotive applications are forecast to grow at a CAGR of 7.44%, where the automotive sector alone will top $1bn by 2016 for speed monitors on the steering wheel and wheel-speed for vehicle dynamics systems [65]. But what room is there for innovation in these areas? It can be expected that innovation will be in developing lower-cost, energy efficient devices which are robust against harsh environments with novel material science and MEMS technology.

175 241 276

2003 2007 2011

103 164

Chassis

207 106 218

Safety

61

Table 10. High growth automotive sensors, Ref. 68

SENSOR

APPLICATION

2008 MU

CAAGR 2003-08

NOX

Emission Control

6.4

139 %

Current

Battery Monitoring

7.8

104 %

Ultrasonic

Occupant Detection

2.7

84 %

Pressure – Tyre

TPMS

122

72 %

Infra-Red

Occupant Detection

1.9

72 %

Temperature – Brake

Braking Systems

2.0

71 %

Pressure - Brake

Braking Systems

9.3

64 %

Pressure – Side Airbag

Airbag Systems

11.3

56 %

Position – Rear Angle

4 – Wheel Steering

1.5

46 %

Position – Clutch

Automated Manual Transmissions

4.0

45 %

Where the automotive sensor market is already seeing new areas of growth are in CCD and CMOS technologies, which link the ITS market. Pre-emptive technology and situation awareness systems are being developed which may render the driver redundant in future vehicles. A recent demonstration by Google [66] utilises 3D cameras and near-IR to illuminate scenes and resolve distances via time-of-flight methods. The cameras use specially designed CCD or CMOS sensors and are being developed as a low cost alternative to LIDAR systems. Transport for rail, maritime, aviation are moving towards driverless technology rapidly, even quicker than for the automotive sector. UAVs are already in use for military purposes, and it can be extrapolated that it will not be long until this technology is adopted for passenger airlines [67]. Driverless rail systems are already in preparation, for example in Riyadh – where Siemens are constructing a driverless underground system [68]. Social aspects of such technology advances will need to be addressed before the mass roll-out of these commercial systems.

SYSTEM VOLUME DEMAND (MILLION UNITS)

Powertrain


292 89

Security

130 163 258 395

Body

485 121

Driver Info.

164 194

Figure 21. System volume demand (automotive sensors) (units of MU) Data adapted from Ref. [64 64. Automotive Sensors, Strategy Analytics 65. Global Automotive Magnetic Sensors Market 2012 – 2016, Research and Markets (2013)

66. http://en.wikipedia.org/wiki/Google_driverless_car 67. http://uk.news.yahoo.com/pilotless-passenger-planes-to-take-first-test-flights-over-uk-143538850.html#ToUKgZh 68. http://www.siemens.com/press/en/pressrelease/?press=/en/pressrelease/2013/infrastructure-cities/mobilitylogistics/icmol201310030.htm

62


8%

Rail

2% 1%


R&D CATEGORY SHORT

Marine Aviation Automotive

Intelligent transport systems (ITS)

89%

Autonomous vehicle control Figure 22. Breakdown of UK Automotive and Transport Sensor companies

Figure 22 shows the breakdown of sensor research in the UK companies (Ref. 4) defining their role as Automotive and transport companies the skew towards automotive is clear. From Figure 25 (b), it is shown that the UK community is strongly represented throughout the entire supply chain demonstrating good integration from the fundamental materials research to the implementation of instruments and services. The collaboration map for transport shows good links between UK automotive sensor companies and a somewhat patchy situation for the transport sector suggesting more could be done to harbor collaboration. This may be due to the age of the sector that it hasn’t had the time to form links yet. The last aspect of sensor technology development relevant to this chapter will be the integration of sensors to form intelligence. The fusion of camera data with data from other on-car sensors remain an industry objective for creating intelligence. The aim of this integration will be to create networks of transport facilities that talk and respond to each other for smoother, more efficient and quicker travel for commuters and goods. Part of the automotive technology roadmap published in Ref. 67 details the short, medium and long term and studies the reported activity level in the UK and their relevance of projects for the roadmap. Of interest here are the technology area shown in Table 11, whose R&D areas are best related to sensors and sensor systems. The report concludes that in the sensors & sensor integration area the level of UK activity in academia is medium, in development is medium and for manufacturing is low. Table 11. Control systems UK capability to deliver. The darker the colour, the better the UK’s capability in the short term, taken from Ref 67

Sensors & sensor integration

MEDIUM

LONG

63

JUSTIFICATION / RATIONALE o

Strong evidence of significant capabilities in this area (number of active players, academia involvement, project characteristics etc.)

o

Large number of funded projects

o

Strong players in enabling industries present (e.g. telecoms, navigation system information providers)

o

Emergence of disruptive technologies could strongly influence the medium and long term capability assessment (positive or negative)

o

Already medium reported level of R&D activities, even though Roadmap only requires autonomous control in the long term

o

High relevance of reported projects for Roadmap, current capability would allow medium term success in meeting requirements

o

No UK-based OEMs reported in this area

o

Strong supporting foundation from related technologies (e.g. ITS)

o

Limited activities for short term delivery (players & projects), and no large scale manufacturing capabilities

o

Innovative sensor technologies and sensor integration research reported for medium term

o

Medium and long term potential to capatilise on progress in this category

64



65

HOW IT FITS INTO UK ECONOMY METRICS AS % OF UK Table 12. Metrics as % of UK economy for automotive and transport sensor sector

EMPLOYMENT

42,000 in 29.84 million [17] employees in the UK represents 0.14%

TRADE £ 7.7bn ($12.47bn) in $2.44 trillion [18] is 0.51% INNOVATION

Aberdeen

Automotive: 8,400 patents in 540,000 UK applications from 2003 is 2.5% Transport: 2,700 patents in 540,000 UK applications from 2003 is 0.5% [19]

Kirkcauldy Falkirk

LOCATION/CLUSTERING The historic home of UK automotive manufacturing in the Midlands is also responsible for a cluster of automotive and transport sensors companies (shown in Figure 23). The increased number of sensor companies in the South-East (where there is minimal automotive manufacturing) is likely down to maritime, aviation, rail or ITS R&D.

Glasgow

Newcastle Sunderland

Ballymena

Darlington

Scarborough

Leeds Preston

Manchester Stockport Liverpool Crewe Nottingham Stoke on Trent Derby

Peterborough

Norwich

Birmingham Coventry

Northampton

Worcester Newport Bristol Cardiff

Cambridge Stevenage

Slough

London

LOCATION OF THE MAJOR UK AUTOMOTIVE MANUFACTURING PLANTS

Chelmsford

Dartford

Guildford

Taunton LOCATION OF UK SENSOR COMPANIES IN THE TRANSPORT AND AUTOMOTIVE SECTORS

Ipswich Colchester

Dorchester

Portsmouth Bournemouth

Brighton

Folkstone

Plymouth

Figure 23. (a) Location of the major UK automotive manufacturing plants and (b) Location of UK sensor companies in the Transport and Automotive secton

66


DESCRIPTION OF MARKET PLAYERS/MARKET SHARE

30

East Anglia 4

Northern Ireland 54

South East 11

South West 8

Scotland Wales

3 6

West Midlands North East

395 485

3 9


67

COMPETITION ANALYSIS

11

East Midlands

London


6

Figure 24. Geographical location of Transport and Automotive sector sensor companies

SPILLOVER The vast majority of the sensor companies in the UK (based on the Cohort study) are associated with automotive systems. Spillover in the transport and automotive sector is into the aerospace and defence and industrial processes markets. This spillover is no doubt due to the high precision manufacturing for challenging conditions associated with these markets. There is also spillover into the energy and networks market which is maybe due to the network requirements of ITS technology.

The UK transport and automotive sensor sectors are unequally split between the two markets (Figure 22) [69] with automotive sensors accounting for £6.3bn whilst non-automotive sensors contribute £1.4bn. Globally, in terms of patents – for transport sensors the main players in this sector are Siemens and Bosch (Germany), Toyota (Japan), General Electric and IBM (USA) For automotive sensors, the main players are Toyota (Japan), Bosch (Germany), Honda (Japan), General Motors (USA) and Denso (Japan). It may be important to note that the UK does not feature in either of the top 20 for automotive or transport, where our large players are cooperation’s such as Land Rover, Jaguar, Nissan and Ford UK for automotive and Westinghouse Brake & Signal, QinetiQ, BAE Systems, AGD systems and Neul for transport. In terms of turnover, the main players in the automotive industry are QinetiQ, Selex, Calsonic Kansei, Euro Car Parts Ltd, Honeywell, Motorpoint, e2v Technologies, Tyco Electronics, Schrader Electronics and Denso Sales UK, these top 10 possess 78% of the total automotive sensor market. For the transport industry (including automotive) the key players are QinetiQ, Selex, Garmin Ltd, TT Electronics, e2V Technologies Tyco Electronics, Allegro Microsystems, Coorstek Ltd, Otter Controls Ltd, this top 10 posses 64% - suggesting that the market is more open for transport technologies, again highlighting the relatively young ITS market. This highlights what is shown in Figure 25, where the size of the companies is shown to be predominantly medium to large. 2% 21%

21%

20% 28%

26% 26%

56%

Large > 250

Services

Medium 51 - 250

Instrumentation

Small 11- 50

Sub-systems

Micro < 10

Sensors

Figure 25. (a) Size of UK Automotive and Transport Supply Chain and (b) the shape of the supply chain 69. Estimated from the ESP Community sensor cohort study. Companies listing themselves as Automotive sensor companies were put down as such and the remainder were categorized according to their website information. The reported UK and non-UK revenues were the summed and the graph presented is of that.

68


RANKING BY KEY METRICS AGAINST REST OF THE WORLD OR MAIN COMPETITOR COUNTRIES Table 13 compares the size of the automotive and transport UK market by commenting on the market size and the patent fraction in the UK and important competitor countries (where available). The figures in Table 13 come from Refs. [4,14] and [78] Table 13. Turnover and patent fraction of UK automotive and transport sensor companies and key competitor countries

MARKET ($ BILLION)

PATENTS


24.8

89,312

0.0013%

(2013 estimate)

17.2

418,465

0.0059%

Transport:

£5.0

2,700

0.0090%

Automotive:

£6.3

8,400

0.0281%

Transport:

N/A

10,700

0.0268%

Automotive:

N/A

96,200

0.2406%


EXPECTATIONS/FUTURE GROWTH POTENTIAL (SHORT, MEDIUM AND LONG TERM) DRIVERS WITHIN THE SECTOR The main drivers for growth in the transport and automotive sectors are: l

Environmental sector: in the last decade the number of vehicles in the UK has risen by 6 million to over 33 million. Transport contributes around 24% of CO2 emissions in the UK, a highly significant statistic in light of Government aims to reduce overall CO2 emissions by 26% by 2020. The push for cleaner, more energy efficient vehicles promote the need for smarter engine monitoring and more efficient transport systems [70]. This has already seen the number of sensors in a car engine rise from 10 in 1995 to more than 30 in 2012. This is an innovative sector where Government mandates often dictate the drivers.

l

Industrial sector: with smart integrated and monitored vehicles, freight and logistical transport fleets can be expected to make huge savings – for example, it was estimated in 2006 that a 5% reductions in road travel time could deliver savings for business of around £2.5bn [71].

l

Increasing population: with an increasing population, more people will require cars. The world’s population is to reach 9.2 billion by 2050, with 2/3 of the population living in cities compared to the ½ now as well as the number of megacities expecting to increase from 22 to 60 -100 in the same time period [73]. This increase in urban population will require rail intra-city transport networks to support it.

l

Security: there is also potential for development around security and crime reduction including CCTV, ANPR, access control, enforcement, vehicle identification and incident management – these may not currently be driving the research for ITS but would be a consequence of it.

l

Government legislation plays a significant role in growing the automotive sensors sector. Environmental regulations such as Euro 5, Euro 6 in Europe tend to limit pollution caused by road vehicles. These regulations require more complex systems often resulting in more electronic content in automotives. Legislation called the TREAD Act in the United States has made the installation of TPMS (tire pressure monitoring systems) in all vehicles mandatory. The Government of United States also has made passengers airbags and side airbags compulsory which again will drive the pressure sensor market further. [75]

ALL TERRITORIES Transport: Automotive:

(2017 estimate)

69

UK

GERMANY

70. Global Transport Scenarios 2050, World Energy Council (2010) 71. The Eddington Transport Study, The case for action: Sir Rod Eddington’s advice to Government (2006)

70



71

WITHIN LINKED SECTORS

BARRIERS TO BUILDING CAPABILITY

The main drivers in linked sectors for the transport and automotive markets include:

Once a company has overcome the barriers to entry and entered the market there are a few aspects of the transport and automotive sectors that may prevent them from capitalising.

l

l

Technology advances, especially low-power electronics and Energy Harvesting for increased lifetime and lower power vehicle monitoring. Increasing connectivity of sensor devices to the Internet. An increasingly connected world, methods for interconnecting transport systems will develop into more efficient travel networks.

l

Societal issues: Increasing levels of automation require a large step in acceptance for people to not be afraid of them - this may slow the potential market expansion.

l

The GPS is a satellite based navigation system made up of a network of 24 satellites placed into orbit by the U.S. Department of Defence. It is owned and maintained by the United States Government. This over reliance on a system with no back up could have ‘devastating effects’ if the system was disrupted [74].

l

Development of Digital Economy models that allow marketisation of distributed sensor data. For example, advertising space can be sold at a higher premium for areas where traffic is flowing slower.

l

Underpinning all of this is advanced sensor fusion and wireless communication: The IEEE Dedicated Short-Range Communication standard was designed specifically for ranges of up to 1 km at motorway speed. It has high data rates and low latency and is used for vehicle-to-vehicle communications and vehicle-to infrastructure communications.

l

Legal issues: who is liable if a self-driving car crashes? i.e. there are many linked industries which need to catch up to support this new transport infrastructure.

l

The new energy sources for cleaner transport infrastructure will require a regeneration of the supply chain; this adds a large element of risk to any small company entering.

The automotive sensor market [72] alone is expected to reach $33.6bn by 2022 at a CAGR of 7.8% and the volume of sensors is expected to reach 8,930 million units in 2022 from 2,965 million in 2012. Whilst the ITS market is expected to reach $24.8bn by 2017 at an estimated CAGR of 12% [73].

l

In the marine sector, there is a need to share capabilities between the major ship builders; the leisure sector and other supply chains.

l

In rail, innovation is hampered by the relative lack of processes and capabilities in clients and the supply chain to collaboratively bridge the gap between research and procurement.

BARRIERS TO ENTRY AND EXIT

l

Due to the size of many of these projects, UK companies can suffer due to the lack of facilities for demonstration and validation at scale and in real-world situations.

l

Lack of flexible, open access micro and nanotechnology centre with full portfolio of capabilities for general sensor development.

UK sensor companies may find difficulties entering the transport and automotive market due to a variety of reasons: l

Scale: the large scale of many fleets/networks mean that for startups the cost of providing technology on the scale required is not possible.

l

Collaboration: with reference to the patent landscape, for the transport sector; entry is restricted by the relatively insular and noncollaborative nature of the communities.

l

The highly structured nature of the pre-existing transport supply chain means that entry for new, small companies is likely to require partnership with major players in the industry. This is further compounded by the lack of collaboration discussed above.

72. Sensors Market For Automotive Applications 2012 – 2022, marketsandmarkets (2013) 73. Intelligent Transportation Systems (ITS) Market – Trends, Adoption & Worldwide Forecast by Systems and Applications (2012 – 2017) marketsandmarkets (2012)

OPPORTUNITIES IN THE UK There are a few specific UK opportunities for the UK sensor companies to capatilise on: l

The UK Government for (2012/13) spent £6bn on revenue spending which typically supports public transport services and £8bn on capital spending which relates to building new transport infrastructure. Transport for 2014 will be £19bn; various TSB strategies that are in place are shown in Table 14.

l

The UK is currently investing in new transport hubs and infrastructure in the coming decades. Much attention has been given to HS2 UK project that aims to provide a dedicated intercity passenger network. The proposed new airport on the Thames estuary may also offer business for UK companies.

l

The Transport Systems Catapult exists as one of seven Government centres set up through the £200m Catapult initiative. One such

74. http://www.raeng.org.uk/news/releases/shownews.htm?NewsID=633

72


project underway is the low carbon urban transport zone (LUTZ) innovating driverless cars for cost-efficient and effective movement of people around cities. The Catapult has already begun a project involving Cambridge and Oxford Universities and engineering firm Arup into developing driverless cars in Milton Keynes [75]. l

l

l

Integrated Test Environment The UK has a large number of world-class test facilities that focus on individual transport modes, including – Old Dalby Test Track (Rail), MIRA (Road), Millbrook Proving Ground (Road), Southampton Test Tank (Marine). The ITE will deliver a physical environment located with the Transport Catapult that will provide a platform to enable the combination of outputs, and data analysis from multiple physical test facilities across UK transport [76]. The Satellite Applications Catapult: Transport currently represents 14% of global communications revenue and from an ITS perspective, transport is expected to comprise approximately 55% of cumulative GNSS revenues from 2010 – 2020 (54% road, 1.0% maritime and 0.5% aviation) Tax breaks: Aerospace companies are also eligible for tax breaks which amounted to $173m in 2008. From Ref. [77] Examples of generic eligible activities: o

Development, ground trials and demonstration testing of prototype aircraft, helicopter, warships, ground vehicles, aircraft or equipment

o

Integration of existing equipment with platforms that it has not previously been fitted.

It has been reported however, that many companies do not take advantage of this opportunity.

75. http://www.bbc.co.uk/news/uk-england-beds-bucks-herts-24849948 76. https://ts.catapult.org.uk/integrated-test-environment 77. http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Services/Tax/Research%20 and%20development/UK_Tax_RD_AerospaceDefence_Dec.pdf


73

Table 14. Current and proposed TSB initiatives 2014/2015

CHALLENGE

ACTION

TIMING & BUDGET

Transport Systems Catapult: Provide a world-class centre of expertise in transport systems to support the rapid commercialization of cutting-edge technologies with the potential to have a global impact. https://ts.catapult.org.uk/integratedtest-environment

Catapult

Q2 – Q4 Up to £10m

Aerospace III: Further accelerate innovation in the aerospace supply chain to ensure the UK is positioned to support future aerospace programmes

Collaborative R&D competition

Q1 Up to £5m

Integrated Delivery Programme 10: Development of advanced technologies to support the low carbon vehicles agenda and the growth of SMEs and enhanced opportunities within the UK supply chain


Q2 Up to £10m and significant cofunding

Niche vehicle research and development: Support UK SMEs engaged in the ‘high-value’ niche vehicle sector, developing and extending their networks, working with larger and more established automotive supply chain partners. Managed by the Niche Vehicle Network


Q2 Up to £1m

Optimising vessel passage through enhanced human/machine interface: Operational costs and fuel efficiency (and therefore reduced emissions) can be aided by advanced information


Q3 Up to £3m

Maritime technologies (MARTEC): Support UK businesses to take their technologies to a new market and help them work in new Europe-wide collaborations.

EU competition

Q2 Up to £1m

74


OPPORTUNITIES IN THE UK AND OVERSEAS As part of Horizon 2020, the EU flagship funding effort, the recently published Work Programme has detailed where the priority areas are. The specific objective of the Transport Challenge: Smart, green and integrated transport … to achieve a European transport system that is resource-efficient, climate- and environmentally-friendly, safe and seamless for the benefit of all citizens, the economy and society [78] The mention of integrated transport highlights the use of networking in transport systems, implicitly linked with wireless sensor devices. Also from the Horizon 2020 specific programme, the need for sensor technologies in aviation, rail, road and marine are clear from the lines (highlighted in italic): a. Resource efficient transport that respects the environment and public health b. Better mobility and accessibility, less congestion, more safety and security c. Global leadership for the European transport industry d. Socio-economic and behavioral research and forward looking activities for policy making


75

CAPACITY TO RESPOND TO OPPORTUNITIES Acoustic / Ultrasonic

38

Chemical / Gas

38 35

Electric / Magnetic

41

Flow / Viscosity / level / pH

39


Humidity / Moisture

54

Optical 21

EM

57


61


Pressure

68

IR / Thermal / Temperature Bio-sensor / Bio-sensing 3 Audio 10

Radiation

Figure 26. Technology breakdown for UK automotive sensor companies

LIMITING FACTORS AROUND AVAILABLE OPPORTUNITIES The automotive sensor market is poised to grow due to the above driving factors, however there continues to be some restraint to the growth. l

Political events and redirection of funding: particularly relevant for large projects (such as HS2) take the emphasis away from certain forms of travel. The recent flooding events in the UK has called for a diversion of money away from step-change transport investment and into maintaining our legacy infrastructure which has proved, in some parts of the country, unfit for purpose.

l

Social obstacles: do people want to be driven around by automated vehicles? What are the safety implications?

l

Large-scale objective: the challenges for an integrated transport system do not have quick solutions – and therefore transcend many Governmental terms thus the benefits may not be appreciated from the start.

Destruction of supply chains the closure of shipyards across the UK disperses the vital members of the supply chain, which have been built over many decades of shipbuilding. There is also concern that the UK lacks young people with expertise in these practical areas, meaning the future reestablishment of the supply chain to previous capacity may be very difficult, potentially impossible.

7


17

Chemical / Gas 4

Electric / Magnetic

13

Flow / Viscosity / level / pH 5

Force / Load / Torque / Strain

6

Humidity / Moisture

15

Optical 7

EM

15

Motion / Velocity / Displacement / Acceleration / Vibration

16


Pressure

21

IR / Thermal / Temperature Bio-sensor / Bio-sensing 1 Audio Radiation

2 4

Figure 27. Technology breakdown for UK transport (not automotive) sensor companies 78. Horizon 2020 Transport Challenge Work Programme 2014 – 2015 (Draft 24/06/2013)

76



77

The non-automotive UK sensor companies are perhaps less active in the “physical” contact measurands of force, torque, electric and magnetic but more in the larger scale monitoring technologies, such as IR, proximity and optical sensing and interestingly well represented in the chemical and gas technologies which perhaps echoes the transport industries trends towards cleaner emissions and more efficient engines. The increasing trend towards MEMs technology is made possible by the UK capability to process 75 – 200 mm wafers and post-processing CMOS with MEMs (Ref. 3) and fabrication centres with modern clean rooms and expertise to develop complete systems, e.g. ATC, Semefab, Southampton Nanofabrication Centre [79].


Given the sensor technologies involved in the up-and-coming ITS sector and with reference to Figure 27, the UK is in a good position to respond to the challenges. With a healthy community working in detection for novel situation awareness technologies (optical, IR, thermal, presence, proximity), in-vehicle monitoring technologies (gas, temperature, force and motion) the UK can capitalise on the opportunities in-vehicle intelligent transport systems will bring. In terms of traffic sensing, signaling and management and position and attitude sensing the UK can advance with network capable sensing technologies that will receive funding through various initiatives that realize the potential in networked sensors.

Suggestions include:

However, it should be noted that the BIS identified weakness of ICT [1] will stifle growth in this area. The concepts of integrated transport systems are synonymous with distributed wireless sensor platform and collective decision making – none of this is possible without a good engagement of the sensor developers and integrators with groups in the UK involved in data science, uncertainty management and algorithms for pattern recognition.

The transport and automotive sensor sectors are very likely to maintain their growth due to societal changes and Government led initiatives. The advent of ITS in transport will require the engagement of previously untapped communities, SMEs in networking, ICT companies in decision making and sensor developers in new imaging techniques. There is already good Central support for this area, but to ensure that UK companies can make the most of the opportunities, there are few suggested actions. 1. Whilst there are many funding opportunities both UK and international in origin, the number of opportunities could be confusing to SMEs; this confusion coupled with the very well established supply chain which often requires partnership with multinationals to enter the market can be daunting for SMEs. It is suggested that there should be dedicated support for sensor and instrumentation companies who wish to engage in the transport and automotive sector. 2. Due to the size of many of these projects, UK companies can suffer due to the lack of facilities for demonstration at real-world situations. Support of the ITE by the Transport System Catapult should help promote its capabilities for large-scale demonstration of new technologies. 3. The relative lack of processes and capabilities in the rail supply chain hampers innovation. Work is needed to bridge the gap between research and procurement through better engagement of all stages of the supply chain. 4. The size of these projects require micro and nano fabrication facilities who are open-access and can provide a full portfolio of capabilities for sensor development. 5. The uncertainty of a new, disruptive, green automotive supply chain may cause hesitation in investing in technologies based on older principles. Careful consideration of how this disruptive step change will affect the existing, strong supply chain should be made. 6. Early appreciation of the input industrial mathematics will have on the ITS should be made. 7. The over-reliance of current transport systems on US owned GPS satellite systems should be addressed to minimise the risk associated with this dependency. 8. Some efforts to alleviate uncertainty in the next generation of driverless vehicles should be investigated.

79. http://www.southampton-nanofab.com

78


SWOT ANALYSIS FOR THE TRANSPORT AND AUTOMOTIVE MARKET Table 15. SWOT analysis for the UK transport and automotive sensor market

HELPFUL

HARMFUL


TH NG

o

In rail, innovation is hampered by the relative lack of processes and capabilities in clients and the supply chain to collaboratively bridge the gap between research and procurement.

o

Due to the size of many of these projects, UK companies can suffer due to the lack of facilities for demonstration and validation at scale and in realworld situations.

o

Lack of flexible, open access micro – and nano technology centre with full portfolio of capabilities for general sensor development.

o

Uncertainty in disruptive green technology will require a rejuvenation of the supply chain.

UK ability to process 75 – 200mm wafers and postprocessing CMOS with MEMs.

S

INTERNAL ORIGIN

ST

RE

In the marine sector, there is a lack of sharing capabilities between the major ship builders; the leisure sector and other supply chains.

SE

o

Can benefit from having three TSB Catapults aligned with its goals – satellite applications, HVM and transport systems.

o

The US owned and maintained GPS is over relied on with no back up - could have ‘devastating effects’ if the system was disrupted.

o

Creation of the ITE to provide a physical environment for the testing of sensor equipment for rail, maritime and aerospace.

o

Who is liable if a self-driving car crashes? i.e. there are many linked industries which need to catch up to support this new transport infrastructure.

o

Increasing levels of automation require a large step in acceptance for people to not be afraid of them. This could prevent the market expanding as large as it could.

RE

AT S ES

TI

NI

U RT

TH


o

ES

o

PO

EXTERNAL ORIGIN

Very well established supply chain requires SMEs to partner with multinational to enter market.

KN

Investment in new transport hubs will prompt next generation technologies.

OP


o

EA

o

W

S


80


SENSORS FOR THE AEROSPACE SECTOR

81


£6.9


39,900 EMPLOYED IN AEROSPACE COMMUNITY

6,400 PATENTS IN LAST 10 YEARS

82



BASIC STATISTICS The aerospace sensor market covers systems directly related to aerospace sensing and detection technologies. The aerospace market is a UK strength, but despite its large size - it is not immune to events such as global recession and spending cuts. It does however have the advantage of being a very well established, trusted, integrated industry that enjoys very good cooperation across the private sector and Government institutions via various Government led initiatives. The global aerospace industry generated revenues of approximately $382bn in 2009 which is split between the civil aerospace sector (CAS) and the military aerospace sector (MAS). Of this total revenue, the global MAS accounts for approximately 54%, while the CAS constitutes the remaining 46%. With the continued focus on the rising threat of global terrorism, the MAS is steadily growing and remains a lucrative market for existing players due to high barriers to entry for new unknowns. In contrast, the CAS is beginning to see an improvement in passenger traffic as the developed countries begin to emerge from the recent financial crisis [80].

Civil Export 19%

Civil Domestic


83

practically 50:50. The industry is a large employer in the UK and adds approximately 230,000 jobs, both people directly and indirectly to the economy [83]. Over 3,000 companies employing around 230,000 people (direct and indirect) – With a 17% global market share, the UK’s civil aerospace industry is the largest in Europe and second largest in the World … Contributes £11.4bn to UK’s GDP – UK Aerospace revenue was £24.2bn in 2011, a real terms increase of 2.5% compared with 2010… Every 2.5 seconds an aircraft takes off or lands, powered by a Rolls-Royce engine… Potential growth by 2031 for civil aerospace market is in excess of $4.4 trillion [84,85,86] For the aerospace sector, the sensor technologies involved are diverse, as such the requirements and challenges of the aerospace sensor market will be discussed. Due to the split definition of aerospace into MAS and CAS, there is a strong overlap with defence. For example, the requirement for intelligent sensors for surveillance purposes on unmanned air vehicles (UAVs) [87]. However, for this section we define an aerospace sensor as any sensor technology required for the operation of an air vehicle. As such there is a priority on safety, reliability, redundancy, harsh operating environments and as the end product is of high-value it doesn’t suffer from the requirement of having to be made for minimal costs – its reliability etc. are far more important factors.

Defence Export 43%

Defence Domestic

32%

6%

Figure 28. Breakdown of UK aerospace £ 24.2 billion turnover (2012) (Adapted from Ref. 88)

In the UK, aerospace remains a growing sector, unlike many parts of the UK manufacturing base [81]. There is a detailed analysis of the UK aerospace landscape by the trade association ADS in Ref 82 - but in summary, UK aerospace revenue totaled £24.2bn in 2011, representing a 4.7% increase over the previous year. Real growth of civil aerospace revenue increased by 5.1% over 2010 whilst defence aerospace, in a difficult year, produced no real growth at all. In the UK due to this increase in civil aerospace, the split between defence and civil is 80. Global Aerospace Market Outlook and Forecast, Deloitte (2010) 81. UK Aerospace Technology An Evolution 82. UK Aerospace Survey 2012, ADS Group (2012)

83. Likely to be some overlap between defence and aerospace 84. The Future of Civil Aerospace, A Study on the Outlook for the UK Civil Aerospace Manufacturing Sector, KPMG and ADS report, June 2013 85. The Aerospace Industry – House of Commons 86. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/225327/aerospace-sector_infographic.pdf 87. The University of Manchester, Aerospace Research Institute, Sensor Technologies.

84



85

Table 16. Overview of current challenges and technologies in the aerospace sensor market

CHALLENGE

SENSOR TECHNOLOGY

1

The importance of on-site processing for real-time intelligence, increasing the generation of information not just data.

l    Integrated processing technology

2

Non-contact sensors for the evaluation of aerospace materials, fatigue testing.

l    Ultrasound l    X-ray

Monitoring of aircraft and engine control systems.

l    l    l    l    l    l    l    l    l    l    l    l    l   

Torque sensors Position Temperature Rotation Oil and fuel monitoring Flow Pressure Air speed Vibration Blade tip clearance sensors Leading edge piezoelectric Accelerometers Fibre optics

Sensing technologies for in-aircraft applications to monitor efficiency, safety and the environment of a vehicle.

l    l    l    l    l    l   

Temperature Rotation Position Chemical sensing Weather sensing Ash detection

7

Technologies that monitor and relay information to the pilot.

l    l    l    l    l    l   

GPS Radio communication Level meters Temperatures, Pressures Ice detection

8

The measurement of fire conditions aboard aircraft and spacecraft.

l    Gas monitoring, CO, CO2, O2, H2 / HxCy

8

The ability to monitor the external environment from within the plane for situation awareness.

l    RADAR / LIDAR l    CCD / CMOS

Technologies for understanding a vehicles position / attitude.

l    l    l    l    l   

3

6

9

GPS Scanning DME VORs IRS INS

10

Reliable operation in harsh conditions, for example: extreme temperatures, G-force, vibration, high pressure.

l    MEMS l    Disruptive material technology

11

SWAP challenges. Unique challenges for aerospace sensors Size: for covert operations, sensor systems should be discrete. Weight: heavier equipment needs more fuel, which is more money Power: again power consumption is linked to the fuel consumption

l    MEMS l    Energy harvesting technologies l    Disruptive technologies in material science.

EMPLOYMENT From the ESP Community cohort study [4], we can estimate the number of people employed in sensor companies involved in the aerospace (and defence) sector to be approximately 39,900 [88].

PRODUCTIVITY In UK aerospace, the productivity per employee is estimated to be approximately £240,000 [89]. Whereas the productivity of the aerospace and defence sensor sector is estimated as £6.9bn into the 39,900 employees in it, £173,000 – significantly less than the aerospace figure suggesting that whilst the productivity for aerospace and defence sensors is higher than that of the entire sensor community (£161,000), it can be inferred that the high GVA in the aerospace industry does not arise from the sensor technology.

TRADE From the 2013 cohort study of the commercial sensors and instrumentation community of the UK working in the aerospace and defence sector, the UK turnover for companies is approximately £3.1bn and a non-UK turnover of £3.7bn contributing a total of £6.9bn to the UK economy [4]. As a fraction of the total UK aerospace revenue the sensor industry amounts 31.2% (likely to be an overestimate due to the inclusion of other defence sensing technologies).

INNOVATION Innovation in the aerospace sectors can be quantified by a number of different qualifiers shown below: •

Patenting results: the UK applicants for patents only appear in the list of top 20 applicants worldwide in the aerospace sector. Figure 28 shows the patent publication country coverage for aerospace indicating a UK position of fourth behind France, Germany and the USA. Figure 29 shows the patent landscape for aerospace sensors, with three UK companies (Airbus, BAE Systems and Rolls-Royce added to it) well distributed over the landscape. The high frequency areas currently being patented within this data subset involve fuelsensing systems within aircraft wings and fuel valves controlled by sensors [15].

•

A number of industry/university collaborative schemes exist to allow the knowledge transfer from industry to academia and vice versa. Rolls Royce invested in 19 University Technology Centres at 14 UK Universities, Ref [90]. In addition to these, the UK hosts a number of academic institutions dedicated to aerospace research (see Table 23 in Annex 2 for a list).

•

In the aerospace industry, the UK is investing 12.4% of its turnover back into R&D (amounting to £1.83bn), this is second only to the USA (Ref. 88).

88. This figure is from sensor companies identifying themselves as belonging to either aerospace and defence or sector. Due to the grouping of the sectors in the questionnaire aerospace is combined with defence. 89. Derived in Ref. 88, using the 2011 figures for revenue, orders, R&D expenditure and workforce. 90. http://www.rolls-royce.com/about/technology/uni_research_centres/key_academic_partnerships.jsp

86


Other 13%

France UK

9% 61%

5%

Germany Japan

9% 3%

USA

Figure 29. Aerospace UK Innovation - publication country coverage

Figure 30. Aerospace UK Innovation landscape


87

aerospace sensor technologies will be summarised. Following that will be a consideration of the sensing technology where innovation is likely to happen given recent trends. The sensor industry is typified by the concepts of reliability, harsh working environments and redundancy, for example an aircraft flight management system (FMS) will have various types as well as multiple sensors for position determination. As a general example of the current position and trends of sensing technologies in MAS and CAS, the market for MEMS pressure sensors is briefly discussed, adapted from Ref [91]. MEMS pressure sensors in MAS and CAS have extensive applications; these include air data systems, environment and cabin pressure, hydraulic systems in airframes, engines and auxiliary power units and many other applications. Altogether, the number of pressure sensors employed in aircrafts, jets, turboprops and helicopters can be significant - a large jet, for instance, needs as many as 130 sensors. For engines and other harsh places, as many as 13 engine pressure sensors and switches will be found in a luxury airliner, while smaller jets will typically have six to seven sensors. An additional five or six transducers are needed for the so-called full authority digital engine control or FADEC—an electronic engine controller and related accessories that receive and analyze multiple variables, including air density and engine temperature, for any given flight condition. The MEMS revenue for pressure sensors in the high-value MAS and CAS was expected to reach $35.7m by the end of 2012, up 20% from $29.7m in 2011. The market is expected to grow steadily in the next few years, shown in Figure 31 because very few other devices can withstand the sort of extreme operating environment in which the sensors are used.

2011 2012 2013 2014 2015 2016

$29 $36 $40 $43 $45 $46

Figure 31. Worldwide High-Value MEMS Pressure Sensor Forecast for MAS and CAS (Millions of US Dollars)

CURRENT POSITION AND RECENT TRENDS In this section, the current position both globally and in the UK of

Recent trends in aerospace and defence sensor technologies will be themed around the technological challenges surrounding “sense and avoid” scenarios. A very recent example of this is an easyJet, Airbus and Nicarnica Aviation collaboration into AVOID technology which detects invisible ash particles from volcanic eruption which can damage 91. Applications for MEMS Pressure Sensing in Military and Aerospace, iHS (2012)

88



89

planes [92]. An increasing population will require a heavier burden on civil aerospace (intelligent systems to manage this are detailed in the transport & automotive section) resulting in aerospace becoming more congested and cluttered. Current technologies for addressing this trend are routed in the intelligent transport initiatives and utilize technology such as RADAR, LIDAR, and microwave. Shared with defence and security will be the advent of UAVs, this has seen aerospace become populated by unmanned devices which could potentially be applied into civil aerospace [93]. The UK community of sectors for aerospace is largely equal throughout the supply chain – perhaps slightly favouring sensor instrumentation (Figure 35 (b)), there is a healthy population of basic sensor manufacture through system integration to instrumentation and services giving credit to the high success of the UK aerospace industry.

Aberdeen

HOW IT FITS INTO UK ECONOMY METRICS AS % OF UK

Edinburgh

Table 17. Metrics as % of UK economy for the aerospace sensor sector

EMPLOYMENT

39,900 in 29.84m [96] employees in the UK represents 0.16%

TRADE

£6.9bn ($11.10bn) turnover in $2.44 trillion [97] is 0.50%

INNOVATION

Glasgow

Belfast

Teeside

Aerospace: 6,400 patents (approximately) Leeds Preston

9495

Brough Doncaster

Stockport Chester

LOCATION/CLUSTERING Figure 32 (a) shows the geographical location of the major UK aerospace centres whilst Figure 32 (b) shows the location UK sensor companies operating in the aerospace sector. There are several large cluster regions of sensor companies around London and in the Southeast, geographically distant from the main aerospace hub, located in the Northwest of the country - home to the industries’ two largest firms, Rolls-Royce and BAE systems. It is interesting to note that given the large population of aerospace manufacturers in the North-West – there is a distinct lack of sensor companies working in that region. This comparison of spreads is shown in Figure 33.

Lincoln

Derby Leicester

Coventry

Northampton

Cambridge

Hereford Cheltenham Newport Bristol Slough Cardiff Taunton LOCATION OF THE 161 IDENTIFIED SENSOR COMPANIES WORKING IN THE AEROSPACE SECTOR LOCATION OF THE MAJOR AEROSPACE INDUSTRIES IN THE UK

92. http://www.airbus.com/newsevents/news-events-single/detail/easyjet-airbus-and-nicarnica-aviation-successfullycreate-first-ever-significant-artificial-ash-clo/ 93. http://uk.news.yahoo.com/pilotless-passenger-planes-to-take-first-test-flights-over-uk-143538850.html#ToUKgZh 94. Statistical Bulletin: Labour Market Statistics, September 2013. 95. http://www.google.com/search?q=uk+GDP&ie=UTF-8&sa=Search&channel=fe&client=browser-ubuntu&hl=en

Manchester

Stevenage London

Guildford Andover Portsmouth Bournemouth

Colchester

Crawley

Canterbury

Brighton

Plymouth

Figure 32. (a) Location of the major aerospace industries in the UK (b) Location of the 161 identified sensor companies working in the aerospace sector

90


East Midlands


91

2 7 Machine Vision

East Anglia

22

London

Telecomms Software/data

5

Retail

Northern Ireland 7

Transportation

3 6

Space and E-O

2

9% 4%

15%

3% 2% 3%

Security

8

Medical / Healthcare

Wales

Research, Laboratories and testing

West Midlands

395 485

2

Industrial Processes and manufacturing Consumer products and Home appliances

4 4 3

3%

IT infrastructure

5


12%

Agriculture

44

South West

North East

4%

Pharma/chemical

South East

Scotland

4% 2% 3%

3%

4%

14% 10%

4%

Environment

Aerospace Hub Aerospace Sensor Companies

Figure 33. Regional location of UK aerospace companies

Energy and networks Building and infrastructure Automotive Aerospace and Defence

SPILLOVER Spillover into other technology areas includes industrial processes, automotive, energy and networks which are probably unsurprising due to their high manufacturing tolerances related to these sectors. An area notable by its absence is any real capability in the space and earth observation markets closely linked with aerospace. The UK Space Agency [96] contributes £9.1bn a year to the UK economy and directly employs 28,900 people. Analysis from Ref. 4 indicates that only 1% of the cohort declare their interests in space and earth observation (Figure 3) – however when the cohort is analysed in terms of the turnover by application sector (Figure 35) a hugely disparate proportion of 14% is evident. Closer inspection reveals that it is one or two companies responsible for the large turnover in the space and earth observation sensor sector. Given the huge revenues available in this sector it is perhaps timely that the Satellite Application Catapult has been launched by the TSB to better integrate the supply chain and achieve the Government objective of the UK holding 10% of the Global market in space technologies by 2030 [97,98].

96. http://www.bis.gov.uk/ukspaceagency 97. https://sa.catapult.org.uk/home 98. A UK Space Innovation and Growth Strategy 2010 to 2030, Space IGS (2010)

Figure 34. UK Sensor company turnover by application sector

92


93

RANKING BY KEY METRICS AGAINST REST OF THE WORLD OR MAIN COMPETITOR COUNTRIES

COMPETITION ANALYSIS DESCRIPTION OF MARKET PLAYERS/MARKET SHARE In the UK, the aerospace sector has an even share between civil and military i.e. the split between defence and civil revenue was close to 50:50 [86]. Globally, in terms of innovation (patents) the main players are Boeing (USA), Airbus (Germany / France / UK / Spain) with BAE systems making it in at number eight and Rolls-Royce in at number fourteen. Many of the top five companies have UK facilities suggesting that because the UK has the second largest aerospace exporter in the World that integration with UK developers is financially beneficial. The large players for the UK for innovation are Airbus, BAE, Rolls-Royce, Goodrich UK, QinetiQ. In terms of revenue, the UKs biggest players in the aerospace and defence sensor arena are QinetiQ, Selex, Ultra Electronic PMES, Astrium, TT Electronics, BAE, Honeywell, Goodrich, e2v and Meggit – these top 10 companies account for 81% of the total aerospace and defence sensor turnover. This dominance of the top 10 players is reflected in Figure 35 (a), which shows nearly ¾ of the sensor companies are medium to large sized businesses. Interestingly, when compared to the defence and security company size chart (Figure 14 (a)), there are almost twice as many large companies, highlighting the well-established nature of the aerospace sector. Table 18 attempts to draw comparison of market sizes and innovation metrics for the UK and key competitor countries from public domain data if available. 10% 21%

28%


26% 16%

29% 24% 46%

Large > 250

Services

Medium 51 - 250

Instrumentation

Small 11- 50

Sub-systems

Micro < 10

Sensors

Figure 35. (a) Size of the companies in the aerospace sensor market and (b) Shape of the supply chain

Table 18. Key metrics for market size and patents normalized to regional workforce

2012 MARKET ($ BN)

PATENTS


ALL TERRITORIES Aerospace

NA

128,089

0.0042%

UK Aerospace

10.2

6,400

0.0214%

USA Aerospace

NA

78,100

0.0547%

94



95

EXPECTATIONS/FUTURE GROWTH POTENTIAL (SHORT, MEDIUM AND LONG TERM)

•

In the aerospace industry, innovation is often incremental, not disruptive, due to the long development and testing times needed.

DRIVERS WITHIN THE SECTOR

•

Collaboration: with reference to the patent landscape (Figure 30), for the aerospace sectors entry is restricted by the relatively insular and non-cooperative nature of the collaborations landscape i.e. approximately 5 super clusters of collaboration.

•

The highly structured nature of the pre-existing aerospace supply chain means that entry for new, small companies is likely to require partnership with major players in the industry.

The main drivers for growth in the aerospace sector are: •

•

•

Industrial sector: a growing UK industrial base requiring commercial and industrial aviation fleets and smart aerospace monitoring. This sector continues to grow and the aerospace market will grow with it – similar to the transport market. Civil aviation: driven by a growing population who require an everincreasing commercial airline fleet [99]. This driver will maintain the industrial need for aerospace sensors. The growing challenge of a more crowded airspace will be a long-term, important challenge for civil and military aviation authorities. Reactionary drivers to aviation events will periodically increase the need for sensors for passenger safety – these will be important investment areas due to recent high profile incidences. Military aviation: As global warfare becomes more complex, the technologies to detect and combat it require innovation. In particular UAVs; advanced sensors will be required for navigation and pilotage to enable UAVs to operate in the same airspace as manned aircraft. Global information networks will allow sensors to be networked, which when coupled with novel data fusion algorithms, will provide a capability that is greater than the sum of the parts.

WITHIN LINKED SECTORS The main drivers in linked sectors for the aerospace, defence and security markets include: •

Environmental sector: global climate change are medium and long term drivers [100], monitoring of CO2 with smart emission sensors may be required as regulation standards (see transport section)

•

Material science: new materials leading to more efficient composite materials for excellent functionality in the harsh conditions needed for airspace sensor technologies.

BARRIERS TO ENTRY AND EXIT UK sensor companies may find difficulties entering the aerospace market due to a variety of reasons, many similar to the transport and automotive: •

BARRIERS TO BUILDING CAPABILITY Constraints to sector growth are: •

Volatility of fuel price and the availability of aircraft financing could cause all members of the aerospace supply chain concern and be an off-putting factor for SMEs wishing to enter the market.

•

Given the strength of order backlog at Boeing and Airbus, concern remains over the ability of the supply chain to ramp up to meet increasing production rates.

•

For the military sector, uncertainty caused by budget cuts, programme delays and cancellations remain.

OPPORTUNITIES IN THE UK The global CAS market could see demand for around 27,000 new aircraft and 40,000 new rotorcraft amounting to £2.8 (US $4.5) trillion market by 2031, with the UK currently holding a 17% market share of the Global aviation industry, the UK manufacturing chain are in a good position to be involved [88]. The UK Government has significant influence over the UK aerospace industry due to the large amounts of purchases it makes in the MAS. The Government - who recognised that as the prime contractor they are in best position to help - has addressed many of the constraints and difficulties for UK businesses. Government realising its responsibility as the prime customer in MAS and the economic benefits in CAS have developed various schemes though grants or centres to help the route for SMEs into the large contract projects that dominate the market: •

Aerospace Technology Institute: Creation of the Aerospace Technology Institute (ATI) – representing joint Government and Industry funding of £2bn over the next seven years providing stability and assurance for investment in technologies which will deliver UK growth. This strategy is elevating the UK as a desirable market to base operations or distribution sites for global aerospace.

•

Tax breaks: Aerospace companies are also eligible for tax breaks which amounted to $173m in 2008. From Ref. [101] - examples of generic eligible activities:

Start-up costs: As aerospace equipment is often highly complex, aerospace equipment contractors tend to go through Prime Contractors such as QinetiQ, Rolls Royce, BAE Systems etc.

99. Boeing has estimated that the number of airplanes in serve from 2012 – 2032 will double from approximately 20,000 to 41,000 http://www.boeing.com/boeing/commercial/cmo/ 100. The global aviation industry produces around 2 % of all human-induced carbon dioxide emissions. http://www. atag.org/facts-and-figures.html

101. http://www.deloitte.com/assets/Dcom-UnitedKingdom/Local%20Assets/Documents/Services/Tax/Research%20 and%20development/UK_Tax_RD_AerospaceDefence_Dec.pdf

96


• Development, ground trials and demonstration testing of prototype aircraft, helicopter, warships, ground vehicles, aircraft or equipment. • Integration of existing equipment with platforms which it has bot previously been fitted. It has been reported however, that many companies do not take advantage of this opportunity. •

The Space Growth Action Plan outlines suggestions for how the UK can become a successful player in the space industry. Given the UK experience with high value aerospace engineering, the report pursues a “10% (cut) of the expected £400bn global space-enabled market… by 2030”. A successful UK market for this will require a self-sustaining supply chain engaged with SMEs and not a reliance on a few major players. Opportunities here are listed in the Action Table in the plan and involve engaging with the TSB, UKTI, ESA, Satellite Applications Catapult, Met Office and many others [102].

OPPORTUNITIES IN THE UK AND OVERSEAS •

AGP: The Aerospace Growth Partnership (AGP) [103], - the aim of the Aerospace Growth Partnership is to:

Ensure that the UK remains Europe’s number one aerospace manufacturer and that it remains second only to the United States globally. This is an ambitious and challenging goal, given intensifying international competition and the rapid pace of innovation in the sector Support UK companies at all levels of the supply chain to broaden and diversify their global customer base. This will be critical given the entry into the market of new manufacturers of large civil aircraft across the world Provide long-term certainty and stability to encourage industry to develop the technologies for the next generation of aircraft in the UK. To this end, Government and industry have agreed to fund jointly the creation of a UK Aerospace Technology Institute. This brings the opportunity to secure up to 115,000 jobs in aerospace and its supply chain in the long term. •

Horizon2020: Aerospace and aviation research will sit within the “Transport” pillar of Horizon2020, which itself is part of the Societal Challenge area of the programme. Although no specific aerospace budget will be allocated, the budget for Transport (assuming €70.2bn total for Horizon 2020) is €5.6bn at this time – circa 40% increase compared to FP7. The current assumption is that Aeronautics/ Aviation will receive 45% of the Transport budget (based on what was received in FP7), equating to €2.6bn of grant funding [104].

102. Space Innovation and Growth Strategy, Space Growth Action Plan 2014 - 2030 103. Lifting Off- Implementing the Strategic Vision for UK Aerospace, HM Government (2013) 104. https://www.adsgroup.org.uk/pages/48182314.asp


97

LIMITING FACTORS AROUND AVAILABLE OPPORTUNITIES Aerospace is a slow-moving industry where innovation is incremental rather than disruptive and adoption of the new technologies is only possible when they reach maturity. This situation makes it difficult for SMEs because the longer adoption cycle and therefore higher development costs have serious implications on cash flow – a huge consideration for SMEs. Aerospace is also a very concentrated sector dominated by large companies - smaller innovative companies finding a place in the aerospace supply chain can be a difficult task.

CAPACITY TO RESPOND TO OPPORTUNITIES The UK is one of the world leaders in aerospace R&D. This sector enjoys unparalleled Government intervention and collaboration, stimulating excellent growth in novel sensing technologies. Through various Government / industry links there is good ability to respond to the available opportunities. The technical challenges for the future of aerospace are similar to those of defence and security – situation awareness – and with reference to Figure 36, the relevant technologies (IR and optical) are well covered by the UK sensor technology base. The importance of reliable and rugged sensing technologies poses a challenge that can be answered with MEMs technology, combining microlithography and novel material science – both of which the UK is capable of. BIS however, identified nanotechnology as a weakness, this has been somewhat countered by national fabrication facilities. The Semefab facility, the Advanced Technology Centre (ATC) and the Southampton nanofabrication centre, for example, are ideal for the low number production of niche sensor devices required by the market (low number relative to ICT market etc.). The high revenue space and earth observation sector of aerospace sensing is not well distributed across the community, rather it is held by a small few companies – many of which are not UK-based. If the UK is to compete in this area it must diversify its efforts across the supply chain. Having said that, the sensing technologies involved in space and earth technologies are optical, thermal, IR type sensors, which have a good base in the UK. It is hoped that central Government initiatives such as the SA Catapult will help to integrate the supply chain for UK growth in this area.

98


Chemical / Gas

31

Electric / Magnetic

31

36


Humidity / Moisture

50

Optical 20

EM

48


Specific suggestions from Ref. [101] include:

51


Pressure

72

IR / Thermal / Temperature 22

Bio-sensor / Bio-sensing Radiation

There are tools, which the government could use to support innovation in the aerospace sector. One example would be the National Aerospace Technology Exploitation Programme (NATEP). NATEP is aimed at small and medium sized suppliers to help them develop their own innovative technologies to increase their ability to win new business with higher tier companies worldwide. Funded with £23m from the Advanced Manufacturing Supply Chain Initiative (AMSCI) and approximately £17m from partners, the programme aims to support the development of at least 100 new technologies in the aerospace supply chain.

40

Flow / Viscosity / level / pH

5 12

Figure 36. UK Aerospace sensors by technology type

99


38


Audio


1. The establishment of a National Space Technology Strategy (NSTS) with funding in addition to that of research councils and ESA. It should be owned by the National Space Technology Steering Group (NSTGG) and facilitated through the Space sector of the Knowledge Transfer. 2. There are many facilities in the UK that exist for testing, see Table 23 in Annexe 2. Some promotion of the available facilities would be of use to Sensor and Instrumentation companies to conduct trials. 3. The size of these projects require micro and nano fabrication facilities who are open-access and can provide a full portfolio of capabilities for sensor development. Effort is required to ensure that these facilities are meeting the demands of this sector and are easily accessible by those who need them.

100


SWOT ANALYSIS FOR THE UK AEROSPACE SENSOR MARKET Table 19. SWOT analysis for the UK aerospace sensor market

HELPFUL

HARMFUL



o

Strong Government and industry links through the AGP for aviation

o

Creation of the ITE to provide a physical environment for the testing of sensor equipment for rail, maritime and aerospace.

o

Government commitment to UK holding 10% of Global space technology market.

o

Can benefit from having three TSB Catapults aligned with its goals – satellite applications, HVM and transport systems.

o

Lack of flexible, open access micro and nano technology centre with full portfolio of capabilities for general sensor development.

o

Small sensor community in the lucrative sector of space and Earth observation.

o

Uncertainty in disruptive green technology will require a rejuvenation of the supply chain.

o

Increasing levels of automation require a large step in acceptance for people to not be afraid of them. This could prevent the market expanding as large as it could.

o

Relatively insular collaboration map for aerospace sensors.

o

Uncertainty if the supply chain can ramp up production to fill back log of planes.

o

Budget cuts for military aerospace can threaten linked CAS.

Horizon 2020 Transport Challenge.

o

ES

TI

I UN RT

AT S

Good established industry/academic partnerships for aerospace.

Due to the size of many of these projects, UK companies can suffer due to the lack of facilities for demonstration and validation at scale and in real-world situations.

RE

o

o

TH

RE ST

INTERNAL ORIGIN


Ability to process 75 – 200mm wafers and postprocessing CMOS with MEMs.

PO

EXTERNAL ORIGIN

o

OP


Established Global profile in Aerospace technologies.

Very well established supply chain requires SMEs to partner with multinational to enter market.

S

o

o

SE

Investment in new transport hubs will prompt next generation technologies.

ES

KN

NG

EA

TH

S

W

o

102


LIST OF ACRONYMS

103

ACRONYMS & ANNEXES

104

LIST OF ACRONYMS


LIST OF ACRONYMS

105

3D

Three- Dimensional

DME

Distance Measuring Equipment

4G

Fourth Generation

DSTL

Defence Science and Technology Laboratories

DTCT

Defence Trade Cooperation Treaty

AAD KTN Aerospace, Aviation and Defence Knowledge Transfer Network ACC ADAS

Adaptive Cruise Control Advance Driver Assistance Systems

ADS

Aerospace, Defence and Security

AEGT

Aerospace Innovation and Growth Team

AGP

Aerospace Growth Partnership

EO EPSRC ESA ESP KTN EU EUR

Electro-optic Engineering and Physical Sciences Research Council European Space Agency Electronics, Sensors, Photonics Knowledge Transfer Network European Union Euro

AMSCI

Advanced Manufacturing Supply Chain Initiative

ANPR

Automated Numberplate Recognition

ATAG

Air Transport Action Group

FADEC

Full Authority Digital Engine Control

ATC

Advanced Technology Centre

FMEA

Failure Mode and Effects Analysis

ATI

Aerospace Technology Institute

FMS

Flight Management System

Airborne Volcanic Object Imaging Detector

FP7

Seventh Framework Programme of the European Union

Department of Business, Industry and Science

FTE

Full Time Equivalents

Compound Annual Growth Rate

GBP

Great British Pound

Civil Aerospace Sector

GDP

Gross Domestic Product

AVOID BIS CAGR CAS

EV

GNSS

Electric Vehicles

Global Navigation Satellite System

CBRN

Chemical, Biological, Radiological and Nuclear

CBRNE

Chemical, Biological, Radiological, Nuclear and Explosive

GPS

Global Positioning System

CCD

Charge-Coupled Device

GVA

Gross Value Added

CDE

Centre for Defence Enterprise

HVM

High Volume Manufacturing

CMOS

Complementary Metal-Oxide Semiconductor

ICS

ISTAR Concepts and Solutions

DE&S

Defence Equipment & Support

ICT

Information and Communication Technology

Defence Growth Partnership

IED

Improvised Explosive Device

DGP

106


LIST OF ACRONYMS

107

IKC

Innovation and Knowledge Centre

NHS

National Health Service

INS

Inertial Navigation System

NICE

National Institute for Health and Care Excellence

Intellectual Property

NSTS

National Space Technology Strategy

Intellectual Property Office

OEM

Original Equipment Manufacturer

Infrared

POC

Point of Care

IRS

Inertial Reference System

R&D

Research and Development

ISR

Intelligence, Surveillance and Reconnaissance

ITE

Integrated Test Environment

RAE

Research Assessment Exercise

ITS

Intelligent Transportation System

RFID

Radio Frequency Identification

S3C

Scottish Sensor Systems Centre

IP IPO IR

Intelligence, Surveillance, Reconnaissance

LIDAR

Light Detection and Ranging

SAPIENT

Sensing for Asset Protection using Integrated Electronic Networked Technology

LUTZ

Low Carbon Urban Transport Zone

SATCOM

Satellite Communication

MARTEC MAS

Acquisition

Multi-Sensor Aerospace-Ground Joint ISR Interoperability Coalition Maritime Technologies Military Aerospace Sector

MEMS

Microelectromechanical systems

MHRA

Medicines and Healthcare Products Regulatory Agency

MOD MU

Ministry of Defence Million Units

NATEP

National Aerospace technology Exploitation Programme

NATO

North Atlantic Treaty Organisation

NEC NERC

and

Radio Detection and Ranging

ISTAR

MAJIIC

Target

RADAR

Network Enabled Capability Natural Environment Research Council

SBRI

Small Business Research Initiative

SDSR

Strategic Defence and Security Review

SME

Small and Medium Enterprises

SONAR

Sound Navigation and Ranging

STFC

Science and Technology Facilities Council

SWAP

Size, Weight and Power

TIC TPMS

Technology Innovation Centre Tire Pressure Monitoring Systems

TRL

Technology Readiness Level

TSB

Technology Strategy Board

UAV

Unmanned Air Vehicle

108


UDM

Underpinning Defence Mathematics

UDRC

University Defence Research Collaboration

UK UKTI US

United Kingdom UK Trade and Investment United States

USD

United States Dollar

UWB

Ultra Wide Band

VHF

Very High Frequency

VORS WIF WMG

VHF Omnidirectional Radio Range Water in Fuel Warwick Manufacturing Group

ANNEXES

109

ANNEXES

ANNEX 1: INPUTS TO THIS STUDY These range from personal conversations with many of the 4,000 members of the ESP Community and with the wider KTN network which include members of businesses large and small, academics and technical experts, entrepreneurs, regulators, and all parts of many supply chains. The ESP Community has captured input from many sector or technology-specific workshops and colloquia and in particular collaborative activities like Special Interest Groups with other KTN Communities and agencies.

110


ANNEX 2: LIST OF ACADEMIC RESEARCH CENTRES LIFE SCIENCES (BIOSENSORS) Table 20. List of life sciences (biosensors) academic research groups, taken from Ref. [10] Aston University o Aston Institute of Photonic Technologies o Biomaterials Research Unit

http://www.aston.ac.uk/eas/research/groups/photonics/

Bangor University, School of Chemistry

http://www.bangor.ac.uk/chemistry/

University of Bath, Bath Biosensor Network

http://www.bath.ac.uk/biosensor/

http://www.aston.ac.uk/eas/research/groups/biomaterials/

ANNEXES

111

University of Hull, Department of Chemistry

http://www2.hull.ac.uk/science/chemistry.aspx

Imperial College London o Department of Chemistry o Department of Materials o Department of Medicine o Department of Bioengineering o Department of Chemical Engineering

http://www3.imperial.ac.uk/chemistry http://www3.imperial.ac.uk/materials http://www1.imperial.ac.uk/medicine/ http://www3.imperial.ac.uk/bioengineering http://www3.imperial.ac.uk/chemicalengineering

University of Leeds o Faculty of Biological Sciences, Institute of Membranes & Systems Biology o School of Physics & Astronomy

http://www.fbs.leeds.ac.uk http://www.physics.leeds.ac.uk

University of Manchester, Faculty of Engineering and Physical Sciences

http://www.eps.manchester.ac.uk

Newcastle University, Diagnostic and Therapeutic Technologies, Institute of Cellular Medicine

http://www.ncl.ac.uk/biomedicine/research/groups/diagnosticandtherapeutictechnologies.htm

University of Nottingham, School of Biosciences

http://www.nottingham.ac.uk/biosciences/index.aspx

University of Oxford, Department of Chemistry

http://www.chem.ox.ac.uk

Bolton University, Institute for Renewable Energy and Environmental Technology

http://www.bolton.ac.uk/IREET/Home.aspx

University of Bristol, Department of Electrical and Electronic Engineering, Photonic Research Group

http://www.bris.ac.uk/engineering/research/research-groups/photonics.html

Brunel University o Centre for Electronic Systems Research (CESR) o Brunel Institute for Bioengineering (BIB) o Wolfson Centre for Material Processing

http://www.brunel.ac.uk/sed/ece/research/cesr

http://www.brunel.ac.uk/wolfson

Queen Mary, University of London IRC in Biomedical Materials

http://www.sems.qmul.ac.uk/research/biomedicalengineeringmaterials/

University of Cambridge o Institute of Biotechnology o Department of Engineering, Engineering for the Life Sciences o Polysilicon TFT Group

http://www.ceb.cam.ac.uk http://www-g.eng.cam.ac.uk/lifesciences/

Sheffield Hallam University, Materials and Engineering Research Institute (MERI)

https://www.shu.ac.uk/research/meri/

http://www3.eng.cam.ac.uk/research_db/publications/groups/dB-T

Cardiff University

http://www.cardiff.ac.uk

University of Southampton o Chemistry o Optoelectronics Research Centre

http://www.southampton.ac.uk/chemistry/ http://www.orc.soton.ac.uk

Cranfield University, School of Health

https://www.cranfield.ac.uk/about/cranfield/themes/health/

University of Edinburgh o School of Biological Sciences o School of Biomedical Sciences o School of Chemistry o School of Engineering o School of Physics

http://www.brunel.ac.uk/bib

http://www.ed.ac.uk/schools-departments/biology/ http://www.ed.ac.uk/schools-departments/biomedical-sciences http://www.chem.ed.ac.uk http://www.eng.ed.ac.uk http://www.ph.ed.ac.uk

University of Exeter o College of Life and Environmental Sciences o College of Engineering, Mathematics and Physical Sciences

http://lifesciences.exeter.ac.uk

University of Glasgow, College of Science and Engineering

http://www.gla.ac.uk/colleges/scienceengineering/

http://emps.exeter.ac.uk

University of Greenwich, School of Science

http://www2.gre.ac.uk/about/schools/science

Heriot-Watt University o School of Engineering and Physical Sciences o School of Life Sciences

http://www.eps.hw.ac.uk

University of Hertfordshire o School of Life Sciences, Microbiology, Molecular Biology and Biotechnology Research Group o School of Engineering and Technology Microfluidics & Microengineering Research Group

http://www.herts.ac.uk/apply/schools-of-study/life-and-medical-sciences http://www.herts.ac.uk/research/stri/research-areas/cer/microfluidics-and-microengineering

https://www.strath.ac.uk/eee/research/cue/research/non-destructiveevaluation/wirelessnetworksofndesensors/

University of Strathclyde o The Strathclyde Sensor Network o Department of Pure and Applied Chemistry, Centre for Molecular Nanometrology o Institute of Photonics o Medical Diagnostics, Bioengineering Unit

https://www.strath.ac.uk/chemistry/centres/molecularnanometrology/ http://www.strath.ac.uk/photonics/ http://www.strath.ac.uk/biomedeng/researchcontent/medicaldiagnosticdevicesinstrumentation/

University Surrey, Faculty of Engineering and Physical Sciences

http://www.surrey.ac.uk/feps/

Swansea University o School of Medicine o College of Engineering, Multidisciplinary Nanotechnology Centre (MNC) & Centre for NanoHealth (CNH)

http://www.swansea.ac.uk/medicine/ http://www.swansea.ac.uk/engineering/research/centres-and-projects/multidisciplinary-nanotechnology-centre/

University of Ulster, The Nanotechnology and Integrated BioEngineering Centre (NIBEC) o Sensors Group o o

Carbon Based Nanomaterials Group Biomolecular Diagnostics Group

http://www.nibec.ulster.ac.uk/research http://www.nibec.ulster.ac.uk/research/groups/electrodes-and-sensors-group http://www.nibec.ulster.ac.uk/research/groups/carbon-based-nanomaterials

University College London/Imperial College, London Centre for Nanotechnology

https://www.london-nano.com

University of Warwick, School of Engineering

http://www2.warwick.ac.uk/fac/sci/eng

University of the West of England, Bristol, Institute of BioSensing Technology

http://www.biosensingtech.co.uk

112

University of the West of Scotland, School of Engineering, Thin Film


https://www.uws.ac.uk/schools/school-of-engineering/research/thin-film-researchcentre/

SECURITY & DEFENCE Table 21. List of security and defence academic research centres

ANNEXES

113

Systems Modelling and Systems Integration (SMSI), Oxford Brookes University

http://mems.brookes.ac.uk/research/smsi/index.html

Centre of Sustainable Transport, University of Plymouth

www.ssb.plymouth.ac.uk/cst/index.html

Institute of Electronics, Communications and Information Technology (ECIT), Queen’s University Belfast

http://www.ecit.qub.ac.uk

Cranfield Defence and Security

https://www.cranfield.ac.uk/about/people-and-resources/schools-and-departments/ cranfield-defence-and-security/

Transportation Research Group, Southampton University

www.trg.soton.ac.uk

Defence Science and Technology Laboratory*

https://www.Dstl.gov.uk

Centre for Transport, University College of London

http://www.cege.ucl.ac.uk/cts/SitePages/Home.aspx

Kings College London, Centre for Defence Studies

http://www.kcl.ac.uk/sspp/departments/warstudies/research/groups/cds/index.aspx

Intelligent Systems Research Centre, University of Ulster

http://isrc.ulster.ac.uk/

University of Southampton, Defence Science and Technology

http://www.southampton.ac.uk/aerospace/research/aerospace/defencescienceandtechnology.page?

University Defence Research Collaboration

http://www.see.ed.ac.uk/drupal/udrc/ * Non-defence academic groups often work with the Dstl on projects

TRANSPORT AND AUTOMOTIVE Table 22. List of transport and automotive academic research centres The UK Transport Research Centre

AEROSPACE Table 23. List of aerospace academic research centres – Taken from Ref [105] University of Bath, Department of Mechanical Engineering, Aerospace Engineering Research Centre

http://www.bath.ac.uk/mech-eng/research/aerc/

University of Bristol, Department of Aerospace Engineering

http://www.bristol.ac.uk/engineering/departments/aerospace/research/

Brunel University, London. Aerospace Engineering Research

http://www.brunel.ac.uk/sed/mecheng/research/aerospace-engineering-research

Cardiff University, Mechanics, Materials and Advanced Manufacturing

http://research.engineering.cf.ac.uk/home/mechanics-materials-and-advanced-manufacturing

Cranfield University, Department of Aerospace Engineering

https://www.cranfield.ac.uk/about/cranfield/themes/aerospace/

www.uktrc.ac.uk

Centre for Transport Research, Aberdeen University

www.abdn.ac.uk/ctr

CUBec Bristol University

www.bristol.ac.uk/cubec

Transport Research Group, University of Cambridge

www-trg.eng.cam.ac.uk

Coventry University, Department of Aerospace, Electrical and Electronic Engineering

http://www.coventry.ac.uk/life-on-campus/faculties-and-schools/faculty-of-engineering-and-computing/engineering-and-computing-departments/aerospace/

Automotive Department, Cranfield University

www.cranfield.ac.uk/automotive/index.html

Farnborough College of Technology

http://www.farn-ct.ac.uk

Automotive Engineering Applied Research Group (AEARG) Coventry University

http://wwwm.coventry.ac.uk/reserachnet/automotiveengineering/researchareas/Pages/IntelligentTransportationSystems.aspx

Loughborough University

http://www.lboro.ac.uk/departments/aae/

Centre for Intelligent Systems (CISA), Edinburgh

www.cisa.inf.ed.ac.uk

Transport Research Institute, Edinburgh Napier University

www.tri-napier.inf.ed.ac.uk

University of Manchester, Aerospace Research Institute (UMARI) o Autonomous Systems o Aviation Security, Imaging and NDT

http://www.umari.manchester.ac.uk/research/areas/Autonomous%20Systems/index. html http://www.umari.manchester.ac.uk/research/areas/Aviation%20Security/index.html

Scottish Sensor Systems Centre, University of Glasgow

http://sensorsystems.org.uk

University of Nottingham Institute for Aerospace Technology

http://www.nottingham.ac.uk/aerospace/index.aspx

Institute for Transport Studies (ITS), Leeds University

www.its.leeds.ac.uk/about

University of Sheffield, Advanced Manufacturing Research

http://www.amrc.co.uk

Systems Engineering Innovation Centre, Loughborough University

http://www.lboro.ac.uk/departments/eese/research/centres/seic

University of Southampton

http://www.southampton.ac.uk/aerospace/research/aerospace/index.page?

Transport Operations Research Group (TORP), Newcastle University

www.ceg.ncl.ac.uk/transport/index.htm

University of Wales, Swansea, Aerospace Engineering

http://www.southwales.ac.uk/aero/facilities/

Infrastructure and Geomatics Division, University of Nottingham

http://www.nottingham.ac.uk/engineering/research/infrastructureandgeomatics/index. aspx

Transport Studies Unit, Oxford University

www.tsu.ox.ac.uk 105. http://www.aau.ac.uk/universities.htm

