Artificial Intelligence
AS Tallink Grupp Unaudited Consolidated Interim Report Q2 2020
In the second quarter (1 April – 30 June) of the 2020 financial year, Tallink Grupp AS and its subsidiaries (the Group) carried 388 thousand passengers, which is 85.4% less than in the second quarter last year. The number of cargo units transported decreased by 12.8% in the same comparison. The Group’s unaudited consolidated revenue decreased by 74.6% or EUR 191.1 million to a total of EUR 65.0 million. Unaudited EBITDA was EUR 2.4 million (EUR 50.7 million in Q2 2019) and unaudited net loss was EUR 27.4 million (net profit of EUR 14.9 million in Q2 2019).
In the second quarter, the Group’s revenue and operating results were impacted by the following operational factors:
Impact of Covid-19 and travel restrictions
Due to the global outbreak of Covid-19, the state of emergency was declared in most of the Group’s home markets in mid-March together with imposing travelling and movement restrictions. The restrictions were gradually removed starting from mid-May. However, the restrictions remain in force for international passenger traffic to and from Sweden.
The impact of the Covid-19 on the Group’s second quarter operations and results has been very extensive. The combined passenger volume of April and May was down by 93% compared to last year. There was a slight recovery in June following Finland lifting its travel restrictions. Still, the number of passengers carried in the month was 72% lower compared to June 2019. Customer profiles changed from a mix of home and foreign markets to mainly home.
In the situation of extensive travel restrictions and lower demand, the focus was shifted to cost and cash flow management to ensure the sustainability of the Group’s core business. Thus, non-critical costs and investments were scaled down and several operational changes were made. Throughout the quarter our vessels have been flexibly rerouted to other routes.
The Estonia-Finland routes shuttle vessel Megastar and cargo vessel Seawind, the Paldiski-Kapellskär route cargo vessel Regal Star and the Turku-Stockholm route cruise ferries Baltic Princess and Galaxy continued operating to ensure international movement of cargo.
Changes concerning workload and remuneration of personnel During the reporting period, collective redundancies process was carried out, including among others hotel personnel and onboard personnel. To date the redundancies have affected approximately 500 employees. Additional collective redundancies process has commenced in the second quarter, which potentially affects another 700 employees by the end of the third quarter.
The average number of employees during the quarter and the number of employees at the end of quarter were, respectively, 10.7% and 15.0% lower compared to the same period a year ago.
Combination of changes relating to personnel and salary compensation support measures offered by the states resulted in a decrease by EUR 29.7 million in personnel expenses in the second quarter of 2020 compared to same period last year.
Support measures The Group used temporary salary compensation measures offered by the states. From 19 March to 18 June, the operations of Megastar on the Tallinn-Helsinki route and the Turku-Stockholm route two vessels were backed by Finland’s National Emergency Supply Agency’s to ensure the cargo supply. The support was of crucial help in covering the operating expenses, which were already reduced to minimum, and thereby reducing the operating losses.
Estonian parliament approved the change in legislation granting exemption from ships’ fairway dues for twelve months starting from April 2020.
Activities to improve liquidity An instalment for the construction of the shuttle vessel MyStar, originally scheduled for the second quarter of 2020, was postponed to the third quarter of 2020 after negotiations with the shipyard.
In order to relieve the liquidity issues caused by the Covid-19 situation, the Group’s companies were allowed to postpone the tax payments. At the end of the second quarter, the postponed tax liability amounted to EUR 11.1 and will be paid in even amounts until autumn 2021. During the quarter the Group negotiated with existing and new financial institutions financing and payment terms including waivers of loan covenants, deferral of loan principal repayments for the year 2020 and new loan agreements. As a result, the Group’s liquidity improved in great extent and therefore the financial report has been prepared according to going concern principle.
Sales and segments
In the second quarter of 2020, the Group’s total revenue decreased by EUR 191.1 million to EUR 65.0 million. Total revenue in the second quarter of 2019 and 2018 was EUR 256.1 million and EUR 255.4 million, respectively.
Revenue from route operations (core business) decreased by EUR 179.5 million to EUR 56.4 million. The passenger operations and segment results on all routes were significantly affected by Covid-19 situation and travel restrictions.
The number of passengers carried on the Estonia-Finland routes decreased by 76.7% compared to last year and the number of transported cargo units decreased by 6.9%. Estonia-Finland routes’ revenue decreased by EUR 61.3 million to EUR 33.6 million. The segment result decreased by EUR 23.9 million to EUR -2.4 million. The Estonia-Finland routes’ results include also the operations of the Paldiski-Sassnitz and the Tallinn-Mariehamn routes. The Finland’s National Emergency Supply Agency support to partially cover the operating expenses of the shuttle vessel Megastar is reported as other operating income. The number of passengers carried on the Finland-Sweden routes decreased by 93.0%, while the number of transported cargo units decreased only by 8.7%. The route’s revenue decreased by EUR 73.4 million to EUR 16.2 million and the segment result decreased by EUR 27.6 million to EUR -18.4 million. Finland-Sweden results include also the operations of the Helsinki-Riga route as well as the expenses related to the suspended Helsinki-Stockholm route. The Finland’s National Emergency Supply Agency support to partially cover the operating expenses of the Turku-Stockholm route operations is reported as other operating income.
On the Estonia-Sweden routes the number of passengers carried decreased by 96.9% and the number of transported cargo units decreased by 25.1%. The segment revenue decreased by EUR 26.1 million to EUR 5.2 million and the segment result decreased by EUR 7.2 million to EUR -4.9 million. Estonia-Sweden routes’ results reflect the operations of the Paldiski-Kapellskär route and the expenses related to the suspended operations of the Tallinn-Stockholm route.
There were no daily operations on the Latvia-Sweden route during the quarter. The results reflect 6 return trips performed with permission from the authorities as well as incurred operating expenses of the suspended route. The number of transported passengers and cargo units decreased by 98.5% and 89.4%, respectively. The route’s revenue decreased by EUR 18.7 million compared to last year and amounted to EUR 1.3 million. The segment result decreased by EUR 4.5 million to EUR -4.2 million.
Revenue from the segment other decreased by a total of EUR 13.5 million and amounted to EUR 8.7 million. The decrease was mainly driven by the suspended operations of 3 hotels, which resulted in 95.8% lower accommodation sales, and significantly lower revenue from services provided at the hotels. The segment revenue was positively impacted by a significant increase in online shop sales, opening of the first four Burger King restaurants and revenue from providing mooring services at the Tallinn Old City Harbour.
Earnings In the second quarter of 2020, the Group’s gross profit decreased by EUR 82.5 million compared to the same period last year, amounting to EUR -21.9 million. EBITDA decreased by EUR 48.3 million and amounted to EUR 2.4 million.
The Group’s second quarter financial result was impacted by the following factors:
Amortisation and depreciation expense increased by EUR 1.8 million to EUR 25.2 million compared to last year. Net finance costs increased by EUR 0.2 million compared to the second quarter last year.
The Group’s unaudited net loss for the second quarter of 2020 was EUR 27.4 million or EUR 0.041 per share compared to a net profit of EUR 14.9 million or EUR 0.022 per share in 2019 and net profit of EUR 15.3 million or EUR 0.023 per share in 2018.
Results of the first 6 months of 2020
In the first 6 months (1 January – 30 June) of the 2020 financial year the Group carried 2.0 million passengers which is 56.6% less compared to the same period last year. The Group’s unaudited revenue for the period decreased by 49.4% and amounted to EUR 219.9 million. Unaudited EBITDA for the first 6 months was EUR 1.2 million (EUR 54.5 million, 6 months 2019) and unaudited net loss was EUR 57.6 million (EUR 10.4 million, 6 months 2019 net loss). The financial result of the first 6 months of 2020 was impacted by following factors:
Investments
The Group’s investments in the second quarter of 2020 amounted to EUR 14.4 million with the majority arising from the EUR 8.5 million purchase of a ro-pax vessel Sailor. Investments were made in the ships’ technical maintenance, including works performed during Silja Serenade 10 docking days in April.
Investments were also made in the development of the online booking and sales systems as well as other administrative systems and in relation to the opening of four Burger King restaurants.
Dividends
Due to a deteriorated operating environment and considering the Company’s long-term interests, the Supervisory Board proposed to the shareholders’ annual general meeting not to pay dividends from net profit for 2019. On 30 July 2020 (third quarter), the shareholders’ annual general meeting decided not to pay dividends from net profit for 2019. Financial position
In the second quarter, the Group’s net debt increased by EUR 19.2 million to EUR 593.8 million and the net debt to EBITDA ratio was 5.0 at the reporting date.
At the end of the second quarter, total liquidity buffer (cash, cash equivalents and unused overdraft facilities) amounted to EUR 104.9 million (EUR 123.1 million at 30 June 2019).
At 30 June 2020, the Group’s cash and cash equivalents amounted to EUR 21.9 million (EUR 67.1 million at 30 June 2019) and the Group had EUR 83.0 million in unused overdraft facilities (EUR 56.0 million at 30 June 2019).
Economic Environment The Group considers Finland, Sweden, Estonia and Latvia its home markets with the most exposure to the economic developments in Finland. The Group has also high exposure to the economic developments in Estonia and Sweden.
In the second quarter of 2020 the Group’s economic environment was dominated by the Covid-19 pandemic outbreak and the related restrictions set by governments. According to the OECD data, the confidence of both the consumers and the businesses plummeted across all our home markets during the quarter, particularly in Estonia and Latvia.
For the Group the weaker consumer confidence reflected mainly in the lower demand for travelling. The demand was also hindered by the imposed travelling and movement restrictions. The international travel restrictions and reduced air traffic also effectively meant the absence of demand from the customers from outside our home markets.
The Covid-19 situation improved enough for gradually lifting the majority of the restrictions on all our other home markets, except for Sweden, allowing to restart of some of our passenger operations toward the end of the quarter. The state-level travelling and border-crossing restrictions effectively allowed to offer only international cargo operations to and from Sweden.
Although the cargo market fared somewhat better relative to the passenger business the Covid-19 impact is felt in this area too. Along with the tight competition, the decreased business confidence materialised as decline both in the number of cargo units and in the average revenue per unit. Measured in euros the global fuel prices declined, on average, by 54% in the second quarter of 2020 compared to a year ago. The Group’s overall fuel cost declined by 56% compared to the same period last year. In addition to the change in the fuel market price, the change in the cost was affected by the number and timing of trips as well as an existing fuel price agreement with the price fixed above the market level.
For the foreseeable future, the key risk has to do with global and regional developments with the Covid-19 situation and related restrictions on travel and other economic activities, its economic damage and its impact on local and international trade.
Events in Q2
Start of construction of the new shuttle vessel MyStar Changes in the Audit Committee Changes in the Group structure In June 2020, Tallink Latvija AS, a wholly-owned subsidiary of the Group, registered a wholly-owned subsidiary in Latvia – SIA BK Properties. The purpose of founding the subsidiary is acquisition and holding of real estate properties for the operation of Burger King restaurants in Latvia.
Charter agreement extension Increase of overdraft limit Changes in loan agreements The repayment rescheduling improved significantly the Group’s liquidity position and increased flexibility to maintain sufficient working capital in challenging economic environment.
Signing of the loan agreement The loan is secured by mortgages on five vessels ranking after the existing creditors.
Purchase of ro-pax vessel Sailor Fuel price risk management Opening of Burger King restaurants Events after the reporting period and outlook
Prepayment for the new shuttle vessel MyStar Dividends Renovation of Tallink City Hotel Earnings Due to the ongoing Covid-19 situation the earnings outlook for 2020 has become uncertain and will be largely subject to external factors such as the states’ decisions regarding the timing of lifting of the travel restrictions, allowing passenger traffic as well as the duration of the recovery period. In the opinion of the Management Board the Group will not earn profits in 2020 financial year.
Research and development projects The Group is continuously looking for innovative ways to upgrade the ships and passenger area technology to improve its overall performance through modern solutions. The most recent project, in collaboration with ports in the Baltic Sea area and supported by the Connecting Europe Facility (CEF) fund, involves making preparations for the use of high-voltage shore connection during the vessels’ port stays. Another ongoing collaboration project with Tallinn University of Technology (TalTech) involves the development of smart car deck solutions.
In addition, the Group is participating in a programme, funded by the European Space Agency, with a goal to develop techniques for autonomous navigation for ships, using a combination of different sensors, machine learning and artificial intelligence. Risks Key figures
1 Alternative performance measures based on ESMA guidelines are disclosed in the Alternative Performance Measures section of this Interim Report. EBITDA: result from operating activities before net financial items, share of profit of equity-accounted investees, taxes, depreciation and amortization Consolidated statement of financial position Consolidated statement of cash flows
Veiko Haavapuu AS Tallink Grupp Attachments
Due to the Covid-19 situation the following changes relating to personnel were in force in the second quarter of 2020:
Starting from March the Group has received a total of EUR 17 million in various direct financial support. Majority of the support was received in the second quarter of 2020.
The Supervisory Board proposed to the shareholders’ annual general meeting not to pay dividends from net profit for 2019.
The physical production process of MyStar started on 6 April 2020 in Rauma shipyard in Finland with a traditional steel cutting ceremony.
Luke Staniczek was recalled from the Audit Committee and from 17 April, the Audit Committee continued with three members including Meelis Asi (Chairman of the Audit Committee), Ain Hanschmidt and Mare Puusaag.
In April 2020, TLG Agent OÜ, a wholly-owned subsidiary of the Group, was renamed LNG Shipmanagement OÜ. The main activity of the subsidiary is to provide crewing service.
In May 2020, Baltic SF IX Limited, a wholly-owned subsidiary of the Group, and Marine Atlantic Inc, a Canadian company with the state participation therein, concluded to extend the current charter agreement of MV Atlantic Vision (ex. Superfast IX) for two years, until November 2022. The vessel has been on the long-term bareboat charter since 14 November 2008.
In the second quarter, the Group extended its existing overdraft facility with Danske Bank A/S by EUR 20.0 million and Nordea Bank Abp by EUR 20.0 million. After the reporting date, in July 2020, extension of overdraft facility with SEB Pank AS by EUR 20.0 million was finalized. The increase of the overdraft facilities helps to improve the Group’s liquidity.
Amendments to loan facility agreements signed by Tallink Grupp AS and all its lending banks whereby loan principal repayments in the amount of EUR 61 million for the year 2020 are deferred and added to the last payment of each respective loan facility came into force on 29 May 2020. The loans’ final maturities and interest margins remained unchanged. Request for waivers of loan covenants were also approved.
On 8 June 2020, Tallink Grupp AS and KredEx SA signed a working capital loan agreement. The total amount of the loan limit is EUR 100 million and the loan can be drawn in EUR 10-40 million tranches. The interest rate of the three-year maturity loan is 12-month Euribor +2%.
On 30 June 2020, Baltic SF VIII Ltd, a subsidiary of the Group purchased a ro-pax vessel Sailor from Navirail OÜ. The ship is registered in the Cyprus Ship Registry and is going to sail under the Estonian flag. The purchase of the ro-pax vessel will strengthen the Group fleet’s cargo capacity.
In the first quarter of 2020, the Group entered into agreements with its main fuel suppliers and fixed the purchase price of fuel equivalent to about 65% of its total estimated fuel volume for 2020. Due to the Covid-19 situation, more flexible terms were negotiated and agreed with one of the fuel suppliers in April.
The Group opened its first three Burger King restaurants in Tallinn on 20 May 2020. The fourth restaurant was opened on 15 June 2020. The Group has secured the locations of its first Burger King restaurants in Latvia and Lithuania, to be opened in the second half of 2020.
The last prepayment instalments for the new shuttle vessel MyStar in the total amount of EUR 49.4 million will be made in the third quarter of 2020.
On 30 July 2020, the shareholders’ general meeting decided not to pay dividend from net profit for 2019.
Tallink City Hotel in Tallinn will undergo a full-scale renovation from September 2020. The renovation works are estimated to be finalised by the end of May 2021 and the hotel reopened in June next year.
The Group’s earnings are not generated evenly throughout the year. The summer period is the high season in the Group’s operations. In management’s opinion and based on prior experience most of the Group’s earnings are generated during the summer (June-August).
Tallink Grupp AS does not have any substantial ongoing research and development projects. The Group is continuously seeking opportunities for expanding its operations in order to improve its results.
The Group’s business, financial position and operating results could be materially affected by various risks. These risks are not the only ones we face. Additional risks and uncertainties not presently known to us, or that we currently believe are immaterial or unlikely, could also impair our business. The order of presentation of the risk factors below is not intended to be an indication of the probability of their occurrence or of their potential effect on our business.
For the period
Q2 2020
Q2 2019
Change %
Revenue (million euros)
65.0
256.1
-74.6%
Gross profit/loss (million euros)
-21.9
60.6
-136.1%
EBITDA¹ (million euros)
2.4
50.7
-95.2%
EBIT¹ (million euros)
-22.7
27.4
-183.0%
Net profit/loss for the period (million euros)
-27.4
14.9
-283.8%
Depreciation and amortisation (million euros)
25.2
23.3
7.9%
Capital expenditures¹ ²(million euros)
14.4
18.5
-22.0%
Weighted average number of ordinary shares outstanding
669 882 040
669 882 040
0.0%
Earnings/loss per share¹
-0.041
0.022
-283.8%
Number of passengers
388 212
2 651 843
-85.4%
Number of cargo units
86 755
99 546
-12.8%
Average number of employees
6 578
7 363
-10.7%
As at
30.06.2020
31.03.2020
Change %
Total assets (million euros)
1 505.9
1 517.8
-0.8%
Total liabilities (million euros)
740.5
724.5
2.2%
Interest-bearing liabilities (million euros)
615.7
591.0
4.2%
Net debt¹ (million euros)
593.8
574.5
3.3%
Net debt to EBITDA¹
5.0
3.5
45.7%
Total equity (million euros)
765.3
793.2
-3.5%
Equity ratio¹ (%)
51%
52%
Number of ordinary shares outstanding
669 882 040
669 882 040
0.0%
Equity per share¹
1.14
1.18
-3.5%
Ratios¹
Q2 2020
Q2 2019
Gross margin (%)
-33.7%
23.7%
EBITDA margin (%)
3.7%
19.8%
EBIT margin (%)
-35.0%
10.7%
Net profit/loss margin (%)
-42.1%
5.8%
ROA (%)
1.3%
4.0%
ROE (%)
0.3%
4.1%
ROCE (%)
1.5%
4.9%
2 Does not include additions to right-of-use assets.
EBIT: result from operating activities
Earnings per share: net profit / weighted average number of shares outstanding
Equity ratio: total equity / total assets
Shareholder’s equity per share: shareholder’s equity / number of shares outstanding
Gross margin: gross profit / net sales
EBITDA margin: EBITDA / net sales
EBIT margin: EBIT / net sales
Net profit margin: net profit / net sales
Capital expenditure: additions to property, plant and equipment – additions to right-of-use assets + additions to intangible assets
ROA: earnings before net financial items, taxes 12-months trailing / average total assets
ROE: net profit 12-months trailing / average shareholders’ equity
ROCE: earnings before net financial items, taxes 12-months trailing / (total assets – current liabilities (average for the period))
Net debt: interest-bearing liabilities less cash and cash equivalents
Net debt to EBITDA: net debt / EBITDA 12-months trailing
Consolidated statement of profit or loss and other comprehensive income
Unaudited, in thousands of EUR
Q2 2020
Q2 2019
Jan-Jun
2020Jan-Jun
2019
Revenue (Note 3)
64 962
256 103
219 892
434 973
Cost of sales
-86 857
-195 469
-241 959
-363 840
Gross loss/profit
-21 895
60 634
-22 067
71 133
Sales and marketing expenses
-7 320
-19 212
-21 268
-36 254
Administrative expenses
-9 605
-14 443
-23 029
-29 511
Other operating income
16 138
439
17 670
1 163
Other operating expenses
-57
-11
-79
-25
Result from operating activities
-22 739
27 407
-48 773
6 506
Finance income (Note 4)
0
93
1
1 095
Finance costs (Note 4)
-4 588
-4 506
-8 700
-9 837
Loss before income tax
-27 327
22 994
-57 472
-2 236
Income tax
-44
-8 104
-97
-8 129
Net loss for the period
-27 371
14 890
-57 569
-10 365
Net loss for the period attributable to equity holders of the Parent
-27 371
14 890
-57 569
-10 365
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations
-504
257
81
422
Other comprehensive income for the period
-504
257
81
422
Total comprehensive loss for the period
-27 875
15 147
-57 488
-9 943
Total comprehensive loss for the period attributable to equity holders of the Parent
-27 875
15 147
-57 488
-9 943
Loss per share (in EUR, Note 5)
-0.041
0.022
-0.086
-0.015
Unaudited, in thousands of EUR
30.06.2020
30.06.2019
31.12.2019
ASSETS
Cash and cash equivalents
21 892
67 070
38 877
Trade and other receivables
22 434
53 270
37 606
Prepayments
10 641
12 134
6 805
Prepaid income tax
0
46
67
Inventories
37 035
39 326
37 255
Current assets
92 002
171 846
120 610
Investments in equity-accounted investees
403
407
403
Other financial assets and prepayments
1 866
326
1 619
Deferred income tax assets
18 674
17 934
18 674
Investment property
300
300
300
Property, plant and equipment (Note 6)
1 349 733
1 373 420
1 347 093
Intangible assets (Note 7)
42 898
45 640
44 264
Non-current assets
1 413 874
1 438 027
1 412 353
TOTAL ASSETS
1 505 876
1 609 873
1 532 963
LIABILITIES AND EQUITY
Interest-bearing loans and borrowings (Note 8)
130 066
108 190
89 198
Trade and other payables
86 951
107 626
98 926
Payables to owners
6
33 496
6
Income tax liability
10
8 049
0
Deferred income
37 901
46 635
33 314
Current liabilities
254 934
303 996
221 444
Interest-bearing loans and borrowings (Note 8)
485 593
495 970
488 682
Non-current liabilities
485 593
495 970
488 682
Total liabilities
740 527
799 966
710 126
Share capital (Note 9)
314 844
361 736
314 844
Share premium
663
663
663
Reserves
68 666
70 893
69 608
Retained earnings
381 176
376 615
437 722
Equity attributable to equity holders of the Parent
765 349
809 907
822 837
Total equity
765 349
809 907
822 837
TOTAL LIABILITIES AND EQUITY
1 505 876
1 609 873
1 532 963
Unaudited, in thousands of EUR
Q2 2020
Q2 2019
Jan-Jun
2020Jan-Jun
2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period
-27 371
14 890
-57 569
-10 365
Adjustments
29 084
36 133
58 471
65 377
Changes in:
Receivables and prepayments related to operating activities
9 649
-11 569
11 294
-15 521
Inventories
2 417
-3 021
220
-3 585
Liabilities related to operating activities
-9 782
14 154
-7 545
21 704
Changes in assets and liabilities
2 284
-436
3 969
2 598
Cash generated from operating activities
3 997
50 587
4 871
57 610
Income tax repaid/paid
-33
-136
-20
-218
NET CASH FROM OPERATING ACTIVITIES
3 964
50 451
4 851
57 392
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment and intangible assets (Notes 6, 7)
-14 344
-18 456
-41 414
-43 718
Proceeds from disposals of property, plant, equipment
3
64
47
142
Interest received
0
0
1
1
NET CASH USED IN INVESTING ACTIVITIES
-14 341
-18 392
-41 366
-43 575
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans received (Note 8)
0
0
15 000
0
Repayment of loans received (Note 8)
0
-14 834
-14 667
-31 334
Change in overdraft (Note 8)
19 747
9 152
32 005
19 009
Payments for settlement of derivatives
0
0
0
-1 029
Payment of lease liabilities (Note 8)
-999
-3 667
-4 914
-7 134
Interest paid
-2 941
-3 415
-7 689
-8 434
Payment of transaction costs related to loans
0
0
-205
0
NET CASH FROM/USED IN FINANCING ACTIVITIES
15 807
-12 764
19 530
-28 922
TOTAL NET CASH FLOW
5 430
19 295
-16 985
-15 105
Cash and cash equivalents at the beginning of period
16 462
47 775
38 877
82 175
Change in cash and cash equivalents
5 430
19 295
-16 985
-15 105
Cash and cash equivalents at the end of period
21 892
67 070
21 892
67 070
Financial Director
Sadama 5
10111 Tallinn, Estonia
E-mail [email protected]
Artificial Intelligence
ADQ Appoints Modon as Master Developer for Ras El Hekma Megaproject in Egypt
In the presence of Mohamed bin Zayed Al Nahyan and Abdel Fattah El-Sisi
The event marked the signing of several significant agreements aimed at driving the development of the new destinationABU DHABI, UAE, Oct. 4, 2024 /PRNewswire/ — In the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and His Excellency Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, ADQ, an Abu Dhabi-based investment and holding company, appointed Modon Holding PSC as the master developer for the Ras El Hekma megaproject.
In addition to being master developer for the entire development spanning 170 million square metres, Modon Holding will undertake the responsibility of the developer role for the first phase of the envisaged city consisting of 50 million square metres.
The remaining 120 million square metres, which are part of the master plan presented by Modon Holding, will be developed in partnership with prominent developers from Egypt, the UAE, and the international community under the oversight of the recently established ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding.
This iconic project represents a major milestone for Modon Holding by significantly increasing its land under development outside the UAE. Ras El Hekma is located around 350 kilometres northwest of Cairo and envisioned as a fully functional, smart, sustainable, and inclusive urban community situated against the scenic coastline.
The project is expected to become a powerful economic engine, with cumulative investments anticipated to reach US$110 billion by 2045, an annual GDP contribution of around US$25 billion, and approximately 750,000 jobs to be created, both directly and indirectly.
Upon completion, the development will be home to two million people and feature more than 40 kilometres of green spines, set to make Ras El Hekma the greenest megaproject in the region.
As a result of Ras El Hekma’s location within a four-hour flight for over 400 million outbound tourists, the establishment of tourism infrastructure will be a priority during the first phases of the development, encompassing an international airport as well as high-speed rail connectivity. The masterplan also includes residential areas, office spaces, hospitality venues, retail, leisure, and recreation facilities.
Ras El Hekma will have an international marina and a special free zone. Additionally, Modon Holding will look to develop infrastructure to support a range of high-growth industries, including business services, financial services, light manufacturing, and technology.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, Chairman of Modon Holding, said, “Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions. Modon Holding is proud to bring this 170-million-square-metre visionary megaproject to life, leveraging our expertise and innovative approach. With our partners, we are poised to transform Ras El Hekma into a dynamic economic powerhouse and a global model for urban development.”
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, said, “As a project of unprecedented scale and impact, Ras El Hekma will be a catalyst for the development of Egypt’s economy by offering opportunities for businesses and stimulate tourism. Modon Holding brings a wealth of expertise in master planning and will pioneer state-of-the-art, innovative solutions, creating a destination that will deliver long-term value for Egypt and its people.”
Bill O’Regan, Group CEO of Modon Holding, said, “The Ras El Hekma destination is one of the Group’s most significant investment and development projects outside the UAE. The project provides an incredible development pipeline, and Modon Holding looks forward to delivering a destination that will be an exceptional experience for visitors and residents alike.”
During the ceremony, Modon Holding PSC engaged with the initial major partners to join in the development of the Ras El Hekma megaproject on Egypt’s stunning Mediterranean coast.
Ras El Hekma is set to become a leading urban and tourist hub, boasting a wide array of attractions and amenities. Modon Holding aims to harness its large-scale development expertise, collaborating with local, regional, and global partners to bring this visionary destination masterplan to life.
These collaborative efforts, combined with a focus on diverse entertainment, sports, cultural events, and top-tier community management, will position Ras El Hekma as a premier Mediterranean destination.
While the immediate focus is on tourism and hospitality, Modon’s long-term vision for the 170-square-metre site also includes business services, financial services, light manufacturing, and technology.
Modon Engages First Batch of Investors and Partners in Landmark Ceremony
On 4th October, in a momentous ceremony attended by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Egyptian President His Excellency Abdel Fattah El-Sisi, Modon proudly initiated the engagement of its first group of investors and partners.
The event marked the signing of several significant agreements aimed at driving the development of the new destination:
– A framework agreement with Orascom Construction, designating them as one of the primary contractors for the initial phase of the project.
– A memorandum of understanding with Elsewedy Electric to explore opportunities for supplying building materials and collaborating on industrial parks, manufacturing, operations, and maintenance.
– A memorandum of understanding with Abu Dhabi Airports to collaborate in airport strategic planning, design, development, and operational support.
– A memorandum of understanding with TAQA to explore cooperation opportunities in relation to the development, financing, and operation of greenfield utilities infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects.
– A memorandum of understanding with Valderrama for the development and operation of golf communities.
– A memorandum of understanding with e& Egypt to facilitate the design and implementation of smart city infrastructure, including digital connectivity, fiber networks, and 5G; smart building technologies and IoT-enabled solutions for residential and commercial properties; city-wide data collection, monitoring, and analytics systems; smart utilities, encompassing automated energy management, water, and waste systems; smart transportation systems; and any other mutually agreed smart city services.
– A memorandum of understanding with Candy International aims to explore luxury real estate development opportunities, leveraging Candy’s extensive international reach.
– A memorandum of understanding with Montage International for the development and management of luxury hotels in Ras El Hekma.
– A memorandum of understanding with Accor and Ennismore to operate hotels and resorts in Ras El Hekma.
– Finally, a memorandum of understanding with Burjeel Holding to develop multi-specialty healthcare facilities, implement innovative healthcare solutions, provide medical training programmes, and collaborate on public health initiatives and community wellness programmes.
These strategic partnerships underscore Modon’s commitment to creating a world-class destination, fostering innovation, and enhancing the quality of life for Ras El Hekma’s future residents.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, said, “Ras El Hekma represents a visionary and multifaceted endeavour that promises to make a substantial contribution to the Egyptian economy. Crafting a masterplan of such scale demands specialised expertise and capabilities across diverse industries, which can only be realised through robust strategic partnerships. We look forward to working with our partners present and future in harnessing the full potential of this extraordinary location.”
Bill O’Regan, said, “Ras El Hekma is an extraordinarily ambitious and complex project that will significantly contribute to the Egyptian economy through various stages of planning, design, and construction, ultimately bringing this new destination to life. Developing and delivering a masterplan of this magnitude requires sector-specific expertise and capabilities across a wide range of industries and is achievable only through strong strategic partnerships.”
About ADQEstablished in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics, amongst others. As a strategic partner to the Government of Abu Dhabi, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
For more information, visit adq.ae or write to [email protected]. You can also follow ADQ on Instagram, LinkedIn and X.
About Modon HoldingModon develops vibrant communities, unique hospitality and lifestyle experiences, and world-class sports facilities. Based in Abu Dhabi, Modon Holding is a Private Joint Stock company listed on the ADX Growth Market with the shareholding of ADQ and the IHC Group being our majority shareholders. Through a diversified business portfolio in the UAE, we are engaged in strategic investment and innovation on an unrivalled scale, shaping future smart living. Our goal is to deliver long-term, sustainable value, laying the foundations for intelligent, connected living.
Ras El-Hekma Urban Development Project CompanyA wholly owned subsidiary of ADQ, an Abu Dhabi-based investment and holding company, Ras El Hikma Urban Development Project Company S.A.E. (RED) is mandated to oversee the execution of the Ras El Hekma project, a 170 million square meter visionary megacity located on Egypt’s north coast. Established in March 2024 and based in Egypt, RED holds the ownership rights of the Ras El-Hekma as well as responsibility for the implementation of the multi-phase project together with its partners, which include Modon Holding as the master developer.
Photo – https://mma.prnewswire.com/media/2523688/Modon_ADQ.jpg
View original content:https://www.prnewswire.co.uk/news-releases/adq-appoints-modon-as-master-developer-for-ras-el-hekma-megaproject-in-egypt-302267927.html
Artificial Intelligence
Electronic Access Control Systems Market Set for Significant Expansion, with Projected Growth to USD 16 Billion by 2031: Market Research Intellect
The Electronic Access Control System market is driven by increasing security concerns and advancements in technology. As businesses and institutions face growing threats, there is a rising demand for sophisticated access control solutions to protect assets and data. Technological innovations, including biometrics, IoT integration, and cloud-based systems, enhance system functionality and appeal. Additionally, the trend toward smart buildings and stringent regulatory requirements further fuels the market’s expansion, reflecting a broadening need for advanced security solutions.
LEWES, Del., Oct. 4, 2024 /PRNewswire/ — The Electronic Access Control System market is projected to grow from approximately USD 10 billion in 2024 to USD 16 billion by 2031, achieving a compound annual growth rate (CAGR) of around 7.5%. This growth is driven by rising security needs, advancements in technology, and increased adoption of smart and connected security solutions across various sectors.
Download PDF Brochure: https://www.marketresearchintellect.com/download-sample/?rid=194769
202 – Pages126 – Tables37 – Figures
Scope Of The Report
REPORT ATTRIBUTES
DETAILS
STUDY PERIOD
2020-2031
BASE YEAR
2023
FORECAST PERIOD
2024-2031
HISTORICAL PERIOD
2020-2023
UNIT
Value (USD Billion)
KEY COMPANIES PROFILED
Honeywell International Inc., Johnson Controls International plc, ASSA ABLOY Group, Allegion plc, Schlage (a brand of Allegion), Bosch Security Systems, Tyco International Ltd., and HID Global (an ASSA ABLOY Group brand).
SEGMENTS COVERED
By Type, By Application And By Geography
CUSTOMIZATION SCOPE
Free report customization (equivalent to up to 4 analyst working days) with purchase. Addition or alteration to country, regional & segment scope
Electronic Access Control System Market Overview
Market Size and Growth:The Electronic Access Control System market is experiencing robust growth, expected to expand from approximately USD 10 billion in 2024 to USD 16 billion by 2031, representing a compound annual growth rate (CAGR) of about 7.5%. This growth trajectory is driven by the increasing need for enhanced security solutions across various sectors, including commercial, residential, and industrial applications. The rising concerns over security breaches and unauthorized access are prompting organizations to invest in advanced access control technologies. Additionally, the growing adoption of smart buildings and connected infrastructure contributes to the market’s expansion, as these technologies offer more efficient and scalable security solutions. As the demand for higher security standards continues to rise, the EACS market is poised for substantial growth in the coming years.Technological Advancements:The EACS market is significantly influenced by rapid technological advancements. Innovations such as biometric authentication, including fingerprint and facial recognition, are enhancing the capabilities of access control systems, providing more secure and user-friendly solutions. The integration of Internet of Things (IoT) technology allows for remote monitoring and management of access control systems, increasing their flexibility and effectiveness. Cloud-based solutions are also gaining traction, offering scalable and cost-effective options for businesses of all sizes. These technological advancements not only improve security but also streamline system management and integration with other smart technologies. As the technology continues to evolve, the EACS market is expected to benefit from more sophisticated, efficient, and adaptable access control solutions that meet the growing demands for security and convenience.Market Drivers:The primary drivers of the EACS market include heightened security concerns and the need for compliance with regulatory standards. Organizations across various sectors are increasingly investing in advanced access control solutions to safeguard their assets, sensitive information, and personnel. The growing frequency of security breaches and unauthorized access incidents further amplifies the need for reliable and robust security systems. Additionally, the trend toward smart buildings and the integration of IoT technology are driving market growth by offering more sophisticated and interconnected security solutions. Regulatory requirements related to data protection and physical security are also influencing the adoption of EACS, as businesses seek to meet these standards while ensuring the safety and security of their operations.Regional Insights:The EACS market shows varying growth patterns across different regions. North America and Europe lead the market due to their high adoption rates of advanced security technologies and stringent regulatory requirements. In these regions, the emphasis on high-security standards and the presence of major market players contribute to significant market growth. Conversely, the Asia-Pacific region is emerging as a key growth area due to rapid urbanization, industrialization, and increasing investments in infrastructure development. Countries such as China and India are witnessing a surge in demand for electronic access control systems as they modernize their infrastructure and enhance security measures. The diverse regional dynamics reflect varying levels of market maturity and growth opportunities, influencing the overall global market landscape.Download Sample Report Now: https://www.marketresearchintellect.com/download-sample/?rid=194769Market Segmentation:The EACS market can be segmented based on type, application, and technology. Key types include biometric systems, card-based systems, and electronic locks. Biometric systems are gaining popularity for their high security and convenience, while card-based systems remain widely used due to their affordability and ease of integration. Electronic locks offer versatile security options for both residential and commercial applications. In terms of application, the market serves commercial buildings, residential complexes, government facilities, and industrial sites. Each segment has unique requirements and preferences, driving the development of specialized solutions. Technology-wise, advancements such as IoT integration, cloud-based systems, and mobile access are shaping the market, offering improved functionality and user experience. Understanding these segments helps stakeholders tailor their offerings to meet diverse market needs effectively.Challenges:Despite its growth, the EACS market faces several challenges. High initial investment costs can deter small and medium-sized enterprises (SMEs) from adopting advanced access control solutions. Integration complexities, particularly with existing security infrastructure, can also pose hurdles for implementation. Additionally, concerns about data privacy and cybersecurity risks associated with connected systems may affect market adoption. The rapid pace of technological advancements requires continuous updates and upgrades, adding to the cost and complexity of maintaining access control systems. Addressing these challenges involves developing cost-effective solutions, enhancing system compatibility, and ensuring robust cybersecurity measures. Overcoming these obstacles is crucial for market players to successfully expand their customer base and capture emerging opportunities in the evolving security landscape.Competitive Landscape:The EACS market is characterized by intense competition, with numerous players vying for market share. Major companies include Honeywell, Johnson Controls, ASSA ABLOY, and Allegion, each offering a range of innovative products and solutions. These players focus on technological advancements, strategic partnerships, and mergers and acquisitions to strengthen their market positions. Additionally, emerging players and startups are introducing novel solutions, contributing to market dynamism and innovation. Competitive strategies involve differentiating products through advanced features, improving customer service, and expanding distribution channels. As the market evolves, companies must stay ahead of technological trends and customer demands to maintain a competitive edge and drive growth in a rapidly changing environment.Future Outlook:The future outlook for the EACS market is promising, with continued growth expected as security concerns and technological advancements drive demand. Emerging trends such as the integration of artificial intelligence (AI) and machine learning are likely to enhance system capabilities, providing more proactive and intelligent security solutions. The growing emphasis on smart cities and connected infrastructure will further propel market growth, as EACS plays a crucial role in modernizing urban environments. Additionally, increasing awareness of data privacy and security will lead to greater adoption of advanced access control systems. As the market evolves, stakeholders should focus on innovation, user experience, and addressing emerging security challenges to capitalize on future opportunities and sustain long-term growth.Geographic Dominance:
The Electronic Access Control System market exhibits significant geographic dominance, with North America and Europe leading due to their advanced infrastructure and stringent regulatory standards. North America, particularly the United States, holds a substantial share of the market, driven by high security concerns, technological advancements, and a robust presence of major EACS providers. Europe follows closely, with countries like the UK, Germany, and France investing heavily in security solutions due to strict regulations and high adoption rates. Meanwhile, the Asia-Pacific region is emerging as a major growth area, fueled by rapid urbanization, industrial expansion, and increasing investments in smart infrastructure. Countries such as China and India are witnessing rising demand for advanced access control systems as they modernize and enhance their security measures. The diverse regional dynamics highlight varying levels of market maturity and growth potential across the globe.
Electronic Access Control System Market Key Players Shaping the Future
The Electronic Access Control System market is significantly influenced by key players such as Honeywell International Inc., Johnson Controls International plc, ASSA ABLOY Group, Allegion plc, Schlage (a brand of Allegion), Bosch Security Systems, Tyco International Ltd., and HID Global (an ASSA ABLOY Group brand). These companies are at the forefront of technological innovation and market development, shaping the future of access control solutions through their advanced products and strategic initiatives.
Electronic Access Control System Market Segment Analysis
The Electronic Access Control System market is segmented based on By Type, By Application and Geography, offering a comprehensive analysis of the industry.
By Type:
Biometric Systems: These systems use unique biological characteristics, such as fingerprints, facial recognition, and iris scans, to provide secure access. They offer high security and are increasingly adopted in sensitive areas.Card-Based Systems: These systems use magnetic stripe cards, smart cards, or proximity cards to control access. They are popular due to their affordability, ease of use, and integration capabilities.Electronic Locks: These include keypads, smart locks, and other electronic mechanisms that can be controlled remotely or via electronic credentials. They are versatile and used in various residential and commercial settings.By Application:
Commercial Buildings: EACS in commercial buildings includes office complexes, retail spaces, and hospitality venues. These systems focus on managing employee access, visitor control, and security integration.Residential Complexes: Access control systems for residential complexes include apartment buildings and gated communities, emphasizing security and convenience for residents.Government Facilities: High-security access control solutions are used in government buildings, military bases, and other critical infrastructure to ensure tight security and regulatory compliance.Industrial Sites: EACS for industrial sites manage access to sensitive areas, protect valuable assets, and ensure safety compliance in manufacturing and industrial environments.By Geography:
North America: This region leads the market due to high adoption rates of advanced security technologies, stringent regulations, and a strong presence of major market players.Europe: Europe follows closely, with significant market activity in countries such as the UK, Germany, and France, driven by regulatory standards and high security needs.Asia-Pacific: The Asia-Pacific region is emerging as a key growth area, with increasing urbanization, industrial expansion, and investments in smart infrastructure driving demand for EACS.Latin America: Growth in Latin America is fueled by increasing security concerns and infrastructural development, with a growing adoption of electronic access solutions.Middle East and Africa: The market in this region is expanding due to rising security needs and infrastructure projects, with increasing investments in advanced access control technologies. Automotive And Transportation:
The Electronic Access Control System market within the automotive and transportation sector is experiencing notable growth, driven by advancements in vehicle security and the need for enhanced access management. In vehicles, EACS technology includes electronic locks, biometric systems, and keyless entry solutions that improve convenience and security for drivers and passengers. These systems are increasingly integrated into both commercial and personal vehicles, offering features such as remote access control, advanced theft prevention, and personalized settings. In the transportation sector, EACS is utilized for secure access to restricted areas within transportation hubs, including airports, train stations, and cargo facilities. This enhances the management of personnel and vehicle access, contributing to overall safety and operational efficiency. As the demand for smarter and more secure transportation solutions grows, the EACS market is expected to expand, driven by ongoing innovations and the increasing adoption of connected technologies.
Our related Reports
Global Automotive Pneumatic Valve Market is categorized based on Type (Engine Valves, Brake Valve, Thermostat Valve, Fuel System Valve, Solenoid Valve, Exhaust Gas Recirculation Valve, Tire Valve, Water Valve, AT Control Valve, Others) and Application (Engine System, HVAC System, Brake System, Others) and geographical regions
Global Automotive Pneumatic Comfort Seat System Market is categorized based on Type (Pneumatic Lumbar Support Systems, Pneumatic Seat Cushion Systems, Pneumatic Seat Back Systems, Massage Systems, Adjustable Seat Systems) and Application (Passenger Vehicles, Commercial Vehicles, Luxury Vehicles, Sports Vehicles, Public Transportation) and geographical regions
Global Automotive Pneumatic Disc Brake Market is categorized based on Type (Cast Iron, Others) and Application (Passenger Vehicle, Commercial Vehicle) and geographical regions
Global Automotive Pneumatic Disc Brake Market is categorized based on Type (Single-piston Pneumatic Disc Brakes, Multi-piston Pneumatic Disc Brakes, Caliper Pneumatic Disc Brakes, Rotor Pneumatic Disc Brakes, Drum-in-hat Pneumatic Disc Brakes) and Application (Passenger Cars, Commercial Vehicles, Racing Cars, Heavy-duty Trucks, Off-road Vehicles) and geographical regions
Global Antibacterial Nano Coatings Market is categorized based on Application (Silver Nanoparticle Coatings, Copper Nanoparticle Coatings, Zinc Oxide Nanoparticle Coatings) and Product (Medical Devices (Implants, Catheters), Food Packaging, Textiles, Healthcare Surfaces) and geographical regions
Global Antibacterial in Agriculture Market is categorized based on Type (Amide Antibacterials, Antibiotic Antibacterials, Copper-Based Antibacterials, Dithiocarbamate Antibacterials, Other Types) and Application (Foliar Spray, Soil Treatment, Other Modes of Application) and geographical regions
About Us: Market Research Intellect
Welcome to Market Research Intellect, where we lead the way in global research and consulting, proudly serving over 5,000 esteemed clients worldwide. Our mission is to empower your business with cutting-edge analytical research solutions, delivering comprehensive, information-rich studies that are pivotal for strategic growth and critical revenue decisions.
Unmatched Expertise: Our formidable team of 250 highly skilled analysts and subject matter experts (SMEs) is the backbone of our operations. With extensive training in advanced data collection and governance, we delve into over 25,000 high-impact and niche markets. Our experts seamlessly integrate modern data collection techniques, robust research methodologies, and collective industry experience o produce precise, insightful, and actionable research.
Diverse Industry Coverage: We cater to a wide array of industries, ensuring that our insights are both relevant and specialized. Our expertise spans: Energy, Technology, Manufacturing and Construction, Chemicals and Materials, Food and Beverages
Having collaborated with numerous Fortune 2000 companies, we bring unparalleled experience and reliability to meet all your research needs. Our proven track record reflects our commitment to excellence and client satisfaction.
Contact Us:Mr. Edwyne FernandesMarket Research IntellectCall Us on: +1 743 222 5439Email: [email protected]: https://www.marketresearchintellect.com/LinkedIn: https://www.linkedin.com/company/marketresearchintellectTwitter: https://x.com/intellectmr
Logo: https://mma.prnewswire.com/media/2483702/Market_Research_Intellect_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/electronic-access-control-systems-market-set-for-significant-expansion-with-projected-growth-to-usd-16-billion-by-2031-market-research-intellect-302267707.html
Artificial Intelligence
System-on-Chip (SoC) Market worth $205.97 billion by 2029 – Exclusive Report by MarketsandMarkets™
DELRAY BEACH, Fla., Oct. 4, 2024 /PRNewswire/ — The System-on-Chip (SoC) market is projected to grow from USD 138.46 billion in 2024 and is estimated to reach USD 205.97 billion by 2029; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.3% from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth of the System-on-Chip (SoC) market is driven with the increasing trend of SoC in automotive industry along with the adoption of IoT and connected devices that require SoCs to carry out real time processing. Moreover, the surging adoption of AI and machine learning technologies is likely to fuel the demand for system-on-chips.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=99622125
Browse in-depth TOC on “System-on-Chip (SoC) Market”
250 – Tables73 – Figures326 – Pages
System-on-Chip (SoC) Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 138.46 billion
Estimated Value by 2029
$ 205.97 billion
Growth Rate
Poised to grow at a CAGR of 8.3%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Core Count, Core Architecture, Device and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Rapid technological changes challenge SoC longevity
Key Market Opportunities
Growing penetration of AI PCs and GenAI smartphones
Key Market Drivers
Rising adoption of ADAS in autonomous vehicles to fuel the growth of automotive SoCs
By core architecture, RISC-V is projected to grow at a high CAGR for system-on-chip market during the forecast period
The market for System-on-Chips (SoC) for RISC-V architecture segment is expected to grow at highest CAGR during the forecast period. The RISC-V architecture is bound to grow at a higher rate in view of the flexibility, cost, and scalability advantages it has over others, driving wide adoption across diversified applications. The open-source nature of the architecture is one of the major growth drivers because it reduces licensing costs and accelerates innovation since customizations are allowed for use cases as per various needs. This flexibility is valuable in the emerging and high-growth sectors of AI, 5G, and IoT, where a solution that is tailor-made to complex requirements needs to be provided. For instance, in May 2024, Arteris, Inc. (US) and Andes Technology Corporation (Taiwan) partnered to develop the Andes Qilai RISC-V platform. It incorporates the high-performance RISC-V processor IPs from Andes Technology Corporation (Taiwan) and the FlexNoC interconnect IP from Arteris, Inc. (US). Their joint effort shows their efforts towards advancing RISC-V based SoC designs for a wide range of applications, which include AI, 5G, Networking, Mobile, Storage, AIoT, and Space. With open-source RISC-V model, such developments further continue to accelerate innovation and drive adoption in these high-growth areas, positioning RISC-V as the choice for future technology roadmaps.
The automotive segment in System-on-Chip (SoC) market will account for the high CAGR from 2024 to 2029
The SoC market for automotive segment will grow at highest CAGR during the forecast period. The SoCs integrated in automotive applications enable enhanced performance, reduced power consumption, and compact designs, which makes them essential for numerous vehicle systems. The automotive segment will experience growth due to the increasing adoption of advanced driver assistance systems (ADAS), infotainment systems, and the rising popularity of electric vehicles. EVs rely heavily on sophisticated electronics for battery management, powertrain control, and energy efficiency optimization, all of which require advanced SoCs. For instance, in June 2024, Intel Corporation (US) launched OLEA U310 SoC chip for automotive applications. It is developed to improve the performance of electric vehicles. This chip combines hardware and software in one SoC to enable seamless operation across various EV station platforms. They are designed to manage the complex systems within EVs. It ensures optimal performance, safety, and extended range. The increasing complexity of autonomous driving systems, along with the demand for safer and more reliable vehicles fuels the adoption of SoCs in the automotive industry, driving significant growth in this segment.
Inquiry Before Buying: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=99622125
Asia Pacific is expected to register the highest CAGR during the forecast period
The system-on-chip (SoC) industry in Asia Pacific includes economies such as South Korea, Japan, China, and India and Rest of Asia Pacific. The Rest of Asia Pacific countries include Australia, Singapore, the Philippines, Taiwan, Thailand, and Indonesia. There is a presence of leading SoC manufacturers in this region including MediaTek Inc. (Taiwan), Samsung (South Korea), Infineon Technologies AG (Germany), and Renesas Electronics Corporation (Japan). The Asia-Pacific region is still the biggest revenue generator in terms of SoC market globally due to the fast-growing consumer electronics and mobile device-related sectors. Other regions considered as major manufacturing centers in the world are China, South Korea, Japan, and India for making the latest smartphones, tablets, and other consumer electronic products that require state-of-the-art SoCs for delivering high performance, energy efficiency, and integrated functionalities. A highly and technologically advanced population in the region has always formed the basis for a sustained demand in terms of innovative and feature-rich devices, thereby showing sustainable growth in the SoC market. Automotive and industrial automation are another major sector driving the SoC market in Asia Pacific. This region contains some of the largest automobile manufacturers in the world, such as Hyundai Motor Company (South Korea), Toyota (Japan), and Tata Motors Limited (India). These car manufacturers are now putting SoCs into their automobiles so that they are equipped with ADAS capabilities, infotainment features, and autonomous driving technologies.
Key Players
Key companies operating in the System-on-Chip (SoC) companies are Qualcomm Technologies, Inc. (US), MediaTek Inc. (Taiwan), Samsung (South Korea), Apple Inc. (US), Broadcom (US), Intel Corporation (US), Advanced Micro Devices, Inc. (US), NVIDIA Corporation (US), HiSilicon (China), Microchip Technology Inc. (US), among others.
Get 10% Free Customization on this Report: https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=99622125
Browse Adjacent Market: Semiconductor and Electronics Market Research Reports &Consulting
Related Reports:
Field Programmable Gate Array (FPGA) Market Size, Share & Industry Trends Analysis Report by Configuration (Low-end FPGA, Mid-range FPGA, High-end FPGA), Technology (SRAM, Flash, Antifuse), Node Size (=16 nm, 20-90 nm, >90 nm), Vertical (Telecommunications, Data Center & Computing, Automotive) & Region – Global Forecast to 2029
Chiplet Market Size, Share, Statistics and Industry Growth Analysis Report by Processor (Field-Programmable Gate Array (FPGA), Central Processing Unit (CPU), Graphics Processing Unit (GPU), APU, AI ASIC Co-Processor), Packaging Technology (SiP, FCCSP, FCBGA, 2.5D/3D, WLCSP, Fan-Out) – Global Forecast to 2028
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact: Mr. Rohan SalgarkarMarketsandMarkets™ INC. 1615 South Congress Ave.Suite 103, Delray Beach, FL 33445USA: +1-888-600-6441Email: [email protected] Our Web Site: https://www.marketsandmarkets.com/Research Insight: https://www.marketsandmarkets.com/ResearchInsight/sos-companies.aspContent Source: https://www.marketsandmarkets.com/PressReleases/sos.asp
Logo: https://mma.prnewswire.com/media/1951202/4609423/MarketsandMarkets.jpg
View original content:https://www.prnewswire.co.uk/news-releases/system-on-chip-soc-market-worth-205-97-billion-by-2029—exclusive-report-by-marketsandmarkets-302267585.html
-
Artificial Intelligence7 days ago
Huawei Wen Tong: 6G Needs to Embrace AI for Shaping Future Network
-
Artificial Intelligence5 days ago
Queclink Unveils the GL601 Solar-Powered Asset Tracker for Seamless Intermodal Transportation
-
Artificial Intelligence6 days ago
Huawei Peer-Recognized as a 2024 Gartner® Peer Insights™ Customers’ Choice for Enterprise Wired and Wireless LAN Infrastructure
-
Artificial Intelligence6 days ago
Kazakhstan Government Delegation Visited SUPCON
-
Artificial Intelligence5 days ago
Five Women on Stars of Science Season 16 Lead the Charge
-
Artificial Intelligence5 days ago
SEMI Consortium to Develop Cybersecurity Strategy and Roadmap for the Semiconductor Industry in NIST Framework
-
Artificial Intelligence3 days ago
18 of the Top 20 Medtech Companies Partner with Veeva MedTech to Get Devices and Diagnostics to Patients Faster
-
Artificial Intelligence5 days ago
Fujitsu launches “Takane” – A large language model for enterprises offering the highest Japanese language proficiency in the world