IoT: New Opportunities for Semiconductor Industry Growth. Andrew C. Russell Vice President Marketing Greater China

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1 IoT: New Opportunities for Semiconductor Industry Growth Andrew C. Russell Vice President Marketing Greater China

2 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 2

3 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 3

4 Internet of Things Broadly Defined Any Machine to Machine (M2M) or Human to Machine (H2M) devices which can be connected to the www to communicate, exchange data and/or provide mechanisms for feedback and control Mobile Phones Instrumented plant and machinery Computers Gateways/Routers Automobiles equipped with www connectivity RFID devices Some examples 4

5 Evolving Technology Roadmap: The Internet of Things is in its Infancy Technology Reach Demand for improved SCM Performance RFID Tags for SCM Technology cost reductions drive 2 nd wave applications WWW connectivity and low cost geo-location technology Surveillance, security, transport, healthcare Vertical Applications Segments open up Miniaturization, energy efficiency and available spectrum Locating people and Objects - Tracking Low cost sensors Augmented Reality (e.g. Google Glass) Teleoperation telepresence; monitor, control and route remotely Autonomous Computing devices Time As IoT technology evolves, so will the range of potential applications Source: based on SRI Consulting Business Intelligence 5

6 IoT will Drive improved performance in two key Domains: 1.) Information + Analysis and 2.) Automation + Control Source: McKinsey Quarterly Report

7 IoT is Driving a New Wave of Economic Opportunity The wider Economy For Semiconductor and Software Industries Logistics Control and Automation Security Automotive Asset tracking and location Medical Banking Services IoT RxTx Modules and gateways to allow comms everything will be connected ( communicating with things ) Embedded Applications Software for IoT modules ( doing stuff with things ) Cloud Services and web based applications s/ware incl. secure M2M payment systems ( capturing data from things ) Data Analysis and metrics s/ware ( analyzing things ) Applications boards and Development tools ( tools to design things ) 7

8 IoT Monetization: eco-system standardization and applications proliferation (IP) Monetization Potential 10 x IoT RxTx modules Small Closed P2P Apps Low IoT technology capability already here, but applications and usage are NOT ubiquitous only about 1% of connectable devices are attached to the www 2. IoT Enabled Applications boards and Products Mobile Connectivity 3. WWW IoT Connectivity +Apps on Android, ios, Linux etc Ubiquity Index 4. IoT Cloud services based applications For IoT technology this application space is very new, probably maturing in timeframe Cloud Integrated Apps To achieve Level 5 (Infrastructure level systems incorporating fully autonomous systems gathering data, analysis, control) and the full monetization potential* of IoT, requires all the levels below to be in place and ubiquitous We can conclude that as of today, IoT is in its infancy, with decades of high growth still to come 5. Top Tier IoT Systems solutions covering whole cities/regions time frame Infrastructure Level Systems High * According to Cisco, potentially $14 Trillion 8

9 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 9

10 By 2020 there will be between 20 Billion* and 50 Billion** IoT nodes Top Connected Devices We May See in 2020 & Their Estimated Values Connected Car Clinical Remote Monitoring Assisted Living Home & Building Security Pay-As-You-Drive Car Insurance New Biz. Models for Car Usage Smart Meters Traffic Management Electric Vehicle Charging Building Automation $600 billion $350 billion $270 billion $250 billion $245 billion $225 billion $105 billion $100 billion $ 75 billion $ 40 billion Source: PC Today, April % Automotive related 29 % Home / Building related * Ericsson ** Cisco 10

11 Convergence in Three Key Domains Drives Adoption: Sensors & MCU, Network Stacks & the Cloud Sensors & MCU Low cost IC based wireless connectivity + Cost effective 32 bit MCU s for embedded applications + Silicon based sensors +GPS +Mobile Phones Network Stacks & Software IPV6 + Robust, mature API driven networking stacks (JenNet-IP, Zigbee) + Mature Development tools networking and embedded applications development Cloud Computing & WWW Internet access is global + Cloud Services + Remote data access and control easy to implement + Emergence of new business models leveraging all the key elements 11

12 Implementation at the Practical level: A Probable Market Development Model Key Enabler for Intelligent distributed apps and Big Data Gateway: Required to provide www connectivity 3 rd party apps developers: Any OS, and in many end market applications and segments May be the same entity, or independent 3 rd party Hardware developers in many application segments and end markets 12

13 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 13

14 IoT: Industry Projections and Figures IoT is a disruptive technology of the same scale as the industrial revolution and the internet revolution: huge social and economic impact IoT has the potential to benefit up to 46% of the global economy ($32 Trillion) GE and World Bank Study M2M revenues are currently $23Bln and growing at 30% a year a figure dwarfed by the growth wave still to come in attached devices, services and efficiency savings Only about 1% (12-13 billion devices) of all potential IoT nodes are currently connected to the WWW Estimates place the upper potential figure at over 1 trillion devices - about 150 nodes per population head 14

15 IoT is Driving the Next Semiconductor Growth Wave Bringing the industry to over $400Bn Semiconductor industry revenue, bn USD Smartphone and tablet and doubling IP device volumes Connected devices in use, bn Units Machine-2-machine (M2M) 50 PC, laptop, Smartphones Personal computer Cellphone Mainframes Driver Computer Smartphone M2M Source: WSTS (extrapolated after 2011), Cisco, BBC, Gartner, GSMA, OECD 15

16 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 16

17 JenNet-IP Wireless Networking Wireless networking for the Internet of Things (IoT) IPv6 addresses for every node Standalone mode for simple remote control Connected mode for internet control Using IEEE and IETF standards IEEE IETF IP, UDP, 6LoWPAN Based on proven JenNet networking layer Self healing tree network JIP Application layer dedicated for low power devices Similar to SNMP, using fewer resources Standard device types provide interoperability Connected lighting applications available initially Provides whole house coverage Extending applications to cover IoT Uses JN5168 single chip wireless microcontroller JIP 17

18 Advanced 32 bit RISC MCU s equipped with high performance wireless connectivity and peripherals for IoT applications 18

19 JenNet-IP JN516x IoT Wireless ucontroller Hardware Platform 19

20 JN5168 Evaluation Kit Two expansion boards with Sensors and buttons Cisco Router Capacitive touch remote control 4 base boards + lighting expansion boards USB Dongles LCD expansion board Remote programming board The JenNet-IP Evaluation Kit comes pre-configured to run a networked lighting demo to help engineers kick start network development. The Eval Kit supports any IoT module end application development. The kit includes a Gateway/Router to support www access 20

21 Easy Connection to the WWW through a Low Cost Gateway Bridge Reference Design Leverages existing Router plugs into Ethernet port on a standard router Allows communication with up to 500 JenNet-IP IoT nodes Low cost, NXP based ARM design On board facility for RFID Ref design pack incl. Gerbers, Software and BOM available FOC from NXP 21

22 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 22

23 The Smarter Home Talking to the Internet Distributed electricity generation and storage Home network Displays Wind Turbine Home displays TV, Computer In-Home Energy Display Independent service providers Solar Panel IP network Security Utility Data centers Home Gateway Light Appliances Sensors Breakers Valves Smart Water Smart metering devices Smart Gas Smart Heat Smart Elec. Temperature Smart home devices Blood pressure meter Glucose Assisted meter Living Healthcare devices Thermometer 23

24 In-Home Low Power Wireless Network An IP address for every thing Android / Apple App JenNet-IP Wireless Network WiFi Internet USB- JenNet-IP bridge Smart Plug Load Control & Energy Monitoring Web Interface Capacitive Touch Remote 24

25 A Typical Commercial LED Fixture Installation 1. A lighting driver module (open board or housed) is located in or close to the fixture Driver modules are available commercially that can take PWM signal and/or 0-10V analog signal for dimming and on/off control These types of drivers would for example be used with DALI for lighting control 2. A Lighting Fixture that contains the LED light source mounted on a heatsink (called light engine ) with a lens or light filter; screws into ceiling or on wall 110/220 VAC Dimming on/off control inputs 0-10V Analog PWM 0V 1. LED Driver Module with Dimmer Input PWM, voltage or const. current Drive 2. Fixture with LED Light Engine 25

26 ... becomes a Smart Lighting Solution with the addition of a low cost JenNet-IP IoT module 3. JenNet-IP IoT Lighting Module JenNet-IP JN516x Chip Basic circuit to convert JN516x I/O output to 0-10V and PWM Small 1.5W power supply 110/220 VAC 0-10V Analog PWM 0V 1. LED Driver Module with Dimmer Input Antenna (PCB, wire or plug-in) Plastic enclosure (could be bare board in certain applications) Leverages existing commercial LED (or other) lighting driver module to create a smart lighting network Fast time to market retrofit and new build Low cost 3. APTOS JenNet- IP IoT Module PWM, voltage or const. current Drive 2. Fixture with LED Light Engine 26

27 Agenda The Internet of Things ( IoT ): An Exciting, Disruptive Technology and Application Space IoT Adoption Model and Market Development IoT: Industry Projections and Figures NXP JenNet-IP & Zigbee Wireless Networking Ecosystem Applications Examples: Home Networking and Commercial Building Automation - Lighting Executive Summary 27

28 NXP IoT Executive summary The IoT application space is in its infancy: there will be a rapid and sustained increase of up to 50 Billion* in IoT nodes in the coming years With NXP JenNet-IP, any object or device can have an IP address IoT means locating things, control and data can be moved from any device to any other device or system globally via the www, opening up new and exciting applications IoT Monetization rests on two key pillars: eco-system maturation and standardization and application proliferation (IP) Key components in the eco system: JenNet-IP IoT empowered I/O modules, Gateways, Cloud Services and 3 rd Party Apps NXP JenNet-IP is the perfect solution for IoT end module applications: runs on a low power 32 bit RISC based MCU with comprehensive set of hardware and software development tools, including low cost gateway reference design for www connectivity * Cisco Estimate for

29 Thank you! 29

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