M2M and IoT Market insights. Jan Höller Principal Researcher Ericsson

Transcription

1 M2M and IoT Market insights Jan Höller Principal Researcher Ericsson

2 Internet of Things Automotive Transport Utility Smart Cities Agriculture Health Vision: Things and Places as First Class Citizens on the Internet Monitoring and controlling real world objects provide smartness Meeting the needs of enterprises, Applications people and society Application domains are endless Application enablement The underlying technology is Internet connectivity embedded networked computing with sensors, actuators and tags People Vehicles Buildings Assets Ind env Resources Pub env Ericsson Internal Page 2

3 Internet of Things and M2M - Characterization M2M stove pipes one device per app proprietary solutions in-house IT connectivity focus industry specific technologies point solution oriented Internet of Things multi-purpose devices service enablement web paradigm apps migrate to cloud standardization driven open environment innovation oriented Ericsson Internal Page 3

4 Connected devices and M2M CONSUMER ORIENTED PROCESS ORIENTED Communication centric/ general purpose devices/ triple play Connected consumer electronics/ converged media and monitor/control Monitor and control CONNECTED DEVICES Ericsson Internal Page 4 M2M

5 M2M Value chain M2M VALUE CHAIN Device/Machine Connectivity Enablement Applications & Services Chip & Module Device / Machine Local NW SIM / MCIM Aggreg/ Intercon/ Roaming M2M BSS Service enablement M2M applications Build Customer Marketing & care distribution Operate INDUSTRY PLAYERS Ericsson Internal Page 5

6 M2M MARKET DRIVERS COST REDUCTIONS Improved Business Process efficiency Reduced operating costs Optimize supply chain and inventory Secure margins REGULATORY MANDATES European Union 80% smart meter penetration by 2020 European Union e-call in new cars by 2015 USA Smart meter adoption targets Brazil Anti-theft devices for new vehicles sold SUSTAINABILITY Political agenda s Green Life styles consumers & businesses Smart Everything GROWTH OPPORTUNITIES A growing range of successful M2M applications and business models Open innovation Falling costs, wider connectivity and maturing technologies Create new source of revenue in services Ericsson Internal Page 6

7 M2M connected devices Ericsson Internal Page 7 Source: Ericsson internal and compilation of various sources

8 Service Revenue Forecast Global, cellular segment Source: Beecham Research Ltd. Ericsson Internal Page 8

9 Service Enablement - Service groups forecast Key growth areas Application Development Tools Data Warehousing (sensor/device data) Source: Beecham Research Ltd. Service Revenue Growth 0,4 ARPUnit/USD 0,35 0,3 0,25 0,2 0,15 0,1 0,05 Auth/Acc Ctrl Conn Mgmt Dev Mgmt Dev Data Sec LBS Data Warehousingc Disaster Rec Emergency Suppt Enterprise SI Portal Svcs App Dev't Tools Year Ericsson Internal Page 9

10 Selected Vertical segments today TELEMATICS Connected cars used for safety and security, services and infotainment. 140 M METERING Meters to report consumption, mainly electricity. REMOTE MONITORING Sensors connected to assets are tracked and monitored in real-time. 40 M 33 M 71 M 25 M 49 M FLEET MANAGEMENT Vehicles can be managed and tracked through the path they go. SECURITY Connectivity used for home and small business security alarms. ATM / POINT OF SALES ATM and POS devices are connected to a centralized secure environment. 15 M 26 M 14 M 37 M M 17 M Ericsson Internal Page 10 Source: Cellular M2M Connectivity Services (ABI Research, Dec 2011)

11 Connected consumer electronics Consumer electronics is one of the fastest growing connected device categories NOTEBOOK TABLET MEDIA PLAYER 813 M 520 M 367 M 150 M 93 M 144 M GAMING DEVICE NETBOOK E-BOOK READER 82 M 86 M M 51 M M 105 M With consumer electronics, the business model is essential for how it is managed. For example, the difference between the Apple ipad and the Amazon Kindle from a product perspective is small, but the business models are very different. Should CCE be regarded as mobile broadband or M2M? Note numbers above include cellular connected and WiFi connected devices. Ericsson Internal Page 11 Source: CCE Devices Global Market Forecast (Strategy Analytics, Aug 2011)

12 Automotive Drivers Governments & Authorities Congestion fees Road Usage Charging Enterprise Insurance Diagnostics ecall Safety & Security Traffic Hazard warnings Intelligent Speed Adaptation Infotainment & Consumer desires POIs Personal Information Mgmt Eco Driving In-car entertainment Ericsson Internal Page 12

13 Growth Forecast for Annual Revenues from Embedded Telematics by Revenue-Type Services/Content Connectivity Hardware Annual Revenues (Billions ) Ericsson Internal Page 13

14 Connected vehicle cloud Dealer Automotive OEM Media Agencies Insurance Companies Driver & Owner Connected Vehicle Cloud Content Provider Service Provider Vehicle Fleet Company Ericsson Internal Page 14 Network Operator Repair Shop Support Center

15 Energy Market Transformation Policy and regulation New Technologies Aging Assets From Point of Load Administrators to Service Companies From Passive Consumers to Interaction & Transaction From Central, Static Infrastructure Administration to Distributed, Dynamic Network Operations From Technology Oriented & Proprietary to Interoperable & Standardized Architectures From Vertically Integrated Monopolies to Open Competitive Markets Competition Environment and Society Aging Workforce Ericsson Internal Page 15

16 GRID transformation TODAY ENERGY RESOURCES CENTERED Generation Transmission Distribution Consumer ONE ENERGY FLOW, ONE INFORMATION FLOW EXPECTED DISTRIBUTED AND PARTICIPATIVE Source: NIST Smart Grid Framework 1.0 Sept 2009 Non linear model More focus on customer concerns; quality, security of supply New market participants New management models; transparency and non discriminatory access. New products and services. BI-DIRECTIONAL ENERGY FLOW, N INFORMATION FLOWS Ericsson Internal Page 16

17 ICT as Key Enabler Markets View Markets, Players &Business Models Markets Operations Service Providers Aggregator Retailer/ Wholesaler Energy Market Clearinghouse ISO/RTO Participant Internet /e- Business RTO/ISO EMS Enterprise Bus RTO SCADA Transmission Ops EMS WAMS Enterprise Bus Transmission SCADA Distribution Ops DMS Demand Response Enterprise Bus Metering System Asset Mngt MDMS Distribution SCADA Utility Provider CIS Billing Internet /e- Business Third Party Provider Retail Energy Provider Home/ Building Manager Aggregator Others CIS Billing Domain Network Actor Market Services Interface Plant Control Systems Domain Gateway Actor Comms Path Generators Large Generation Comms Path Changes Owner / Domain Wide Area Network Substation LAN Substation Device Transmission Distribution Data Collector Substation Controller Electric Storage Field Area Network Field Device Distributed Generation Electric Storage Distributed Generation Energy Services Interface Meter Electric Vehicle Distributed Generation Premises Network Customer Customer EMS Customer Equipment Appliances Thermostat Infrastructures & intelligent devices Ericsson Internal Page 17 Source: NIST (2012)

18 Horizontal expansion - Smart Street Lights Radio backhaul Communication services Data from sensors and attenuators Light service EV charging: - Billing - Scheduling Ericsson Internal Page 18 Connectivity - Communication - Grid Source: Ericsson, Philips, TeliaSonera, Stockholm Stad joint study

19 Emerging Applications Consumer electronics Automotive Transport Retail Banking Environmental Infrastructures Connected CE Nomadic device integration Participatory sensing Social Web of Things Connected vehicles Goods transport and logistics Public transportation Multimodality Mobile and micro payments Retail logistics Consumer product life-cycle information Shopping assistance Pollution Air, water, soil Weather, climate Buildings Homes Roads, raiil Utilities Health Wellness Smart Cities Process ind Agriculture ICT for Smart Grid Water management Gas, oil and renewables Waste management Heating, Cooling Remote monitoring Assisted living Behavioral change Integrated solutions Treatment compliance Integrated environments Optimized operations Convenience, economics and sustainability Manufacturing Mining -Pulp Forestry Crops and farming Livestock and fisheries Ericsson Internal Page 19

20 Trend: M2M industry silos transforming into layers and cloud Trend multi-purpose devices service enablement web paradigm and SOA apps migrate to cloud standardization driven Applications App Enablement Connectivity Devices Benefits cost efficient devices viable device deployments large developer community new roles in the value network reaching the long-tail business inter-connect open market place of data and info Ericsson Internal Page 20

21 Service enablement its role in m2m Service Enablement in M2M Application management Authorisation / access control Content management Data management / warehousing Data security Device management End-user experience management Enterprise system integration Identity management Policy management Charging Ericsson Internal Page 21 Industry Specific Solutions / Applications Service Enablement Connectivity Management Network Source: Beecham Research Ltd., M2M Service Enablement Services, December 2011

22 Trend: M2M devices technologies go mainstream What IP in constrained devices Embedded Web Services web programming paradigm enterprise integration Development tools Momentum in industry and standardization Implications Disruption Commoditization Value shift to back-end Ericsson Internal Page 22

23 Trend: M2M data value on the rise What? More focus on data from M2M devices and its integration in Big Data Data warehousing capabilities new focus area in standards and operators Knowledge and understanding for automated monitor and control loops Implications New tools for data integration and analytics Next opportunity in service enablement Acting Data Integration Knowledge Understanding Ericsson Internal Page 23

24 Standards, regulations, policies, industry alliances Communications Applied M2M Applied systems perspective Enabling technology development Utility Transport Health Ericsson Internal Page 24 non-exhaustive

25 Selected standards efforts IETF set of protocols for constrained devices supporting both IP and Web of Things Network optimizations in 3GPP for M2M Service layer standardization in ETSI and onem2m Embedded and re-provisionable SIM in GSMA, ETSI and Global Platform Lightweight M2M DM in OMA...and then IP being embraced more widely ZigBee IP and SEP, also endorsed by NIST Z-Wave WiSUN Alliance,... Ericsson Internal Page 25

26 Summary Strong growth Device deployments Services and applications create the value Applications are numerous across segments Enterprise, society and people needs Imagination is the only limit to innovation Clear trends towards reducing technology fragmentation IP and Web in devices Horizontal systems approach with a common service layer Data and information centric tools of growing importance Ericsson Internal Page 26

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