The Rise of M2M Devices

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1 The Rise of M2M Devices Heterogeneous Uses/Heterogeneous Requirements Robert Pepper Vice President, Global Technology Policy 3 rd BEREC Stakeholder Forum 15 October 2015

2 Cisco Visual Networking Index (VNI) 10 th Year Global IP Traffic Growth & Service Adoption Cisco VNI Forecasts are complementary and statistically aligned. Fixed & Mobile IP Traffic Forecast Service Adoption Forecast Residential Mobile Business 2

3 VNI Projections and Actuals (Global) Actual Growth Has Been Within 10% of Projected Growth 40% 35% 34.2% 35.6% Projected in 2010 Actual Compound Annual Growth Rate (CAGR) 30% 25% 20% 15% 10% 5% 0% CAGR Source: Cisco VNI Global IP Traffic Forecast,

4 Global Connected Device Growth by Type By 2019, M2M Connections Will be More Than 40% of Total Connections 30 Billions of Devices Other (4.9%,3.6%) Tablets (3%,4%) PCs (11%,6%) TVs (11%,12%) Non-Smartphones (32%,13%) Smartphones (15%,19%) M2M (24%,43%) * Figures (n) refer to 2014, 2019 device share Source: Cisco VNI Global IP Traffic Forecast,

5 Europe Connected Device Growth by Type By 2019, 50% of Total Connections in Europe Will be M2M Billions of Devices Other (8.4%,8.0%) Tablets (4%,5%) PCs (13%,12%) TVs (12%,13%) Non-Smartphones (19%,15%) Smartphones (14%,15%) M2M (29%,50%) * Figures (n) refer to 2014, 2019 device share Source: Cisco VNI Global IP Traffic Forecast, *Note Europe defined as Western Europe + CEE, excluding Russia

6 Europe Internet Traffic by Device Type M2M Traffic Only About 3% by Exabytes per Month Other (0.2%,0.2%) Non-Smartphones (0%,0%) M2M (1%,3%) TVs (8%,7%) Tablets (6%,29%) Smartphones (7%,25%) PCs (79%,35%) * Figures (n) refer to 2014, 2019 device share Source: Cisco VNI Global IP Traffic Forecast, *Note Europe defined as Western Europe + CEE, excluding Russia

7 Europe IP Traffic & Service Adoption Drivers By 2019: More Internet Users Million 596 Million IP Broadband Growth Drivers More Devices & Connections Faster Fixed Broadband Speeds Billion 4.7 Billion Mbps 46.9 Mbps More Video Viewing % of Traffic 78% of Traffic Source: Cisco VNI Global IP Traffic Forecast, *Note Europe defined as Western Europe + CEE, excluding Russia

8 Global M2M Connections / IoE Growth By Vertical Connected Home Largest, Connected Health Fastest Growth 12 Wide Range of Device Requirements Billions of M2M Connections *Other includes Agriculture, Construction & Emergency Services 4% 7% 8% 11% 17% 48% Other* (38.2% CAGR) Energy (31.9% CAGR) Manufacturing & Supply Chain (8.9% CAGR) Retail (10.5% CAGR) Connected Cities (28.2% CAGR) Connected Health (49.4% CAGR) Connected Car (37.3% CAGR) Utilities (21% CAGR) Connected Work (Ent Mgmnt) (29.4% CAGR) Connected Home (23.1% CAGR) Source: Cisco VNI Global IP Traffic Forecast,

9 Connected Home Connected Work Utilities Connected Car Connected Health Home automation Building security Network equipment printers + Network infrastructure routers + White goods Tracking applications Household information devices Office building automation Building security Office equipment printers + Routers + Commercial appliances Electric vehicle charging Smart metering Fleet management In-vehicle entertainment systems, emergency calling, Internet Vehicle diagnostics, navigation Stolen vehicle recovery Lease, rental, insurance management Health monitors Assisted living medicine dispensers + Clinical trials First responder connectivity Telemedicine Connected Cities Retail Manufacturing & Supply Chain Energy Other Environment and public safety closed-circuit TV, street lighting, waste removal, information + Public space advertising Public transport Road traffic management Retail goods monitoring and payment Retail venue access and control Slot machines, vending machines Mining and extraction Manufacturing and processing Supply chain Warehousing and storage New energy sources monitoring and power generation support apps Smart grid and distribution Micro-generation generation of power, by residential, commercial and community users on their own property Agriculture livestock, soil monitoring, water and resource conservation, temperature control for milk tanks + Construction: Site and equipment monitoring Emergency services and national security 9

10 What is the IoE Opportunity in Europe? 4.3T Private Sector 6.3T * Economic Value Based on 61 Real-World Use Cases Value Sources 2.1T Public Sector Germany 914B France 729B UK 706B Italy 544B Spain 349B 10

11 What is the IoE Opportunity in Germany? 736B Private Sector 914B Economic Value Based on 61 Use Cases 177.8B Public Sector Value Sources Smart Factories 121B Physical/ Logistical Security 61B Supply Chain Efficiency 37B Smart Grid 31B Smart Buildings 19B Others: Connected Commercial Vehicles, Connected Healthcare, Smart Parking, Smart Street Lighting, Public Transport, etc. 11

12 What is the IoE Opportunity in Portugal? 43.7B Private Sector 62.2B Economic Value Based on 61 Use Cases 18.5B Public Sector Value Sources Smart Factories 4.7B Smart Grid 3.3B Physical/ Logical Security 3.2B Supply Chain Efficiency 2.2B Connected Commercial Vehicles 1.1B Others: Connected Healthcare, Smart Parking, Smart Street Lighting, Public Transport, Smart Farming, etc. 12

13 80% 70% 60% 50% 40% 30% 50% M2M Share of Devices (2019) 68% 72% 59% 61% 58% 61% 55% 54% 52% 45% 47% 48% 46% 41% 31% Global (43%) 20% 10% 17% 13% 0% Source: Cisco VNI Global IP Traffic Forecast,

14 Key Takeaways IP-enabled M2M devices fastest growing Wide range of M2M devices for wide range of uses Majority non-mobile Heterogeneous device requirements E.g., distance, power, bandwidth, duration, latency Heterogeneous environments Heterogeneous spectrum requirements Heterogeneous regulatory requirements/regulators 14

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