DEFINING THE INTERNET OF THINGS AND IDENTIFYING KEY VERTICAL MARKET OPPORTUNITIES

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1 Information Analytics Expertise APRIL 2015 DEFINING THE INTERNET OF THINGS AND IDENTIFYING KEY VERTICAL MARKET OPPORTUNITIES John Byrne, Senior Principal Analyst

2 Internet of Things Overview Definition Agenda Market Size Key Application Segments Vertical Insights Automotive Medical Military & Aerospace Industrial Summary & Conclusions Q&A 2

3 Vertical Insights: Industrial Internet of Things Overview Definition Market Size Key Application Segments 3

4 Connected Device Hierarchy Internet of Things Electronic Connected Unconnected IP Addressable Non-IP Addressable Tethered to IP Device Closed Network All Objects Non- Electronic Tagged Internet of Everything Untagged Unconnected Objects: Desk, chair, soda can, fire hydrant, animal collar, shipping pallet, buildings, etc. Unconnected Electronic Devices: Calculator, streetlight, vending machine, coffee maker, blood pressure monitor, etc. Connected/Tethered Electronic Devices: Audio headset, printer, computer monitor, DVD player, licensed mobile radio unit, etc. IP-addressable Devices: Tablet PC, smartphone, Infotainment head unit, smart meter, EV charging station, home health hub, etc. Source: IHS

5 IoT Hierarchy Internet of Everything IP Addressable Devices Connectable Electronic Devices Internet Connectable Devices Internet of Things Unconnected Electronic Devices Unconnected Objects 5

6 IoT Market Segmentation Node Endpoint with limited intelligence (e.g. RFID tag, sensor) Infrastructure Devices which handle data (e.g. switches, routers) Controller Intelligent device with UI (e.g. smartphone, tablet) 6

7 IoT Technologies Wired WPAN WLAN WWAN Ethernet Coax Fiber Etc Bluetooth ANT ZigBee Etc x Cellular Satellite The Internet of Things will not be about one technology, but multiple technologies working together Different technologies are suited for different use cases billions of devices means plenty of connectivity opportunities for all 7

8 Connectable Devices (M) IoT Extended Forecast, IHS- Extended Forecast - Internet Connectable Devices - Installed Base & New Shipments 90,000 80,000 70,000 60,000 18,000 16,000 14,000 12,000 50,000 10,000 40,000 8,000 30,000 6,000 20,000 4,000 10,000 2, Automotive Communications Computers Consumer Industrial Medical Military & Aerospace Total Internet Connectable Devices Source: IHS 2014 IHS 8

9 Vertical IoT Application Segments Automotive Infotainment Under-the-hood Communications Consumer CPE Enterprise CPE Last-mile Access Backbone Mobile Handsets and Infrastructure Computers Desktop Server Portable Computing (Netbook, Notebook & Tablet) Medical Consumer Medical Imaging Other Medical Industrial Building Automation Commercial Transportation Retail Electronics Industrial Automation Lighting Power & Energy Security Test & Measurement Other Industrial & Commercial Consumer Home Appliance Home Automation Home Consumer Electronics PC Peripherals/Office Equip. Portable CE Smart Toys Sports & Fitness Other Consumer Military & Aerospace Commercial aerospace Military equipment 9

10 Vertical Insights: Industrial Industrial Segment Overview: Automotive Medical Military & Aerospace Industrial 10

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16 Millions of Units Industrial IoT Multifaceted Market Industrial Internet Connectable Devices - New Device Shipments 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Other Industrial Test & Measurement Security Power & Energy Military & Aerospace Medical Lighting Industrial Automation Retail Electronics Commercial Transport Building Automation Source: IHS 2014 IHS There has been a focus in recent years on driving increased intelligence into the network as part of a larger effort to make advancements in manufacturing, similar to the paradigm shift that occurred with the industrial revolution. From a broader IoT standpoint, initiatives driving Industrial Internet, Industry 4.0 and Advanced Manufacturing are important because they promote tight integration between suppliers and customers. 16

17 QUALCOMM: IOT OVERVIEW Summary & Conclusions 17

18 Summary & Conclusions The IoT is a rapidly growing phenomenon, offering opportunities throughout the value chain including for component/device suppliers, software platform providers, app developers, consulting/systems integration providers, etc. etc o o o >10 billion IoT devices are forecast to be shipped in 2019, with installed base approaching 50 billion connected devices by 2020 Nodes, and particularly sensors, will represent growing share of IoT volume Multiple technologies Cellular, low-power wireless, short-range, fixed, satellite Multiple vertical opportunities exist o o o Automotive, medical, and military/aerospace all represent numerous and diverse use cases Industrial segment includes numerous opportunities Smart cities Industrial automation Lighting Other verticals likely to adopt IoT solutions more aggressively in the medium-term; e.g., agriculture

19 Thank You and Q&A John Byrne Senior Principal Analyst, Internet of Things

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