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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST [email protected] MarketResearch.com

2 INTERNET OF THINGS MARKET ( ) By Communication Technology (Zigbee, Z-wave, Bluetooth, Wi-Fi, NFC, RFID), Application Vertical (Building Automation, Consumer, Wearable Electronics, Industrial, Automotive & Transportation, Agriculture) & Geography (Americas, EMEA, APAC) MarketsandMarkets

3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides mult i-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers thirteen industry verticals, including advanced materials, automotive and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets Sample Pages 2

4 1 INTRODUCTION 1.1 OBJECTIVES To define, classify, and quantify the Internet of Things (IoT) market To analyze the global Internet of Things application market with a special focus on the high-growth areas, such as building automation, consumer, wearable electronics, industrial, and automotive segments T o perform an impac t analysis of the market dynamic s on the factors that are currently driving and restraining the growth of the market, along with their impact in the short, medium, and long-term landscapes To use the Porter s five forces to gauge the entry-barriers to this market, market life cycle analysis along with technology and market roadmaps, to study the evolution & timelines of Internet of Things technologies and their respective markets To provide illustrative segmentation, analysis, and projection of the main geographical markets To project the future of each type of technology from both, technical and market oriented perspectives with roadmaps To project the consumption of each type of product in the market, pertaining to the various applications, in terms of value as well as volume, for the next seven years To perform a detailed pricing & cost analysis for the emerging products in the Internet of Things landscape, along with value & volume-based projections To study, in detail, the competitive landscape, with identification of the key players along with a market share analysis with individual revenue, market shares, and market share rankings To analyze the competitive intelligence from the company profiles, using key player strategies, and game-changing developments such as product launches and acquisitions MarketsandMarkets Sample Pages 3

5 To study the complete value chain, allied industry segments, and perform a value chain analysis of the global Internet of Things landscape 1.2 REPORT DESCRIPTION The term Internet of Things, from its early introduction in 1990s by Mark Weiser, has evolved greatly, and now has taken the center stage. The potential benefits from technologies associated with the Internet of Things (IoT) lies in the intersection of multiple capabilities. This report, based on the extensive research study on the Internet of Things market, is aimed at identifying the main application verticals, where the Internet of Things is going to bring about a game-changing revolution in the years to come; particularly in segments such as, building automation, consumer, wearable electronics, industrial, automotive & transportation, and agriculture. The building automation application comprises markets such as smart HVAC control, lighting control, security & access control, and other IoT-enabled products. Consumer applications cover various consumer-operated electronic devices such as tablets, smartphones, and smart TVs. The segment on wearable electronics covers the entire wearable electronic market, categorized in terms of components; products such as wrist-wear, eye-wear, foot-wear, neckwear, and body-wear; and applications. The industrial application segment includes smart grid devices and components along with wired and wireless field devices in the industrial network. The automotive & transportation application segment covers two of the rapidly evolving and emerging Internet of Things applications, namely, connected cars and intelligent transportation system. Agriculture, the final application segment discussed, covers precision farming. Various types of wired and wireless communication technologies, standards and protocols such as ZigBee, Bluetooth, EnOcean, Z-Wave, Wi-Fi, NFC, RFID, DALI, NEMA, KNX, Ethernet have been discussed in this report. The report covers the entire spectrum of the market, along with the sub-segments, through extensive and detailed classifications. This report projects the market size for the Americas, EMEA and APAC, in terms of value. The size of various application- and region-wise markets and submarkets of IoT, in terms of value & volume, is estimated and projected till MarketsandMarkets Sample Pages 4

6 IoT applications such as smart meter, smart plug, connected cars, wearable technology are evolving and will further drive opportunities for Internet of Things. Heavy global R&D Investments and government funding in IoT research projects are driving the growth of the IoT market ; especially in the U.K., China, and Japan. This report profiles all the prominent companies involved in the field of Internet of Things such as ARM Ltd.(U.K.), Texas Instruments Incorporated (U.S.), Nest Labs (U.S.), Rockwell Automation, Inc. (U.S.) Axeda Corporation (U.S.), Cisco Systems, Inc. (U.S.), Dassault Systemes (France), Ecobee Inc. (Canada), Intel Corporation (U.S.), Fujitsu Ltd. (Japan), and GainSpan Corporation (U.S.). 1.3 MARKETS COVERED The scope of the report primarily encompasses the main application verticals of Internet of Things, various technologies, and along with the region-wise analysis. Each of the segments is further divided into various sub-segments. For example, application vertical is split into building automation, consumer, wearable electronics, industrial, automotive & transportation, and agriculture. The following tree charts an overview of the segmentation, in t erms of applications. FIGURE 1 INTERNET OF THINGS MARKET SEGMENTATION, BY APPLICATION Application Verticals Building Automation Consumer Wearable Electronics Industrial Automotive & Transportation Agriculture HVAC Controls Lighting Controls Security & Access Controls Other IoT Enabling Devices Desktop PCs Laptops Tablets Set-Top Boxes Gaming Consoles Smart TVs Blu-Ray Players Digital Cameras Wireless Audio Devices Wearable Electronic Components Wrist-Wear Eye-Wear Foot-Wear Neck-Wear Body-Wear Other-Wear Smart Meters Substation Automation Industrial Network RFID Systems Control Devices Connected Cars Intelligent Transportation Systems Precision Farming Smartphones Home Theatre Projectors Source: MarketsandMarkets Analysis MarketsandMarkets Sample Pages 5

7 On the other hand, technology-based segmentation includes wired and wireless technologies. The following tree chart summarizes the segmentation based on technology. FIGURE 2 INTERNET OF THINGS MARKET SEGMENTATION, BY TECHNOLOGY Communication Technologies Communication Protocols, Standards & Wired Technologies Wireless Technologies Digital Addressable Lighting Interface (DALI) National Electrical Manufacturers Association (NEMA) KNX Ethernet LonWorks BACnet Power Line Communication (PLC) Zigbee Bluetooth EnOcean Z-Wave Wi-Fi NFC RFID ANT Cellular Source: MarketsandMarkets Analysis Both the figures shown above, throw light on the various aspects covered in this research study on the Internet of Things market. Three import ant aspects of the complete market are covered in this report; they are, the market analysis, market segmentation, and the market landscape. The region-wise market of IoT has been segmented into to the Americas, EMEA and APAC. MarketsandMarkets Sample Pages 6

8 1.4 STAKEHOLDERS Raw material and manufacturing equipment suppliers Semiconductor wafer vendors Fabless players EDA and IP core vendors Foundry players Original Equipment Manufacturers (OEMs) (end-user applications or electronic product manufacturers) ODM and OEM technology solution providers Distributors and retailers Research organizations Technology standard organizations, forums, alliances and associations Technology investors OS vendors Content providers Software providers 1.5 RESEARCH METHODOLOGY In the extensive secondary research process, several hundreds of secondary sources such as certified publications, and articles from recognized authors; whitepapers, annual reports of companies, directories, and databases were used to identify and collect information useful for extensive technical and commercial study of this global market. In the primary research process, the primary sources industry experts such as CEOs, vice presidents, marketing director, technology and innovation directors, and related key executives from various key companies, and organizations in the industry have been interviewed to obtain and verify both, qualitative and quantitative information for this research study. Secondary research was mainly used to obtain key information about the industry s value chain, market s monetary MarketsandMarkets Sample Pages 7

9 chain, total pool of key players, the end-user applications for each product, market classification and segmentation according to industry trends to the bottom-most level, geographical markets, and key developments from both market and technology oriented perspectives. After the complete market engineering process with calculations to derive the market statistics, market size estimations, and market projections, the market crackdown and data triangulation methods were implemented. The methodology for these quantitative data processes is explained in the sections below. The crucial information comprised critical numbers arrived at, segmentation types, industry trends, key players, competitive landscape of the market of each product and component, market dynamics such as drivers, restraints, opportunities, burning issues, and winning imperatives, key player strategies, and technology roadmaps. For the market engineering done for the total market crackdown, top-down and bottom-up approaches were used extensively, along with several data triangulation methods to perform market estimation and projection for all the overall segment and sub-segment markets listed in this report. Extensive qualitative and further quantitative analysis was also done from all the numbers arrived at, in the complete market engineering process, to list the key information throughout the report. MarketsandMarkets Sample Pages 8

10 The following illustrative figure shows the market research methodology applied in making the report on the Internet of Things market. FIGURE 3 MARKET RESEARCH METHODOLOGY Secondary Research Value Chain Key Players End-user Applications Market Classification Annual Reports of Key Industry Players Geographical Markets with their Market Shares Market Trends Technological Developments Primary Research Market Crackdown Numbers Validation Competitive Landscape Validation Market Dynamics Validation Top-Down Approach Bottom-Up Approach Data Triangulation Qualitative & Quantitative Analysis Market Segmentation Market Estimates Market Forecasts Source: MarketsandMarkets Analysis MARKET SIZE ESTIMATION Both, top-down and bottom-up approaches were used to estimate and validate the market sizes of the different product and application markets, and for the market size estimation of the various other dependent sub-markets in the overall Internet of Things market. The research methodology used to estimate the market size has been discussed below. MarketsandMarkets Sample Pages 9

11 The key players in the market were identified through secondary research. The formulation of the industry value chain, and estimation and projection of market size, in terms of value, was done through primary and secondary research. This includes a study of the financial reports of top market players and extensive interviews for key opinions from leaders such as CEOs, directors, and marketing executives. All the percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis in this report. The following figure shows an illustrative representation of the Internet of Things market size estimation process implemented in this research study in a consolidated format. FIGURE 4 MARKET SIZE ESTIMATION Top-down Approach Individual product and application markets Arrived at overall market Percentage split of market segments Market segments by geography, technology & applications MARKET SIZE OF INTERNET OF THINGS MARKET Market size, in terms of value & volume, with respect to Individual product & application Company-wise revenue Percentage split of subsegments Bottom-up Approach Source: MarketsandMarkets Analysis MarketsandMarkets Sample Pages 10

12 To begin with, the bottom-up procedure was implemented to arrive at the overall market sizes of individual application segments from the unit shipments of each type of product that came under those applications. Besides, revenue of the key players (companies) and their market shares in the respective product or application market are determined. Calculations based on the revenue of key companies, their unit shipments, and the market shares led to the overall market sizes of different segments in the Internet of Things landscape. These overall market sizes were used in the top-down procedure to estimate the market sizes of all the other individual markets in the market segmentation by communication technology, application, and geography via percentage splits from secondary and primary research. MarketsandMarkets Sample Pages 11

13 2 MARKET OVERVIEW 2.1 INTRODUCTION Internet of Things is a network infrastructure that links virtual and physical objects by making use of data capture and communication capabilities. It comprises a world where physical objects and information network are immaculately integrated. With this, such physical objects and network solutions become active participants in business processes. These objects contain embedded technology that interacts with internal states of components or the external environment. Hence, they sense and communicate with various technologies, thereby providing a variety of solutions to the users. In other words, Internet of Things is the network accessed through the Internet that emerged as the standard, using which billions of computers and other devices are currently interconnected. The network enables unprecedented exchange of information. The recent advancement s in technology have reached a level where it is now possible to equip objects with intelligence and enable them to be convenient media for communication. The Internet of Things relies on approaches such as ubiquitous and pervasive computing, Internet Protocol, communication technology, embedded devices, and their applications. IoT provides services such as interaction with smart objects over the Internet, querying and changing their state and the information associated with them, while considering the security and privacy issues simultaneously. There are many companies and organizations across the globe, especially the big firms of the technology sector, which are now working on this concept. Semic onductor & electronics companies such as ARM Ltd. (U.K.), and networking companies such as Cisco have invested heavily in research and development, and expect that many IoT-based products and solutions will be in t he c ommerc ial market, with mass shipment, within next five to six years. MarketsandMarkets Sample Pages 12

14 FIGURE 5 OVERVIEW OF THE INTERNET OF THINGS MARKET Source: MarketsandMarkets Analysis This section mainly introduces the IoT market with qualitative insights and details related to the market and the IoT industry. As shown in the figure above, this section of the report deals with the primary concerns of the market, which includes an introduction to the IoT market, market definition, history and evolution, trends in the market, the future of IoT, the ecosystem of IoT, market dynamics, burning issues, winning imperatives, value chain analysis of the IoT market, and the Porter s Five Forces analysis of this market. MarketsandMarkets Sample Pages 13

15 3 INTERNET OF THINGS MARKET, BY GEOGRAPHY 3.1 INTRODUCTION The global Internet of Things market is mainly segmented into three geographical regions, namely, the Americas, EMEA, and APAC. Out of these regions, APAC accounted for the largest share in the Internet of Things market. This is mainly due to the fact that the majority of the global population is concentrated in the Asia Pacific region. Naturally, the number of new m2m connections per year, demand for smart consumer devices, and need for industrial revolution is higher in this region. Given the large population in some of the developing economies in APAC, coupled with related issues such as of healthcare and energy management, the Internet of Things applications seem to have more opportunities to improve the standard of living and revolutionize the industrial sector in the region. However, the Americas are also projected to grow at a CAGR of % from 2014 to 2020, mainly due to the strategic initiative taken by many big American technology firms. As the U.S., which is a highly developed and technologically advanced country, is a major contributor to the IoT-related development in the Americas, the market in this region for Internet of Things is ever increasing. The IT giants, leading semiconductor companies, and even the governments across the globe seem to have realized the potential of the Internet of Things. There are series of collaborations and partnerships happening around the world, all across the value chain. In 2014, a leading telecommunication player AT&T (U.S.) partnered with IBM (U.S.) to develop machine-to-machine solutions for the Internet of Things, specifically for things such as smart cities. In October 2013, General Electric (U.S.) partnered with AT&T (U.S.) to allow General Electric s machines to connect to the internet so as to make their appliances smarter and more efficient. In December 2013, The AllSeen Alliance was launched as a standard for the Internet of Things, where Qualcomm (U.S.) signed over the source code for its AllJoyn protocol to the Linux Foundation to create a new standard for the Internet of Things. In another development in 2014, Rockwell Automation (U.S.) formed a strategic partnership with Cisco Systems Inc. MarketsandMarkets Sample Pages 14

16 (U.S.) to combine its automation with Cisco s networking infrastructure; thus helping manufacturers improve their business performance. FIGURE 6 INTERNET OF THINGS MARKET SIZE, BY GEOGRAPHY& APPLICATION ($BILLION) & MARKET SHARE (VALUE), BY GEOGRAPHY, 2013 APAC Americas Revenue ($Bilion) Global Internet of Things Market Revenue: $ Billion Revenue ($Bilion) EMEA % % % Americas EMEA APAC Revenue ($Bilion) Source: MarketsandMarkets Analysis MarketsandMarkets Sample Pages 15

17 TABLE 1 INTERNET OF THINGS MARKET SIZE, BY GEOGRAPHY, ($BILLION) Region CAGR% ( ) Americas EMEA APAC Total Source: MarketsandMarkets Analysis The market for IoT is projected to grow from $ billion in 2013 to $ billion by 2020, at an estimated CAGR of % from 2014 to APAC, which constitutes of countries such as China, India, and Japan, accounted for the largest market of $ billion in This is projected to reach $ billion by 2020, at an estimated CAGR of % from The initiatives taken by the government to encourage the concept of Internet of Things in various applications such as energy & power, industrial, and consumer segments are drawing much attraction from the key players. The Americas accounted for the second-largest market share of % in 2013, and is estimated to be valued at $ billion in 2014, at an estimated CAGR of % MarketsandMarkets Sample Pages 16

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