define the future of the industrial iot - eit digital · 1) augmented reality; 2) s. henderson and...

Etienne Scholl

5G: Business beyond communication

Define the future of the industrial IoT

This isEricsson

Etienne Scholl

Define the future of the industrial IoT

The 5G Business Potential, second edition, executive summary | Commercial in confidence | © Ericsson AB 2017 |

Ericsson at a glance

42,000

24,100

62,400

2.5 billion

1 billion

180

111,000

Subscribers

managed by us

Subscribers

supported by us

Services professionals Employees

Countries with customers

R&D Employees

Patents

In R&D

222,6 B. SEK Net Sales

31,6 B. SEK

NETWORKSCreate one network for

a million different needs

ITTransform IT to accelerate

business agility

MEDIADelight the TV

consumer every day

INDUSTRIESConnect industries to

accelerate performance

Full year 2016 figures


More connections

190020102000

10

30

50

15 years

26 billion connected devices

25 years

5 billion connected people

100 years

1 billion connected places

20

40

Con

ne

ctio

ns (

bill

ion

)

2020

Our vision

50 billion connected devices


Digitalization as a result of global mega trends

Source: Arthur D. Little

Scarcity and stability of resources Rise of emerging economies

Social & demographic shiftsUrbanization and integrated

mobility

New health & wellbeing demands Digital revolution

Hyper-competition Fast changing business ecosystems

New customer power and

sophistication Disruptive technological advances

GLOBAL TRENDS

BUSINESS TRENDS


All industries will face transformations

Source: Arthur D. Little Digital Transformation Study 2015 Examples

Continuous

improvement

Service everywhere

Embedded into

ecosystem

Personalization

Shared across

community

Product-as-a-service

Active creation

Value chain

disintegration

Manufacturing AutomotivePublic

Transport

Financial

ServicesHealthcarePublic safety

Energy &

utilities

Media &

entertainment

Automa-

ted threat

detection

Infotain-

ment

Remote

health-

care

Smart grid

Autono-

mous cars

P2P

Money

Transfer

Sourcing

via e-

commerce

Mobile

VR/AR

gaming

Critical

control of

robotics

Drone

field

mainte-

nance


Digitalization revenues for ICT players in industries

Source: Ericsson and Arthur D. Little

Note; 1) Year 2026

Public safety

ManufacturingFinancial services

Healthcare

Public transport

Energy & utilities

+14%

+16%

+17%

+16%

+11%+10%

+11%

Retail

Automotive

Media &

entertainment

Agriculture

+15%

+20%

+21%

CAGR 16´-26´

713; 21%

602; 17%

511; 15%

437; 13%

295; 8%

276; 8%

232; 7%

213; 6%

140; 4%

38,1%

USDbn

1307


SMART

AGRICULTUREFLEET

MANAGEMENT

SMART

METER

LOGISTICS

TRACKING

TRAFFIC SAFETY

& CONTROL

INDUSTRIAL

APPLICATION &

CONTROL

REMOTE

TRAINING

REMOTE

MANUFACTURING REMOTE

SURGERY

SMARTPHONESHOME

NON-SIM

DEVICES

ENTERPRISE

VENUES

MOBILE/

WIRELESS/

FIXED

4K/8K UHD

BROADCASTING

VR/AR

5G is use case driven

LOW COST, LOW ENERGY

SMALL DATA VOLUMES

MASSIVE NUMBERS

ULTRA RELIABLE

VERY LOW LATENCY

VERY HIGH AVAILABILITY

Critical MTCMassive MTC

Enhanced mobile broadband


Technical expectations of 5G

Peak Data Rate

1 - 20 Gbps

User Experienced Data Rate

10 -100 Mbps

Spectral Efficiency

×1 - ×3

Mobility350 - 500

km/h

Latency 1 - 10 ms

Connection Density

10k - 1m

devices / km2

Network Energy Efficiency

×1 - ×100

Area Traffic Capacity

0.1 - 10

Mbps / m2

Availability99.999%

(of time)

Battery life 10 years*

Reliability99.999%

(of packets)

Position

accuracy10m - <1m

Security

Strong subscriber

authentication, user

privacy and network

security

*For low power IoT devices Source: ITU-R, NGMN, 3GPP


5G enabled digitalization revenues for ICT players


Note; 1) Year 2026

Public safety

Manufacturing

Energy & utilities

+122%

+126%

+126% +134%

+125%+115%

+128%

+134%

+113%

+135%

250; 19%

233; 18%

164; 13%

160; 12%

129; 10%

119; 9%

104; 8%

73; 6%

55; 4%

20; 1%

USDbn

CAGR 19´-26´

Healthcare

Public transport

Media &

entertainment

Automotive

Financial services

Retail Agriculture

3458


5G enabled digitalization revenues for ICT playersRevenues generated by new industry digitalization value-producing opportunities that are created or

enhanced by the introduction of 5G networks

5G enabled digitalization revenues for ICT players

1 5 18 49113

168216 250

1 6 2052

115

164

206233

1 311

31

72

108

140

164

1 414

36

81

116

144

160

0 28

23

54

82

109

129

0 28

22

51

77

101

119

0 26

17

42

65

86

104

0 2

7

17

38

54

66

73

0 1

3

9

21

33

45

55

0 0

1

4

8

13

17

20

5 28

97

259

595

879

1130

1307

2019 2020 2021 2022 2023 2024 2025 2026

+181%

+22%USD bn

• Agriculture

• Retail

• Automotive

• Media &Entertainment

• Public transport

• Healthcare

• Financial Services

• Manufacturing

• Public Safety

• Energy & Utilities

“Normal market

growth”

“Ramp up”


/ USE CASE #2 /

automotive


KEY

INDUSTRY

TRENDS

Autonomous driving

Connected services

Safety and traffic

efficiency services

Other

Total: 104

40

29

27

8

5G enabled revenue for ICT players

5G operator

addressable

Current service

revenues

+3%


2026, USDbn

5G operator addressable market

1.736 48

Car sharing

and changing

commuter habits

Electric mobility

with decreasing

battery costs and

a green agenda

Digital enterprise

and connected

supply chain

Autonomous

driving and a

connected traveler

with telematics

Use case categories

1 2 3 4

Automotive – industry opportunity


Business potential automotive

Operator addressable revenues per region

2019 2020 2021 2022 2023 2024 2025 2026

North America EuropéLatin America Middle East & AfricaNorth East Asia South East Asia Oceania & India

15

5

10

0

Operator addressable market per use case category

0

10

20

30

40

50

60

2019 2020 2021 2022 2023 2024 2025 2026

Automotive - other

Autonomous driving

Safety and traffic

efficiency services

Connected services

Automotive - other

USDbn North America

Latin America

North East Asia

Europe

Middle East & Africa

South East Asia, Oceania & India

USDbn


› Predictive maintenance of vehicle

› Capturing sensor data for real-time traffic, weather, parking, and mapping services

On the road to 5G

› WiFi Hotspot

› On demand GPS map data

› Over-the-air software updates

Current

› Autonomous vehicle control

› Cooperative collision avoidance

› Vulnerable road user discovery

5G Experience (2021+)

Automotive use case evolution explained


KEY

CHALLENGES

/TRENDS

1) The global economy can save 5.6 trillion per year once autonomous cars become fully penetrated (2026), Morgan Stanley

Autonomous cars

Road congestion is

increasing creating

costs in terms of

time and pollution

Improved convenience

Improved safety

Reduced congestion

Global cost savings from

autonomous vehicles to society

POSITION ACCURACY

Role and key dimensions of 5G

1 2 3

High mitigation potential

in avoiding journeys and

modal shifts due to

behavioral change

4Significant number

of traffic accidents

occur

Stricter

emission

regulations

$5.6 TN1

RELIABILITYAVAILABILITY


Entry point for

managing company

and user accounts

+Access to relevant

Scania and third

party services

+Solving industry pain points

Powered by Ericsson Connected

Vehicle Marketplace Scania

ONE will greatly enhance the

user experience of Scania’s

connected service offer

LESSONS LEARNED | REQUIREMENTS

One framework for services

Quality of service

Complete solution

SCANIA ONE

Multi-channel

user

experience

+

“Scania One is the framework for seamlessly and

efficiently integrating both current and coming

services in a single environment. These services,

taken together, will significantly contribute towards

greater efficiency and thereby higher revenues for

transport companies.”

Christian Levin, Executive Vice President,

Head of Sales and Marketing, Scania


manufacturing/ USE CASE #3 /


KEY

INDUSTRY

TRENDS

Industrial control and automation

Planning and design systems

Field devices

Other

Total: 233

119

38

56

20


5G operator

addressable

Current service

revenues

+7%


2026, USDbn


1.736 113

Increasing

volatility from

business cycles and

product life cycles

The smart factory is

advancing from developments

in the internet of things and

automation

Hyper competition

with no sustainable

competitive

advantages

Use case categories

1 2 3

manufacturing –industry opportunity


Business potential manufacturing


2019 2020 2021 2022 2023 2024 2025 2026


North America

Latin America

North East Asia

Europe




0

20

40

60

80

100

120

2019 2020 2021 2022 2023 2024 2025 2026

Manufacturing - other

Planning and design

systems

Field Devices

Industrial control and

automation systems

Manufacturing - other

USDbn

40

10

20

0

USDbn

30


Manufacturing use case evolution explained

On the road to 5G

› Intra-/inter enterprise communication

› Connected goods

Current 5G Experience (2022+)

› Collaborative robots

› Distributed control system

› Remote quality inspection

› Remote control of robots

› Augmented reality support in training, maintenance, construction and repair


KEY

CHALLENGES

/TRENDS

Note: 1) Also includes AR, Big Data and Advanced machining applications

Critical control of production line robotics

Skill gap left by

the baby boomer

generation leaving

the workforce

High costs

of labor in

developed

countries

Aging workforce in

OECD countries with

lower ability to handle

physically heavy tasks

Lower cost

Improved safety

Higher quality

+15-20%Process and assembly OPEX

savings potential


2 3 41

Components are

becoming more

complex with

larger variation

1

LATENCYPEAK DATA RATE

TRAFFIC CAPACITY


KEY

CHALLENGES

/TRENDS

1) Augmented reality; 2) S. Henderson and S. Feiner, ‘‘Exploring the benefits of augmented reality documentation for maintenance and repair,’’ IEEE Trans. Vis. Comput. Graphics

AR assisted factory maintenance

Production down-time

– causing reduced

utilization, lead-times

and bottle necks

Operational inefficiencies –

imperfect maintenance

planning, failure diagnostics

and training

Reduced oper. down-time

Reduced repair time spent

Less human-made errors

25%cost reduction


2 31

Costly breakdowns

– extra components,

material, labor and

buffers

2

LATENCY PEAK DATA RATE

CONNECTION DENSITY

1

UP TO


Energy & utilities/ USE CASE #4 /


KEY

INDUSTRY

TRENDS

Smart grid

Smart energy management

Other

Total: 250

188

53

9


5G operator

addressable

Current service

revenues

+6%


2026, USDbn


1.736 101

Structural

shifts with

increasingly

retiring assets

New

decentralized

business models

Electrification

and renewable

energy generation

Oil supply imbalance

and instability, fracking

advancements and

carbon constraints

Use case categories

1 2 3 4

Energy and utilities –industry opportunity


Business potential energy & utilities


2019 2020 2021 2022 2023 2024 2025 2026


30

10

20

0

North America

Latin America

North East Asia

Europe




0

20

40

60

80

100

120

2019 2020 2021 2022 2023 2024 2025 2026

Smart grid

Energy and utilities - other

Smart energy managementUSDbn USDbn


Energy & utilities use case evolution explained

On the road to 5G

› Dynamic and bidirectional grid

› Smart metering

Current 5G Experience (2023+)

› Distributed energy resource management

› Distribution automation

› Control of edge-of-grid generation

› Virtual power plant

› Real time load balancing


KEY

CHALLENGES

/TRENDS

Source: Ericsson and Arthur D. Little, Kalorama Information

Drone field service and maintenance

Power companies

increasingly monitoring

transmission and

distribution grid

Assets are

often located

in remote

locations

Fines from

authorities for

power outages

Increased worker’s safety

Improved grid uptime

Reduced costs

+30%Cost reduction potential

compared to regular monitoring


2 3 41

Increased share of renewables

means more producing units

over a larger area that often

is more remote

PEAK DATA RATE

POSITION ACCURACY

AVAILABILITY


Meter to cashUndisclosed customer

IoTAaS Smart metering solution

Integrated meter management

Customer portal

Enterprise cloud billing

Operative costsavings

Reduction in case to

resolution time

20%

60%

Reduction in cost to deploy

prepaid

50%

Idea to implementation

reduced to hours vs months

Online bill and actions

in real time vs 24 hr lag


Healthcare/ USE CASE #5 /


Healthcare use case evolution explained

› Telesurgery

› Augmented reality aiding medical treatment

On the road to 5G

› Remote patient monitoring

› Connected ambulance

› Electronic health records

Current

› Precision medicine

› Remote robotic surgery

› Ambulance drones

5G Experience (2022+)


KEY

CHALLENGES

/TRENDS


Remote examination and monitoring

Increased number

of chronic

diseases and need

for constant care

Greater

freedom of

choice for

patients

Increased

awareness of own

health and higher

demands on quality

Healthcare efficiency

Patient convenience

Improved patient safety

$31.4 bnAdvanced patient monitoring

market size (2015)

RELIABILITYAVAILABILITYSECURITY


2 3 41

Medical staff shortages

as population ages

and baby boomers

retire


KEY

CHALLENGES

/TRENDS

Increasing

personalization

and comparability

of treatments


Remote robotic surgery

Scarcity of

surgeons –

especially in highly

specialized areas

Increasing

complexity

requiring new tools

and specialization

Increasing

demands – from

increased health

awareness

Improved outcomes

Patient convenience

Reduced cost

$20.8 bnEstimated surgical robot market

size (2024)

RELIABILITYAVAILABILITYSECURITY


1 2 3 4


Better use of

senses: Sight,

hearing and touch

+ Improved efficiency:

Using the skills and

resources in an

efficient way

+Solving industry pain points

Ericsson’s contribution –

Providing the infrastructure and

research expertise to assist with

edge computing, latency

reduction and network slicing.

LESSONS LEARNED | REQUIREMENTS

Latency is critical

Quality of service

Complete solution

Kings college collaboration

define the future of the industrial iot - eit digital · 1) augmented reality; 2) s. henderson and...

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