1 © 2017 ABI Research

Developing for the IoT Exploring the infinite opportunities

Malik Saadi, Managing Director

Overview of the IoT

Market Landscape

June 2, 2017

• IoT Value Chain

• Interoperability issues

• Making sense of IoT standards

• Unlocking revenue potentials,

• Where is the money?

• Innovation and IoT

2 © 2017 ABI Research

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Overview of IoT Landscape

• IoT is not a single market but a collection of verticals and adjacencies

• Market in early stage of development

• Verticals with own requirements

• Very crowded market and intense competition across the whole value chain

• Technology is still largely fragmented

• proprietary implementations

• Deep customization

• Heterogeneity of machines, sensors, and connected equipment

• Heterogeneity of data

• Heterogeneity of decision making

• Lack of compelling ecosystems

• Implementers very confused

4 © 2017 ABI Research

Internet of Everything in Numbers

2016 2021 Internet of Digital

PCs and digital home

Mobile devices

Internet of Things

Connected car

Smart home

Wearable computing

Smart buildings and cities

Energy and industrials

Retail, Advertising, and

supply chain

Others

• 2017: there are 14 billion IoD Devices, 13 billion IoT Devices

• 2018 will be the first year that IoT endpoints outnumber IoD endpoints.

• 2021: IoT will account for nearly 65% of all active connections

2021: the IoE is forecast to total 48.9 billion connections.

5 © 2017 ABI Research

Market Overview Internet of Things Connections

• Retail, advertising, and supply chain have the lion share with 30% share in 2017

• Wearable computing will remain a tiny part of the IoT market

• Others include non-retail beacons, robotics, toys, application specific wearables (wearable cameras,

3D motion trackers, etc.)

6 © 2017 ABI Research

IoT Value Chain

Hardware

Connection

• Device Design Services

• Install/Deploy

• Sensors & Related Field/ Machine Hardware

1000s of boards

• 100s of sensor types

• Dozens of processing architectures

Professional

Services

• System Integration

• Big Data and Analytics

• Consulting Services Hundreds of Companies

Supply Chain Hugely Fragmented and Crowded

Connection

Management

• Communication Devices

• Connectivity

• Connectivity Management Services

20+ connectivity solutions, excluding variants

Device

Intelligence • IoT Device Software (RTOS, OS)

50+ RTOS and OS Apache, Mynewst, mbed, Atomthreads, BitThunder, ChiviOS, distortos,

Erika, FreeRTOS, Fusion Embedded, Integrity RTOS, LynxOS, Mark3,

MEOS, MQS, Nano-RK, Nucleus, Nut, Nuttx, PikeOS, QNX, RIOT,

RTEMS, RT-Thread, scmRTOS, StateOS, Stratify, TargetOS, ThreadX,

TI-RTOS, Micrium, Unison, VxWorks, Zephyr, Ontiki, Brillo, Fuchsia,

LiteOS, Mantis, OpenWrt, OpenWSN, Ostro, Tizen,

Device Cloud • Device Cloud

• Device Cloud to Device Software Platform

• Service and Device Management

50+ Platforms

Applications • Application Development Tools and Services 100+ SDKs and 200K+ IoT developers

7 © 2017 ABI Research

Overview of the IoT Revenues

2015:US$ 100 billion 2021:US$ 300 billion

• Revenues outlined here gathered from 32 IoT application segments

• Revenues will remain largely low compared to the mobile market

• Most of revenues are generated from the higher stacks of the value chain

8 © 2017 ABI Research

Technology Capabilities Versus End-Markets Requirements

Technology End-Markets

• The hype of IoT is currently driven by the technology supply chain

• Tech vendors: more work to educate implementers on the benefits and value of IoT

• Misalignment between supply and demand planning translates into uninformed decisions

• The mission of tech vendors exponentially complex as a function of number of verticals targeted

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Interoperability: The Single Biggest Challenge Facing IoT

• Multiple Standards Confusing the industry

• Standard Rationalisation/Harmonization is eminent

• Interoperability key for IoT success

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IoT Value Chain

Hardware

Connection

Professional

Services

Supply Chain Analysis: Thoughts For Consideration

Connection

Management

Device

Intelligence

Device Cloud

Applications

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11 © 2017 ABI Research

Takeaways and Conclusions

Both partner and compete with IoT Frameworks

Partner strategy – Position yourself within the value chain but look at the bigger picture

Influence roadmaps for IoT Frameworks through participation to standards and alliances

Compete Strategy: Consider higher stack strategies

Always look at the bigger picture and identify how you can be different

Both technology and business model innovation

Make your products scalable

Listen to the requirements of implementers. “Build it and they will come” model may not work

Avoid proprietary frameworks

Interoperability! Interoperability! Interoperability!

12 © 2017 ABI Research

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