internet of things market overview · 2 context and headlines (1/4) • whilst they share a common...
TRANSCRIPT
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Internet of Things Market Overview
– Prepared for Intesa Sanpaolo Innovation Centre –
February 2017
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Context and headlines (1/4)
• Whilst they share a common core, Frost & Sullivan draws a clear distinction between the terms Machine
to Machine (M2M) and Internet of Things (IoT)
• The IoT is a nexus of sensor, analytics and connectivity solutions that enables devices to communicate
and exchange data over the Internet or private networks
• Market participants across the IoT value chain are currently investing, partnering and fundraising with a
view to taking leading, first mover positions
• Nonetheless, uptake remains a ‘wait and see’ game for many
• Frost & Sullivan believes that the IoT will grow rapidly over the next 10 years, reaching 50 billion
connected devices globally by 2025, supported by technology advances on the supply side and greater
adoption on the demand side
• On the supply side, standardised, secure and robust networks are required to support the IoT but all
of the current connectivity solutions have limitations
• Low power wide area networks (LPWAN) are designed to support applications that generate low data
rates and require extended range, and will account for a significant share of IoT connections by 2020
• From a competitive point of view, Sigfox, LoRa, Weightless and Ingenu are all leaders pushing subtly
differentiated products to market
• The mobile industry is responding to the threat of cellular alternatives with Long Term Evolution (LTE)
as well as “clean slate” solutions
• On the demand side, the IoT has rapidly found its place across core applications in Transportation,
Healthcare, Energy, Aerospace & Defence and Manufacturing
Frost & Sullivan
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Context and headlines (2/4)
• Emerging applications in the IoT in Education, Agriculture and Law Enforcement
o In the education ecosystem, the IoT aims to provide students and staff access to educational tools
and content anytime, anywhere and across any device, notably via the use of learning management
and lecture capture systems
o Uptake is driven by the expectations of an increasingly tech-savvy student population and the
need for providers to differentiate themselves; nonetheless, early adopters opted for experimental
and/or proprietary solutions which is restricting the budget available for third-party solutions
o Frost & Sullivan expects the overall market for IoT in education to be valued at more $40 billion in
2022, a CAGR of 19.4% (2015-22)
o After academic devices, LMS is the largest segment and is being shaped by a strong shift to
cloud-based deployments and increased interaction with mobiles
o In an extremely competitive market, vendors are struggling to find a balance between feature
heaviness, ease of use, and speed of deployment; Blackboard, with its deeply integrated
solution and more than 15 million end-users, holds almost two thirds of the overall market in
revenue terms
o With a CAGR of 20.6% (2015-2022), the LCS segment is the fastest growing segment and is
charaterised by greater customisation to meet institutions’ needs
o Price, ease of use, quality of video, a seamless experience across devices and attentive
customer support are key competitive success factors; Echo360, Panopto, and Sonic Foundry
hold more than a 40% share in revenue terms and have a first-mover advantage in international
markets
Frost & Sullivan
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Context and headlines (3/4)
o The IoT is one of several interrelated enabling technologies which is digitally transforming
agriculture and facilitating data-intensive precision farming
o It has the potential to relieve some pressures on farmers and growers by, for example, plugging
productivity gaps or ensuring regulatory compliance
o New business models are emerging with generalists such as Schneider Electric and specialists like
Farmers Edge competing to interpret weather data
o LPWAN is ideal for the high-volume of long-range, low-cost, and low-power devices needed in
agriculture with use cases generating very small data streams from remote locations that are poorly
served by mobile cellular networks
o The emergence of the IoT has created two distinct market opportunities for suppliers of law
enforcement cameras and devices for vehicles or personnel
o Improved situational awareness, through the use of historical and real-time data and the provision
of decision support tools, is underpinning up-take
o Nonetheless, concerns around network resilience and security persist and are restraining the more
widespread adoption of some solutions
o The number of connected devices used by law enforcers globally will grow from just over 5.06
million in 2014 to 16.18 million by 2024, a CAGR of 12.3%
o In the LEV segment, law enforcement agencies in OECD countries are expected to connect
100% of their fleets with as many as 8 devices per car by 2020 including radios, trackers and
identification solutions
Frost & Sullivan
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Context and headlines (4/4)
o In the LEP segment, it will become the norm for officers to wear video recorders and carry IP
communication devices by 2030, whereas tablets will disappear due to device convergence and
new technology
o In the LEC segment, the balance is shifting rapidly from analogue to IP cameras with the latter
expected to constitute more than 50% of the installed base due to new projects and
replacement cycles by 2020
• As the IoT market moves towards semi-autonomous operational networks and fully-autonomous control
networks, end users across verticals will have limited awareness of and control in theevent of cyber
attacks
• Advanced threats in the IoT ecosystem resulting from the influx of connected devices have prompted
enterprises to opt for the best-in-class, “defense-in-depth” approach to mitigate the risk across the
businesses
• In addition vendors are developing and providing innovative security solutions which are either applicable
across the IoT ecosystem or specific to certain applications such as Smart Buildings, Connected Vehicles or
Home Health
Frost & Sullivan
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Whilst they share a common core, Frost & Sullivan draws a clear distinction between the
terms Machine to Machine (M2M) and Internet of Things (IoT)
• Devices connected via cellular or
other networks
• Generally ‘point solutions’
• Rarely is the data integrated with
enterprise or consumer
applications.
• Focus on the “plumbing” aspects of
embedded hardware and cellular
networks.
• Cloud Computing
• ‘Platform approach’
• Support new business models
such as ‘product as a service”.
• Security
• Big Data & Analytics
• Integrated with Enterprise
Management
• Cloud delivery makes IoT
inherently more scalable and
enables access by any
sanctioned application.
• Focus on software capabilities
and application integration.
Machine to Machine (M2M) Internet of Things (IoT)
M2M vs IoTCommon core
Remote Access
to Devices,
Machine, &
Assets
Devices &
Connections
An ecosystem to capture data and
perform analytics
Frost & Sullivan
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The IoT is a nexus of sensor, analytics and connectivity solutions that enables devices to
communicate and exchange data over the Internet or private networks
Connecting, monitoring, and controlling devices, people, and the environment
Hardware
Data
Va
lue
extra
ctio
n
Predictive
analytics &
decision support
Applications,
solutions, &
services
Enablement platforms &
support systems
Connectivity management &
networks
Data acquisition & management
Devices & hardware components
IoT; the digitisation of objects,
people and places into
interoperable data flows
Typically open-ended, mediated,
and transient services; contracts
embedded in APIs and platforms
e.g. Insurance as a Service
M2M (a subset of IoT); solutions
for connecting, monitoring, and
control
Typically linear B2B or B2B2C,
fixed-term contractual relationships
and managed services
e.g. Smart Metering
Frost & Sullivan
API = application programming interface
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Market participants across the IoT value chain are currently investing, partnering and
fundraising with a view to taking leading, first mover positions
$3bninvestment in IoT
announced by
$23bnfunding in machine
intelligence
companies in 2015
Announced new
cloud
platforms
IoT OS & platforms
by major
entrants
took steps to build
partnerships
Frost & Sullivan
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Nonetheless, uptake remains a ‘wait and see’ game for many
Watching & learning43%
Prototyping29%
Small trials and proof of concept – 34%
Mid- or large-scale trials (>500 device) – 27%27%+
IoT is embedded into our core service/products23%
Internal deployments – 40%
Deploying next-generation solutions – 34%34%+
Frost & Sullivan
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Frost & Sullivan believes that the IoT will grow rapidly over the next 10 years, reaching
50 billion connected devices globally by 2025, supported by technology advances on the
supply side and greater adoption on the demand side
The average selling price for sensors,
currently near 60 cents, is projected to
decline by a CAGR of -5%, 2015–2020,
with decreases accelerating
0,0
0,2
0,4
0,6
Average Sensor Prices, Global, USD, 2015–2020
Sensors
Companies Interested in Deploying IoT,
Global, 2012 and 2014
2012
15%
2014
65%
Consumer Adoption of In-home IoT
Devices, US, 2014
30%
Own or plan to
buy within 2
years
67%
Plan to buy within
5 years
Consumer Interest
Industry Interest
Anticipating an initial rollout by 2022, 5G
will increase network capacity nearly
tenfold, with data speeds greater than 1
Gbps and near-zero latency.
LPWAN technology will overtake traditional
cellular mobile, especially GPRS, to
account for a significant share of IoT
connections globally
10× faster than 4G
Connectivity
LPWAN
Supply side Demand side
Frost & Sullivan
5G
LPWAN = low-power wide area network
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Standardised, secure and robust networks are required to support the IoT but all of the
current connectivity solutions have limitations
Mobile Cellular; 3G, 4G, and emerging 5G
• Advances in cellular technology over the past
decade has been focused on increasing data
rates and spectrum efficiency for consumer-
centric applications
• However, many IoT applications will generate
data streams of very low rate and low value that
are inefficient to carry over mobile cellular
networks
• 3GPP is standardising LTE–M/Cat 1 and Cat 0 to
strengthen the ability of cellular networks to meet
IoT demands cost effectively
Wi-Fi, Bluetooth, and ZigBee
• These provide wireless local area network with
short range coverage, often in-buildings
• Wi-Fi provides data rates of up to 7Gbps using
802.11ad standard. Wi-Fi 802.11ah is designed
for low-power long-range requirement
• Typically, devices would have to be configured
into the network manually from each use case,
for Wi-Fi mesh operation for example
Hig
h
Low HighRange
Lo
wT
hro
ug
hp
ut
Wi-FiMobile
cellular
LPWAN
Bluetooth
ZigBee
IoT Market: Connectivity Alternatives, Global, 2015
Frost & Sullivan
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Low power wide area networks (LPWAN) are designed to support applications that
generate low data rates and require extended range, and will account for a very significant
share of IoT connections globally by 2020
Scalability: The number of
devices an access point
can support becomes
critical considering the
growth of IoT and increase
in the number of devices
expected to be connected
over the years.
Wider coverage: Wider coverage is
required not only to connect to
remotely located end-nodes but also
to reduce the number of access
points required thereby reducing
infrastructure costs.
Low-energy consumption:
Battery operated devices form the
majority of “Things” in IoT and
replacing batteries often will be
costly. Hence, networks supporting
longer battery life is required.
Low cost: A majority of IoT
applications require
installations of hundreds or
even Millions of end node
devices. Price is a major
concern in such high-volume
implementations.
Frost & Sullivan
LPWAN-Low Power Wide Area Network
• Various network technologies designed to meet
low power, low data rate IoT requirements in the
order of bytes or just a few KBs per second;
transmission may be uni- or bi-directional
• Networks designed for devices which have long
sleep cycles and run on batteries for many years
• Designed for latency-tolerant applications and
deployment in licence-free/light ISM bands.
• Proprietary LPWANs typically operate in the
licence-free Industrial, Scientific, and Medical
(ISM) bands and are hence less expensive on a
per-connection basis than current mobile cellular
and other licensed radio options.
• Latency is not the primary concern; hence long-
range operation is feasible.
LPWAN requirements
15
From a competitive point of view, Sigfox, LoRa, Weightless and Ingenu are all leaders
pushing subtly differentiated products to market
Company
LPWAN
Technology Coverage Range Frequency Band Data Throughput Module Cost
SigfoxUltra narrow Band
(UNB)
30-50km (rural), 3-
10km (urban),
1000km LoS
868/920 MHz ISM 100 bps – 1kbps $1 in large volumes
LoRa AllianceLoRAWAN 1.0,
CDMA-based
2-5km (urban),
15km (rural)
433/868/780/915
MHz ISM
300 bps -11 kbps;
additional 50Kbps
rate in Europe
~ $10 for 1,000+
units
Weightless SIG Weightless-P 2km (urban)
Sub-1GHz ISM
169/433/470/780/8
68/915/923MHz
200bps -100 kbps N/A
Ingenu
Random Phase
Multiple Access
(RPMA)
> 500 km (line of
sight)2.4GHz 624 kpbs per sector ~ $4
Although many connectivity options and protocols are included in the industry definition of LPWAN, each is implemented in a
different way which has important implications for suitable use cases. For example, LoRa is a spread spectrum technology
and hence requires more bandwidth than the Sigfox UNB approach. Lower frequency options are more suitable for
penetrating buildings; a mono-directional (upload) option will have extremely low power consumption, but will lack the ability
for remote management of the end device.
Source: Sigfox, LoRa Alliance, Weightless, Ingenu
IoT Market: Comparison of Emerging LPWAN Technologies, 2015
Frost & Sullivan
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The mobile industry is responding to the threat of cellular alternatives with Long Term
Evolution (LTE) as well as “clean slate” solutions
Clean slate
However, the mobile industry is
concerned that the 3GPP
standardisation of LTE-M will take too
long to deliver commercial products,
creating opportunity for proprietary
LPWAN to capture market share. In
response, support is building for ‘clean
slate’ LPWAN techniques in licensed
bands—so-called Cellular IoT—at data
rates of 150 kbps or less. Proponents
claim that the approach boosts the link
budget by 20db over traditional
LTE/GSM. Mobile operators’ trade
group, the GSMA, is backing clean
slate approaches under its Mobile IoT
initiative
Clean slate (continued)
Huawei and Vodafone have lobbied for
the standardisation of Narrowband-IoT,
which offers a choice between in-band,
refarmed licensed GSM bands, or
guard-bands between LTE channels.
Crucially, Ericsson and Nokia Networks
have given their support for
accelerating the ratification of NB-IoT in
time for Release 13. Ericsson, Nokia,
and Intel have also pitched their own
approach, NB-LTE, which uses in-band
LTE spectrum. NB-IoT features 180 kHz
bandwidth for uplink and downlink
LTE evolution
LTE-M (Machine Type
Communications) is an evolution of LTE
and is closely tied to the roadmap for
LTE-Advanced. Receiver bandwidth is
limited to 1.4MHz (from the full LTE
bandwidth of 20MHz), thereby reducing
complexity and module cost. Cat-0 is
the LTE-M variant within the Release 13
3GPP specification, due for ratification
in March 2016. It is designed for peak
upload and download of 1Mbps. Cat-1
is already specified as a RAN software
upgrade designed for peaks of 10 Mbps
Frost & Sullivan
Source: 3GPP, GSMA
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Transportation
Selected IoT applications
Big Data analytics solution to analyze datacollected from various in-car sensors andprovide real-time solution for engineers toimprove safety and performance.
Integrated Software
ArchitectureSingle bus system with opensoftware architecture platformcould enable easy integration ofadvanced features throughsoftware installation process. Itwill minimize deployment time fornew feature sets in cars. Softwaredefined vehicle will also enableeasy detection of faults andeffective troubleshooting.
Adaptive
Lighting Systems
Based on theweather condition,road condition andtime of day, lightsensorsautomaticallyregulate lightintensity and adjusthigh and low beamof vehicle.
Remote Data Analytics In-Vehicle Behavioural AnalyticsAlong with Interactive platform for in-carentertainment applications such as voicecontrol and gesture control media player,future In-vehicle Infotainment systemcould also implement behavioral analyticsto provide advanced in-dashboard featuresets such as driver heath monitoring forenhancing safety measures.
Smart Phone
IntegrationSmartphone integration
with in-car system enables
easy access to the car data
for the users and it alsofacilitates vehicle to vehicleconnectivity throughinformation sharing. Fewinnovative applications gaininginterest are driver healthmonitoring, traffic monitoring,navigation, weather forecast,smart parking, emergencycalling application, drivingoptimization and enginetrouble shooting applications.
Energy Harvested
Electric CarCar vibration and movement could be harvested to generateenergy from the system to run electric cars and reduce energyconsumption cost. This will require collaboration betweenautomotive technology hardware developers and energytechnology developers for effective integration of the solution.
Frost & Sullivan
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Transportation
Selected Movers & Shakers
Open Automotive Alliance–is a global alliance of
several automobile companies and technology
partners to bring in a standard Android platform for
seamless communication between mobile and the
vehicles. The common platform initiative from most
of the automakers will facilitate connected car
innovation and bring in advanced transportation
applications for all.
Standardization
Activities
• Google is one of the key contributors in the space with several initiatives towards bringing the next generation
automotive. The on-going Self-Driving Car project of Google leverages a proprietary software platform along
with supporting third party technologies like Velodyne– Lidar for remote sensing. For intelligent GPS navigation
system with social interaction, Google has also acquired Israel start-up Waze Mobile recently.
• Siemens is working on a software based electric vehicle project called RACE (Robust and Reliant
Automotive Computing Environment for Future eCars). This initiative from the company incorporates
innovative electronics and software to enable development of a computer architecture to handle all
operation of the car and will allow easy upgradation of features through software installation process.
• Faster data transaction being the key enabler for IoT, telecom giant AT&T has initiated several projects to
bring in advanced communication system for the next generation cars. AT&T Drive Studio and Drive
initiative primarily focus on building a end-to-end solution from technology hardware, communication to
top application layer, thus enabling easy integration of connected car system for car manufacturers.
• Machine to machine (M2M) technology developer, Gemalto is constantly innovating in the field of new
applications, hardware and platform development to provide better connectivity for future cars. Gemalto
Cinterion LTE solution is among the first in the industry to introduce 4G features for telematics. Gemalto cloud-
based SensorLogic application platform enables seamless integration with sensors and M2M modules.
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US Department of Transportation's (USDOT)–
Joint Program Office (JPO) is planning to
implement set of rules through its CVRIA
Standards Plan to control Intelligent Transportation
Systems technology implementation and policy
development for enhanced safety. Institute of
Electrical and Electronics Engineers (IEEE)
Wireless Access in Vehicular Environments
(WAVE) standards are also in place to regulate
wireless communication in V2V environment.
Frost & Sullivan
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Healthcare
Selected IoT applications
Convergence of RFID chips with bio-parametersensors could facilitate continuous monitoring ofpatients’ condition within the hospital premise.This is one of the most emerging applicationareas in healthcare sector providing immenseopportunity for wearable device manufacturers
Open Intelligent Health
Monitoring PlatformDeveloping an open intelligentplatform for seamless integrationof data from various data sourcescould be of considerable interestamong healthcare organizationsto centralize data access andenable interoperability of devicesat reduced cost.
Fridge Controller
Organic elements andvaccines demand accuratetemperature control withinthe fridge. Analytics solutionproviders could convergewith sensor manufacturersto deliver efficienttemperature control forfridge, automatically.
Patient SurveillanceCamera PillsMicro Machined Sensors (MMS) reedsensors encapsulated within an ingestiblecapsule along with mini video camera,image sensor and controlled throughexternal magnets could be the next bigthing for healthcare technology hardwaredevelopers to enable effective andaccurate diagnosis of internal body parts.
Predictive
AssistanceAnalytics application forpredictive insights onpatient data could alsohave great potential in thefuture. Facilitated byenormous amount of datacollected from varioussensor nodes helps inproviding enhancedaccuracy and real-timeinformation at criticalstages.
3D Printed Organs3D printing equipment manufacturers could leverage the benefits ofbig data analytics to improve accuracy by controlling the variouscritical parameters in the printing process of body organs and help inorgan replacement process for health organizations.
Frost & Sullivan
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Healthcare
Selected Movers & Shakers
• Real-time Innovations (RTIs)’s IoT platform called Connext™ facilitates connectivity between smart medical
devices within a health organization. Integrated with advanced connectivity feature sets and in compliance with
standardization rules, the platform could effectively and quickly enable development of a connected patient care
ecosystem. GE Healthcare has recently planned for integration of Connext™ into their health information system.
• Freescale Semiconductor has developed a comprehensive solution called Home Health Hub Reference
Platform for remote patient monitoring which provides a wide range of functionalities such as connectivity of
wired and wireless devices, health parameter monitoring and secured data management. The platform
enables easy development of tele-health applications and improves flexibility for remote monitoring systems.
• Masimo has developed a health monitoring device called Radical 7 which can transmit patient data
wirelessly for continuous monitoring. The company leverages the application processor from Freescale to
deliver high resolution touch base interface for clinicians. The enhanced graphical information display
provided with detailed information of the patient facilitates real-time analysis of patient’s condition.
• Proteus Digital Health, Inc. has developed an ingestible sensor which has the capability to track patients’
medication habits when they swallow the pills every day. Integrated with an electronic patch on the skin of
patients' body, the sensors send signals wirelessly which are then forwarded to smartphone applications of
doctors and physicians. This enables easy tracking of medication for the patients from remote location.
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Frost & Sullivan
HITSP–Health Information Technology Standard
Panel is a collaborative approach of public and
private sectors who take care of the
standardization of information exchange in a
clinical system. The key focus of the alliance is to
facilitate seamless information sharing between
devices in an electronic medical record systems. In
partnership with US Department of Heath and
Human Services, the panel is working on several
standardization initiatives on connected health
Standardization
Activities
Continua–is a non-profit health alliance promoting
tele-health and technology development for
interoperability between sensors and health
information systems. The consortium comprises of
organizations from healthcare technology domain
with above 200 members across the globe. This
alliance could help to address the specific
challenges with integration and interoperability of
devices effectively.
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Energy
Selected IoT applications
Advanced network controllers integrated withcyber communication network securitytechnologies for protection against energyhacking could avoid power loss and outages.Device security being a major concern for IoT,this technology area could earn huge return fordevelopers.
Predictive Analytics for
Optimized Power GenerationPredictive analytics software solution frombig data participants could enable effectivemonitoring of power usage and would alsobe an important tool at smart grid networkcontrol system to predict future powerrequirement and optimize powergeneration sources accordingly.
Grid– Vehicle
Communication NetworkGrid to Vehicle (G2V) forelectric car energy andVehicle to Grid (V2G) forsmart meter data analysiswill need a convergencebetween automobilemanufacturers and energytechnology developers.
Secured Smart Grid
Network Controller
Smart Home Solution
Fusion of temperature, smoke, gassensors along with monitoring andanalytics solutions are driving this space.
Dynamic Energy
Pricing Solution
Software service solutionthrough cloud connectivitycould enable developmentof advanced dynamicpricing solution which willintegrate suppliers priceoffering and analyze themto help users identify thebest power sourcesavailable, based on theirusage patterns.
Energy Sharing
InfrastructureIndividual rechargeable battery deployment at homenetwork will enable users to save power for future usageand will also facilitate power balancing by sharingenergy to nearby building, offices, hospitals etc. instantlythrough real-time update.
Frost & Sullivan
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Energy
Selected Movers & Shakers
• Cisco Networks is one of the major participants in the space with a wide portfolio of solutions for Smart Grid
technology. Leveraging its secure, standards-based IP-infrastructure, the company has developed its Smart Grid
solution architecture which promises to reduce energy network outages, lower cost of energy transmission,
distribution and storage and an improved operational efficiency.
• Texas Instruments offers an extensive set of microcontroller unit (MCU) product portfolio which enables
development of smart metering solutions by leveraging its smart metering kit. With wide opportunity for
connectivity for the users using the comprehensive communication technology integration, the advanced
metering kit has the potential to provide the best-in-class solution to enable smart energy ecosystem.
• The communication software company is focused towards developing solution for seamless connectivity in
home network between Smart Grids, Vehicles and home appliances. The comprehensive Smart Energy
solution from the company uses wide range of technologies from IP layer to security and provides support
for managing smart meters, billing, demand control, pricing and many more from a single platform.
• Nest offers solutions for automated thermostat and smoke monitoring. The intelligent thermostat monitoring
technology, automatically regulates the thermostat for heating and cooling purposes based on the needs.
Optimized thermostat operation helps users in reducing electricity cost significantly. Recently acquired by Google
(expected to enhance the capability of Google Now, the personal assistance solution based on Google Search).
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Frost & Sullivan
European Telecommunications Standards
Institute– ETSI recognized by European Union as
European Standardization Organization, produces
standards for Information and Communications
Technologies. Integrating a variety of
communication and digital computing technologies
along with electrical architecture, ETSI has
enforces several standards (through its M490
Smart Grid Standardization) to promote reduction
of carbon emission and to secure energy supply.
Standardization
Activities
IEEE Standards Association- the professional
association for advancement of technologies has
developed several standards for Smart Grid
implementation. Unlike other standardization
bodies that only focus on modernizing system in
specific countries, IEEE movement is towards
revolutionizing the electrical delivery system
worldwide with support from its 395000 members
from variety of positions covering every aspect of
smart grids.
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Aerospace & Defence
Selected IoT applications
An open architecture platform for variousdevice integration and sensor data fusioncould be of considerable interest amongdefense clients to deploy advancedcollaborative solution. This would requiresensor and defense technology developers toconverge with communication and softwaresolution providers to bring the best practicestogether under a single platform.
Voice Activated Cockpit
solutionVoice commands are rapidly emerging in mobile deviceapplications due to the flexibility. Voice recognition softwaresolution developers could have great potential to tap theopportunity in next-generation cockpit system to enhanceinteractivity and improve user-friendliness for the pilots.
Adaptive AutomationPhysiological sensors andbrain monitoring toolscould be used to monitor apilot's cognitive state orstress levels, and tailor thetype and amount of cockpitautomation and displaycontent accordingly.
Platform for Device IntegrationSecured Data Center SolutionWith petabytes of sensitive informationgenerated from the battlefield assets andfrom the wide supply chain network ofaerospace and defense, a reliable andsecured data center solution could be ofstrong interest among technology solutionproviders to integrate with their softwaresolution.
Predictive Analytics for
Aerospace Supply
ChainCollaborative Supply chainsolution could implementpredictive analytics toforecast demands in themarket and enable easyoptimization of processes toaddress the market needs.There is significant potentialfor Big Data Analyticssolution providers in thisspace.
Neuromorphic Chip for
CockpitsNext-generation robots could implement neuromorphicchips along with advanced analytics that will operateand think like human brain in an energy efficient way toreduce workloads for pilots.
Frost & Sullivan
25
Aerospace & Defence
Selected Movers & Shakers
• GE Aviation, the aeronautical technology giant has developed an Intelligent Platform for Military which provides a
wide range of Commercial Off-the-Shelf (COTS) solution for developing mission critical applications for manned
aircrafts, unmanned aerial vehicles and ground vehicles. Integrating secured network communication and high
performance military communication, the product offering could have strong impact in IoT space.
• Wind River provides a comprehensive solution for effortless IoT implementation in aerospace and defense
industry. Incorporated with advanced technologies for secured data center storage, reliable network
communication, intelligent platform for device integration and advanced sensor management platform for
data aggregation, Wind River solution could be the one-stop solution for customers in this space.
• Advanced Cockpit for Reduction of Stress and Workload (ACROSS), Canadian Networking Aeronautics
Project for Europe (supported by European Commission) is aimed at developing a platform for cockpit
system for enhancing three main aspects of the present system--reducing crew operations, improving safety
through management of peak workload situations, and implementation of single pilot operations.
• Telezygology Inc. has introduced SMArt Device platform for aerospace asset management solution. The
company has several patents for its distributed intelligence SMArt Device system comprising of hardware,
communication solution and software for effective remote monitoring, manageability and analysis of critical
aerospace and defense assets.
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Frost & Sullivan
Seamless Aeronautical Networking through
integration of Data links Radios and Antennas
(SANDRA) project– Made up of 30 partners from
Europe's leading aviation technology industry and
research organizations and coordinated by Selex
ES, the consortium has been working on
developing a digital architecture which will connect
all aircraft applications and services to a single
integrated aeronautical communication system
based on radio transmission and satellite links.
Standardization
Activities
NextGen– NextGen is a series of project initiative
from Federal Aviation Administration. The project
focus includes ADS-B (Automatic Dependent
Surveillance-Broadcast systems), System Wide
Information Management (SWIM), Collaborative Air
Traffic Management Technologies (CATMT),
Performance-Based Navigation and Data
Communication. All these projects are expected to
decrease emissions, save time and fuel, and
improve safety statistics.
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Manufacturing
Selected IoT applications
Gas and temperature of the plant environmentcould be hazardous in some situation if notmonitored correctly by using sensors. Mobilemonitoring solution for this purpose is anotherarea of interest among manufacturingorganizations to remotely monitor plantoperations and avoid any accident in plant floor.
Predictive Maintenance
SolutionPredictive maintenance using big dataanalytics is one of the key areas offocus among analytics solutiondevelopers. This could facilitateproductivity in manufacturing processthrough proactive steps.
Unified Collaborative
Platform
Supply Chain Collaborationsolution through cloudinfrastructure leverages datafrom various sensors and appliesanalytics capabilities toeffectively connect withstakeholders and analyzebusiness processes moreefficiently. This helps to reducecost of management significantly.
Gas and Temperature
Monitoring SolutionIndoor Tracking Solution
Using Global Positioning System anddata feed from sensors, indoor trackingsolutions are getting huge attention inrecent days for tracking people, devicesand equipment quickly in a complexmanufacturing environment.
Augmented Reality
based Plant MonitoringAugmented realityenhances plant floor viewwith interactive contentaccessible from anylocation. It also enhancesproduct developmentprocess by providinginformation about devicesor processes instantly.
Advanced 3D printing Advanced 3D printing process for the printing of manufacturingdevice, product or any equipment could leverage Big DataAnalytics to improve accuracy in the design process and monitoroperations.
Frost & Sullivan
27
Manufacturing
Selected Movers & Shakers
• Cisco is focused towards providing a comprehensive solution for smart manufacturing through its connected
manufacturing solution which integrates an intelligent platform to deliver real-time communication across the
value chain, thereby providing an improved production efficiency and flexibility to connect more transparently with
the supply chain entities.
• Siemens is working actively towards developing an effective smart manufacturing solution by leveraging its
huge experience in network connectivity and device communication technologies. The company is
constantly expanding the capabilities of its plant monitoring solution with new feature sets and advanced
capabilities to move towards actual development of a solution for the envisioned factory of the future.
• Printed writable memory includes memory, display, sensors and wireless communication technology, all
included within a thin film to provide the intelligence to products and applications in a more cost effective
and flexible manner than ever before. This thin film property enables integration with any object like stickers
and facilitates easy connection.
• Quintiq’s unique focus is to deliver all the components that are required for effective planning, scheduling and
optimizing processes in the supply chain network. The connected software platform provided by the company
helps manufacturing organizations to quickly identify the issues with the planning processes and optimize the
operations for better productivity.
Low High
Low High
Low High
Low High
Frost & Sullivan
SMLC–Smart Manufacturing Leadership Coalition
is a non-profit organization dedicated towards
developing collaborative projects among
stakeholders in the smart manufacturing space
with support for R&D, standard regulation,
infrastructure and implementation process. SMLC
also raised several rounds of funds from U.S
Department of Energy (DOE) for developing an
open platform for smart manufacturing process.
Standardization
Activities
Energy Star –U.S Environmental Protection
Agency (EPA), is focused towards developing new
systems for industrial energy efficient process
measurement for manufacturing plants. The
standardization body works in collaboration with
National Institute of Standards and Technology
(NIST) and DOE for the collaborative approach.
29
In the education ecosystem, the IoT aims to provide students and staff access to
educational tools and content anytime, anywhere and across any device, notably via the
use of learning management and lecture capture systems
Frost & Sullivan
• An academic Learning Management System (LMS) is
deployed in an educational setting such as a school,
university, or continued learning institution. It is
essentially a course management system that allows
the instructor to build course content and to monitor
student achievement. Academic LMS systems are also
designed to facilitate instructor-student, student-student
and instructor-parent communication.
• A Lecture Capture System (LCS) is a platform
(software, hardware, or hybrid) that records an
educational meeting, lesson, or presentation in digital
format for concurrent or later viewing. These solutions
enable content to be captured, stored, accessed, and
annotated online for streaming or for ad-hoc, on-
demand consumption on diverse end-user connected
devices, including PCs, tablets, and phones.
• Big Data and Analytics in education is extremely large data sets of student learning data and interactions with content
and stakeholders; this data is analyzed to study learning patterns, identify the moment of confusion, identify at risk
students to take remedial action.
• Academic Devices include smartphones, tablets and personal computers.
IoT in Education: Key Segments, Global, 2016–2022
30
Drivers 1–2 Years 3–4 Years 5–7 Years
Increase in non-traditional students, with the requirement of anytime,
anywhere learning is increasing adoption of IoT in education to meet these
changing needs.
H H H
Highly tech-savvy student population accelerates a pull effect for
educational institutions to adopt IoT in education. H H H
Students are demanding a seamless user experience across digital
learning solutions, driving IoT in Education, making the learning experience
intuitive, easy to use, accessible, and efficient.
H H M
Ease of use and continued professional development, gradually reduces
barriers for engagement and increases adoption among instructor
community.
H H M
In an effort to increase national and international enrollment through
online programs, Institutions are in the process of deploying IoT in education
to stay competitive.
H H H
The need to disseminate information and the social awareness of the
need for education is driving innovation in educational technology and
adoption of IoT in education.
H H H
Impact ratings: H = High, M = Medium, L = Low
IoT in Education: Key Market Drivers, Global, 2016–2022
Uptake is driven by the expectations of an increasingly tech-savvy student population and
the need for schools and universities to differentiate themselves
Frost & Sullivan
31
Nonetheless, early adopters typically opted for experimental and/or proprietary solutions
which is restricting the budget available for third-party solutions
Frost & Sullivan
IoT in Education: Key Market Restraints, Global, 2016–2022
Restraints 1–2 Years 3–4 Years 5–7 Years
Budget restrictions and slow economic growth has restricted spending
on educational technology, thus restricting growth of IoT in education.H H H
Sunken investments in point solutions and homegrown systems delay
investment in purpose-built third-party integrateable educational technology.H H M
Experimental deployments and deployment of point solutions make
ROI justification difficult, further delaying widespread rollouts of IoT in
education.
H H M
Lack of integration between digital learning services makes it difficult to
garner student data, marring the benefit of free flow of information in IoT in
education.
H H M
Majority of schools do not have data warehouses to collect and store data
for analysisH M M
Many institutions do not have a dedicated information technology (IT)
team to resolve technical issues, causing frustration and a drop in usage
among students and faculty.
H H H
Impact ratings: H = High, M = Medium, L = Low
32
0,0
5,0
10,0
15,0
20,0
25,0
30,0
0,0
5.000,0
10.000,0
15.000,0
20.000,0
25.000,0
30.000,0
35.000,0
40.000,0
45.000,0
2015 2016 2017 2018 2019 2020 2021 2022
Revenue ($ M) 11.806,2 14.063,1 17.709,5 21.947,7 26.205,8 30.232,4 34.647,3 40.939,3
Growth rate (%) 14,00 19,00 26,00 24,00 19,00 15,00 15,00 18,00
Year
Frost & Sullivan expects the overall market for IoT in education to be valued at more $40
billion in 2022, a CAGR of 19.4% (2015-22)
CAGR, 2015–2022 = 19.4%
Reve
nu
e (
$ M
illi
on
)
Gro
wth
Ra
te (
%)
Frost & Sullivan
IoT in Education: Revenue Forecast, Global, 2015–2022
All figures are rounded. The base year is 2015
33
After academic devices, LMS is the largest segment and is being shaped by a strong shift
to cloud-based deployments and increased interaction with mobiles
• Academic learning management systems (LMS) crossed $800 million in revenue in 2015. The academic LMS market
is characterized by seismic shifts in technological demands and innovation, a solid movement to the cloud, rapid
adoption of new learning pedagogies, and a user-centric product development strategy.
• Academic LMS serves as an excellent means to deliver multimedia and interactive course content to today’s
generation of digitally connected students. The need for this shift in learning/teaching methodologies is the result of
change in expectations of today’s students and their parents, regarding educational institutions.
• LMS analytics are helping institutions become more accountable by providing tools to measure learning and
institutional outcomes. This allows institutions to take more informed decisions and improve outcomes for all parties
involved including students, instructors, parents, and institutions.
• Overall, the market is expected to experience a CAGR of 7.4% (2015–2022). Most of this growth will come from
increased investment in higher education in the Middle East and from emerging economies in Asia. While there are
small pockets of excellence in Latin America, overall revenue contribution from Latin America has slowed down due to
currency fluctuations, particularly in Brazil.
• Major trends in the academic LMS market include a strong shift towards cloud-based deployments, growing mobile
interactions with LMS, exploration of new learning pedagogies such as competency based education and predictive
learning, growth of regional content in LMS, and integrating data across educational technology solutions to measure
and improve learning outcomes.
Frost & Sullivan
34
In an extremely competitive market, vendors are struggling to find a balance between
feature heaviness, ease of use, and speed of deployment
Frost & Sullivan
Academic LMS Market: Competitive Structure, Global, 2015
Number of Companies in the Market 289
Competitive Factors
Ease of use, functionality, scalability, responsiveness across devices,
accessibility to students with disabilities, compliant to standards,
interoperability, flexibility in deployment, price, quality, maintenance,
customization to regional pedagogies, and customer support
Key End-user GroupsStudents including continued learning students, faculty, administration,
and parents
Major Market Participants Blackboard, D2L
Market Share of Top 3 Competitors 79.8%
Other Notable Market Participants Canvas, Edmodo, Moodle, Schoology, Pearson
Distribution Structure Direct Sales (93%), VARs (7%)
Notable Acquisitions and Mergers Ellucian acquired Helix Education’s LMS.
35
Blackboard, with its deeply integrated solution and more than 15 million end-users, holds
almost two thirds of the overall market in revenue terms
Frost & Sullivan
Blackboard has a deeply integrated LMS, extending beyond core course
delivery functionality and including content management, community
engagement, learning outcomes assessment, enterprise survey,
synchronous learning, mobile learning and institutional presence, and
analytical capabilities. The ‘New Blackboard’ claims to solve educational
challenges through design thinking, an ethnographic approach to solving
complex problems by placing oneself in the shoes of the end user.
Blackboard is now focused on creating seamless workflows for the entire
student lifecycle. The products are extremely configurable and support a
variety of implementation methodologies. Blackboard is experiencing triple
digit growths internationally as it customizes its solutions to regional learning
pedagogies. Blackboard has over 15 million end users
Brightspace by D2L states fast deployment, mobile learning and
accessibility to everyone as its top product development priorities. The
vendor seeks to achieve these through its LMS, which offers multiple
delivery options (blended and mobile), predictive and adaptive learning
through analytics, a learning repository, lecture capture solution, and a
highly personalized learning experience. It has over 13 million end users.
All figures are rounded. The base year is 2015
Academic LMS Market: Percent
Revenue Breakdown, Global, 2015
63%10%
6%
6%
4% 4%6%
Blackboard D2L
Pearson Canvas
Skyward Moodle
Others
36
With a CAGR of 20.6% (2015-2022), the LCS segment is the fastest growing segment and
is charaterised by greater customisation to meet institutions’ needs
• Academic lecture capture solutions (LCS) crossed $200 million in revenue in 2015. The academic LCS market is
characterized by seismic shifts in the technological demands of students, growing institutional adoption of online
programs to increase student enrollment, the increasing use of multi-source video capture to enrich user experience,
and deeper in-video metadata schema to improve searchability.
• Academic LCS serves as an excellent means to deliver multimedia and interactive course content to today’s
generation of digitally-connected students. The need for this shift in learning/teaching methodologies is the result of
changing expectations from students and their parents, regarding educational institutions.
• Higher education continues to be the major contributor of academic LCS revenue with slower but growing penetration
in K-12 and lifelong learning. In terms of lifelong learning, an explosion of massive open online classrooms (MOOCs) is
a key driving factor for LCS adoption.
• Overall, the market is expected to grow at a compound annual growth rate (CAGR) of 20.6% from 2015 to 2022. Most
of this growth will come from increased penetration in K-12 and rapidly growing investment into higher education in the
Middle East and from emerging economies in Asia-Pacific.
• Major trends in the academic LCS market include integration with other educational technology vendors, including
competitors and complementary; growing mobile interactions with LCS; integrating data across educational technology
solutions to measure and improve learning outcomes; the customization of LCS solutions to meet institution-specific
needs; and the emergence of new use cases such as alumni engagement.
Frost & Sullivan
37
Price, ease of use, quality of video, a seamless experience across devices and attentive
customer support are key competitive success factors
Number of Companies in the Market 16
Competitive Factors
Price, partnerships, ease of use, functionality, scalability, security,
responsiveness across devices, accessibility to students with disabilities,
compliant to standards, interoperability, flexibility in deployment, quality,
maintenance, customization to regional pedagogies, and customer
support
Key End-user GroupsFaculty, students including lifelong learning students, IT teams for setup
and support
Major Market Participants Echo360, Panopto, Sonic Foundry,
Market Share of Top 3 Competitors 42.8%
Other Notable Market ParticipantsMcGraw-Hill Education, Tech Smith, Epiphan, Kaltura, Polycom, Cisco,
Crestron
Distribution Structure Direct Sales (53%), VARs (47%)
Notable Partnership VBrick Systems, Inc. joined the Cisco partners program.
Frost & Sullivan
Academic LCS Market: Competitive Structure, Global, 2015
38
Echo360, Panopto, and Sonic Foundry hold more than a 40% share in revenue terms and
have a first-mover advantage in international markets
Frost & Sullivan
Echo360 is purely focused on the education market, specifically higher
education. Echo360 caters to 3 million users globally, including 600
institutions across 30 countries. As part of Echo360’s expanded partnership
with Dell, Dell can now directly sell Echo360 technology in Europe, the
Middle East, and Asia-Pacific including Australia and New Zealand. This
joint partnership has allowed Dell and Echo360 to connect over 400
classrooms with Echo360 technology in leading institutions such as Yale
and City University of London. To help teachers and institutions measure
student outcomes, Echo360 provides a data visualization dashboard,
customizable return on investment (ROI) and engagement metrics, and heat
mapping tools. In terms of untapped opportunity, Echo360 can use its
current market influence to penetrate the K-12 market.
Sonic Foundry MediaSite has over 3,000 customers in 65 countries and is
used by half of the top-ranked business schools globally. Sonic Foundry, like
its fellow market leaders, provides multi-source capture solutions and
provides analytics tools with MediaSite analytics. MediaSite search allows
end users to search content and audio. The optical character recognition
extends text searchability beyond slides to screencasts, handwriting, and/or
annotations.
All figures are rounded. The base year is 2015
Academic LCS Market: Percent
Revenue Breakdown, Global, 2015
17%
14%
12%
11%
11%
10%
26%
Echo 360 Sonic Foundry
Panopto McGraw Hill
TechSmith Epiphan
Others
40
The IoT is one of several interrelated enabling technologies which is digitally transforming
agriculture and facilitating data-intensive precision farming
1
Centralised processing
and pooled IT resources
for data-intensive farming
and food distribution
logistics; SaaS utility
pricing, tailored for SMEs
Cloud and Software
Defined Paradigm
4
Access to vast archives of
performance and yield
data; real-time pricing;
weather analytics; disease
propagation
Big Data Analytics & Machine Learning
2
Internet of Things
Monitoring and control of
vehicles, equipment,
crops, and livestock
Analytics and control at
the edge for remote
locations beyond cellular
coverage
3
Convenient and affordable
network access
Mobile apps for small
farmers and low-cost
devices in lesser
developed countries
Mobility and Mobile
Applications
Frost & Sullivan
41
It has the potential to relieve some pressures on farmers and growers by, for example,
plugging productivity gaps or ensuring regulatory compliance
Agricultural Sectors
• Crops and plant propagation
• Animal production
• Farming equipment and systems
• Services and infrastructure
• Logistics and storage
• Food security and compliance
‘Horizontal’ IoT Applications
• Asset tracking and geo-fencing
• Asset monitoring and control
• Fleet management
• Environmental monitoring
• Autonomous vehicles/robotics
Targets for Efficiency Gains
• Land yield
• Productivity per employee
• Productivity of machinery and vehicles
• Logistics efficiency
• Regulatory compliance
• Water and resource conservation
Domain-specific Data Analytics
• Livestock health metrics
• Weather and water systems
• Soil types
• Livestock activity patterns
• Equipment tracking for shared usage
Frost & Sullivan
42
Schneider Electric bids to be weather analysis provider for agriculture
across the United States (Dec 2015).
• Schneider, a provider of energy management and automation solutions,
announced its intention to connect 4,000 weather stations in rural areas. The
company will combine Big Data analytics with its IoT-enabled WeatherSentry
platform to provide more localised weather information for farmers, ranchers,
and landowners.
IBM Research leverages The Weather Company’s atmospheric map to
co-develop hyper-local forecasts (Jun 2016).
• IBM’s research arm and its 2015 acquisition The Weather Company
co-developed Deep Thunder, a customisable forecasting service. With the
Weather Company’s historical data and 195,000 weather stations, IBM claims
forecasts can be localised down to 0.2–1.2 miles. Target customers include not
only farmers but also city planners, insurance companies, and retailers wanting
to manage their inventories in response to anticipated weather conditions.
• Separately, Farmers Edge is integrating the Weather Company’s data into its
predictive modelling solution for farmers (Mar 2016).
New business models are emerging with generalists such as Schneider Electric and
specialists like Farmers Edge competing to interpret weather data
Frost & Sullivan
43
French company Weenat is using Sigfox ultra-narrowband technology to
help farmers conserve water.
• Agriculture consumes 70% of the world’s water.
• Growth of meat consumption increases amount of water needed to grow food
crops for cattle.
• Sigfox is integrated into Samsung’s Artik platform.
Telefonica is exclusive provider of Cattle-Watch’s monitoring service in
Latin America and North America.
• Service includes herd location, nutritional status, reproductive events, disease,
pasture quality, and drone operations.
• Yet despite being a Sigfox investor, Telefonica deploys the managed service
over GSM and satellite.
Deutsche Telekom offers several agricultural solutions.
• Real-time control of machinery and premises surveillance.
• High-accuracy GPS derived from satellite and the cellular network for real-time
positioning control of agricultural machinery such as tractors
LPWAN is ideal for the high-volume of long-range, low-cost, and low-power devices
needed in agriculture with use cases generating very small data streams from remote
locations that are poorly served by mobile cellular networks
Frost & Sullivan
45
• Investment in law enforcement cameras (LEC) has grown significantly over the last 10 years due to upgrades and
expansion in North America, Europe, and the Middle East, but primarily through large deployments in China and more
recently in India. The LEC market will continue to grow due to the replacement of analogue cameras.
• The number of law enforcement vehicles (LEV) devices will grow through the forecast period due to an increase in
the average number of devices per vehicle.
• The number of law enforcement personnel (LEP) devices will grow mainly due to more officers globally being
equipped with digital devices rather than each officer carrying more devices (e.g., a smartphone, a digital radio, and a
tablet). In the long term, a single device that provides voice, video, and data capability is likely.
The emergence of the IoT has created two distinct market opportunities for suppliers of
law enforcement cameras and devices for vehicles or personnel
Improving operations, decision making, and situational
awareness for security-centric organisations
1Improving Security Operations
2Improving Business Operations
Industries where improving business operations is
paramount and security, although important, is secondary
• Law Enforcement and Public Safety
• Criminal Justice and Prisons
• Borders and Maritime
• Border Control
• Airports
• Mass Transportation
• Ports
• Oil and Gas, Utilities
Frost & Sullivan
46
Improved situational awareness, through the use of historical and real-time data and the
provision of decision support tools, is underpinning up-take
Frost & Sullivan
IoT in Law Enforcement: Key Market Drivers, Global, 2015–2024
Drivers Description
Situational
Awareness
Improving situational awareness underpins other drivers, such as officer safety. Through accumulating
historical data, using real-time data, and equipping officers with decision support tools, both tactical and
strategic decision making can be improved.
Officer SafetyEquipping officers with the right tools to ensure their safety is a priority. Safety can be improved by
providing officers with real-time data to make quick decisions, connect with peers, and monitor health.
Interoperability
Increasing interoperability allows both multiagency collaboration and data sharing whilst providing officers
with the ability to share voice, video, and text with colleagues in the local area. Benefits include officer
safety, speed of response, and increased productivity.
Productivity
Eliminating paperwork and travel to and from the police station is key to ensuring that officers are more
public facing. Providing devices and applications that allow officers to complete tasks in the field rather
than behind a desk increases productivity and is a force multiplier.
Reduced
Operating Cost
Reducing public expenditure remains a focus in many countries, particularly Organisation for Economic
Co-operation and Development (OECD) member nations. Whilst it may seem counterintuitive, significant
capital investment in new IT and communication systems will help improve operational efficiency. This
enables police forces to deliver similar service with fewer officers.
Top 5 drivers in order of criticality from highest (top) to lowest (bottom)
47
Nonetheless, concerns around network resilience and security persist and, given the
sensitivity of data such as officers’ personal details and offenders’ criminal records, are
restraining the more widespread adoption of some solutions
Frost & Sullivan
IoT in Law Enforcement: Key Market Restraints, Global, 2015–2024
Restraints Description
Network
Resilience and
Security
Ensuring that the network is resilient is critical. The IoT network will be exposed to an increasing number
of threats and requires a new approach to cybersecurity. This includes ensuring that hardware (devices)
are safe and data privacy is maintained (e.g., officers’ personal details, criminal records). Law
enforcement is wary of changing too quickly without adequate and proven security measures.
Bandwidth
IoT for law enforcement relies on mission-critical voice and data. The pace of LTE first responder
network development has been sluggish, which will delay the development of law enforcement IoT and all
of the benefits it offers.
Data Storage
The data storage strategy needs to be reconsidered as the volume of data becomes increasingly
challenging. Migration to the cloud, shared data centres, data policy, and fully managed services are all
options that need to be explored prior to issuing new devices.
Interagency
Collaboration
A key benefit of law enforcement IoT is the ability to collaborate across agencies. However, although the
technology promotes sharing of data and cooperation, departmental attitudes and legal barriers can limit
the potential. Whilst interagency collaboration is important, a lack of it will not significantly slow the pace
of IoT development.
Budgets
As with all new technology solutions, market demand can be tempered if there are no early success
stories, which leads to a “watch and learn” approach to new technology adoption. Developing a business
case and justifying expenditure is challenging given the low number of successful use cases. This will
become less of a market restraint when the front runners start to demonstrate return on investment.
Top 5 restraints in order of criticality from highest (top) to lowest (bottom)
48
The number of connected devices used by law enforcers globally will grow from just over
5.06 million in 2014 to 16.18 million by 2024, a CAGR of 12.3%
North America
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>250K
>1M
>500K
>500K
>1M
Africa
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>250K
>1M
>500K
>500K
>1M
Latin America
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>250K
>1M
>500K
>500K
>1M
Middle East
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>250K
>1M
>500K
>500K
>1M
>50K
Europe
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>250K
>1M
>500K
>500K>1M
>500K>50K>500K
Central Asia
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>250K
>1M
>500K
>500K
>1M
>1M
<10K
<10K
<10K
>100K
>10K
>500K>10K
Asia-Pacific
2014 2024
<10K
>10K
>50K
<10K
>10K
>50K
LEC
LEP
LEV
>50K
>1M
>500K>500K
>250K
>250K
>5M
>500K
>500K>1M
>500K
<10K
>10K
>50K
>100K
>50K
>100K
>250K>100K
>250K
>100K
>10K
>250K
>100K
>50K
IoT in Law Enforcement Device Market: Installed Base by Segment and Region, 2014 and 2024
Frost & Sullivan
All figures are rounded. The base year is 2014
49
In the LEV segment, law enforcement agencies in OECD countries are expected to
connect 100% of their fleets with as many as 8 devices per car by 2020 including radios,
trackers and identification solutions
Frost & Sullivan
All figures are rounded. The base year is 2014
LEV Connected Devices: Installed Base Forecast by Region, Global, 2014–2024
50
High Low
In the LEP segment, it will become the norm for officers to wear video recorders and
carry IP communication devices by 2030, whereas tablets will disappear due to device
convergence and new technology
DeviceShort Term
(2015–2017)
Medium Term
(2018–2020)
Long Term
(2021–2024)
Future
(2025–2030)Market Impact
Body-Worn
Video
IP
Communication
Devices
Tablet
Wearables
(Watch/
Glasses)
Biosensors
Holster and Gun
Sensors
Low High
Low High
Low High
Low High
Low High
Low High
Frost & Sullivan
LEP Devices: Installed Base Penetration, Global, 2015–2030
51
In the LEC segment, the balance is shifting rapidly from analogue to IP cameras with
the latter expected to constitute more than 50% of the installed base due to new projects
and replacement cycles by 2020
Frost & Sullivan
The growth of surveillance cameras in cities has been strong over the last
decade and is now a globally recognised trend.
The large majority of the networks are analogue and therefore do not have
an IP address. However, sales of IP cameras are very strong and now
exceed analogue cameras though, according to Frost & Sullivan’s latest
research, the installed camera base will not become mainly IP cameras until
2020 and it will be 5 years after that before IP reaches 80% of the installed
base. Even now, some cities have selected analogue cameras due to the
ease of installation, compatibility with existing networks, and cybersecurity.
Analytics on cameras are also improving, which means that processing will
be completed on the edge. Video can be filtered, ensuring that only certain
data is retained and reducing the impact on data storage. However, more
analytics today remain centralised.
Facial recognition is also increasing, though challenges still exist with false
alarms. By the end of the forecast period, Frost & Sullivan expects analytics
and facial recognition to be more widespread and a strong feature of the IoT
network.
All figures are rounded. The base year is 2014
LEC Devices: Installed Base Forecast,
Global, 2014–2024
53
As the IoT market moves towards semi-autonomous operational networks and fully-
autonomous control networks, end users across verticals will have limited awareness of
and control in the event of cyber attacks
Frost & Sullivan
Stage 2
Semi-
autonomous
Operational
Networks
Risk
Valu
e
Stage 1
Sensor
Networks and
Embedded
Devices
Stage 3
Totally
Autonomous
Control
Networks
Low
High
Low High
Instrumentation across the enterprise
fitted with intelligent field devices
Adjusting critical parameters and
managing assets from a distance
Autonomous interaction of ‘things’ based
on context and surrounding conditions
At stage 3,
catastrophic failure
possible if sudden
disruption of
communication/
interaction within
networks occurs
IoT Market: Progression in Stages, Global
54
Advanced threats in the IoT ecosystem resulting from the influx of connected devices
have prompted enterprises to opt for the best-in-class, “defense-in-depth” approach to
mitigate the risk across the businesses
Frost & Sullivan
IoT Market: “Defense-in-depth” Case Example, Global
Polices, Procedures, andAwareness
Physical
Network
Computer
Application
Device
A defense-in-depth approach allows
end users to have multiple layers of
defense (e.g., a device, application.
Computer, network and physical
layer) so that in case of a security
attack to one layer, the entire system
is not compromised
Attributes include firewalls, intrusion
detection and prevention systems,
managed switches and routers,
application whitelisting, anti-virus
software, software patching, device
hardening, source protection, and
structured policies
55
Key
Technology
Capabilities
In addition vendors are developing and providing innovative security solutions which are
either applicable across the IoT ecosystem (1/3)
Identity and Authentication Security SolutionEnterprise security breaches oftenoccur because of many unidentifieddevices connected to a firm’s serverdue to the implementation of thebring your own device (BYOD) trend.
Login credentials that are providedby the enterprise to employees oftenhave weak security passwords thatare easily accessible by networksniffers.
Conventional security solutionsused by enterprises often focus onprotecting endpoint devices andapplications used by the companyinstead of focusing on securing thenetwork.
Which solution can help?
DigiCert PKI (Public Key Infrastructure)The DigiCert PKI is an innovative and strong identityauthentication solution that leverages on the system,
connected devices, network, and users to have safe
interactions in order to exchange sensitive data.
Advanced
Data
Encryption
Highly Secure
and Flexible
Scalable and
Custom
Solutions
Key Benefits from Implementation
Short Term (1–2years)
Medium Term (3–4years)
Long Term (>5years)
Market Opportunity
High High
Analyst InsightsEnterprises are always in danger of losing valuableinformation to various types of cyber attacks due toweak security infrastructure. With a strong backgroundin Code Signing Certificate implementation, DigiCerthas been able to manage many IoT platforms forvarious industries to implement a scalable and flexibleIoT security platform, thus showing great potential tobecome a key IoT security provider by2018.
Medium
PKI ensures a strong identity assurance and authentication service in
order for anyone to access sensitive data assets. The infrastructure for
identity management, leverages on publicly trusted and audited
Certificate Authorities.
DigiCert Inc.
US
PKI offers flexible deployment options that are able to manage critical
authentication and encryption capabilities of unique devices. Numerous
certificate management protocols are embedded into the system such as
Simple Certificate Enrolment Protocol (SCEP), Certificate Management
of CMS (CMC), Enrolment over Secure Transport (EST), and Enterprise
API, for enrollment and device deployment proceses.
PKI provides the highest level of authentication and encryption that
ensures IoT devices’ data integrity by meeting data security
requirements such as HIPAA, PIC, FERPA, CALEA, andothers.
DigiCert, Frost & Sullivan
56
In addition vendors are developing and providing innovative security solutions which are
either applicable across the IoT ecosystem (2/3)
Communications Security for IoT DevicesIn an IoT environment, it is vital forthe complete range of connecteddevices with embedded intelligence(down to the smallest sensor) tohave effective communicationssecurity embedded in it.
Devices processors
with smaller may have
micro-limited
memory and processing capability,yet demand vigorous security toprevent snooping and tampering onnetwork traffic.
This requires communicationssecurity solutions that can performreal-time operations and empty thememory when finished in these tinymicroprocessors.
Which solution can help?
MatrixSSL TinyInside Secure MatrixSSL Tiny is the smallest transportlayer security (TLS) software available in this space,
which allows companies to secure IoT devices with
stringent memory requirements at an affordable cost.
security with restricted memory requirements.MatrixSSL Tiny is expected to solve this challenge andopen up the growth potential further in the IoT securityspace.
Simple
Integration
Robust
Security
Tiny
Memory
Footprint
Key Benefits from Implementation
Analyst InsightsGiven that the scope of use cases for IoT is vastlydiverse ranging from consumer devices such aswearables to mission-critical uses such as smartenergy grid, embedded devices in IoT demand robust
Unlike the conventional approach, certificates cannot be used to fit a
TLS stack in IoT enabled devices, with limited memory. Hence, the
MatrixSSL Tiny solution relies on a pre-shared key (PSK). This key
has to be configured into the device inadvance.
Inside Secure
France
This key is subsequently used for mutual authentication, and further, it
acts as a root key to develop the symmetric key protecting the network
traffic. The solution generates random numbers using a modified version
of the Yarrow PRNG algorithm and taking entropy from multiple sources
to compensate the use of a random number generator (RNG).
Device manufacturers can add a secure connection to their existing
design as long as they have 600 bytes of RAM and 10k bytes of Flash
available. For new designs, MatrixSSL Tiny provides secure connection
with cheaper microprocessors, thus significantly reducing the total bill of
materials (BOM).
Short Term (1–2years)
Medium Term (3–4years)
Long Term (>5years)
Market Opportunity
High HighMedium
Inside Secure, Frost & Sullivan
Key
Technology
Capabilities
57
In addition vendors are developing and providing innovative security solutions which are
either applicable across the IoT ecosystem (3/3)
The traditional cyber securityapproach faces many difficulties forintegration into new smart systemsand is not effective in keepingoperational devices secure.
Many security methodologies forembedded devices are configuredby isolating systems into batchesthat leads to just partial protectionagainst only known attackvectors.
Threat intelligence security isnecessary for enterprises due totheir distributed networks of remotedevices with many differentprotocols, vendors, and interfacesthat require intelligent threatprevention.
Which solution can help?
BrightCloud® Threat IntelligenceWebroot BrightCloud® Threat Intelligence effectivelysecures critical infrastructure and connected devices
against network and Internet-based threats for IoT
implementations.
security asset by 2018.
Flexible
Integration
Options
Highly Secured
IoT Gateways
Low Risk and
Impact on
Devices
Key Benefits from Implementation
Short Term (1–2years)
Medium Term (3–4years)
Long Term (>5years)
Market Opportunity
High High
Analyst Insights
With Web sites being the portal of communicationamong firms, it is important to make sure Web portalsare threat free and safe for enterprises to communicatewith. Webroot’s development brings an enormousimpact in providing intelligent security for Web sitethreats and is expected to become a crucial
Medium
Webroot's BrightCloud® constantly monitors the entire IPv4 and active
IPv6 space while also conducting continuous analysis for various server
attacks. Ranging from remote triggered threats such as Windows
exploits, botnet, Web attacks, and command/control servers to passive
attacks such as spam sources and phishing sites, these attacks are all
organized and tested daily in order to provide the most accurate and
concurrent list of malicious addresses for prevention cause.
Webroot
US
Webroot has constantly classified over 95% of the URLs on the Internet,
thus coming up with the largest URL database of its type. This database
includes various intelligence and malicious Web sites categorized into
botnet, command and control servers, phishing URLS, known malware
sites ,and many other URLs that are related to hacking and exfiltration.
Using these collected data, administrators can create policies to control
their IoT devices and gateway connections in order to ensure safe and
secured communication to approved data centers and remotesites.
Threat Intelligence Solution for IoT
Webroot, Frost & Sullivan
Key
Technology
Capabilities
58
… or specific to certain applications such as Smart Buildings
With the growing adoption of IoTconcept, the demand and adoptionof smart homes consisting ofconnected smart devices isexponentially increasing.
Cyber attackers are leveraging this connected devices’ network to gainillegitimate access to homenetworks. This is leading to loss ofconfidential information, as well acompromise of privacy.
IoT devices for smart homes suchas connected smart bulbs and otherelectronic devices have integrationissues as they cannot be integratedwith every traditional securityapplication. Using heterogeneoussecurity architecture makes themvulnerable to cyber attacks.
Which solution can help?F-Secure SENSE
The F-Secure SENSE is a comprehensive security
solution consisting of both hardware and software that
helps to protect smart home IoT devices from threats,
both indoors and outdoors.
preferred choice.
Smart
Remote
Monitoring
and Control
Network Traffic
Behavior
Analysis
Prevents
Unwanted
Tracking
Key Benefits from Implementation
Short Term (1–2years)
Medium Term (3–4years)
Long Term (>5years)
Market Opportunity
High High
Analyst InsightsThe F-Secure SENSE smart home security solutionis expected to attract considerable interest within aperiod of two to three years following the wide-scaleadoption of IoT powered smart home solutions. Byvirtue of its capability to offer unified intelligentsecurity to a wide range of connected smart devicesfrom multiple manufacturers at a very affordablecost of ownership, the solution is expected to be a
Medium
The solution consists of an advanced smart security Wi-Fi router to
which all the smart home devices can be connected. The hardware
creates a highly secured private communication network. The router is
connected to the F-Secure Security Cloud. This helps to monitor the
outbound and inbound network traffic of the smartdevices.
F-Secure
Corporation
Finland
SENSE leverages F-Secure’s proprietary machine learning algorithms
that can identify malicious network traffic proactively. The algorithms
are equipped in the F-Secure Security Cloud through which the traffic
passes. This approach immensely helps in analysis of network traffic
behavior and to isolate and secure the smart home network from
external threats.
The intelligent SENSE mobile application allows users to receive
instant notification of any malicious attack. Additionally, the application,
once installed on mobile computing devices such as smartphones or
laptops, can protect these devices even if they are not connected to
the SENSE homenetwork.
Unified Smart Home Security
F-Secure, Frost & Sullivan
Key
Technology
Capabilities
59
… or specific to certain applications such as Connected Vehicles
Today’s connected cars offer a wide
range of new applications such as
intelligent navigation, vehicle-to-
vehicle communication, wireless hotspots, and so on, therebyoffering a major contribution to the IoT.
However, the connectedconcept is opening up
cars attack
surfaces that cyber criminals can exploit to gain unauthorized accessto connected home or officenetworks.
These highly sophisticated carsessentially need to be protectedfrom malicious threats such as zero-day attacks, distributed denial ofservice (DDoS) and so on, toensure safe and securetransportation.
Which solution can help?Symantec Anomaly Detection for Automotive
The Symantec Anomaly Detection for Automotive
solution offers real-time security analytics capabilities to
detect and protect against targeted attacks.
Platform
Agnostic
Proactive
Security
Analytics
Light
Weight
Key Benefits from Implementation
Short Term (1–2years)
Medium Term (3–4years)
Long Term (>5years)
Market Opportunity
High High
Analyst InsightsWith connected cars and unmanned vehiclesreshaping the future of intelligent mobility andtransportation, the need for robust security to protectthem from cyber attacks is ever growing. TheSymantec Anomaly Detection for Automotivesolution, by virtue of its intelligent in-vehicle securityanalytics and detection capability, will attractsignificant interest from automotive manufacturers
High
Identification of zero-day attacks is not possible using traditional
reactive signature-based solutions. The Symantec Anomaly Detection
solution, leverages proprietary machine learning algorithms that can
passively monitor and detect abnormal behavior variations in controller
area network (CAN) bus traffic. This helps to formulate and implement
security strategies for quick response and remediation.
Symantec
Corporation
US
The solution, without affecting in-vehicle operations and performance,
can monitor information exchanges to and from the vehicle using the
CAN. Using proprietary deep packet inspection techniques, the solution
thoroughly checks every message to identify anomalies in payload
values, message patterns, network traffic rates, and so on. This
capability, powered by machine learning, helps to detect even unknown
zero-day attacks.
The platform agnostic low footprint solution requires minimal central
processing unit (COPU) and memory requirements. Deployable using
on-board diagnostics (OBD-2) port devices, or any in-vehicle security
gateway module that is connected to the CAN Bus, the solution can beused in any connected vehicle from any manufacturer. by 2017.
Connected Car Security
Symantec, Frost & Sullivan
Key
Technology
Capabilities
60
… or specific to certain applications such as Home Health
Sensitive private patient data couldbe at risk during transactionbetween several parties in thehealthcare network. These data areof great interest among cybercriminals for selling information tothird parties.
In addition, hacking a connectedhealthcare network could also leadto planting malicious codes tomalfunction medical devices, whichcould lead to life threateningsituations for patients using thedevices.
With the increasing adoption ofelectronic medical record systems,more and more of these systemsare connected online to transferdata to the hospital network forsharing patient information withdoctors and insurers.
Which solution can help?SafeNet Healthcare Data SecurityThe Gemalto SafeNet solution is not only compliant to
healthcare application regulations and standards but
also provides a comprehensive secured solution from
access control to secured hardware modules.
Advanced
Data
Encryption
Compliant to
Healthcare
Standards
Hardware
Level
Security
Key Benefits from Implementation
Short Term (1–2years)
Medium Term (3–4years)
Long Term (>5years)
Market Opportunity
High High
Analyst InsightsIncreasing adoption of technologies like virtualization,cloud services, and the growing mobile dependentworkforce warrants a secured data-centric approachwhile maintaining the regulatory compliances in ahealthcare ecosystem. SafeNet’s ability to address allthe important challenges in the adoption of connectedhealthcare applications will surely provide a greatopportunity for the company to win major market sharein the IoT security space in the next 1 to 2 years.
Medium
Understanding remote access channels to medical record systems as
a key gateway for data breach incidents, SafeNet incorporates a
multifactor authentication technique that uses a combination of
traditional password, smart card tokens, and biometrics to monitor and
allows access to authorized users only.
Gemalto
SafeNet
US
To further enhance the security aspect of the system, the company has
also incorporated a hardware security module that handles the
cryptographic operations solely by providing a dedicated cryptographic
processor. The temper-resistant device manages the life cycle of
cryptographic keys used for the purpose of secured transactions, as well
as protection of the applications and sensitive data in thenetwork.
The solution also delivers a full-fledged encryption solution for the cloud
and on-premise database system. It covers all the key areas like file
encryption, tokenization, virtual machine encryption, and network
encryption through a single solution.
Multi-factor authentication for Healthcare
Gemalto, Frost & Sullivan
Key
Technology
Capabilities
62
Principal abbreviations
ADS-B Automatic Dependent Surveillance-Broadcast System LEP Law Enforcement Personnel
API Application Programming Interface LEV Law Enforcement Vehicle
B2B Business To Business LMS Learning Management System
B2B2C Business To Business To Consumer LTE Long Term Evolution
B/Bn Billion M Million
CAGR Compound Average Growth Rate M2M Machine to Machine
CATMT Collaborative Air Traffic Management Technology MCU Micro Controller Unit
DOE Department of Energy MHz Megahertz
EPA Environmental Protection Agency MMS Micro Machined Sensor
ETSI European Telecommunications Standards Institute NIST National Institute of Standards and Technology
G2V Grid to Vehicle PKI Public Key Infrastructure
GHz Gigahertz ROI return on investment
GSM Global System for Mobile Communication RPMA Random Phase Multiple Access
HITSP Health Information Technology Standard Panel SMLC Smart Manufacturing Leadership Coalition
IEEE Institute of Electrical and Electronics Engineers SWIM System Wide Information Management
IoT Internet of Things UNB Ultra Narrow Band
IP Internet Protocol US United States
ISM Industrial, Scientific, and Medical USDOT US Department of Transportation
Kb Kilobyte V2G Vehicle to Grid
Km Kilometre V2V Vehicles to Vehicle
LCS Lecture Capture System VAR Value Added Reseller
LEC Law Enforcement Camera WAVE Wireless Access in Vehicular Environments
63
Frost & Sullivan contacts
John DaviesSenior Consultant
Business & Financial Services
Tel +33 1 42 81 21 01
Livio VaninettiDirector
Italy
Tel +39 02 4851 6135
Luca RaffelliniHead
Business & Financial Services
Tel +44 20 7343 8384