7 numbers that you need to know about the IoT

Machina Research

BLN IoT, March 2015

About Machina Research

• Machina Research is the world’s leading provider of market intelligence and strategic insight on the rapidly emerging Machine-to-Machine (M2M), Internet of Things and Big Data opportunities.

• We work in two ways:o Our Advisory Service consists of a set of

Research Streams (see right)o Our Custom Research and Consulting team is

available to meet your specific research requirements.

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FOR MORE INFORMATION, VISIT MACHINARESEARCH.COM, OR EMAIL ENQUIRIES@MACHINARESEARCH.COM

Some of our clients

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Main motivations for connecting ‘things’

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4

A diverse set of motivations

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Sealed Air

eCall

Big Belly Solar CLEAN

Zipcar

Regulation Features

Efficiency gains New business models

PS Vita Connected Car

Smart Meters

SF Park

connected devices in 2023

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26 billion

Connected devices will grow from 4 billion in 2014 to 26 billion in 2023

• ‘Living & Working’ dominates courtesy of large numbers of short-range devices

• Short range accounts for 70%+ of all connections

• Cellular will grow to ~2.5 billion in 2023

• 30-40% growth in cellular connections was common in 2014

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Global machine-to-machine connections 2013-23Source: Machina Research M2M Forecast Database, 2015

0

5

10

15

20

25

30

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Car

Cities

Health

Industry

Living & Working - Building Automation

Living & Working - Building Security

Living & Working - Consumer Electronics

Living & Working - Smart Metering

Living & Working - White Goods

Living & Working - Other

Euros invested in Sigfox last month

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100 million

New LPWA technologies are set to have major impact

0

5

10

15

20

25

30

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Cellular

LPWA

MAN

Satellite

Short range

Wide area fixed

• LPWA is set to have a significant impacto Sigfox EUR100 million funding – including Telefonica,

SK Telecom, NTT Docomo, Eutelsat, GDF Suez and Air Liquide

o LoRa launch with key tech supporters - BM, MicroChip, Cisco, Semtech, Bouygues Telecom, Singtel, KPN, Swisscom, Fastnet and Belgacom

o Huawei bought Neul for USD25 million – forms basis for Cellular IoT

• Features:o Low chipset costso Out-of-the-box connectivityo Long battery lifeo High latencyo Low bandwidth

• Expected to grow to 3 billion devices in 2023

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Global machine-to-machine connections 2013-23Source: Machina Research M2M Forecast Database, 2015

Internets of Things

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>1

Evolution from M2M to IoT

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Internet of Things

Subnets of Things will be part of a continuum between M2M and IoT

• Open• Everything can connect to

everything

• Cross enterprise• Cross manufacturer

• Within enterprise• Multiple devices from a

common manufacturer

• Point solutions• Standalone connected

devices

• Fixed parameters • Context and ontologies

• Diversity of assets

• Semantic richness

M2M

Subnets of Things

Sco

pe

Agility

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Smart Cities are prime examples of data environments (Subnets of Things)

PUBLIC TRANSPORT

Intelligent Transport Systems

(road, rail, air and sea)

ROAD TRAFFIC MANAGEMENT

Parking space management

Road tolls

Congestion chargingTraffic volume

monitoring

Connected road signs

Traffic lights

Enforcement cameras

ENVIRONMENT AND PUBLIC SAFETY

CCTV

Street lighting

Waste collection

Public alarms and intercoms

Tourist information services

ENVIRONMENT MONITORING

Monitoring of the environment

including noise, rain, pollution, etc.

SMART CITIESSubnets of ThingsA data community

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More of a network of Subnets of Things than an Internet of Things?

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Texture of the Internet of ThingsSource: Machina Research 2014

Health SoT

Smart Cities SoT

Construction industry SoT

See ControlSoT

GE SoT

Intelligent buildings SoT

Samsung (Consumer) SoT

Samsung (Enterprise)

SoT

Linear processes that used to define data processing, but don’t any more in the IoT

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4

Data Acquisition

Data Storage

Data Processing

Data Presentation

Massive Parallel Processing (MPP)

Distributed Storage

Visualisation

Distributed Analytics

Advanced Algorithms

New data management priorities are emerging in IoT analytics

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US Dollar valuation of Jasper Technologies

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1 billion

US Dollars spent by PTC on ThingWorx (and another $170 million for Axeda)

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112 million

Predictions for IoT and M2M in 2015

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7 numbers: a recap

• 4 motivations – evolving motivation in connecting devices and a growing importance of IoT

• 26 billion connected devices – it’s growing• 100 million € invested in Sigfox – LPWA networks are on the horizon• >1 ‘Internet of Things’ – the evolution will be through subnets and most of

the value lies there• 4 linear processes that used to define data processing – IoT changes big

data analytics• 1 billion $ valuation of Jasper Technologies – there’s a lot of attention

being paid to the IoT ecosystem at the moment• 112 million $ paid by PTC for ThingWorx – platforms should find a home

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Ten predictions for IoT & M2M in 2015

1. Enterprises will get cracking in IoT

2. More productised offerings

3. More M&A

4. Breakthroughs in smart city service deployments

5. Major OS vendors disrupt the connected car market

6. Mobile phone as the gateway for IoT

7. A year for avatars

8. A crunch on regulation

9. Segmenting for success and identifying role in IoT

10. Privacy and security reach the top of the agenda

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Discover more at our website: machinaresearch.com/news/ten-predictions-for-iot-and-m2m-in-2015/

Thank you

Matt HattonFounder & CEO, Machina Research

matt.hatton@machinaresearch.comMobile: +44 7787 577886

Skype: mattyhattonTwitter: @MattyHatton

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