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M2M WORLD CONGRESS 2015

IoT Report: Internet of Things Market Size by 2020

| October 7, 2013

 

 

REPORTLINKER

 

Description:  Internet of Thing Market 2020 

This report analyses the current development of the Internet of Things markets. It breaks down IoT into several sub-markets, including M2M and Internet of objects, which are explained in terms of concepts, key technologies/standards and ecosystem. The report provides then a deep assessment of the top 8 vertical markets in which IoT is developing and forecasts the size of the market in terms of objects or machines connected by 2020 for each major application of the key verticals.

Region: 

World

This study includes:

– a report
– a slideshow

Methodology

The methods employed by IDATE’s teams of analysts and consultants are based on an approach that combines:
• research and validation of data collected in the field;
• the application of classic industry and market analysis tools: segmentation, competition analysis, strategic strengths, modelling, assessment and forecasts…;
• the expertise of specialists who contribute their own analytical capabilities and those of their network of market analysts.
More specifically, the tools employed by IDATE’s teams are as follows:

1/ A multi-disciplinary team of full-time consultants, specialised by sector of activity
IDATE’s analyses are performed primarily by our in-house consultants, and very occasionally by freelance market analysts. This approach allows us to capitalise on our pool of expertise through teamwork, sharing knowledge, ideas, contacts, viewpoints and key data.
Each report is drafted by a team of specialists, overseen by senior consultants with a proven track record in their field.

2/ Primary and secondary research
IDATE reports and databases are compiled based on primary data obtained from one-on one interviews with the sector’s decision-makers, and on secondary data which is established by cross-referencing public sources and external databases.

3/ An integrated information centre sustained by a number of tools and proprietary
databases

Over the past 30 years, IDATE has established working and data organization methods and proprietary databases that trace the central chapters in the history of our sectors of expertise.
• Companies: IDATE’s in-house data service tracks the latest news and events to come out of the top telecom, Internet and media industry companies around the globe. Innovative firms and start-ups are monitored by the market experts in the different “Practices”.
• Markets: IDATE’s databases are derived from rigorous processing of fundamental economic variables (GDP, investments, exchange rates, demographics, etc.) and their relation to decisive sector-specific and national elements (capex, national market dynamics, etc.).
• Technologies: IDATE’s organization by Practice provides us with an efficient means of tracking innovation. IDATE’s engineers ensure in-depth understanding of the changing shape of products and services and of the latest innovations in the marketplace.

4/ Contents of the published reports
Each IDATE market report details the structures and issues at play in the market being examined, the decisive forces (technologies, regulation, consumption) and the players involved. Particular emphasis is given to market assessments and forecasts, as part of the central premise. All market reports are laid out in a clear and concise manner, and illustrated with tables and graphs of key market data and trends.
The process of drafting of a market report includes the following stages:
• analysis of the information available in the in-house databases, and review of analyses performed in the recent past;
• based on a preliminary segmentation and assessment of the market, and as part of an validated interview guide, analysts conduct interviews that enable them to validate working hypotheses;
• a market model is then established, making it possible to test the hypotheses that have an impact on the market’s development, and validated by a new round of interviews;
• and, finally, the report’s conclusions are debated with the team responsible for the project and with expert consultants from the various fields involved;
• a final proofreading and editing/revision process, prior to the production of the final version of the report which is delivered to the client.

5/ Market assessment and forecasts
• Primary data gathering worldwide.
• Market models that isolate key service consumption parameters and service pricing assumption.

Contents

1. Executive Summary 8

1.1. Definition and market data 9
1.2. Building blocks: need for parallel architecture 10
1.3. M2M and IoO are driven by vertical markets and will therefore be impacted by
vertical environments 10

2. Methodology 12

3. Concept: from M2M to IoT 14

3.1. Internet of things concept 14
3.2. M2M definition and features 16
3.2.1. Definition 16
3.2.2. Features 17
3.3. Internet of objects definition and features 17
3.3.1. Definition 17
3.3.2. Features 17
3.4. Main differences 18

4. Key building blocks 19

4.1. Trigger functions 19
4.1.1. RFID 19
4.1.2. Near Field Communication (NFC) 21
4.1.3. 2D barcode 23
4.1.4. Wireless sensors 25
4.2. Communication technologies 25
4.2.1. Addressing technologies 25
4.2.2. Networking technologies 27

5. Market structure and player strategies 32

5.1. M2M 32
5.1.1. Architecture 32
5.1.2. Standards 33
5.1.3. Value chain 34
5.1.4. Main Market Players 35
5.2. Internet of Objects 39
5.2.1. Architecture 39
5.2.2. Standards 39
5.2.3. Value chain 45
5.2.4. Main market players 47
5.3. Strategic analysis 54
5.3.1. M2M 54
5.3.2. Internet of Objects 58

6. Vertical markets 62

6.1. Synthesis 62
6.2. Automotive Industry 63
6.2.1. Main challenges 63
6.2.2. Regulation 63
6.2.3. Value chain 65
6.2.4. Supply chain applications 65
6.2.5. Consumer-facing applications 68
6.3. Energy: smart metering becoming a reality 70
6.3.1. Key points 71
6.3.2. The value chain 71
6.3.3. Regulation 76
6.3.4. Business model 77
6.3.5. Level of deployment 78
6.4. Food and retail industry 80
6.4.1. Main challenges 80
6.4.2. Retail value chain 80
6.4.3. General challenges for the retail industry 80
6.4.4. Supply chain applications 81
6.4.5. Consumer-facing applications 85
6.5. Consumer electronics 88
6.5.1. Digital e-readers: the most consumer M2M devices 88
6.5.2. Personal navigation devices: connectivity to offset the decline? 90
6.5.3. Handheld game consoles 91
6.6. Connected Home 93
6.7. Healthcare & pharmaceuticals 95
6.7.1. Pharmaceutical industry 95
6.7.2. Healthcare applications 101
6.8. Textile industry 104
6.8.1. Main challenges 104
6.8.2. Value chain and supply chain 105
6.8.3. RFID in textile industry 105
6.8.4. Major deployments 106
6.8.5. Prospects 107
6.9. Aeronautics 108
6.9.1. Main challenges 108
6.9.2. Supply chain application 111
6.9.3. Consumer facing applications 113

7. Forecasts 115

7.1. Drivers and barriers 115
7.1.1. Drivers 115
7.1.2. Barriers 116
7.2. Main assumptions 118
7.3. Forecasts 120
7.3.1. Forecasts 2010-2020 120
7.3.2. Forecasts by vertical 120
7.3.3. Forecasts by technology 122

Tables

Table 1: Properties of passive RFID tags 20
Table 2: Mobile technologies specifications 30
Table 3: Level of 4G adoption (in terms of subscriptions) 31
Table 4: Main module maker positioning 36
Table 5: OSI network model implementation 45
Table 6: Overview of technical players’ positioning 48
Table 7: Overview of solutions provided by network operators 49
Table 8: Bandwidth required by M2M application 58
Table 9: Interests per vertical 59
Table 10: Level of implementation in each vertical 59
Table 11: Main applications in the automotive industry 68
Table 12: Summary of some current national policies, regulation and targets for smart grids and
meters, and main activities of major utilities 76
Table 13: RFID Gains for retail application 81
Table 14: Some of the connected objects demonstrated at CES2013 93
Table 15: Healthcare expenditure per capita in selected countries, 2009 101
Table 16: Key Figures 110
Table 17: RFID initiatives in the aeronautical industries 112
Table 18: Global wine production 2009-2011 119

Figures

Figure 1: Evolution of the different components of the Internet of Things 8
Figure 2: Concept of the Internet of Things 15
Figure 3: NEC’s Smart City Solutions for 4 Layers 16
Figure 4: 2D barcode principles 18
Figure 5: The different concepts of the Internet of Things 18
Figure 6: RFID solution composition 19
Figure 7: Passive RFID architecture 20
Figure 8: The use of a NFC-enabled phone for a mobile transaction 22
Figure 9: NFC operation in read/write mode 22
Figure 10: NFC credit cards 23
Figure 11: QR-code scanning 24
Figure 12: Role of QR-code as part of marketers’ upcoming strategies 24
Figure 13: Communication flow in the EPCglobal Network 26
Figure 14: ONS 2.0 architecture 27
Figure 15: Overview of a Personal Area Network ecosystem 28
Figure 16: Main technologies in use according to bandwidth and reach 28
Figure 17: Low cost LTE standardization roadmap 31
Figure 18: Architecture of a M2M solution 32
Figure 19: M2M value chain 34
Figure 20: Description of the Orange M2M offering 36
Figure 21: Mobile carrier positioning 37
Figure 22: Breakdown of the total cellular M2M market, per M2M segment, 2012 38
Figure 23: EPCglobal Network architecture framework 40
Figure 24: EPCglobal Network implementation 41
Figure 25: Ubiquitous ID implementation 43
Figure 26: Layered IP architecture 44
Figure 27: Value chain of RFID technology 46
Figure 28: Orange offering in logistics 50
Figure 29: GS1 system 53
Figure 30: QoS strategy at Telenor 55
Figure 31: M2M development by vertical industry 57
Figure 32: Automotive supply chain 65
Figure 33: RFID embedment at Volkswagen 66
Figure 34: RFID Tags in Truck Tires 69
Figure 35: The value chain of M2M 71
Figure 36: Example of smart meter: Tokyo Electric Power Company 73
Figure 37: Example of in-home energy display device 74
Figure 38: Data management products from eMeter 75
Figure 39: Examples of clean energies and other applications connected to smart home 76
Figure 40: Smart meter deployment in the USA 78
Figure 41: Expected Smart Meter Deployments by State by 2015 79
Figure 42: Estimated smart meters rollout by 2020 79
Figure 43: Food Supply Chain 80
Figure 44: RFID for Food Logistics 81
Figure 45: RFID tag embedded on crates 82
Figure 46: RFID reader embedded on gates, in IKEA supplier warehouse 83
Figure 47: RFID readings using RFID readers attached to yellow gates 84
Figure 48: Proportion of Americans owning e-book reader and tablet 89
Figure 49: Ads opt out option on Kindle 90
Figure 50: Weather forecasts (up to 5 days) on a Garmin nüLink! 1695 91
Figure 51: Gas prices comparison on a Garmin nüLink! 1695 91
Figure 52: Home by SFR solution 94
Figure 53: Pharmaceutical Supply Chain 96
Figure 54: Potential Applications of RFID in Life Sciences 96
Figure 55: Conceptual illustration of the capability to support several applications 99
Figure 56: Smart scale 103
Figure 57: Supply chain of the textile industry 105
Figure 58: Aeronautics value chain 109
Figure 59: Airbus transport fleet 109
Figure 60: Boeing 787 Dreamliner assembly map 110
Figure 61: Aircraft parts assembly breakdown (by name, origin and company) 110
Figure 62: Airbus value chain 111
Figure 63: RFID implementation onboard the aircraft 112
Figure 64: Air transport, passengers carried 113
Figure 65: Growth forecast for cumulative volume of embedded telematics by region 118
Figure 66: Forecasts for the different components of the Internet of Things 120
Figure 67: Breakdown of IoO and M2M connected objects by vertical in 2012 121
Figure 68: Breakdown of IoO and M2M connected objects by vertical in 2020 121
Figure 69: Breakdown of the technology used for IoO and M2M 122
Figure 70: Breakdown of M2M technologies, in 2012 122
Figure 71: Breakdown of M2M technologies, in 2020 123

 

 

 

Contact Clare: clare@reportlinker.com
US: (339)-368-6001
Intl: +1 339-368-6001

 

 

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