The Internet of Things Spending Guide by Vertical Market
currently exists today in several industries but should also be
considered as an emerging market. The enormous impact that IoT/M2M will
have on many industry business processes will also challenge many
horizontal-focused IT vendors and service providers. This is because the
many components needed for end-to-end IoT solutions will create great
friction in the economy and therefore great market opportunity as
vendors expand their offering to gain IoT market share.
Because
this is both a derivative market and a newly additive IT component,
there are many opportunities for vendors to offer parts or product
suites that cover the needed IoT IT set. And vendors will have incentive
to do so as rapid growth will occur as industries see the convenience,
productivity, and efficiency that IoT brings to business processes.
Markets Covered
This product covers the following segments of the Internet of Things market:
Hardware
Smart/connected devices
Software
IT services
Telecom services
Vertical IT spend
Subjects Analyzed
Throughout the year, this product will address the following topics:
Defines Internet of Things from an IT and process perspective
Vertical industry applications of Internet of Things
Market drivers impacting Internet of Things growth
How Internet of Things relates to the machine-to-machine (M2M) IT market
The IT components of Internet of Things
Key Questions Answered
Our research addresses the following issues that are critical to your success:
What constitutes Internet of Things versus machine-to-machine processes?
What are the different horizontal, vertical, and industry-specific IT elements that comprise the Internet of Things market?
How will the Internet of Things IT market grow over the forecast period?
Which vertical markets will show greater growth and IT market opportunity around Internet of Things processes?
Internet of Things IT Ecosystem
Source: IDC
Companies Analyzed
IDC's Internet of Things Spending Guide by Vertical Market
is an Excel pivot table providing clients guidance of the expected
technology opportunity around this new market for the United States and
at the total worldwide level. Segmented into software, hardware/devices,
IT services, telecom, and connectivity services and industry IT spend,
the Internet of Things Spending Guide by Vertical Market service
provides current vendors and newly interested IT vendors with insight
into this rapidly growing IT opportunity and how the market will develop
over the coming year.
Timely Delivery and Support
Throughout the year, this product will offer insight into the latest trends impacting the market. Potential studies include:
The Internet of Things Spending Guide
The overall worldwide and U.S. total addressable IT markets for IoT.
The Internet of Things Solutions Guide
IoT guide defines specific IoT solutions and associated leading vendors and market share.
Internet of Things Case and Use Studies
Specific vendor use cases help illustrate how IoT is impacting various industries.
The global Internet of Things (IoT) market
is poised for exponential growth over the next several years. However,
the IoT ecosystem is a complex segment, with multiple layers and
hundreds of players, including module suppliers, mobile operators,
aggregators, software vendors, and IT service providers. The Internet of Things Ecosystem and Trends service
analyzes the growth of this market from the sensors to the applications
that will demonstrate the power of a world of connected "things."
Markets and Subjects Analyzed
The size of and forecast for the IoT market, including units installed and revenue generated
Synergistic value of the IoT market
Taxonomy of the IoT ecosystem: How is the market organized, and what are the key segments and technologies?
Device-, network-, and application-enablement platforms
Role of connectivity in the IoT market
Vertical use cases of IoT
Core Research
Taxonomy of the IoT ecosystem
Synergistic value model of IoT
Forecast for the IoT market
Profiles of vendors leading IoT evolution
In
addition to the insight provided in this service, IDC may conduct
research on specific topics or emerging market segments via research
offerings that require additional IDC funding and client investment.
Key Questions Answered
What are the size of and forecast for the worldwide and regional markets for the Internet of Things?
What is the role of mobile operators, and how are they benefiting from the surging growth in IoT?
What verticals will lead the IoT movement?
What are the key operational challenges facing mobile operators and vendors in deploying and monitoring connected "things"?
Internet of Things Ecosystem and Trends
Source: IDC
Companies Analyzed
IDC's Internet of Things Ecosystem and Trends service reviews strategies, market positioning, and future direction of several providers, including:
Aeris,
Alcatel-Lucent, AT&T, Axeda, China Mobile, Cisco, Ericsson,
Gemalto, Huawei, IBM, Intel, Jasper Wireless, KORE Telematics, NTT
DOCOMO, Oracle, Orange, Qualcomm, RACO Wireless, Samsung, SAP,
Sensorlogic, Sierra Wireless, Sprint, Telefonica, Telit, T-Mobile,
Verizon, and Vodafone.
IDC Custom Solutions
IDC's Custom Research and Go-to-Market
Solutions harness the power of global research, thought leadership, and
innovative best practices to drive your business forward. With proven
approaches and research-backed methodologies, IDC helps you:
IDC Custom Solutions
develops and delivers programs designed around your specific business
goals using a foundation of research and insights across technologies,
geographies, and industries as well as expertise across practice areas
that span strategy, sales and marketing, and business measurement and
management. Go here to view our overview video.
Unparalleled Coverage of IT Professional Requirements Across Vertical Industries
Whether you are a technology buyer or
provider, IDC Insights' research translates today's global IT
professional requirements and trends into business opportunities for
your organization. With dedicated businesses targeting energy,
financial services, government, healthcare, manufacturing, and retail,
IDC provides unmatched integration of global technology and vertical
industry expertise to deliver industry-specific customer intelligence
that gives clients a powerful business advantage.
The rise of objects that connect themselves to the internet -- from cars
to heart monitors to stoplights -- is unleashing a wave of new
possibilities for data gathering, predictive analytics, and IT
automation. We discuss how to tap these nascent solutions.
M2M and the Internet of Things: A guide
The Internet of Things will consist primarily of machines talking to one
another, with computer-connected humans observing, analysing and acting
upon the resulting 'big data' explosion. Here's how the next internet
revolution is shaping up.
The anatomy of M2M
ThingsThe 'things' in the IoT, or the 'machines' in M2M,
are physical entities whose identity, state (or the state of whose
surroundings) is capable of being relayed to an internet-connected IT
infrastructure. Almost anything to which you can attach a sensor — a cow
in a field, a container on a cargo vessel, the air-conditioning unit in
your office, a lamppost in the street — can become a node in the
Internet of Things.
Sensors
These are the components of 'things' that gather
and/or disseminate data — be it on location, altitude, velocity,
temperature, illumination, motion, power, humidity, blood sugar, air
quality, soil moisture... you name it. These devices are rarely
'computers' as we generally understand them, although they may contain
many or all of the same elements (processor, memory, storage, inputs and
outputs, OS, software). The key point is that they are increasingly
cheap, plentiful and can communicate, either directly with the internet
or with internet-connected devices.
Libelium's
customisable Waspmote sensor/comms board (left) and the Waspmote Plug
& Sense enclosure (right), with connections for sensors, antennas, a
solar panel and USB PC connectivity.
Comms (wide-area)
For long range, or wide-area, links
there are existing mobile networks (using GSM, GPRS, 3G, LTE or WiMAX
for example) and satellite connections. New wireless networks such as
the ultra-narrowband SIGFOX and the TV white-space NeulNET
are also emerging to cater specifically for M2M connectivity. Fixed
'things' in convenient locations could use wired Ethernet or phone lines
for wide-area connections.
Some modular sensor platforms, such as Libelium's WaspMote (left), can
be configured with multiple local- and wide-area connectivity options
(ZigBee, Wi-Fi, Bluetooth, GSM/GPRS, RFID/NFC, GPS, Ethernet). Along
with the ability to connect many different kinds of sensors, this allows
devices to be configured for a range of vertical markets.
Server (on premises)
Some types of M2M installation, such
as a smart home or office, will use a local server to collect and
analyse data — both in real time and episodically — from assets on the
local area network. These on-premise servers or simpler gateways (right) will usually also connect to cloud-based storage and services.
Libelium's Meshlium gateway, which includes local storage, and a diagram of a ZigBee sensor network.
Local scanning device'Things' with short-range sensors
will often be located in a restricted area but not permanently connected
to a local area network (RFID-tagged livestock on a farm, or
credit-card-toting shoppers in a mall, for example). In this case, local
scanning devices will be required to extract data and transmit it
onwards for processing.
Storage & analyticsIf you think today's internet
generates a lot of data, the Internet of Things will be another matter
entirely. That will require massive, scalable, storage and processing
capacity, which will almost invariably reside in the cloud — except for
specific localised or security-sensitive cases. Service providers will
obviously have access here, not only to curate the data and tweak the
analytics, but also for line-of-business processes such as customer
relations, billing, technical support and so on.
User-facing services
Subsets of the data and analyses
from the IoT will be available to users or subscribers, presented
(hopefully) via easily accessible and navigable interfaces on a full
spectrum of secure client devices.
M2M and the Internet of Things has huge potential, but currently
comprises a heterogeneous collection of established and emerging, often
competing, technologies and standards (although moves are afoot here).
This is because the concept applies to, and has grown from, a wide range
of market sectors.
M2M sectors
How is M2M being used, and what are its applications in the future?
Homes
Perhaps the canonical example of the Internet
of Things (and the stuff of many a cheesy futurist visualisation) is
the 'smart home'. The components include sensor-equipped white goods,
security, lighting, heating, ventilation and entertainment devices,
among others, all connected to a local server or gateway, which can be
accessed by the appropriate service providers — and, of course, the home
owner. Link AlertMe
Healthcare
Healthcare is another prominent M2M
application, and comes under various banners including e-health,
m-health, telemedicine and assisted living. Patients with
non-life-threatening conditions can be issued with sensors (for blood
pressure, or blood sugar levels for example), sent home and monitored
remotely by medical staff — and can often be shown how to interpret the
data themselves. This will free up hospital beds and physicians' time
for more urgent cases. More generally, consumer-oriented sensors such as
the Fitbit
can encourage people to adopt healthier lifestyles, helping to keep them
out of the doctors' surgeries and hospital beds in the first place. Link mHealth Alliance
Buildings
The smart home is a subset of the 'smart
building' — which could be an office, a hotel, a hospital, a
manufacturing facility, a retail store or any other public structure.
All such buildings consume energy through heating, ventilation and
air-conditioning (HVAC) systems, and building automation systems can
capture and analyse data from all relevant equipment, allowing
cost-saving energy solutions to be created and implemented. Depending on
the particular building, other subsystems that can be 'smartened'
include structural health, access control and security, lighting, water,
lifts, fire and smoke alarms, power and cooling for IT infrastructure.
Given the resources consumed by today's buildings (40 percent of the world's primary energy, according to The World Business Council for Sustainable Development), the potential monetary savings and environmental benefits on offer in this sector are immense. Link Smarter Buildings (IBM)
Manufacturing
There are many reasons why 'smart'
manufacturing is a good idea: digital control systems, asset management
and smart sensors can maximise operational efficiency, safety and
reliability, while integration with smart building systems and smart
grids can optimise energy consumption and reduce carbon footprint. And,
of course, the smarter the manufacturing process, the quicker it can
respond to changing customer demand. It's no surprise to find that smart
manufacturing is seen by western politicians
as a way of increasing competitiveness in global markets, although
there's no technical reason why Chinese manufacturers, for example,
couldn't adopt the same processes. LinkSmart Manufacturing Leadership Coalition
Automotive & transport
Today's cars routinely
bristle with sensors and computing equipment, covering everything from
engine management to navigation to 'infotainment'. Automobiles are
rapidly becoming connected, context-aware machines that know where they
are, where other vehicles are (both locally and in terms of regional
traffic), who is driving (via driver face recognition) and how they are
driving, and can warn of impending mechanical or other problems, and
automatically summon roadside assistance or emergency services if
necessary. A 'smart' car can be remotely tracked or immobilised if
stolen, and new business models such as 'pay-as-you-drive' insurance can
be implemented.
A
lamp-post mounted (solar-powered) sensor/comms enclosure and an
illustration of its use in traffic monitoring in a 'smart city'
environment. (Images: Libelium)
Supply chain
Given that passive RFID tags cost only
a few cents, it's no surprise to find that M2M technology features
heavily in supply chain management: the ability to track, in real time,
raw materials and parts through manufacturing to finished products
delivered to the customer has obvious appeal compared to patchy data
delivered by irregular human intervention. Fleet management systems
have long made use of GPS tracking, but cellular-equipped sensors can
also monitor the condition of sensitive consignments (temperature for
perishable food, for example), or trigger automatic security alerts if a
container is opened unexpectedly. LinkPerfect intersection: M2M and the supply chain
Retail
The sharp end of the supply chain — retail —
is fertile ground for M2M technology, applying to areas such as
in-store product placement and replacement, kiosks and digital signage,
vending machine management, parking meters and wireless payment systems. LinkM2M Retail Solutions (Verizon)
Field service
Consumer devices, business equipment
and industrial plants can all, obviously, suffer faults that require
repairing. If these things are all 'smart', delivering real-time status
reports to the internet, then field-service operations can be booked
quicker, engineers can be equipped with the correct parts and manuals,
and site visits can be scheduled efficiently. LinkSierra Wireless Field Service solutions
Utilities: smart metering and grids
Smart meters
for electricity, gas and water, and the smart grids they create, form a
major component of the M2M market. Real-time data on resource
consumption down to the household level allows utilities to manage
demand and detect problems efficiently, while householders can save
money by optimising their usage patterns. Links Smart grids — transforming local networks / Current Cost
Security & surveillance
Most people are rightly
wary of the Orwellian aspects of widespread automated security and
surveillance technology, but there are also plenty of benefits to be
had. Smart buildings, including smart homes, can have connected smoke
detectors that alert emergency services when triggered, and activate
only the appropriate suppression systems; connected burglar alarms can
immediately identify the point of entry and motion sensors can track an
intruder's progress in real time (the same sensors can identify and
track legitimate occupants via wireless access-control systems). Link Centra Security Services
Environmental monitoring
M2M technology has great
potential when it comes to monitoring natural or man-made environments.
Suitably placed sensors can provide early warning of pollution, forest
fires, landslides, avalanches and earthquakes, for example. More
generally, air, water and soil quality can be remotely monitored in
places of interest, and changes in the abundance and distribution of key
species (wildlife or pests) tracked and changes to their habitats
logged. Links Slip Surface Localization in Wireless Sensor Networks for Landslide Prediction (PDF) / Habitat monitoring with wireless sensor networks (PDF)
Agriculture
Smart agriculture is a growing field
(as it were), with M2M technology available to track the location and
condition of livestock, monitor the growing conditions of crops, and
optimise the performance of farm equipment (using precise geolocation to
minimise wastage in crop-spraying operations, for example).
High-value crops can be monitored by wireless sensors
for a range of parameters (air temperature, humidity, soil temperature,
soil moisture, leaf wetness, atmospheric pressure, solar radiation,
trunk/stem/fruit diameter, wind speed and direction, and rainfall), with
real-time data gathered by an on-site gateway, sent to the cloud and
accessed via internet-connected PCs or smartphones. This information
allows irrigation and other agricultural interventions to be precisely
matched to local growing conditions. Links Smart Agriculture project in Galicia to monitor vineyards with Waspmote / Cows can text with M2M
Military
Any world-changing technology is likely to
have its darker applications, and M2M is no exception. Many military
applications simply involve ruggedised and security-hardened versions of
existing technologies, and this will apply to M2M as much as any other
sector. Areas of particular interest to those in uniform are likely to
be security and surveillance, transportation and logistics, healthcare
and environmental monitoring. LinksM2M Gains Military Traction / Blueforce Development (Tactical Response, Emergency Medical)
M2M uptake: who is using it, and who is next?
Machine-to-machine (M2M) technology is growing in importance —
but which industries have already adopted it, which are likely to, and
how big is the market?
Machine-to-machine communication is seen by technologists, analysts
and major companies across the world as the next great tool to
revolutionise business. However, predictions for the size of the market
vary and uptake, so far, has been limited.
In 2004, BusinessWeek predicted that M2M would be a $180bn market by 2008. If you believed that, you'd have been disappointed by a 2007 report from The Economist
putting it at around $35bn. By 2010 the market had climbed to $120bn,
according to information from M2M specialist Machina Research — two
years late and still $60bn off the original BusinessWeek projection. The latest Machina Research report predicts the M2M market will grow from $200bn in 2011 to $1.2 trillion in 2022:
Any advanced technology is prone to false starts and an excess of
hype. Wildly optimistic predictions were made for Segway scooters, for
example, but the mass market never materialised. Similarly, we've been
told for years that fusion power, quantum computing, strong artificial
intelligence, robotic cars and electric vehicles are just around the
corner. Again, none of these technologies have yet fulfilled their
promise.
M2M is certainly happening, but the market is fragmented into
numerous verticals. Right now there are around 110 million M2M devices
connected to the internet, according to Juniper Research.
By 2017 this is expected to climb to 400 million. The numbers bandied
about obviously depend on the definitions used, however: Machina
Research, by contrast, puts the number of M2M connections at the end of
2011 at two billion, and expects this to grow to 18 billion by 2022.
According to Frost & Sullivan, the
areas driving this growth will be the automotive industry, with new
'smart' cars; utility companies with smart grids; healthcare and
security, along with home automation. Machina Research, meanwhile, puts
the top growth-driving vertical markets in the following order:
intelligent buildings, consumer electronics, utilities, automotive and
healthcare.
According to Cisco,
the next nine billion or so devices connected to the internet in 2020
will use M2M technologies. Many of these devices will be used to link
the physical world to the internet via sensors that take readings from
their local environment and output the information up into the cloud.
For this reason, the entire field is being forced to grapple with
questions around data preservation, communication and integrity — and
far earlier than other similar technology sectors have had to.
Estimates of the size of the M2M market and its likely growth vary,
but the widespread influence that this technology will undoubtedly have
is concentrating the minds of all kinds of companies. Those whose M2M
strategies succeed will have as much sway over our lives as smartphone
vendors and mobile operators do today. M2M is the next ubiquitous
technology. Get ready.
Jack Clark
Conclusion
The Internet of Things, powered by
Machine-to-Machine communication, is already with us, but remains a
massive opportunity. Properly implemented, it can retool large parts of
the world for better efficiency,
security and environmental responsibility — and of course it can
generate potentially huge amounts of business for the IT companies that
will build and run the systems involved.
Many technology sectors stand to benefit from this new world order,
including mobile network operators and fixed broadband providers, system
integrators, cloud service providers, mobile app developers, sensor and
wireless infrastructure vendors, and purveyors of Big Data
infrastructure and analytics.
In an ideal world, M2M equipment will interoperate smoothly, service
providers will compete on a level open-standards playing field without
attempting to lock customers into their ecosystems, and the Internet of
Things will develop with the same explosive inventiveness as did the
original internet. The remaining articles in this series will explore
how likely that is to happen, and present some examples of M2M in
action.
