IOT. Internet of Transformation. Whitepaper.
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1 IOT Internet of Transformation Whitepaper
2 1 1.2 Definition of the Internet of Things 1.1 An Internet in Evolution Over the past decade or so, concepts of what the Internet is, or will become, have shifted dramatically. Indeed, the Internet can rather be looked at in terms of different stages of evolution given that, while the basic concept behind the Internet remains the same, its scope has proven itself to be hugely dynamic. Figure 1: Juniper Phased Evolution Model: Internet Analysis of the phased development of the Internet as shown above demonstrates that, for the largest part of its lifespan, the Internet has primarily been used to transmit information between machines (PCs, mobile devices) and humans. In essence, it has been used as a communications network for humans, where data has been generated by humans. Owing to developments in radio technology and falling component costs, it is now perfectly feasible to consider that the Internet can also be used as a communications network for machines in parallel to its current use. As low-power radio technology such as RFID (Radio Frequency Identification) emerged, Kevin Ashton, known for coining the phrase Internet of Things, hit upon its basic concept in 1999: If we had computers that knew everything there was to know about things, using data they gathered without any help from us, we would be able to track and count everything, greatly reducing waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. Source: Juniper Research
3 2 We see, therefore, that Ashton noted 2 essential ingredients for the IoT: Connected device Analytics Indeed, it is as this point that it is of Juniper s opinion that merely connecting a device to the Internet does not mean that it forms part of the IoT automatically, even if the device is able to report data that it has produced. Analytics must be implemented at some stage during the delivery chain, with the aim of supplying intelligence to other, connected things. Thus, according to Juniper Research, we arrive at a definition for the IoT: The Internet of Things represents the combination of devices and software systems, connected via the Internet, that produce, receive and analyse data with the aim of transcending traditional siloed ecosystems of electronic information in order to improve quality of life, efficiency, create value and reduce cost. 1.3 Why an IoT? As alluded to by Kevin Ashton s vision for the IoT, understanding is power. Just as the invention of the printing press circa 1440 signalled a new era of information assimilation by the people, and is credited with helping spur the Scientific Revolution and the democratisation of knowledge, Juniper Research believes that the IoT will have a similar profound effect on society in that objects and devices, previously silent in terms of gatherable information, are able to provide systems with near real-time intelligence. As islands of data are connected with one another, the potential for the system to assimilate actionable information increases exponentially. Progress towards an IoT is already underway. Indeed, if one considers the inflection point for the birth of the IoT to be in terms of connected devices exceeding the number of humans on earth, Cisco estimates that this occurred at some point between 2008 and Given that a sizeable number of sensing devices are already in place, several use cases for the IoT have emerged, where these span numerous industries and markets, broken down in terms of their primary segments: Consumer Industrial Public Services Consumer i. The Smart Home The smart home concept was in fact envisioned many decades ago, although it is only recently (following the advent of broadband networks, wireless communications and smart mobile devices) that the concept has begun to gather real steam. Consumer perception of the smart home is just beginning to change from something only affordable by the rich (with Bill Gates s famous $63 million mansion propagating this belief) to the
4 3 stage where piecemeal smart home devices (set-top boxes, smart TVs, smart plugs and thermostats) are becoming affordable to the wider public. ii. Connected Vehicles Connecting vehicles to the IoT is perhaps one of the most promising areas for consumer uptake of IoT services and technology. The multitude of devices and services within the home make for a difficult-to-manage value proposition. Conversely, the car represents a much simpler challenge in terms of igniting consumer interest. Potential areas for service delivery within the connected car include: Infotainment Vehicle Maintenance Driver Assistance Technologies iii. Healthcare Current implementations of various healthcare systems all have an inefficient model in place whereby patients must physically meet with a caregiver based on eventualities (ie the patient is sick but uncertain as to the cause) rather than facts (where the doctor has examined available information to provide a diagnosis). This leads to waste in situations whereby remote provision of data and diagnosis would have led to the same result. In the same instance, the concept of gathering health-related data may aid in earlier diagnosis of serious illnesses Industrial i. Retail For retail, the IoT brings with it the concept of near real-time information (and the ability to leverage that), whereby strategy and connections to the supply chain have previously been built upon historical data. Essentially, application of IoT devices and systems will enable: Improved customer experience, resulting in higher loyalty Greater insight into and control over products in the supply chain Combined, the resultant benefits will equate to less waste, and therefore lower costs. ii. Industry The use of IoT in industrial sectors is primarily concerned with: Increasing productivity and reducing waste Business insight Leverage connected devices to explore new growth avenues At the present market state, many components and systems within manufacturing, field-deployed machinery and so on are either not connected and unable to report on their state or operational performance or, where they are networked to a receiving system, these system are siloed off from other business reporting segments.
5 4 iii. Buildings Where the smart home is predominantly discussed in terms of increasing the homeowner s comfort and peace-of-mind, the IoT in the sphere of commercial buildings is focused almost entirely on 2 aspects: Energy efficiency Security This means that connected buildings present one of the clearest benefits for IoT applications; where lower energy use results in cost-savings, while building security ensures protection of both physical and intellectual property. In many cases, security and energy management systems are already in place (albeit without an analytics layer on top). In some instances the transition will be smoother, as long as the integration of legacy devices and systems is managed correctly Public Services i. Street Lighting Street lighting is undoubtedly one of the pain points for towns and cities. Citizens demand it, while in the interests of safety it is highly beneficial that ample lighting is provided on city streets to provide sufficient illumination. This lighting comes at a high price. Not only are the running and maintenance costs high across a given year, but the emissions generated from cities street lights are substantial. ii. Smart Metering & Smart Grid Through a combination of regulation as well as necessity on the part of utility companies, achieving efficiencies during the transmission and distribution of electricity is almost a universal concern. Transitioning from so-called dumb meters to smart meters has been ongoing in several countries to date, with varying success. The concept of the smart grid can be explained as the transformation of a mono-directional system towards a multi-directional one. This involves the implementation of connected devices along the transmission, distribution and end-user network: Smart meters are able to communicate with the supplying utility in real-time Voltage phase, current and temperature measurement units to monitor line health Transformer and other network monitors The principle benefits enabled by establishment of the smart grid are increased reliability owing to pre-emptive fault detection and mitigation, reduced energy losses due to technical and non-technical causes (such as theft). A side-effect of improved grid reliability is the ability to on-board intermittent renewable energy sources alongside energy storage solutions to reduce reliance on expensive, environmentally damaging peaking plants called upon when unexpected spikes in energy demand occur.
6 5 1.4 Implementation Figure 2: IoT Implementation Strategy Other Devices This segment includes all other connected devices not falling under the consumer segment; RFID tags and Bluetooth Low Energy beacons used in retail, soil monitoring sensors, commercial and industrial building sensors, connected street lights, smart meters, connected smart grid monitors and commercial vehicles. The total IoT device installed base can be summarised in the following figure. We expect IoT devices to number 38.5 billion in 2020, rising from 13.4 billion in Figure 3: Total IoT Device Installed Base (m) 2020: 38.5bn 50,000 40,000 Source: Juniper Research 30,000 20, Forecast Summary 10,000 To present our estimates for the number of devices connected to the IoT, we have split our forecast into 2 segments: Consumer Devices This segment includes 3D printers, scanners, smart wireless devices, smartphones, tablets PCs and laptops, connected consumer vehicles, connected TVs, connected other CE (consumer electronics) devices, smart appliances and gateways. Source: Juniper Research All IoT Consumer Devices (m) All IoT Other Devices (m)
7 6 Order the Full Research The Internet of Things: Consumer, Industrial & Public Services Juniper s first edition of IoT (Internet of Things) research provides a comprehensive perspective on the 3 key market segments encompassing IoT applications: Consumer, Industrial and Public Services. Key Features Analysis across 3 key market segments: Consumer, Industrial and Public Services Smart Home, Connected Vehicles, Digital Healthcare Monitoring, Retail, Connected Buildings, Agriculture, Smart Street Lighting, Smart Metering and Smart Grid Distribution Automation Coverage. Business model, implementation and road map strategies for stakeholders. Analysis of key technologies and IoT security models. Interviews with leading players, including Dialog Semiconductor, Gemalto, Intel, Jasper, Marvell, SIGFOX, Splunk, TeleCommunication Systems, Xively Key player capability and capacity assessment, together with market positioning matrix. Market forecasts for IoT adoption, devices, spend, revenue and cost-savings across consumer, industrial and public services segments. What s in this Research? Executive Summary - Key trends, competitive analysis, market forecasts and strategic recommendations (PPT). Market Trends & Competitive Landscape - Strategic analysis of market dynamics, drivers and trends, with vendor capability assessment and matrix (PDF). Market Sizing & Forecasts Regional and sector analysis together with forecasts for key metrics, including mobile and online purchasers, transaction volumes and values (PDF). Interactive Forecast Excel Highly granular data set comprising more than 15,000 data points, allied to an Interactive Scenario tool giving user the ability to manipulate Juniper s data (Interactive XL). Publications Details Publication date: July 2015 Author: Steffen Sorrell Contact Jon King, Sales & Marketing Manager, for more information: Jon.King@juniperresearch.com Juniper Research Ltd, Church Cottage House, Church Square, Basingstoke, Hampshire RG21 7QW UK Tel: UK: +44 (0) / USA: (International answering service) Fax: +44(0)
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