Driving Change in Every Industry Bringing Opportunity for Every Tech Player www.eito.com
Publisher Bitkom Research GmbH Albrechtstraße 10 10117 Berlin Register of companies: Amtsgericht Charlottenburg HRB 87370 B Managing Director: Dr. Axel Pols P +49.30.27576-560 F +49.30.27576-51560 www.bitkom-research.de EITO Sponsors Deutsche Telekom AG KPMG AG Telecom Italia S.p.A. With the support of: European Commission, DG Connect, DG Enterprise and Industry OECD, Directorate for Sience, Technology and Industry Research Partners The report has been jointly prepared by IDC and the EITO Task Force on the basis of the information available as of June 2016. EITO Task Force Enrico Barella (Telecom Italia) Tzvetana Bounova (BAIT) Antonio Cimorra (AMETIC) Valerica Dragomir (ANIS) Diane Dufoix (TECH IN FRANCE) Dana Eleftheriadou (EU Commission) Andreas Fier (Deutsche Telekom AG) Petar Indovski (MASIT) Vilma Misiukoniene (INFOBALT) Pierre Muckly (SWICO) Jonathan Murray (DIGITALEUROPE) Axel Pols (Bitkom e.v.), Chairman Taylor Reynolds (OECD) Loïc Rivière (TECH IN FRANCE) Tiziano Rognone (ANITEC) Yannis Sirros (SEPE) Patrick Slaets (AGORIA) Myriam Vassiliadou (SEPE) Bruno Wallraf (KPMG) Verena Weber (OECD) EITO Project Management Franz Grimm Katja Hampe Layout and Graphics Sabrina Flemming Bitkom e.v. Cover Jezper fotolia.com Copyright note Text, data, and tables/figures included in the EITO reports are subject to copyright law and must not be published without written permission of Bitkom Research. All excerpts of text, data, tables and figures rightfully used by third parties shall mention in a manner clearly visible for the reader the source of the publication and the year of appearance. If you wish to quote from this report, please provide us with a sample of the intended use of the information by e-mail to service@eito.com. This will enable us to ensure accuracy, currentness and the proper context.
The EITO project is sponsored by following companies and organizations (Gold sponsors): Deutsche Telekom AG www.telekom.de Telecom Italia S.p.A. www.telecomitalia.it KPMG Deutsche Treuhand-Gesellschaft Aktiengesellschaft, Wirtschaftsprüfungsgesellschafwww.kpmg.com
The EITO reports are prepared and distributed in cooperation with our partner organizations across Europe AGORIA (Belgium) Belgium Federation for the technology industry www.agoria.be DIGITALEUROPE European umbrella organization for the digital technology industry www.digitaleurope.org AMETIC (Spain) Asociación multisectorial de empresas de la electrónica, las tecnologías de la información y la tecomunicación, de las telecomunicaciones y de los contenidos digitales www.ametic.es INFOBALT (Lithuania) Association of the Lithuanian ICT industry www.infobalt.lt ANIS (Romania) Employers' association of the software and services industry www.anis.ro MASIT (Macedonia) Macedonian ICT chamber of commerce www.masit.org.mk ANITEC (Italy) Associazione Nazionale Industrie Informatica, Telecomunicazioni ed Elettronica di Consumo www.associazioneanitec.it SEPE (Greece) Federation of Hellenic Information Technology & Communications Enterprises www.sepe.gr BAIT (Bulgaria) Bulgarian Association of Information Technologies www.bait.bg SWICO (Switzerland) Schweizerischer Wirtschaftsverband der Anbieter von Informations-, Kommunikations- und Organisationstechnik www.swico.ch Bitkom (Germany) Bundesverband Informationswirtschaft, Telekommunikation und neue Medien www.bitkom.org TECH IN France (France) French Association of Software and Internet Companies www.techinfrance.fr
Content 1 Introduction 1 2 What Is The Internet Of Things? 2 2.1 Definition 2 2.2 Benefits 2 3 Why Is It Happening Now? 3 3.1 Network Technology 3 3.2 Broader Technology Advances Across The IoT Ecosystem 3 3.3 Development Of Standards 4 3.4 IoT Vendor Ecosystem Matures 5 3.5 Common IoT Use Case Features Are Emerging 5 3.6 Regulatory Policies Are Driving Change In Some Use Cases 5 4 Businesses Confirm It Is Happening Now 6 5 The Transformational Impact Of IoT: Auto insurance As A Case In Point 8 6 Barriers Still To Overcome 9 6.1 Fragmented Use Cases 9 6.2 Technology Readiness 9 6.3 Security 9 6.4 Lack Of Best Practices 10 6.5 Convergence Of IT And Operations Technology 10 6.6 Standards Development 10 6.7 Application Development 11 6.8 Regulation And Legal Frameworks 11 7 IoT Adoption In Europe 12 7.1 The European Market 12 7.2 Country Markets 12 7.3 Technology Components 13 8 Key Use Cases And Verticals 15 8.1 Manufacturing 15 8.2 Transportation 15 8.3 Connected Vehicles 15 8.4 Utilities 15 8.5 Smart Home 16 8.6 Public Sector and Smart Cities 16 8.7 Healthcare 16 8.8 Retail 16 8.9 Other Industries 17
9 Competitive Enviroment 18 9.1 The IoT Ecosystem 18 9.1 European Competitiveness 19 10 Essential Guidance 20 10.1 For Technology Vendors 20 10.2 For Communications Service Providers (CSPs) 21 10.3 For Policy Influencers 22 11 Annex: Definitions And Technology Components 24 11.1 Definitions 24 11.2 Technology Components Of The IoT Market 24 12 Appendix 26 Terms and Conditions 26 Customer Feedback 26 List of Figures Figure 1 Familiarity With IoT In Western Europe 6 Figure 2 Importance Of IoT To Organizations' Business Strategies 7 Figure 3 The Auto Insurance Industry Evolves With IoT 8 Figure 4 European IoT Market Forecast (EUR Billion) 12 Figure 5 European IoT Market In 2015 By Country 12 Figure 6 European IoT Market Technology Components 14 Figure 7 Europe IoT Revenues By Selected Use Cases 17 Figure 8 European IoT Market Technology Components 18