energy, iot & 5g...energy, iot & 5g everything is connected marcus törnqvist lead...
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Energy, IoT & 5GEverything is connected
Marcus TörnqvistLead Engagement Manager Internet of Things
Ericsson, Technology & Emerging Business
+46725746763 2018-05-17
Digitalization & disruption all around
- World’s largest taxi company owns no taxis (UBER)
- Largest accommodation provider owns no real estate (AIRBNB)
- Largest phone companies own no telco infrastructure (SKYPE, WECHAT)
- World’s most valuable retailer has no inventory (ALIBABA)
- Most popular media owner creates no content (FACEBOOK)
- Fastest growing banks have no actual money (SOCIETYONE)
Ericsson | 2018-05-17
5G enabled digitalization revenues for ICT players
— Source: Ericsson, Arthur D. Little
— Note; *) Year 2026
13%
8%6%
10%
20%
13%
1 233*
CAGR 19´-26´
USDbn
Energy & Utilities
Manufacturing
Public safetyHealthcare
Public transport
Automotive
Financial services
+113%
+134%
+128%
+122%
+115%
+125%
+115%
10%
Media & Entertainment
+126%
19%
Content
Energy & Utility industry on the verge of disruption1
IoT & 5G – What is the fuss all about?2
When everything is connected3
Energy & Utility industry on
the verge of disruption
Rapid growth of power generation from renewables in EU
1%17%
0
30
60
90
120
0
1 000
2 000
3 000
4 000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Renewables, excl. hydro
Hydro
Nuclear
Gas
Coal
Oil
CO2 emission in EU, total, Index (1990 = 100)
Based on Worldbank statistics
Po
we
r g
en
era
ted in
EU
(T
Wh
)
Declining demand
Ericsson | 2018-05-17
Utility industry is in a financial stressIn
de
x (
20
08
= 1
00)
-2,0%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
-20
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues
Day ahead system spot Nordpool
EBIT%
ROA%
Declining revenue
Index
1990=100
Based on Worldbank statistics
GDP growth without increased use of electricity nor energy
0
50
100
150
200
250
300
1990 1995 2000 2005 2010 2015
Energy use (kg of oil equivalent per capita) (IND1990) CO2 emissions (metric tons per capita) (IND1990)
Electric power consumption (kWh per capita) (IND1990) GDP per capita (current US$) (IND1990)
Ericsson | 2018-05-17
Your products and services are widely desired, but largely unaffordable
Customer trust and satisfaction are in steep decline
A highly concentrated business model with high fixed costs
A high degree of hidden assets outside organizational boundaries
A lack of assets needed to meet changing customer needs
A lack of awareness and/or capabilities necessary to learn customers’ true needs
Utility industry shows symptoms of being
on the verge of disruption
Source: former Harvard Business School professor Shoshana Zuboff,“Creating Value in the Age of Distributed Capitalism.” McKinsey Insights, Sept. 2010.
1
2
3
4
5
6
Ericsson | 2018-05-17
New disrupted value chain with “asset-less” business models
Supply DemandStorage & Aggregation
Aim is sustainable& emission free
Aim is flexibility
Customer
TradingMarkets
Aim is newbusiness models
CustomerCustomer
Gridinfrastructure
Transmission Distribution
Data hub
Day a head (Days)
Intra day (Hours)
FRR A/M (15min)
FCR-N (Minutes)
FCR-D (Seconds)
Aim is security of supply, accessibility and power quality
Aim is transparency and speed
ESCOs
Asset owners
Regulated
Monopoly
Open
Competitive
Market
“Connectivity, combined with electrification and decentralisation, holds the potential to create a highly interconnected system, transforming the way electricity is supplied and consumed.”
IEA – Energy & Digitalization (2017)
IoT & 5GWhat is the fuss all about?
Converging technology trends
Cloud
5GIoTTechnology evolution
enabling new use cases
Intelligence is moving
closer to the edge
Strong growth but
fragmented landscape
Disrupting value chains and enabling new business models
Ericsson | 2018-05-17
Technical expectations of 5G
*For low power IoT devices
Source: ITU-R, NGMN, 3GPP
Peak Data Rate
1 - 20 Gbps
User Experienced Data Rate
10 -100 Mbps
Spectral Efficiency
×1 - ×3
Mobility350 - 500
km/h
Latency 1 - 10 ms
Connection Density
10k - 1m
devices / km2
Network Energy Efficiency
×1 - ×100
Area Traffic Capacity
0.1 - 10
Mbps / m2
Availability99.999%
(of time)
Battery life 10 years*
Reliability99.999%
(of packets)
Position
accuracy10m - <1m
Security
Strong subscriber
authentication, user
privacy and network
security
Massive IoT is already here in transition from 4G to 5GFeatures using cellular technologies
Extended CoverageCat-M1 and NB-IoT
devices support
Years of
battery life
10+
Extended Long DRX
Power Saving Mode (PSM)
Module cost
reduction
90%Better
coverage
20dB+
Ericsson | 2018-05-17
Transformation from M2M to IoT
M2M IoT
- Horizontal platform for
vertical applications
- Open environments
- Data centricity
- Easy access as a
Service
- Business focused
innovation
Technology
Vertical Domains
Single-purpose
Business
Cross-industry
Multi-purpose
Interoperability
Innovation
Infrastructure
Current IoT ecosystem
Device
Manufacturers
Application
Developers
Service
Providers
Enterprises
Traditional IoT Platform approaches
Network
Connectivity
Connectivity
Management
Application
Platform
Applications
Device Specific Platform
& Services
Devices
Connectivity
Management
Network
Connectivity
Applications
Device Platform Generic PlatformIoT Value Chain
Generic IoT Application
Platform
Connectivity
Management
Network
Connectivity
Applications
DevicesDevices
Ericsson | 2018-05-17
Fragmentation of data
Lack of connectivity insights
Limited speed & scalability
Lack of monetization & settlement
High entry barrier for Massive IoT
Fragmented ecosystem
Challenges with current ecosystem
IoT Platform
APIs APIs APIs
Developer Developer Developer
Devices Devices Devices
IoT PlatformIoT Platform
Ericsson | 2018-05-17
Chipsets &
Technology
Modules
DevicesIPSO smart obj.
LWM2M
CoAP
UDP/IP
NB-IoT
STA
ND
AR
DIZ
AT
ION
Standardization – The engine for scale
Qualcomm
SequansArm
Gemalto
Intel
Device standardizationOpen Mobile Alliance & IP Smart Objects
When everything is connected
Ericsson | 2018-05-17
Ericsson “5G business potential” study
Phase 1”The 5G business potential”
Digitalizationrevenues for ICT players
5G enableddigitalization revenues
5G operator addressable digitalization revenues
Phase 2“The guide to
capture the 5G
industry
digitalization
business
potential”
5G use case clusters
potential
IoT business models
Next steps
for operators
— What are the most relevant 5G use case clusters to address?
— 9 horizontal use case clusters with use cases and evolutionof 5G
— What first steps to realize the 5G enabled value?
— Key learnings from the case studies and cluster analysis
— What are current examples of successfulbusiness models?
— 8 IoT case studies exemplifying the potential and road to 5G
4
5
6
1 2 3
Ericsson | 2018-05-17
IoT use cases evolution with supporting technology
Case study examples Current On the road to 5G 5G experience
Condition-based maintenance
Hazard and maintenance
sensing
Commercial drone solutions
Autonomous robotics
Connected venues
Enhanced video services
One pilot – one drone
mission planning
Enhanced in-venue
experience
Predictive
maintenance
Multi-drone flight
Autonomous / sensor
based flight & actions
AR enhanced, replay enabled
venue experience
Smart, prescriptive
maintenance
Mass autonomous flight
Massive multi user
experience outside the
venues
Visual sensory supported
maintenance
Latency
Throughput
Bandwidth
Device
density
Bandwidth
Device
density
Example technologies
— Multi-standard network
— Cat-M1/NB-IoT
— Cloud based IoT platform
— IoT monetization
— Identity management
— Cloud-optimized network functions
— Virtualized network function orchestration
— Gigabit LTE
— Massive MIMO
— Network slicing
— Dynamic service orchestration
— Predictive analytics
— Data federation
— Security management
— 5G NR
— Virtualized RAN
— Federated network slicing
— Distributed cloud
— Real-time machine learning/AI
— Cross industry monetization
Ericsson | 2018-05-17
Industry Use case categories
Public safetyManufacturing AutomotivePublic
transportHealthcare
Energy &
utilities
Financial
services
Media &
entertainment
Industrial
control and
automation
Planning
and design
systems
Field
devices
Other Other Other Other Other
Autonomous
driving
Connected
services
Safety and
traffic
efficiency
services
Monitoring,
communication
and analytics
systems
Passenger
information
systems
Smart
ticketing
systems
Smart grid
Smart energy
management
Other
Urban and
infrastructur
e security
ID
management
Cyber
security
Lending,
payments and
investment
Insurance
Other
Patient
applications
Hospital
applications
Medical data
management
Entertainment
Advertising
Other
Ericsson | 2018-05-17
5G-IoT use case clusters
AutomotiveMedia & Entertainment
Public
transportHealthcare
Financial services
Agriculture RetailEnergy and
utilitiesPublic safety Manufacturing
+200 use cases in 10 industries
Source: Ericsson and Arthur D Little
Go-to-market challenges
— Business and monetization model
— Value chain positioning
— Role in ecosystem
— Partnership development
Deployment challenges
— Technical performance criteria
— Enterprise networks/Indoor
— Device, network, computing and service enablers
Enhanced video services
Monitoring and tracking
Real time automation
Smart surveillance
Autonomous robotics
96 73 101 47 35
Hazard and maintenance
sensing
Remote operations
Augmented reality
Connected vehicle
57 24 69 41
Application based cluster methodology
Ericsson | 2018-05-17
Emerging IoT & 5G clustersG
o to m
ark
et c
halle
nge
Low
Hig
h
Deployment challengesEasy to
deployDifficult to deploy
Remote operations
Smart SurveillanceAutonomous Robotics
Connected vehicle
Enhanced video services
Monitoring and tracking
Real-time AutomationAugmented reality
Source: Ericsson and Arthur D Little
Hazard and maintenance sensing
Ericsson | 2018-05-17
Manufacturing Energy & utilities Public safety Public transport Healthcare Media and
entertainment
Automotive Financial services Retail Agriculture
Three IoT & 5G use case clusters are especially relevant for Energy & Utilities
Source: Ericsson and Arthur D Little
Industry breakdown per cluster
Enhanced video services
47%
Real-time automation
56%
Monitoring and tracking
32%
Connected vehicle
47%
Autonomous robotics
52%
Hazard and maintenance sensing
33%
Remote operations
51%
Augmented reality
45%
Smart surveillance
51%
Ericsson | 2018-05-17
Smart grids – 5G evolution
5G experience
5G
Requir
em
ents
Current On the road to 5G 5G experience
Smart meters
— Smart meters
— Electronic communication
platform
— E-billing
Power generation and distribution
automation
— Large scale distributed generation
facilities, forming a “virtual critical
infrastructure”
— Real-time load balancing
Smart grid
— Distributed energy resource1
management in a secure
fashion
— Distribution automation
— Management of edge-of-grid
generation (including micro
generation)
What NW req.
Source: Electric power research institute, GE, European commission, Ericsson and Arthur D Little
1. Distributed energy resources (DER) are smaller power sources that can be aggregated to provide power necessary to meet regular demand. Cluster - Real-time automation
Ericsson | 2018-05-17
Smart grids – 5G KPI
5G Experience
Source: Ericsson and Arthur D Little
What NW req.
99.999% Reliability & Availability
Data rate 20Gbps
1ms Latency
SecurityPosition accuracy <1m
10 Years Battery life
Connection density
500km/h
Mobility
10K-1m
devices/km2
Cluster - Real-time automation
IEA’s “No-regrets [policy] recommendations”Energy & Digitalization (2017)
Build expertise1
Build flexibility into policies3
Ensure appropriate access to data2
Participate in broad inter-agency discussions5
Experiment4
Focus on overall system benefits6
Monitor the energy impacts of digitalization
on overall energy demand7
Provide a level playing field9
Incorporate security by design8
Learn from others10
Marcus TörnqvistLead Engagement Manager Internet of Things
Ericsson, Technology & Emerging Business
+46725746763