Team 3

Internet of Things

IoT - the concept of space in which all of the analog and digital worlds can be combined.

Internet of Things can be regarded as the link of networks, in which a small combined into one the

larger network.

This term was suggested in 1999 by Kevin Ashton, one of the first enthusiasts,

fascinated by RFID, and now heads the Research Center Auto-ID Center

at MIT.The number of devices in the IoE is expected to increase

dramatically in the forecasted period (and probably beyond).

Sources: BI Intelligence estimates, Geektimes

Internet of Things: Russia

335

527

980

+57.3%

20202013 2015

+86.0%

Internet of Things in Russia is expected to increase almost twofold over 5 years period, with a CAGR of almost 10%.

Russian IoT market, $

mln

Even though there are certain downfalls in Russian market of Internet of Things, it is still expected to grow 86% in the next 5 years to a total of $980 million.

Main drawbacks to the development of Russian IoT:

Absence of manuals for foreign technologies

Old thinking + old technologies

Current crisis may limit investments

As a result, the Russian IoT Market is forecasted to grow at a slower pace than Global:

2020

0,030

2015

0,014

-53,3%

Share of Russian IoT of Global IoT market, %

Source: J'son & Partners Consulting

Source: J'son & Partners Consulting, IDC

We expect following categories as growth drivers for IoT in Russia:

• Healthcare• Smart Home• Transport

• Buildings

M-Health market’s volume, 2017

World - $25,4 bln

Russia -$0,8 bln

Internet of things: Healthcare

The “digital health” sector of Russian IoT market includes about 60 active startups and less than 10 active investors, whose work is extremely uncoordinated.

Wearable devices

Search & reservation

Clinic management systems

Other Most active investors• IIDF (7+ startups in portfolio)

• Bright Capital Digital & Aurora Venture Capital (“Doctor na

rabote”)

• Skolkovo (accelerated “Medesk”; now primarily invests in

biotech)Forecast for the future

Russian “digital health” sector will develop at a slow pace because of:

• Nonadapted laws;

• Poor Internet coverage;

• Insufficient financing.

Sources: Rusbase, Crunchbase, Brookings, McKinsey&Co.

Sources: Analisys of our team, J'son & Partners Consulting, Nielson company

Domestic companies are inferior to foreign analogues in functionality as well as in marketshare

Price-is an obvious advantage of Russian’s systems “SmartHouse”

The key needs of users on the Russian market

4

86112

142

17633 30 27

28

0

10

20

30

40

0

50

100

150

200

2014 2015E 2016E 2017E

Volume of market, mln usd

Growth rate, %

The dynamics of market growth in Russia

vs

Refrigerator – Enables remote viewing of its content and

recommends recipes based on stored items;

Light bulb – Turns off when no one is nearby and can be

remotely activated;

Sprinkler system – Monitors weather over time and

determines when to turn on and shut off;

Scale –Aggregates data from other devices and provides a

constantly updated personal health plan;

Laundry washer and dryer – Sends an alert when the cycle is

done and can be remotely activated;

Tap water filter – Automatically shuts off when nothing in the

sink.

LOOK.in Z-wave WeMo

Devices

Typical light and outlet configuration2 in-wall dimmers

1 in-wall switch3 motion sensors

2 wall plugs2 rgbw bulbs

In total (includes

controller)460 $ 857 $ 619 $

Internet of things: Smart Home

Internet of things: Transport

Most active investors

• IIDF (The investment amounts to $500.000; 10+ startups in

portfolio)

• Cloud4Auto Ventures (The investment amounts to $350.000;

4+ startups in portfolio)

Auto Transport & Logistics

Sources: IIDF, Rusbase

0

200

400

600

800

1000

1200

2010 2013 2015 2020

Number of devices, mln Market's volume, mln$

Forecast for the market’s proxy

Internet of things: Smart Buildings

Smart system includes

Sources: Intel, Greenbiz, Memoori

Physical security

Lightning, temperature & humidity control

Fire detection & safety etc.

The system may look like…

Energy savings

Security

Comfort

Productivity & time saving

24,4%

2020

22,9

85

2014

The global market will grow with CAGR 24,4%

$, bln.

79

10,9%

20202014

147

$, mln.

The Russian market will grow less with CAGR 10,9%

And will need to develop…

Data protection

Speed channels: 4G, 5G, optic

Low cost solutions

Stability support

Market players

Smart buildings is a fast growing share of IoT, its main growth drivers are technology development and a strong demand from the real estate owners

Summary

Russian sector “Transport” has potential for development, but it is very slow for several reasons:

Poor Internet coverage;

Insufficient financing.

The “Digital Health” sector of Russian IoT market is pretty active, but uncoordinated.

The “Smart House” market in Russia is growing by 30% per year and it’s volume about 200 mln. $

Russian IoT market is still behind Western countries and will continue to be such in the future. Still, it will increase 86% by 2020.

Meet our brilliant team

• Daniil Gagarin - Internet of Things&Transport

• Alex Demachev - Internet of Things: Russia

• Kirill Yatsushko - Internet of things: Healthcare

• Kirill Medvedev- Internet of things: Smart Home

• Julia Rusinova - Internet of things: Buildings

• Anna Rakovskaya - Design