Global Internet of Things Market

Forecast 2015 – 2021

Occams Business Research & Consulting

2

Table of contents

•Introduction•IoT Architecture•Value Chain Analysis•Hybrid OR Market Segmentationo By applicationo By enabling technology

•Drivers of IoT Market•Restraints of IoT Market•Challenges of IoT Market•Opportunities of IoT Market•Market share Analysis•Key Strategies of Market Leaders•Geography Analysis•Market Estimation

OCCAMS BUSINESS RESEARCH & CONSULTING PVT. LTD

Internet of things solutions enables wireless connectivity of devices which is changing the way people live and interact within their environment. Various IoT developments and the meteoric rise of smart devices and cloud based software and apps are transforming nearly every aspect of our lives. It is expected that globally up to 50 billion ‘smart’ devices, ranging from cars and parking meters to coffee machines and combine harvesters could be connected to the internet by 2020. The global IoT market is expected to grow at a CAGR of 16.05% during 2015-2021. The global internet of things market constitute of various wired and wireless technologies such as Radio Frequency Identification (RFID), Near Field Communication, Zigbee, Supervisory Control And Data Acquisition (SCADA) and so on. Various components that are used to establish the internet of things network such as sensors, device gateway, LAN, Router, Switch, Cloud also forms the internet of things market.

INTRODUCTION

4

Internet of Things Architechture

Internet of

ThingsDevice Data

Op

era

tio

na

l

Insi

ght

Bu

sin

ess

Insi

ght

Analytics

Data

Internet connected devices

Users or automated systemsFeedback & automated decisions

5

Value Chain Analysis

Source: OBRC Analysis

ChipVendor

Module Vendor

App/midware Vendor

Cloud Provider

MVNOs aggregator

System Integrator

ST Microelectronics,Qualcomm, Gemalto,Freescale, Danfoss, Telit, 3M, Intel, Varta

Device Manufacture

r

Solution Provider

Service Provider

System Integrator

IDE Technologies, IDEO, Quanta Computer, Flextronics, Synapse , Foxconn, Jabil, Frog, Cosmo Supply Lab

Sherlock SystemsTeraNova Consulting

GroupsProSystOracle

Microsot, Google, IBM,

Salesforce.com, Amazon, SAP AG,

ORACLE

Teleena, ASPIDER Solutions, Effortel

, Qualution, and Elephant

Talk.

Accenture, Capgemini, CSC, Fujitsu, Hitac

hi and IBM 

Market Segmentation

Internet of things Market

North America-USA-CanadaEurope-UK-Spain-Germany-Italy-France

Exhaustive segmentation & estimations.

APAC-China-Japan-India-Thailand

Applications

Consumer Commercial

•Home•Lifestyle•Health •Mobility

•Retail•Health•Energy •Mobility•Cities•Manufacturing•Public Services•Others

By Enabling Technology

•RFID•M2M•SCADA•Zigbee•Cloud Management Services•Others

Geography

RoW-Latin America-MEA

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Cloud Management Services dominates the technological paradigm of IOT

Source: OBRC Analysis

Although there are numerous other technologies such as Zwave, among core enabling technologies Cloud Management services dominated the IoT market place and will continue to grow at the highest CAGR of 25.18% during 2015-2021.

RFIDM2MSCADAZigbeeCloud Management TechnologiesOthers

Adoption of IoT resulting into significant growth of big data.

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Segmentation by Applications

Consumer Commercial

IoT holds immense scope in commercial applications due to high demand from various industrial sectors such as governments, health, mobility, smart cities and so on.

Among various commercial applications mobility applications are expected to grow at the highest CAGR. However, public services holds the highest market share in 2013

Among the consumer applications Health applications which include various fitness devices such as smart watch.

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Source: OBRC Analysis 9

Consumer Applications of IoT

HomeLifesyleHealthMobility

Consumer Life Style applications contribute to the highest market share among various consumer applications. However ,increasing awareness levels for various fitness devices will drive the growth of consumer health market . Innovations such as smart pills still needs regulatory approval which is expected to get approved during the forecasted period.

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Commercial Applications of IoT

Source: OBRC Analysis

Retail

Health

Energy

Mobility

Cities

Manufacturing

Public & Services

Others

Increasing demand for energy efficiency, alternative energy sources, Government initiatives drives the highest growth rate of Energy Market. Indian government -budget of US$ 1.1 billion for renewable energy plants. Public services hold the highest market share in 2013.

2013 2021

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Ubiquitous Networks to accelerate the growth in online population

Source: OBRC Analysis

According to the International Telecommunication Union, currently around 40% of the global population is connected to the internet and it is estimated that by 2019 this percentage will increase up to 57 %.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (est.)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Number of users

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Declining sensor price and advanced sensor technologies

2004 2006 2008 2010 2012 2014 2016e 2018e 2020e$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.30

$1.11

$0.95

$0.82

$0.70

$0.60

$0.51 $0.44

$0.38

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Huge amount of money poured into IoT Markets

• In 2014, Google acquired smart thermostat maker Nest in $3.2 billion

• Intel, acquired Basis Science – the company manufacturing wearable health tracking

device. Intel intends to supply components and consumer products for sensor based

computing devices. The deal took place in 2014 for an undisclosed price though it

was rumored to be around $100 million.

• IBM has also ventured into IoT market and announced to invest $3 billion over the

next four years to establish a new unit dedicated to IoT and to build a cloud based

platforms designed for clients and ecosystem partners to build IoT solutions.

• IBM has also ventured into IoT market and announced to invest $3 billion over the

next four years to establish a new unit dedicated to IoT and to build a cloud based

platforms designed for clients and ecosystem partners to build IoT solutions.

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Increasing awareness and efforts for smart infrastructure development

Source: OBRC Analysis

North America

APAC

Europe

Other (RoW)

Total

2020

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Security Issues

Key Restraint of IoT Market – What is the Business Impact?

Number of data breaches in US in various sectors

2010 2011 2012 2013 20140

50

100

150

200

250

300

8095

110

7050

90 60

75

80

40

5098

85

80

70

OthersFinanceRetail

Demand for automation of business process pose huge opportunity before global IoT market.

Emergence of various Data handling Technologies to boost IOT adoption in business .

Growing demand from both commercial and consumer applications.

Opportunity Analysis & More….

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Market Share & Key Company Analysis

Source: OBRC Analysis

Google

Microsoft

GE

IBM

Oracle

Qualcomm

SAP

Intel

Texas Instruments

Erricson

Others

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1. Product Launches to enhance IoT Product Line 2. Mergers & Acquisitions fueling investments in the IoT market

Step by Step Strategic Analysis & Business Implications of Market Participants

2008 2009 2010 2011 2012 2013 20140

10

20

30

40

50

60

9 712

1714

19

60

Google’s acquisition of Nest Labs in 2014

2015,Intel Corporation acquired Lantiq, supplier of of broadband access and home networking tech-nologies.

2014, Oracle has recently acquired MICROS systems, a provider of integrated software and hardware solutions to the Hospital & Re-tail Industries.

2015, NXP Semiconductor announced acquisi-tion of Athena SCS Ltd, a UK based company providing security solutions for the connected world.

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Geographic Analysis……1

Global Internet of Things market by geography

Source: OBRC Analysis

2013 2021

North America

Europe

Asia Pacific

RoW

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•APAC is expected to be the most lucrative market in the next few years growing at the highest CAGR. The growing consumer income will drive adoption in consumer applications. However, growth in manufacturing sector in developing countries will boost the growth of commercial applications.

•Government regulations supporting the growth of IoT and various public and private funding driving the IoT growth in Europe. Having strong regulations in place will ensure the effective operability of the IoT concept in various application areas.

•North America is the world’s largest market for Internet of things with a great diversity of providers and higher adoption rates. However, it is a mature market in internet of things as compared to the other geographies, which will result in slow growth rate in future.

Increase in Awareness Levels Will Enable Quick Growth in Opportunity Markets

Source: OBRC Analysis

Global IoT Market by Commercial Applications

Market Estimation – Sample Tables

Global IoT Market by Consumer Applications

Source: OBRC Analysis

Consumer Apps 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR% (2015-2021)

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Lifesyle xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Health xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Mobility xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

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Commercial 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR% (2015-2021)

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Health xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Energy xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Mobility xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

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Manufacturing xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Public & Services xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

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Market Estimation – Sample Tables

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Geography 2013 2014 2015 2016 2017 2018 2019 2020 2021

CAGR%(2015-2021)

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Europe XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

Asia Pacific XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

RoW XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

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More Details Visit: Global Internet Of Things Market By Applications & Technologies (Consumer Services And Smart Homes, Automotive& Transit, Healthcare, Energy, Oil, Gas, Radio Frequency, M2M Communication, SCADA, Global Forecasts 2015- 2021

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Upcoming Reports Contact:

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Phone:  (+91) 98 505 53315

Email: sales@occamsresearch.com

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