m2m predictions 2012
TRANSCRIPT
M2M Predictions for 2012M2M Predictions for 2012
Catching the Next Wave of Smart OpportunitiesCatching the Next Wave of Smart Opportunities
YiruYiru ZhongZhong, Research , Research AnalystAnalyst
Information & Communications Information & Communications Information & Communications Information & Communications TechnologyTechnology
9 9 February 2012February 2012
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
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Today’s Presenter
Yiru Zhong, Research Analyst
Frost & Sullivan
Functional Expertise
9 years of expertise in Telecommunications, particular expertise in :
- Enterprise Communications and Telecommunications Infrastructure (Mobile & Fixed)
2
- Enterprise Communications and Telecommunications Infrastructure (Mobile & Fixed)
- ICT requirements in Utilities, Transportation and Healthcare sectors
- Quantitative skills
Industry Expertise
� Fixed & Mobile Consumer Communication Services
� Enterprise Communication Services & Adjacent Industries Expansion
� Machine-to-Machine Communications & Applications
M2M Predictions for 2012
1. Smart Opportunities accelerate CAGR 2012-2015
Market Demand
2. Sectors that leverage mobility have immediate M2M needs
3. Consumer needs rise to the top
Product Portfolio
4. Intelligence drives smart opportunities
5. Non connectivity revenue to increase by 67% by 2016
3
5. Non connectivity revenue to increase by 67% by 2016
6. ICT convergence will shift revenue towards services
Competitive Dynamics
7. Aggressive telcos accelerate market development
8. End users/industries hold the main bargaining power
Extended Eco-System
9. Rethinking that connectivity is the first building block of a Smart project
10.Smart opportunities also form ICT service providers
Market Demand
1. Smart Opportunities Accelerate CAGR 2012-2015
5
Source: Frost & Sullivan
30%
27%
12%
22%
35%
7-year CAGR, %
2. Sectors that Leverage Mobility have Immediate M2M Needs
6
18%
34%
29%
30%
Source: Frost & Sullivan
M2M
Connected Consumer Devices
NFC
RFID
IP Objects
Contextualised Environments
Third Party Interactions
% o
f V
alu
e A
dd
ed
Se
rvic
es
Re
ve
nu
e
3. Consumer Needs Rise to the Top
7
in Japan
2010 2020
IP Objects
<2000
walled garden
Apps stores
% o
f V
alu
e A
dd
ed
Se
rvic
es
Re
ve
nu
e
Source: Frost & Sullivan
Portfolio Development
4. Intelligence Drives Smart Opportunities
Machine to machine technologies take part of these data and move among devices,
objects, and human beings
We live in a world pervasively sensed that produces huge amount of data
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objects, and human beings
Analysing this data and its semantics can enable powerful
decision supportSource: Image from Internet/Google
5. Non Connectivity Revenue to Almost Double by 2016
10
Source: Frost & Sullivan
6. ICT Convergence will Shift Revenue Towards Services
Industry Specific Service & Application Layers
OS
S/B
SS
& I
T
Mid
dle
ware
Standard IT Middleware
BSS
OSS
11
Access,
Tra
nsp
ort
&
Co
ntr
ol
Layers By network technology: Fixed, Wireless, Hybrid
By use of network: WAN, LAN/FAN, HAN (including sensor networks)
Devices & objects
Connected SIMs M2M ModulesCommunication enabled Objects
Source: Frost & Sullivan
Competitive Dynamics
7. Aggressive Telcos Accelerate M2M Market Development
13
Source: Frost & SullivanThe list is not an exhaustive illustration of market entrants
8. End Users/Industries Hold the Main Bargaining Power 8. End Users/Industries Hold the Main Bargaining Power
14
Source: Frost & Sullivan
Extended Eco-System
9. Rethinking that Connectivity is the First Building Block of a Smart Project
Ex
pe
cte
d M
on
eti
sa
tio
n o
f M
2M
Se
rvic
es
Hig
h
IT Integration
Managed Services -Verticals
Professional Services
IT Outsourcing
Data analyticsManaged Services -
Telecoms
M2M +
16
Ex
pe
cte
d M
on
eti
sa
tio
n o
f M
2M
Se
rvic
es
Lo
w
Connectivity
Industry Applications
Integration
Roaming
Billing
Service Fulfillment & Assurance
IT Outsourcing
Data warehousing
Telecoms
Traditional M2M Services
Singular Highly integratedBreath of Services Source: Frost & Sullivan
10. Smart Opportunities Also Form ICT service providers
“Smart” Transport (Bus Rapid Transit,
“Smart” Parking,
Mobility on Demand, Traffic
Control...)
“Smart” Technologies
(IoT, Telematics...)
“Smart” Cloud Services
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E-Healthcare
M-Payments“Smart” Homes & “Smart” Buildings
Indoor Wireless Technologies
ICT Industries
Source: Frost & Sullivan
Implications of M2M Predictions
ImplicationsImplications
1.Smart Opportunities accelerate CAGR 2012-
2015
2.Sectors that leverage mobility have
immediate M2M needs
3.Consumer needs rise to the top
4.Intelligence drives smart opportunities
5.Non connectivity revenue to increase by 67%
Urgency of tapping existing market demand and
channel partnerships
Our PredictionsOur Predictions
1
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5.Non connectivity revenue to increase by 67%
by 2016
6.ICT convergence will shift revenue towards
services
7.Aggressive telcos accelerate market
development
8.End users/industries hold the main bargaining
power
9.Rethinking that connectivity is the first
building block of a Smart project
10.Smart opportunities also form ICT service
providers
Intelligence drives VAS revenue2
Emergence of super ICT companies3
Next Steps
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For Additional InformationFor Additional Information
Yiru Zhong
Research Analyst
ICT
+48 22 390 41 28
Joanna Lewandowska
Corporate Communications
ICT
+48 22 390 41 46
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Cyril Cromier
Vice President, Sales
ICT
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Adrian Drozd
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ICT
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