machine-to-machine (m2m) communications: realizing the vision of hyper-connectivity
TRANSCRIPT
Machine-to-Machine (M2M) Communications: Realizing the Vision of Hyper-connectivity
The Future of the ‘Internet of Things’: Key M2M Trends in North America & Europe
Vikrant Gandhi, Principal AnalystYiru Zhong,Senior Industry Analyst
26th June 2013
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Today’s Presenter’s
Vikrant Gandhi, Principal Analyst, Frost & Sullivan
Yiru Zhong is an analyst with Frost & Sullivan’s Information & Communications Technologies Practice where she focuses on communications infrastructure and services in the M2M and Smart Energy sectors.
Yiru Zhong, Analyst, Frost & Sullivan
Vikrant Gandhi is a principal analyst with Frost & Sullivan’s Information & Communications Technologies Practice where he focuses on M2M communications, enterprise mobility, mobile advertising, mobile financial services, and mobile data traffic trends.
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Focus Points
5 M2M Communications – Market Evolution and Roadmap
7 M2M Communications – Push to a “Social” Enterprise
2 Machine-to-Machine (M2M) Communications – A Simplified View of the Value Chain
1 Connected Devices Ecosystem – Market Segmentation
3 M2M Communications – The Collaborative Ecosystem
4 M2M Communications – Market Forecasts(U.S.)
8 M2M Communications – Market Forecasts for Europe
9 M2M Communications – Market Forecasts for Europe(continued…)
10 M2M Communications – Market Progress from Europe’s Perspectives
11 M2M Communications – Outlook from Europe’s Perspectives
6 M2M Communications – Other Key Highlights(U.S.)
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Connected Devices Ecosystem – Market Segmentation
Mobile & Wireless Connected Device Ecosystem
Feature Phones
Smartphones Mobile Computers
Tablets M2M
Notebooks Netbooks Air Cards
Consumer Electronics
Transportation & Telematics
Financial Services &
Retail
Healthcare /Wellness
Smart Grid, Utilities,
Industrial
Security & Home/Building
AutomationOthers
eReaders
Connected Display,
Navigation, Gaming
Vehicle Convenience,
Safety, & Diagnostics
GPS & Fleet Tracking
POS Terminal Solutions
Vending Machines,
ATM, Kiosks
Wireless Patient
Monitoring
Patient Care & Scheduling
Smart Metering,
Smart Grid, Utility Routers
Remote Telemetry,
SCADA
Intrusion Detection &
Safety Systems
Remote Surveillance,
Access Control, Bldg.
Automation
Business Apps
Miscellaneous Systems
MiFiUltrabooks
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Machine-to-Machine (M2M) Communications – A Simplified View of the Value Chain
Data Collection
Data Sharing
Data Interpretation
M2M Devices and Endpoints
Wireless / Wireline Networks
Enterprise Backend Systems
Key Functions
Key Enablers
Key ParticipantsDevice & Module
VendorsAccess Network
Providers Application /
Platform Providers
IIIIII
Communication Flow
In its simplest form, M2M communications refers to data sharing between endpoints (electronic devices) and an enterprise backend systems through a wireless/ wireline channel. The device may be used for monitoring, control and notification, or information sharing and presentation purposes.
Source: Frost & Sullivan analysis
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M2M Communications – The Collaborative Ecosystem
Source: Frost & Sullivan analysis
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M2M Communications – Market Forecasts (U.S.)
M2M connections on cellular networks in the United States to approach 70 million in 2018.
These figures do not include laptops, netbooks, notebooks and tablets, which would be in tens of millions as well .
Top three categories by connections will likely be Transportation and Telematics, Utilities and Industrial, and Consumer M2M.
In many cases, a single endpoint (such as a rugged router) will support a large number of other connected devices.
Source: Frost & Sullivan analysis
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M2M Communications – Market Evolution and Roadmap
Source: Frost & Sullivan analysis
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M2M Communications – Other Key Highlights
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Tiered pricing for high-bandwidth M2M applications to become prevalent
Greater focus on M2M security
Increasing importance of M2M cloud platforms
1 Faster transition of M2M to LTE – primarily due to closure of 2G networks
3 Convergence of M2M, MDM, BYOD, Mobile Computing, and Remote Access
4 Data access pricing techniques used to promote network adoption
Source: Frost & Sullivan analysis
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M2M Communications – Push to a “Social” Enterprise
• Frost & Sullivan’s research indicates that businesses prefer integrated enterprise software applications that provide a unified view of their entire connected base – including connected employees, connected customers, connected partners, and connected products.
• From a customer experience perspective, helping organizations migrate from “reactive” customer care (which is the case currently) to “proactive” and “preventative” customer care is the ultimate goal of such converged deployments.
• With so much “big data” generated by connected machines, using proper data management platforms to help with data analysis and data sharing is important.
• Real-time decision making based on machine data can help with new product innovation, and deliver better up-sell and cross-sell opportunities.
The M2M industry is poised to support innovative applications that can be plugged into various enterprise resource planning (ERP) and customer relationship management (CRM) systems.
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M2M Communications – Market Forecasts for Europe(continued…)
M2M connections on cellular networks in Europe to approach 280 million in 2018.
These figures do not include laptops, netbooks, notebooks and tablets, which would be in tens of millions as well .
Top three categories by connections will likely be Automotive & Telematics, Utilities and Industrial, and Consumer M2M.
In many cases, a single endpoint (such as a rugged router) will support a large number of other connected devices.
Source: Frost & Sullivan analysis
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M2M Communications – Market Forecasts for Europe
At the end 2012, these top three by volumes are :1. Automotive & Telematics2. Utilities3. Security/Surveillance
By 2018, these top three by volumes are :4. Automotive & Telematics5. Utilities6. Industrial Automation
Verticals targeted for the next growth phase:
7. Industrial automation8. Consumer electronics9. Healthcare
Source: Frost & Sullivan analysis
Automotive & Telematics
Utilities
Industrial Automation
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M2M Communications – Market Progress from Europe’s Perspectives
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Holistic views on M2M security across a “connected” community mindset
Applications enablement as one of several key differentiators for M2M service providers
Product horizontalization continues with a watchful eye on margins
1Strategy refinement to present a credible client facing front to capture the next level of M2M opportunities
3 Moving from proof of concepts to deployments
4 Rise of the “alliances” ala global roaming alliances
Source: Frost & Sullivan analysis
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M2M Communications – Outlook from Europe’s Perspectives
• Frost & Sullivan’s research indicates that there is currently significant interest among European M2M service providers in acquiring the capabilities around applications or service enablement. They recognize this as the important next step to widen their in-house capability to meet their enterprise customers’ requirements.
• Security around applications design, deployment and integration will also become a differentiating feature for M2M service providers.
• Extensions into “smart cities” projects will create clusters of industry knowhow and deployment best practices. These in turn will be strong accelerators for the next phase of market growth
The M2M Market in Europe is still in the growth phase on the product life cycle but some market leaders can already be identified as key enablers in the sector
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For Additional Information
Mireya EspinozaCorporate Communications Information & Communication Technologies(210) [email protected]
Vikrant GandhiPrincipal AnalystMobile and Wireless Communications(210) [email protected]
Craig HaysSales ManagerInformation & Communication Technologies(210) [email protected]
Yiru ZhongSenior Industry AnalystM2M & ICT in Smart Energy+44 207 915 [email protected]