2014
2020
10.3 Billion
29.5 Billion
IoT WILL
For every person living on earth, there will be atleast 2, to as many as 6 connected “things”, by 2020.
The number of IoT endpoint devices such as cars, refrigerators and everything in
between will grow from 10.3 billion in 2014 to more than 29.5 billion in 2020.
INDIVIDUALS
A typical family home may contain more than 500
smart devices by 2022.
2022
60%40%
58%42%
33%66%
IoT WILL
60% of those enterprises with 1,000 + employees use or plan to use IoT-enabled applications
58% of organizations throughout the world understand that IoT is strategic to their business
According to IDC's 20154 IoT will disrupt up to 33% of the currently leading businesses
ENTREPRISES
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87%
Internet of Things, or the IoT, is an industry-specific buzzword: 87% of people actually have no idea of what it means or what it stands for.
$656 billion
$1.7 trillion
$10 trillion
to $ 15 trillion
Global spending on IoT devices and services will rise from $ 656 billion in 2014 to $ 1.7 trillion in 2020.
2040
2020
2014
In 2025 38% of the annual potential economic impact of IoT applications will be in developing economies.
and 62% will be in advanced
economies
General Electric believes that the “industrial Internet” (their term for IoT) will add $10 to $15 trillion market opportunities in the 20 years.
IoT IS A
IN 2025
AREA
DIGITALTRANSFORMATION
BENEFITS TO COMPANIES INVESTING IN BOTH IN TECHNOLOGY-ENABLEDINITIATIVES AND LEADERSHIP CAPABILITIES
BIGGEST DIGITAL THREATS: INTERNAL OR EXTERNAL
24% of organizations throughout the world recognize that IoT will transform their business
25% of companies surveyed are willing to disrupt themselves
in order to compete
Internal Issues : Lack of agility, complacency, inflexible culture 19% Market Disruptions : Product obsolescence, lower barriers to entry 17%Competitive Pressure : More intense competition, faster or new competitors 16%Security issues : 14%
24% 25%
12
3
Generate more revenue
+9%
Are more profitable
+26%
Have an overall higher market value
+12%
ESTIMATES OF CONNECTED DEVICES IN 2020 (in billions)
IOT MARKET DRIVERS AND BARRIERS
DRIVERS
EXPANDED INTERNET CONNECTIVITY
HIGH MOBILE ADOPTION
LOW-COST SENSORS
LARGE IOT INVESTMENTS
Connected
Devices
50
Connected
Autonomous
Things
30,1
Wirelessly
Connected
Devices
30
Allconnected
Devices
24
Mobile
Connected
Devices
12
CHANGING?
TECHNOLOGICAL FRAGMENTATION
IMPLEMENTATION PROBLEMS
PRIVACY CONCERNSSECURITY CONCERNS
BARRIER
S
According to our estimation of IoTs maximum potential, we have included the benefits of interoperability. Without these benefits, we estimate the maximum value of the applications would be only about $7 trillion per year in 2025, rather than $11.1 trillion.
INTEROPERABILITY IS A CRITICAL SOURCE OF VALUE IN IOT SYSTEMS
STAND ALONE INTEROPERABLE DEVICES
Interoperable devices
with interoperability
without interoperability
40%
We estimate that situations in which two or more IoT systems must work together accounts for approximately 40% of the total value which can be unlocked by the Internet of Things.
Stand alone device
1980
2016
2013
1GB OF HARD DISKMEMORY COSTPrice drop of over 99.999995 %
0.05 $ 0.019 $
437 500 $
1 GB OF RAMAVERAGE COST1 GB OF RAMAVERAGE COST
6 328 125 $
1980
2016
2013
5.5 $4.7 $
Price drop of over 99,999925 %
SENSORS SENSORS
Average sensor costis set to fall by 25% between 2016 and 2020.
Average sensor selling prices have fallen by 93% in 25 years.
25 years
20162020
DRONES COST PER UNITDRONES COST PER UNIT
2013
2007
100 000 $
700 $
300 $
2016
COST OF TECHNOLOGY IS
The cost of bandwidth is 40 times lower than it was 10 years ago.
Cost of processing hasdeclined 60 times comparedto 10 years ago.
SMARTPHONE COST PER UNITwith similar specifications
BANDWIDTH AND PROCESSING COST
2015
10 $
499 $
2007
10 years10 years
COST OFCONNECTIVITY & BANDWIDTH
Certified LoRaWAN modules are in the cost range of $ 7-10 and are expected to fall to the $ 4-5 cost range.
Low cost pico cell gateways are in the range of +/- $ 100.
Industrial gateways are less than $ 500.
Tower top gateways are
in the range of +/- $ 1000.
4 < 5 $
100 $
< 500 $
1000 $
Certified LoRaWAN modules
Cell gateways
Industrial gateways
Tower top gateways
ARE
The cost of bandwidth is 40 times lower than it was 10 years ago.
Cost of processing hasdeclined 60 times comparedto 10 years ago.
SMARTPHONE COST PER UNITwith similar specifications
BANDWIDTH AND PROCESSING COST
2015
10 $
499 $
2007
10 years10 years
COST OFCONNECTIVITY & BANDWIDTH
Certified LoRaWAN modules are in the cost range of $ 7-10 and are expected to fall to the $ 4-5 cost range.
Low cost pico cell gateways are in the range of +/- $ 100.
Industrial gateways are less than $ 500.
Tower top gateways are
in the range of +/- $ 1000.
4 < 5 $
100 $
< 500 $
1000 $
Certified LoRaWAN modules
Cell gateways
Industrial gateways
Tower top gateways
ARE
Proximity 0 to 10 cm
WP
AN
10 to
100
m
PO
TEN
TIAL M
AR
KE
T
WLA
N10
0 m
to 1
Km
WN
AN
1Km
to 1
0Km
WW
AN
up to
100
Km
Near Field Communication (NFC) ; Radio Frequency Identification(RFID).
Wireless Personal Area NetworkBluetooth Low Energy (BLE) ; Thread ; ZigBee ; EnOcean ; Z-Wave ; WirelessHART ;MiWi ; ISA100.11a.
Wireless Local Area NetworkWi-Fi 2.4 Ghz & 5 Ghz (802.11a/b/g/n/ac) ; White-Fi (802.11af) ; Wi-Fi Sub-1 Ghz (802.11ah) ; RFID (Dash7).
Wireless Neighborhood Area NetworkWi-SUN ; JupiterMesh.
Wireless Wide Area NetworkCellular (2G,3G, 4G; LTE-Cat M, LTE Nb-IoT) ; Low Power Wide Area (SigFox, LoRa, DASH7).
The “last 100 meters” (0->100 meters) presents > 90% of the potential market.
90%
10%
WIRELESS TECHNOLOGIES
WHERE THE WIRELESSTHINGS ARE AND WHY
7.7
8.3
30.3
%
40.2%100 %
40.2 % Business and Manufacturing Real-time analytics of supply chains and equipment, robotic machinery.
30.3 % Healthcare Portablehealth monitoring, electronic recordkeeping, pharmaceutical safeguards.
8.3 % Retail Inventory trackingsmartphone purchasing, anonymous analytics of consumer choices.
7.7 % Security Biometrics and facial recognition locks, remote sensors.
The overall wireless chipsets market revenue in consumer electronics & automation applications is expected to reach $20.4 billion in 2017.
Wireless chipsets market shipments are expected to reach 4.86 billion units in 2017.
MARKETWIRELESS
By 2018,
six billion things
will have the ability to request support.
The IoT will support total services spending of $ 235 billion in 2016 according to Gartner estimate.
$ 235 billion 10% of respondents said IoT accounts for more than of their annual revenue.
23% said IoT accounts for between11% & 30% of their revenue.
240 solution providers surveyed by CRN Intelligence
83%
83% of solution providers generate some revenue from IoT related products and services.
10%
23%
11%
30%
30%
Currenlty only 8% of businesses use more than 25 % of their IoT data.
In the next 2-3 years, 50% of businesses are expected to leverage their IoT use of data to more than 25%.
BUSINESS MODELS
2 - 3 years
THE IMPORTANCE
OF LEADERSHIP
& PEOPLE
KEY ATTRIBUTES OF DIGITAL LEADERS
22% TRANSFORMATIVE VISION
22% COLLABORATIVE SKILLS
20% FORWARD THINKING
18% CHANGE-ORIENTED MINDSET
THE IMPORTANCE OF DIGITAL SAVVY
ORGANIZATIONSDigitalization increases employee retention
Digitalization strategies should be embedded into the overall company strategy to leverage its benefits
Digitalization attracts New Talents
NON DIGITAL SAVY
EARLY STAGE
DIGITAL ORGANIZATION
DIGITAL SAVY
DIGITALLY MATURE
ORGANIZATION
4% of employees of digital savy organizations
Planning to leave within one year:
within 1 year
20%of employees of
non digital savy organizationsvs.
90% of digitally mature organizationstie both Digital strategy and
overall company strategyvs. 35% of early stage digital organization
71% of digitally mature organizationsvs. 10% of early stage digital organization
are able to attract new talents
IoT
Workplace Expectationsof Millennials
2015
2016
2017
2018
2019
2020
THE IMPORTANCE OF IoT DIGITAL SAVVY
ORGANIZATIONSMore Data requires More Developers
Career
advancement
Training/development
opportunities
Company Culture
48%
32%
38%
813 k
1,5 M
2.2 M
2.8 M
3.5 M
4.5 M¨