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ABI Research 1 ABI Research About Us Developing for the IoT Exploring the infinite opportunities Overview of the IoT Malik Saadi, Managing Director Market Landscape June 2, 2017 • IoT Value Chain • Unlocking revenue potentials, • Interoperability issues • Where is the money? • Making sense of IoT standards • Innovation and IoT © 2017 ABI Research 1 ABI Research About Us Innovative business leaders trust ABI Research to help make transformative technology decisions. For more than 25 years, ABI Research has been embedded in the planning and workflows of the world’s leading technology and innovation organizations. We are their execution partner, providing business intelligence and accelerating their overall decision-making process to more quickly and confidently execute strategies. © 2017 ABI Research 2 Overview of IoT Landscape • IoT is not a single market but a collection of verticals and adjacencies • Market in early stage of development • Verticals with own requirements • Very crowded market and intense competition across the whole value chain • Technology is still largely fragmented • proprietary implementations • Deep customization • Heterogeneity of machines, sensors, and connected equipment • Heterogeneity of data • Heterogeneity of decision making • Lack of compelling ecosystems • Implementers very confused © 2017 ABI Research 3 Internet of Everything in Numbers 2016 2021 Internet of Digital . PCs and digital home . Mobile devices Internet of Things . Connected car . Smart home . Wearable computing . Smart buildings and cities . Energy and industrials . Retail, Advertising, and • 2017: there are 14 billion IoD Devices, 13 billion IoT Devices supply chain • 2018 will be the first year that IoT endpoints outnumber IoD endpoints. Others • 2021: IoT will account for nearly 65% of all active connections . 2021: the IoE is forecast to total 48.9 billion connections. © 2017 ABI Research 4 Market Overview Internet of Things Connections • Retail, advertising, and supply chain have the lion share with 30% share in 2017 • Wearable computing will remain a tiny part of the IoT market • Others include non-retail beacons, robotics, toys, application specific wearables (wearable cameras, 3D motion trackers, etc.) © 2017 ABI Research 5 Supply Chain Hugely Fragmented and Crowded IoT Value Chain Professional • System Integration • Big Data and Analytics Hundreds of Companies Services • Consulting Services Applications • Application Development Tools and Services 100+ SDKs and 200K+ IoT developers • Device Cloud 50+ Platforms Device Cloud • Device Cloud to Device Software Platform • Service and Device Management 50+ RTOS and OS Apache, Mynewst, mbed, Atomthreads, BitThunder, ChiviOS, distortos, Erika, FreeRTOS, Fusion Embedded, Integrity RTOS, LynxOS, Mark3, Device • IoT Device Software (RTOS, OS) MEOS, MQS, Nano-RK, Nucleus, Nut, Nuttx, PikeOS, QNX, RIOT, Intelligence RTEMS, RT-Thread, scmRTOS, StateOS, Stratify, TargetOS, ThreadX, TI-RTOS, Micrium, Unison, VxWorks, Zephyr, Ontiki, Brillo, Fuchsia, LiteOS, Mantis, OpenWrt, OpenWSN, Ostro, Tizen, 20+ connectivity solutions, excluding variants Connection • Communication Devices • Connectivity Management • Connectivity Management Services 1000s of boards Hardware • Device Design Services • Install/Deploy • 100s of sensor types Connection • Sensors & Related Field/ Machine Hardware • Dozens of processing architectures © 2017 ABI Research 6 Overview of the IoT Revenues 2015:US$ 100 billion 2021:US$ 300 billion • Revenues outlined here gathered from 32 IoT application segments • Revenues will remain largely low compared to the mobile market • Most of revenues are generated from the higher stacks of the value chain © 2017 ABI Research 7 Technology Capabilities Versus End-Markets Requirements Technology End-Markets • The hype of IoT is currently driven by the technology supply chain • Tech vendors: more work to educate implementers on the benefits and value of IoT • Misalignment between supply and demand planning translates into uninformed decisions • The mission of tech vendors exponentially complex as a function of number of verticals targeted © 2017 ABI Research 8 Interoperability: The Single Biggest Challenge Facing IoT • Multiple Standards Confusing the industry • Standard Rationalisation/Harmonization is eminent • Interoperability key for IoT success © 2017 ABI Research 9 Supply Chain Analysis: Thoughts For Consideration IoT Value Chain Professional Services $$$$$$ Applications Device Cloud Mmarkets - Device Value Intelligence Connection $$ Diversity Model Business Alignment w/ End w/ Alignment Management Standards Hardware Connection © 2017 ABI Research 10 Takeaways and Conclusions Both partner and compete with IoT Frameworks Partner strategy – Position yourself within the value chain but look at the bigger picture Influence roadmaps for IoT Frameworks through participation to standards and alliances Compete Strategy: Consider higher stack strategies . Always look at the bigger picture and identify how you can be different . Both technology and business model innovation . Make your products scalable . Listen to the requirements of implementers. “Build it and they will come” model may not work . Avoid proprietary frameworks Interoperability! Interoperability! Interoperability! © 2017 ABI Research 11 Thank you www.abiresearch.com © 2017 ABI Research 12 .
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