MKGRA403 Iot Brochure 2017 Vol 4.Indd
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VOLUME IV opportunities for IoT telecoms operators Contents Introduction p 3 Enterprise survey 2017: A lack of awareness of IoT is holding back its adoption more than technology issues p 4 IoT platform contracts tracker: Actility is winning a high share of telco deals p 6 Operators are racing to enable IoT applications, but a winning approach is yet pto 8 LPWA: challenger operators could benefit from using a different technology to that of the market leader p10 Autonomous vehicles: entertaining passengers may be the big opportunity for telecoms operators p12 Vodafone and Orange’s moves in consumer IoT are encouraging, but cautious, p14 first steps Analysys Mason’s expertise in IoT and M2M p16 About Analysys Mason p17 Introduction Operators face a range of issues when addressing the IoT market, from building awareness to building advanced solutions. Welcome to our fourth selection of • IoT platform and technology deals. articles examining how telecoms A small number of new vendors, operators are addressing the Internet such as Actility, are winning a of Things (IoT). notable share of these deals. As this article describes, the market is As with our previous collections, this getting more difficult for vendors to edition is designed to give you a enter because most large operators flavour of our thinking on IoT. Analysys already have multiple providers. Mason helps clients in all geographies New competitors will need strong and parts of the value chain to develop differentiators. TOM REBBECK their approach to IoT. Our Research Director, Enterprise and IoT [email protected] assignments range from rapid reviews • Operator approaches to IoT security. of existing plans to full strategy Adding higher levels of security may development. not directly increase revenue, but does provide a crucial differentiator. • Orange and Vodafone launched new The articles in this collection reflect We discuss how operators will need consumer IoT products in the diversity of areas that telecoms to expand their security portfolio as November 2017. The initial launches operators are facing with IoT – from they move along the value chain. are interesting, but are only a first horizontal issues such as technology step. Success in the longer term platforms to domain-specific issues • The choice of LPWA technology for will depend on what operators can such as autonomous vehicles. challenger operators. For most learn from these early products. However, as we discuss in our first operators in the past 10 years, article, operators should take care not network upgrades have been more As ever, we welcome your feedback to ignore the basics – general a matter of when than what. With and comments. awareness of IoT and how it can be IoT, operators have the option to used remains low. This creates a take a different direction (for barrier to adoption, but one that example, investing in LTE-M when smart operators will help to competitors are opting for NB-IoT). overcome. This article explores the benefits of these different options. The following topics are covered in this edition. • The impact of autonomous vehicles on telecoms operators. Autonomous • Our survey of 1600 enterprises. vehicles will not need wide-area While IoT suppliers focus on networks for real-time connectivity, technology, most enterprises do not and their requirements for non- understand the potential benefits. real-time connectivity are unclear. This article argues that service We argue that entertaining providers that understand how to passengers may be the larger explain the benefits will be well opportunity for telecoms operators placed to succeed. 3 Enterprise survey 2017: A lack of awareness of IoT is holding back its adoption more than technology issues It may be incorrect to assume that the take-up of IoT is being held back by competing technology TOM REBBECK “standards, an uncertain business case or security Research Director, Enterprise and IoT concerns.” Despite all the attention that IoT has The number of SMEs that are unaware of In our survey of 1600 IT and telecoms received across multiple” industry IoT – or have no interest in it – is four decision makers in enterprises verticals, a significant percentage of times greater than those with worldwide, we asked whether they had enterprises have either not heard of IoT operational solutions heard of IoT and, if so, whether they had (29% of SMEs, 18% of large enterprises) any plans to deploy IoT solutions. The It may be incorrect to assume that the or have no interest in adopting it (23% of results revealed that a small percentage take-up of IoT is being held back by all enterprises).1 of firms already had an operational competing technology standards, an solution: 12% of SMEs and 18% of large More work is required by solutions uncertain business case or security enterprises (see Figure 1). More striking, providers to explain to enterprises what concerns: enterprises would need to have though, is the share of enterprises that IoT is and why it should be implemented explored IoT to understand any of these was unaware of IoT or not interested in it: This is especially important for smaller issues. Indeed, IoT may be restrained by a combined, this group of respondents was enterprises. This article discusses some more basic problem of awareness. There made up 52% of SMEs and over 40% of of our enterprise survey results in more is a positive message to take from this: large enterprises. detail to highlight the significance of the there is still a massive, untapped market market opportunity for IoT solutions for IoT solutions providers that get their One of the assumptions behind the large providers. product and messaging right. forecast numbers for IoT, including Analysys Mason’s own forecasts, is that most companies or sectors will have 100% some use for IoT solutions. However, 14% 90% 22% while this may prove to be accurate in the long term, this perception is not shared 80% by most enterprise firms today. ses 18% 70% Operational solutions terpri 29% en 60% Interested in IoT 23% of Not interested in IoT 50% ge Unaware of IoT ta 40% en 23% Unsure rc 27% Pe 30% 20% 15% 10% 18% 12% 0% SMEs Large enterprises FIGURE 1: PERCENTAGE OF ENTERPRISES AT EACH STAGE OF IOT DEVELOPMENT, 2017 2 [SOURCE: ANALYSYS MASON, 2017] 4 Also notable from these results is the China is behind in adoption today, but stark difference between large and small may catch up quickly enterprises, both in terms of the share of Our survey has revealed significant firms with operational solutions, as well regional variation in the levels of interest as those that are interested in IoT (27% of in, and adoption of, IoT solutions. large enterprises and just 15% of SMEs). Overcoming a lack of awareness in IoT is The USA has the highest levels of Much of this can be explained simply by more important than technology issues adoption of IoT solutions. It is likely to size - large enterprises have more maintain this position as a large share of projects (of all types) than SMEs and will For telecoms operators, or any other enterprises that have not yet deployed therefore be more likely to have an IoT provider trying to sell IoT solutions, these solutions are interested in doing so (20% project. Large enterprises may also have figures should act as another reminder of SMEs and 30% of large enterprises). 100more% resources to explore new areas and that IoT is still in its very early phases. Any IoT plan will need to have long time ideas such as IoT. Conversely, SMEs may14 % Western European enterprises are more 90% 22% horizons. It is also a reminder that the not be willing or able to commit likely than Chinese firms to have an technical issues facing IoT – in terms of 80%resources to IoT projects, especially if operational IoT solution in place, but ses 18% standards and security – are secondary to they are experimental and come with Chinese companies are expressing a the more-basic issue of helping 70%uncertain returns. strong interestOper inat IoTiona andl so mayluti onwells close terpri enterprises to understand the potential 29% this regional gap. In Western Europe, the en 60%For organisations that are hoping to sell Interested in IoT 23% benefits of IoT. of difference between the results for SMEs IoT solutions, these results suggest that Not interested in IoT 50% and large enterprises is also greater than The results also mean that, for a provider ge there is an untapped opportunity to Unaware of IoT ta elsewhere, possibly because IoT providers that gets its product and marketing right, 40%provide IoT solutions to the lower end of en 23% are focusingUn mostsure of their attention on there is a significant market that remains rc the market (assuming that IoT is equally 27% large enterprises. largely unaddressed. Pe 30%applicable to small, as well as large, organisations). However, few companies The interest in IoT suggests that Chinese 20% 15% have the necessary skills to sell, deploy providers, including mobile operators, are Questions? 10%and support IoT solutions for the majority18 % doing a better job of raising awareness of Please feel free to contact 12% of SMEs and there is a lack of ‘off-the- IoT than those in Europe. Tom Rebbeck, Research Director, at 0% shelf’ solutions that address the needs of [email protected] these organisations.SMEs Large enterprises s 30% rise 24% terp 20% 21% USA en of 17% Western Europe ge 10% 12% China ta 9% en 6% Perc 0% SMEs Large enterprises FIGURE 2: PERCENTAGE OF ENTERPRISES WITH OPERATIONAL IOT SOLUTIONS, BY COUNTRY/ REGION, 2017 [SOURCE: ANALYSYS MASON, 2017] 1 In February 2017, Analysys Mason interviewed 1600 enterprises across eight countries (Australia, China, France, Germany, Malaysia, UAE, UK and the USA) about their usage, providers and satisfactions levels of various telecoms and ICT products.