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Definition of a Research and Innovation Policy Leveraging Cloud Computing and Iot Combination FR Definition of a Research and Innovation Policy Leveraging Cloud Computing and IoT Combination FINAL REPORT A study prepared for the European Commission DG Communications Networks, Content & Technology Digital Agenda for Europe This study was carried out for the European Commission by Authors' names: Stefania Aguzzi (IDC), David Bradshaw (IDC), Martin Canning (IDC), Mike Cansfield (IDC), Philip Carter (IDC), Gabriella Cattaneo (IDC), Sergio Gusmeroli (TXT), Giorgio Micheletti (IDC), Domenico Rotondi (TXT), Richard Stevens (IDC). Internal identification Contract number: 30-CE-0608166/00-79 SMART number 2013/0037 DISCLAIMER By the European Commission, Directorate-General of Communications Networks, Content & Technology. The information and views set out in this publication are those of the author(s) and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein. ISBN 978-92-79-47760-7 doi:10.2759/38400 Copyright © 2014 – European Union. All rights reserved. Certain parts are licensed under conditions to the EU. Reproduction is authorised provided the source is acknowledged. 2 3 TABLE OF CONTENTS ABSTRACT ................................................................................................................................... 8 EXECUTIVE SUMMARY ............................................................................................................... 9 1. INTRODUCTION .......................................................................................................... 15 1.1. ABOUT THIS REPORT ....................................................................................................... 15 2. THE IOT ECOSYSTEM ............................................................................................... 17 2.1. DEFINITION AND STRUCTURE .......................................................................................... 17 2.2. MAIN TRENDS ................................................................................................................ 18 2.2.1. The Technology Push ................................................................................................................. 18 2.2.2. The Demand Pull ....................................................................................................................... 19 2.2.3. The IoT Ecosystem: Wrapping it All Up ..................................................................................... 20 2.3. AN OVERVIEW OF IOT INITIATIVES BY MAIN WORLD COUNTRIES .......................................... 20 2.4. POTENTIAL FOR INTERNATIONAL COLLABORATIONS........................................................... 22 3. THE VISION OF IOT IN 2020 ...................................................................................... 23 3.1 IOT VISION: THE NEXT “BIG THING” IN ICT ....................................................................... 23 3.2 EUROPE’S IOT MARKET: A BURGEONING TREND .............................................................. 25 3.2.1 The Baseline scenario ................................................................................................................ 25 3.2.2 Alternative scenarios: risks and opportunities .......................................................................... 26 3.2.3 IoT forecast development by country ........................................................................................ 30 3.2.4 IoT forecast development by vertical market ........................................................................... 33 3.2.5 Horizontal platforms vs. vertical solutions ................................................................................ 35 4. EMERGING MARKETS AND BUSINESS OPPORTUNITIES .................................... 37 4.1 FROM TRADITIONAL INDUSTRY MARKETS TO “SMART ENVIRONMENTS” ............................. 37 4.1.1 Choosing the Main IoT Use Cases: Selection Criteria ................................................................ 37 4.1.2 Main IoT Use Cases’ Overview: the concept of Smart Environment .......................................... 38 4.2 FROM SMART ENVIRONMENTS TO BUSINESS OPPORTUNITIES ........................................... 38 4.2.1 Introduction and methodology .................................................................................................. 38 4.2.2 Smart Environments and Business Opportunities: a comparative Assessment ......................... 40 4.2.3 Smart Environments in detail: Main Use Cases in 2014 and 2020 ............................................ 41 6. THE STAKEHOLDERS’ OPINIONS ........................................................................... 53 5.1 ASSESSMENT OF LEAD MARKETS AND BUSINESS OPPORTUNITIES .................................... 53 5.3 OPINIONS ON DRIVERS AND BARRIERS ............................................................................ 54 5.4 WHAT TO DO TO PROMOTE IOT ........................................................................................ 55 5.5 CONCLUSIONS ................................................................................................................ 57 6. THE IOT AND CLOUD RESEARCH AND INNOVATION STRATEGY ...................... 58 6.1 CONCLUSIONS ON THE IOT MARKET ................................................................................ 58 6.2 THE R&D AND INNOVATION STRATEGY VISION ................................................................. 60 4 6.3 THE RESEARCH CHALLENGES ......................................................................................... 61 6.3.1 Research Grand Challenge #1: Open Integrated Architecture .................................................. 61 6.3.2 Research Grand Challenge #2: End-to-End Connectivity .......................................................... 62 6.3.3 Research Grand Challenge #4: Security by Design ................................................................... 62 6.3.4 Research Grand Challenge #5: Semantic-driven Analytics ....................................................... 63 6.3.5 Design Principles for next generation IoT Systems ................................................................... 64 6.4 THE INNOVATION CHALLENGES ....................................................................................... 64 6.4.1 Building the European Industrial Competitiveness ................................................................... 65 6.4.2 Ensure SMEs capability to enter the market .............................................................................. 65 6.4.3 Improve IoT readiness .............................................................................................................. 66 6.5 PROMOTE AND SUPPORT TAKE-UP ................................................................................... 66 6.5.1 Accelerate adoption through Smart Environments ................................................................... 66 6.5.2 Leverage Public sector leadership and demand ........................................................................ 67 6.5.3 Develop the IoT-based Service economy .................................................................................. 67 6.6 DEVELOPING FAVORABLE FRAMEWORK CONDITIONS ....................................................... 68 6.6.1. Develop e-leadership skills for IoT innovation .......................................................................... 68 6.6.1 Build trust and remove regulatory barriers ............................................................................... 70 6.6.2 Encourage international cooperation ........................................................................................ 70 6.7 IMPLEMENTING THE R&I STRATEGY ................................................................................. 71 6.8 MAIN INVESTMENT POLICY OPTIONS ................................................................................ 71 7. RECOMMENDATIONS ................................................................................................ 74 7.3 MEDIUM-LONG TERM RECOMMENDATIONS ....................................................................... 77 7.4 RECOMMENDATIONS ON FRAMEWORK CONDITIONS .......................................................... 78 7.5 RECOMMENDATIONS TO NATIONAL GOVERNMENTS .......................................................... 78 7.6 RECOMMENDATIONS TO LARGE ENTERPRISES .................................................................. 79 METHODOLOGY ANNEX .......................................................................................................... 80 DEVELOPING THE STRATEGY ...................................................................................................... 80 THE STARTING POINT ................................................................................................................. 81 THE STUDY WORKSHOP ............................................................................................................. 82 STAKEHOLDERS INTERVIEWS METHODOLOGY .............................................................................. 84 INTERVIEW GUIDELINES .............................................................................................................. 85 MARKET SIZE AND FORECAST METHODOLOGY ............................................................................
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