Matt Hatton Machina Research Seven Numbers You Need to Know about the Internet of Things A presentation at #IoT15

1. 7 numbers that you need to know
about the IoT
Machina Research
BLN IoT, March 2015

2. About Machina Research
• Machina Research is the world’s leading
provider of market intelligence and strategic
insight on the rapidly emerging Machine-to-
Machine (M2M), Internet of Things and Big
Data opportunities.
• We work in two ways:
o Our Advisory Service consists of a set of
Research Streams (see right)
o Our Custom Research and Consulting team is
available to meet your specific research
requirements.
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FOR MORE INFORMATION, VISIT MACHINARESEARCH.COM, OR EMAIL
ENQUIRIES@MACHINARESEARCH.COM

3. Some of our clients
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4. Main motivations for connecting
‘things’
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4

5. A diverse set of motivations
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Sealed Air
eCall
Big Belly Solar
CLEAN
Zipcar
Regulation Features
Efficiency gains New business models
PS Vita Connected Car
Smart Meters
SF Park

6. connected devices in 2023
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26 billion

7. Connected devices will grow from 4 billion in 2014 to 26
billion in 2023
• ‘Living & Working’ dominates
courtesy of large numbers of short-
range devices
• Short range accounts for 70%+ of all
connections
• Cellular will grow to ~2.5 billion in
2023
• 30-40% growth in cellular connections
was common in 2014
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Global machine-to-machine connections 2013-23
Source: Machina Research M2M Forecast Database, 2015
0
5
10
15
20
25
30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Car
Cities
Health
Industry
Living & Working - Building Automation
Living & Working - Building Security
Living & Working - Consumer Electronics
Living & Working - Smart Metering
Living & Working - White Goods
Living & Working - Other

8. Euros invested in Sigfox last
month
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100 million

9. New LPWA technologies are set to have major impact
0
5
10
15
20
25
30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Cellular
LPWA
MAN
Satellite
Short range
Wide area fixed
• LPWA is set to have a significant impact
o Sigfox EUR100 million funding – including Telefonica,
SK Telecom, NTT Docomo, Eutelsat, GDF Suez and Air
Liquide
o LoRa launch with key tech supporters - BM,
MicroChip, Cisco, Semtech, Bouygues Telecom,
Singtel, KPN, Swisscom, Fastnet and Belgacom
o Huawei bought Neul for USD25 million – forms basis
for Cellular IoT
• Features:
o Low chipset costs
o Out-of-the-box connectivity
o Long battery life
o High latency
o Low bandwidth
• Expected to grow to 3 billion devices in 2023
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Global machine-to-machine connections 2013-23
Source: Machina Research M2M Forecast Database, 2015

10. Internets of Things
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>1

11. Evolution from M2M to IoT
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12. Internet
of Things
Subnets of Things will be part of a continuum between
M2M and IoT
• Open
• Everything can connect to
everything
• Cross enterprise
• Cross manufacturer
• Within enterprise
• Multiple devices from a
common manufacturer
• Point solutions
• Standalone connected
devices
• Fixed parameters • Context and ontologies
• Diversity of assets
• Semantic richness
M2M
Subnets of Things
Scope
Agility
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13. Smart Cities are prime examples of data environments
(Subnets of Things)
PUBLIC TRANSPORT
Intelligent Transport Systems
(road, rail, air and sea)
ROAD TRAFFIC MANAGEMENT
Parking space management
Road tolls
Congestion
chargingTraffic volume
monitoring
Connected road
signs
Traffic lights
Enforcement
cameras
ENVIRONMENT AND PUBLIC SAFETY
CCTV
Street
lighting
Waste collection
Public
alarms and
intercoms
Tourist information
services
ENVIRONMENT MONITORING
Monitoring of the environment
including noise, rain, pollution, etc.
SMART CITIES
Subnets of Things
A data community
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14. More of a network of Subnets of Things than an Internet
of Things?
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Texture of the Internet of Things
Source: Machina Research 2014
Health SoT
Smart Cities
SoT
Construction
industry SoT
See Control
SoT
GE SoT
Intelligent
buildings SoT
Samsung
(Consumer) SoT
Samsung
(Enterprise)
SoT

15. Linear processes that used to
define data processing, but don’t
any more in the IoT
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4

16. Data
Acquisition
Data
Storage
Data
Processing
Data
Presentation
Massive Parallel Processing (MPP)
Distributed Storage
Visualisation
Distributed Analytics
Advanced Algorithms
New data management priorities are emerging in
IoT analytics
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17. US Dollar valuation of Jasper
Technologies
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1 billion

18. US Dollars spent by PTC on
ThingWorx (and another $170
million for Axeda)
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112 million

19. Predictions for IoT and M2M in
2015
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10

20. 7 numbers: a recap
• 4 motivations – evolving motivation in connecting devices and a growing
importance of IoT
• 26 billion connected devices – it’s growing
• 100 million € invested in Sigfox – LPWA networks are on the horizon
• >1 ‘Internet of Things’ – the evolution will be through subnets and most of
the value lies there
• 4 linear processes that used to define data processing – IoT changes big
data analytics
• 1 billion $ valuation of Jasper Technologies – there’s a lot of attention
being paid to the IoT ecosystem at the moment
• 112 million $ paid by PTC for ThingWorx – platforms should find a home
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21. Ten predictions for IoT & M2M in 2015
1. Enterprises will get cracking in IoT
2. More productised offerings
3. More M&A
4. Breakthroughs in smart city service deployments
5. Major OS vendors disrupt the connected car market
6. Mobile phone as the gateway for IoT
7. A year for avatars
8. A crunch on regulation
9. Segmenting for success and identifying role in IoT
10. Privacy and security reach the top of the agenda
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Discover more at our website: machinaresearch.com/news/ten-predictions-for-iot-and-m2m-in-2015/

22. Thank you
Matt Hatton
Founder & CEO, Machina Research
matt.hatton@machinaresearch.com
Mobile: +44 7787 577886
Skype: mattyhatton
Twitter: @MattyHatton
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