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Internet of Things Market Overview

– Prepared for Intesa Sanpaolo Innovation Centre –

February 2017

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Context and headlines (1/4)

• Whilst they share a common core, Frost & Sullivan draws a clear distinction between the terms Machine

to Machine (M2M) and Internet of Things (IoT)

• The IoT is a nexus of sensor, analytics and connectivity solutions that enables devices to communicate

and exchange data over the Internet or private networks

• Market participants across the IoT value chain are currently investing, partnering and fundraising with a

view to taking leading, first mover positions

• Nonetheless, uptake remains a ‘wait and see’ game for many

• Frost & Sullivan believes that the IoT will grow rapidly over the next 10 years, reaching 50 billion

connected devices globally by 2025, supported by technology advances on the supply side and greater

adoption on the demand side

• On the supply side, standardised, secure and robust networks are required to support the IoT but all

of the current connectivity solutions have limitations

• Low power wide area networks (LPWAN) are designed to support applications that generate low data

rates and require extended range, and will account for a significant share of IoT connections by 2020

• From a competitive point of view, Sigfox, LoRa, Weightless and Ingenu are all leaders pushing subtly

differentiated products to market

• The mobile industry is responding to the threat of cellular alternatives with Long Term Evolution (LTE)

as well as “clean slate” solutions

• On the demand side, the IoT has rapidly found its place across core applications in Transportation,

Healthcare, Energy, Aerospace & Defence and Manufacturing

Frost & Sullivan

3


• Emerging applications in the IoT in Education, Agriculture and Law Enforcement

o In the education ecosystem, the IoT aims to provide students and staff access to educational tools

and content anytime, anywhere and across any device, notably via the use of learning management

and lecture capture systems

o Uptake is driven by the expectations of an increasingly tech-savvy student population and the

need for providers to differentiate themselves; nonetheless, early adopters opted for experimental

and/or proprietary solutions which is restricting the budget available for third-party solutions

o Frost & Sullivan expects the overall market for IoT in education to be valued at more $40 billion in

2022, a CAGR of 19.4% (2015-22)

o After academic devices, LMS is the largest segment and is being shaped by a strong shift to

cloud-based deployments and increased interaction with mobiles

o In an extremely competitive market, vendors are struggling to find a balance between feature

heaviness, ease of use, and speed of deployment; Blackboard, with its deeply integrated

solution and more than 15 million end-users, holds almost two thirds of the overall market in

revenue terms

o With a CAGR of 20.6% (2015-2022), the LCS segment is the fastest growing segment and is

charaterised by greater customisation to meet institutions’ needs

o Price, ease of use, quality of video, a seamless experience across devices and attentive

customer support are key competitive success factors; Echo360, Panopto, and Sonic Foundry

hold more than a 40% share in revenue terms and have a first-mover advantage in international

markets

Frost & Sullivan

4


o The IoT is one of several interrelated enabling technologies which is digitally transforming

agriculture and facilitating data-intensive precision farming

o It has the potential to relieve some pressures on farmers and growers by, for example, plugging

productivity gaps or ensuring regulatory compliance

o New business models are emerging with generalists such as Schneider Electric and specialists like

Farmers Edge competing to interpret weather data

o LPWAN is ideal for the high-volume of long-range, low-cost, and low-power devices needed in

agriculture with use cases generating very small data streams from remote locations that are poorly

served by mobile cellular networks

o The emergence of the IoT has created two distinct market opportunities for suppliers of law

enforcement cameras and devices for vehicles or personnel

o Improved situational awareness, through the use of historical and real-time data and the provision

of decision support tools, is underpinning up-take

o Nonetheless, concerns around network resilience and security persist and are restraining the more

widespread adoption of some solutions

o The number of connected devices used by law enforcers globally will grow from just over 5.06

million in 2014 to 16.18 million by 2024, a CAGR of 12.3%

o In the LEV segment, law enforcement agencies in OECD countries are expected to connect

100% of their fleets with as many as 8 devices per car by 2020 including radios, trackers and

identification solutions

Frost & Sullivan

5


o In the LEP segment, it will become the norm for officers to wear video recorders and carry IP

communication devices by 2030, whereas tablets will disappear due to device convergence and

new technology

o In the LEC segment, the balance is shifting rapidly from analogue to IP cameras with the latter

expected to constitute more than 50% of the installed base due to new projects and

replacement cycles by 2020

• As the IoT market moves towards semi-autonomous operational networks and fully-autonomous control

networks, end users across verticals will have limited awareness of and control in theevent of cyber

attacks

• Advanced threats in the IoT ecosystem resulting from the influx of connected devices have prompted

enterprises to opt for the best-in-class, “defense-in-depth” approach to mitigate the risk across the

businesses

• In addition vendors are developing and providing innovative security solutions which are either applicable

across the IoT ecosystem or specific to certain applications such as Smart Buildings, Connected Vehicles or

Home Health

Frost & Sullivan

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Introduction

7

Whilst they share a common core, Frost & Sullivan draws a clear distinction between the

terms Machine to Machine (M2M) and Internet of Things (IoT)

• Devices connected via cellular or

other networks

• Generally ‘point solutions’

• Rarely is the data integrated with

enterprise or consumer

applications.

• Focus on the “plumbing” aspects of

embedded hardware and cellular

networks.

• Cloud Computing

• ‘Platform approach’

• Support new business models

such as ‘product as a service”.

• Security

• Big Data & Analytics

• Integrated with Enterprise

Management

• Cloud delivery makes IoT

inherently more scalable and

enables access by any

sanctioned application.

• Focus on software capabilities

and application integration.

Machine to Machine (M2M) Internet of Things (IoT)

M2M vs IoTCommon core

Remote Access

to Devices,

Machine, &

Assets

Devices &

Connections

An ecosystem to capture data and

perform analytics

Frost & Sullivan

8

The IoT is a nexus of sensor, analytics and connectivity solutions that enables devices to

communicate and exchange data over the Internet or private networks

Connecting, monitoring, and controlling devices, people, and the environment

Hardware

Data

Va

lue

extra

ctio

n

Predictive

analytics &

decision support

Applications,

solutions, &

services

Enablement platforms &

support systems

Connectivity management &

networks

Data acquisition & management

Devices & hardware components

IoT; the digitisation of objects,

people and places into

interoperable data flows

Typically open-ended, mediated,

and transient services; contracts

embedded in APIs and platforms

e.g. Insurance as a Service

M2M (a subset of IoT); solutions

for connecting, monitoring, and

control

Typically linear B2B or B2B2C,

fixed-term contractual relationships

and managed services

e.g. Smart Metering

Frost & Sullivan

API = application programming interface

9

Market participants across the IoT value chain are currently investing, partnering and

fundraising with a view to taking leading, first mover positions

$3bninvestment in IoT

announced by

$23bnfunding in machine

intelligence

companies in 2015

Announced new

cloud

platforms

IoT OS & platforms

by major

entrants

took steps to build

partnerships

Frost & Sullivan

10

Nonetheless, uptake remains a ‘wait and see’ game for many

Watching & learning43%

Prototyping29%

Small trials and proof of concept – 34%

Mid- or large-scale trials (>500 device) – 27%27%+

IoT is embedded into our core service/products23%

Internal deployments – 40%

Deploying next-generation solutions – 34%34%+

Frost & Sullivan

11

Frost & Sullivan believes that the IoT will grow rapidly over the next 10 years, reaching

50 billion connected devices globally by 2025, supported by technology advances on the

supply side and greater adoption on the demand side

The average selling price for sensors,

currently near 60 cents, is projected to

decline by a CAGR of -5%, 2015–2020,

with decreases accelerating

0,0

0,2

0,4

0,6

Average Sensor Prices, Global, USD, 2015–2020

Sensors

Companies Interested in Deploying IoT,

Global, 2012 and 2014

2012

15%

2014

65%

Consumer Adoption of In-home IoT

Devices, US, 2014

30%

Own or plan to

buy within 2

years

67%

Plan to buy within

5 years

Consumer Interest

Industry Interest

Anticipating an initial rollout by 2022, 5G

will increase network capacity nearly

tenfold, with data speeds greater than 1

Gbps and near-zero latency.

LPWAN technology will overtake traditional

cellular mobile, especially GPRS, to

account for a significant share of IoT

connections globally

10× faster than 4G

Connectivity

LPWAN

Supply side Demand side

Frost & Sullivan

5G

LPWAN = low-power wide area network

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Supply side

Connectivity

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Standardised, secure and robust networks are required to support the IoT but all of the

current connectivity solutions have limitations

Mobile Cellular; 3G, 4G, and emerging 5G

• Advances in cellular technology over the past

decade has been focused on increasing data

rates and spectrum efficiency for consumer-

centric applications

• However, many IoT applications will generate

data streams of very low rate and low value that

are inefficient to carry over mobile cellular

networks

• 3GPP is standardising LTE–M/Cat 1 and Cat 0 to

strengthen the ability of cellular networks to meet

IoT demands cost effectively

Wi-Fi, Bluetooth, and ZigBee

• These provide wireless local area network with

short range coverage, often in-buildings

• Wi-Fi provides data rates of up to 7Gbps using

802.11ad standard. Wi-Fi 802.11ah is designed

for low-power long-range requirement

• Typically, devices would have to be configured

into the network manually from each use case,

for Wi-Fi mesh operation for example

Hig

h

Low HighRange

Lo

wT

hro

ug

hp

ut

Wi-FiMobile

cellular

LPWAN

Bluetooth

ZigBee

IoT Market: Connectivity Alternatives, Global, 2015

Frost & Sullivan

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Low power wide area networks (LPWAN) are designed to support applications that

generate low data rates and require extended range, and will account for a very significant

share of IoT connections globally by 2020

Scalability: The number of

devices an access point

can support becomes

critical considering the

growth of IoT and increase

in the number of devices

expected to be connected

over the years.

Wider coverage: Wider coverage is

required not only to connect to

remotely located end-nodes but also

to reduce the number of access

points required thereby reducing

infrastructure costs.

Low-energy consumption:

Battery operated devices form the

majority of “Things” in IoT and

replacing batteries often will be

costly. Hence, networks supporting

longer battery life is required.

Low cost: A majority of IoT

applications require

installations of hundreds or

even Millions of end node

devices. Price is a major

concern in such high-volume

implementations.

Frost & Sullivan

LPWAN-Low Power Wide Area Network

• Various network technologies designed to meet

low power, low data rate IoT requirements in the

order of bytes or just a few KBs per second;

transmission may be uni- or bi-directional

• Networks designed for devices which have long

sleep cycles and run on batteries for many years

• Designed for latency-tolerant applications and

deployment in licence-free/light ISM bands.

• Proprietary LPWANs typically operate in the

licence-free Industrial, Scientific, and Medical

(ISM) bands and are hence less expensive on a

per-connection basis than current mobile cellular

and other licensed radio options.

• Latency is not the primary concern; hence long-

range operation is feasible.

LPWAN requirements

15

From a competitive point of view, Sigfox, LoRa, Weightless and Ingenu are all leaders

pushing subtly differentiated products to market

Company

LPWAN

Technology Coverage Range Frequency Band Data Throughput Module Cost

SigfoxUltra narrow Band

(UNB)

30-50km (rural), 3-

10km (urban),

1000km LoS

868/920 MHz ISM 100 bps – 1kbps $1 in large volumes

LoRa AllianceLoRAWAN 1.0,

CDMA-based

2-5km (urban),

15km (rural)

433/868/780/915

MHz ISM

300 bps -11 kbps;

additional 50Kbps

rate in Europe

~ $10 for 1,000+

units

Weightless SIG Weightless-P 2km (urban)

Sub-1GHz ISM

169/433/470/780/8

68/915/923MHz

200bps -100 kbps N/A

Ingenu

Random Phase

Multiple Access

(RPMA)

> 500 km (line of

sight)2.4GHz 624 kpbs per sector ~ $4

Although many connectivity options and protocols are included in the industry definition of LPWAN, each is implemented in a

different way which has important implications for suitable use cases. For example, LoRa is a spread spectrum technology

and hence requires more bandwidth than the Sigfox UNB approach. Lower frequency options are more suitable for

penetrating buildings; a mono-directional (upload) option will have extremely low power consumption, but will lack the ability

for remote management of the end device.

Source: Sigfox, LoRa Alliance, Weightless, Ingenu

IoT Market: Comparison of Emerging LPWAN Technologies, 2015

Frost & Sullivan

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The mobile industry is responding to the threat of cellular alternatives with Long Term

Evolution (LTE) as well as “clean slate” solutions

Clean slate

However, the mobile industry is

concerned that the 3GPP

standardisation of LTE-M will take too

long to deliver commercial products,

creating opportunity for proprietary

LPWAN to capture market share. In

response, support is building for ‘clean

slate’ LPWAN techniques in licensed

bands—so-called Cellular IoT—at data

rates of 150 kbps or less. Proponents

claim that the approach boosts the link

budget by 20db over traditional

LTE/GSM. Mobile operators’ trade

group, the GSMA, is backing clean

slate approaches under its Mobile IoT

initiative

Clean slate (continued)

Huawei and Vodafone have lobbied for

the standardisation of Narrowband-IoT,

which offers a choice between in-band,

refarmed licensed GSM bands, or

guard-bands between LTE channels.

Crucially, Ericsson and Nokia Networks

have given their support for

accelerating the ratification of NB-IoT in

time for Release 13. Ericsson, Nokia,

and Intel have also pitched their own

approach, NB-LTE, which uses in-band

LTE spectrum. NB-IoT features 180 kHz

bandwidth for uplink and downlink

LTE evolution

LTE-M (Machine Type

Communications) is an evolution of LTE

and is closely tied to the roadmap for

LTE-Advanced. Receiver bandwidth is

limited to 1.4MHz (from the full LTE

bandwidth of 20MHz), thereby reducing

complexity and module cost. Cat-0 is

the LTE-M variant within the Release 13

3GPP specification, due for ratification

in March 2016. It is designed for peak

upload and download of 1Mbps. Cat-1

is already specified as a RAN software

upgrade designed for peaks of 10 Mbps

Frost & Sullivan

Source: 3GPP, GSMA

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Demand side

Core applications

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Transportation

Selected IoT applications

Big Data analytics solution to analyze datacollected from various in-car sensors andprovide real-time solution for engineers toimprove safety and performance.

Integrated Software

ArchitectureSingle bus system with opensoftware architecture platformcould enable easy integration ofadvanced features throughsoftware installation process. Itwill minimize deployment time fornew feature sets in cars. Softwaredefined vehicle will also enableeasy detection of faults andeffective troubleshooting.

Adaptive

Lighting Systems

Based on theweather condition,road condition andtime of day, lightsensorsautomaticallyregulate lightintensity and adjusthigh and low beamof vehicle.

Remote Data Analytics In-Vehicle Behavioural AnalyticsAlong with Interactive platform for in-carentertainment applications such as voicecontrol and gesture control media player,future In-vehicle Infotainment systemcould also implement behavioral analyticsto provide advanced in-dashboard featuresets such as driver heath monitoring forenhancing safety measures.

Smart Phone

IntegrationSmartphone integration

with in-car system enables

easy access to the car data

for the users and it alsofacilitates vehicle to vehicleconnectivity throughinformation sharing. Fewinnovative applications gaininginterest are driver healthmonitoring, traffic monitoring,navigation, weather forecast,smart parking, emergencycalling application, drivingoptimization and enginetrouble shooting applications.

Energy Harvested

Electric CarCar vibration and movement could be harvested to generateenergy from the system to run electric cars and reduce energyconsumption cost. This will require collaboration betweenautomotive technology hardware developers and energytechnology developers for effective integration of the solution.

Frost & Sullivan

19

Transportation

Selected Movers & Shakers

Open Automotive Alliance–is a global alliance of

several automobile companies and technology

partners to bring in a standard Android platform for

seamless communication between mobile and the

vehicles. The common platform initiative from most

of the automakers will facilitate connected car

innovation and bring in advanced transportation

applications for all.

Standardization

Activities

• Google is one of the key contributors in the space with several initiatives towards bringing the next generation

automotive. The on-going Self-Driving Car project of Google leverages a proprietary software platform along

with supporting third party technologies like Velodyne– Lidar for remote sensing. For intelligent GPS navigation

system with social interaction, Google has also acquired Israel start-up Waze Mobile recently.

• Siemens is working on a software based electric vehicle project called RACE (Robust and Reliant

Automotive Computing Environment for Future eCars). This initiative from the company incorporates

innovative electronics and software to enable development of a computer architecture to handle all

operation of the car and will allow easy upgradation of features through software installation process.

• Faster data transaction being the key enabler for IoT, telecom giant AT&T has initiated several projects to

bring in advanced communication system for the next generation cars. AT&T Drive Studio and Drive

initiative primarily focus on building a end-to-end solution from technology hardware, communication to

top application layer, thus enabling easy integration of connected car system for car manufacturers.

• Machine to machine (M2M) technology developer, Gemalto is constantly innovating in the field of new

applications, hardware and platform development to provide better connectivity for future cars. Gemalto

Cinterion LTE solution is among the first in the industry to introduce 4G features for telematics. Gemalto cloud-

based SensorLogic application platform enables seamless integration with sensors and M2M modules.

Low High

Low High

Low High

Low High

US Department of Transportation's (USDOT)–

Joint Program Office (JPO) is planning to

implement set of rules through its CVRIA

Standards Plan to control Intelligent Transportation

Systems technology implementation and policy

development for enhanced safety. Institute of

Electrical and Electronics Engineers (IEEE)

Wireless Access in Vehicular Environments

(WAVE) standards are also in place to regulate

wireless communication in V2V environment.

Frost & Sullivan

20

Healthcare


Convergence of RFID chips with bio-parametersensors could facilitate continuous monitoring ofpatients’ condition within the hospital premise.This is one of the most emerging applicationareas in healthcare sector providing immenseopportunity for wearable device manufacturers

Open Intelligent Health

Monitoring PlatformDeveloping an open intelligentplatform for seamless integrationof data from various data sourcescould be of considerable interestamong healthcare organizationsto centralize data access andenable interoperability of devicesat reduced cost.

Fridge Controller

Organic elements andvaccines demand accuratetemperature control withinthe fridge. Analytics solutionproviders could convergewith sensor manufacturersto deliver efficienttemperature control forfridge, automatically.

Patient SurveillanceCamera PillsMicro Machined Sensors (MMS) reedsensors encapsulated within an ingestiblecapsule along with mini video camera,image sensor and controlled throughexternal magnets could be the next bigthing for healthcare technology hardwaredevelopers to enable effective andaccurate diagnosis of internal body parts.

Predictive

AssistanceAnalytics application forpredictive insights onpatient data could alsohave great potential in thefuture. Facilitated byenormous amount of datacollected from varioussensor nodes helps inproviding enhancedaccuracy and real-timeinformation at criticalstages.

3D Printed Organs3D printing equipment manufacturers could leverage the benefits ofbig data analytics to improve accuracy by controlling the variouscritical parameters in the printing process of body organs and help inorgan replacement process for health organizations.

Frost & Sullivan

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Healthcare


• Real-time Innovations (RTIs)’s IoT platform called Connext™ facilitates connectivity between smart medical

devices within a health organization. Integrated with advanced connectivity feature sets and in compliance with

standardization rules, the platform could effectively and quickly enable development of a connected patient care

ecosystem. GE Healthcare has recently planned for integration of Connext™ into their health information system.

• Freescale Semiconductor has developed a comprehensive solution called Home Health Hub Reference

Platform for remote patient monitoring which provides a wide range of functionalities such as connectivity of

wired and wireless devices, health parameter monitoring and secured data management. The platform

enables easy development of tele-health applications and improves flexibility for remote monitoring systems.

• Masimo has developed a health monitoring device called Radical 7 which can transmit patient data

wirelessly for continuous monitoring. The company leverages the application processor from Freescale to

deliver high resolution touch base interface for clinicians. The enhanced graphical information display

provided with detailed information of the patient facilitates real-time analysis of patient’s condition.

• Proteus Digital Health, Inc. has developed an ingestible sensor which has the capability to track patients’

medication habits when they swallow the pills every day. Integrated with an electronic patch on the skin of

patients' body, the sensors send signals wirelessly which are then forwarded to smartphone applications of

doctors and physicians. This enables easy tracking of medication for the patients from remote location.

Low High

Low High

Low High

Low High

Frost & Sullivan

HITSP–Health Information Technology Standard

Panel is a collaborative approach of public and

private sectors who take care of the

standardization of information exchange in a

clinical system. The key focus of the alliance is to

facilitate seamless information sharing between

devices in an electronic medical record systems. In

partnership with US Department of Heath and

Human Services, the panel is working on several

standardization initiatives on connected health

Standardization

Activities

Continua–is a non-profit health alliance promoting

tele-health and technology development for

interoperability between sensors and health

information systems. The consortium comprises of

organizations from healthcare technology domain

with above 200 members across the globe. This

alliance could help to address the specific

challenges with integration and interoperability of

devices effectively.

22

Energy


Advanced network controllers integrated withcyber communication network securitytechnologies for protection against energyhacking could avoid power loss and outages.Device security being a major concern for IoT,this technology area could earn huge return fordevelopers.

Predictive Analytics for

Optimized Power GenerationPredictive analytics software solution frombig data participants could enable effectivemonitoring of power usage and would alsobe an important tool at smart grid networkcontrol system to predict future powerrequirement and optimize powergeneration sources accordingly.

Grid– Vehicle

Communication NetworkGrid to Vehicle (G2V) forelectric car energy andVehicle to Grid (V2G) forsmart meter data analysiswill need a convergencebetween automobilemanufacturers and energytechnology developers.

Secured Smart Grid

Network Controller

Smart Home Solution

Fusion of temperature, smoke, gassensors along with monitoring andanalytics solutions are driving this space.

Dynamic Energy

Pricing Solution

Software service solutionthrough cloud connectivitycould enable developmentof advanced dynamicpricing solution which willintegrate suppliers priceoffering and analyze themto help users identify thebest power sourcesavailable, based on theirusage patterns.

Energy Sharing

InfrastructureIndividual rechargeable battery deployment at homenetwork will enable users to save power for future usageand will also facilitate power balancing by sharingenergy to nearby building, offices, hospitals etc. instantlythrough real-time update.

Frost & Sullivan

23

Energy


• Cisco Networks is one of the major participants in the space with a wide portfolio of solutions for Smart Grid

technology. Leveraging its secure, standards-based IP-infrastructure, the company has developed its Smart Grid

solution architecture which promises to reduce energy network outages, lower cost of energy transmission,

distribution and storage and an improved operational efficiency.

• Texas Instruments offers an extensive set of microcontroller unit (MCU) product portfolio which enables

development of smart metering solutions by leveraging its smart metering kit. With wide opportunity for

connectivity for the users using the comprehensive communication technology integration, the advanced

metering kit has the potential to provide the best-in-class solution to enable smart energy ecosystem.

• The communication software company is focused towards developing solution for seamless connectivity in

home network between Smart Grids, Vehicles and home appliances. The comprehensive Smart Energy

solution from the company uses wide range of technologies from IP layer to security and provides support

for managing smart meters, billing, demand control, pricing and many more from a single platform.

• Nest offers solutions for automated thermostat and smoke monitoring. The intelligent thermostat monitoring

technology, automatically regulates the thermostat for heating and cooling purposes based on the needs.

Optimized thermostat operation helps users in reducing electricity cost significantly. Recently acquired by Google

(expected to enhance the capability of Google Now, the personal assistance solution based on Google Search).

Low High

Low High

Low High

Low High

Frost & Sullivan

European Telecommunications Standards

Institute– ETSI recognized by European Union as

European Standardization Organization, produces

standards for Information and Communications

Technologies. Integrating a variety of

communication and digital computing technologies

along with electrical architecture, ETSI has

enforces several standards (through its M490

Smart Grid Standardization) to promote reduction

of carbon emission and to secure energy supply.

Standardization

Activities

IEEE Standards Association- the professional

association for advancement of technologies has

developed several standards for Smart Grid

implementation. Unlike other standardization

bodies that only focus on modernizing system in

specific countries, IEEE movement is towards

revolutionizing the electrical delivery system

worldwide with support from its 395000 members

from variety of positions covering every aspect of

smart grids.

24

Aerospace & Defence


An open architecture platform for variousdevice integration and sensor data fusioncould be of considerable interest amongdefense clients to deploy advancedcollaborative solution. This would requiresensor and defense technology developers toconverge with communication and softwaresolution providers to bring the best practicestogether under a single platform.

Voice Activated Cockpit

solutionVoice commands are rapidly emerging in mobile deviceapplications due to the flexibility. Voice recognition softwaresolution developers could have great potential to tap theopportunity in next-generation cockpit system to enhanceinteractivity and improve user-friendliness for the pilots.

Adaptive AutomationPhysiological sensors andbrain monitoring toolscould be used to monitor apilot's cognitive state orstress levels, and tailor thetype and amount of cockpitautomation and displaycontent accordingly.

Platform for Device IntegrationSecured Data Center SolutionWith petabytes of sensitive informationgenerated from the battlefield assets andfrom the wide supply chain network ofaerospace and defense, a reliable andsecured data center solution could be ofstrong interest among technology solutionproviders to integrate with their softwaresolution.

Predictive Analytics for

Aerospace Supply

ChainCollaborative Supply chainsolution could implementpredictive analytics toforecast demands in themarket and enable easyoptimization of processes toaddress the market needs.There is significant potentialfor Big Data Analyticssolution providers in thisspace.

Neuromorphic Chip for

CockpitsNext-generation robots could implement neuromorphicchips along with advanced analytics that will operateand think like human brain in an energy efficient way toreduce workloads for pilots.

Frost & Sullivan

25

Aerospace & Defence


• GE Aviation, the aeronautical technology giant has developed an Intelligent Platform for Military which provides a

wide range of Commercial Off-the-Shelf (COTS) solution for developing mission critical applications for manned

aircrafts, unmanned aerial vehicles and ground vehicles. Integrating secured network communication and high

performance military communication, the product offering could have strong impact in IoT space.

• Wind River provides a comprehensive solution for effortless IoT implementation in aerospace and defense

industry. Incorporated with advanced technologies for secured data center storage, reliable network

communication, intelligent platform for device integration and advanced sensor management platform for

data aggregation, Wind River solution could be the one-stop solution for customers in this space.

• Advanced Cockpit for Reduction of Stress and Workload (ACROSS), Canadian Networking Aeronautics

Project for Europe (supported by European Commission) is aimed at developing a platform for cockpit

system for enhancing three main aspects of the present system--reducing crew operations, improving safety

through management of peak workload situations, and implementation of single pilot operations.

• Telezygology Inc. has introduced SMArt Device platform for aerospace asset management solution. The

company has several patents for its distributed intelligence SMArt Device system comprising of hardware,

communication solution and software for effective remote monitoring, manageability and analysis of critical

aerospace and defense assets.

Low High

Low High

Low High

Low High

Frost & Sullivan

Seamless Aeronautical Networking through

integration of Data links Radios and Antennas

(SANDRA) project– Made up of 30 partners from

Europe's leading aviation technology industry and

research organizations and coordinated by Selex

ES, the consortium has been working on

developing a digital architecture which will connect

all aircraft applications and services to a single

integrated aeronautical communication system

based on radio transmission and satellite links.

Standardization

Activities

NextGen– NextGen is a series of project initiative

from Federal Aviation Administration. The project

focus includes ADS-B (Automatic Dependent

Surveillance-Broadcast systems), System Wide

Information Management (SWIM), Collaborative Air

Traffic Management Technologies (CATMT),

Performance-Based Navigation and Data

Communication. All these projects are expected to

decrease emissions, save time and fuel, and

improve safety statistics.

26

Manufacturing


Gas and temperature of the plant environmentcould be hazardous in some situation if notmonitored correctly by using sensors. Mobilemonitoring solution for this purpose is anotherarea of interest among manufacturingorganizations to remotely monitor plantoperations and avoid any accident in plant floor.

Predictive Maintenance

SolutionPredictive maintenance using big dataanalytics is one of the key areas offocus among analytics solutiondevelopers. This could facilitateproductivity in manufacturing processthrough proactive steps.

Unified Collaborative

Platform

Supply Chain Collaborationsolution through cloudinfrastructure leverages datafrom various sensors and appliesanalytics capabilities toeffectively connect withstakeholders and analyzebusiness processes moreefficiently. This helps to reducecost of management significantly.

Gas and Temperature

Monitoring SolutionIndoor Tracking Solution

Using Global Positioning System anddata feed from sensors, indoor trackingsolutions are getting huge attention inrecent days for tracking people, devicesand equipment quickly in a complexmanufacturing environment.

Augmented Reality

based Plant MonitoringAugmented realityenhances plant floor viewwith interactive contentaccessible from anylocation. It also enhancesproduct developmentprocess by providinginformation about devicesor processes instantly.

Advanced 3D printing Advanced 3D printing process for the printing of manufacturingdevice, product or any equipment could leverage Big DataAnalytics to improve accuracy in the design process and monitoroperations.

Frost & Sullivan

27

Manufacturing


• Cisco is focused towards providing a comprehensive solution for smart manufacturing through its connected

manufacturing solution which integrates an intelligent platform to deliver real-time communication across the

value chain, thereby providing an improved production efficiency and flexibility to connect more transparently with

the supply chain entities.

• Siemens is working actively towards developing an effective smart manufacturing solution by leveraging its

huge experience in network connectivity and device communication technologies. The company is

constantly expanding the capabilities of its plant monitoring solution with new feature sets and advanced

capabilities to move towards actual development of a solution for the envisioned factory of the future.

• Printed writable memory includes memory, display, sensors and wireless communication technology, all

included within a thin film to provide the intelligence to products and applications in a more cost effective

and flexible manner than ever before. This thin film property enables integration with any object like stickers

and facilitates easy connection.

• Quintiq’s unique focus is to deliver all the components that are required for effective planning, scheduling and

optimizing processes in the supply chain network. The connected software platform provided by the company

helps manufacturing organizations to quickly identify the issues with the planning processes and optimize the

operations for better productivity.

Low High

Low High

Low High

Low High

Frost & Sullivan

SMLC–Smart Manufacturing Leadership Coalition

is a non-profit organization dedicated towards

developing collaborative projects among

stakeholders in the smart manufacturing space

with support for R&D, standard regulation,

infrastructure and implementation process. SMLC

also raised several rounds of funds from U.S

Department of Energy (DOE) for developing an

open platform for smart manufacturing process.

Standardization

Activities

Energy Star –U.S Environmental Protection

Agency (EPA), is focused towards developing new

systems for industrial energy efficient process

measurement for manufacturing plants. The

standardization body works in collaboration with

National Institute of Standards and Technology

(NIST) and DOE for the collaborative approach.

28

Demand side

Emerging applications

Education

29

In the education ecosystem, the IoT aims to provide students and staff access to

educational tools and content anytime, anywhere and across any device, notably via the

use of learning management and lecture capture systems

Frost & Sullivan

• An academic Learning Management System (LMS) is

deployed in an educational setting such as a school,

university, or continued learning institution. It is

essentially a course management system that allows

the instructor to build course content and to monitor

student achievement. Academic LMS systems are also

designed to facilitate instructor-student, student-student

and instructor-parent communication.

• A Lecture Capture System (LCS) is a platform

(software, hardware, or hybrid) that records an

educational meeting, lesson, or presentation in digital

format for concurrent or later viewing. These solutions

enable content to be captured, stored, accessed, and

annotated online for streaming or for ad-hoc, on-

demand consumption on diverse end-user connected

devices, including PCs, tablets, and phones.

• Big Data and Analytics in education is extremely large data sets of student learning data and interactions with content

and stakeholders; this data is analyzed to study learning patterns, identify the moment of confusion, identify at risk

students to take remedial action.

• Academic Devices include smartphones, tablets and personal computers.

IoT in Education: Key Segments, Global, 2016–2022

30

Drivers 1–2 Years 3–4 Years 5–7 Years

Increase in non-traditional students, with the requirement of anytime,

anywhere learning is increasing adoption of IoT in education to meet these

changing needs.

H H H

Highly tech-savvy student population accelerates a pull effect for

educational institutions to adopt IoT in education. H H H

Students are demanding a seamless user experience across digital

learning solutions, driving IoT in Education, making the learning experience

intuitive, easy to use, accessible, and efficient.

H H M

Ease of use and continued professional development, gradually reduces

barriers for engagement and increases adoption among instructor

community.

H H M

In an effort to increase national and international enrollment through

online programs, Institutions are in the process of deploying IoT in education

to stay competitive.

H H H

The need to disseminate information and the social awareness of the

need for education is driving innovation in educational technology and

adoption of IoT in education.

H H H

Impact ratings: H = High, M = Medium, L = Low

IoT in Education: Key Market Drivers, Global, 2016–2022

Uptake is driven by the expectations of an increasingly tech-savvy student population and

the need for schools and universities to differentiate themselves

Frost & Sullivan

31

Nonetheless, early adopters typically opted for experimental and/or proprietary solutions

which is restricting the budget available for third-party solutions

Frost & Sullivan

IoT in Education: Key Market Restraints, Global, 2016–2022

Restraints 1–2 Years 3–4 Years 5–7 Years

Budget restrictions and slow economic growth has restricted spending

on educational technology, thus restricting growth of IoT in education.H H H

Sunken investments in point solutions and homegrown systems delay

investment in purpose-built third-party integrateable educational technology.H H M

Experimental deployments and deployment of point solutions make

ROI justification difficult, further delaying widespread rollouts of IoT in

education.

H H M

Lack of integration between digital learning services makes it difficult to

garner student data, marring the benefit of free flow of information in IoT in

education.

H H M

Majority of schools do not have data warehouses to collect and store data

for analysisH M M

Many institutions do not have a dedicated information technology (IT)

team to resolve technical issues, causing frustration and a drop in usage

among students and faculty.

H H H

Impact ratings: H = High, M = Medium, L = Low

32

0,0

5,0

10,0

15,0

20,0

25,0

30,0

0,0

5.000,0

10.000,0

15.000,0

20.000,0

25.000,0

30.000,0

35.000,0

40.000,0

45.000,0

2015 2016 2017 2018 2019 2020 2021 2022

Revenue ($ M) 11.806,2 14.063,1 17.709,5 21.947,7 26.205,8 30.232,4 34.647,3 40.939,3

Growth rate (%) 14,00 19,00 26,00 24,00 19,00 15,00 15,00 18,00

Year

Frost & Sullivan expects the overall market for IoT in education to be valued at more $40

billion in 2022, a CAGR of 19.4% (2015-22)

CAGR, 2015–2022 = 19.4%

Reve

nu

e (

$ M

illi

on

)

Gro

wth

Ra

te (

%)

Frost & Sullivan

IoT in Education: Revenue Forecast, Global, 2015–2022

All figures are rounded. The base year is 2015

33

After academic devices, LMS is the largest segment and is being shaped by a strong shift

to cloud-based deployments and increased interaction with mobiles

• Academic learning management systems (LMS) crossed $800 million in revenue in 2015. The academic LMS market

is characterized by seismic shifts in technological demands and innovation, a solid movement to the cloud, rapid

adoption of new learning pedagogies, and a user-centric product development strategy.

• Academic LMS serves as an excellent means to deliver multimedia and interactive course content to today’s

generation of digitally connected students. The need for this shift in learning/teaching methodologies is the result of

change in expectations of today’s students and their parents, regarding educational institutions.

• LMS analytics are helping institutions become more accountable by providing tools to measure learning and

institutional outcomes. This allows institutions to take more informed decisions and improve outcomes for all parties

involved including students, instructors, parents, and institutions.

• Overall, the market is expected to experience a CAGR of 7.4% (2015–2022). Most of this growth will come from

increased investment in higher education in the Middle East and from emerging economies in Asia. While there are

small pockets of excellence in Latin America, overall revenue contribution from Latin America has slowed down due to

currency fluctuations, particularly in Brazil.

• Major trends in the academic LMS market include a strong shift towards cloud-based deployments, growing mobile

interactions with LMS, exploration of new learning pedagogies such as competency based education and predictive

learning, growth of regional content in LMS, and integrating data across educational technology solutions to measure

and improve learning outcomes.

Frost & Sullivan

34

In an extremely competitive market, vendors are struggling to find a balance between

feature heaviness, ease of use, and speed of deployment

Frost & Sullivan

Academic LMS Market: Competitive Structure, Global, 2015

Number of Companies in the Market 289

Competitive Factors

Ease of use, functionality, scalability, responsiveness across devices,

accessibility to students with disabilities, compliant to standards,

interoperability, flexibility in deployment, price, quality, maintenance,

customization to regional pedagogies, and customer support

Key End-user GroupsStudents including continued learning students, faculty, administration,

and parents

Major Market Participants Blackboard, D2L

Market Share of Top 3 Competitors 79.8%

Other Notable Market Participants Canvas, Edmodo, Moodle, Schoology, Pearson

Distribution Structure Direct Sales (93%), VARs (7%)

Notable Acquisitions and Mergers Ellucian acquired Helix Education’s LMS.

35

Blackboard, with its deeply integrated solution and more than 15 million end-users, holds

almost two thirds of the overall market in revenue terms

Frost & Sullivan

Blackboard has a deeply integrated LMS, extending beyond core course

delivery functionality and including content management, community

engagement, learning outcomes assessment, enterprise survey,

synchronous learning, mobile learning and institutional presence, and

analytical capabilities. The ‘New Blackboard’ claims to solve educational

challenges through design thinking, an ethnographic approach to solving

complex problems by placing oneself in the shoes of the end user.

Blackboard is now focused on creating seamless workflows for the entire

student lifecycle. The products are extremely configurable and support a

variety of implementation methodologies. Blackboard is experiencing triple

digit growths internationally as it customizes its solutions to regional learning

pedagogies. Blackboard has over 15 million end users

Brightspace by D2L states fast deployment, mobile learning and

accessibility to everyone as its top product development priorities. The

vendor seeks to achieve these through its LMS, which offers multiple

delivery options (blended and mobile), predictive and adaptive learning

through analytics, a learning repository, lecture capture solution, and a

highly personalized learning experience. It has over 13 million end users.


Academic LMS Market: Percent

Revenue Breakdown, Global, 2015

63%10%

6%

6%

4% 4%6%

Blackboard D2L

Pearson Canvas

Skyward Moodle

Others

36

With a CAGR of 20.6% (2015-2022), the LCS segment is the fastest growing segment and

is charaterised by greater customisation to meet institutions’ needs

• Academic lecture capture solutions (LCS) crossed $200 million in revenue in 2015. The academic LCS market is

characterized by seismic shifts in the technological demands of students, growing institutional adoption of online

programs to increase student enrollment, the increasing use of multi-source video capture to enrich user experience,

and deeper in-video metadata schema to improve searchability.

• Academic LCS serves as an excellent means to deliver multimedia and interactive course content to today’s

generation of digitally-connected students. The need for this shift in learning/teaching methodologies is the result of

changing expectations from students and their parents, regarding educational institutions.

• Higher education continues to be the major contributor of academic LCS revenue with slower but growing penetration

in K-12 and lifelong learning. In terms of lifelong learning, an explosion of massive open online classrooms (MOOCs) is

a key driving factor for LCS adoption.

• Overall, the market is expected to grow at a compound annual growth rate (CAGR) of 20.6% from 2015 to 2022. Most

of this growth will come from increased penetration in K-12 and rapidly growing investment into higher education in the

Middle East and from emerging economies in Asia-Pacific.

• Major trends in the academic LCS market include integration with other educational technology vendors, including

competitors and complementary; growing mobile interactions with LCS; integrating data across educational technology

solutions to measure and improve learning outcomes; the customization of LCS solutions to meet institution-specific

needs; and the emergence of new use cases such as alumni engagement.

Frost & Sullivan

37

Price, ease of use, quality of video, a seamless experience across devices and attentive

customer support are key competitive success factors

Number of Companies in the Market 16

Competitive Factors

Price, partnerships, ease of use, functionality, scalability, security,

responsiveness across devices, accessibility to students with disabilities,

compliant to standards, interoperability, flexibility in deployment, quality,

maintenance, customization to regional pedagogies, and customer

support

Key End-user GroupsFaculty, students including lifelong learning students, IT teams for setup

and support

Major Market Participants Echo360, Panopto, Sonic Foundry,

Market Share of Top 3 Competitors 42.8%

Other Notable Market ParticipantsMcGraw-Hill Education, Tech Smith, Epiphan, Kaltura, Polycom, Cisco,

Crestron

Distribution Structure Direct Sales (53%), VARs (47%)

Notable Partnership VBrick Systems, Inc. joined the Cisco partners program.

Frost & Sullivan

Academic LCS Market: Competitive Structure, Global, 2015

38

Echo360, Panopto, and Sonic Foundry hold more than a 40% share in revenue terms and

have a first-mover advantage in international markets

Frost & Sullivan

Echo360 is purely focused on the education market, specifically higher

education. Echo360 caters to 3 million users globally, including 600

institutions across 30 countries. As part of Echo360’s expanded partnership

with Dell, Dell can now directly sell Echo360 technology in Europe, the

Middle East, and Asia-Pacific including Australia and New Zealand. This

joint partnership has allowed Dell and Echo360 to connect over 400

classrooms with Echo360 technology in leading institutions such as Yale

and City University of London. To help teachers and institutions measure

student outcomes, Echo360 provides a data visualization dashboard,

customizable return on investment (ROI) and engagement metrics, and heat

mapping tools. In terms of untapped opportunity, Echo360 can use its

current market influence to penetrate the K-12 market.

Sonic Foundry MediaSite has over 3,000 customers in 65 countries and is

used by half of the top-ranked business schools globally. Sonic Foundry, like

its fellow market leaders, provides multi-source capture solutions and

provides analytics tools with MediaSite analytics. MediaSite search allows

end users to search content and audio. The optical character recognition

extends text searchability beyond slides to screencasts, handwriting, and/or

annotations.


Academic LCS Market: Percent

Revenue Breakdown, Global, 2015

17%

14%

12%

11%

11%

10%

26%

Echo 360 Sonic Foundry

Panopto McGraw Hill

TechSmith Epiphan

Others

39

Demand side


Agriculture

40

The IoT is one of several interrelated enabling technologies which is digitally transforming

agriculture and facilitating data-intensive precision farming

1

Centralised processing

and pooled IT resources

for data-intensive farming

and food distribution

logistics; SaaS utility

pricing, tailored for SMEs

Cloud and Software

Defined Paradigm

4

Access to vast archives of

performance and yield

data; real-time pricing;

weather analytics; disease

propagation

Big Data Analytics & Machine Learning

2

Internet of Things

Monitoring and control of

vehicles, equipment,

crops, and livestock

Analytics and control at

the edge for remote

locations beyond cellular

coverage

3

Convenient and affordable

network access

Mobile apps for small

farmers and low-cost

devices in lesser

developed countries

Mobility and Mobile

Applications

Frost & Sullivan

41

It has the potential to relieve some pressures on farmers and growers by, for example,

plugging productivity gaps or ensuring regulatory compliance

Agricultural Sectors

• Crops and plant propagation

• Animal production

• Farming equipment and systems

• Services and infrastructure

• Logistics and storage

• Food security and compliance

‘Horizontal’ IoT Applications

• Asset tracking and geo-fencing

• Asset monitoring and control

• Fleet management

• Environmental monitoring

• Autonomous vehicles/robotics

Targets for Efficiency Gains

• Land yield

• Productivity per employee

• Productivity of machinery and vehicles

• Logistics efficiency

• Regulatory compliance

• Water and resource conservation

Domain-specific Data Analytics

• Livestock health metrics

• Weather and water systems

• Soil types

• Livestock activity patterns

• Equipment tracking for shared usage

Frost & Sullivan

42

Schneider Electric bids to be weather analysis provider for agriculture

across the United States (Dec 2015).

• Schneider, a provider of energy management and automation solutions,

announced its intention to connect 4,000 weather stations in rural areas. The

company will combine Big Data analytics with its IoT-enabled WeatherSentry

platform to provide more localised weather information for farmers, ranchers,

and landowners.

IBM Research leverages The Weather Company’s atmospheric map to

co-develop hyper-local forecasts (Jun 2016).

• IBM’s research arm and its 2015 acquisition The Weather Company

co-developed Deep Thunder, a customisable forecasting service. With the

Weather Company’s historical data and 195,000 weather stations, IBM claims

forecasts can be localised down to 0.2–1.2 miles. Target customers include not

only farmers but also city planners, insurance companies, and retailers wanting

to manage their inventories in response to anticipated weather conditions.

• Separately, Farmers Edge is integrating the Weather Company’s data into its

predictive modelling solution for farmers (Mar 2016).

New business models are emerging with generalists such as Schneider Electric and

specialists like Farmers Edge competing to interpret weather data

Frost & Sullivan

43

French company Weenat is using Sigfox ultra-narrowband technology to

help farmers conserve water.

• Agriculture consumes 70% of the world’s water.

• Growth of meat consumption increases amount of water needed to grow food

crops for cattle.

• Sigfox is integrated into Samsung’s Artik platform.

Telefonica is exclusive provider of Cattle-Watch’s monitoring service in

Latin America and North America.

• Service includes herd location, nutritional status, reproductive events, disease,

pasture quality, and drone operations.

• Yet despite being a Sigfox investor, Telefonica deploys the managed service

over GSM and satellite.

Deutsche Telekom offers several agricultural solutions.

• Real-time control of machinery and premises surveillance.

• High-accuracy GPS derived from satellite and the cellular network for real-time

positioning control of agricultural machinery such as tractors

LPWAN is ideal for the high-volume of long-range, low-cost, and low-power devices

needed in agriculture with use cases generating very small data streams from remote

locations that are poorly served by mobile cellular networks

Frost & Sullivan

44

Demand side


Law enforcement

45

• Investment in law enforcement cameras (LEC) has grown significantly over the last 10 years due to upgrades and

expansion in North America, Europe, and the Middle East, but primarily through large deployments in China and more

recently in India. The LEC market will continue to grow due to the replacement of analogue cameras.

• The number of law enforcement vehicles (LEV) devices will grow through the forecast period due to an increase in

the average number of devices per vehicle.

• The number of law enforcement personnel (LEP) devices will grow mainly due to more officers globally being

equipped with digital devices rather than each officer carrying more devices (e.g., a smartphone, a digital radio, and a

tablet). In the long term, a single device that provides voice, video, and data capability is likely.

The emergence of the IoT has created two distinct market opportunities for suppliers of

law enforcement cameras and devices for vehicles or personnel

Improving operations, decision making, and situational

awareness for security-centric organisations

1Improving Security Operations

2Improving Business Operations

Industries where improving business operations is

paramount and security, although important, is secondary

• Law Enforcement and Public Safety

• Criminal Justice and Prisons

• Borders and Maritime

• Border Control

• Airports

• Mass Transportation

• Ports

• Oil and Gas, Utilities

Frost & Sullivan

46

Improved situational awareness, through the use of historical and real-time data and the

provision of decision support tools, is underpinning up-take

Frost & Sullivan

IoT in Law Enforcement: Key Market Drivers, Global, 2015–2024

Drivers Description

Situational

Awareness

Improving situational awareness underpins other drivers, such as officer safety. Through accumulating

historical data, using real-time data, and equipping officers with decision support tools, both tactical and

strategic decision making can be improved.

Officer SafetyEquipping officers with the right tools to ensure their safety is a priority. Safety can be improved by

providing officers with real-time data to make quick decisions, connect with peers, and monitor health.

Interoperability

Increasing interoperability allows both multiagency collaboration and data sharing whilst providing officers

with the ability to share voice, video, and text with colleagues in the local area. Benefits include officer

safety, speed of response, and increased productivity.

Productivity

Eliminating paperwork and travel to and from the police station is key to ensuring that officers are more

public facing. Providing devices and applications that allow officers to complete tasks in the field rather

than behind a desk increases productivity and is a force multiplier.

Reduced

Operating Cost

Reducing public expenditure remains a focus in many countries, particularly Organisation for Economic

Co-operation and Development (OECD) member nations. Whilst it may seem counterintuitive, significant

capital investment in new IT and communication systems will help improve operational efficiency. This

enables police forces to deliver similar service with fewer officers.

Top 5 drivers in order of criticality from highest (top) to lowest (bottom)

47

Nonetheless, concerns around network resilience and security persist and, given the

sensitivity of data such as officers’ personal details and offenders’ criminal records, are

restraining the more widespread adoption of some solutions

Frost & Sullivan

IoT in Law Enforcement: Key Market Restraints, Global, 2015–2024

Restraints Description

Network

Resilience and

Security

Ensuring that the network is resilient is critical. The IoT network will be exposed to an increasing number

of threats and requires a new approach to cybersecurity. This includes ensuring that hardware (devices)

are safe and data privacy is maintained (e.g., officers’ personal details, criminal records). Law

enforcement is wary of changing too quickly without adequate and proven security measures.

Bandwidth

IoT for law enforcement relies on mission-critical voice and data. The pace of LTE first responder

network development has been sluggish, which will delay the development of law enforcement IoT and all

of the benefits it offers.

Data Storage

The data storage strategy needs to be reconsidered as the volume of data becomes increasingly

challenging. Migration to the cloud, shared data centres, data policy, and fully managed services are all

options that need to be explored prior to issuing new devices.

Interagency

Collaboration

A key benefit of law enforcement IoT is the ability to collaborate across agencies. However, although the

technology promotes sharing of data and cooperation, departmental attitudes and legal barriers can limit

the potential. Whilst interagency collaboration is important, a lack of it will not significantly slow the pace

of IoT development.

Budgets

As with all new technology solutions, market demand can be tempered if there are no early success

stories, which leads to a “watch and learn” approach to new technology adoption. Developing a business

case and justifying expenditure is challenging given the low number of successful use cases. This will

become less of a market restraint when the front runners start to demonstrate return on investment.

Top 5 restraints in order of criticality from highest (top) to lowest (bottom)

48

The number of connected devices used by law enforcers globally will grow from just over

5.06 million in 2014 to 16.18 million by 2024, a CAGR of 12.3%

North America

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>250K

>1M

>500K

>500K

>1M

Africa

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>250K

>1M

>500K

>500K

>1M

Latin America

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>250K

>1M

>500K

>500K

>1M

Middle East

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>250K

>1M

>500K

>500K

>1M

>50K

Europe

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>250K

>1M

>500K

>500K>1M

>500K>50K>500K

Central Asia

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>250K

>1M

>500K

>500K

>1M

>1M

<10K

<10K

<10K

>100K

>10K

>500K>10K

Asia-Pacific

2014 2024

<10K

>10K

>50K

<10K

>10K

>50K

LEC

LEP

LEV

>50K

>1M

>500K>500K

>250K

>250K

>5M

>500K

>500K>1M

>500K

<10K

>10K

>50K

>100K

>50K

>100K

>250K>100K

>250K

>100K

>10K

>250K

>100K

>50K

IoT in Law Enforcement Device Market: Installed Base by Segment and Region, 2014 and 2024

Frost & Sullivan


49

In the LEV segment, law enforcement agencies in OECD countries are expected to

connect 100% of their fleets with as many as 8 devices per car by 2020 including radios,

trackers and identification solutions

Frost & Sullivan


LEV Connected Devices: Installed Base Forecast by Region, Global, 2014–2024

50

High Low

In the LEP segment, it will become the norm for officers to wear video recorders and

carry IP communication devices by 2030, whereas tablets will disappear due to device

convergence and new technology

DeviceShort Term

(2015–2017)

Medium Term

(2018–2020)

Long Term

(2021–2024)

Future

(2025–2030)Market Impact

Body-Worn

Video

IP

Communication

Devices

Tablet

Wearables

(Watch/

Glasses)

Biosensors

Holster and Gun

Sensors

Low High

Low High

Low High

Low High

Low High

Low High

Frost & Sullivan

LEP Devices: Installed Base Penetration, Global, 2015–2030

51

In the LEC segment, the balance is shifting rapidly from analogue to IP cameras with

the latter expected to constitute more than 50% of the installed base due to new projects

and replacement cycles by 2020

Frost & Sullivan

The growth of surveillance cameras in cities has been strong over the last

decade and is now a globally recognised trend.

The large majority of the networks are analogue and therefore do not have

an IP address. However, sales of IP cameras are very strong and now

exceed analogue cameras though, according to Frost & Sullivan’s latest

research, the installed camera base will not become mainly IP cameras until

2020 and it will be 5 years after that before IP reaches 80% of the installed

base. Even now, some cities have selected analogue cameras due to the

ease of installation, compatibility with existing networks, and cybersecurity.

Analytics on cameras are also improving, which means that processing will

be completed on the edge. Video can be filtered, ensuring that only certain

data is retained and reducing the impact on data storage. However, more

analytics today remain centralised.

Facial recognition is also increasing, though challenges still exist with false

alarms. By the end of the forecast period, Frost & Sullivan expects analytics

and facial recognition to be more widespread and a strong feature of the IoT

network.


LEC Devices: Installed Base Forecast,

Global, 2014–2024

52

Addressing the security challenge

53

As the IoT market moves towards semi-autonomous operational networks and fully-

autonomous control networks, end users across verticals will have limited awareness of

and control in the event of cyber attacks

Frost & Sullivan

Stage 2

Semi-

autonomous

Operational

Networks

Risk

Valu

e

Stage 1

Sensor

Networks and

Embedded

Devices

Stage 3

Totally

Autonomous

Control

Networks

Low

High

Low High

Instrumentation across the enterprise

fitted with intelligent field devices

Adjusting critical parameters and

managing assets from a distance

Autonomous interaction of ‘things’ based

on context and surrounding conditions

At stage 3,

catastrophic failure

possible if sudden

disruption of

communication/

interaction within

networks occurs

IoT Market: Progression in Stages, Global

54

Advanced threats in the IoT ecosystem resulting from the influx of connected devices

have prompted enterprises to opt for the best-in-class, “defense-in-depth” approach to

mitigate the risk across the businesses

Frost & Sullivan

IoT Market: “Defense-in-depth” Case Example, Global

Polices, Procedures, andAwareness

Physical

Network

Computer

Application

Device

A defense-in-depth approach allows

end users to have multiple layers of

defense (e.g., a device, application.

Computer, network and physical

layer) so that in case of a security

attack to one layer, the entire system

is not compromised

Attributes include firewalls, intrusion

detection and prevention systems,

managed switches and routers,

application whitelisting, anti-virus

software, software patching, device

hardening, source protection, and

structured policies

55

Key

Technology

Capabilities

In addition vendors are developing and providing innovative security solutions which are

either applicable across the IoT ecosystem (1/3)

Identity and Authentication Security SolutionEnterprise security breaches oftenoccur because of many unidentifieddevices connected to a firm’s serverdue to the implementation of thebring your own device (BYOD) trend.

Login credentials that are providedby the enterprise to employees oftenhave weak security passwords thatare easily accessible by networksniffers.

Conventional security solutionsused by enterprises often focus onprotecting endpoint devices andapplications used by the companyinstead of focusing on securing thenetwork.

Which solution can help?

DigiCert PKI (Public Key Infrastructure)The DigiCert PKI is an innovative and strong identityauthentication solution that leverages on the system,

connected devices, network, and users to have safe

interactions in order to exchange sensitive data.

Advanced

Data

Encryption

Highly Secure

and Flexible

Scalable and

Custom

Solutions

Key Benefits from Implementation

Short Term (1–2years)

Medium Term (3–4years)

Long Term (>5years)

Market Opportunity

High High

Analyst InsightsEnterprises are always in danger of losing valuableinformation to various types of cyber attacks due toweak security infrastructure. With a strong backgroundin Code Signing Certificate implementation, DigiCerthas been able to manage many IoT platforms forvarious industries to implement a scalable and flexibleIoT security platform, thus showing great potential tobecome a key IoT security provider by2018.

Medium

PKI ensures a strong identity assurance and authentication service in

order for anyone to access sensitive data assets. The infrastructure for

identity management, leverages on publicly trusted and audited

Certificate Authorities.

DigiCert Inc.

US

PKI offers flexible deployment options that are able to manage critical

authentication and encryption capabilities of unique devices. Numerous

certificate management protocols are embedded into the system such as

Simple Certificate Enrolment Protocol (SCEP), Certificate Management

of CMS (CMC), Enrolment over Secure Transport (EST), and Enterprise

API, for enrollment and device deployment proceses.

PKI provides the highest level of authentication and encryption that

ensures IoT devices’ data integrity by meeting data security

requirements such as HIPAA, PIC, FERPA, CALEA, andothers.

DigiCert, Frost & Sullivan

56



Communications Security for IoT DevicesIn an IoT environment, it is vital forthe complete range of connecteddevices with embedded intelligence(down to the smallest sensor) tohave effective communicationssecurity embedded in it.

Devices processors

with smaller may have

micro-limited

memory and processing capability,yet demand vigorous security toprevent snooping and tampering onnetwork traffic.

This requires communicationssecurity solutions that can performreal-time operations and empty thememory when finished in these tinymicroprocessors.


MatrixSSL TinyInside Secure MatrixSSL Tiny is the smallest transportlayer security (TLS) software available in this space,

which allows companies to secure IoT devices with

stringent memory requirements at an affordable cost.

security with restricted memory requirements.MatrixSSL Tiny is expected to solve this challenge andopen up the growth potential further in the IoT securityspace.

Simple

Integration

Robust

Security

Tiny

Memory

Footprint


Analyst InsightsGiven that the scope of use cases for IoT is vastlydiverse ranging from consumer devices such aswearables to mission-critical uses such as smartenergy grid, embedded devices in IoT demand robust

Unlike the conventional approach, certificates cannot be used to fit a

TLS stack in IoT enabled devices, with limited memory. Hence, the

MatrixSSL Tiny solution relies on a pre-shared key (PSK). This key

has to be configured into the device inadvance.

Inside Secure

France

This key is subsequently used for mutual authentication, and further, it

acts as a root key to develop the symmetric key protecting the network

traffic. The solution generates random numbers using a modified version

of the Yarrow PRNG algorithm and taking entropy from multiple sources

to compensate the use of a random number generator (RNG).

Device manufacturers can add a secure connection to their existing

design as long as they have 600 bytes of RAM and 10k bytes of Flash

available. For new designs, MatrixSSL Tiny provides secure connection

with cheaper microprocessors, thus significantly reducing the total bill of

materials (BOM).



Long Term (>5years)

Market Opportunity

High HighMedium

Inside Secure, Frost & Sullivan

Key

Technology

Capabilities

57



The traditional cyber securityapproach faces many difficulties forintegration into new smart systemsand is not effective in keepingoperational devices secure.

Many security methodologies forembedded devices are configuredby isolating systems into batchesthat leads to just partial protectionagainst only known attackvectors.

Threat intelligence security isnecessary for enterprises due totheir distributed networks of remotedevices with many differentprotocols, vendors, and interfacesthat require intelligent threatprevention.


BrightCloud® Threat IntelligenceWebroot BrightCloud® Threat Intelligence effectivelysecures critical infrastructure and connected devices

against network and Internet-based threats for IoT

implementations.

security asset by 2018.

Flexible

Integration

Options

Highly Secured

IoT Gateways

Low Risk and

Impact on

Devices




Long Term (>5years)

Market Opportunity

High High

Analyst Insights

With Web sites being the portal of communicationamong firms, it is important to make sure Web portalsare threat free and safe for enterprises to communicatewith. Webroot’s development brings an enormousimpact in providing intelligent security for Web sitethreats and is expected to become a crucial

Medium

Webroot's BrightCloud® constantly monitors the entire IPv4 and active

IPv6 space while also conducting continuous analysis for various server

attacks. Ranging from remote triggered threats such as Windows

exploits, botnet, Web attacks, and command/control servers to passive

attacks such as spam sources and phishing sites, these attacks are all

organized and tested daily in order to provide the most accurate and

concurrent list of malicious addresses for prevention cause.

Webroot

US

Webroot has constantly classified over 95% of the URLs on the Internet,

thus coming up with the largest URL database of its type. This database

includes various intelligence and malicious Web sites categorized into

botnet, command and control servers, phishing URLS, known malware

sites ,and many other URLs that are related to hacking and exfiltration.

Using these collected data, administrators can create policies to control

their IoT devices and gateway connections in order to ensure safe and

secured communication to approved data centers and remotesites.

Threat Intelligence Solution for IoT

Webroot, Frost & Sullivan

Key

Technology

Capabilities

58

… or specific to certain applications such as Smart Buildings

With the growing adoption of IoTconcept, the demand and adoptionof smart homes consisting ofconnected smart devices isexponentially increasing.

Cyber attackers are leveraging this connected devices’ network to gainillegitimate access to homenetworks. This is leading to loss ofconfidential information, as well acompromise of privacy.

IoT devices for smart homes suchas connected smart bulbs and otherelectronic devices have integrationissues as they cannot be integratedwith every traditional securityapplication. Using heterogeneoussecurity architecture makes themvulnerable to cyber attacks.

Which solution can help?F-Secure SENSE

The F-Secure SENSE is a comprehensive security

solution consisting of both hardware and software that

helps to protect smart home IoT devices from threats,

both indoors and outdoors.

preferred choice.

Smart

Remote

Monitoring

and Control

Network Traffic

Behavior

Analysis

Prevents

Unwanted

Tracking




Long Term (>5years)

Market Opportunity

High High

Analyst InsightsThe F-Secure SENSE smart home security solutionis expected to attract considerable interest within aperiod of two to three years following the wide-scaleadoption of IoT powered smart home solutions. Byvirtue of its capability to offer unified intelligentsecurity to a wide range of connected smart devicesfrom multiple manufacturers at a very affordablecost of ownership, the solution is expected to be a

Medium

The solution consists of an advanced smart security Wi-Fi router to

which all the smart home devices can be connected. The hardware

creates a highly secured private communication network. The router is

connected to the F-Secure Security Cloud. This helps to monitor the

outbound and inbound network traffic of the smartdevices.

F-Secure

Corporation

Finland

SENSE leverages F-Secure’s proprietary machine learning algorithms

that can identify malicious network traffic proactively. The algorithms

are equipped in the F-Secure Security Cloud through which the traffic

passes. This approach immensely helps in analysis of network traffic

behavior and to isolate and secure the smart home network from

external threats.

The intelligent SENSE mobile application allows users to receive

instant notification of any malicious attack. Additionally, the application,

once installed on mobile computing devices such as smartphones or

laptops, can protect these devices even if they are not connected to

the SENSE homenetwork.

Unified Smart Home Security

F-Secure, Frost & Sullivan

Key

Technology

Capabilities

59

… or specific to certain applications such as Connected Vehicles

Today’s connected cars offer a wide

range of new applications such as

intelligent navigation, vehicle-to-

vehicle communication, wireless hotspots, and so on, therebyoffering a major contribution to the IoT.

However, the connectedconcept is opening up

cars attack

surfaces that cyber criminals can exploit to gain unauthorized accessto connected home or officenetworks.

These highly sophisticated carsessentially need to be protectedfrom malicious threats such as zero-day attacks, distributed denial ofservice (DDoS) and so on, toensure safe and securetransportation.

Which solution can help?Symantec Anomaly Detection for Automotive

The Symantec Anomaly Detection for Automotive

solution offers real-time security analytics capabilities to

detect and protect against targeted attacks.

Platform

Agnostic

Proactive

Security

Analytics

Light

Weight




Long Term (>5years)

Market Opportunity

High High

Analyst InsightsWith connected cars and unmanned vehiclesreshaping the future of intelligent mobility andtransportation, the need for robust security to protectthem from cyber attacks is ever growing. TheSymantec Anomaly Detection for Automotivesolution, by virtue of its intelligent in-vehicle securityanalytics and detection capability, will attractsignificant interest from automotive manufacturers

High

Identification of zero-day attacks is not possible using traditional

reactive signature-based solutions. The Symantec Anomaly Detection

solution, leverages proprietary machine learning algorithms that can

passively monitor and detect abnormal behavior variations in controller

area network (CAN) bus traffic. This helps to formulate and implement

security strategies for quick response and remediation.

Symantec

Corporation

US

The solution, without affecting in-vehicle operations and performance,

can monitor information exchanges to and from the vehicle using the

CAN. Using proprietary deep packet inspection techniques, the solution

thoroughly checks every message to identify anomalies in payload

values, message patterns, network traffic rates, and so on. This

capability, powered by machine learning, helps to detect even unknown

zero-day attacks.

The platform agnostic low footprint solution requires minimal central

processing unit (COPU) and memory requirements. Deployable using

on-board diagnostics (OBD-2) port devices, or any in-vehicle security

gateway module that is connected to the CAN Bus, the solution can beused in any connected vehicle from any manufacturer. by 2017.

Connected Car Security

Symantec, Frost & Sullivan

Key

Technology

Capabilities

60

… or specific to certain applications such as Home Health

Sensitive private patient data couldbe at risk during transactionbetween several parties in thehealthcare network. These data areof great interest among cybercriminals for selling information tothird parties.

In addition, hacking a connectedhealthcare network could also leadto planting malicious codes tomalfunction medical devices, whichcould lead to life threateningsituations for patients using thedevices.

With the increasing adoption ofelectronic medical record systems,more and more of these systemsare connected online to transferdata to the hospital network forsharing patient information withdoctors and insurers.

Which solution can help?SafeNet Healthcare Data SecurityThe Gemalto SafeNet solution is not only compliant to

healthcare application regulations and standards but

also provides a comprehensive secured solution from

access control to secured hardware modules.

Advanced

Data

Encryption

Compliant to

Healthcare

Standards

Hardware

Level

Security




Long Term (>5years)

Market Opportunity

High High

Analyst InsightsIncreasing adoption of technologies like virtualization,cloud services, and the growing mobile dependentworkforce warrants a secured data-centric approachwhile maintaining the regulatory compliances in ahealthcare ecosystem. SafeNet’s ability to address allthe important challenges in the adoption of connectedhealthcare applications will surely provide a greatopportunity for the company to win major market sharein the IoT security space in the next 1 to 2 years.

Medium

Understanding remote access channels to medical record systems as

a key gateway for data breach incidents, SafeNet incorporates a

multifactor authentication technique that uses a combination of

traditional password, smart card tokens, and biometrics to monitor and

allows access to authorized users only.

Gemalto

SafeNet

US

To further enhance the security aspect of the system, the company has

also incorporated a hardware security module that handles the

cryptographic operations solely by providing a dedicated cryptographic

processor. The temper-resistant device manages the life cycle of

cryptographic keys used for the purpose of secured transactions, as well

as protection of the applications and sensitive data in thenetwork.

The solution also delivers a full-fledged encryption solution for the cloud

and on-premise database system. It covers all the key areas like file

encryption, tokenization, virtual machine encryption, and network

encryption through a single solution.

Multi-factor authentication for Healthcare

Gemalto, Frost & Sullivan

Key

Technology

Capabilities

61

Appendix

62

Principal abbreviations

ADS-B Automatic Dependent Surveillance-Broadcast System LEP Law Enforcement Personnel

API Application Programming Interface LEV Law Enforcement Vehicle

B2B Business To Business LMS Learning Management System

B2B2C Business To Business To Consumer LTE Long Term Evolution

B/Bn Billion M Million

CAGR Compound Average Growth Rate M2M Machine to Machine

CATMT Collaborative Air Traffic Management Technology MCU Micro Controller Unit

DOE Department of Energy MHz Megahertz

EPA Environmental Protection Agency MMS Micro Machined Sensor

ETSI European Telecommunications Standards Institute NIST National Institute of Standards and Technology

G2V Grid to Vehicle PKI Public Key Infrastructure

GHz Gigahertz ROI return on investment

GSM Global System for Mobile Communication RPMA Random Phase Multiple Access

HITSP Health Information Technology Standard Panel SMLC Smart Manufacturing Leadership Coalition

IEEE Institute of Electrical and Electronics Engineers SWIM System Wide Information Management

IoT Internet of Things UNB Ultra Narrow Band

IP Internet Protocol US United States

ISM Industrial, Scientific, and Medical USDOT US Department of Transportation

Kb Kilobyte V2G Vehicle to Grid

Km Kilometre V2V Vehicles to Vehicle

LCS Lecture Capture System VAR Value Added Reseller

LEC Law Enforcement Camera WAVE Wireless Access in Vehicular Environments

63

Frost & Sullivan contacts

John DaviesSenior Consultant

Business & Financial Services

Tel +33 1 42 81 21 01

[email protected]

Livio VaninettiDirector

Italy

Tel +39 02 4851 6135

[email protected]

Luca RaffelliniHead

Business & Financial Services

Tel +44 20 7343 8384

[email protected]

mailto:John.davies@

mailto:[email protected]



64

Frost & Sullivanwww.frost.com

February 2017

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