powerpoint presentation - avendus...source: report on “iot technology services” by zinnov zones...

June 2019

2

674

1,100

2017 2021

Expected IoT growth by region

▪ Worldwide spending on the Internet of

Things (IoT) is forecasted to reach

USD1,100 Bn in 2021 at a CY17-21 CAGR

14.4% over the USD674 Bn spent in 2017

▪ Adoption of IoT is happening across

industrial and in consumer space.

Industrial IoT installed units are growing

at CY14-20 CAGR 35.0% and are

expected to overtake consumer IoT units

▪ IoT services spend of top 500 companies

is expected to grow at CY17-22 CAGR

19.0% from USD78 Bn to USD190 Bn and

25.0% CAGR is expected for IoT

addressed outsourced services for the

same period

▪ North America's share in IoT services is

largest and expected to grow at the

highest CAGR 21.0% for CY17-22

followed by Europe at 20.0% and Asia at

17.0% growth rates

CY17-2221%

CY17-2220%

CY17-2217%

NORTHAMERICA

EUROPE ASIA

THE GLOBAL INTERNET OF THINGS (IOT) MARKET IS A USD674 BN MARKET, WITH HUGE GROWTH POTENTIAL AND EXPANDING USE CASE CONVERGENCE OF DISRUPTIVE TECHNOLOGIES AND RAPIDLY EVOLVING BUSINESS MODELS IS ACCELERATING THE ADOPTION OF IoT TECHNOLOGIES

▪ Technological shift driving IoT uses:

Technology development in the form of

better processors, lower data storage

costs, cloud computing, data analytics, AI

– is supporting growth and adoption in

connected IoT ecosystem

▪ Industrial, High Tech and Telecom

verticals are expected to drive the IoT

growth contributing to ~67% of the talent

demand

▪ Fragmented vendor landscape

– Players are adopting partnership

models to bring in more stack offerings

and larger sales channels as they move

towards new business models like

everything-as-a-service and data

monetization

– There exists multiplicity of small,

medium sized vendors across all layers

of stack. Few large sized players

provide pure play IoT solutions creating

scope for IoT service integration

providers

CONSOLIDATION AT PLAY WITH SIGNIFICANT INTEREST FROM BOTH FINANCIAL AND STRATEGIC INVESTORS

▪ Major deals concluded in 2018 at median trailing EV/Sales of ~4.0x. Large number of deals (68%) are centered in North America

▪ Majority of the acquisitions are done by tech firms; continuous growth in PE and VC led funding to emerging players

▪ Highest volume of data in applications and services layers; leading to most number of acquisitions in this segment

(USD BN)

78

190

2017 2022

Expected globalspend on IoT services

Expected Top 500 Companies spend on IoT services IoT addressed

outsourced services

2017 2022

3

Industry Challenges & Opportunities

Growth Drivers

Player Initiatives

Introduction

IoT Applications

Deal Activity

4-19

20-24

25-29

30-43

49-52

44-48

53-65Appendix

1

2

3

4

5

6

7

5

IoT enables seamless access to platforms/content across devices 24x7

Connectivity enables devices to become smarter and service the customers better

Next gen refrigerators provide analytics on the products kept inside and provides constant updates across connected devices like mobiles etc.

Washing machine alerts and instructions can be given to and from mobile phones

Smart cameras provide view across connected devices, instead of a single designated device, as in the past

COMPLETELY CONNECTED AND ACCESSIBLE ECOSYSTEM FUTHER ENABLEMENT OF EXISTING DEVICES SINGLE DEVICE WITH POWER OF MANY

Source: Industry research

6

Reducing human involvement with incoming IoT enablement leading to reduction in costs

Reduction in human errors with better connected ecosystem and analytics

Reduction in solvable errors with better data collection and insights

INCREASING EFFICIENCY OF OPERATIONS

MACHINE HUMAN

No ErrorError ErrorNo Error

SolvableNot

SolvableReplace Correct

Machine Human

A

B

C

A

B

C

SHIFT IN OPERATING LEVERAGE STRUCTURE

OPEX

OPEX

CAPEX

CAPEX

Increasing IoT deployment is expected to shift the production structure to have smaller demand cycles and faster production

Changing structure will lead to a shift in the cost divisions between capital expenditure and operational expenditure

Lower upfront cost due to reduced CapEx and higher demand generation with higher OpEx

Source: Industry research

7

Source: Report on “Forecast: Public Cloud Services, Worldwide, 2016-2022, 2018 Update” by Gartner; Report on “Global Big Data Analytics Market” by Frost & Sullivan; Article on “Dev-Ops market & IoT middleware market” by marketsandmarkets; Data On “Connected hardware revenue” by Statista

Cloud

SaaS

Connected

Hardware

Analytics

DevOps

APIs /

Middleware

Platforms

Market Size:USD175.8 Bn

CY18-22 CAGR:17.3%


CY18-22 CAGR:17.8%

Market Size:USD17.2 Mn

CY17-23 CAGR:11.9%


CY17-23 CAGR:29.7%


CY18-23 CAGR:17.3%


CY18-23 CAGR:23.0%

9

NETWORK LAYER

▪ Network layer is responsible for processing data received from Perception Layer

▪ In charge of transmitting data to the next layer of the IoT stack▪ Cloud computing is the primary technology in the Network

layer

Network

Device toServer

GATEWAY CLOUD

IoT ECOSYSTEM

INTERNET OF THINGS

IoT is a network of physical devices, vehicles, home appliances among other items embedded with electronics, software, sensors, actuators and connectivity. This enables these objects to connect and exchange data for analysis in order to gain insights

SENSORS RFID/NFC

PERCEPTION LAYER

Components Firmware

▪ Physical sensors and actuators measure physical parameters & translate them into electrical signals

▪ All data collection and data sensing is done at the perception layer▪ Examples of devices are sensors, bar code labels, RFID tags, GPS,

camera, etc.

Real worlddata

Device toDevice

DATA

ANALYTICS

FRONT

END APP

USER

COMMANDS

APPLICATION LAYER

Network

Server toServer

▪ Application layer uses the data processed by the network layer

▪ It constitutes the front-end of the IoT stack and presents the final data to the user.

▪ This layer produces insights that generate business value

Connectivity Platform Data Analytics Application & Service

Source: Report on “2017 Planning Guide for the Internet of Things” by Gartner, report on “Internet Of Things: The Industry Connection” by BMIS, report on “Internet of Things” by EY

10Source: Report on “IoT Technology Services” by Zinnov Zones 2017

Stan

dar

ds

Pro

toco

ls

Ne

two

rk & C

on

ne

ctivity

Secu

rity

IoT Backend IoT Enablement IoT Products, Solutions & Services

Compute Storage Micro serviceIoT

middlewareTools &

FrameworksAnalytics Platform

Sensors, Processor

Embedded Systems

Services, Solutions

IoT Platform IoT Products

Service Provider & Integrator(Consulting, Integration & Development)

ManufacturingEnergy &

PowerOil &Gas

Agriculture Trans & Logistic Health Auto-motive Retail BFSI Public Safety Military

Industrial IOT Consumer Government

11

2023 27

31

36

2017 2018 2019 2020 2021

Hardware33%

Others67%

In 2018, hardware was the largest technology category followed by services and then software. However, by 2021, more than 55% ofspending on IoT projects will be for software and services

674 723

827

1,000 1,100

2017 2018 2019 2020 2021

COUNTRY IoT SPEND (USD BN) INDUSTRIES DRIVING IoT SPEND

China 209 Manufacturing Utilities Government

USA 194 Manufacturing Transportation Consumer

Japan 68 Manufacturing

Korea 29 Manufacturing

COUNTRIES WITH THE HIGHEST ESTIMATED IoT SPEND IN CY2018

Software & Services

55%

Others45%

CY 2018

CY 2021

GLOBAL IoT CONNECTED DEVICES (BN UNITS)*

GLOBAL IoT REVENUE (USD BN)*

GLOBAL IoT REVENUE ESTIMATE BY TECHNOLOGY ELEMENT

Source: Report on “Worldwide Semiannual Internet of Things Spending Guide forecasts, December, 2017” by IDC, report on “IoT platforms: enabling the Internet of Things, March 2016” by IHSNote: IDC report forecasts IoT spending for 14 technologies and 54 use cases across 20 vertical industries in 8 regions and 53 countries. The technologies covered under the forecasts are: Hardware: Modules/sensors, storage, servers, and security hardware; Software: IoT purpose-built platforms (horizontal and vertical industry), analytics software, application software, and security software; Services: IT and installation services and ongoing or content services; Connectivity)

12

IoT Stack

Application layer

Data Analytics Application & Service

▪ Analytics▪ Data Publishing▪ Data Processing▪ Data Aggregation

▪ End User Devices▪ As a Service▪ Engineering Services

Network layer

Connectivity Platform

▪ Cloud▪ Open Source▪ Middleware

▪ Network▪ Protocol▪ Application Program

Interface

Perception layer

Components Firmware

▪ Microprocessors▪ Controllers▪ Signal/Radio▪ Sensors

▪ Edge Devices▪ Firmware

IoT services represent a set of offerings at every layer of the IoT stack where a user contracts with external service providers to design, build, operate and monetize IoT solutions

Advisory & ConsultingAdvisory and consulting services include helping clients

understand IoT readiness, IoT implementation roadmap strategy, identifying IoT use cases, IoT audit, IoT architecture design

System IntegrationSystem integration involves putting together networking, IT, security projects using equipment from different vendors, making them all interoperate, training the users, monitoring and maintaining the application themselves

Product EngineeringProduct engineering means engineering consulting activity, which uses hardware, embedded, software and IT services

solution for designing products, firmware, software and connectivity

Managed ServicesManaged IoT services are third-party management services delivered in support of a user's IoT solution like IT operations management, IT service management and IoT monetization

Source: Report on “2017 Planning Guide for the Internet of Things” by Gartner; report on “Internet Of Things: The Industry Connection” by BMIS; report on “Internet of Things” by EY

13

Perception layer Network layer Application layer

Tie

r 1

: Lar

ge>

10

00

e

mp

loye

es

Tie

r 2

: Me

diu

m2

00

-10

00

em

plo

yee

s

Tier

3: S

mal

l<

20

0 e

mp

loye

es

Source: Company websites; Company profiles; Employee headcount - Datafox

14

67%

33%

IoT SERVICES BY VERTICAL (USD BN)

18

9 9 97 7

5 5

9

Industrial Automotive Energyand

Utility

HighTech

Retail Telecom BFSI Healthcare Others

Global IoT Revenue2017 = USD674 Bn*

Services

Connectivity

Software

Hardware

IoT SERVICES BY SERVICE LINE

USD78 Bn

Advisory &

Consulting

USD14.7 Bn

Product

Engineering

USD27.0 Bn

System

Integration

USD19.3 Bn

Managed

Services

USD17.0 Bn

Source: Report on “Worldwide Semiannual Internet of Things Spending Guide forecasts December, 2017” by IDC; report on “IoT Technology Services, 2017” by Zinnov Zones* IDC report forecasts IoT spending for 14 technologies and 54 use cases across 20 vertical industries in 8 regions and 53 countries. ** Zinnov Zones forecasts IoT spending for ~ 500 enterprises across 10+ vertical industries

15

IoT SERVICES SPLIT BY VERTICALS (USD BN)

Advisory & Consulting

Product Engineering

System Integration

Managed Services

9.0%

18.5%

22.5%

23.5%

USD14.7 Bn

USD27.0 Bn

USD19.3 Bn

USD17.0 Bn

USD23.0 Bn

USD63.0 Bn

USD55.0 Bn

USD49.0 Bn

CAGR (%)

IoT SERVICES SPLIT BY SERVICE LINES

18

9 9 9 7 7 5 59

50

24 2320

16 14 138

22

Industrials Energy Auto HiTech Retail Telecom Healthcare BFSI Others

2017 2022E

USD78 Bn USD190 Bn

4.9 15.0

46.0

130.078.0

190.0

2017 2022

Addressable Outsourced Market

IoT Technology Services Spend

Addressed Outsourced Market

Scope for tremendous growth

▪ Addressed Outsourced Market currently accounts for ~6% of the total IoT technology

services spend

2017

USD78 Bn

2022E

USD190 Bn

CAGR 25%

CAGR 23%

Source: Report on “IoT Technology Services” by Zinnov Zones 2017Note: Zinnov Zones forecasts IoT spending for ~ 500 enterprises across 10+ vertical industries

CAGR 19%

USD BN

16

USD BN

North America

$31.7

$83.0

2017 2022

$21.5

$52.5

2017 2022

Europe

$0.8

$1.1

2017 2022

South America$0.2

$0.2

2017 2022

MEA

$0.6

$0.9

2017 2022

Australia

$23.2

$51.0

2017 2022

Asia


17

ENTERPRISE IoT TALENT DEMAND BY GEOGRAPHY

IoT TALENT DEMAND BY EXPERIENCE LEVEL

ENTERPRISE IoT TALENT DEMAND BY INDUSTRY

24%

20%

23%

8%

12%

12%Industrial

High-tech

Telecom

Automobile

Retail

Others

45%-50%15%-20%

25%-30%

< 5%

India and China account for 75% of IoT talent demand

in APAC

Germany, UK and France account for 80% of IoT

talent demand in EuropeBay area accounts for 25% of IoT talent demand in North

America

Poland Is emerging as a hub for IoT talent in

Eastern Europe

▪ As per a Bain survey, only 10% of respondents said they have the right people in the

right roles to make the most of IoT opportunities underscoring the need for new talent

▪ By early 2016, 16% of organizations were concerned about IoT skills gaps in their

staffing, according to a Gartner survey

▪ The right kind of the skills for the right IoT team would be: Experience designers and

engineers, scrum masters and agility coaches, product owners, full-stack architects,

next-gen machine learning engineers, DevOps engineersEntry level (<2 years) 37%

Associate level (2-5 years) 30%

Mid-Senior level (5-10 years) 26%

Senior level 7%

Key Notes


18

Platformization

▪ Ideal category: Enterprises that have a vast range of products which will benefit from IoT

▪ Pricing models: Fixed fee, transaction based fee, revenue sharing, subscription

▪ Success Factors: Provide value to all ecosystem players

DataMonetization

▪ Ideal category: Companies which possession of large amount of customer data

▪ Pricing models: Subscription, pay per use

▪ Success Factors: Offer customer privacy, data security and meet regulatory requirements

As – a – service

▪ Ideal category: Companies whose products have a transactional relation with users

▪ Pricing models: Subscription, pay per use Success Factors: Can offer multiple types of subscriptions based on user needs

NEW BUSINESS MODELS

Complexity of transformative business models

Cu

sto

me

r e

nga

gem

en

t le

vels

Low High

Relational

Collaborative

Transactional

CONSUMER IoT

TELECOM RETAIL BFSI UTILITIES

INDUSTRIAL AUTOMOTIVE

Source: Report on “IoT Technology Services” by Zinnov Zones 2017

▪ IoT has led to a move towards information-based and as-a-service models

▪ Companies with IoT projects are increasingly looking to use platforms and

solutions to enable them in as-a-service approach

▪ Availability of huge amounts of data from IoT devices and developments in data

analytics acts as an enabler to this trend

Key Notes

19

INCREASE IN PARTNER ECOSYSTEM

There has been a growth in IoT partnerships across different horizontals and verticals in the last few years. Partnerships enable IoT vendors reduce the time-to-market. Partnerships bring in a larger sales channel

and more stack offerings. Partners use partnerships as a way to explore working with a company before making an acquisition.

KEY PARTNERSHIPS AMONG IoT VENDORS

PARTNERS AREA OBJECTIVE

IIOT PlatformPartnered to deliver industrial apps designed to bring predictive data and analytics from Predix to iPhone and iPad by together launching a new Predix softwaredevelopment kit for iOS, which helps developers make their own industrial IoT apps.

Cloud, 5G & IoT Strategy

Partnered to create 5G and edge cloud strategies and IoT architecture reference guide. Collaborated on products such as AWS Greengrass, Amazon MachineLearning, Nokia Multi-access Edge Computing and the Nokia Impact platform with Nokia providing consulting, design and integration services for a company’sAWS implementation.

IIOT PlatformPartnered so that TCS can develop applications for industrial IoT verticals like manufacturing, energy, healthcare, railway and construction on MindSphere (thecloud-based IoT operating system developed by Siemens). TCS will also support in the management of MindSphere platform.

Fog PlatformPartnered to build and host IoT applications in Azure and extend those applications to the edge via Cisco’s Fog computing solutions. This will bring intelligenceand data processing closer to where the data is collected and help reduce costs by only sending the necessary information to the cloud, while processing the restat the edge.

Smart BuildingsPartnered to deploy Azure for different United Technology’s products: Otis: Dynamics 365 CRM for its service and sales teams - customer data will be combinedwith data from equipment for predictive maintenance; Pratt & Whitney: Azure for sales and marketing; UTC Aerospace Systems: Azure for predictivemaintenance of aircraft systems

IIOT Center of Excellence

Partnered to jointly conceptualize and build a Center of Excellence wherein Tech Mahindra can develop and implement system integration solutions based onPTC technology: Thingworx. Tech Mahindra and PTC also plan to use ThingWorx to develop vertical-specific solution for the benefit of their mutual customers.

Source: Company Websites

21

Growth of datapenetration due to

industry standardization, lower storage and

sensor costs

1Increasing affordability of data analytics and growth of public cloud services

2

Exponential increase in connected devices & enterprise AI to aid IoT solutions adoption

3

22

▪ 5x Penetration rate of 4G is expected in 2020 v/s today contributing

to higher processing speeds

▪ 5G mobile networks to drive IoT adoption as greater speeds will

improve data transmission and processing quality

▪ First global 5G standard was completed led by major players like

Qualcomm and Ericsson forming a coalition. ~5% of all subscriptions

are expected to be 5G subscriptions by 2025

▪ As per IDC estimates, connected devices will generate 180 zettabytes

of data each year by 2025 and 44 zettabytes in 2020, up from 4.4

zettabytes in 2013 displaying a CAGR of 36% from 2013 to 2025

▪ Reduction in storage cost will support this increase in data volume.

There has been 80% cost reduction implying data storage can increase

by 400% at the same cost

0 1040

80

175

300

420

0.20.5

1.0

2.0

3.6

5.0

5G subscriptions (mn) Share of total subscriptions (%)

552

402

304

232177

136 109

2013 2014 2015 2016 2017 2018 2019

Cost/TB ($)

2019 2020 2021 2022 2023 2024 2025

HIGHER PROCESSING SPEED 5G FORECASTS IN NUMBER OF SUBSCRIPTIONS AND % SHARE

LOWER DATA STORAGE AND SENSOR COSTS DATA STORAGE COST PER TB IN USD

Source: Report on “Internet Of Things: The Industry Connection” by EMIS; report on “IoT: Landscape and Nasscom Initiatives, May 2017” by NASSCOM; report on “Worldwide Semiannual Internet of Things Spending Guide forecasts, December, 2017” by IDC

23

AFFORDABILITY AND GROWTH OF DATA ANALYTICS PERCENTAGE OF PRODUCTS IN VARIOUS PRICE LEVELS*

8%

11%

20%

28%

33%

0% 5% 10% 15% 20% 25% 30% 35%

5

4

3

2

1

Percentage of Products

Pri

ce L

evel

SaaS

PaaS

IaaS

8.2%BPaaS

23.1%

18.1%

29.2%

2017 2021 CAGR

43 58

12 27

60 117

30 84

CLOUD COMPUTING GAINING TRACTION PUBLIC CLOUD SERVICE REVENUES (USD BN))

▪ Cloud computing to address issues around scalability and security, and

provide a travel pathway for IoT data

▪ Gartner forecasts of public cloud service revenues indicate present

growth trend will continue

▪ High competitive analytics industry, low costs of acquiring data and

switch from licensing of products to cloud based services has lead to

low costs of analytics software (60% of the analytics products are

priced in the lowest price levels)

▪ According to a survey by Accenture and GE, 73% of companies are

investing more than 20% of their overall technology budget on big

data analytics

▪ Analytics applied on IoT sensor data will enable organizations to take

real time action, modify their product / service offerings based on

data gathered, extract relevant trends and hence, improve the

revenues and profits earned

Source: Report on “Forecast: Public Cloud Services, Worldwide, 2016-2022, 4Q18 Update” by Gartner; report on “Global Outlook on Analytics Industry” by Avendus* Sample size of 64 was considered for predictive analytics products, Rating Scale of 1-5 was used with 5 being highest 1 being the lowest

24

REVENUES FROM ENTERPRISE ARTIFICIAL INTELLIGENCE (USD MN)

358 841 1,622 2,8684,806

7,714

11,841

17,284

23,887

31,237

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

▪ IoT is going to lead to an exponential growth in the number of

connected devices, necessitating more IP addresses

▪ This requirement will be met by IPV6 with its 128-bit address size

compared to the 32-bit system used in IPv4 allowing for as many as

3.4×10^38 possible addresses

▪ Increasing percentage of users that access Google over IPv6 (as of

May 2018 ~22% of the users accessed Google over IPv6)

MORE IP ADDRESSES DUE TO IPV6

IPv4

32 bit

Number of IP addresses

available = 4.3 billion

IPv6

128 bit

Number of IP addresses available =

3.4*10^38

▪ IoT will require devices to become intelligent, thus, requiring smart

machines

▪ Smart machines and AI can help achieve actionability and

monetization of IoT sensor data

▪ AI will impact IoT solutions by enabling real-time responses and post

event actionsCAGR 53%

GROWTH OF ARTIFICIAL INTELLIGENCE

Source: Data on “Enterprise AI market revenue worldwide 2016-25”, Statista; Statistics on IPv6 by Google statistics

26

Impact On Adoption

Energy Requirements

▪ IoT sensor devices, connectivity and gateways will increase energy consumption

Interoperability

▪ Multiple technologies and little standardization at connectivity layer impacts device interoperability

Security

▪ Proliferation of numerous touchpoints in the form of sensors, actuators, gateways, etc. adds to the possibilities for cyber attacks

▪ Lack of computational power, storage capacity and operating system in IoT devices to deploy the existing cybersecurity solutions

Multiple vendors

▪ Multiple vendors at each layer of the IoT stack

▪ Confusion in vendor selection due to clutter of small & medium size vendors

Lack of internal talent

▪ Lack of perceived ROI in implementing IoT solutions

▪ Skill gaps in existing staff act as barriers to adoption

Privacy

▪ Devices collect personal data from multiple sources and individual data streams are analyzed to create a more invasive digital portrait of the individual causing privacy concerns

Upfront Investment

▪ Upfront investment and uncertain ROI

Regulation

▪ Regulatory challenges like cross border data flows, assigning liability for damage caused due to IoT data, exist at present

Enterprise readiness

▪ Lack of enterprise Inclination (means to start action to implement IoT)

▪ Readiness is measured using parameters like talent acquisition, IT security deployed, business model for IoT monetization etc.

Ind

ust

ry F

ocu

s

Low

Low

High

High

Low

Medium

High

Source: Report on “IoT Technology Services” by Zinnov Zones 2017

27

▪ There exist multiple competing standards in the connectivity layer of the IoT stack,

causing interoperability issues

▪ Product designers may be reluctant to create new devices and customers may be

reluctant to buy devices that may not be interoperable

Higher IoT Device Liability

▪ IoT devices can collect data about people in one jurisdiction and transmit that data to another

jurisdiction for data storage or processing. This can create issues in case of personal or

sensitive data and the data protection laws in the jurisdiction where the device and data

subject reside are different than the laws in the jurisdiction where the data is stored and

processed

▪ Although the issue exists in case of traditional internet traffic as well, but in case of IoT, sensor

devices may collect data and transmit it without the knowledge of the user. This creates

situations where a user becomes liable for cross border data flow even when he is unaware

that the activity is happening

▪ IoT devices might connect and interact in ways unforeseen ways - as an input to machine-

learning algorithms

▪ Anticipating all such scenarios is not possible by the manufacturer. It is it difficult to assign

liability in case of any harm caused by IoT devices

UNSTANDADIZATION CAUSING INTEROPERABILITY ISSUES LEGAL AND REGULATORY ISSUES

MULTIPLE STANDARDS IN THE CONNECTIVITY LAYER

Many competing standards for low-range, medium-low data rate hinder IoT

applications

White Space for low data rate, low power high range applications

1 GBPS

100 mbps

10 mbps

1 mbps

100 kbps

10 kbps

100 bps

10 bps

100 km10 km1 km100 m10 mDistance

Co

nn

ect

ivit

y sp

ee

d

Onramp

Sigfox

Bluetooth

LTE CAT 1

Zigbee

Zwave

4G

WiFi

Tricky Cross border data flows

Source: Article on “The Internet of Things in 2017: trends, technologies, market data and evolutions” by I-scoop, “Market Guide for Internet of Things Mobile Virtual Network Enablers” by Gartner

28

GROWING SHARE OF LPWA IN IoT CONNECTIONS

20 21 22 23 24 25 25 26

410

1420

2530 35 35

30

3029

2726

2319 20

4639 35 30 25 22 21 19

2017 2018 2019 2020 2021 2022 2023 2024

Cellular (2G,3G,4G) LPWA MAN Wide Area Fixed

Highest share of LPWAN

▪ Cellular (2G, 3G, 4G): refers to 2nd, 3rd and 4th generation cellular connectivity standards

▪ LPWA: Includes a range of technologies such as LoRa, Sigfox and 3GPP licensed technologies

▪ MAN (Metropolitan Area Network): Comprises a range of medium-range technologies

including power line and community Wi-Fi

▪ Wide-Area Fixed: Any fixed line connection including public switched telephone network

(PSTN), Integrated Services Digital Network (ISDN), cable, Digital Line Subscriber (DSL) and

fiber

3GPP (3rd Generation Partnership Project) is a collaboration between groups of telecommunication standard associations

Each of the above technologies differ slightly from each other in terms of the quantity of data transmission speeds, power consumption and range (distance)

LPWA ADVANTAGES

LPWA technologies

3GPP licensed

Proprietary technologies

▪ Extended Coverage GSM for IoT (EC-GSM-IoT)

▪ Long Term Evolution Machine Type Communications Category M1 (LTE-M)

▪ Narrowband IoT (NB-IoT)

Sigfox, LoRa, Bluetooth, Zwave, Zigbee, Onramp

Lowcost

Lower power consumption

Support more number of

devices

Enhanced coverage (distance)

Source: Article on “The Internet of Things in 2017: trends, technologies, market data and evolutions” by I-scoop, “Market Guide for Internet of Things Mobile Virtual Network Enablers” by Gartner

▪ IoT use cases have varied bandwidth requirements. For e.g. real time surveillance require high

bandwidth while smart meters require small data transfers, maybe once a day

▪ Different IoT use cases currently deploy different types on connectivity technologies.

▪ Within the different wireless technologies available for IoT like cellular, MAN, WAN, etc., Low

Power Wide Area network technology is gaining traction

Key Notes

29

Two leading LPWA Technologies

NB-IoT

▪ Focused on very low data rates▪ Ability to use both 4G and 2G▪ Ideal for simpler static sensor applications▪ Requires a higher deployment cost than LTE-

M. But is considered the potentially less expensive option as it eliminates the need for a gateway. With NB-IoT, sensor data is sent directly to the main server.

▪ Highest bandwidth within Category 0 LPWA▪ Ability to support voice & roaming on 4G ▪ Ideal for real-time, fixed or mobile

applications▪ Targeted towards applications like smart

metering where only small amount of data transfer is required.

LTE-M

NB-IOT LTE-M

20 KBPS 65 KBPS 350 KBPS

CAT 0

CAT1

CAT3&4

CAT 6

CAT 12+

Increasing speed & performance

< 350 KBPS 150 MBPS10 MBPS 300 MBPS 600+ MBPS

Trailing now

Available now

Coming soon

LTE is a communication technology developed by 3GPP. LTE utilizes UE (User

Equipment) categories or classes to define the performance specifications of LTE

Networks.

LTE categories (2 onwards) represent higher data speeds and bigger bandwidth. They consume too much power and don’t fit well with applications

where only a small amount of data is transmitted.

LTE Category 1 (CAT 1) is a cellular IoT option.

LTE is evolving to meet low-data, low-power needs of IoT and high-speed, high-performance requirements of many critical IoT communication applications. , Cat-0 optimizes for cost as it eliminated features that supported high data rate requirements for Cat-1

LTE-M (also called Cat-M1/Cat-M) and NB-IoT (Cat-M2) are a part of CAT 0 and these technologies were standardized by 3GPP in June 2016.

Strength and longevity of adoption of a technology are based on the source of technology (standard v/s proprietary) and industry support.LPWA technologies licensed by 3GPP promise quality and are gaining industry support

28 telecom operators have rolled out NB-IoT and LTE-M networks in 21 countries. China Mobile has planned to invest USD300 Mn to boost NB-IoT capabilities.

Source: “The Internet of Things in 2017: trends, technologies, market data and evolutions” by I-scoop, “The Evolution of Wireless Communications and Its Impact on Your IoT Project” by Gartner

31

Manufacturing

Energy & Power

Oil & GasHealthcare

Transport &Logistics

Agriculture

Automobile

Retail

Insurance

26%

14%

13%9%

6%

3%

15%

11%3%

IoT spend in different industries (CY2017)

▪ Manufacturing, Healthcare & Insurance, Automobile together make up 53% of IoT Spend among all the different industries using IIOT. Global IIoT Solutions market consists of 4 major Service lines – remote monitoring, data management, analytics and security solution. Currently, the largest market is in North America, however high CAGR of ~31% is expected in Asia Pacific and MEA region

▪ In Manufacturing Sector, IIoT technology growth is driven by Predictive and Prescriptive Analytics (56.9% CAGR) since companies are realizing the cost and downtime reduction due to predictive maintenance, predictive analytics and predictive quality management

0.37

0.84

2.48

0.32

1.43

0.76

3.51

1.89

4.96

1.31

6.66

2.9

Predictive &Prescriptive

Analytics

Descriptive &Diagnostic Analytics

Energy Management NoSQL Hadoop M2M ApplicationDevelopment

Platform

2016 Revenue (USD Bn) 2021 Revenue (USD Bn)

CAGR: 56.9% CAGR: 17.8% CAGR: 15.0% CAGR: 32.5% CAGR: 36.0% CAGR: 30.7%

IoT SPEND SEGMENTATION BY VERTICALS, 2016 KEY IoT TECHNOLOGIES IN MANUFACTURING

Source: Report on “Industrial Internet of Things (IIoT) and the Future of Manufacturing, Forecast to 2021” by Frost & Sullivan

32

VERTICAL COMPANY IoT APPLICATION

Automobile

Autonomous driving systems based on IoT , cloud technology and AI to build driverless cars

Tires-as-a-service offering to allow fleet managers to pay for tires on a kilometer-driven basis, thus saving costs

M2M cellular connectivity to check battery, remotely control air conditioning, lock/unlock doors, etc.

Retail

Beacons to send push notifications to consumers about a discount coupon or sale

Trial rooms with virtual and smart mirrors, thus helping consumers in making a choice while shopping

Real-time POS analysis to replenish in-store stock more quickly and reduce inventory holding costs

Insurance

Usage-Based Insurance (UBI) for automobiles based on M2M cellular connectivity

Sensor data used for better precision in life insurance policy underwriting, policy management and segmentation of customers

Connected smoke alarms in homes to reduce risk of fire and hence reduce home insurance premiums

VERTICAL COMPANY IoT APPLICATION

Manufacturing

Sensors to monitor humidity conditions during vehicle painting; if unfavorable, the piece is moved or ventilation systems adjusted

Intelligent cameras monitor the fill level of a supply box and transmit the data to an inventory system that automatically reorders supplies

Worker on the factory floor uses a tablet or smart glasses to assess a task and then send that information to a robotic tool that actually performs the task

Energy & PowerAutomatic meter readers collect consumption and diagnostic data from energy meter devices

Oil & GasContinuous emission monitoring systems are used to provide combustion control in industrial settings

HealthcareWearable sensor patches to give insights on health patterns, medication effectiveness, etc.

AgricultureDevices to sense where pests are breeding in orchards and automatically dispense targeted pest control solutions

Transport & Logistics

Tracking devices to keep tabs on temperature, location and condition of packages

Data about ships using sensors, GPS to collect information on traffic, possible congestion, parking spaces and fleet management

Source: Company websites

33

IIOT DRIVERS AND CHALLENGERS

131 161 202256

328424

550

716

934

2017 2018 2019 2020 2021 2022 2023 2024 2025

DRIVERS/ CHALLENGERSIMPACT

2017-20 2020-23 2023-25

Dri

vers

Convergence of M2M, OT and IT systems

Moderate High High

Data-driven smart supply chains

Low Moderate High

Predictive Maintenance Low Low Moderate

Ch

alle

nge

r

Security threats High High Moderate

System Integration High Moderate Moderate

50 62 78100

129168

220

290

381

2017 2018 2019 2020 2021 2022 2023 2024 2025

Manufacturing31%

Energy & Power18%Oil & Gas

16%

Healthcare14%

Logistics & Transport10%

Agriculture4%

Others 7%

Source: Report on “Industrial Internet of Things IIoT Market Analysis And Segment Forecasts To 2025” by Grand Review Research

IIOT SERVICE MARKET SIZE (2017-2025) (USD BN)

CAGR 29.0%

CAGR 27.8%

Asia Pacific is anticipated to

emerge as the fastest growing region

over the forecast period - Japan, China, and Taiwan being the

notable markets

North America

CAGR: 23.8%

Europe

CAGR: 27.9%

Asia Pacific

CAGR: 32.2%

Latin America

CAGR: 28.4%

MEA

CAGR: 31.4%

IIOT MARKET SIZE (USD BN) IIOT SERVICE MARKET SIZE (USD BN) IIOT MARKET SIZE BY VERTICAL (2025)

Industrial Healthcare & Insurance Automobile Retail

34

COMPANY IIOT APPLICATION

Air Bus

▪ Wearable sensors given to workers to collect position and speed data. This can then be used to improve the efficiency of production lines and monitor any disturbances and hold-ups.

▪ Industrial smart glasses designed to reduce errors and improve safety in the workplace.

▪ RFID tags attached to objects such as aircraft components and tools, to track and visualize the production processes in real-time.

Caterpillar

▪ IoT and augmented reality tools given to operators for a one glance view of everything from fuel levels to when air filters need replacing.

▪ Devices to send instructions to workers about repair and replacement procedures through AR applications

Gehring

▪ Devices which show potential customers live data on how Gehring’s machines work before they buy it.

▪ Cloud-based real-time tracking platform to reduce downtime and optimize manufacturing productivity.

Rio Tinto▪ Driverless trucks to haul ore away from the mining sites and

autonomous drill technology which enables remote workers to oversee multiple drills from one dashboard.

Maersk▪ Remote Container Management software, which allows

customers to monitor and make decisions as their cargo moves.

COMPANY IIOT APPLICATION

North Star BlueScope

Steel

▪ Wearables in helmets and wristbands to help managers track employee safety and spot dangerous scenarios Wearables to track health metrics such as body temperature, pulse and activity levels, enabling supervisors to give tired workers a break.

▪ Connected sensors to monitor temperature, radiation and toxic gases and send out alarms when they are beyond acceptable limits.

ABB

▪ Connected sensors to monitor its robots’ maintenance needs and trigger repair alert before actual breakdown.

▪ Remote monitoring and controlling devices such as switches in electrical utility stations and pumps in water-utility stations.

IIOT APPLICATIONS IIOT BENEFITS

Asset Management

Remote Monitoring

Predictive Maintenance

Improve Productivity

Enhanced Safety

Improve ROI



35Source: Report on “Industrial Internet of Things (IIoT) and the Future of Manufacturing, Forecast to 2021 by Frost & Sullivan

▪ IT covers communications as a part of its scope. Operational Technology (OT) is not a networked technology. Sensing, monitoring and adjustment devices are not computerized and those with computing resources generally used closed, proprietary protocols rather than technologies that afford full computer control.

▪ Sensors, actuators and connected systems are being integrated into the management of industrial environments.

▪ IT/OT convergence enables direct control, complete monitoring and easier analysis of data from anywhere in the world.

BIG DATA ACCELERATES THE INTEGRATION OF IT, MANUFACTURING AND OPERATIONAL SYSTEMS

Manufacturing process Solutions Metrics for measuring impact

Production & process Flow▪ Integration of sensor data from production equipment with enterprise

systems to optimize production▪ Mobile devices used to enhance process visibility

On-time production, material usage, product quality, resource utilization, inventory management

Maintenance, repair & overhaul▪ Collect data from assets, equipment, and system using sensors and

benchmark it with optimal performance metrics▪ Use analytical platforms to predict future failure

Asset utilization, asset availability, operational downtime, asset performance, field technician deployment

After-sale service▪ Embedded product tracking data to understand customer purchasing

behavior and customer service requirementsProduct pricing, customer purchasing criteria

First level edge processing

Industrial devices

Second level edge processing

Data Analytics Cloud server

Operational Technology

Information Technology

Sensors

IT-OT CONVERGENCE


36

2nd

Industrialization

Mass Production, assembly line and

electricity

3rd

Electronic Automation

Computer & automation

1st

Power Generation

Mechanization & steam power

4th

Smart Automation

Smart factories, Sensors, Predictive

analysis

▪ Descriptive analytics – reactive approach used to find out why the failure occurred post the actual breakdown

▪ Predictive analytics – Proactive approach used to find out when and how the equipment might fail prior to actual breakdown

SMART FACTORY ECOSYSTEM

80

35

20

65

2016 2021

Predictive

Descriptive

LogisticsAdditive

manufacturingRobot

Autonomous vehicles

Customer

Integrated supply chain, perfect co-

ordination

Scrap elimination,mass customization

Real time autonomy production

Flow optimization,Increased security

Mass customizationOn-demand mfg.

Sensors

Real-time data collection, traceability

Big Data

Insights from complex data

Source: Report on “Industrial Internet of Things (IIoT) and the Future of Manufacturing, Forecast to 2021 by Frost & Sullivan

SHIFT FROM DESCRIPTIVE ANALYSIS TOPREDICTIVE ANALYSIS

TIMELINE OF INDUSTRIAL REVOLUTIONS AND PLACE OF IoT IN INDUSTRY 4.0


37

Defect detected before or as soon as it occurs

Machine regularly transmits self status to

IIoT platform

IIoT Platform

Automatically notifies & triggers action in all related ERP modules

This engine identifies or predicts the defect

Analytics engine Rules engine

Service person auto-allotted & notification

sent

Order for spare part auto- generated

After – sales service

Sales force management

Inventory management

Procurement management

ERP System


Defect foundin a product/ equipment

Worker calls supervisor/ raises alarm to report defect

Supervisor raises ticket in the company’s ERP system

ERP system alerts the procurement system

Procurement manager purchases spare part

Supervisor assigns service task to a service personnel

Service person rectifies defect by way of repair or spare part

ERP SYSTEM IN MANUFACTURING WITHOUT IOT

IMPROVED ORGANIZATIONAL WORKFLOW WITH IOT


38

SUBSECTOR MARKET SIZE (2017-2025) (USD BN)

REGION MARKET SIZE (2018) (USD BN)

KEYPLAYERS

Agriculture

Transport & Logistics

Healthcare

SUBSECTOR MARKET SIZE (2017-2025) (USD BN)

REGION MARKET SIZE (2018) (USD BN)

KEYPLAYERS

Manufacturing

Energy & Power

Oil & Gas

46 55 68 85107

137174

224

287

36%

33%

27%

2% 1%

24 30 37 4759

7698

126

163

36%

34%

27%

2% 1%

22 27 33 4254

7090

117

153

37%

34%

26%

2% 1%

16 20 25 3343

5674

98

130

37%

34%

25%

2% 1%

10 13 17 2229

3952

70

94

37%

33%

26%

2% 1%

5 6 8 1013

1723

30

41

36%

32%

28%

3% 1%

USD

55 Bn

USD

27 Bn

USD

30 Bn

USD

6 Bn

USD

13 Bn

USD

20 Bn

CAGR 25.9%

CAGR 26.8%

CAGR 27.6%

CAGR 30.0%

CAGR 32.0%

CAGR 31.1%



39

PRESENT FUTURE DESCRIPTION

Disjoint care Co-ordinated careEntire care team can stay updated on

treatment plans and progress

Discrete care interactions

Continuous careContinuous monitoring even without presence of healthcare professionals

Location dependent

Location Agnostic

Diagnosis, monitoring and treatment regardless of the patient location

PRESENT FUTURE DESCRIPTION

Unidirectional information flow

Multi-directional information flow

Patients to become ‘senders’ of information to alert doctors about their health status

Generalized medicine

Personalized medicine

Doctors to provide personalized care by using data obtained from sensors

Reactive care delivery

Proactive care delivery

Rising care costs pushing for a preventive & proactive model

▪ Healthcare IOT

market expected F17-

25 CAGR 30% and

reach USD129.58 Bn

▪ APAC expected to

have highest growth

at CY17-25 CAGR

34.5% followed by

Latin America at

CY17-25 CAGR 30.6%


In Hospital

▪ Connected equipment

▪ Smart operating room

▪ Patient surveillance

Community

▪ Automated Kiosks

▪ Emergency Response Intelligence

In Home

▪ Activity monitors

▪ Digital Assistants

▪ Home medical devices

On Body

▪ Medical Wearables

▪ Implants

▪ Peripherals

In Clinic

▪ Ambulatory therapies

▪ Point of care devices

▪ Admin support tools

HEALTHCARE IoT ECOSYSTEM

HEALTHCARE DELIVERY – PRESENT VS FUTURE


40

COMPANY IoT RETAIL APPLICATION

Progressive

▪ Usage-based-insurance (UBI) telematics program to monitor how car insurance customers drive

▪ Accurate pricing on an individual basis which rewards safer drivers with reduced premiums

Metromile

▪ Pay-per-mile car insurance policy using telematics

▪ Wireless transmission of driving data to a mobile app which helps drivers access insights to personalized driving trends and diagnostics

State Farm

▪ Smartphone app and beacon which tell the insurer exactly how the customer is driving

▪ Reduced premiums for customers who drive less and safe

Source: Report on “IoT Insurance Market by Type” by Markets & Markets

COMPANY IoT RETAIL APPLICATION

John Hancock

▪ Partnership with Vitality to distribute free Fitbits to customers to track their well-being

▪ Incentives to customers to stay fit, making them less likely of filing claim

Erie Insurance

▪ Drones for property inspection in the event of a damage claim

▪ Faster claim process, inspection of damage without endangering employees, clearer picture of potentially fraudulent cases

Beam Digital

▪ Smart toothbrush to monitors customer’s oral health

▪ Differential pricing of dental insurance plans using smart toothbrush data

REVENUE FORECAST (USD BN)

▪ Automatic underwriting, customization of policies, pay-as-you go/ usage based models,

more accurate claim assessment and faster claim settlement possible by deploying IoT in

insurance.

▪ Auto insurance holds largest share in IoT insurance market driven by the growing adoption

of Global Positioning Systems (GPS), in-built sensors, and detectors which gather data like

speed, braking pattern, and driving behavior.

▪ North America to hold the major market share for the insurance IoT market during the

forecast period of 2015 to 2022.

Key Notes

2.05

42.76

2015 2022

CAGR 65.89%


41

Real-time traffic, online route planning and incident alerts

Growing number of telematics mandates by

various governments

Demand for assisted & automated driving, self

parking, etc

Growing infotainment offerings like personalized

music

Safety features like smart SOS and automatic calls

Insurance telematics, remote diagnostics, condition-based

maintenance

Source: Report on Automotive IoT Market by Offering” by Markets & Markets

15.87

82.79

2015 2022

REVENUE FORECAST (USD BN)

CAGR 26.75%

▪ In vehicle communication (providing route information, road-traffic controller, updated

information about road conditions, warnings in case of accidents) is expected to hold the

largest share in automobile IoT market

▪ Infotainment application will drive the growth of the automotive IoT market with the highest

CAGR in the forecast period of 2015 to 2022

▪ North America to hold the major market share for the automotive IoT market during the

forecast period of 2015 to 2022

Key Notes

FACTORS DRIVING GROWTH

KEY PLAYERS IN AUTONOMOUS VEHICLES

OTHER AUTOMOTIVEIoT PLAYERS


42

2024

2935

43

52

64

78

94

2017 2018 2019 2020 2021 2022 2023 2024 2025

Asia Pacific

CAGR: 27.1%Notable Markets: India

MEA

CAGR: 24.9%Notable Markets: UAELatin America

CAGR: 21.7%Notable Markets:

Mexico, Brazil

North America

CAGR: 17.7%Notable Markets: US

EuropeCAGR: 14.3%

Notable Markets: UK, Germany

Asia Pacific to have the highest CAGR (in revenue from 2014 -

25). India - highest CAGR = 30.5% ,

China - largest market size

Hardware

Software

20.3%

23.4%

Increasing adoption of retail analytics and usage of mobile applications is driving the retail software growth

Beacons

RFID tags

25.3%

22.2%

Sensors

Wearables

18.1%

20.2%

CAGR 21.5%

Source: Report on “IoT in retail market analysis and segment forecasts to 2025” by Grand Review Research

RETAIL IoT MARKET SIZE (2017-2025) (USD BN) MARKET SIZE BY REGION

CAGR BY SOLUTION CAGR BY TECHNOLOGY KEY PLAYERS


43

23 %

25 %

25 %

28 %

- 5 10 15 20 25 30

Premises monitoring

Customer Monitoring

Supply Chain Monitoring

Product Monitoring

%

COMPANY/ STORE IoT RETAIL APPLICATION

Hugo BossHeat sensors in clothing section to trace customer movements which enables the placement of premium products in high-traffic areas.

Hudson’s Bay

▪ Apple’s iBeacon technology for delivering customizedpromotions to customers

▪ Robotic distribution system that can locate and ship an item in 15 minutes, 10x faster than a human

Walmart

▪ Self-driving shopping carts, which utilize sensors to send data to a central computer for inventory tracking and assisting customers with required product

▪ Weather tracking on a regular basis and comparing it to historical grocery sales data to identify patterns. For instance, 80-degree temperatures are in line with high sales of salad ingredients

Kroger Temperature sensors to keep frozen food from spoiling

Coop Italia Kinect sensors to detect and interact with shoppers to collect and analyze shopper data

Casino NFC tags on products in shelves so that user can view product info on their smartphones and add the product in their mobile app’s basket

COMPANY/ STORE IoT RETAIL APPLICATION

Whole Foods 365 stores

Digital price tags that allow the retailers to change prices in real time based on the product demand and other trends

RetailNext

▪ Solution Traffic 2.0 which tells duration of shopper’s visit, path taken, displays engaged with, items purchased, whether a new/ repeat customer, frequency of store visits, etc.

▪ Automatically excludes store staff from traffic counting

▪ Integrates workforce management with traffic counting data to optimize staff operations

Target IoT robots for assisting in stocking shelves and taking inventory

Source: Report on “Internet of Things IoT In Retail Market Analysis And Segment Forecast To 2025” by Grand Review Research

IoT SPEND BY BUSINESS AREA, 2017


45

PRIMARY TYPES OF DEALS IN IoT SPACE

Stack Mobility

Vertical integration (moving up / down the

IoT stack)

Consolidation

Horizontal integration(scaling existing products

or services into new verticals or customer

segments)

PE/VC

VCs/PEs as well as Corporate Ventures are

investing in IoT

US-based company that designs, develops, and markets mixed-

signal analog intensive integrated circuits

US-based company providing digital media processing solutions

Silicon Laboratories is moving up the stack in the connectivity layer through acquisition of Sigma Designs. The deal will enable Silicon in providing secure, interoperable smart homes and Sigma’s Z-wave (smart homes IoT technology) will add to Silcon’s connectivity portfolio

Deal Value: USD210 Mn

US-based software firm that collects, indexes, and analyses

machine data

company that provides platforms for security

automation and response

Splunk’s machine data platform with Phantom’s SOAR (Security Orchestration, Automation and Response) technology will help Splunk develop analytics-driven security

Deal Value:USD304 Mn

The aim of this series F financing is expected to be used for product development and geographic expansion

Deal Value: USD550 MnUS-based private equity firm Consumer cloud-based IoT

company engaged in health and fitness

Source: Report on “IoT Driven M&A” by FTI Consulting, Industry Research

46

Laye

rs in

IoT

Stac

k

Applicationsand services

Data

Platforms

Connectivity

Firmware

Components

KeyAcquirer

Source: IoT Deals Merger Market for time period - 01/01/2005 – 15/05/2019, Report on “IoT Driven M&A” by FTI Consulting

https://index.co/company/netspeed-systems

https://index.co/company/netspeed-systems

https://index.co/company/vertexai

https://index.co/company/StreamTechLtd

https://index.co/company/nest

47

IoT IS THIRD ON THE VENTURE CAPITAL CONFIDENCE LEVEL SCALE BY SECTOR, 2015

2.79

3.02

3.29

3.35

3.52

3.53

3.82

3.95

4.05

4.18

0 1 2 3 4 5

Hardware/Semiconductors

Energy technologies

Media/Social networking

Medical devices & Equipment

Robotics

Biopharmaceuticals

Enterprise Software

Internet of Things

Mobile

Cloud Computing/ Saas

TOP VENTURE CAPITAL FIRMS AND THEIR INVESTMENTS IN IoT COMPANIES

Global venture capital confidence level based on a survey conducted jointly by Deloitte andNational Venture Capital Association (NVCA) among 166 venture capital investors from May to June2015 representing 10 associations throughout North and South America, Africa, Europe, and AsiaPacific with assets under management ranging from less than 50 million (27%) to over 10 billionU.S. dollars (6%) with the largest concentration being in USD50–USD499 Mn (46%). The confidencelevels were measured on a scale from 1 to 5, where 5 represented the highest level of confidence.They survey covers investor confidence in global investing, fund-raising, IPOs, and governmentpolicy; changing views on the global economy, from a couple of years ago to today and lookingahead; and sectors and sub-sectors that are prime for investment.

OTHER TOP VENTURE CAPITAL FIRMS INVESTING IN IoT TECHNOLOGY

Source: Report on “Silicon Valley Venture Capitalist Confidence Index, Feb 2018” by Pitchbook; Bloomberg Data on “Venture capital confidence level worldwide in 2015, by industry sector” by Statista; 2017 Portfolios, Company websites

48

Corporate Venture

Cisco Investments Intel Capital Google Ventures GE Ventures Qualcomm ventures

Company Portfolios, 2018

80 146 150 47 100

Key Investments

Source: Article on “The Most Active VCs In The Internet Of Things And Their Investments” by CBInsights; Company Portfolios, 2018

50

▪ IoT practice formed in December 2014 as part of Accenture Mobility, which is part of Accenture Digital. Headcount ~5,000▪ Digital business unit focuses on 5 verticals: Connected Transport, Connected Spaces, Connected Operations, Connected Health,

Connected Commerce.▪ Offerings: Connected Platforms as a Service (CPaaS) which is integrated with Accenture Insights Platform (a cloud analytics

solution) and Accenture IoT Device Platform (a Rapid Prototyping device development platform)

▪ IoT Services are organized under its Business Analytics and Strategy Service line via the Digital Operation practice. Formed theIBM IoT independent business unit in March 2015 responsible for providing the platform and ecosystem components (Analytics,Cloud, Watson, and Security) across IBM.

▪ Offerings: Predictive Asset Optimization; Energy Optimization; Emergency Management; Fleet and Asset Management;Connected Home, Vehicle, Building, Patient, Factory ; Supply Chain Analytics; Transparent Supply Chain

▪ Smart Center of Excellence in Madrid dedicated to providing services around IoT; Collaboration center in Texas; Innovation labin Munich. IoT services are part of the general IT service organization. Targets large enterprises in public sector, manufacturingand utilities verticals.

▪ Solutions: eMDM: Smart metering; Fleet.i: Fleet intelligence; Liquitrax: Smart transportation Upstream Oil; allWaste: SmartWaste; allParking: Smart parking; allLight: Smart Lighting; allEyes: Citizen as a sensor; net4Things: connected home services;BRIMOS: bridge monitoring system; Authentication application for google glass; 3D printer monitoring solution

JV in Japan with Mitsubishi IT to provide local IoT services

▪ IoT is viewed as a “composite force” i.e. a combination of Big Data & Analytics , AI& Robotics Services. IoT practice is part of theDigital Enterprise practice.

▪ Solutions: IoT Sensor Data Analytics Framework: For deep analytics with predefined models; GoSafeTM : TCS InsuranceTelematics Solution; dreamUP: A data visualization platform

▪ IoT practice is integrated in the Digital Enterprise Solutions group; IIOT practice through the Product Engineering group▪ 30+ verticalized IoT offerings. e.g., Remote Patient Monitoring, Aircraft health monitoring, Driver/passenger health monitoring,

Track & Trace for Power Tools, Remote Monitoring for Renewable Energy Assets, Fleet Management for Multiple Industries &Vehicles, Telematics solution for Smart Parking, Smart Lights, Smart Bin, Usage Based Insurance

(Partnerships)

(Advisory & Consulting)

(Product Eng. services)

(Data analytics)

(Data analytics)

(Data analytics & forecasts)

(Design eng. &

creativity services )

(Advisory & Consulting, Data Analysis)

(Components)

(Advisory & Consulting, Data Analysis)

IoT offerings Partnerships . Acquisitions


51

▪ IIoT segment started in 2011 to develop innovative internet enabled industrial services. Launched Predix (in 2013-14), aportfolio of web-based software solutions and products, to offer management and optimization solutions.

▪ 700+ IoT services staff, augmented by additional domain capability within each of the business units. Places focus on verticalcompetencies (e.g., energy, power, oil and gas) and within domain specialty areas such as asset performance management, fieldservices management and smart manufacturing

Partner program features a co-innovation model

that includes distributors, ISVs, 1000+ developers

▪ Dedicated sales team for IoT practice.▪ IoT Practice is part of the Infosys Engineering Services, a Horizontal Business Unit.▪ Proprietary technologies are: Information Platform - Big Data Lake and Data Analytics Platform; Location Based services; Billing

Edge Platform; Enterprise Gamification Platform; Proximity Solutions Application Platform; Cooler Monitoring Platform; AssetMaintenance Solution; IoT Mediation Layer

▪ Two dedicated IoT Practices sharing the same IoT platform: One delivers consulting and System Integration and the otherprovides IoT capacity as a BPO offering via Worldline. Head count of ~1,000 (plus an additional 3,500 from analytics.)

▪ Worldline’s solutions include Connected Living Enabler: a dedicated IoT platform; WL Connected Vehicle: Fleet Management,In-Vehicle Infotainment, Usage Base Insurance, Vehicle Relationship Management; WL Connected Home: Home AppliancesMonitoring & Control and Remote diagnostics, Inter-Objects scenarios for Smart Home & Smart Energy, WL ConnectedInfrastructure: Stolen Assets retrieval, Monitoring & Control, Remote Diagnostics & Predictive Maintenance for IndustrialMachines, Vending Machines, City Infrastructure systems, etc.

▪ Invested more than Euro 300 million on R&D of 7 themes, IoT being one of them. Is a part of a consortium “Big IoT horizon2020” with Siemens and Bosch for creating “Factories of the Future”

▪ IoT practice operates in a hub and spoke model connecting other emerging technology practices as part of its Digital WorksTechnology group. Headcount is : IoT Strategy ~200, IoT Delivery ~ 2700; additional distributed resources ~ 2000, e.g.,Information Management team Analytics and data scientists, mobile developers, IoT Testing.

▪ Proprietary technologies include APEx: Asset management as-a-service; Foresight: Connects devices that transmit, aggregate,visualize, and analyze data; HealthActivate: Targeted at Life Sciences companies and healthcare providers, for cloud basedpatient engagement; Interactive Exposure Map: geospatial solution targeted to insurers

(Components)

(Components) (Components)

(Data analytics)

(Application & services)

(IoT Platform)

(Data analytics)(Cloud Platform)


(Advisory & Consulting)

IoT offerings Partnerships . AcquisitionsIoT offerings


52

▪ Targets a narrower set of industries with IoT than other service providers. Target industries: automotive, aerospace,telecommunications, oil & gas, retail.

▪ Solutions are Retail Engagement Suite, IoT Big Data Simulator, Horizon (Visualization platform).

▪ Offerings: Semiconductors, sensors, systems solutions for IoT▪ Services around turnkey data ingestion, data sovereignty (physical location and secure sandboxing), application services and

real-time visualization▪ Key verticals: aerospace, automotive, defense, energy, finance, life sciences, railway and telecommunications.

▪ Services: data design, design thinking & architecture, embedded engineering, solution integration, data science.▪ 800+ IoT services staff & multiple IoT R&D labs, called Garages which focus on solution design prototyping and insights through

client collaboration.

▪ IoT services are a part of the Connected services division.▪ Offerings: Atlas: analytical framework for connected car; Health SymMetrics: Cloud based IoT integrated insights platform for

patient care management; Redbend: Over the air software update management for device management, IoT gateway for dataingestion, Marimba: Cloud-based platform form managing enterprise IoT

(Connectivity)

(Sensors)(Firmware)(Firmware)

▪ Services: IoT consulting and advisory services, integration of IoT, pre-built applications for IoT like Wipro Looking Glass, AssureHealth, and Connected Vehicles

▪ Revenues from IoT ~USD65 Mn (CY 2016), with revenue split by activity as follows: IoT consulting services: 30% , IoTimplementation services: 55%, Managed IoT services: 15%.

▪ Digital Manufacturing (DM) service line (launched inH1 2016) focuses on the notion of Industry 4.0, automotive, medicaldevices, industrial automation, retail, energy, utility and aerospace verticals. 30-40% of new products development at theProduct & Engineering Services division are in the IoT technology.

▪ Provides full service offering from the device level through to analytics, and managed IoT services. This includes its digitaltransformation consulting capabilities, digital asset management, manufacturing intelligence, product quality, predictivemaintenance, AR/VR, etc.

(sold later to PTC)

(Partnerships)



(Data analytics)

(Product eng. services)

(Application & services) (Application &

services)

(Application & services) (IoT Platform)

IoT offerings Partnerships . AcquisitionsIoT offerings


55

Date Target Description Acquirer Deal typeDeal Value (USD Mn)

EV(USD Mn)

EV/ REVENUE

EV/ EBITDA

March-18 Marketech InternationalTaiwan-based company providing marketing, integration support for process equipment & materials in the integrated circuit, Flat Panel Display, Light Emitting Diode & optoelectronics industries.

Ennoconn Corporation

M&A 188 330 0.5 10.5

March-18 Secure ThingzUK-based provider of advanced security solutions for embedded systems in the Internet of Things (IoT)

IAR Systems Group

M&A 25 31 62.1* NA

February-18 Xively US-based provider of remote access and collaboration products Google M&A 50 50 16.7 NA

January-18Minxi (Hubei) Internet of

Things Technology

China-based company engaged in development of Internet of things technology and provision of solutions and service, including operation and management of warehousing facilities

Global Logistic Properties

LimitedM&A 10 10 NA NA

January-18 eInfochipsGlobal technology firm that specializes in product engineering and software R&D services for connected devices

Arrow Electronics

M&A NA NA NA NA

December-17 Bruel & Kjaer EMSAustralia-based company that provides environmental monitoring services

Macquarie Capital Advisers

PE/ VC 59 118 0.9 4.8

December-17Cipher Industrial Internet

of ThingsCanada-based cipher Industrial Internet of Things (IIoT) cloud-native software and edge connectivity assets of RtTech Software

Aspen Technology

M&A 12 12 NA NA

November-17 AricentUS-based design and engineering services, primarily serving clients of the communications, semiconductor and software

Altran Technologies

M&A 2,018 2,018 3.5 14.3

October-17 NEO Monitors AS Norway-based suppliers of gas analyzers and dust monitorsNederman

HoldingM&A 50 50 3.6 20.8

September-17 Silver Spring NetworksUS-based listed company engaged in creating, building, deploying networks & solutions enabling IoT for infrastructure.

Itron M&A 826 826 2.7 NA

* Not considered in calculating the average** Deals taken from Merger Markets. For calculating average, only deals with publicly available information were considered from year 2015 till April 2018 with deal size > USD10 Mn

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EV(USD Mn)

EV/ REVENUE

EV/ EBITDA

August-17 CoventorUS-based provider of simulation and modeling solutions for semiconductor process technology, micro-electromechanical systems (MEMS), and the Internet of Things (IoT)

Lam Research Corporation

M&A 138 138 NA NA

August-17 C-Labs CorporationUS-based provider of software to industrial grade solutions for the Internet of Things (IoT)

Trumpf GmbH + Co. KG

M&A 10 15 NA NA

August-17Minshang (Wuhan

Dongxihu) IoT Technology

China-based company engaged in development of Internet of things technology and provision of solutions and service, including operation and management of warehousing facilities

Global Logistic Properties

LimitedM&A 17 18 NA NA

August-17 NumerexUS-based provider of managed enterprise solutions enabling the Internet of Things (IoT)

Sierra Wireless M&A 118 118 1.7 NA

July-17 IQP CorporationJapan-based industrial Internet of things application development firm

General Electric Company

M&A 40 40 NA NA

July-17 SigfoxFrance-based company that provides cellular connectivity for Internet of things and machine-to-machine communications

International Finance

CorporationPE/ VC 17 NA NA NA

December-16 eSmart SystemsNorway-based provider of digital service solutions with advanced analytics, machine learning and IOT

Kongsberg Gruppen

M&A 12 34 7.7 31.5

July-16UBIsys Internet-of-Things

TechnologyChina based anti-intrusion, video monitoring and Internet of Things software developer

Fujian Start Group

M&A 61 67 6.4 32.1

April-16Broadcom (Wireless IoT

business)US-based wireless internet of things business of Broadcom

Cypress Semiconductor

M&A 550 550 2.9 NA

** Deals taken from Merger Markets. For calculating average, only deals with publicly available information were considered from year 2015 till April 2018 with deal size > USD10 Mn

57


EV(USD Mn)

EV/ REVENUE

EV/ EBITDA

February-16 Jasper TechnologiesUS-based provider of cloud-based Internet of Things (IoT) platforms that enable enterprises and mobile operators to launch, manage, and monetize IoT services

Cisco M&A 1,400 1,400 20.0 NA

December-15 NoveroGermany-based company that develops vehicle communication, telematics, and mobile device integration solutions

Laird M&A 70 70 1.2 13.0

August-15 SmartPlay TechnologiesIndia-based design services company with expertise in providing semiconductor, wireless, system design, analog design solutions

Aricent M&A 180 180 NA NA

August-15 365 AgileUK-based IP rich software business with a proprietary Internet of Things offering

Iafyds PE/ VC 13 14 NA NA

September-15SiCon Design Technologies

India-based engineering services company specialized in semiconductor design

Altran Technologies S.A

M&A NA NA NA NA

July-15 #HEREUS-based provider of digital maps and location-based services for automotive and the Internet of Things

BMW, Audi,Daimler

M&A 3,043 3,043 2.9 NA

June-15 DigiCoreSouth Africa-based company that designs, researches, develops, manufactures, sells, and supports GPS/GSM fleet management and vehicle tracking solutions

Inseego M&A 94 94 1.1 10.1

March-15 Feeney WirelessUS-based company engaged in providing M2M products and services for fixed and mobile cellular-based wireless solutions

Inseego M&A 25 25 1.2 NA

March-15Shenzhen DXY

TechnologyChina-based comprehensive radio frequency solution provider for Internet of Things

Wuhan P&S Information Technology

M&A 23 67 0.9 10.5

Average** 4.6 16.4

** Deals taken from Merger Markets. For calculating average, only deals with publicly available information were considered fromyear 2015 till April 2018 with deal size > USD10 Mn

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Company Objective / Challenge Strategy / Solution Benefit derived / forecasted

▪ Very high production lead time▪ No real-time data capture facility▪ Multiple product types cannot

move on a single line

▪ Toyota Operations Availability System (TOAD) - In-house Data Visualization and Predictive Analytics Platform

▪ 32 smart manufacturing systems implemented

▪ USD187 million/ year downtime avoidance gain

▪ 40,000 minutes of saved production time/ plant

partnership with▪ Unplanned downtime costs:

USD15,000–USD40,000 per minute▪ Factory workers often learn about

issues with their production machinery too late, after the line shuts down

▪ GM leveraged Cisco Intercloud Fabric, robotics manufacturer Fanuc ZDT, and hardware maker Rockwell Automation to collect data from robots and send it to a cloud network setup by Cisco for further analysis

▪ Fanuc's Zero Down Time (ZDT) application collects data generated from robots to determine the optimal approach of GM‘s manufacturing systems by reducing energy consumption, extending equipment life, and improving cycle time and product quality.

▪ GM has deployed ZDT in 27 factories in 5 countries, analyzing over 5,000 robots.

▪ ZDT has successfully detected over 45 cases of potential failure across 26 production plants over the past year and saved already customers USD40 Mn.

▪ Wanted to automate their mail sorting system

▪ Needed clarity into operations happening across the globe involving multiple assets working 24/7

▪ Solution provided by Predix involved:‒ Monitoring asset health ‒ Remotely diagnosing technical issues in real time ‒ Helping increase asset utilization ‒ Improving operations via machine resources and job scheduling ‒ Improving SLA attainment via real-time adaptive scheduling

▪ 10% increase in machine yield & efficiency

▪ 20% increase in mail throughput productivity

▪ 15% reduction on parts replacement

▪ Machine stoppages due to feeder jams and other specific faults, triggering the Buzzers

▪ Operator response time increases -increased wastage of time and money

▪ Integrated iPhones and Pebble Watches into assembly lines:▪ Programmable Logic Controller (PLC) communicates to server when a problem

or jam is about to occur▪ Server interprets the signal and sends a SMS to iPhone▪ iPhone relays message to all Pebbles (worn by line operators) via Bluetooth

▪ For every 3 production days, one hour of downtime was eliminated.

▪ This is 122 hours of additional production per year


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▪ transparency of real-time overall equipment effectiveness

▪ reducing production line change over time

▪ reduction in actual labor costs▪ understanding effects of shift

changes and resource shifts from line to line.

▪ deployed Real-Time Location System (RTLS), powered by Cisco’s robust wireless network and AeroScout Industrial’s leading enterprise visibility solutions.

▪ The RTLS includes small and easily deployed WiFi RFID tags that attach to virtually any material and provide real-time location and status to assembly workers, shift supervisors, and plant managers.

▪ 24% increase of overall equipment effectiveness on the router production line

▪ 16% reduction of defects per million opportunities (DPMO)

▪ 92% increased labor utilization from 80%

▪ 10% increase in throughput

▪ Business goal to:▪ identify and prioritize asset

maintenance▪ asset replacement based on risks

related to the current condition ▪ of all electrical assets across their

distribution substations

▪ Kahramaa (company into transmission and distribution system owner and operator for the electricity and water) worked with GE to implement an Asset Performance Management system that could provide:

▪ consistent analytics for all assets▪ recommendations for action based on condition and risk▪ comprehensive, fleet-wide reporting

▪ The number of substation faults have been reduced by more than 50%

▪ Achieved an ROI on the system of 180% after two years of implementation.

▪ Create a digital connected transportation solution to retrofit cold chain trailers with real-time tracking and controls.

▪ Prevent losses due to theft or spoilage.

▪ Provide a trusted multi-fleet solution in a single application with granular data

▪ Real time remote monitoring and history of refrigerated trailer location and status.

▪ Full two-way control turns units on or off in single or batch mode, changes set points and modes, and performs diagnostics.

▪ Geofence programmable remote locking security ensures trailer doors remain locked beyond controlled areas.

▪ Analytics applied to operational data and shared through entire organization.

▪ Just-in-time route planning due to efficient pre-cool enables flexible delivery routes to take advantage of most recent conditions and market needs

▪ Arrival time notifications ensure load/unload teams are ready and reduce time required to get trucks back on the road.


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▪ System and equipment problems require service technicians to diagnose and resolve issues at the hospital site, resulting in higher costs and lost patient treatment time (1 day’s lost treatment time = 35 patients missing their treatments)

▪ Varian (manufacturer of integrated cancer therapy systems) implemented PTCAxeda software:

▪ Varian directly and securely connects to their customers’ systems when support is required, providing quick and accurate problem resolution

▪ Provides remote desktop sharing and file-transfer capabilities that allows support engineers to pinpoint the exact cause of failure and remotely repair and upgrade the system

▪ provide automatic notification to field service professionals when a monitored system or instrument falls outside of the pre-set parameters

▪ Resolved 200 calls per month remotely through their help desk = 4 hours of travel time saved per call.

▪ An average response time of 4 hours can also be reduced to 2 hours. The estimated savings for a hospital can be more than USD2,000 per event

▪ Problem in warehouses is the lack of visibility into reasons for machine breakdowns or idle time, thereby delay in delivery

▪ Client wanted to implement real-time line monitoring and alert system to gain control

▪ Retrofitting of hardware and custom dashboards to visualize multiple lines and machines

▪ Deployed high quality wireless object detection sensors on case sealers, wrapping machines, and box printers to capture real-time operating pulse

▪ The 24/7 real-time machine data at Datonis Edge helped analyze equipment failure & generate alerts.

▪ The aggregated data was processed at Datonis IoT cloud to analyze production line throughput and offer tailored visualization and business intelligencereports

▪ Real-time visibility into packaging line’s performance (downtime sources, suboptimal processes, slow teams, aging equipment)

▪ Up to 8% performance gain through optimization initiatives driven by actionable insights

▪ better track and manage their large fleet of vehicles by delivering real-time data and providing the ability to track, locate and manage their drivers while out in the field

▪ FleetOutlook, a web-based GPS fleet and asset management solution was deployed. LMU-2600, an in-vehicle GPS hardware device was installed in all 51 of Davenport Energy's fleet vehicles. The devices, coupled with FleetOutlook, provided complete visibility of their fleet in real time

▪ Reduced the instances of idle time over 25 minutes by 64% in the first month

▪ reduce excessive idle time by 80% using FleetOutlook in less than three months.

Leading CPG company


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▪ Client Objectives:▪ Early detection of potential failures

and prevent past failures from reoccurring

▪ Increase availability of plant▪ Manage and control CAPEX▪ Reduce insurance cost▪ Condition-based maintenance

▪ With GE’s asset management solution, SSE created an Equipment Performance Center (EPC) to continuously monitor asset health for over 11 different locations.

▪ The system tracks factors such as combustion dynamics, turbine vibration analysis, boiler temperatures, creep analysis and safety case management.

▪ Predictive analytics drive model-based condition monitoring, allowing SSE to understand pending issues before they become production problems, allowing proactive action to avoid unplanned outages.

▪ Significant reduction in the number of plant failures

▪ Early failure detection resulted in savings of approximately £3MM per year.

▪ Overall insurance costs reduced (£7.5MM per year) with improved maintenance.

▪ Suez (waste management & water treatment company) wanted access to real-time data that would enable it to deploy resources where they were needed and wanted to change its existing manual system of waste collection and data entry.

▪ EY helped SUEZ to change its operating model, proposed investment in a newly created command center for all of its waste management operations –connecting waste bins, containers and trucks.

▪ Every connected truck was now fully monitored by the command center, which provided the optimal route for each driver in real-time.

▪ RFID tags on each bin could now provide the exact weight and location of each unit

▪ optimize the fleet, which meant reducing the fleet from 45 to 40 trucks

▪ operational efficiencies were realized, customer complaints and contractual penalties reduced.

▪ maintaining maximum safety for its workers during mining operations

▪ improve the efficiency of its operations, extend the life of its assets, and cost control

▪ Goldcorp deployed a Cisco Connected Mining solution▪ management of communication and mining operations in one multiservice,

secure IP network which can withstand harsh conditions▪ real-time visibility, monitoring, and ventilation control▪ Also, AeroScout's RFID solution enables live tracking of people and assets in

the mine.

▪ Ventilation on demand reduces energy costs between USD1.5 and USD2.5 Mn per year

▪ Improved tracking locates employees in the event of an emergency 45 to 50 minutes faster than before


64

Term Used Brief Meaning

3GPP3rd Generation Partnership Project is a collaboration between groups of telecommunications standards associations, known as the Organizational Partners. The objective of this body is to standardize and license wireless communication technologies.

API Application program interface (API) is a set of routines, protocols, and tools for building software applications. Basically, an API specifies how software components should interact.

Beacons battery-powered devices utilizing the Bluetooth Low Energy (BLE) technology. These devices are used to send messages to the customers using smartphones and tablets within a range of 300 feet.

BluetoothBluetooth is a standard for the short-range wireless interconnection of mobile phones, computers, and other electronic devices. Bluetooth uses frequency of 2.4GHz, range of up to 100m and data rates of unto 10 mbps

BPaaSBusiness process as a service (BPaaS) is a term for a cloud hosting service that benefits an enterprise by assisting with business objectives. It implies that the business process is being automated through a remote delivery model.

Cellular Network Cellular networks refers to the mobile wireless network systems and includes 2G, 3G and 4G connectivity standards.

Edge DeviceAn edge device is a type of networking device that connects an internal local area network (LAN) with an external wide area network (WAN) or the Internet. In the context of IoT, edge devices encompass a much broader range of device types and functions. These may include sensors, actuators and other endpoints, as well as IoT gateways.

ERPEnterprise resource planning (ERP) is a process by which a company (often a manufacturer) manages and integrates the important parts of its business. An ERP management information system integrates areas such as planning, purchasing, inventory, sales, marketing, finance and human resources.

Firmware Firmware is programming that's written to a hardware device's nonvolatile memory. It is used to run user programs on the device and can be thought of as the software that allows hardware to run.

IaaSInfrastructure as a service (IaaS) is a form of cloud computing that provides virtualized computing resources over the internet. IaaS provides the client with the ability to provision storage capacity, network, data centers, and other fundamental software essential to run a software

IPInternet Protocol (IP) is the method or protocol by which data is sent from one computer to another on the Internet. Each computer (known as a host) on the Internet has at least one IP address that uniquely

identifies it from all other computers on the Internet. Internet Protocol Version 4 (IPv4) is the fourth revision of the Internet Protocol and uses 32-bit addresses thus allowing 2^32=4.3 billion IP addresses. Internet Protocol Version ^ (IPv6) is the enhanced version of IPv4 and uses 128-bit addresses thus allowing 2^128 = over 340 trillion, trillion, trillion IP addresses.

ISMindustrial, scientific and medical (ISM) radio bands are radio bands (portions of the radio spectrum) reserved internationally for the use of radio frequency (RF) energy for industrial, scientific and medical purposes other than telecommunications.

LoRALoRaWAN specification is a Low Power, Wide Area (LPWA) networking protocol designed to wirelessly connect battery operated ‘things’ to the internet. LoRaWAN rates range from 0.3 kbps to 50 kbps and has a range of 2-5km.

LPWALow Power Wide Area Network is a type of wireless telecommunication wide area network designed to allow long range communications at a low bit rate among things (connected objects), such as sensors operated on a battery

LTE Long-Term Evolution (LTE) is a standard for high-speed wireless communication for mobile devices and data terminals. The standard is developed by the 3GPP.

LTE-M Long Term Evolution Machine Type Communications Category M1 (LTE-M/ Cat-M1/Cat-M) is a LPWA technology standardised by 3GPP.

MANMetropolitan Area Network (MAN) is a computer network that interconnects users with computer resources in a geographic area or region larger than that covered by even a large local area network (LAN) but smaller than the area covered by a wide area network (WAN). It comprises a range of medium-range technologies including power line and community Wi-Fi.

65

Term Used Brief Meaning

Middleware Middleware is a software layer situated between applications and operating systems. It connects network-based requests generated by a client to the back-end data the client is requesting.

NB-IoT Narrow Band IoT (also called Cat-M2) is a LPWA technology standardised by 3GPP.

NFC TagA near field communication tag (NFC tag) is a sticker or wristband with small microchips that can be read by in range mobile devices. Information is stored in these microchips. A NFC tag has the ability to send data to other mobile phones with NFC capabilities

Onramp Onramp (Now Ingenu) has developed Random Phase Multiple Access (RPMA) technology for connectivity in an IoT ecosystem. It uses free 2.4 GHz ISM bands

PaaSPlatform as a service (PaaS) providers supply the clients with the necessary platform to run / test their applications along the essential infrastructure; the client doesn’t have any control over the infrastructure supporting the platform environment

ProtocolA protocol is a set of rules and guidelines for communicating data. Rules are defined for each step and process during communication between two or more computers. Networks have to follow these rules to successfully transmit data.

RFID TagsRadio Frequency Identification (RFID) is a form of wireless communication. Retailers use RFID tags for identification of objects and apparels. They can be either active or passive devices. Active RFID tags are battery-powered using a small onboard battery and are expensive than passive RFID tags.

NFCNear field communication (NFC) is a wireless technology that allows a device to collect and interpret data from another closely located NFC device or tag.NFC employs inductive-coupling technology, in which power and data are shared through coupled inductive circuits over a very close proximity of a few centimeters. NFC is often employed through mobile phones or credit cards, where information may be read if it is passed very close to another such device or NFC tag.

SaaSSoftware as a service is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as "on-demand software". SaaS is typically accessed by users using a thin client via a web browser.

SDKSoftware Development Kit (SDK) is a set of software development tools that allows the creation of applications for a certain software package, software framework, hardware platform, computer system, video game console, operating system, or similar development platform.

SigfoxSigfox uses a technology called Ultra Narrow Band (UNB) and is only designed to handle low data-transfer speeds of 10 to 100 bits per second. It consumes only 50 microwatts compared to 5000 microwatts for cellular communication

UBI Usage-based insurance (UBI) is a type of vehicle insurance whereby the costs are dependent upon type of vehicle used, measured against time, distance, behavior and place.

WANWide Area Network (WAN) is a computer network in which the computers connected may be far apart, generally having a radius of more than 1 km. Wide-Area Fixed Network is any fixed line connection including public switched telephone network (PSTN), Integrated Services Digital Network (ISDN), cable, Digital Line Subscriber (DSL) and fiber

WiFiWi-Fi is a facility allowing computers, smartphones, or other devices to connect to the Internet or communicate with one another wirelessly within a particular area. WiFi standard used in homes and many businesses offers serious throughput in the range of hundreds of megabit per second and range is up to 100m, which is fine for file transfers, but may be too power-consuming for many IoT applications.

ZigBee ZigBeehas a wireless communication protocol has a large installed base of operation, traditionally more in industrial settings. It has a frequency of 2.4GHz, range of 10-100m and data rates of 100kbps

ZwaveZ-Wave is a low-power RF communications technology that is primarily designed for home automation for products such as lamp controllers and sensors. Z-Wave uses a simpler protocol than some others, which can enable faster and simpler development, but the only maker of chips is Sigma Designs compared to multiple sources for other wireless technologies. ZWave uses frequency of 900MHz, range of up to 50m and data rates of up to 100kbps

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