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Internet of Things and Intermachine Communication. Situation overview in Russia and Worldwide

June 2013

Analytical Report (full version)

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Analytical Report (full version)

Internet of Things and Intermachine Communication. Situation overview in Russia and Worldwide
Internet of Things and Intermachine Communication. Situation overview in Russia and Worldwide
June 2013

Internet of Things and Intermachine Communication. Situation overview in Russia and Worldwide

June 2013

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J’son & Partners Consulting presents summary of the research: «Internet of things and intermachine communication. Situation overview in Russia and worldwide».

 

"Internet of Things" topic (IOT) is widely discussed nowadays. The leading research agencies include this direction on the list of key technology trends in the nearest future, politicians and heads of large technology corporations discuss this topic, a lot of start-ups launching the market with amazing “smart” things.

 

Definition and ecosystem of IOT

One of the most authoritative definitions was given by the strategic research cluster of European research projects on IOT (now - IERC) in 2009:

 

"IOT is part of the Future Internet and can be defined as dynamic global network infrastructure with the ability to self-adjustment on the basis of common standards and comparable communication protocols where physical and virtual items have identifiers, physical attributes and virtual personalities, use intelligent interfaces and are easily integrated into the information network".

 

This definition points out the fact that «smart» things can be identified and has physical characteristics that allow them to feel, powered, interact and communicate. Many everyday objects already include built-in microcontrollers and more and more often include wireless interfaces. With the addition of the network interface people and machines can monitor and manage these objects at a distance via the Internet, controlling and modifying their condition.

 

The most important differences between the "Internet of things" from the existing Internet are:

 

       Focus on the machines not the person;
       Significantly larger number of objects;
       Substantially smaller objects and low speed of data transfer;
       Focus on read out not communication;
       Necessity to build new infrastructure and alternative standards.

 

As a result, the ecosystem of IOT is only formed around innovation: new platforms for the connection of the physical and virtual world technologies, processes, standards.

 

World market of “Internet of Things”

One of the key factors that is the reason for global market of IOT growth is the growing number of connected devices. According to Cisco, in 2008 the number of devices in the Internet exceeded the Earth's population and now everyone on the planet has more than 3 devices connected to the Internet.

 

Definition of the IOT market size is a little a bit tricky, as there are many definitions of IOT, each of which claims to be greater consistency and completeness. The research, conducted by J'son & Partners Consulting, includes market - a collection of oriental markets of the following equipment, technologies and services that provide inter-machine communication:

 

        RFID         Cloud services         SCADA
        Sensors         NFC         Zigbee
        Gateway         CEP         IDS

 

For the purpose of global market forecasting experts J'son & Partners Consulting used the consensus estimates made on the basis of agencies forecasts, such as the GSMA, Harbor Research, ABI Research, etc. Data were analyzed and converted into probable forecast.

 

According to Json & Partners Consulting, the size of global IOT market in 2013 will reach 98 bln.USD and 14,3 bln.devices. In the perspective market volume will increase to 359 bln.USD and 34,2 bln.devices until 2020.

RFID technologies, sensors and NFC-modules own the major share of the world IOT market.

 

 

IOT is presenting in variety of industries, specialized processes, and everyday life. Segmentation by sphere is:

 

        Urban environment and public safety (“smart” cities, connected buildings, “smart” meters for utilities, “smart” transport, geolocation technology, etc.);
        Retail and banking services (RFID, electronic payments devices and systems);
        Power (“smart” power networks, power-saving technologies) ;
        Health care (distance patience and elderly people support);
        Private life (“smart” house, “smart” cars, consumer Telematics) etc.

 

Russian market of “Internet of things”

Market participants are not very enthusiastic while discussing the current state and development of Russian IOT market in comparison with trends in advanced countries. However, in recent years the national market began to form through a number of “pilot” projects that use RFID technology, use of pre installed equipment GPRS/GLONASS for vehicles, construction of smart parking, NFC pilot projects in the Moscow metro and payment terminals, M2M-launch services on the basis of special SIM-cards and devices such as GPS-tracker for different target groups of consumers.

 

According to J’son & Partners Сonsulting forecasts, Russian IOT market will grow to 527 mln.USD to 2015 and to 980 mln.USD in 2020 accordingly. The main drivers will be same as in the rest of the world –RFID technologies, sensor networks and NFC.

 

“Internet of things” market barriers and drivers

 

 Drivers  Barriers
  Rapid development of ICT technologies   Necessity to develop standards
  Fashion trends: smartphones, Tablets PCs and other devices   Slow transition to IPv6 protocol
  Logistic and delivery management   Closed private networks risks
  Improving the safety and convenience of transport   The incompatibility of some components
  The necessity to keep the environment and reduce energy spending   Problems with personal data protection and security
  Development of the scope of control of counterfeiting and theft protection   Relatively high cost of implementation
  Government support and actions of innovators  

 

Practical use in industries, examples

Full version of the report contains the description of dozens devices and examples of its use in Russia and worldwide in such industries as aviation industry and the automotive industry, intelligent buildings and “smart” cities, healthcare and pharmaceuticals, retail and logistics, industrial sector and mining industry as well as agriculture, monitoring of vehicles and safety, energy saving, non-contact system of fast payment, and many others.

 

Below are a few examples of the successful use of IOT technology:

 

“Smart city” technologies are widely implementing in the largest Chinese cities, such as Beijing and Shanghai. With the help of RFID-technology Chinese authorities have begun, for example, the fight against unregistered taxis.

 

The implementation of automated accounting system allowed the power company MIPC receives data from 23 thousand objects in real time. About 50% of sensors are served by mobile technologies M2M, others via fiber-optic network.

 

Sensors attached to the patient's body is continuously read, store and periodically transmit the biometric patient data to the cloud platform such as heart rate, breathing rate, etc. Doctors and medical professionals can view the results remotely from any device with an installed application.

 

Nike sneakers equipped with a sensor (accelerometer), capable of measuring distance, pace walk of the user or run and pass information to the IPhone (or IPod).

 

«Quick payment» by NFC technology from the cell phone was implemented in the retail terminals of UVENCO company for ready packed food products, cold and hot drinks.

 

 

 

 

 

 

Full results of the research are presented in the Report: «Internet of things and intermachine communication: modern technologies, trends, road maps Situation overview in Russia and worldwide» (447 p)

 

The report is aimed for large telecom operators, industrial companies - developers and providers of innovative solutions, government federal and regional authorities, construction companies and housing sector, venture capital and investment funds, and all large enterprises planning to find a modern form of the realization of their goods and services.

 

Content
1. Introduction
2. Description of the research subject
3. Description of the research methodology
4. Resume
5. “Internet of thing” evolution
       5.1. Definition IOT
              5.1.1. Definition of “thing”
              5.1.2. IOT peculiarities
       5.2. IOT development history
       5.3. IOT ecosystem.
       5.4. IOT segmentation
              5.4.1. By components
              5.4.2. By types of connection and modules
              5.4.3. By technologies and platforms
              5.4.4. By spheres of implementation
              5.4.5. By functions
       5.5. IOT technologies and regulators
              5.5.1. IOT technologies
              5.5.2. IOT protocols
              5.5.3. IOT standards
              5.5.4. IOT platforms
              5.5.5. IOT regulators and organizations
              5.5.6. IOT development perspectives
              5.5.7. IOT development drivers
              5.5.8. IOT development barriers
              5.5.9. IOT development perspectives
6. World market of IOT
       6.1. World market condition
       6.2. IOT world market development forecast
       6.3. Competitive market field
              6.3.1. Market segments
              6.3.2. IOT industry use
              6.3.3. Examples of IOT cases
              6.3.4. Company profiles
              6.3.5. International conferences schedule.
       6.4. Conclusions
7. Russian IOT market
       7.1. Condition of IOT Russian market
       7.2. IOT Russian market development forecast
              7.2.1. Drivers and barriers of Russian IOT market development
              7.2.2. Russian IOT market drivers
       7.3. Competitive market field
              7.3.1. Examples of IOT cases
              7.3.2. Level of Russian mobile operators activity
              7.3.3. Company profiles
              7.3.4. Company profiles
              7.3.5. Conferences
       7.4. Conclusions

Annex 1
1. Identification and defining objects systems
       1.1. GS1 EPC
              1.1.1. UID. EPC-codes
              1.1.2. BAR-codes
              1.1.3. QR-codes
              1.1.4. Technology history:
       1.2. ISO RFID OID
       1.3. DOI
       1.4. UCode
2. Collection of data
       2.1. RFID
              2.1.1. By working frequency
       2.2. Wireless sensor networks (WSN)
       2.3. Execution units.
       2.4. UWB
       2.5. Ad-hoc transfer
       2.6. NFC
       2.7. IRDA
3. Networks and date transfer
       3.1. Long-range
              3.1.1. 2.5.G
              3.1.2. 3G
              3.1.3. 4G
              3.1.4. WiMaX
              3.1.5. LTE
              3.1.6. SMS
              3.1.7. MMS
              3.1.8. WMAN
       3.2. Short-range
              3.2.1. WLAN
              3.2.2. xDSL
              3.2.3. ZigBee
              3.2.4. RF4CE
              3.2.5. WiFi
              3.2.6. RuBee
              3.2.7. DECT/CAT-iq 2.0
              3.2.8. Wireless Mbus
       3.3. Satellite
              3.3.1. GPS
              3.3.2. Glonass
       3.4. Wire
              3.4.1. Networks pipe sensor
              3.4.2. USB/Mini USB/ Micro USB
              3.4.3. Power network
              3.4.4. Home PNA. IEEE 1901
              3.4.5. Multimedia over Coax
       3.5. Transfer protocols
              3.5.1. APS
              3.5.2. Ethernet/IP
              3.5.3. UDP
              3.5.4. Bluetooth LE
              3.5.5. Devicenet
              3.5.6. ControlNet
              3.5.7. ANT, ANT+
4. Processing of data
       4.1. Intellectual trafic
       4.2. Cloud calculations
              4.2.1. service support platform
5. Apps and services
       5.1. CEP
       5.2. SCADA

 

List of tables

Table 1. IOT market development forecast, 2010 – 2020
Table 2. Forecast of the Russian IOT market size until 2020 года, Json & Partners on the basis of the consensus
             estimates of the global market and the principle of analogy.
Table 3. Characteristics and attributes of things, grouped by functional areas
Table 4. Levels of "connectivity" of devices and its features
Table 5. One more view on the stages of technological evolution on the way to IOT, Casaleggio Associati, 2011
Table 6. IOT verticals and related technical alternatives
Table 7. Example of competitive IOT ecosystem in USA 
Table 8. IOT segmentation by components
Table 9. IOT segmentation by connections and modules
Table 10. IOT segmentation by technologies and platforms
Table 11. IOT segmentation by standards
Table 12. IOT segmentation by protocols
Table 13. IOT segmentation by functions
Table 14. IOT standards
Table 15. Drivers and barriers of IOT development.
Table 16. Categories of IOT development, McKinsey
Table 17. Countries with the highest penetration of mobile broadband access
Table 18. IOT market development forecast until 2020
Table 19. The volume of IOT world market in money value by technologies, bln. USD, J’son&Partners Consulting.
Table 20. IOT market segments
Table 21. Drivers of IOT and M2M sergment market growth; the estimate of the number of devices in 2016, thousands

 

List of Figures

Fig. 1. The dynamics of population growth in comparison with the number of connected devices, bln.
Fig. 2. The average price of the connected device, USD, 2010 – 2020 
Fig. 3. IOT market volume forecast in Russia, mln.USD
Fig. 4. New dimension ICT - Internet of things
Fig. 5. The architecture system and operating flow of the system of fresh products transportation
Fig. 6. Scheme of IOT evolution via Web-services prism
Fig. 7. Reaction on IOT definition in the corporate sectore
Fig. 8. Geographical diversification of surveyed companies
Fig. 9. Definition of “thing” in the context of inter-related variables
Fig. 10. Variety of "things" in IOT
Fig. 11. Layout of IOT- Pinoccio device
Fig. 12. Size of Pinoccio in comparison with board - analogs earlier versions.
Fig. 13. The scheme of work and layers of physical and virtual sensors
Fig. 14. Example of IOT apps work
Fig. 15. IOT applications architecture
Fig. 16. Human interaction, physical things and applications
Fig. 17. The transition from “one PC” for group of people to “many PCs” for one person
Fig. 18. Networks interconnection in the IOT
Fig. 19. The prospect of additional networks and access to them
Fig. 20. Intercrossing of IOT and other IT definitions
Fig. 21. Human interaction, physical things and applications
Fig. 22. Human interaction, physical things and applications
Fig. 23. Stages of IOT development
Fig. 24. Forecast of the number of connected devices in comparison with the population till 2020.
Fig. 25. IOT Evolution: from closed network to Internet, mobile internet until IOT
Fig. 26. IOT ecosystem kernel and its surrounding
Fig. 27. The structural model of IOT the architecture
Fig. 28. Example of IOT ecosystem kernel
Fig. 29. IOT ecosystems examples of SENSEI project
Fig. 30. Level of personal data security, desired by respondents (n=23 for each service)
Fig. 31. The preferred detailed level of personal information requests, desired by respondents
Fig. 32. The preferred detailed level of personal information requests
Fig. 33. Hyperframe of technology development
Fig. 34. Main milestones in IOT development until 2020
Fig. 35. The ratio of the world's population and the number of connected devices.
Fig. 36. Penetration of Internet dynamics in the developing and developed countries and worldwide, %.
Fig. 37. Dynamics of the number of connected devices in the world by industries, bln.
Fig. 38. Smartphone penetration rate in several countries
Fig. 39. Dynamics of the number of connected devices in the world by type
Fig. 40. The dynamics and forecast of the home devices structure by types, 2010 - 2020
Fig. 41. World IOT market structure by technologies in 2013, bln.USD
Fig. 42. Consensus assessments of the world market in 2010-2013
Fig. 43. The average cost of connected device, USD
Fig. 44. The global forecast for the commercial and consumer M2M connections by industrial sectors in 2020
Fig. 45. Estimation of the current situation of the Russian IOT market, mln.USD
Fig. 46. Estimation of the Russian IOT market size, 2010-2013
Fig. 47. Assessment and forecast of the Russian IOT market size by applying sectors, Json & Partners on the basis of the
           consensus Fig. of the global market and the principle of analogy.
Fig. 48. Russian IOT market forecast development, 2010 – 2020
Fig. 49. IOT market volume forecast in Russia, mln.USD
Fig. 50. Pyramid dependency of RFID price and total volume of its production

 

 

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.

 

 

J’son & Partners Consulting presents summary of the research: «Internet of things and intermachine communication. Situation overview in Russia and worldwide». "Internet of Things" topic (IOT) is widely discussed nowadays. The leading research agencies include this direction on the list of key technology trends in the nearest future, politicians and heads of large technology corporations discuss this topic, a lot of start-ups launching the market with amazing “smart” things.