IoT market in 2015

Taken from www.machinetomachinemagazine.com article

IDC: Worldwide IoT Market to Grow 19% in 2015
M2M MAGAZINE+ | May 19, 2015

Spending projections include 25 use cases to provide insight on immediate opportunities for IoT technologies

The worldwide Internet of Things (IoT) market is expected to grow 19% in 2015, led by digital signage, according to a new forecast from International Data Corporation (IDC). The second annual forecast focuses on growing IoT use in 11 vertical industries, including consumer, retail, healthcare, government, manufacturing, transportation, and other industries, while also sizing IoT opportunities for 25 vertical-specific use cases.

Unlike any other research in the industry, the new forecast specifically highlights worldwide spending across IoT use cases, including smart appliances, automated public transit, remote health monitoring, digital signage, connected vehicles, and air traffic monitoring, among others. The comprehensive spending model was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.

Other key findings from the new forecast include:

• The IoT market in manufacturing operations will grow from $42.2 billion in 2013 to $98.8 billion in 2018, a five-year compound annual growth rate (CAGR) of 18.6%. Growth will be driven by ongoing efforts to increase efficiency and link islands of automation.
• Digital signage use in retail outlets will grow from $6.0 billion in 2013 to $27.5 billion in 2018, a 35.7% five-year CAGR, as retailers continue to digitize the consumer experience.
• The hottest US market is in connected vehicles, with 34.8% year-over-year growth anticipated in 2015.

According to Bob Kraus, Senior Research Analyst, Global Technology and Industry Research Organization, IDC, “Working in concert with both IDC’s technology and regional analysts, we have built IoT market models for key vertical-specific use cases from the ground up. This forecast is an invaluable tool for those business leaders evaluating the vendor opportunities in IoT for a 12-layer technology stack, which includes modules/sensors, software, installation/ongoing services, and connectivity.”

A forecast update is planned for November 2015 and will evaluate additional vertical-specific use cases, including smart agriculture.



IoT Analytics Market to Reach $5.7 Billion in 2015
M2M MAGAZINE+ | January 14, 2015

A market analysis by ABI Research finds that the revenues from integrating, storing, analyzing, and presenting Internet of Things (IoT) data will reach US$5.7 billion in 2015. In the next 5 years, the market will expand dramatically, to an extent that in 2020 it is estimated to account for nearly one-third of all big data and analytics revenues.

Principal analyst Aapo Markkanen says, “About 60% of this year’s revenues come from three key areas: energy management, security management, as well as monitoring and status applications. Within these segments, we can generally find analytic applications that reduce the cost base of asset-intensive operations (condition-based maintenance), automate routine workflows (surveillance), or even enable new business models (usage-based insurance). These early growth drivers also have in common the fact that the economics of IoT connectivity align easily enough with the requirements of analytic modelling.”

Making sense of IoT-kind data from machines and sensors data comes often with its unique challenges, such as the need for time-series databases in storage, and for relatively deep domain expertise in analysis. These kinds of factors create a certain mismatch with many leading technologies that have been designed for more traditional, “digital-first” analytic environments. This, in turn, is attracting a flurry of startup-level activity aimed at filling the gaps.

According to practice director Dan Shey, “What is remarkable about this market is how much of the innovation actually comes from startups. Take, for instance, ParStream’s geo-distributed architecture, CyberLightning’s 3D visualization technology, or Peaxy’s work on software-defined data access. All three address some of the problems that usually come up in discussions with end-users. Meanwhile, of the more incumbent vendors likes of Datawatch, Informatica, Software AG, and Splunk seem well-positioned to seize the IoT opportunity.”

Top 10 Predictions for IoT and M2M in 2015
M2M MAGAZINE+ | January 2, 2015

Every year Machina Research makes a set of predictions for what will happen in the world of IoT/M2M. Here are Machina Researh’s Top 10 Predictions for IoT and M2M in 2015:

1. Enterprises will get cracking in IoT. We will see a lot more commercial deployments of enterprise IoT. There’s a huge amount more interest from a diverse range of enterprises. Until now it’s been exploratory. In 2015 it becomes meaningful. 
2. More productized offerings. There will be many more platforms and solutions enabling out-of-the-box connected devices. This area has been somewhat overlooked up until now, with everybody focusing on industrial/ application type platforms. Just enabling lots of ‘same’ devices to communicate may be less glamorous, but the numbers involved are huge.
3. More M&A. During 2014 we’ve seen a lot of interesting M&A, not least PTC acquiring Axeda, in addition to ThingWorx, as well as recent deals that saw Kore buy RACO Wireless, and Sierra Wireless buy Maingate. 2015 should see more of the same, particularly involving two types of companies. Data analytics providers will be increasingly appealing as companies seek to broaden their service offerings to include analytics capabilities. Meanwhile full service providers such as Numerex, Aeris Communications and Raco/Kore will become increasingly attractive acquisition targets. As the primary full-service M2M solution providers in the space, these mid-tier companies provide a crucial service path to enterprises looking to build and design IoT and M2M projects. 2015 will be the year of consolidation for these agile companies.
4. Breakthroughs in smart city service deployments. 2015 will be the year when we’ll see some real commercial success stories in smart cities, especially from services that save money. Street lighting is a good example because electricity consumption is a major part of the OPEX for the city. Machina Research’s new Smart Cities Research Stream delves into this area in much more detail.
5. Major OS vendors disrupt the connected car market. 2015 will be the year that one of the major OS players makes a disruptive intervention in the connected car market through an innovative after-market device and platform play. There are a number of interesting start-ups in this area with OBD-based propositions that are sound but sub-scale. Several look ripe for acquisition or emulation by the big boys.
6. Mobile phone as the gateway for IoT. Machina Research had already highlighted the possibility back in the beginning of 2014 that the smartphone would be integral to IoT, when for example looking at iBeacons and wearables. What will become even more interesting is when data analytics uses the mobile phone as one of many processing platforms for geo-distributed analytics (which it will be able to, given the processors and memory).
7. A year for avatars. This will be a very good year for avatars – digital representations of things that are open to standards-based Web APIs, thereby obviating the need for app developers to engage with connectivity protocols. Machina Research published a Research Note on one such firm, Evrythng, last year.
8. A crunch on regulation. Machina Research launched a service looking specifically at M2M & IoT Regulation in 2014 and it’s a critical area in 2015. Regulators are set to focus much more attention on M2M and IoT. This is both good and bad. There is a quicksand of regulatory uncertainty threatening to hold back M2M deployments, in particular around permanent roaming. We’ll also see more regulators wanting to adopt a nurturing approach to IoT. Machina Research will host a webinar on M2M and IoT Regulation on 20th January.
9. Segmenting for success and identifying role in IoT. It’s a function of the maturity of the sector that companies throughout the M2M and IoT value chain will increasingly realise that they can’t sell everything to everyone. Everyone selling into this sector will become more discriminating. This means all players will need to better define their role in the Internet of Things.
10. Privacy and security. Issues of privacy and security reach the top of the agenda. The complexity of IoT solutions will require a fresh way of thinking about security. Requirements will vary massively depending on the application, while the number of moving parts in any solution mean that there are a lot of potential weak links. Security will need to be considered on an end-to-end basis. Furthermore M2M and, particularly, IoT involve the widespread sharing of data. Understanding the dynamic and implications of all of that data sharing will be critical.

IDC Report: Worldwide IoT Predictions for 2015
M2M MAGAZINE+ | December 4, 2014

Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending

The predictions from the IDC FutureScape for Internet of Things are:

• IoT and the Cloud. Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending”.
• IoT and security. Within two years, 90% of all IT networks will have an IoT-based security breach, although many will be considered “inconveniences.” Chief Information Security Officers (CISOs) will be forced to adopt new IoT policies.
• IoT at the edge. By 2018, 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the network.
• IoT and network capacity. Within three years, 50% of IT networks will transition from having excess capacity to handle the additional IoT devices to being network constrained with nearly 10% of sites being overwhelmed.
• IoT and non-traditional infrastructure. By 2017, 90% of datacenter and enterprise systems management will rapidly adopt new business models to manage non-traditional infrastructure and BYOD device categories.
• IoT and vertical diversification. Today, over 50% of IoT activity is centered in manufacturing, transportation, smart city, and consumer applications, but within five years all industries will have rolled out IoT initiatives.
• IoT and the Smart City. Competing to build innovative and sustainable smart cities, local government will represent more than 25% of all government external spending to deploy, manage, and realize the business value of the IoT by 2018.
• IoT and embedded systems. By 2018, 60% of IT solutions originally developed as proprietary, closed-industry solutions will become open-sourced allowing a rush of vertical-driven IoT markets to form.
• IoT and wearables. Within five years, 40% of wearables will have evolved into a viable consumer mass market alternative to smartphones.
• IoT and millennials. By 2018, 16% of the population will be Millennials and will be accelerating IoT adoption due to their reality of living in a connected world.

“The Internet of Things will give IT managers a lot to think about,” said Vernon Turner, Senior Vice President of Research. “Enterprises will have to address every IT discipline to effectively balance the deluge of data from devices that are to the corporate network. In addition, IoT will drive tough organizational structure changes in companies to allow innovation to be transparent to everyone, while creating new competitive business models and products.”