Frost & Sullivan Webinar:Top M2M Predictions for ICT March 2013

Top M2M Predictions for ICTTop M2M Predictions for ICT

How to Make 2013 a How to Make 2013 a GameGame--Changing YearChanging Year

Yiru Zhong, Analyst

ICTICT

March 2013

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Today’s Presenter

Yiru Zhong, Analyst

Frost & Sullivan

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Yiru Zhong (@YiruAtWork) is an analyst with Frost & Sullivan’s

Information & Communications Technologies Practice where she focuses

on communications infrastructure and services. In recent years, her

research interests are in the evolution of IT and communications around

#SmartCommunities, #M2M, #IoT and #SmartEnergy discussions.

Focus Points

• M2M Market Development in Europe in 2012

• Frost & Sullivan’s view on M2M in Smart Communities

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• Market Constraints in 2012

• Top Predictions for M2M in Europe in 2013

M2M Market Development in Europe in 2012

Positive

√ More mobile network operators

have entered the M2M connectivity

market in 2012. MVNOs have also

investigated this opportunity

√ Continued market development in

well defined M2M applications E.g.

Negative

X Slow market development in pushing

beyond M2M connectivity

X Slow customer development in

creating awareness on the depth of

M2M benefits

X Limited progress in M2M

applications in other sectors such as

industrial automation, retail or

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Source: Frost & Sullivan analysis.

well defined M2M applications E.g.

automotives, energy , consumer

electronics in e-books, security

√ Wider route to market options that

will open up the addressable

market for M2M operators E.g.

small and medium enterprises

√ Continued portfolio development

industrial automation, retail or

healthcare

X Limited progress in reducing barriers

to entry E.g. further standardisation in

connected machines/objects, M2M

connectivity roaming

X Limited revenue contribution in 2012

Frost & Sullivan’s M2M Vision within Smart Communities

Smart Community Service Platform

Healthcare

Transport

Education

Public Safety

Culture

Utilities

Housing

Smart Services to Citizens

Public Admin.

DemocraticEngagement

Environment

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Source: Frost & Sullivan analysis.

MobilityCloud Computing and

Software

Connectivity

Big Data

Smart Community Service Platform

Digital Identity

and Security

Market Inhibitors in 2012

Key Market Highlights

M2M

interoperability

remains an

obstacle

Customer

Devices and

machines

standardisation

remains

unresolvedContinued

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Customer

awareness on M2M

benefits on business

Lack of visibility

to required

investments

Source: Frost & Sullivan analysis.

Continued

project

customisation

required

Top Predictions for M2M in Europe in 2013

2 Presence of M2M capacity providers to accelerate market innovation

Widening capability and revenue gap between End-to-End providers and niche

1 Emergence of new business driven verticals

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3Widening capability and revenue gap between End-to-End providers and niche

speciality players

Source: Frost & Sullivan analysis

4 Big year for M&A: consolidation across the value chain to accelerate in 2013

5M2M technologies to rely on cloud computing as a way to overcome ROI

questions

Top Predictions for M2M in Europe in 2013

7 Use of machine data to remain low in 2013

Growing importance of application enabled platforms – IT and Communications

6 M2M modules to become more intelligent in 2013

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8Growing importance of application enabled platforms – IT and Communications

convergence

Source: Frost & Sullivan analysis

9Leveraging Smart Cities Momentum: 2013 is the year of applications; for EVs,

public transport policies, smart homes/buildings, and mobility

10 M2M SIMs Market Forecast in Europe: 2011 – 2016 CAGR 58.2%

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For Additional Information

Yiru Zhong

Analyst

ICT

+44 207 915 7822

yiru.zhong@frost.com

Joanna Lewandowska

Corporate Communications

ICT

+48 22 390 41 46

joanna.lewandowska@frost.com

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Cyril Cromier

Vice President, Sales

ICT

+33 1 4281 2244

cyril.cromier@Frost.com

Adrian Drozd

Research Director

ICT

+44 1865 398 699

adrian.drozd@frost.com