IoT Industry

Definition

The interconnection via

the Internet of computing
devices embedded in
everyday objects,
enabling them to send
and receive data.

JUNE 22

TRACXN
Authored by: Shrinivas Sharma

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Problem Statement

You are the Head of Sector Specialist Department of a company providing research services. Your team
is responsible for building Industry Landscapes which help clients by providing a visual representation
of different markets (investible spaces) in an industry. In this assignment, you are required to build an
Industry Landscape of the “Internet of Things (IoT)” Industry "IoT” or "Internet of Things" is a network
- in which physical devices connect with the internet and can exchange data over cloud. Popular use
cases of IoT include Self Driving Cars, Asset Tracking, Fitness bands etc. Notable companies which
make such devices possible include Sigfox, Ligado etc.

Industry Landscape

The Internet of Things (IoT) is a network of things which are connected to the Internet. These things
include IoT devices and IoT-enabled physical assets. They range from consumer devices such as smart
home solutions or pet trackers to sensor-equipped connected livestock and crop, industrial assets such
as machines, robots, oil and gas facilities or even workers.

IoT is an umbrella term with many use cases, technologies, standards and applications. Moreover, it’s
part of a bigger reality with even more technologies. The things and data are the starting point and
essence of what IoT enables and means. IoT devices and assets are equipped with electronics, such as
sensors and actuators, connectivity/communication electronics and software to capture, filter and
exchange data about themselves, their state and their environment.

The connection of IoT ‘things’ and usage of IoT data enables various improvements and innovations in
the lives of consumers, in business, healthcare, mobility, cities and society. The potential goals of IoT
are often segmented into IoT use cases: reasons for which IoT is deployed. Examples: health monitoring,
asset tracking, environmental monitoring, predictive maintenance and home automation.

There are hundreds of IoT use cases, depending on the industry and/or type of application. Some IoT
use cases exist across industries, others are more vertical. An example: asset tracking is a universal use
case. It could be a consumer application to know where your pet or skateboard is. But it could also mean
tracking containers on a huge cargo ship. Same basic principle, a world of difference regarding
technologies and context.

IoT is an essential driver for customer-facing innovation, data-driven optimization and automation,
digital transformation, R&D and entirely new applications, business models and revenue streams across
all sectors.

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Major Independent Markets

The Internet of Things converges industries and business areas, uniting Information Technology and
Operational Technology (IT and OT) and contributing to industrial transformation(Industry 4.0) and a
wave of use cases in what is called the Industrial IoT and is the largest segment of IoT applications and
investments. The main areas of Internet of Things investments (industries and use cases) include
manufacturing operations, transportation, smart grid technologies, smart buildings and, increasingly,
consumer Internet of Things and smart home automation

Technology markets: Across hardware, software, services and connectivity categories; 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/Content services; Connectivity

Scope include: Connected vehicles, health & wellness, autonomic operations, insurance telematics,
personal wellness, remote health monitoring, smart buildings, smart lighting, environmental monitoring
and detection

Industries: Banking, construction, consumer, discrete manufacturing, education, federal/central

government, healthcare provider, insurance, media, personal and consumer services, professional
services, process manufacturing, resource industries, retail, securities and investments, state/local
government, telecommunications, transportation, and wholesale

Basically, below are the core area where we have seen market for IoT:

1. Smart City: Which include Traffic Management, utilities, Lighting, Environment, Public Safety,
Electric Vehicle, Others

2. Smart Industry: This segment covers a wide range of connected “things” both inside and outside the
factory

3. Smart Building: This segment includes facility-automation to reduce overall energy costs
(Heating/cooling etc.) building security and other building automation solutions.

4. Smart Cars (Automated): This segment includes vehicle diagnostics, fleet management solutions,
and other automation of the cat by connecting that to 5G network.

5. Smart Energy: Among the many typical use cases in utility firms: smart meters to improve efficiency
in energy, from a household perspective (savings, better monitoring etc.) and a utility company
perspective (billing, better processes and of course also dealing with natural resources in a more
efficient way as they are not endless) and smart grids (which is about more than the Internet of Things).

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6. Smart supply chain: IoT connectivity brings you data. Data can be turned into information. Good
information can make any supply chain run better. Within a single supply chain process, it can improve
efficiency. End-to-end information across processes can take optimization to a new level altogether.

7. Smart agriculture: Smart farming is a capital-intensive and hi-tech system of growing food cleanly
and sustainable for the masses. It is the application of modern ICT (Information and Communication
Technologies) into agriculture.

8. Smart retail: The use of the Internet of Things in retail, among others, changes customer experience,
leads to better customer insights, enables new collaborations and business models and further blurs the
line between digital and physical in an in-store context.

9. Other (Rest of the IoT Industry): Other industries include healthcare, transportation (where “smart
devices” and sensors have existed for quite some time), logistics, agriculture and more are potent drivers
for IoT.

10. Other notable Areas

 Low-power (LPWAN) connectivity technology coming up quickly.
 IoT Projects are related to cost reduction.
 Other areas like climate change i.e. monitoring of weather

What It Means For Your Business?

IoT impacts every business. Mobile and the Internet of Things will change the types of devices that
connect into a company’s systems. These newly connected devices will produce new types of data. The
Internet of Things will help a business gain efficiencies, harness intelligence from a wide range of
equipment, improve operations and increase customer satisfaction. IoT will also have a profound impact
on people’s lives. It will improve public safety, transportation and healthcare with better information and
faster communications of this information. While there are many ways that the Internet of Things could
impact society and business, there are at least three major benefits of IOT that will impact every business.

The Three Cs of IoT

 Communication.
 Control and Automation
 Cost savings

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Grouping of similar companies

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Summary
Internet of Things is gaining in momentum and the expected growth is paramount both in terms of
number of connected devices but also regarding the size of the potential business. The complexity for
companies approaching this area is high, and several decisions have to be made regarding technology
choice, standardization alternatives, business models and IPR/Patent strategy.

The main benefit of the Internet of Things is the capability to leverage data and turn them into actions
and insights in previously unseen ways. To do so, the Internet of Things works in an ecosystem of several
technologies and partnerships. And that is where the real value of IoT starts.

Market Outlook for IoT

New Business
The traditional mobile industry is in “wait stage” between 4G and the in 2020 expected 5G technology.
This doesn't mean that there aren't any innovation or market changes, but rather that no paramount
changes are expected as we have seen in the transition from e.g. 2G to 3G, etc.

IoT not only introduces billions of new potential connections in addition to the 7bn people on earth, it
also opens the door for new potential revenue models and technical solutions.

Horizontal competition (competition outside core business)

When actors like Google acquire Nest (Thermostat Company) and power companies like EoN are
introducing new services in the home surveillance area for free or introduce new business models, you
really must assess your competition and realize that your competitors may not come from your own
“business”. And it may not even be based on the same business model. Competition may rather come
from a player outside your conventional business. This may be unforeseen and unpredictable and even
worse, it may totally jeopardize your business. Your competitor may give away assets for free that you
plan to sell and create your turnover/profit with. An insurance company that gives away home security
equipment or car safety devices to decrease insurance costs have a totally different business model than
the ones trying to capitalize on hardware or a limited service offering.

Vertical competition (competition within core business)

In this area probably have an excellent knowledge about your competition, at least the traditional players.
Since more and more of the telecom players will come close to your business, at least if you are into the
IoT business, you can expect these players to have IPRs/Patent close to your future business or in the
area of your future business.
It becomes of vital importance that you start to assess the potential IPR threats, but also that you pro-
actively start to drive an own IPR strategy in order to have the freedom to act in a later stage.