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The Internet of Things

  • September 2015
  • -
  • BCC Research
  • -
  • 129 pages

This report highlights three verticals in the IoT market, where there is significant traction today. These verticals include the smart home (home automation), industrial smart devices or industrial Internet of things (iIoT) and wearables (smart devices). These verticals are discussed and analyzed in detail, while the segments for the devices and chipsets used for IoT within them are sized and forecast (through 2020) in terms of revenue opportunity.

REPORT HIGHLIGHTS

The global market for Internet of Things (IoT) devices and chipsets reached nearly $4.2 billion in 2014. This market is expected to reach $6.6 billion by 2015 and nearly $49.2 billion by 2020, registering a compound annual growth rate (CAGR) of 49.3% from 2015 to 2020.

This report provides:

- An overview of the global markets for the parts and technologies used to make the Internet of Things (IoT) devices.
- Analyses of global market trends, with data from 2014, estimates for 2015, and CAGRs through 2020.
- Coverage of major industry verticals including home automation, healthcare, industrial automation, smart energy, wearable technology, asset tracking and transportation, and connected vehicles.
- A look at the technologies involved from both a software as well as hardware point of view.
- Information on current state of the art of IoT devices and areas where market traction is predominant.
- Profiles of key players in different segments along with market share information.

SCOPE OF REPORT

The IoT market is booming but lacks clear direction and many companies are trying to come up their own solutions. Top players such as Google, Samsung and Apple are creating products for which they see a market whereas many start-ups are coming up with novel ideas for technology adoption. The race is on to become vendor of choice.
The nature of IoT applications is limited only by one’s imagination. A list of overall applications for IoT includes segments such as:

- Environments.
- Wearable and smart devices.
- Infrastructure management.
- Industrial control and automation.
- Energy management.
- Medical systems.
- Home automation.
- Transportation.
- Mining.
- Smart cities.
- Agriculture.

In addition, IoT devices offer two types of value propositions. First, there is the value added by the device in which the device itself is the vital link in a system that provides savings through efficient data capture, analysis and system calibration. An example of this is the Nest thermostat from Google’s Nest Labs subsidiary, which regulates temperature to enable power savings with proper calibration through integrated IT systems. Without the connected device (in this case the thermostat) there is no data capture to allow the IT system to properly analyze and calibrate energy usage.

Table Of Contents

The Internet of Things
CHAPTER 1 INTRODUCTION 2
STUDY GOALS AND OBJECTIVES 2
REASONS FOR DOING THE STUDY 2
SCOPE OF REPORT 2
INTENDED AUDIENCE 4
INFORMATION SOURCES 4
ANALYST'S CREDENTIALS 4
RELATED BCC RESEARCH REPORTS 5
BCC RESEARCH WEBSITE 5
DISCLAIMER 5
CHAPTER 2 SUMMARY 7
SUMMARY TABLE GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS, THROUGH
2020 ($ MILLIONS) 7
SUMMARY FIGURE GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS, 2014-2020
($ MILLIONS) 7
CHAPTER 3 OVERVIEW 10
FIGURE 1 AN IOT SYSTEM AT A GLANCE 10
CHAPTER 4 MARKET SEGMENTS 13
SMART DEVICES AND IOT 13
IOT SENSORS 13
TABLE 1 SENSORS USED IN VARIOUS APPLICATIONS 14
Proximity Sensors 14
Accelerometers 14
Temperature Sensors 15
Light Sensors 15
NETWORKING IN IOT DEVICES 15
WIRED NETWORKS 15
WIRELESS NETWORKS 15
TABLE 2 COMPUTER NETWORK TYPES 16
Types of Wireless Networks 16
Wireless PANs 16
Wireless LANs 17
Wireless Mesh Networks 17
Wireless MANs 17
Wireless WANs 17
Cellular Networks 17
CHOOSING WIRED VS. WIRELESS 18
Convenience 18
Interference, Absorption and Fading 18
Capacity 18
Power 18
POPULAR WIRELESS PROTOCOL STANDARDS FOR IOT DEVICES 19
ZigBee 19
Bluetooth 19
WiFi 20
Cellular Networks 20
Z-Wave 20
Bluetooth Smart 21
TABLE 3 POPULAR WIRELESS PROTOCOLS FOR IOT DEVICES 21
DESIGNING IOT DEVICES 22
FORM FACTOR 22
CONTEXT AWARENESS 23
POWER REQUIREMENTS 23
CHAPTER 5 APPLICATIONS 25
APPLICATIONS OF IOT 25
ENVIRONMENTAL 25
INFRASTRUCTURE MANAGEMENT 25
INDUSTRIAL CONTROL AND AUTOMATION 25
ENERGY MANAGEMENT 26
MEDICAL SYSTEMS 26
HOME AUTOMATION 26
TRANSPORTATION 27
AGRICULTURE 27
MINING 27
SMART CITIES 27
CURRENT STATE OF IOT MARKETS 28
TABLE 4 CURRENT STATUS OF IOT MARKETS 28
TABLE 5 GLOBAL MARKET FOR IOT DEVICES BY SEGMENT, THROUGH 2020 ($
MILLIONS) 29
TABLE 6 GLOBAL MARKET SHARE FOR IOT DEVICES BY SEGMENT, 2014 AND 2020
(%) 30
ISSUES AND CHALLENGES STEMMING FROM IOT 30
PRIVACY, AUTONOMY AND CONTROL 30
SECURITY 31
USER INTERFACE 31
ENVIRONMENTAL IMPACT 31
THE "BASKET OF REMOTES" 32
IOT IN THE ENTERPRISE 32
DIGITAL ENTERPRISE 32
BUSINESS PROCESS OPTIMIZATION 33
PRODUCT DEPLOYMENT AND SUPPLY CHAIN OPTIMIZATION 33
BUSINESS INTELLIGENCE 33
CUSTOMER SATISFACTION 33
NEW SERVICES 33
COST SAVINGS 33
TABLE 7 STATUS OF IOT IN ENTERPRISES ` 34
IOT VALUE PROPOSITION TO BUSINESSES 34
IOT BUSINESS MODELS AND INNOVATION 35
Freemium 35
Data Analytics 35
IoT as a Service 35
Applications and In-app Advertising 36
IOT POSITIONED FOR GROWTH OVER THE NEXT FIVE YEARS 36
MEDIA HYPE 36
AVAILABILITY OF IPV6 36
CHEAPER HARDWARE 36
EMERGENCE OF SOFTWARE PLATFORMS 36
CHAPTER 6 SMART HOME 38
TABLE 8 GLOBAL MARKET FOR SMART HOME DEVICES, THROUGH 2020 ($
MILLIONS) 38
SMART HOME DEVICES: TECHNOLOGY AND ARCHITECTURE 39
TABLE 9 FEATURES OF SMART HOME DEVICES 39
SMART DEVICES VS. SMART HUBS 39
FIGURE 2 SMART HOME DEVICES WITHOUT A HUB 39
FIGURE 3 SMART HOME DEVICES WITH A HUB 40
IOT APPLICATIONS FOR SMART HOME 40
ELECTRONIC LOCK 40
CONNECTED BULB 41
CONNECTED SWITCH 41
AIR CONDITIONING 41
SMART SMOKE DETECTORS 42
CONNECTED SPRINKLER SYSTEMS 42
SMART KETTLE 42
SECURITY CAMERA 42
SMART TOOTHBRUSH 42
SMART VENT 43
SMART APPLIANCES 43
CHALLENGES WITH THE CONNECTED HOME 43
INSTALLATION 43
Value Proposition Less than Compelling 43
INCOMPATIBILITY 43
MULTIPLE NETWORKS 44
EXPOSURE TO RADIO FREQUENCIES 44
USER INTERFACE 44
SENSORS 44
APPLE, GOOGLE AND SAMSUNG 44
APPLE HOMEKIT 45
GOOGLE NEST PLATFORM 45
SAMSUNG AND SMARTTHINGS 46
TABLE 10 SMART HOME PLATFORMS 46
MARKET SEGMENTATION FOR SMART HOME DEVICES 46
TABLE 11 GLOBAL MARKET FOR SMART HOME DEVICES BY REGION, THROUGH
2020 ($ MILLIONS) 46
TABLE 12 GLOBAL MARKET SHARE FOR CONNECTED HOME DEVICES BY REGION,
2015 (%) 47
INDUSTRIAL IOT DEVICES 47
TABLE 13 GLOBAL MARKET FOR INDUSTRIAL IOT DEVICES, THROUGH 2020 ($
MILLIONS) 47
APPLICATIONS OF IOT IN INDUSTRIES 48
User Notification 48
Predictive Warnings 48
Device Tampering 49
Messaging 49
Robotics 49
Automated Buildings 49
Railroad Industry 49
Air Conditioning, Heating and Refrigeration 49
CHALLENGES IN INDUSTRIAL IOT 50
Educating Manufacturing Industry Workers in IoT 50
Planning Networks 50
Communication in Industrial Environments 50
ROBOTS IN INDUSTRY 50
Qualcomm's Robotics Platform 51
INDUSTRIAL IOT DEVICES MARKET 51
TABLE 14 GLOBAL SHIPMENTS OF INDUSTRIAL IOT DEVICES BY VOLUME,
THROUGH 2020 (MILLIONS) 51
TABLE 15 GLOBAL MARKET FOR INDUSTRIAL IOT DEVICES BY REGION, THROUGH
2020 ($ MILLIONS) 52
TABLE 16 GLOBAL MARKET FOR INDUSTRIAL AUTOMATION IOT DEVICES BY
REGION, 2015 (%) 52
WEARABLES 52
TABLE 17 GLOBAL MARKET FOR WEARABLE DEVICES, THROUGH 2020 ($ MILLIONS) 53
WEARABLE DEVICE CHARACTERISTICS 53
Size and Look 53
User Interface 54
Power Consumption 54
Connectivity 54
WEARABLE DEVICE DESIGN 54
FIGURE 4 BLOCK DIAGRAM OF A TYPICAL WEARABLE DEVICE 54
CURRENTLY AVAILABLE WEARABLE DEVICES 55
Wearable Watches 55
Wearable that Tracks Movement 56
Wristband that Confirms Identity 56
Wearable that Provides User Alerts 56
Socks that Monitor Movement (and Lack Thereof) 56
Wearable that Records Everyday Events 56
Wearable that Corrects Posture 56
Wearable that Tracks Sleep 57
Ring that Controls Other Devices 57
Wearable Belt 57
WEARABLE WATCHES 57
Apple Watch 57
Samsung Gear 58
Pebble Watch 59
Sony Smartwatch 60
Android Wear 60
WEARABLE DEVICE MARKET SEGMENTATION 61
TABLE 18 WEARABLE DEVICES MARKET SEGMENTATION 61
TABLE 19 GLOBAL MARKET SHARE FOR WEARABLE DEVICES BY SEGMENT, 2014
AND 2020 (%) 61
TABLE 20 GLOBAL SHIPMENTS OF WEARABLE DEVICES BY VOLUME, THROUGH
2020 (MILLIONS) 61
TABLE 21 GLOBAL MARKET FOR WEARABLE DEVICES BY REGION, THROUGH 2020
($ MILLIONS) 62
TABLE 22 GLOBAL MARKET SHARE FOR WEARABLE DEVICES BY REGION, 2015 (%) 62
IOT IN "OTHER" MARKETS 62
TABLE 23 GLOBAL MARKET FOR OTHER IOT DEVICES, THROUGH 2020 ($ MILLIONS) 63
TABLE 24 GLOBAL SHIPMENTS OF OTHER IOT DEVICES BY VOLUME, THROUGH
2020 (MILLIONS) 63
IOT IN THE RESTAURANT AND HOSPITALITY INDUSTRY 63
mTablet 64
Retail Stanchion POS 64
Groupon's POS 64
IOT IN RETAIL 64
Inventory Management 64
Fleet Management 65
Maintenance 65
Real-time Promotions 65
IOT IN TRANSPORTATION 65
Connected Cars 66
Android Auto 66
IOT IN HEALTHCARE 67
FDA and IoT Devices 67
Fertility Tracking 68
Personal Meditation Assistant 68
Smart Shirt 68
Sports Bra Senses Heart Rate 68
Smart Shoes 68
IOT IN AGRICULTURE 69
Productivity 69
Pest Control 69
Water Conservation 69
Real-time Analysis of Data for Farmers 70
MARKET FOR OTHER IOT DEVICES 70
TABLE 25 GLOBAL MARKET FOR OTHER IOT DEVICES BY REGION, THROUGH 2020
($ MILLIONS) 70
TABLE 26 GLOBAL MARKET SHARE FOR OTHER IOT DEVICES BY REGION, 2015 (%) 70
CHAPTER 7 TECHNOLOGIES 72
IOT DEVICE HARDWARE 72
FIGURE 5 TYPICAL IOT DEVICE HARDWARE 72
SENSORS 72
NETWORK COMPONENTS 72
EMBEDDED SYSTEM 73
FIGURE 6 A TYPICAL EMBEDDED SYSTEM IN AN IOT DEVICE 73
SMART CONNECTORS 73
IOT SYSTEM DEVELOPMENT AND IMPLEMENTATION 74
FIGURE 7 TYPICAL DEVELOPMENT CYCLE FOR AN EMBEDDED DEVICE 74
IOT DEVICE SOFTWARE 76
Device Drivers 76
FIGURE 8 SOFTWARE STACK IN A TYPICAL EMBEDDED SYSTEM 76
Operating System 77
Middleware 77
Application Software and Internet Connectivity 78
SOFTWARE DEVELOPMENT CYCLE 78
FIGURE 9 TYPICAL SOFTWARE DEVELOPMENT CYCLE 78
A Web Application Framework: Web of Things 79
Big Data and IoT 79
IoT Distributed Computation Frameworks 80
IOT Reference Platform 81
NEW IOT PROTOCOLS 81
Thread 81
AllJoyn 82
INDUSTRY CONSORTIUMS 82
TABLE 27 IOT INDUSTRY CONSORTIUMS 82
Open Interconnect Consortium 82
Industrial Internet Consortium 83
Allseen Alliance 83
MARKET FOR IOT DEVICES AND IOT CHIPSETS/PLATFORMS 83
TABLE 28 GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS/PLATFORMS,
THROUGH 2020 ($ MILLIONS) 84
TABLE 29 GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS/PLATFORMS BY
REGION, THROUGH 2020 ($ MILLIONS) 84
TABLE 30 GLOBAL SHIPMENTS OF IOT DEVICES BY VOLUME, THROUGH 2020
(MILLIONS) 85
TABLE 31 GLOBAL MARKET FOR IOT DEVICES BY REGION, THROUGH 2020 ($
MILLIONS) 85
TABLE 32 GLOBAL MARKET SHARE FOR IOT DEVICES BY REGION, 2015 (%) 85
IOT TECHNOLOGY BUILDING BLOCKS 86
FIGURE 10 IOT CHIPSETS AND PLATFORMS AT A GLANCE 86
SENSORS 87
TABLE 33 TYPES OF SENSORS, TECHNOLOGIES AND VENDORS IN THE IOT
MARKETPLACE 87
MARKET FOR IOT CHIPSETS AND PLATFORMS 87
TABLE 34 GLOBAL MARKET FOR IOT CHIPSETS AND PLATFORMS, THROUGH 2020
($ MILLIONS) 87
TABLE 35 GLOBAL MARKET FOR IOT CHIPSETS AND PLATFORMS BY REGION,
THROUGH 2020 ($ MILLIONS) 88
TABLE 36 GLOBAL MARKET SHARE FOR IOT CHIPSETS AND PLATFORM MARKET BY
REGION, 2015 (%) 88
CHAPTER 8 INDUSTRY STRUCTURE 90
SELECT COMPANY PROFILES: HARDWARE PLATFORMS 90
TABLE 37 COMPANIES PROVIDING IOT HARDWARE PLATFORMS 90
ARM HOLDINGS PLC 90
BROADCOM CORP. 91
FREESCALE SEMICONDUCTOR INC. 92
IMAGINATION TECHNOLOGIES INC. 93
INTEL CORP. 94
MARVELL SEMICONDUCTOR INC. 95
MEDIATEK INC. 96
QUALCOMM INC. 96
TEXAS INSTRUMENTS INC. 97
SELECT COMPANY PROFILES: IOT PLATFORMS 98
TABLE 38 SOFTWARE PLATFORMS - DEVICE SIDE 99
ARRAYENT 99
HAYSTACK 100
IOBRIDGE INC. 100
ZONOFF INC. 100
SELECT COMPANY PROFILES: CLOUD-SIDE PLATFORMS 101
TABLE 39 CLOUD-SIDE PLATFORMS 101
AMAZON.COM 101
BUG LABS 102
MICROSOFT CORP. 102
ORACLE CORP. 103
THINGWORX 104
XIVELY BY LOGMEIN 104
SELECT COMPANY PROFILES: IOT OPEN SOURCE PLATFORMS 105
TABLE 40 IOT OPEN SOURCE PLATFORMS 105
H-NODE 105
NIMBITS 105
PARTICLE 106
SENSE-IOT 106
SELECT COMPANY PROFILES: IOT CHIPSETS AND PLATFORMS 106
ANALOG DEVICES INC. 106
ELECTRIC IMP 107
INVENSENSE INC. 108
SENSINODE OY 108
STMICROELECTRONICS 109
SELECT COMPANY PROFILES: DEVICES 110
APIGY INC. 110
APPLE COMPUTER 110
BELKIN INTERNATIONAL 111
CONTROL4 CO. 111
CRESTRON ELECTRONICS CO. 112
ECOBEE 112
GOOGLE 113
ISMARTALARM INC. 114
KWIKSET 114
LG ELECTRONICS INC. 114
NINJABLOCKS 115
SAMSUNG 116
SAVANT SYSTEMS LLC 116
SIGMA DESIGNS INC. 117
SMARTTHINGS 117
WHIRLPOOL CORP. 118
SELECT COMPANY PROFILES: WEARABLES 118
ADIDAS 118
FITBIT INC. 119
JAWBONE 120
NIKE INC. 121
PEBBLE TECHNOLOGY CORP. 121
SONY CORP. 122
WITHINGS USA 123
SELECTED COMPANY PROFILES: INDUSTRIAL IOT 123
3D ROBOTICS 123
AMAZON ROBOTICS LLC. 124
ARDUINO 125
CISCO SYSTEMS INC. 126
DOUBLE ROBOTICS 127
ENLIGHTED INC. 127
GE INTELLIGENT PLATFORMS 127
HONEYWELL PROCESS SOLUTIONS 128
JASPER TECHNOLOGIES INC. 129
ROCKWELL AUTOMATION 129
SCHNEIDER ELECTRIC 130
SELECT COMPANY PROFILES: MEDICAL DEVICES 131
ALIVECOR 131
IHEALTHLABS 131
JOHNSON AND JOHNSON 132
MEDTRONIC INC. 132
SELECT COMPANY PROFILES: OTHER VERTICAL APPLICATIONS 133
BITPONICS 133
DASH LABS INC. 133
FITBARK INC. 134
FORD RESEARCH AND INNOVATION 134
NOMI 135
PLACEMETER 135
POLAR ELECTRO INC. 136
TELCARE 136
TRIMBLE NAVIGATION LTD. 137

LIST OF TABLES

SUMMARY TABLE GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS, THROUGH
2020 ($ MILLIONS) 7
TABLE 1 SENSORS USED IN VARIOUS APPLICATIONS 14
TABLE 2 COMPUTER NETWORK TYPES 16
TABLE 3 POPULAR WIRELESS PROTOCOLS FOR IOT DEVICES 21
TABLE 4 CURRENT STATUS OF IOT MARKETS 28
TABLE 5 GLOBAL MARKET FOR IOT DEVICES BY SEGMENT, THROUGH 2020 ($
MILLIONS) 29
TABLE 6 GLOBAL MARKET SHARE FOR IOT DEVICES BY SEGMENT, 2014 AND 2020
(%) 30
TABLE 7 STATUS OF IOT IN ENTERPRISES ` 34
TABLE 8 GLOBAL MARKET FOR SMART HOME DEVICES, THROUGH 2020 ($ MILLIONS) 38
TABLE 9 FEATURES OF SMART HOME DEVICES 39
TABLE 10 SMART HOME PLATFORMS 46
TABLE 11 GLOBAL MARKET FOR SMART HOME DEVICES BY REGION, THROUGH 2020
($ MILLIONS) 46
TABLE 12 GLOBAL MARKET SHARE FOR CONNECTED HOME DEVICES BY REGION,
2015 (%) 47
TABLE 13 GLOBAL MARKET FOR INDUSTRIAL IOT DEVICES, THROUGH 2020 ($
MILLIONS) 47
TABLE 14 GLOBAL SHIPMENTS OF INDUSTRIAL IOT DEVICES BY VOLUME, THROUGH
2020 (MILLIONS) 51
TABLE 15 GLOBAL MARKET FOR INDUSTRIAL IOT DEVICES BY REGION, THROUGH
2020 ($ MILLIONS) 52
TABLE 16 GLOBAL MARKET FOR INDUSTRIAL AUTOMATION IOT DEVICES BY REGION,
2015 (%) 52
TABLE 17 GLOBAL MARKET FOR WEARABLE DEVICES, THROUGH 2020 ($ MILLIONS) 53
TABLE 18 WEARABLE DEVICES MARKET SEGMENTATION 61
TABLE 19 GLOBAL MARKET SHARE FOR WEARABLE DEVICES BY SEGMENT, 2014
AND 2020 (%) 61
TABLE 20 GLOBAL SHIPMENTS OF WEARABLE DEVICES BY VOLUME, THROUGH 2020
(MILLIONS) 61
TABLE 21 GLOBAL MARKET FOR WEARABLE DEVICES BY REGION, THROUGH 2020 ($
MILLIONS) 62
TABLE 22 GLOBAL MARKET SHARE FOR WEARABLE DEVICES BY REGION, 2015 (%) 62
TABLE 23 GLOBAL MARKET FOR OTHER IOT DEVICES, THROUGH 2020 ($ MILLIONS) 63
TABLE 24 GLOBAL SHIPMENTS OF OTHER IOT DEVICES BY VOLUME, THROUGH 2020
(MILLIONS) 63
TABLE 25 GLOBAL MARKET FOR OTHER IOT DEVICES BY REGION, THROUGH 2020 ($
MILLIONS) 70
TABLE 26 GLOBAL MARKET SHARE FOR OTHER IOT DEVICES BY REGION, 2015 (%) 70
TABLE 27 IOT INDUSTRY CONSORTIUMS 82
TABLE 28 GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS/PLATFORMS, THROUGH
2020 ($ MILLIONS) 84
TABLE 29 GLOBAL MARKET FOR IOT DEVICES AND CHIPSETS/PLATFORMS BY
REGION, THROUGH 2020 ($ MILLIONS) 84
TABLE 30 GLOBAL SHIPMENTS OF IOT DEVICES BY VOLUME, THROUGH 2020
(MILLIONS) 85
TABLE 31 GLOBAL MARKET FOR IOT DEVICES BY REGION, THROUGH 2020 ($
MILLIONS) 85
TABLE 32 GLOBAL MARKET SHARE FOR IOT DEVICES BY REGION, 2015 (%) 85
TABLE 33 TYPES OF SENSORS, TECHNOLOGIES AND VENDORS IN THE IOT
MARKETPLACE 87
TABLE 34 GLOBAL MARKET FOR IOT CHIPSETS AND PLATFORMS, THROUGH 2020 ($
MILLIONS) 87
TABLE 35 GLOBAL MARKET FOR IOT CHIPSETS AND PLATFORMS BY REGION,
THROUGH 2020 ($ MILLIONS) 88
TABLE 36 GLOBAL MARKET SHARE FOR IOT CHIPSETS AND PLATFORM MARKET BY
REGION, 2015 (%) 88
TABLE 37 COMPANIES PROVIDING IOT HARDWARE PLATFORMS 90
TABLE 38 SOFTWARE PLATFORMS - DEVICE SIDE 99
TABLE 39 CLOUD-SIDE PLATFORMS 101
TABLE 40 IOT OPEN SOURCE PLATFORMS 105

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