A Revolution to the Way We Live - The Role of M2M Communications in Smart Cities


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The Next Generation of Machine-to-Machine communications will revolutionize the way we live in cities.
Frost & Sullivan's Analyst Yiru Zhong provides some examples of Smart Cities and current M2M applications, and opportunities for the information and communication technology industry.

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A Revolution to the Way We Live - The Role of M2M Communications in Smart Cities

  1. 1. A Revolution to the Way We Live – The Role of M2M Communications in Smart Cities Yiru Zhong, Research Analyst Information & Communication Technologies 15th June 2011
  2. 2. Focus Points Setting the Scene An Unmistakable Trend Opportunities for ICT Industry Key Takeaways 2
  3. 3. Setting the Scene 3
  4. 4. Frost & Sullivan ICT M2M Research Is Supported by OurOther Research Areas 2010/11 Research Coverage to date Frost & Sullivan’s 9 Research Practices • M2M Market Sizing in Europe 2010 • M2M – The role of Telecom Service Providers • Smart cards in M2M • A Revolution in the Way We Live – M2M in Smart Cities • Ericsson floats the M2M boat with acquisition 2011 Research Delivery Schedule • Connected Home Initiatives in Europe • M2M in Utilities • M2M in Government – Driving the Smart Cities Source: Frost & Sullivan Concept • M2M: Where are we today? • M2M Market Sizing in Europe 2011 4
  5. 5. Looking For The Next Layer of M2M Opportunity Telecoms M2M Market: M2M Demand in Industries (Europe), 2008-2020 Not all industries offer equal M2M opportunities for all types of telecom M2M providers. HighComplexity of M2M Demand It is necessary to determine: • Current and future absolute size over a short, medium and long-term horizon • Current and 3-year/5-year/10-year growth prospects • Logistics • Transportation • Retail • Logistics • Utilities • Transportation • Manufacturing • Retail • Security • Utilities • Government • Logistics • Manufacturing • Healthcare • Transportation • Security • Emergency Services • Retail • Government • Utilities • Logistics • Manufacturing • Transportation • Security • Retail Low <2008 2008-2010 2010-2015 2016-2020 Timeline Source: Frost & Sullivan “M2M - The Role of Telecoms Service Providers” 5
  6. 6. It is a Natural Extension of a Digital Society into One Thatis Interconnected and Intelligent Keeping informed Blogging/Video blogging Internet surfing Gambling Interacting Watching TV Transacting with Playing games counterparties COMMUNICATING SOCIALISING Socialising (virtually) Communicating Reading Shopping WORKING Accessing government services Educating Off site working Remote accessing Home working Conducting business activities Source: Frost & Sullivan Ubiquitous communication networks enable the user to conduct its everyday activities Source: Frost & Sullivan 6
  7. 7. Branding of Cities Associated with Ubiquity andIntelligent Use of Bits of Data Smart Smart Economy Mobility Smart Smart Governance Environment Smart Living Smart People Source: www.smart-cities.eu 7
  8. 8. An Unmistakable TrendRapid urbanisation triggers rethink in urban policies 8
  9. 9. UN Predicts Further Urbanisation; Formation of Mega-Regions by 2023 Japan Nagoya – Osaka – Kyoto - Kobe Beijing - Pyongyang - Seoul - Tokyo China Mumbai - Hong Kong – Shenzhen – Delhi Guangzhou Ghana - Togo - Benin - Nigeria Brazil Rio de Janeiro-São Paulo Mega Regions Urban Corridors Source: UN-Habitat 2010 9
  10. 10. European Countries in a Race to Win Title of SmartestCity Scandinavian countries were front runners of applying UK, France, innovations for Germany, Spain social services. and the Netherlands driven by efficiency gains Will rapid urbanisation and increased use of ICT accelerate deployment of smart cities? Transport & Payment methods are two important drivers. Source: Frost & Sullivan 10
  11. 11. Drivers and Desired Outcomes of Smart CitiesDeployment Drivers for Smart Cities Deployment Desired Outcomes• Increased citizens’ expectations of a Prestige outcomes aside, governments aim to modern city living environment achieve three main outcomes• Availability of technology at mass market Reduce overall government cost burden in prices for intelligent use of such scarce 1 the long run resources as energy and landmass Improve local government services in an• National energy targets trigger local 2 government rethink in holistic urbanisation urban setting policies Achieve any national government’s energy 3 targets• Public transport policies coincide with local government services initiatives 11
  12. 12. The Role of M2M Communications in a Smart CityScenario • Consumption of local • Local • Public transportation government services business policies economy Smart Smart Economy Smart Mobility Governance Smart Smart Living Smart People Environment • Connected • Intelligent • Citizen’s digital lifestyle citizens Environmental Management Source: Frost & Sullivan www.smart-cities.eu 12
  13. 13. Opportunities for ICT Industry For Whom, How and When 13
  14. 14. For Whom: Is there A Mega-Ecosystem for Smart Cities? Public Transportation Energy & Environment • Rail • Utilities • Metro-rail • Environmental Management • Buses Telecoms IT Industry Industry • Air System Integrators Service Providers • Traffic Management Systems & Vendors Software Systems & M2M Sector Software Modules Service Providers Technology Providers Civil & Emergency Services Platform Providers Middle & Software • Security, Access & Public Providers safety surveillance • Automated Response Services Automotive & Logistics • Traffic Management • Environmentally friendly fleet Source: Frost & Sullivan 14
  15. 15. How: What is The Route to Market? Telecoms M2M Market: Opportunities in the Eco-System (Europe), 2010Partnerships with either IT Partnerships withor M2M players address Telcos increase ITTelcos’ challenges of companies’ scope of customers for IT Telecomsindustry credibility, achieving Industry Sector Sectorspeed to market, and companies’ M2M vertical expertise, integration ITaccelerating internalexperience enhancement . services, systems and software applications. Partnerships with Telcos increase M2M sector’s scope of customers M2M for M2M modules, technology and Industry software and applications. Source: Frost & Sullivan “M2M - The Role of Telecoms Service Providers” 15
  16. 16. When: Incremental Increase in Intelligence Telecoms M2M Market: Estimation of M2M Demand on a Product Life Cycle Curve (Europe), 2010 • Utilities - Automatic Reading in Scandinavia • Utilities - Smart Meters • Transportation - • Transportation - Telematics, Logistics Connected Cars, E-toll, Track and Trace Advanced Telematics for • Security - Track and trace Insurance Purposes • Retail - Warehousing • Security - Remote Geo-Volume of Demand fencing • Retail - Intelligent Warehousing, Consumer Electronics • Utilities - Smart Grids, Smart Energy • Transportation - Connected Cars, • Retail - Interactive Marketing • Healthcare • Smart Cities Introduction Growth Maturity Decline Product Life Cycle Phase Source: Frost & Sullivan “M2M - The Role of Telecoms Service Providers” 16
  17. 17. Stumbling Blocks in Capturing M2M Opportunities inSmart Cities Low Impact Practical partnership Lack of interoperability tensions in revenue sharing agreements issues, of networks, protocols, and end High points (including sensors and terminals) Lack of visibility in Lack of relevant decision makers sector experience and stakeholders to deploy relevant to provide a true M2M applications end to end solutions 17
  18. 18. Key Takeaways 18
  19. 19. Conclusion/Key Take-Aways• Traditional M2M services become low hanging fruits - M2M offers in readily used functions such as track and trace expanded within such traditional sectors as transportation and logistics.• Telecoms’ M2M offers are relatively similar at this early stage – Telcos are exploiting their existing enterprise relationships to establish first mover advantages in such readily functions as telematics, smart metering and even M2M communications in consumer electronics.• Partnerships could yet tilt the dynamics within ICT sector – Some telcos are aggressively driving cross industry collaborations with industrial equipment vendors and specialist application providers to be relevant in a world of interconnected machines and objects. 19
  20. 20. Next Steps Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com) Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth occurring 15 – 16 May, 2012 (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 20
  21. 21. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?Growth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other? Please inform us by rating this presentation Frost & Sullivan’s Growth Consulting can assist with your growth strategies 21
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  23. 23. For Additional InformationJoanna Lewandowska Gustavo CuryCorporate Communications Sales ManagerICT ICT+48 22 390 41 46 +44 207 343 8310joanna.lewandowska@frost.com gustavo.cury@frost.comYiru Zhong Adrian DrozdResearach Analyst Research ManagerICT ICT+48 22 390 41 28 +44 1865 398 699yiru.zhong@frost.com adrian.drozd@frost.com 23