APAC M2M Outlook
 

APAC M2M Outlook

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A Frost & Sullivan Analyst Briefing on the Asia Pacific Maching-to-Machine (M2M) Market.

A Frost & Sullivan Analyst Briefing on the Asia Pacific Maching-to-Machine (M2M) Market.

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APAC M2M Outlook APAC M2M Outlook Presentation Transcript

  • APAC M2M Outlook
    JayeshEaswaramony
    Vice President, ICT Practice
  • Overview
    1
    Business Models
    2
    Forecasts
    3
  • Changing face of telecom
    The next 10 years will look very different from the last 10 years
    Till 2010
    Till 2020
    80
    5
    Penetration
    Growth in connected devices
    6
    0.9
    Connected devices (bn)
    Connections (bn)
    Explosive growth
    Mature Growth
    4-5%
    >12%
    Telecom Outside
    Telecom inside
    • Smart enabler
    • Consumer centric
    Source: Frost & Sullivan
  • Why the perfect storm
    TECHNOLOGY
    • New middle class
    • Generation Y
    • Flexibility
    • Fiscal stimulus of $ 1 trn over 2010-12 across APAC leads to new wave of infrastructure creation
    GLOBAL
    INDUSTRY
    CEO
    360
    • Service revenues
    • New business models
    CUSTOMER
    • Rapid Urbanization
    • Innovating to zero – sustainability
    COMPETITIVE
    BEST PRACTICES
    • Broadband as utility
    • Cloud computing
    • Geo-tagging
    • Smart city – fulcrum of new investments
    • Connected communities
    • Convergence of industries – smart grids, energy, comms, logistics
    ECONOMIC
  • Machine to Machine ( M2M) – Lots of possibilities
    M2M has the ability to impact multiple industries
    Machine to Machine(M2M) as any kind of communication between geographically distributed wireless devices through a centrally managed software platform. AM2M system comprises of connectivity enabled devices to capture events and collect the data, a cellular/hybrid network to communicate with the server and a software application that allows the data to be analyzed, reported, and acted upon.
    Source: Frost & Sullivan
  • M2M System Architecture
    The M2M system consists of four layers: sensing layer, communication layer, management layer and application layer.
    System Architecture
  • Major Applications of M2M
    APAC M2M Market Outlook: Market Segmentation
    Retail
    Automotive/Transportation
    Healthcare & Others
    Inventory update across
    distributed locations/warehouses
    POS / Vending Machine
    Mobile Payment/Mobile Wallet
    Remote patient care
    Remote Monitoring / Diagnosis
    Weather / Temperature Monitoring
    Vehicle tracking
    Telemetric
    Navigation and routing
    Route optimization
    Fleet Management
    Finance
    Logistics
    M2M Applications
    Mobile Payment/Mobile Wallet
    Remote Asset Management
    Security
    Remote Servicing
    Real-time stock management
    Tracing sensitive items
    Utilities & Energy
    Consumer
    Automated metering
    Energy usage and optimization
    Check on pilferage and theft
    Street light management
    Monitoring for seismic activity and other dangerous natural phenomena
    Healthcare
    Personal Navigation
    E-Reader
    Baby/Old Care /Locator
    Residence Security
    Manufacturing
    Remote Monitoring/Diagnostics
    Remote asset management
    Prototype testing
    Regulation compliance (carbon credits)
  • APAC M2M Market Outlook: Drivers and Restrains
    Revenue opportunities for MNOs
    Enablers
    Enablers
    Falling cost of M2M modules
    and devices
    Adoption of Mobile Technologies: 3G/WiMAX/LTE
    Government and
    regulatory support
    Constraints
    Constraints
    Costs of initial deployment
    Lack of economy of scale
    Lack of standardization
    M2M Drivers and Restrains
    Shift of business model
    Source: Frost & Sullivan
  • Overview
    1
    Business Models
    2
    Forecasts
    3
  • Complex Value Chain
    The value chain is very complex
    Vertical specific/ System integrators
    M2M Service Distributors
    Application Developer
    M2M Platforms
    M2M Module Vendors
    Device Vendors
    M2M Chipset Vendors
    Source: Frost & Sullivan
  • M2M Operators Market Development
    Developed Markets
    2004 & before 2005 2006 2007 2008 2009 2010 2011
    * Vodafone platform
    *TelenorConnexion
    * KPN platform
    Globe Leaders
    (Alliance & Platform)
    *NTT DoCoMo
    * KDDI
    * AT&T Platform
    * Softbank
    * nPHASE (Qualcomm and Verizon)
    * SKT
    * Sprint NextTel & DataSmart
    * KT
    APAC
    Early Adopters
    *Telstra
    Emerging Markets
    *China Mobile
    *StarHub
    * China Unicom
    * Maxis
    Launch
    M2M
    * China Telecom
    APAC
    Fast Followers
    * CSL
    *Globe
    * Reliance
    * Celcom (Malaysia)
    Source: Frost & Sullivan
  • M2M Business Models
    M2M Chipset Vendors
    M2M Module Vendors
    M2M Device Vendors
    M2M Application Developer
    M2M Service Providers
    M2M Service Distributors
    Vertical Industries & Enterprises Consumers
    M2M Connection Providers
    Telco: AT&T
    Model 1: Device Driven Model
    Amazon
    Consumers
    Amazon
    Kindle
    Telco: Sprint
    Model 2: Consortium Model
    Verizon
    Business & Consumers
    Verizon
    Various Partners
    NPHASE
    QUALCOMM
    Verizon
    Source: Frost & Sullivan
  • M2M Business Models (Contd…)
    M2M Chipset Vendors
    M2M Module Vendors
    M2M Device Vendors
    M2M Application Developer
    M2M Service Providers
    M2M Service Distributors
    Vertical Industries & Enterprises Consumers
    M2M Connection Providers
    Telstra
    Model 3: Platform Model
    (usually through partnerships)
    Vertical Industry & Enterprise
    Business& Consumers
    Telstra
    M2M
    Platform
    Jasper Wireless
    Model 4: Operator Driven Model
    Business & Consumers
    China Mobile & Various Partners
    ( SKT, NTT Docomo )
    China Mobile/ SKT/ DoCoMo
    Source: Frost & Sullivan
  • Operators’ Strategy ( Developed Markets)
  • Operators’ Strategy ( Emerging Markets)
  • Strategy Parameters Comparison
    1. Device Driven Model 2. Consortium Driven Model 3. Platform Driven Model 4. Operator Driven Model
    Neutral
    Unfavorable
    Favorable
    Source: Frost & Sullivan
  • M2M Game Changers
    2011
    2015
  • M2M – Future Industrial revolution
    Internet of things
    M2M
    Smart Infrastructure
    Source: Frost & Sullivan
  • CSP
    (as aVSO)
    VSOn
    VSO2
    VSO3
    Concept-to-Cash: Partner Orchestration, Fulfillment, Monetization and Management
    The CSP is an Enabler of New Virtual Services and Manages the Business Enablement Platform
    Healthcare Provider
    Utilities (Water)
    Fixed & Mobile BB
    Content Supplier #3
    Content Supplier #2
    Data
    Storage
    Cloud Services
    Utilities (Gas)
    Content Supplier #1
    Healthcare Supplier #1
    Utilities (Electric)
    Healthcare Supplier #2
    Cross industry business models
    Customers
    (Business or Consumer)
    Virtual Services
    Operators (VSOs)
    (CSP or Others)
    and/or
    . . .
    CSP
    Suppliers(CSP and Others)
    Others …
  • Overview
    1
    Business Models
    2
    Forecasts
    3
  • APAC M2M Connections Forecasts by Country
    The APAC M2M connections was 20.8 million in 2010 and is expected to reach 116.6 million by 2015. China is the biggest M2M market, in terms of connections. China has 8.7 Million connection enabled devices in 2010 while Japan has 3.5 million and South Korea has 2.0 million. China is going to have 57.6 Million connections by 2015, followed by Japan and South Korean, with 20.9 million and 10.2 million connections respectively. Among these countries, we expect China, Malaysia and India to grow faster than the APAC average level.
    APAC M2M Market Outlook: Connections Forecasts by Country (2011-2015)
    Source: Frost & Sullivan
  • APAC M2M Connections Forecasts by Application
    The APAC M2M connections was 20.8 million in 2010 and is expected to reach 116.6 million by 2015. Smart Grid is the biggest contributor, followed by vehicle telematics. These two together were accounted for 63.4% of the total APAC connections in 2010. The percentage will decrease to 54% when other services start to gain traction. The consumer connectivity services are expected to be the one that grows at CAGR 51.9%, the highest growth among all the applications, which reflects the trend of M2M application move beyond industry usage.
    APAC M2M Market Outlook: Connections Forecasts by Application (2011-2015)
  • Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
    http://www.facebook.com/FrostandSullivan
    http://www.linkedin.com/companies/4506
    http://www.slideshare.net/FrostandSullivan
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  • For Additional Information
    Donna Jeremiah
    Corporate Communications
    Asia Pacific
    +603 6204 5832
    djeremiah@frost.com
    Carrie Low
    Corporate Communications
    Asia Pacific
    +603 6204 5910
    carrie.low@frost.com
    JayeshEaswaramony
    Vice President
    ICT
    +65 6890 0999
    jayesh.e@frost.com
    Jessie Loh
    Corporate Communications
    Asia Pacific
    +65 6890 0942
    jessie.loh@frost.com