BII The Internet Of Everything 2015

BI Intelligence
BI IntelligenceBI Intelligence
A Research Service By Business Insider
THE INTERNET OF
EVERYTHING:2015
The Way We Access The Internet Has Shifted Dramatically
Image: Reuters
We Started Using It On PCs And Then Moved To
Smartphones And Tablets
Right Image: Blakespot, Flickr CC
Now The Internet Is Moving Into Everyday
Objects And Devices
Source: YouTube, Amazon, August
Inside Our Homes …
Source: Siliconangle.com
Workplaces…
Source: AP
And Cities
Source: Libelium
The ‘Internet Of Things’ Will Be By Far The World’s Largest
Device Market
Source: BI Intelligence Estimates
0
5
10
15
20
25
30
35
2013 2014 2015E 2016E 2017E 2018E 2019E
Billions
The Internet Of Everything
Internet Of Things
Connected Cars
Wearables
Connected/Smart TVs
Tablets
Smartphones
Personal Computers
We Are Here
-
5
10
15
20
25
2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
Billions
Estimated Number of Installed IoT Devices
Five-Year CAGR
57%
It Includes All Those ‘Things’ That
Formerly Weren’t Connected
Source: BI Intelligence Estimates
We Are Here
Internet Of Things
Combined
Smartphones, Tablets
And PC Market
-
5
10
15
20
25
2013 2014 2015E 2016E 2017E 2018E 2019E
Billions
IoT Device Growth Vs. PC, Smartphone And Tablet Growth
It Will Soon Be Larger Than The PC, Tablet, And Smartphone
Markets Combined
Source: BI Intelligence Estimates
We Are Here
$-
$200
$400
$600
2014E 2015E 2016E 2017E 2018E 2019E
Billions
Estimated IoT Revenue
It’s A Huge Revenue Opportunity For Both
New Startups And Legacy Tech Companies
Source: BI Intelligence Estimates
We Are Here
Hardware
Software and
Services
$-
$200
$400
$600
2014E 2015E 2016E 2017E 2018E 2019E
Billions
Estimated IoT Business Revenue
Five-Year CAGR
44%
To Provide The Software That Will Run The IoT …
Source: BI Intelligence Estimates
We Are Here
-
10,000
20,000
30,000
40,000
2005 2008 2011 2014 2017 2020
Estimated Exabytes Of Data Globally By 2020
1 Exabyte = 1 Trillion Gigabytes
… And Make Sense Of All The
‘Big Data’ The IoT Will Generate
Source: IDC The Digital Universe, BI Intelligence Estimates
We Are Here
What Are The Main Drivers Of IoT Growth?
By 2020, Half Of The Planet Will Be
Connected To The Internet
16%
21%
26%
32%
38%
43%
50%
57%
2005 2007 2009 2011 2013 2015E 2017E 2019E
Estimated Penetration Of Global
Population Using The Internet
Source: ITU
We Are Here
0
300
600
900
1,200
2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
Millions
Global Number Of Homes With Wi-Fi
Over 1 Billion Homes Will Have Wi-Fi
Source: Strategy Analytics, BI Intelligence Estimates
We Are Here
Mobile And Other Connected Devices
Will Help Us Control The IoT
0
2
4
6
8
10
12
2013 2014 2015E 2016E 2017E 2018E 2019E
Billions
IoT Controller Forecast
Connected Cars
Wearables
Connected/Smart TVs
Tablets
Smartphones
Personal Computers
(Desktop And Notebook)
We Are Here
Source: BI Intelligence Estimates
The Price Of Sensors That Make Up The IoT Will Keep Falling
$1.30
$1.11
$0.95
$0.82
$0.70
$0.60
$0.51
$0.44
$0.38
2004 2006 2008 2010 2012 2014 2016E 2018E 2020E
Average Sensor Cost Forecast
Source: Goldman Sachs, BI Intelligence Estimates
We Are Here
Businesses Are Already Using The IoT To Improve Efficiency,
Launch New Products …
Source: Harvard Business Review 2014
35%
38%
44%
51%
More Information To Feed
Big Data/Analytics Efforts
Improved Use Of Assets
In The Field
Increased Revenue From
Services And/Or Products
Enhanced Customer Service
Benefits Observed By Early IoT Adopters
Survey Of Executives
… And Innovate!
Source: SAP 2014
8%
9%
10%
16%
27%
30%
Reduce maintenance costs and reduce system
downtime
Allow us to improve product design and build new
innovation products
Increase productivity of existing operations and
infrastructure
Improve customer satisfaction and increase
consumer engagement
Allow the creation of new and innovative business
models
Ultimately move from selling products to services
How Will The IoT Most Benefit Your Organizations’
Business Goals?
Companies Are Rushing Into The IoT
VC Investments In IoT Startups Are Piling Up
Source: CrunchBase, TechCrunch
$34
$55
$193
$300
$341
2010 2011 2012 2013 2014
Investments In IoT Startups ($Millions)
And M&A Activity Is Ramping Up…
Source: Hampleton Partners
IoT Control Platforms,
$0.3 Semiconductors, $0.7
Connected Car Services,
$2.8
Monitoring, $3.9
IoT Mergers And Acquisitions
January 2012 – November 2014
($ Billions)
Total: $7.7 Billion
There Are Barriers That Could Get In The
Way Of IoT Growth
Security Is The Biggest Concern …
Source: Cisco, n = 7,000+ global executives
25%
25%
28%
32%
38%
42%
Job Losses Due To Outsourcing Or Automation
Greater Price Transparency/Lower Profit Margins
Competition From New Rivals
Regulatory Challenges
Inability Of Our IT Systems To Keep Up With Change
Threats To Data Or Physical Security
Perceived Downsides To The Internet Of Everything
The Top Devices Have Major Security Weaknesses
Source: Hewlett Packard's Fortify on Demand
7
6
8
7
8
8
7
6
6
Use Unencrypted Network Services
Vulnerable to XSS, Weak Credentials etc.
Failed to Require Passwords
Failed to Protect Against Hackers Discovering…
Raised Privacy Concerns
Insufficient Authentication
Lack of Transport Encryption
Insecure Web Interface
Insecure Software/Firmware
How Many Of The Top 10 IoT Devices Have These Security Flaws?
Let’s Look At Some
IoT Markets Individually
Connected Home Gadgets Promise New Ways
To Control Our Homes Remotely
Source: Steve Kovach/Business Insider
Enterprise
Home
Government/Infrastruc
ture
$-
$200
$400
$600
2014E 2015E 2016E 2017E 2018E 2019E
Billions
Estimated IoT Revenue by Sector
Connected Homes Are The Top
Consumer Market For The IoT
We Are Here
Source: BI Intelligence Estimates
Smart Home Energy
Smart Home
Security
Smart Appliances
Other Systems
0
400
800
1,200
1,600
2,000
2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
(Millions)
Global Connected Home Device Shipments
By Device Category
Home-Automation And Energy Applications
Lead The Home Sector
We Are Here
Source: ABI Research, TechNavio, Pike Research, BI Intelligence Estimates
The Nest Thermostat Was An Early Consumer Success
Sources: Press Reports, Google, Morgan Stanley
0
50
100
150
200
250
4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014
Thousands
Estimated Nest Thermostat Shipments
Many Devices Use Energy Savings As A Selling Point
Source: Goldman Sachs
80%
60%
50%
45%
40%
Lighting Control
Ventilation Control
Room Heating Control
Shutter Control
Heating Automation
Estimated Home Energy Reduction
But Consumers Aren’t Completely Convinced
Source: Affinnova
• 41% of consumers feel strongly that
IoT products they have seen or heard
about are gimmicky
• 58% feel strongly that they won't
upgrade to IoT devices unless they
can be more than just a novelty
41%
58%
A Majority Still Say IoT Devices Are Too Expensive
Source: Bloomberg West/Survey Monkey
16%
31%
58%
Security/Privacy Concerns
Not Tech Savvy Enough
Too Expensive
Over Half Of Consumers Are Concerned About
Connected Home Device Prices
The Connected TV Is The IoT’s First Major
Consumer Success
Image: Steve Kovach, Business Insider
One-Third Of US Homes Already Have A Connected TV
Source: eMarketer
21.6 26.8 35.1 41.3 47 52.7
18%
43%
2011 2012 2013 2014 2015 2016
US Households With Connected TVs
(Millions Of Households; % Of All Households)
Two Companies Own A Majority Of The Market
Source: NPD
Samsung
34%
Vizio
26%
Sharp
15%
Panasonic
10%
LG
9%
Other
6% US Smart TV Market Share
Connected Cars Are Also Going Mainstream
Image: MacMixing
By 2020, 100 Million New Cars Will Have
Their Own Internet Connections
Source: Telefonica, IHS Automotive, GSMA, SBD, BI Intelligence Estimates
-
20
40
60
80
100
2010A 2012A 2014E 2016E 2018E 2020E
Millions
Cars Shipped With Built-In Connectivity
Major Car Makers Are Already Producing Connected Cars
But There Is Low Consumer Awareness
Source: Harris Poll Interactive 2014
14%
42%
44%
I Have Heard Of Them, And Am Familiar With
What They Are/Can Do
I Have Heard Of Them, But Am Not Familiar
With What They Are/Can Do
I Have Never Heard Of Them
How Familiar Are You With Connected Cars?
Survey Of US Car Owners With A 2009 Or Later Model
The Most Desired Connected-Car App?
Music Streaming By A Mile …
Source: Accenture
25%
27%
31%
42%
45%
49%
63%
In-Car Feature Enabling The Ability To Read And Dictate
Emails
Car-To-Car Communication
Access To Social Media While In The Car
Surfing The Internet Via A Monitor In The Car
Car Identifies Traffic Signals, Congestion, Accidents, Delays,
Warning The Passenger In Advance Of Such Situations
A System That Allows The Passenger To Stop The Car If,
For Example, The Driver Suffers A Heart Attack
Streaming Music For In-Car Use
Which Of The Following Services Do You Think Is Important For Your
Passengers (Partner, Children, Etc.) To Have Access To In The Car?
Cars Will Drive Themselves In The Future
Source: Flcikr/Mark Doliner
But That Market Will Remain Tiny For The Next 10 Years
Source: Frost & Sullivan 2014, BI Intelligence Estimates
-
40
80
120
160
200
2014E 2015E 2016E 2017E 2018E 2019E 2020E
Thousands
Estimated Autonomous Car Shipments
And Consumers Aren’t That Interested In The Idea … Yet
Source: Deloitte 2014
8%
10%
Desire For Self-Driving Car Among Adults
All Adults Smartphone Owners
And They Don’t Want To Pay Recurring Fees For
Self-Driving Car Software Updates
Source: Deloitte 2014
Less Than $10/Month
20%
More Than $20/Month
21%
$10-$20/Month
19%
I Wouldn't Want To Pay For
These Services
40%
Willingness To Pay For Self-Driving Feature
Businesses — Not Consumers — Will Be The
Biggest Adopters Of The IoT
Image: Cisco Devnet
In 2018, Nearly Half Of The IoT Will Be Business Devices
Businesses
Smart Cities
Connected
Home
-
5
10
15
20
25
2014E 2015E 2016E 2017E 2018E 2019E
BillionsofDevices
Estimated Number of Installed
IoT Devices by Sector
Source: BI Intelligence Estimates
Businesses Will Invest A Quarter Trillion Dollars
In The IoT By Decade’s End
Source: BI Intelligence Estimates
Hardware
Software and
Services
$-
$50
$100
$150
$200
$250
$300
2014E 2015E 2016E 2017E 2018E 2019E
Billions
Global IoT Business Revenue From Enterprise
The Main Business Benefit Is Higher Efficiency
Source: Cisco
1%
12%
13%
15%
22%
23%
24%
25%
29%
31%
34%
46%
Do Not Know
Time To Market
Interorganizational Collaboration
Data And Physical Security
Employee Satisfaction
Innovativeness
Revenue Growth
Profitability
Strategic Decisionmaking
Intraorganizational Collaboration
Customer Service
Operational Efficiency
Business Benefits Of The Internet Of Everything
Nearly All Industries Will Benefit,
But Early Adopters Are In Logistics …
Source: BI Intelligence Estimates
$- $50 $100 $150
Professional, Scientific, And Technical Services
Construction
Real Estate And Rental And Leasing
Mining
Utilities
Finance and Insurance
Retail Trade
Health Care And Social Assistance
Wholesale Trade
Information
Transportation And Warehousing
Manufacturing
Billions
Top Industries With Investments In IoT Solutions
2014E 2015E 2016E 2017E 2018E 2019E
And Manufacturing
Source: SAS 2013
4%
6%
8%
13%
15%
17%
17%
17%
18%
Consumer Packaged Goods
Consumer Durables
Metals and Mining
Medical Device/Pharma/BioMed
Aerospace & Defense
Telecom/High Tech
Consumer and/or Industrial Electronics
Automotive
Industrial Machinery
Which Industries Are Early IoT Adopters?
~1/4 Of Executives Want The IoT To Help Them Manage
Plants, Property, & Equipment
Source: Harvard Business Review 2014
19%
21%
22%
23%
36%
Fleet Management
Condition-based Monitoring
Energy Data Management
Security
Remote Asset Management
And/Or Asset Tracking
Areas For IoT Business Deployment In Next 18 Months
Survey Of Executives
Manufacturers See The IoT As A Way To
Keep Factories Running Smoothly
Source: SAS 2013
6%
19%
27%
30%
49%
62%
Support Sales
Gain Insight Into New Opportunities
Deliver System Upgrades
Better Understand Product Use
Maintain and Repair Products
Monitor Product Performances
How Are Manufacturers Using IoT Sensor Data?
Global Companies
Robots Are Another Area Set For Expansion
Image: jverston/Flickr
Industrial Robots Are Seeing Steady Adoption
Source: IFR, IFR Estimates, BI Intelligence Estimates
-
50
100
150
200
250
300
350
400
450
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Thousands
Global Industrial Robot Installions
Microsoft Is Using Them As Security Guards
Image: The Daily Dot
Amazon Is Saving Up To $900 Million Annually
Using Warehouse Robots
Image: Kiva
Consumers Are Mainly Interested In Floor-Cleaning Robots
Source: iRobot
0
2
4
6
8
1Q2010 4Q2010 3Q2011 2Q2012 1Q2013 4Q2013 3Q 2014
MillionsOfUnits
iRobot's Cumulative Shipments Of
Home Robots Since 2010
Aerial Drones Are Increasingly Being Used For Civilian
Purposes (US Regulators Notwithstanding)
Source: Teal Group, BI Intelligence Estimates, Michael Toscano
Civilian
Defense
0
2
4
6
8
10
12
2013 2015E 2017E 2019E 2021E 2023E
$Billions
Global Aerial Drone Market
Businesses Are Slowly Beginning To Test Drones
To Make Deliveries
Image: Amazon, DHL
And Delivering Medical Supplies To Inaccessible Areas
Image: Matternet
But For Now, Defense Is Still The Top Application
Source: U.S. Government Accountability Office, 2013 Permits
201
91
35
22
17
17
5
2
1
Department of Defense
Academia
NASA
Local Law Enforcement Agencies
Department of Homeland Security
Department of the Interior
Department of Education
Department of State
State Governments
Aerial Drone Permits Issued By US Government
Gain access to all BI Intelligence reports,
forecasts, charts, and data.
Click here to sign up for a trial membership.
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BII The Internet Of Everything 2015

  • 1. A Research Service By Business Insider THE INTERNET OF EVERYTHING:2015
  • 2. The Way We Access The Internet Has Shifted Dramatically Image: Reuters
  • 3. We Started Using It On PCs And Then Moved To Smartphones And Tablets Right Image: Blakespot, Flickr CC
  • 4. Now The Internet Is Moving Into Everyday Objects And Devices Source: YouTube, Amazon, August
  • 5. Inside Our Homes … Source: Siliconangle.com
  • 8. The ‘Internet Of Things’ Will Be By Far The World’s Largest Device Market Source: BI Intelligence Estimates 0 5 10 15 20 25 30 35 2013 2014 2015E 2016E 2017E 2018E 2019E Billions The Internet Of Everything Internet Of Things Connected Cars Wearables Connected/Smart TVs Tablets Smartphones Personal Computers We Are Here
  • 9. - 5 10 15 20 25 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E Billions Estimated Number of Installed IoT Devices Five-Year CAGR 57% It Includes All Those ‘Things’ That Formerly Weren’t Connected Source: BI Intelligence Estimates We Are Here
  • 10. Internet Of Things Combined Smartphones, Tablets And PC Market - 5 10 15 20 25 2013 2014 2015E 2016E 2017E 2018E 2019E Billions IoT Device Growth Vs. PC, Smartphone And Tablet Growth It Will Soon Be Larger Than The PC, Tablet, And Smartphone Markets Combined Source: BI Intelligence Estimates We Are Here
  • 11. $- $200 $400 $600 2014E 2015E 2016E 2017E 2018E 2019E Billions Estimated IoT Revenue It’s A Huge Revenue Opportunity For Both New Startups And Legacy Tech Companies Source: BI Intelligence Estimates We Are Here
  • 12. Hardware Software and Services $- $200 $400 $600 2014E 2015E 2016E 2017E 2018E 2019E Billions Estimated IoT Business Revenue Five-Year CAGR 44% To Provide The Software That Will Run The IoT … Source: BI Intelligence Estimates We Are Here
  • 13. - 10,000 20,000 30,000 40,000 2005 2008 2011 2014 2017 2020 Estimated Exabytes Of Data Globally By 2020 1 Exabyte = 1 Trillion Gigabytes … And Make Sense Of All The ‘Big Data’ The IoT Will Generate Source: IDC The Digital Universe, BI Intelligence Estimates We Are Here
  • 14. What Are The Main Drivers Of IoT Growth?
  • 15. By 2020, Half Of The Planet Will Be Connected To The Internet 16% 21% 26% 32% 38% 43% 50% 57% 2005 2007 2009 2011 2013 2015E 2017E 2019E Estimated Penetration Of Global Population Using The Internet Source: ITU We Are Here
  • 16. 0 300 600 900 1,200 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E Millions Global Number Of Homes With Wi-Fi Over 1 Billion Homes Will Have Wi-Fi Source: Strategy Analytics, BI Intelligence Estimates We Are Here
  • 17. Mobile And Other Connected Devices Will Help Us Control The IoT 0 2 4 6 8 10 12 2013 2014 2015E 2016E 2017E 2018E 2019E Billions IoT Controller Forecast Connected Cars Wearables Connected/Smart TVs Tablets Smartphones Personal Computers (Desktop And Notebook) We Are Here Source: BI Intelligence Estimates
  • 18. The Price Of Sensors That Make Up The IoT Will Keep Falling $1.30 $1.11 $0.95 $0.82 $0.70 $0.60 $0.51 $0.44 $0.38 2004 2006 2008 2010 2012 2014 2016E 2018E 2020E Average Sensor Cost Forecast Source: Goldman Sachs, BI Intelligence Estimates We Are Here
  • 19. Businesses Are Already Using The IoT To Improve Efficiency, Launch New Products … Source: Harvard Business Review 2014 35% 38% 44% 51% More Information To Feed Big Data/Analytics Efforts Improved Use Of Assets In The Field Increased Revenue From Services And/Or Products Enhanced Customer Service Benefits Observed By Early IoT Adopters Survey Of Executives
  • 20. … And Innovate! Source: SAP 2014 8% 9% 10% 16% 27% 30% Reduce maintenance costs and reduce system downtime Allow us to improve product design and build new innovation products Increase productivity of existing operations and infrastructure Improve customer satisfaction and increase consumer engagement Allow the creation of new and innovative business models Ultimately move from selling products to services How Will The IoT Most Benefit Your Organizations’ Business Goals?
  • 21. Companies Are Rushing Into The IoT
  • 22. VC Investments In IoT Startups Are Piling Up Source: CrunchBase, TechCrunch $34 $55 $193 $300 $341 2010 2011 2012 2013 2014 Investments In IoT Startups ($Millions)
  • 23. And M&A Activity Is Ramping Up… Source: Hampleton Partners IoT Control Platforms, $0.3 Semiconductors, $0.7 Connected Car Services, $2.8 Monitoring, $3.9 IoT Mergers And Acquisitions January 2012 – November 2014 ($ Billions) Total: $7.7 Billion
  • 24. There Are Barriers That Could Get In The Way Of IoT Growth
  • 25. Security Is The Biggest Concern … Source: Cisco, n = 7,000+ global executives 25% 25% 28% 32% 38% 42% Job Losses Due To Outsourcing Or Automation Greater Price Transparency/Lower Profit Margins Competition From New Rivals Regulatory Challenges Inability Of Our IT Systems To Keep Up With Change Threats To Data Or Physical Security Perceived Downsides To The Internet Of Everything
  • 26. The Top Devices Have Major Security Weaknesses Source: Hewlett Packard's Fortify on Demand 7 6 8 7 8 8 7 6 6 Use Unencrypted Network Services Vulnerable to XSS, Weak Credentials etc. Failed to Require Passwords Failed to Protect Against Hackers Discovering… Raised Privacy Concerns Insufficient Authentication Lack of Transport Encryption Insecure Web Interface Insecure Software/Firmware How Many Of The Top 10 IoT Devices Have These Security Flaws?
  • 27. Let’s Look At Some IoT Markets Individually
  • 28. Connected Home Gadgets Promise New Ways To Control Our Homes Remotely Source: Steve Kovach/Business Insider
  • 29. Enterprise Home Government/Infrastruc ture $- $200 $400 $600 2014E 2015E 2016E 2017E 2018E 2019E Billions Estimated IoT Revenue by Sector Connected Homes Are The Top Consumer Market For The IoT We Are Here Source: BI Intelligence Estimates
  • 30. Smart Home Energy Smart Home Security Smart Appliances Other Systems 0 400 800 1,200 1,600 2,000 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E (Millions) Global Connected Home Device Shipments By Device Category Home-Automation And Energy Applications Lead The Home Sector We Are Here Source: ABI Research, TechNavio, Pike Research, BI Intelligence Estimates
  • 31. The Nest Thermostat Was An Early Consumer Success Sources: Press Reports, Google, Morgan Stanley 0 50 100 150 200 250 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 Thousands Estimated Nest Thermostat Shipments
  • 32. Many Devices Use Energy Savings As A Selling Point Source: Goldman Sachs 80% 60% 50% 45% 40% Lighting Control Ventilation Control Room Heating Control Shutter Control Heating Automation Estimated Home Energy Reduction
  • 33. But Consumers Aren’t Completely Convinced Source: Affinnova • 41% of consumers feel strongly that IoT products they have seen or heard about are gimmicky • 58% feel strongly that they won't upgrade to IoT devices unless they can be more than just a novelty 41% 58%
  • 34. A Majority Still Say IoT Devices Are Too Expensive Source: Bloomberg West/Survey Monkey 16% 31% 58% Security/Privacy Concerns Not Tech Savvy Enough Too Expensive Over Half Of Consumers Are Concerned About Connected Home Device Prices
  • 35. The Connected TV Is The IoT’s First Major Consumer Success Image: Steve Kovach, Business Insider
  • 36. One-Third Of US Homes Already Have A Connected TV Source: eMarketer 21.6 26.8 35.1 41.3 47 52.7 18% 43% 2011 2012 2013 2014 2015 2016 US Households With Connected TVs (Millions Of Households; % Of All Households)
  • 37. Two Companies Own A Majority Of The Market Source: NPD Samsung 34% Vizio 26% Sharp 15% Panasonic 10% LG 9% Other 6% US Smart TV Market Share
  • 38. Connected Cars Are Also Going Mainstream Image: MacMixing
  • 39. By 2020, 100 Million New Cars Will Have Their Own Internet Connections Source: Telefonica, IHS Automotive, GSMA, SBD, BI Intelligence Estimates - 20 40 60 80 100 2010A 2012A 2014E 2016E 2018E 2020E Millions Cars Shipped With Built-In Connectivity
  • 40. Major Car Makers Are Already Producing Connected Cars
  • 41. But There Is Low Consumer Awareness Source: Harris Poll Interactive 2014 14% 42% 44% I Have Heard Of Them, And Am Familiar With What They Are/Can Do I Have Heard Of Them, But Am Not Familiar With What They Are/Can Do I Have Never Heard Of Them How Familiar Are You With Connected Cars? Survey Of US Car Owners With A 2009 Or Later Model
  • 42. The Most Desired Connected-Car App? Music Streaming By A Mile … Source: Accenture 25% 27% 31% 42% 45% 49% 63% In-Car Feature Enabling The Ability To Read And Dictate Emails Car-To-Car Communication Access To Social Media While In The Car Surfing The Internet Via A Monitor In The Car Car Identifies Traffic Signals, Congestion, Accidents, Delays, Warning The Passenger In Advance Of Such Situations A System That Allows The Passenger To Stop The Car If, For Example, The Driver Suffers A Heart Attack Streaming Music For In-Car Use Which Of The Following Services Do You Think Is Important For Your Passengers (Partner, Children, Etc.) To Have Access To In The Car?
  • 43. Cars Will Drive Themselves In The Future Source: Flcikr/Mark Doliner
  • 44. But That Market Will Remain Tiny For The Next 10 Years Source: Frost & Sullivan 2014, BI Intelligence Estimates - 40 80 120 160 200 2014E 2015E 2016E 2017E 2018E 2019E 2020E Thousands Estimated Autonomous Car Shipments
  • 45. And Consumers Aren’t That Interested In The Idea … Yet Source: Deloitte 2014 8% 10% Desire For Self-Driving Car Among Adults All Adults Smartphone Owners
  • 46. And They Don’t Want To Pay Recurring Fees For Self-Driving Car Software Updates Source: Deloitte 2014 Less Than $10/Month 20% More Than $20/Month 21% $10-$20/Month 19% I Wouldn't Want To Pay For These Services 40% Willingness To Pay For Self-Driving Feature
  • 47. Businesses — Not Consumers — Will Be The Biggest Adopters Of The IoT Image: Cisco Devnet
  • 48. In 2018, Nearly Half Of The IoT Will Be Business Devices Businesses Smart Cities Connected Home - 5 10 15 20 25 2014E 2015E 2016E 2017E 2018E 2019E BillionsofDevices Estimated Number of Installed IoT Devices by Sector Source: BI Intelligence Estimates
  • 49. Businesses Will Invest A Quarter Trillion Dollars In The IoT By Decade’s End Source: BI Intelligence Estimates Hardware Software and Services $- $50 $100 $150 $200 $250 $300 2014E 2015E 2016E 2017E 2018E 2019E Billions Global IoT Business Revenue From Enterprise
  • 50. The Main Business Benefit Is Higher Efficiency Source: Cisco 1% 12% 13% 15% 22% 23% 24% 25% 29% 31% 34% 46% Do Not Know Time To Market Interorganizational Collaboration Data And Physical Security Employee Satisfaction Innovativeness Revenue Growth Profitability Strategic Decisionmaking Intraorganizational Collaboration Customer Service Operational Efficiency Business Benefits Of The Internet Of Everything
  • 51. Nearly All Industries Will Benefit, But Early Adopters Are In Logistics … Source: BI Intelligence Estimates $- $50 $100 $150 Professional, Scientific, And Technical Services Construction Real Estate And Rental And Leasing Mining Utilities Finance and Insurance Retail Trade Health Care And Social Assistance Wholesale Trade Information Transportation And Warehousing Manufacturing Billions Top Industries With Investments In IoT Solutions 2014E 2015E 2016E 2017E 2018E 2019E
  • 52. And Manufacturing Source: SAS 2013 4% 6% 8% 13% 15% 17% 17% 17% 18% Consumer Packaged Goods Consumer Durables Metals and Mining Medical Device/Pharma/BioMed Aerospace & Defense Telecom/High Tech Consumer and/or Industrial Electronics Automotive Industrial Machinery Which Industries Are Early IoT Adopters?
  • 53. ~1/4 Of Executives Want The IoT To Help Them Manage Plants, Property, & Equipment Source: Harvard Business Review 2014 19% 21% 22% 23% 36% Fleet Management Condition-based Monitoring Energy Data Management Security Remote Asset Management And/Or Asset Tracking Areas For IoT Business Deployment In Next 18 Months Survey Of Executives
  • 54. Manufacturers See The IoT As A Way To Keep Factories Running Smoothly Source: SAS 2013 6% 19% 27% 30% 49% 62% Support Sales Gain Insight Into New Opportunities Deliver System Upgrades Better Understand Product Use Maintain and Repair Products Monitor Product Performances How Are Manufacturers Using IoT Sensor Data? Global Companies
  • 55. Robots Are Another Area Set For Expansion Image: jverston/Flickr
  • 56. Industrial Robots Are Seeing Steady Adoption Source: IFR, IFR Estimates, BI Intelligence Estimates - 50 100 150 200 250 300 350 400 450 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E Thousands Global Industrial Robot Installions
  • 57. Microsoft Is Using Them As Security Guards Image: The Daily Dot
  • 58. Amazon Is Saving Up To $900 Million Annually Using Warehouse Robots Image: Kiva
  • 59. Consumers Are Mainly Interested In Floor-Cleaning Robots Source: iRobot 0 2 4 6 8 1Q2010 4Q2010 3Q2011 2Q2012 1Q2013 4Q2013 3Q 2014 MillionsOfUnits iRobot's Cumulative Shipments Of Home Robots Since 2010
  • 60. Aerial Drones Are Increasingly Being Used For Civilian Purposes (US Regulators Notwithstanding) Source: Teal Group, BI Intelligence Estimates, Michael Toscano Civilian Defense 0 2 4 6 8 10 12 2013 2015E 2017E 2019E 2021E 2023E $Billions Global Aerial Drone Market
  • 61. Businesses Are Slowly Beginning To Test Drones To Make Deliveries Image: Amazon, DHL
  • 62. And Delivering Medical Supplies To Inaccessible Areas Image: Matternet
  • 63. But For Now, Defense Is Still The Top Application Source: U.S. Government Accountability Office, 2013 Permits 201 91 35 22 17 17 5 2 1 Department of Defense Academia NASA Local Law Enforcement Agencies Department of Homeland Security Department of the Interior Department of Education Department of State State Governments Aerial Drone Permits Issued By US Government
  • 64. Gain access to all BI Intelligence reports, forecasts, charts, and data. Click here to sign up for a trial membership.
  • 65. intelligence.businessinsider.com Henry Blodget CEO & Editor-in-Chief Emily Adler Senior Research Editor Marcelo Ballvé Editorial Director Cale Weissman Reporter Hope King Reporter Nicholas Quah Research Associate John Greenough Research Analyst Jessica Smith Research Associate Tony Danova Senior Research Analyst Mark Hoelzel Research Analyst John Heggestuen Research Analyst Cooper Smith Senior Research Analyst BI Intelligence