Internet of Things: Business Opportunities 2015-2025

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The Internet of People runs to billions of devices already. The Internet of Things will involve ubiquitous smart objects that sense and communicate directly over the internet creating better data without human intervention. Its time has come because there are now enough IP addresses available for tens of billions of items, hardware costs are now affordable and large companies are backing it.

There are far more things than people so it could overtake the IoP business eventually. In 2024, tens of billions of smart objects are likely to be involved. Some call the Internet of Things (IoT) as encompassing the Internet of People (ubiquitous internet enabled personal electronics) but the two are very different in construction, applications and maturity. This report concentrates exclusively on the new phenomenon of the IoT use Cisco terminology for smart objects with IP addresses and usually with sensing i.e. sensor networks oriented.

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RFID is scarcely involved. Key are microcontrollers, potentially billions a year, with sensor interfaces and wireless interfaces. These will serve human needs from medical to entertainment without human intervention every time. IDTechEx finds that a huge business awaits in converting networks to IP and providing security and links to legacy systems. It involves deciding whether to perform analytics in the device or in the network, and goals for analytics such as anomaly detection, prediction, comparison, or optimization. Cisco, IBM, AT&T and other giants are in good position to do this – system integrators win commercially. By contrast Intel, Texas Instruments and others are trying to sell the microcontrollers against rock bottom prices from China already but the Western and Japanese suppliers have many uniques from advanced wireless interfaces to lowest power.

IDTechEx finds many new standards and collaborations as even the giants cannot go it alone. They span from the 2008 IPSO Alliance to the recent Linux Foundation AllSeen Alliance and the 2014 AT&T/IBM Alliance variously aimed at overcoming standards and compatibility issues and sharing research and capability. There is particular interest in industrial and commercial applications.

Table of Contents

1.1. Report structure: the key IoT business issues addressed
1.2. Business opportunities
1.2.1. Why now?
1.2.2. Caution needed – forecasts
1.2.3. Commoditisation of smart objects
1.2.4. Largest business will be software and services
1.2.5. Government expenditure
1.2.6. Business opportunities through the value chain
1.2.7. Near term forecasts will be reduced but potential is great
1.2.8. Proliferation of small projects
1.2.9. Timeline for Internet of Things business opportunities
1.3. Definitions, drivers, impediments, standards, collaborations, winners
1.3.1. Definitions and allied subjects
1.3.2. Megatrend drivers
1.3.3. Impediments
1.3.4. Standards and collaborations to the rescue?
1.3.5. Winners
1.3.6. Investment

2.1. The internet
2.1.1. Cloud and Fog computing
2.1.2. Internet data is almost all human in origin – little progress
2.2. Internet of Things first attempt
2.2.1. What happened
2.2.2. Failure to learn the lessons

3.1. The Internet of Everything
3.2. The Internet of Things in context
3.2.1. Origins
3.3. Internet of Things today
3.3.1. Now about internet-enabled smart objects
3.4. Internet of Things value chain
3.5. Market size and winners
3.5.1. Today
3.5.2. Potential
3.6. Forecasts from others
3.6.1. Billions of IoT smart objects
3.6.2. Big picture from Cisco
3.6.3. How many internet connected things to 2020?
3.7. Basic definition and trends
3.8. Detailed definition
3.8.1. Closely allied technologies
3.8.2. Another convergence
3.8.3. IoT vs IoP
3.8.4. Active RFID
3.8.5. Focus on sensor networks
3.9. Wearable electronic devices
3.10. Wireless sensor markets
3.10.1. Overview
3.10.2. ZigBee and allied markets
3.10.3. Relevance to smart grids
3.10.4. Smart homes
3.10.5. Convert to IoT?
3.11. IoT visions
3.12. IDTechEx forecasts for wearable electronics, RFID, WSN
3.12.1. Forecasts for allied products and networks
3.13. RFID market 2014-2025 including Real Time Locating Systems and Wireless Sensor Systems in the Active RFID category

4.1. Automotive examples of IoT market
4.1.1. Connected vehicle electronics
4.1.2. Connected advertising on vehicles
4.2. Energy companies and smart grid
4.3. Retail example of IoT
4.3.1. Displaydata UK
4.4. Internet cities and IoT
4.4.1. Songdo Korea
4.4.2. Seven cities in India
4.4.3. Yokohama Smart City Project Japan
4.4.4. Dubuque USA
4.4.5. IEC smart city activities
4.4.6. Components
4.4.7. Miniature, low-power processors and sensor microcontrollers
4.4.8. Sensors
4.5. Healthcare – potential for conversion to IoT?
4.5.1. Wearable electronics and healthcare
4.5.2. Autonomous connected health sensors: codified condition monitoring
4.5.3. Real-time racing car diagnostics for people
4.5.4. iPacify baby dummy
4.5.5. Connected BAN
4.5.6. Connected WMTS
4.5.7. Frequency issues
4.5.8. FCC MBAN

5.1. Connectivity options
5.1.1. Transfer Jet
5.2. Power management: ultra-low power circuits and energy harvesting
5.3. Energy harvesting meets low power circuits
5.3.1. Market demands for energy harvesting
5.3.2. Ultra low power energy harvesting circuits
5.3.3. Energy harvesting Body Area Networks
5.3.4. Power amplifiers at ultra low power
5.4. Pervasive security control
5.5. Processing at the edge: Samsung ePOP and 64 bit processors
5.6. Impediments to IoT rollout
5.7. Central monitoring and troubleshooting of IoT networks
5.8. Investment in IoT companies

6.1. Collaborations and new standards work
6.2. NEC overview of M2M and IoT
6.2.1. The future structure of M2M
6.2.2. Standards beyond traditional M2M enable secondary markets

7.1. Interviews concerning Internet of Things
7.1.1. amBX UK
7.1.2. Cisco USA, Ireland, UK
7.1.3. DanMedical UK
7.1.4. Prophesy Partners UK
7.1.5. SmartKem UK
7.1.6. Telegesis UK
7.2. Interviews concerning wearable technology and IoT
7.2.1. Accenture USA
7.2.2. Anitra Technologies UG Germany
7.2.3. Antje Paul Knessel Netherlands and Germany
7.2.4. Conductr Canada
7.2.5. Eyeqido Germany
7.2.6. ICE Germany
7.2.7. Intel USA
7.2.8. NanJing KeLiWei Electronic Equipment China
7.2.9. Sony Japan
7.2.10. Sunfriend Corp USA
7.2.11. SwiftAlarm Germany
7.2.12. ULOCS Sweden
7.3. Invitation-only Cisco meeting Internet of Everything London April 2014


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