china iot - market and ecosystm analysis
Post on 21-Oct-2014
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analyze the IoT (internet of things), M2M market in China, from standard, technology, market prospective. based on this analysis, the author aslo identify the current challenges and potential opputunities.TRANSCRIPT
China’s Internet of Things - Market and Ecosystem Analysis
May, 2012
Draft v0.1, Tony Zeng, [email protected]
Ecosystem Analysis
Executive Summary – Key Findings
IoT is booming in China with an average of 30% CAGR in the coming 2-3 years. Currently the development of IoT in China is mainly driven by the government . Other important vertical
HIGHLIGHTS
mainly driven by the government . Other important vertical industries, regions, and key players are identified as well in the following slides.Despite its promising future, IoT in China is facing some challenges such as no well-established industry standards in place, no well-defined business model has taken form, as well as the lacking of end-2-end solution providers and experienced operators
Executive Summary – Conclusions
HIGHLIGHTS
Opportunities have been identified in different IoT layers and vertical markets. In the coming 2-3 years, the most important industries are markets. In the coming 2-3 years, the most important industries are intelligent city (including public surveillance), intelligent transportation (telematics), smart grid, and mobile payment industry
Aiming at generating revenue and gaining market share in the vertical industries, it is critical to build up strategic alliance with int./ext. stakeholders to deliver end-2-end solutions, trying to get involved proactively in the standards/regulations establishment process and develop mutual trust with the local governments through interaction and cooperation
Agendaq Market and Ecosystem Analysisq Challenge and Opportunity q Product and Market Strategy
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Definition of IOT[ ]IoT: Internet of Things
Platform and Service Layer
App. layer
3333
IoT: Internet of Things
Layered Architecture:Perception, Transfer, Platform, Support, and Application Layers
Perception layer
Transfer layer
IoT in China: PAST, NOW & FUTURE
604.8
916.2
EXPONENTIALGROWTH
190.0 211.5 303.2
418.2
604.8
2010 2011 2012E 2013E 2014E 2015E
Yr. 2011: RMB 200 billion (~$38 billon)Yr. 2015: RMB 916 billon
3%
22%
37%
5%
IoT: Market Size W.R.T. Layers
Currently, the perception layer, the transfer layer, and the
HIGHLIGHTS
33%
the support layer the perception layerthe transfer layer the platform layer the application layer
the transfer layer, and the platform layer constitute the majority of the industry revenue (adds up to 92%) in China.
China’s IoT Development Tendency
Currently, 90% of the investment came from the government
It is anticipated that the enterprise/personal/home applications will ramp up starting from 2013
HIGHLIGHTS
# of Users Standards # of Users
Year2010 2013 2015 2020
Public Service: Intelligent City, Public Cloud, telematics ,etc.
Standards Published
Policy/Regulatory/Standard Overview
Policy:“物联网“十二五”发展规划 was published in Nov. 2011 and was endorsed by Chinese Premier Wen JiabaoCCSA (China Communication Standard Association) has started the standards drafting process from 2010, it is believed that the IoT standards will be published in 2013.
Highlights
The Most Important Vertical Industries
• Surveillance: Invasion detection, video surveillance, and smart home
• Smart Grid: remote meter, site monitoring
The early adaptors are:
Vertical market share per industry in ChinaSource: CCID, 2011
monitoring• Transportation: Car (i.e., taxi) Dispatching,
telematics• Logistic: Medical/food tracking• Others: Mobile Payment
The IoT Ecosystem in China (need to complete market landscape)
Sensor/IC vendor
HW VendorModule Vendor
Middleware and Application Vendor
System Integrator
Service Provider
Test Solution Telecom Operators
Government – Standard/Regulation
ConsultingConsulting
Sensor �������������� ������
IC���TI������������, ����������� ��
Module ������������ ��� !��Hardware "#$,�%��&�Middleware/Application VendorSystem Integrator
Oracle, '��,�(,� ��,�)�*,��+,, IBM, MSFT, Google Android
Telecom CMCC, CU, CTService Provider Bank Union
The Most Active/Important Regions in China
Currently, China's IoT industry has formed four clusters in the Bohai
HIGHLIGHTS
formed four clusters in the BohaiRim Area, the Yangtze River Delta, the Pearl River Delta and the Midwest Region.
2011 IoT Revenue in different regions of China, Source: CATR
>10Billion RMB<1 Billion RMB
Revenue in a specific region
Challenge and OpportunityChallenge and Opportunity
IoT is still Intranet of Things in China
• Fragmented architectures, no coherent unifying
Current Status: Intranets of Things
• Fragmented architectures, no coherent unifying concepts, solutions exist only for application silos
• No coherent approaches to implement the IoT have been proposed, yet
• Many island solutions do exist (RFID, Sensor nets, etc.)
• Little cross-sectorial re-use of technology and exchange of knowledge
Challenges of Migrating from Intranet of things to Internet of things
�No Regulations and Standards �
End to end Solution
Demanding from enterprise and personal/ home users��
�Business Model is not Clear
�IoToperating experience�
home users�
Opportunities in the Coming 1-3 Years
�Get involved in the drafting of Standards �
Build up strategic alliance with high-potential vendors, telecom op., and service providers � ��
�Develop projects in vertical Industries such as public surveillance, smart transportation���
Participate in government driven projects
Offer business and technology consulting service
�
Market and Product StrategyMarket and Product Strategy
Winning Winning Winning Winning
the the the the
Critical Critical Critical Critical
GroundGroundGroundGround �Market Market Market Market Strategy:Strategy:Strategy:Strategy:
IoTIoTIoTIoT is still in the is still in the is still in the is still in the ramp up phase ramp up phase ramp up phase ramp up phase
and and and and require/deserve require/deserve require/deserve require/deserve
investmentinvestmentinvestmentinvestment
• Align with strategic partner in order to • Act proactively together to pursue common
interest in standards establishment• Enable delivery of end-to-end solutions• Team up with domestic companies in order
to win government projects
Standard and government projects are the critical grounds
Market Strategy for the coming 1-3 years
�Gaining Gaining Gaining Gaining
Market Market Market Market
ShareShareShareShare�investmentinvestmentinvestmentinvestment
Engaging with Early Adaptors and Winning Market Position• Sell-through via telecom operators and service
providers• Leverage existing customer base (such as financial
industry) and solution (i.e. server, cloud)• Invest on high-potential mid-size vendors in the
high priority vertical industries • Focus on the most active/important regions
THANKS!THANKS!
Android V.S. Java Embedded• From layer prospective, Android is competing with Java Embedded in the
Perception Layer– Android is leading: Smartphone, Car Gateway, Smart TV– Java Embedded is leading in the small footprint area: Feature Phone, Java Card, module,
Mobile Payment Card, RTOS system, RFID reader• From Vertical Markets point of view
– Java embedded has more references in vertical markets such as finance, smart grid– Java embedded has more references in vertical markets such as finance, smart grid• End to end solution
– Java has much better capability of delivering End-2-end Solution– Android focus more on the terminal
• Operating Experience– Java system has been deployed in all the layers and the operators and services providers have
gained lots of experiences
China Standard/Regulation Authorities
Regulation Related
CCSA and TCs
• Standardization Process
Standardization Process
Identifying Potential Alliance
Building Alliance is Important• From standard prospective• From winning government project prospective• From end to end solution prospective
Potential Alliance
• From end to end solution prospective
The list of Potential Alliance (TBC)• Perception Layer: yuanwangu, ZTE, Huawei…• Transport Layer: CU/CMCC/CT• Platform/Service Layer: UnionPay• Application Layer: Neusoft, Tencent…
Identifying Focus Area
• Government driven projects
Vertical Industries
• Government driven projects• Intelligent Transportation• Intelligent City• Mobile Payments Terminal