This is Iot
Internet of Things or IoT is already having a major personal, social and business impact. It enables radical innovations and totally new services that either change businesses or transform entire industries.
Living Connections make everything possible
We live in an age of unprecedented technological change; there has been more change in the last few decades than in the rest of the entire industrial age. Today, 5 billion people around the world are connected, and that connectivity is transforming the fabric of society and business.
Devices that did not exist a few years ago are now used on a daily basis because they make our life easier and more fun. From smart bands to track our training, to connected cars that become part of intelligent transport solutions. As products get smarter and more connected, we get more relevant information on which to base decisions – for our daily lives and for business.
And this is just the beginning.
|• What is IoT?|
|• The drivers|
|• The benefits|
|• The technology|
|• IoT in the Nordics|
What is IoT?
IoT is the growing worldwide network of objects with sensors, software and connectivity built in. To form an Internet of Things, you need to connect multiple devices in clusters. These combine into systems, and then into systems of systems. For it to work in a meaningful way, these devices must collect and share data.
An apparently simple product might now have complex systems that include hardware and software, sensors, microprocessors, data handling and storage.
These products can get to know our habits and can predict our patterns. They can accurately adapt and respond to our needs without us having to tell them to. And they can join forces with other types of products in order to create even deeper impact on our lives.
There are three main motivating factors behind the uptake of IoT: efficiency, safety and sustainability.
Businesses are increasingly realizing the opportunities in product and service innovation, improved customer insights and customer relevancy, and in creating more responsive real-time operations.
Todays IoT growth is due to a combination of business motivation and technological maturity. There are two key factors:
Devices: Improvements in minimizing devices and improving processing power
Connectivity: Fast, consistent and affordable always-on connectivity
The value chain is a critical success factor
Many analysts identify the ability to bring together the necessary actors in the value chain as critical to the success of delivering complete solutions to customers. This is exactly what the Telia Company IoT Partner Program aims to do.
IoT offers major benefits for every area of business and society. For example:
Energy: Peak-load on power lines can be reduced by 20% by using smart grids, IoT measurements and accurate pricing information, increasing efficiency and ultimately saving money.
Security: IoT will improve safety and security both at work and in people’s free time. More secure cash in transit, safer elevators and cars, more efficient locks and alarms. In the home, in public places, on public transport, everywhere.
Health and medical care: IoT-based sensor systems can shorten intensive care periods up to 20% and free up resources so that 15% -20% more patients can receive effective treatment. Even mortality rates can be substantially reduced by use of IoT-based monitoring in intensive care.
Road safety: Intelligent traffic systems can help reduce accidents by 15% and shorten response time in emergencies by 20%. European eCall means that all new cars will be online from 2014.
3G and 4G
IoT is not just about SIM-based communication. There are many techniques for connecting machines, sensors and control equipment together. Technologies consisting of both wired and wireless communications, including RFID, WiFi and ZibBee, in addition to GSM, 3G and 4G. But even broadband, Internet and private wide area network (WAN) are used to connect equipment.
The benefits of GSM and 3G/4G technologies are many. First, the capacity to reach all machines everywhere. Second, the cost of radio modules has dropped significantly.
However, in the future many devices will still connect through other wireless access methods to a hub, collecting information and forwarding it via GSM and 3G. For example, sensors and transducers in elevators, door locks, temperature sensors or electricity meters will not be provided with a SIM card in the first place, but will communicate via a gateway which in turn is 3G/4G connected.
5G – the next chapter
By 2018, we expect 5G to start rolling out to operator networks. IoT applications will be a big part of 5G. 5G networks will be multipurpose and will support different virtual networks with different characteristics through network slicing – a dedicated slice for remote water metering for instance. Using a common infrastructure will stimulate many new business models by removing the need for separate infrastructure investment for different verticals.
Some of the key emerging applications for IoT, such as remote operation of machinery and intelligent transportation, require new types of connectivity. 5G, with its efficient network slicing and extremely low latency, will be an important driver for the next chapter of IoT possibilities.
To meet the needs of such widely varied use cases, 5G systems will be built with technologies that use logical instead of physical resources, and which enable operators to provide networks on an as-a-service basis. Effectively, this means networks on demand.
Differing capacity needs
The choice of technology and type of IoT subscription depends on the capacity and functionality of various machines and equipment required. There is a major difference between an electricity meter that might send one text message a week and a traffic surveillance camera that streams high quality video continuously. There are also differences in demands on the SIM cards in various applications. Some applications require safety features on the SIM card, while industrial installations might require SIM cards that can endure a harsh environment for up to 10 years.
IoT in the Nordics
The Nordic countries continue to be a hotbed for Internet of Things. The region is among the most mature markets in the world with almost four times as many connected devices per person than the rest of the world.
Between 2014 and 2015, revenues and connected devices grew by 22 and 16 percent, respectively. The explosion of demand for Consumer Gadgets are reflected in €500mn worth of growth. This accounts for half of the growth in total IoT revenues in the Nordics 2014-2015.
The increase in the number of connected devices was largely driven by the connected building sector, which accounted for over 40% of the total increase.
IoT revenues in the Nordics is expected to grow by 17% per year, reaching €12bn by 2020. Connected people is the fastest-growing area, with over 40% revenue growth per year. Half of that growth is expected to come from home healthcare. Connected vehicles is the second fastest growing segment, with almost 30% annual revenue growth. This is largely driven by stolen vehicle recovery and vehicle navigation. Connected industrial processes are third, with annual growth around 20%.