how 4.5g iot enables vertical industries...nb-iot parking company business parking lots connection...

How 4.5G IoT enables Vertical Industries

Jörg Diederichs

CTO/VP New Business

Huawei Europe

Market and Trends

3

IoT is Leading Vertical Industries Innovation and Transformation

60% of organizations 24% of IT budgets 63% of IoT adopters

IoT as a Service

Home

1.1BVehicle

1.6B

Utility

3.6B**

Smart City

6.2B

Elevator

23M

Track & Trace

2.5BRetail

100MHealth

650M

are using & implementing IoT

service*are allocated to IoT are seeing "significant" returns

on investment

90%+ business store IoT data and applications in the cloud

* 1,096 qualified respondents from 17 countries across11 verticals

** IoT connections by 2020

Source: Machina, Circle-research ,Gartner, IDC & Huawei Research

OpportunityIndustry Technology

4

$89B Market with 3.5B Connections for Telco by 2021

Operator Participation

• electricity

• Lighting

• white goods

Smart Home

• bicycle

• Water metering

• smoke detector

• Parking

FMS

UBI

• gas metering

• environment

• sewer covers

• tracking

• fire hydrant

• agriculture

• animals

$16B

$15B$18B

$16BSmart City

3.5B Connections by 2021

Ma

rket

siz

e b

y 2

02

1

Source: Huawei IoT MET

2017 Focus: Water Metering, Parking, Lighting, Smart Home


2 15 27 30 33 34 53 65 96 129 139 147 176

234 287

464 705

836

fire hydrantparking

environmentsmoke detector

agricultureanimals

sewer coversbicycle

FMStracking

white goodsUBI

lightingsmart home

gaselectricity

otherswater

Operator Addressable

Unit: Million

5

Huawei IoT Project Scope

What we do:

• Wireless networks, enterprise IoT

gateways, home IoT routers

• Cloud based IoT platform

• IoT chips (with built-in Huawei LiteOS)

• Ecosystem development: enabling partners

and Telco to meet IoT needs

What we don't do:

• Applications

• IoT device development

• IoT device reselling

• End-to-end integration

• NB-IoT module

IoT Connection Management Platform

2G/3G/4G/

eLTE/NB-IoT/5G

Agile IoT gateway

Smart home gateway

Public Utilities

Huawei LiteOS | Chips | Module

Industry 4.0 Smart Homes Green Energy

IoT Infrastructure

Security

Big data security

threat prevention

IoT firewall

Endpoint

security protection

Connection

MgmtDevice Mgmt

Application

Enablement


6

4.5G Use Cases

7

Street Parking: IoT Parking as a Service

Labor cost**

$1.62M

Revenue*

$2.74M

* Revenue: $2.74M = 1,000 parking spaces x $2.5/day x 365 days x 3 years

** Labor cost: $1.62M = 60 staffs x $750/month x 12months x 3 years

95% Revenue

Parking

Company

$5.21M

2X• Available parking space inquiry

• Missing payment prevention

• Device HW* + installation + integration + 3 year-

maintenance

• Improved reading success rate & battery life

• Fast/easy application integration, secure access

• Device status & location visualization

• Alarm when battery low

• Open API to 3rd parties (maps, cities, etc.)

60 → 10 headcounts $0.27M

5% Revenue

$0.27M

Telco Business Modeling

Manual Parking

Management

Smart Parking by

NB-IoT

Parking Company Business

Parking Lots

Connection

IoT platform

Device

$0.46

ARPU

$7.5

ARPU

Low Turnover Rate High Labor Cost Heavy TrafficInvisible Parking

Space

Parking Company City Driver

Global Road Parking Spaces

by 2020

Challenges

Telco shares

5-10%

revenue

24M

Parking

Mgmt

System

3rd Party

APP

1,000 parking spaces in 3 years

*Parking sensor cost: approx. $130 / unit

BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator

8

Power Consumption Baseline

Actual Power

Consumption

Cloud Service

Precision Control

/ Intelligent management ~20%

LED Replacement~50%

Power Saving

Connection Service

LED Replacement+

Individual Light Control +

IoT Platform / Cloud Service

Power Saving

Smart Lighting: Value-added Service based on Cloud

•Group Control

•Precision Operation

•Ceiled Power Saving

•Complex Operation &

Maintenance276 millions

LED replacement

Global Market by 2020

Light-On Rate

(Not only about a city image)

Cloud and Platform Services beyond Connection

• NB-IoT Network QoS: Improved light-on rate

• Application integration

• Remote light control and configuration

• Device status & location visualization

• Alarm when unhealthy

• Open API to city, police, etc.

$x / month

$x/ month

Connection

Service

IoT Platform

Device

EMC

“Saving is Earning”

Lighting Operator Project

(40,000 units)


9

Water Metering: A Start to Smart Water Service

Misreading

compensation

Leakage loss

Meter reading cost

Meter

Amortization

0.7

27.3

5.7

2.9

Manual reading

(million USD/year)

NB-IoT smart utilities

(million USD/year)

0.14

19.1

3.2

5

30%

80%

Water Company Business Telco Business Modeling

$4.6US

/meter/year

40%

• Device status, location & alarm

• Remote device control,

configuration & upgrade

• Open API

• Improved reporting success

rate in all scenarios

Service

IoT

Platform

Meter

Connectivity

VibrationFlow PressureTemperature

700k meters

High labor cost

& misreading

compensation

Leakage Multi-tier Pricing

Telco market of smart meters by 2020

410M 240M 90M

Cost Saving $9.3MUS/year

700K Water Meters,12 Years Life Cycle

Telco's Revenue:

$ 3.2M / year

Telco Income : $3.2MUS/year

($1,600/site/year )


10

Electricity Metering: More Reliable, Controllable & Adaptable

• 80% smart electricity meters across Europe by 2020

• 20-20-20: CO2 emission down by 20%, green power up

to 20% & energy efficiency up 20% versus1990

• Dynamic balance between non-green and green power

production to avoid grid instability

• UPGRID project (2014): a fund of €12M to support

smart metering trials in Portugal, Spain, Poland &

Sweden

Suburban & Remote Area

• Low density, high

power line noise

Dense Town Center

• High density, complex

architecture, difficult

wiring

Factory & Plant

• Complex electromagnetic

environment

Remote power shut-down, configuration & upgrade• NB-IoT ubiquitous nation-wide coverage

• NB-IoT complex environment penetration

• Meter status diagnosis, maintenance & upgrade (vs. PLC meters

& data concentrators)

• API data service suites (dynamic power, tiered pricing…)

• Batch support of meter group management

• Secure access to electricity devices

• Hybrid electricity & gas metering management

Connection

Service

CloudIoT

Platform

Meter

Improved metering success rate: > 99%

Telco-grade network security

Dying-gasp alarm & reporting: < seconds

NB-IoT module inside Smooth evolution for Smart Grid via NB-IoT

• Low metering

success rate:

< 95%

• High wiring cost

Noise

Attenuation

Distortion

Inte

rfere

nc

e

Meter

Supplier

Govern-

ment

Grid

Operator

Telco

Operator

Contributing elements: transformers, converters, LEDs, solar panels, chargers…


11

Smart Gas Metering: Improved Management through Cloud Service

Administrator

Monitoring both meter and

pipeline: pressure, temp.,

corrosion, valve status ,,,

2.2M on pipe + 1.1M with tanks*

IoT

Platform

Application

CloudService

Connection

• Multi-vendor meters adaptation, no lock-in

• Meter mgmt: valve control, status & battery level

• Fault location & trouble shooting

• Data analytics: tiered-pricing

• Cloud data storage, computing & security

• Fleet management

• Massive meter secure access

• Meter reading success rate improvement

• eSIM planned to support

Water Meter

• Trusted and reliable cloud

services (Computing & Storage)

• Carrier-grade E2E security

service

• Local IT professional service

Gain from improved metering success rate: 75 - 98.5% to 99.5%

Gain from operation automation from cloud services: $xM / year

Gain from maintenance services: $xM / year

NB-IoT

* 15% transformation per year to pipe meters

2G/3G/4G/NB-IoT

Too many kinds of meter,

application and network to

manage

Gas tanks distribution

& monitoring

3G/4GIoT Platform


12

Fire Detection: Simpler, Safer and Saving

occurred in 9 small public areas83.7% fire

Hospital / kindergarten / shop / restaurant / hotel / bar / internet cafe/ SPA / SME

Smoke Detectors2 M

Independent smoke detectors in Shanghai by 2023

• No relay (gateway)

• Less maintenance

• No wiring

Smoke

detector

￥200

Traditional solution NB-IoT solution

Service

￥150 /10 yrs

Maintenance through cloud

Refurbishment Program of Municipality

10-year contract: ￥350 / detector (hardware + connection + maintenance)

NB-IoT RAN

Cloud gateway, protocol resolution

& cloud storage

Service

Connection

IoT platform

Wo Cloud

* Connection tariff based on 2G: ￥0.5 / month

￥1 / m

on

th*

Cloud Service

￥12 / year

Cloud & Distribution Services

** Maintenance : gateway / wiring maintenance + detector cleaning: ￥5 / 2 years

Installation: ￥30

+

gateway: ￥28

+

Traditional

detector

(Maint.**+ 2G)

￥15 / year

• Migrated from OTT cloud to Telco cloud

• As a sales channel including fire detector

Fire DetectorSales channel

Gain: ￥53

Installation ￥5

+

NB-IoT Detector

(Maint.**+ NB-IoT)

￥15 / year

Sales

Commission

BicycleWhite GoodsFire

DetectionGasElectricityWaterLightingParking Elevator

13

White Goods: An E2E Life Cycle Management

Distribution Delivery Maintenance

Wrong

Placement

WIFI

ConfigurationConnectivity

Design ManufacturingDistribution &

WarehousingUsage Recycling

Location & Geo-fenceWrong Placement

NB-IoT module

provisioned & configured

Distribution

Delivery

MaintenanceConnection initiated

upon out of warehouse

Complex WIFI

configuration

Few appliance

connected

RFID• device mgmt.

• location

• data flow

• data storage

Connection

Cloud IoT Platform

Appliance

• geofence

• big data analytics

• host service

• other services

• low power consumption

• wide coverage


Service

• tracking & positioning

• Monitoring & controlling

$x/ SIM for 6 years

$xx/ device for 6 years

$x charge to power utility for data use thru API


14

Green Cycling: Between Home and Office

8 times/day of location reporting

Count of days onsite at office

50% usage for incentive €22/month

120K leases /yr 450K sales/yr Incentives

Scattered enterprises

to manage

Risk of fraud use &

claim for incentives

• NB-IoT ubiquitous nation-wide coverage

• Potential positioning replacement to GPS (3GPP R14)

• Controlled power consumption & battery life (PSM)

• Remote firmware & software upgrades

• Multi-sensor management & faulty location

• Cloud multi-tenant hosting & independent secure access

• GPS & accelerometer (ph1)

• Air quality & vibration sensors (ph2 - TBD)

Connection

Service

CloudIoT

Platform

Device

Bicycle

• Dashboard (collective)

• Bike status (individual)

~ 10,000 bikes by 2018

• 36-month contract btw employer & lease company

• Optional purchase with 40 – 60% discount at end of contract

36-month

contract

Contribution

(€ net)Benefit

Employee 990A high-class bike (€4,600) +

insurance

Employer 1,500Savings from sick leaves & car

parking

Government (incl.

tax loss)1,900

To limit traffic, lower CO2 &

stimulate health program

Tracker

Application

45K by 2021


15

Sharing Bicycle: Cheap, Convenient & In-Scale

• NB-IoT Network QoS: improved unlocking success rate

• Alarm when battery is low

• Geo-fencing capability prevent from fraud use

• Precision timing for charging and stop-charging

• Processing capability of millions of bike

• Remote control, configuration & upgrade of lock

• Open API, e.g., postpaid credit assurance, data to city, etc.

• NB-IoT module

Connection

Service

Lock

CloudIoT

Platform

Bicycle

• Fixed password, risk of

password shared for free

usage

• Location unknown, bicycle

stolen

• Electricity generating,

higher cost

• Shaft generator, bad

experience

• Solar energy, shaded by

weather, ad flyer, …

• NB-IoT + GPS*

• 2-year battery life

• 20dB better coverage

• Unlock remotely

• Right charging (30s after

locking)

Search

in E-map

Scan

QR Code

Remotely

Unlock

Ride

& Record

Lock

& Pay

Navigate

to Bicycle

*GPS will be optional upon NB-IoT positioning feature available 2018Q1


16

Cost Saving $4.88M/year

Connection

Service

Agile Controller

Elevators

IoT Platform

AR IoT Gateway

Connectivity management, data pre-analysis,

open API

3G/4G/eMTC coverage and

bandwidth assurance

Data preprocessing, protocol adaptation,

local customized APP, policy execution …

Gateway management: remote fault diagnosis,

network resources dynamic allocation$ 1M

Traditional

IoEL$ 4.94M

$ 4.13M

$ 2.47M

Elevator Manufacturer Business

$ 7.54M

Accessories

Maintenance


39%

Maintenance:New Opportunity of Growth

Telco Addressable Market by 2020

$6.5

ARPU$0.7

ARPU

14M elevators48%

40%

Market Segments Allocation

Equipment

Maintenance by 3rd party

Manufacturer MaintenanceChallenges

12%

Connected Elevator: Predictive Maintenance as a Service

(10K elevators maintained in this case)


17

Partner Eco-System

18

Cooperate with Global Cultivate with Local

Huawei’s ‘Glocal’ Ecosystem Supporting Telco IoT Business

EC-IoT

74

IoV

45

Smart Home

204

NB-IoT

466

790

Vertical Partners: 343

Device Partners: 44740

34

50

154

231

235

23

22

* Data up to May. 31, 2017

Global Partner

…………

Local Partner

89

57

2329

6

Home IoT Partners

19

711

26

11

45EC-IoT & IoV Partners

66

50 48

31

5037 32

152NB-IoT Partners

ProgramEuropean

Partners

Global

Partners

19

NB-IoT Ecosystem is Taking Off in Full Speed

240+ NB-IoT partners from 20+ industries

Smart Water Smart Gas Smart Grid Smart Parking

Smart BicycleSmart Building White Goods Health Care Smart Industry

Street LightingTracking & Tracing MonitoringAgriculture

ProgramEuropean

Partners

Global

Partners

20

,,

Effective Partners Cooperating with Huawei in European Market

https://ww w.q-free.com/

http://www.nedapidentification.com/

AOD Group

http://intelilight.eu/company/

http://www.aodgroup.net/en/about/

Gas MeterElectricity MeterWater / Electricity Meter Gas Meter

http://www.janzce.pt/https://www.kamstrup.com/ https://www.fiorentini.com/ http://www.china-goldcard.com/en/

http://www.lighting.philips.com/

http://www.kone.com/en/

www.schindler.com/

ProgramEuropean

Partners

Global

Partners

21

Joining Huawei’s IoT Developer Community

http://developer.huawei.com/ict/en/site-oceanconnect

Developer

Guide

Demos

API

reference

Develop

kits

ProgramEuropean

Partners

Global

Partners

Copyright©2016 Huawei Technologies Co., Ltd. All Rights Reserved.

The information in this document may contain predictive statements including, without

limitation, statements regarding the future financial and operating results, future product

portfolio, new technology, etc. There are a number of factors that could cause actual

results and developments to differ materially from those expressed or implied in the

predictive statements. Therefore, such information is provided for reference purpose

only and constitutes neither an offer nor an acceptance. Huawei may change the

information at any time without notice.

Thank You.

how 4.5g iot enables vertical industries...nb-iot parking company business parking lots connection...

Documents