iidf case - team 3
TRANSCRIPT
Internet of Things
IoT - the concept of space in which all of the analog and digital worlds can be combined.
Internet of Things can be regarded as the link of networks, in which a small combined into one the
larger network.
This term was suggested in 1999 by Kevin Ashton, one of the first enthusiasts,
fascinated by RFID, and now heads the Research Center Auto-ID Center
at MIT.The number of devices in the IoE is expected to increase
dramatically in the forecasted period (and probably beyond).
Sources: BI Intelligence estimates, Geektimes
Internet of Things: Russia
335
527
980
+57.3%
20202013 2015
+86.0%
Internet of Things in Russia is expected to increase almost twofold over 5 years period, with a CAGR of almost 10%.
Russian IoT market, $
mln
Even though there are certain downfalls in Russian market of Internet of Things, it is still expected to grow 86% in the next 5 years to a total of $980 million.
Main drawbacks to the development of Russian IoT:
Absence of manuals for foreign technologies
Old thinking + old technologies
Current crisis may limit investments
As a result, the Russian IoT Market is forecasted to grow at a slower pace than Global:
2020
0,030
2015
0,014
-53,3%
Share of Russian IoT of Global IoT market, %
Source: J'son & Partners Consulting
Source: J'son & Partners Consulting, IDC
We expect following categories as growth drivers for IoT in Russia:
• Healthcare• Smart Home• Transport
• Buildings
M-Health market’s volume, 2017
World - $25,4 bln
Russia -$0,8 bln
Internet of things: Healthcare
The “digital health” sector of Russian IoT market includes about 60 active startups and less than 10 active investors, whose work is extremely uncoordinated.
Wearable devices
Search & reservation
Clinic management systems
Other Most active investors• IIDF (7+ startups in portfolio)
• Bright Capital Digital & Aurora Venture Capital (“Doctor na
rabote”)
• Skolkovo (accelerated “Medesk”; now primarily invests in
biotech)Forecast for the future
Russian “digital health” sector will develop at a slow pace because of:
• Nonadapted laws;
• Poor Internet coverage;
• Insufficient financing.
Sources: Rusbase, Crunchbase, Brookings, McKinsey&Co.
Sources: Analisys of our team, J'son & Partners Consulting, Nielson company
Domestic companies are inferior to foreign analogues in functionality as well as in marketshare
Price-is an obvious advantage of Russian’s systems “SmartHouse”
The key needs of users on the Russian market
4
86112
142
17633 30 27
28
0
10
20
30
40
0
50
100
150
200
2014 2015E 2016E 2017E
Volume of market, mln usd
Growth rate, %
The dynamics of market growth in Russia
vs
Refrigerator – Enables remote viewing of its content and
recommends recipes based on stored items;
Light bulb – Turns off when no one is nearby and can be
remotely activated;
Sprinkler system – Monitors weather over time and
determines when to turn on and shut off;
Scale –Aggregates data from other devices and provides a
constantly updated personal health plan;
Laundry washer and dryer – Sends an alert when the cycle is
done and can be remotely activated;
Tap water filter – Automatically shuts off when nothing in the
sink.
LOOK.in Z-wave WeMo
Devices
Typical light and outlet configuration2 in-wall dimmers
1 in-wall switch3 motion sensors
2 wall plugs2 rgbw bulbs
In total (includes
controller)460 $ 857 $ 619 $
Internet of things: Smart Home
Internet of things: Transport
Most active investors
• IIDF (The investment amounts to $500.000; 10+ startups in
portfolio)
• Cloud4Auto Ventures (The investment amounts to $350.000;
4+ startups in portfolio)
Auto Transport & Logistics
Sources: IIDF, Rusbase
0
200
400
600
800
1000
1200
2010 2013 2015 2020
Number of devices, mln Market's volume, mln$
Forecast for the market’s proxy
Internet of things: Smart Buildings
Smart system includes
Sources: Intel, Greenbiz, Memoori
Physical security
Lightning, temperature & humidity control
Fire detection & safety etc.
The system may look like…
Energy savings
Security
Comfort
Productivity & time saving
24,4%
2020
22,9
85
2014
The global market will grow with CAGR 24,4%
$, bln.
79
10,9%
20202014
147
$, mln.
The Russian market will grow less with CAGR 10,9%
And will need to develop…
Data protection
Speed channels: 4G, 5G, optic
Low cost solutions
Stability support
Market players
Smart buildings is a fast growing share of IoT, its main growth drivers are technology development and a strong demand from the real estate owners
Summary
Russian sector “Transport” has potential for development, but it is very slow for several reasons:
Poor Internet coverage;
Insufficient financing.
The “Digital Health” sector of Russian IoT market is pretty active, but uncoordinated.
The “Smart House” market in Russia is growing by 30% per year and it’s volume about 200 mln. $
Russian IoT market is still behind Western countries and will continue to be such in the future. Still, it will increase 86% by 2020.