NFC & The Growth of Connected Consumer Electronics Devices

Paula HunterNFC Solutions SummitJune 3-4| Austin, TX

Agenda

Internet of Things Global Market Situation Convergence - IOT and NFC NFC Forum Update

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What is the Internet of Things?

What is the Internet of Things?

A world in which every device that produces data can connect to the Internet Remote sensors Home appliances Consumer electronics Heating/cooling systems Office equipment Automobile engines… and many, many more

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What is the Internet of Things?

The Internet of Things removes barriers:– Machine-to-machine– Machine-to-people– People-to-machine

The Internet of Things promises:– Greater access to data– Greater management of data– Greater control of devices

Gartner: 26+ billion connected devices by 2020

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Benefits of the Internet of Things

Increased productivity Fewer steps Less data re-entry Greater, easier control Better coordination Data analytics Cost savings

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Business Examples of the Internet of Things

According to Information Week: Union Pacific cut train derailments by

75% using remote sensors Dubai Aluminum used sensor data to

improve efficiency and increase output by 3.4%

FedEx expects to save $9 million/year with truck sensors for more efficient dock assignments

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Consumer Examples of the Internet of Things

Wearable baby monitors

Cars that send alerts for service needs

Smart thermostats that automatically adjust the temperature

Ovens that preheat in time for your arrival home

… and many more

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What Does the Internet of Things Require?

An inexpensive means of providing intelligence

Easy network access

A way to link physical objects to the online world

A means of easy user control

NFC-enabled chips

NFC Connection Handover

NFC tags

Intuitive tap interface

NFC Provides:

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NFC TechnologyGlobal Market Situation

Recent Developments

First NFC-enabled household appliances launched

Wearables market takes off First nationwide NFC payments

rollout in US New HCE feature in Android 4.4 Top payment associations

launch HCE solutions Major North American coffee

shop launches NFC pay New NFC/Bluetooth LE solutions

– Smart thermostats, hybrid beacons

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NFC Phones Available Now(Representative)

Flagship models with NFC Samsung

Galaxy S4 & S3 LG G2, select

Optimus series HTC One series Motorola Moto

X Blackberry Z10

& Q10 Nokia select

Lumia series Sony select

Xperia series Google Nexus

4/7/10, Galaxy Nexus

Android, BlackBerry, Windows Phone 8all support NFC at operating system level

100% of Top 25 Amazon US contract phones

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DLI 9000

NFC Tablets(Representative)

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NFC-enabled tablets on the market or coming soon

Google Nexus 7

Kuoziro FT701W

Asus Vivo Tab/Tab RT

HP Elitebook Revolve

Google Nexus 10

Asus Padfone Infinity Asus Vivo Tab

Smart

Asus Padfone 2

BWC ToughSlate Fujitsu Arrows Tab

HP Elitepad 900

Asmaitha Sruta 7” Tablet

7″Cetrix CT973G Cetrix CD661

Samsung NFC-enabled laser printer

More NFC Devices

Additional types of NFC devices available now or on the way

Moneto: NFC microSD for the

iPhone & Android

Revosys V5 taxi terminal/tablet

ViVOtech NFC payment terminals

Sony RC-S380 reader/writer

Glidepoint NFC trackpad

Smart Meters for utility companies

Nintendo Wii U controllers

Barclay CardPayment wristbands

RhythmTrak Heart Monitor

I-O Data WiFi Router

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HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit

NFC Laptops

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More N-Marks in the World

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2,708 downloads since 2009

2009 2010 2011 2012 2013

198 217

517

722

843

N-Mark Licenses per Year

Analyst Forecasts

ABI Research– 125M NFC handsets shipped in 2012; 285M shipped in 2013; 500+M in

2014 – NFC-enabled smartphone shipments are anticipated to increase by 481%

from 2012 to 2015

Berg Insight– 1 in 3 mobile phones will come with NFC by 2017– From 2012 to 2017, installed base of NFC handsets will increase at a CAGR of

65% to reach 2.1bn units– By 2017, the penetration rate for NFC in handsets will reach approximately

32%

Gartner – 50% of smartphones will have NFC capability by 2015

IHS Technology– Two in three phones will come with NFC by 2018– Annual shipments increasing from 275M units in 2013 to 1.2B units in 2018

Juniper Research– 1.5B+ mobile wallets in use around the world by 2018– By 2017, 1 in 4 US consumers will use NFC-enabled devices to pay for goods in-store

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Convergence of NFC and IOT

Recent NFC Developments Supporting the Internet of Things

Bluetooth 4.0 • Extends power and reach of NFC

• Enables seamless customer experience

Wi-Fi Alliance • Extends power and reach of NFC

• Enables seamless customer experience

Host Card Emulation (HCE) NFC model

• Supports easy development and deployment of NFC solutions

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Updated Bluetooth Secure Simple Pairing with NFC Application Document

guides developers in building solutions that seamlessly combine Bluetooth and NFC

Updated to include Bluetooth® Smart devices and Bluetooth LE

Product of formal liaison with Bluetooth SIG signed last November

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Wi-Fi Alliance Pushes the NFC Button

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Wi-Fi CERTIFIED Wi-Fi Protected Setup™ now includes NFC “tap-to-connect” for simple setup of security-protected Wi-Fi devices and networks

Extends the reach of Wi-Fi Protected Setup to smart home devices (refrigerators, thermostats, security systems) with a single tap

Key enabler for the Internet of Things

HCE on Android 4.4

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New mode introduction:Host Card Emulation and RW mode covered,

additional to P2P mode (Android Beam)

http://developer.android.com/guide/topics/connectivity/nfc/hce.html

Secure Element

NFC in the Internet of Things

eProvenance Temperature/humidity sensors in fine wine cases Provides data en route with a tap of an NFC-enabled

device Tracks cold chain for quality Ensures provenance

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NFC in the Internet of Things

Touch an NFC-enabled phone to the TV remote and its screen is instantly mirrored on the TV

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NFC in the Internet of Things

Smart Lighting Link energy-harvesting wireless light switches to a

home network with a touch an NFC-enabled phone Simplifies setup and control

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NFC in the Internet of Things

NFC-enabled appliances allow control from anywhere and receive helpful Web content.

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NFC in the Internet of Things

NFC-enabled vending machines Pay with a

tap Earn loyalty

points

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The NFC Forum

Mission and Goals

The mission of the NFC Forum is to advance the use of NFC technology by:

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Developing standards-based specifications that ensure interoperability among devices and services

Encouraging the development of products using NFC Forum specifications

Educating the market globally about NFC technology

Ensuring that products claiming NFC capabilities comply with NFC Forum specifications

Promoting the NFC Forum N-Mark

Members – February 2014

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SPONSOR MEMBERS

PRINCIPAL MEMBERS

Members – February 2014

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ASSOCIATE MEMBERS

Members – February 2014

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NONPROFIT MEMBERS

IMPLEMENTER MEMBERS

New Set of Integrated Specifications

NFC Activity 1.1 Connection

Handover 1.3 NCI 1.1 Digital Protocol 1.1 LLCP 1.2 Type 1/2/3/4 Tags

… designed for use together to streamline and accelerate NFC product development

Mediated Handover is a new feature of Connection Handover 1.3

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Special Interest Group Sectors

Potential to establish additional working groups as partners identify high market importance and

opportunity

Transport

Air Transport &

Ticketing

Public Transport &

Ticketing

Other Transport Schemes

…future…

Health

Pharmacy

Insurance

Clinic

Hospital Managemen

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Payment

Financial Institutions

Terminal Manufacture

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Merchants

…future...

Retail

Product Tags

POS, Vending

Coupons

Points, Rewards

Consumer

Electronics

PC, Tablet, Embedded

Handsets, Remote Controls

Computer PeripheralsAppliances

Personal Auto

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Liaison Partners

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NFC Is Here!Still Some Challenges to Overcome

1 NFC adoption varies by region.

2Payment is complex due to multiple players and business models. Solutions and simpler models like HCE are underway.

3 Customer awareness limited outside Asia, fewer opportunities to experience NFC.

4 The NFC Forum is the place to foster adoption and help overcome challenges.

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Thank You… and Join Us!

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www.nfc-forum.org