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The Connected Life 25 Billion Connections by 2020 Jim Morrish, Director Machina Research June 2013

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Page 1: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

The Connected Life 25 Billion Connections by 2020

Jim Morrish, Director

Machina Research

June 2013

Page 2: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

• The Connected Life 2011-2013

• Next steps in the Connected Life

Machina Research 2

Page 3: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

The Connected Life: 25 billion connections in 2020

-

5

10

15

20

25

30

2011 2013 2015 2017 2019

Co

nn

ecti

on

s (b

illio

n)

Handsets Personal broadband M2M

• Significant growth over the period to 2020

o +1.2bn handsets

o +2.0bn tablets, eReaders, laptops

o +11.3bn M2M connections

• Machina Research defines M2M as “Connections to remote sensing, monitoring and actuating devices, together with associated aggregation devices”

Machina Research 3

The Connected Life 2011-20 Source: Machina Research 2013

Page 4: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

Does the reality match the hype …? • Comment

• Forecast growth now real

Machina Research 4

-

5

10

15

20

25

30

35

Bill

ion

s

Connected device forecasts, 2011 and 2013 Source: Machina Research 2013

Mobile connected devices

Connected devices

Non-Handset mobile connected devices

2011 Forecast Actual (2011, 2012) 2013 Forecast

Page 5: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

Does the reality match the hype …? • Comment

• Forecast growth now real

Machina Research 5

-

5

10

15

20

25

30

35

Bill

ion

s

Connected device forecasts, 2011 and 2013 Source: Machina Research 2013

Mobile connected devices

Connected devices

Non-Handset mobile connected devices

2011 Forecast Actual (2011, 2012) 2013 Forecast

Page 6: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

… it seems to, so far. • Comment

• Forecast growth now real

Machina Research 6

-

5

10

15

20

25

30

35

Bill

ion

s

Connected device forecasts, 2011 and 2013 Source: Machina Research 2013

Mobile connected devices

Connected devices

Non-Handset mobile connected devices

2011 Forecast Actual (2011, 2012) 2013 Forecast

Page 7: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

Leading lights of the Connected Life

• Tracker (South Africa)

• Coyote (France)

• TollCollect (Germany)

• Fleet management

• Asset tracking

• Tablets

Machina Research 7

Page 8: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

• The Connected Life 2011-2013

• Next steps in the Connected Life

Machina Research 8

Page 9: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

M2M connections: more than a number

Machina Research 9

Stage Description Comments

1 Reactive information • Devices can be polled for information, or provide information according to a set timetable

2 Proactive information • Devices communicate information as necessary

3 Remotely controllable • Devices can respond to instructions received from remote systems

4 Remotely serviceable • Software upgrades and patches can be remotely applied

5 Intelligent processes • Devices built into intelligent processes

6 Optimised propositions • Use of information to design new products

7 New business models • New revenue streams and changed concept of ‘ownership’

8 The Internet of Things • Publishing information for third parties to incorporate in applications

Machina Research Hierarchy of M2M Source: Machina Research 2013

Device centric

Process centric

Page 10: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

The M2M platforms environment is complex and changing fast

Machina Research 10

Solution provider

Application support

Device management

Service enablement

Any access technology

Solution/ device specific

capabilities

Services

Products

Generic M2M capabilities

Cellular connection support

Connectivity support

M2

M A

pp

licat

ion

Pla

tfo

rms

In-h

ou

se IT

d

ep

artm

ent

Data

Data

Data

Data

Data

Page 11: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

Hot growth areas in the Connected Life

• Usage Based Insurance

• Connected home

• Healthcare

• Fleet management

• Asset tracking

• The Internet of Things

Machina Research 11

Page 12: The Connected Life - GSMA€¦ · The Connected Life: 25 billion connections in 2020 -5 10 15 20 25 30 2011 2013 2015 2017 2019) Handsets Personal broadband M2M • Significant growth

Jim Morrish Director & Founder [email protected] Mobile: +44 7747 632428 Skype: jim.morrish Twitter: @jimmorrish Blog: jim-morrish.blogspot.com

Matt Hatton Director & Founder

[email protected] Mobile: +44 7787 577886

Skype: mattyhatton Twitter: @MattyHatton

Blog: wirelessnoodle.blogspot.com

Emil Berthelsen Principal Consultant

[email protected] Mobile: +44 7714 671539

Skype: embe-machinaresearch

Emma Buckland Principal Analyst [email protected] Mobile: +44 7950 887505 Skype: elab1972

Michele Mackenzie Principal Analyst

[email protected] Mobile: +44 7888 846098 Skype:

michelemackenzie1

Andy Castonguay Principal Analyst, USA [email protected] Mobile: +1 619-888-1397 Skype: castonga

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