C A R R I E PAW S E Y Senior Analyst, IoT Practice Ovum

Transcription

1 OVUM VIEW C A R R I E PAW S E Y Senior Analyst, IoT Practice Ovum P R E S E N TAT I O N Transforming the Smart City with IoT 1

2 Agenda Key Messages What Is A Smart City? What Is The Market Opportunity? The Changing Role for CSPs in an Evolving Supplier Landscape What Can AI Bring To The Smart City? Recommendations For Success 2

3 Key Messages Smart cities are growing at a pace, and there is significant demand from the cities Technology developments support the business case, but should not lead discussions There are significant barriers to success not everyone will succeed AI is already being used in the Smart City and will even more important in the Future For success suppliers need to have creative business models 3

4 What Is A Smart City? What is Driving Supply and Demand? 4

5 Source: 5 Ovum, Ovum September TMT intelligence 2018, informa IoT Strategies: How CSPs Can Succeed Copyright in Smart Informa Cities PLC

6 Demand and Supply Side Drivers Are Making Smart Cities A Reality Cities desire to be smart, we see more pull than ever before Demographic Population growth Urbanisation New cities Economic Reduce costs Increase revenues Urban regeneration Funding - national or multinational Declining costs IoT chipsets & modules Storage Compute power Network (incl. LPWAN) Ecosystem Evolution Market maturity Eco-System Alliances Standardisation Sustainability & Resilience Environment Reduce energy usage Cybersecurity & other threats to citizen life Citizen Centric Services Engaging citizens Improving quality of life Improve customer experience Technology LPWAN (Licensed/ Unlicensed) Battery life 5G rollouts Edge computing AI Drive for New CSP Revenues Traditional business revenue decline IoT is growth area 6

7 Low Power Wide Area Networks (LPWAN) are Enabling New Smart City Use Cases LPWA can be 5-10 times cheaper than traditional cellular CSPs/ Vendors can be creative in what they service-ise Technology SigFox Module Cost $1-2 (single radio) LoRaWAN $5-6 Nano-Tag $2 NB-IoT LTE-M $5 retail price T-Mobile USA $7-10 retail price (AT&T, Verizon) 7

8 But..There Are Multiple Barriers to Overcome for Smart City Deployments Fragmented & crowded ecosystem Procurement cycles, Politics, Bureaucracy Silos/ Patchwork deployments Financing Regulation Privacy & safety concerns Long term viability beyond pilot 8

9 What Is The Market Opportunity? 9

10 Devices (Million) Smart Cities IoT Devices Will Reach Nearly 600Mn by 2022 But most will be low power, low data consumption, devices the challenge is monetization Smart Cities (excluding Smart Buildings) Total Connected Devices (Millions) CAGR 27% Absolute Growth 157% Source: Ovum, September

11 Number of total cumulative IoT contracts Smart Cities Contracts are Growing Rapidly, as are Applications RoI, Sustainability and Security are the key drivers Total Cumulative Publicly Announced IoT Contracts by Vertical (as of end June 2018) Top smart city applications deployed (as of September 2018) YTD Source: Ovum, September 2018 IoT Service Provider IoT Contracts Tracker * YTD to end June 2018 Smart Cities and Buildings Transport, Fleet and Logistics Energy, Utilities and Resources Automotive Health Retail and Financial Services Consumer Electronics Agriculture and Environment Smart lighting Smart parking Traffic management Environmental monitoring/ Public security Smart transportation Waste management Smart buildings and venues Number of publicly announced deployments Source: Ovum, September 2018, Smart Cities IoT Projects Tracker 11

12 The Changing Role of CSPs In An Evolving Supplier Landscape 12

13 Moving Up The Value Chain Is Essential For Success Services Are Where The Money Is Connectivity will only account for a small share and declining E2E Solution or Prime/ Aggregator Role Solution stack module IoT device, phone data Connectivity management Connectivity Cloud hosting Application platform SI & Prof. services Reporting and analytics Activity Gathering data Device and connectivity management Network and/or backhaul Hosting platform, data and apps Data management, APIs into backend Integration into existing/ Partner systems Dashboards and real-time services Source: Ovum, September 2018, IoT Strategies: How CSPs Can Succeed in Smart Cities 13

14 Case Study 1: DTAG Park and Joy A Subscription-Based Smart Parking Service Solution 28 City Rollout, Revenues 90% end user, 10% City 2 Tier service. Basic Operator Billing Parking Fees, Comfort Find Space, Navigate & Pay Basic service charge per transaction or Comfort per month subscription Basic transaction fee for operator billing of parking fees Basic fee to end parking at any time if overpaid, free on Comfort Source: Deutsche Telekom 14

15 Case Study 2: Orange Smart City Success In The Middle East OBS as integrator and aggregator YANBU, Saudi Arabia Part of Saudi Vision Phases of project - Infrastructure, - Applications & sensors, - Platforms & citizen portal King Abdullah Financial District (KAFD), Saudi Arabia Designed by Henning Larsen Architects Largest of 4 Smart Cities >$70bn Jeddah Economic City, 5.3mn square meters Centrepiece Tower 1Km high Orange to provide ICT infrastructure $20bn cost Msheireb Downtown Doha Qatar Regeneration, 6 phases in 2018, 33 SC apps deployed $5.5bn project 15

16 What Can AI Bring To The Smart City? How AI is Being Used Today? 16

17 Data Lakes How Cities Can Use Big Data? Moving beyond silos To improve city services, and monetize data Source: DELL EMC 17

18 AI In The Smart City Not As Futuristic As You Might Think Digital Surveillance and Predictive Policing are already using AI together with big data to make Cities safer Digital Surveillance Digital Facial Recognition Predictive Policing Traffic Management Autonomous Cars 18

19 Recommendations For Success In Smart Cities How to support and profit from the smarter city of the future 19

20 Seven Recommendations for Success in Smart Cities Create A Dedicated Smart Cities Vertical Scalability & Replicability Are Key to Financial Success Invest in Acquisitions, Project Funding & Living Labs Find Best in Breed Partners, Not Necessarily In-House Requires a Strong Brand With In-Roads Into Public Sector Be the Lynch-Pin/ Aggregator, Move up the Value Chain Modular Easy To Understand Proposition 20

21 Thank You 21