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IoT Platforms and Software – 2nd Edition

IoT Platforms and Software is the second strategy report from Berg Insight analysing the latest developments on the M2M connectivity management, device management and application enablement platform markets.

This strategic research report from Berg Insight provides you with 200 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from this report:

360-degree overview of the M2M/IoT ecosystem.
Summary of the latest industry trends and developments.
Updated in-depth profiles of key players in the M2M/IoT platform market.
Reviews of the market strategies of leading platform vendors.
Perspectives on the evolution from vertical M2M solutions to the broader scale and scope of the IoT.
Extensive global market forecasts lasting until 2021.

This report answers the following questions:

Which trends and developments are shaping this market?
What are the benefits of using third party M2M/IoT platforms?
Who are the leading providers of M2M connectivity, device management and application enablement platforms?
What are the main drivers behind the adoption of M2M/IoT platforms in major industries?
What are the key features of the application enablement platforms available today?
Which mobile operators have deployed M2M connectivity platforms?
What is the potential market size for third party M2M/IoT platforms?


Executive summary

The world of machine-to-machine (M2M) communication is gradually moving from vertical, single purpose solutions to multi-purpose and collaborative applications interacting across industry verticals, organisations and people – the Internet of Things (IoT). The use of the new term IoT suggests a transition in the evolution of connected devices, with accelerating scale and scope, as well as higher focus on interoperability. M2M often signifies customised solutions deployed within single industry verticals or by one company to improve existing business operations. IoT puts more emphasis on integration of sensors, devices and information systems across industry verticals and organisations to transform operations and enable new business models. IoT focuses on gaining new insights from analytics based on data from diverse sources to support decision making, and improve and create entirely new products and services. There is a wide range of software platforms available, intended to reduce cost and development time for IoT solutions by offering standardised components that can be shared across many industry verticals to integrate devices, networks and applications. These third party IoT platforms are relatively new in the market and display a great diversity in terms of functionality. Broadly speaking, most IoT platforms fall into one of the following three categories: connectivity management platforms, device management platforms and application enablement platforms. Berg Insight estimates that total revenues for third party IoT platforms will grow at a compound annual growth rate (CAGR) of 30.8 percent from € 610 million in 2015 to € 3,050 million in 2021. This growth is driven by an increase in the number of companies adopting third party platforms for a growing number of projects that gradually expand from pilots and initial rollouts to full deployments. Over time, many companies will also migrate existing proprietary M2M/IoT solutions to third party platforms.

Connectivity management platforms facilitate the delivery of data communication services on communication networks. Features like private APNs, fixed IP addressing and secure VPNs offer more flexibility and better reliability. Device and subscription management features like automated provisioning, activation/deactivation, as well as activity reporting provide improved visibility and control. Several mobile operators still use proprietary connectivity platforms developed in-house, while other operators have adopted third-party solutions from vendors such as Cisco Jasper and Ericsson. Many companies deploying IoT solutions choose to buy connectivity services from IoT managed service providers like Aeris Communications, KORE Telematics and Stream Technologies. A key differentiator for IoT managed service providers versus mobile operators is the ability to aggregate multiple networks and thus provide superior area coverage, multi-domestic footprints and multi-technology connectivity.

Device management platforms enable remote management of IoT devices. Purpose-built device platforms enable a rich set of functionalities for remote management, diagnostics, OTA software updates and lifecycle management. It is often difficult to make a clear distinction between the most fully featured device management platforms and application enablement platforms. Many platforms from device vendors including Eurotech, Gemalto, Sierra Wireless and Telit, as well as platforms from companies like BlackBerry, Bosch, Cumulocity and Nokia could be described as device clouds or IoT integration platforms that provide both device management and application enablement functionality.

Application enablement platforms (AEPs) are designed to accelerate and simplify the development of IoT solutions, providing common components that can be re-used across industries and market segments. AEPs enable companies to focus on differentiation created by unique capabilities and insights from data rather than duplicating non-differentiating functionality such as connectivity integration, device management, data collection, data storage and analytics. Application enablement platforms also provide integration frameworks adapted for common enterprise IT systems such as ERP, CRM and business intelligence. In order to protect data and enable data exchange across multiple applications and data sources, AEPs need strong security architectures and user authorisation management systems. The market for AEPs is still in a relatively early phase in terms of adoption. However, the segment is seeing considerable activity in terms of M&A and new entrants. After PTC acquired ThingWorx and Axeda, other major software and IT companies have bought AEP developers. Examples include Amazon that acquired 2lemetry, Autodesk that acquired SeeControl and Microsoft that acquired Solair. Other leading IT companies that are extending their service offerings to include IoT platforms – often focusing on analytics and machine learning – include IBM, SAP and Oracle. As a group, AEP vendors primarily face competition from system integrators and companies that develop similar functionality in-house.

About the Author

André Malm is a Senior Analyst with a Master’s degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include numerous M2M/IoT verticals such as car telematics, car-sharing, security, people tracking and location-based services as well as M2M/IoT platforms and software.

Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Berg Insight also offers detailed market forecast databases and advisory services. Our vision is to be the most valuable source of intelligence for our customers.

Executive summary
1 The M2M and IoT ecosystem
1.1 Introduction
1.1.1 Evolution of M2M and IoT
1.1.2 IoT interoperability standardisation
1.1.3 Core elements of IoT solutions
1.1.4 IoT platforms and software
1.2 Devices
1.2.1 Chipsets, modules and terminals
1.2.2 Device design and machine integration
1.3 IoT networks and technologies
1.3.1 Cellular technologies
1.3.2 LPWA and satellite technologies
1.3.3 WLAN/WPAN technologies
1.4 Key vertical markets
1.4.1 Automotive
1.4.2 Industrial automation
1.4.3 Smart grids
1.4.4 Smart cities and intelligent traffic systems
1.4.5 Smart homes and building automation
1.4.6 Consumer electronics and small appliances
1.5 Solution providers and system integrators
1.5.1 Device manufacturers
1.5.2 System integrators
1.5.3 Vertical ASPs
1.5.4 B2B/B2C service providers
1.5.5 OEMs
2 Software and IT services
2.1 Embedded software environments
2.1.1 Embedded operating systems
2.1.2 High-level general-purpose programming languages
2.1.3 Scripting languages
2.2 Enterprise IT systems and services
2.2.1 Infrastructure-as-a-Service and Platform-as-a-Service solutions
2.2.2 ERP, CRM, database management systems and analytics systems
2.3 Company profiles and strategies
2.3.1 IBM
2.3.2 Microsoft
2.3.3 PrismTech
2.3.4 Oracle
2.3.5 SAP
3 Device management platforms
3.1 Overview of device management platforms
3.1.1 Market segmentation
3.1.2 IoT module vendors extending offerings into software and services
3.1.3 Leading chipset IP and semiconductor vendors enter IoT platform market
3.2 Company profiles and strategies
3.2.1 Gemalto M2M
3.2.2 Sierra Wireless
3.2.3 Telit
3.2.4 Digi International
3.2.5 Actility
3.2.6 ARM
3.2.7 Arrayent
3.2.8 Ayla Networks
3.2.9 Bug Labs
3.2.10 Capricode
3.2.11 Electric Imp
3.2.12 Eurotech
3.2.13 Intel
3.2.14 InterDigital
3.2.15 Kombridge
3.2.16 Nokia
4 Connectivity management platforms
4.1 IoT connectivity platforms
4.1.1 Mobile operators adopt multi-platform strategies
4.1.2 IoT connectivity platforms become more advanced and differentiated
4.1.3 Device management and application enablement platform integration
4.2 SIM management solutions
4.3 Connectivity platform vendors
4.3.1 Cisco Jasper
4.3.2 Ericsson
4.3.3 Huawei
4.3.4 Amdocs
4.3.5 Asavie
4.3.6 Comarch
4.3.7 NTELS
4.3.8 Telenity
4.4 Proprietary MNO connectivity platforms
4.4.1 China Mobile
4.4.2 Deutsche Telekom
4.4.3 NTT Docomo
4.4.4 Orange
4.4.5 SK Telecom
4.4.6 Telefónica
4.4.7 Verizon Communications
4.4.8 Vodafone
4.5 SIM management solution vendors
4.5.1 Giesecke & Devrient
4.5.2 Oberthur Technologies
4.5.3 Oasis Smart SIM
4.5.4 Safran Identity & Security
4.6 IoT managed service providers
4.6.1 Aeris Communications
4.6.2 KORE Telematics
4.6.3 EMnify
4.6.4 Numerex
4.6.5 Stream Technologies
4.6.6 Wireless Logic
5 Application enablement platforms
5.1 Overview of application enablement platforms
5.1.1 Why use application enablement platforms?
5.1.2 Key functionality and components of AEPs
5.1.3 Acquisitions, partnerships and ecosystems
5.2 Company profiles and strategies
5.2.1 Amazon Web Services
5.2.2 Autodesk SeeControl
5.2.3 BlackBerry
5.2.4 Bosch Software Innovations
5.2.5 Bright Wolf
5.2.6 C3 IoT
5.2.7 Carriots
5.2.8 Concirrus
5.2.9 Connio
5.2.10 Cumulocity
5.2.11 Davra Networks
5.2.12 Device Insight
5.2.13 EVRYTHNG
5.2.14 Exosite
5.2.15 General Electric
5.2.16 MachineShop
5.2.17 M2Mi
5.2.18 Octoblu
5.2.19 PLAT.ONE
5.2.20 PTC
5.2.21 Waylay
5.2.22 Wot.io
5.2.23 Xively
6 Market analysis and forecasts
6.1 Industry analysis
6.1.1 Horizontal versus vertical specialisation strategies
6.1.2 The connectivity platform market is maturing
6.1.3 Can application enablement platforms live up to the high expectations?
6.1.4 Mergers & acquisitions in the M2M and IoT industry
6.2 Market forecasts
6.2.1 Connected things by vertical market
6.2.2 Connected things by network technology standard
6.3 Revenue forecasts
6.3.1 IoT connectivity platform revenues
6.3.2 Device management and application enablement platform revenues
Glossary
Index
List of Figures
Figure 1.1: Core elements of IoT solutions
Figure 1.2: Cost versus time diagram for wireless technology integration
Figure 1.3: Examples of wireless IoT modules and terminals
Figure 1.4: System architecture for an end-to-end IoT solution
Figure 1.5: Comparison of LTE-family cellular technologies
Figure 1.6: Comparison of LPWA and satellite technologies
Figure 2.1: Examples of embedded operating systems for M2M/IoT devices
Figure 2.2: Enterprise IT systems and cloud service providers
Figure 3.1: Top cellular M2M module vendors, by sales and shipments (World 2015)
Figure 4.1: IoT connectivity platform selection by mobile operator (Q2-2016)
Figure 4.2: Cellular M2M subscribers, by region (World 2013–2016)
Figure 5.1: Application platform and network operator partnerships (Q2-2016)
Figure 5.2: The M2Mi platform
Figure 5.3: The ThingWorx Application Enablement Platform
Figure 6.1: Acquisitions in the M2M/IoT industry (2008–2016)
Figure 6.2: Connected device market forecast, by vertical (World 2015–2021)
Figure 6.3: Cost comparison for IoT connectivity modules (2016)
Figure 6.4: Number of connected devices by technology (World 2015–2021)
Figure 6.5: IoT connectivity platform revenues (World 2015–2021)
Figure 6.6: Device management and AEP platform revenues (World 2015–2021)

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