The Rise of Connected Living and What It

Means for ICT

Audrey William, Head of Research

Information & Communication Technologies (ANZ)

15th May 2014

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Agenda

Definition of Connected Living

Connected Home

Connected Workplace

Connected City

Conclusion

3

State of the ICT Industry in 2014

$3.6Tr Global ICT

Revenues

2013

$1Tr Global Mobile

Revenue

40% Data

$50Bn Public

Cloud

2.2Bn Internet

Users

1Bn+ Mobile

Broadband

Subscribers 700Mn Fixed

1.2Bn+

Active

Facebook

Users

4

Definition of Connected Living

Connected Home Connected Work Connected City

• Home Automation • Smart Meters and Smart

Thermostats • Intelligent Lighting • Remote monitoring and

control • Home health - Remote

diagnostics; wearable health devices

• Mobility - Mobile email, enterprise mobile apps, people locator, bring your own device,

• Communication - unified messaging, remote desktop access,

• Networking - Web-based project collaboration tools, cloud-based file sharing services

• eGovernance • eCitizens • Smart transportation cards • E-learning • Mobile banking • Digital classroom, Remote

education service, Digital library

Connected Living

Connected Living describes a world in which consumers use many different devices to experience compelling new services that integrate video, voice, and data services to provide access and ubiquitous connectivity

anytime and anywhere.

5

Connected Living Market Potential

Connected Living market expected to reach $731.70 billion by 2020 as the

importance of internet and digital solutions grows in the overall economy.

6

Connected Living Market Breakdown by Segments : Connected City lead with an estimated market potential of $392.94 billion. Smart Governance and Education

Services will contribute 50% of growth in this segment

2012 Market Segments ($ Billion)

Source: Frost & Sullivan Analysis.

Home

Work

City

2020

*Unified Communication Products and Solutions

Communication*

Enterprise Social Software

Education

Transportation

Energy

Media and entertainment

Health

Automation and control

Enterprise Mobility

Governance

Banking and Financial

2.35

2.76

26.2

3.48

48.01

36

32.2

28

21.1

0.72

26.90

8.61

5.41

73.10

20.11

145.02

118

99.7

80

76.9

10.44

94.50

Connected Home Total 29.65 111.0

Connected Work Total 74.92 228.44

Connected City Total 122 392.24

Connected Living Total 226.83 731.70

Connected Living Market: Market Size Breakdown by Segments, Global, 2020

Vision of a Connected Home

Lighting: Centralised control panels to

control lighting around moods and preferences

Energy: Pre-programmed temperature control connected to

smart appliances sensitive to environmental considerations

Security: Use of cameras and automated alarm triggers to

manage security centrally

HVAC: Control and measurement of air and circulation

Health: Responsive and intelligent systems to monitor health and

prevent illness or harm

Entertainment: Bundled and demand services controlled

centrally

Connected home is defined as an residential environment embedded with computing and information technology which anticipates and responds to the needs of the occupants, working to promote their comfort, convenience,

security and entertainment

8

Case Examples

Non-utility solutions offer unique connected home services for energy

management without relying on smart grids for connectivity

9

Vision of a Connected Workplace

10

Rise of Connected Devices

Connected Person (2020/2025) Connected Worker

(2020/2025)

Connected Citizen (2020/2025)

8-10 connected device per

household

90 million IP Telephones 15 million Interactive

Kiosks

3.7 billion Smartphones 400 million Laptops 25 million Cloud Servers

150 million Gaming Consoles by

2025

Over 60 million unified

communication platforms

Around 1 billion smart government

and ID cards

700 million Tablets Nearly 80% of enterprises adopt

BYOD in US

35 Billion Subscribed LBS Devices

by 2020

520 million Wearable Health-related

Devices

30% of population to access office

networks remotely

Around 500 million smart

transportation cards

410 million Smart Appliances 90% organisation to offer mobility

to workers

50 million contact-less payment

cards

11

Vision of a Connected City

Banking • Mobile Payments • Kiosk service • Online Banking • Online Stock Trading

Governance • E-services • E-Administration • E-Security

Transportation • Smart Transportation Cards • Car infotainment services • Mobile traffic services • Telematics services

Education • Digital classroom • Remote education service • Digital library

Typical Connected Work Services and Solutions by Key Segment

A B

C D

12

Case Study – Amsterdam’s Plans for a “Connected Bus to

Promote sustainable Public Transportation

Transit information updates relayed on

personal devices including updates on

bus reservations, traffic reports,

scheduled construction, city events, weather conditions etc.

Real-time Travel Planning

Courier Service Open Source

Communication Personalized Bus

The Connected Bus gives passengers real-time travel information and wireless connectivity and new services such as ability to have something collected and dropped by the bus like a courier company would.

Passengers can order online before or while

riding the bus. The order will be

aggregated, collected, and delivered by the bus in conjunction

with a partner service (e.g. Starbucks).

Allows passengers to communicate on a peer-to-peer (P2P)

basis, including instant messaging within bus

or bus-to-bus; or sharing ratings for local businesses.

Complete connectivity with “internet

everywhere” including technologies such as WiFi, NFC, and RFID.

Display on information on smart devices and

also on bus infrastructure

including windows and panels

Features of the Connected Bus

13

Executive Summary – Key Participants in

Connected Living

Connected Work Connected City

Connected Home

Note: This is an illustration and

does not show all market

participants

AT&T

Citrix

Cisco

Vodafone

Verizon Comcast

Intel IBM

EON

Apple

Phillips

Samsung

Microsoft

T Mobile

Visa

GM

Deutsche

Telekom

LG

Orange

Google

Nest

Siemens

MIELE

Alcatel Lucent

HP

Dell

Bosch

Unisys GE

Schneider

Electric

Polycom

Tandberg

Source: Frost & Sullivan

Google

Telstra NTT DoCoMo

Korea Telecom

14

Towards Connected Everything

Trillions of

things

Billions

Hundreds

of millions

Millions

No. of people / things No. of applications / apps

Tens of

millions

Millions

Tens of

thousands

Thousands

2020s

Transformation /

Innovation

Connected industries /

everything

1970s

Specialised

activities

Proprietary

equipment /

Mainframes

1990s

Increased

productivity

PCs /

Internet

2010s

Disruption /

Innovation

Mobile/

Cloud

15

Nexus of Cloud Computing, Big Data, Mobility and Low

Cost sensors is driving Internet of Things/Connected

Industries

Mobility

Big Data

Cloud

Low Cost Sensors

Cloud allowing

access to content on

any device in any

location.

Low cost sensors are

becoming increasingly

powerful. They use apps in

the cloud and big data.

Mobility driving the

emergence of apps

which can be used

on any IP enabled

device.

Big data enables value to be

extracted out of exponential

increase in data. Data from

IoT needs to be analysed

2

3

4

1

Connected

Industries

16

Connected Living : Value Chain of Smart Solutions

Extremely fragmented value chain with no clear “one stop shop” solution provider

providing end-to-end solutions

17

Preparing for 2020

• Massive technology-led disruption across all

industries

• IoT is forcing transformation and innovation across

the Connected Home, Connected Workplace and

Connected City

• Immense opportunities for the Telecom operators

and ICT vendors

18

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Today’s Presenter

Audrey William, Head of Research

Information & Communication Technologies

Frost & Sullivan, Australia & New Zealand

Follow me on:

@Audrey_William

Audrey William is the Head of Research at Frost & Sullivan’s Australian and New Zealand ICT Practice. She

leads a team of analysts in the areas of Enterprise Communications, Cloud Computing and Digital Media.

Throughout her tenure with Frost & Sullivan she has acquired expertise in areas such as Unified

Communications, Conferencing and Collaboration, Cloud Computing, Digital Signage, Contact Centres, Social

Media, Mobile Device Management, M2M. She is often consulted for her strategic advice by leading vendors,

system integrators and channel partners for her inputs on go-to-market and channel strategy. Audrey is also often

invited to speak at regional vendor conferences and trade events and has presented at over 60 conferences in

the region. Additionally she has also presented her research findings at several universities. Her views and

opinions are also frequently featured in leading trade publications and dailies such as CIOworld, The Australian,

Sydney Morning Herald, Computerworld, Reuters, MIS Asia, The Wall Street Journal, CRN and ARN.

For any other enquiries, email us:

asiapacific@frost.com