The growing adoption of Cloud in IoT services, shifting of focus to industrial IoT (IIoT), the rising market of M2M communication, and the increasing trend of wearable technology applications are among the major factors driving the IoT market in India. Moreover, various government projects such as smart cities, smart transportation, smart grids, and so on are also expected to further propel the use of IoT technology in the country over the next five years.
Telcos will have a critical role to play in this value chain. Moreover, considering the highly competitive telecom market scenario in India today, IoT will provide telcos with high growth opportunities along with new avenues for revenue. Telecom participants will need to up their game and move beyond connectivity to play a larger role in this IoT wave to capture the growing market and bring in a transformation in their traditional business model. This docket focuses on highlighting opportunities that IoT would create for service providers and challenges that Telcos would encounter while deploying IoT based solutions.
1. Scope & Limitations
2. The IoT Market: An Overview
- Total number of connected devices across the globe increasing: each device is generating huge amounts of data
- IoT and Machine learning emerging as the next big frontier for businesses
- Enterprises can leverage data generated to drive value for organizations to achieve efficiency, cost optimization and productivity through IoT
- Connectivity Providers play a pivotal role in successful IoT deployment due to their network infrastructure’s capability to transmit data
- IoT Value Chain Definition
- Decision Maker’s Spotlight
3. Indian IoT Market Opportunity
- Initiatives taken by the Central Government on Smart Cities and Make in India front would provide major impetus to IoT deployments
- IoT Market in India is at a very nascent stage and market ecosystem is highly fragmented
- The IoT Market could reach $16.8 Bn by 2021; depending on the speed of implementation of IIOT and government smart city projects
- IoT spending on software and services is expected to see a CAGR of 52.68%, and 50.24%, respectively, indicating a shift from owned to Managed services
- IoT in Automotive sector is picking up at a rapid pace; Car companies must become technology companies to succeed
- Lowering operational cost, process optimization and enhancing customer service quality are main drivers for IoT in manufacturing
- It is expected that 70% of the total retailers in India would adopt IoT; AI and automation to boost growth by 2021
- IoT instrumental in smart city planning; not just for communication networks but also sanitation, transportation, healthcare, energy use and others.
- IoT to have profound effect on healthcare: will primarily improve access to care, its quality and most importantly cut down its costs.
- Asset, Fleet, Inventory, Facility and Energy Management emerging as the hottest application areas of IoT across different industry verticals
4. Telcos as an enabler for IoT
- Telcos are relevant in the IoT work stream at almost every stage of solution deployment due to their advantages of network ownership
- However, the Nascent IoT ecosystem in India challenges Telecom operators in terms of standardization, interoperability and data security
- Providing M2M Sims for connectivity only leads to low revenue realization and low degree of differentiation
- Partnering with an IoT solution provider plays a critical role; however, approach is heavily partner-reliant and difficult to develop and maintain
- Operator to sell its own solution in selected vertical markets. In this model the operator wins higher revenues and hence is in a stronger position.
- A value selling approach: operators focus on what common elements they can provide for multiple vertical markets.
- Standardization, Interoperability concerns and Security are major barriers for Enterprises in adoption of IoT; Telcos must focus on developing solutions for them
5. The Industry going Forward
- Operators need to leverage core capabilities which scale across industries and geographies to establish themselves as IoT providers
- Developing Network Capabilities and devising vertical specific solutions through innovation labs would provide operators an edge
- Telcos will have to put more emphasis on developing critical data analytics capabilities