Mohit Agrawal - Counterpoint

Thales, G+D, IDEMIA Pacesetters in 2023 eSIM Provisioning Rankings

Mohit Agrawal — Fri, 23 Feb 2024 17:12:11 +0000

Oasis Smart SIM, 1Global, Workz, Valid, Kigen and RedTea Mobile are recognized as ‘Leaders’.
Eastcompeace, 10T Tech, Nordic, Nokia, Teal, Invigo and 1oT have emerged as ‘Challengers’.
The eSIM provisioning ecosystem continued to grow in 2023 and eSIM support is now available in over 100 countries.

Seoul, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi – February 24, 2024

Thales, G+D and IDEMIA have emerged as ‘Pacesetters’ in Counterpoint Research’s Global eSIM Provisioning CORE (COmpetitive, Ranking, and Evaluation) study, according to the 2023 edition of Global eSIM Landscape report.

Commenting on the eSIM provisioning rankings and competitive landscape, Senior Research Analyst Ankit Malhotra said, “eSIM has grown tremendously in 2023 with higher operator uptake. Now, eSIM support is available in over 100 countries, with exponential growth seen in eSIM transactions despite Apple not launching an eSIM-only model in Europe. As a result, new players continue to enter the market to meet the growing demand for eSIM provisioning. The consumer eSIM market showed significant buoyancy in 2023 though the IoT market remained subdued. With the introduction of new GSMA specifications for IoT eSIM (SGP.31/32), the IoT market is expected to grow as some of the customers are waiting for standardized products based on the new specifications.”

Malhotra added, “We have analyzed and evaluated key companies in the eSIM value chain using our proprietary CORE framework, which maps active players according to their capabilities and success in the ecosystem. In this dynamic market environment, our evaluation criteria have also changed. We have added multiple new criteria, such as platform reliability and SGP.31/32 readiness. The capabilities cover topics such as platform features, compliance, deployment model, time to market and profile customization abilities. The ecosystem part covers criteria such as geographical reach, partnerships, platform deployments and transactions.”

Commenting on the research findings, Associate Director Mohit Agarwal said, “Thales, G+D and IDEMIA emerged as pacesetters in Counterpoint’s rankings for eSIM provisioning. These three companies stand out from the rest of the market and demonstrate excellence in both capability and ecosystem parameters. On the capability side, Thales emerged as the best player with a very comprehensive all-round platform, which is why it was able to deploy the maximum number of eSIM platforms worldwide. On the ecosystem side, G+D emerged as the best player due to a higher number of transactions.”

Oasis, WORKZ, 1Global, Valid, Kigen and RedTea Mobile have emerged as the eSIM provisioning market ‘Leaders’. All these players made great strides in 2023 to further their reach in the ecosystem. VALID, Oasis Smart SIM and WORKZ showed the highest growth in terms of overall platform deployments. Kigen showed the highest overall growth in the ecosystem parameters. RedTea Mobile stood out, showing maximum improvement overall in this year’s evaluation.

Eastcompeace, 10T Tech, Nordic, Nokia, Teal, Invigo and 1oT have emerged as ‘Challengers’ with very capable platforms but still do not have the required market presence. In this quadrant, Eastcompeace and 10T Tech stand out. TEAL and 1oT, one of the newer entrants, showed good promise with their focused IoT approach. Agarwal said, “Over time, players in the Challenger category are likely to move up to the Leaders quadrant.”

A number of players made it to the ‘Niche’ category due to their business models, which are different from other players in terms of either catering to a niche segment or due to limited geographical presence. For example, achelos and HPE have different business models where they do not provide provisioning services themselves but enable the services for other players.

Counterpoint Research’s Global eSIM Landscape report is the most comprehensive report involving all the leading players in the eSIM ecosystem with multiple interviews and research spanning more than three months.

The comprehensive and in-depth ‘Global eSIM Landscape Report, 2023’ is available for subscribing clients. Please contact Counterpoint Research to gain access to the report.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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2.2 Billion IoT Connections Expected to be on eSIM by 2030

Mohit Agrawal — Tue, 20 Feb 2024 22:59:10 +0000

IoT eSIM connections are expected to grow 43% annually between 2023 and 2030.
New GSMA standards for IoT eSIM are expected to accelerate the adoption of eSIM in IoT as constrained devices benefit from new standards.
China lags in eSIM adoption despite being the largest IoT market in terms of connections.

Seoul, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi – Feb 20, 2024

IoT connections on eSIM are expected to grow at a rapid pace of 43% annually to reach 2.2 billion by 2030, according to a recent report released by Counterpoint Research on the IoT connectivity landscape. By 2030, almost a third of the IoT connections will be on eSIM or iSIM.

Commenting on the current state of IoT eSIM connections, Associate Director Mohit Agrawal said, “eSIM growth in IoT has lagged behind that in consumer space due to the restrictive M2M eSIM specifications. As a result, at the end of 2023, there were a little less than 200 million eSIM connections in the IoT space despite the excellent product-market fit.”

Agrawal added, “China, the world’s largest IoT market, has low single-digit eSIM penetration due to restrictive regulations around eSIM in the past and the high proportion of LPWA devices which currently do not support eSIM. The eSIM penetration in the rest of the world is much higher than in China but the large IoT base in China brings the overall global eSIM penetration to less than 10%.”

Commenting on the eSIM forecast, Senior Research Analyst Ankit Malhotra said, “The new GSMA standards for IoT eSIM (SGD.31/32) are expected to bring the eSIM to constrained devices, which is likely to massively push the growth in eSIM and later iSIM. eSIM vendors and IoT connectivity providers have multiple proof of concepts on the new IoT eSIM standards and the big push is likely to happen next year after the test specifications are released by GSMA later this year. The early adopters of eSIM in IoT have been mostly automotive customers as the enterprises have not really been able to change the connectivity provider at will”

The comprehensive and in-depth ‘IoT Connectivity Landscape’ report and the ‘Connectivity Management Platform Rankings’ report are now available. Please contact Counterpoint Research to gain access to the reports.

Background

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Navigating Permanent Roaming for IoT: Challenges and Solutions

Mohit Agrawal — Wed, 23 Aug 2023 04:01:38 +0000

The growing IoT ecosystem has brought forth its own set of challenges. One such challenge is permanent roaming.
While many countries allow permanent roaming without significant constraints, some big countries have implemented limitations on this practice.
There are multiple ways to circumvent the problem of permanent roaming. These include eSIM, Multi-IMSI, aggregator platforms, and dynamic network selection algorithms.

The Internet of Things (IoT) has revolutionized the way we interact with the world around us. From smart homes to industrial automation, IoT devices are playing a pivotal role in enhancing efficiency and convenience. However, the growing IoT ecosystem has brought forth its own set of challenges. One such challenge is permanent roaming, a phenomenon that has gained significance due to the global nature of IoT deployments. In this blog, we will delve into the concept of permanent roaming for IoT, discuss the challenges it poses, and explore potential solutions.

Understanding permanent roaming for IoT

Permanent roaming in the context of IoT refers to the practice of utilizing cellular connectivity across different geographical locations on a consistent basis. Unlike traditional mobile phones, which might roam temporarily when users travel, IoT devices often need to maintain connectivity across various regions for extended periods. This is a fundamental requirement for IoT devices used in logistics, remote monitoring, agriculture and other activities.

While many countries allow permanent roaming without significant constraints, some big countries have implemented limitations on this practice. The map below shows countries where permanent roaming is banned and those where local carriers have imposed restrictions.

Countries that prohibit permanent roaming include India, China, Brazil, Saudi Arabia, Egypt, Nigeria, Turkiye (formerly Turkey), UAE and Singapore. Besides, mobile operators in the US, Canada and Australia have imposed restrictions on permanent roaming within their networks, effectively imposing a ban on this practice in these countries. Remarkably, these 12 countries collectively cover more than 50% of the world’s population and account for well over three-quarters of the IoT market.

Challenges posed by restrictions on permanent roaming

IoT devices are typically deployed on a global scale, leading to a complex scenario where these devices are connected to multiple mobile network operators (MNOs) across different countries. Imagine an electric car company that markets its vehicles across various regions. In countries where permanent roaming is not allowed, the company must procure local connectivity. This situation presents a host of challenges that ripple through the operational landscape:

Complex network management: Handling connections to multiple networks becomes really complex. Each network might have different prices, coverage areas and technical needs. The process of harmonizing such distinct facets is likely to be intricate and time-consuming.
Dealing with many partners: The company needs to work with different network partners. This means making deals, managing money and ensuring good service quality across networks. Besides, multiple networks means multiple bills and contracts. All of these tasks together can become very complicated and hard to manage as this activity is not core to the business.
Higher costs: Because of the rules against permanent roaming, the company has to pay more money to set up connections in each country. This extra cost can make things difficult and might affect how much the company can grow.
Less flexibility: Without the ability to use permanent roaming, the devices might not work as well when they move between countries. This can be a problem for customers who expect a consistent experience.
More planning needed: Since the company can’t rely on the same connection everywhere, it needs to plan ahead. This can slow things down and make expansion harder. There could be issues related to data sovereignty and compliance that may require additional planning.

Solutions for permanent roaming

There are multiple ways to circumvent the problems associated with permanent roaming. However, it is critical to select a managed service provider that has tie-ups with local MNOs/MVNOs. Alternatively, direct MNO relationships can be managed using aggregator connectivity management platforms.

eSIM (embedded SIM): eSIM technology is a game changer in the IoT landscape. It enables devices to have programmable SIM cards that can be remotely provisioned over the air. With eSIM, IoT devices can switch between different MNOs without requiring a physical SIM card replacement, thus simplifying the management of connectivity. Using eSIM, it is possible to switch between a local profile and multiple roaming profiles every 90 days to avoid permanent roaming. Many managed service providers have this workaround to avoid permanent roaming. The new IoT eSIM specifications will further simplify the provisioning and orchestration of connectivity.

Multi-IMSI (International Mobile Subscriber Identity): Multi-IMSI solutions allow a single physical SIM card to have multiple IMSIs from different MNOs. This enables the device to seamlessly switch between networks while maintaining a single SIM card. By intelligently selecting the optimal IMSI based on factors like network quality and cost, Multi-IMSI solutions optimize connectivity and reduce operational complexities. However, the managed service provider needs to have a local presence or tie-ups.

Aggregator platforms: Aggregator connectivity management platforms (CMPs) act as intermediaries between IoT device owners and various MNOs. These platforms offer a unified interface for managing connectivity, provisioning, billing, and reporting across multiple networks. By consolidating these tasks, aggregator platforms simplify the management of permanent roaming for IoT devices. A new set of aggregator CMPs like IOTM and ConnectedYou is targeting enterprises instead of carriers to solve the problem of managing multiple networks.

Some of the aggregator platforms offer Dynamic Network Selection Algorithms. Smart algorithms can be implemented in IoT devices to dynamically select the most suitable network based on parameters such as signal strength, latency and cost.

Conclusion

With the IoT landscape continuing to expand globally, the challenges associated with permanent roaming are becoming more pronounced. However, with the advent of innovative solutions such as eSIM, Multi-IMSI, aggregator platforms, and dynamic network selection algorithms, these challenges can be effectively mitigated. These solutions not only simplify the management of connectivity but also enhance cost-effectiveness and operational efficiency for IoT deployments. The key is to find the right managed services partner, which has a platform that enables easy management of connectivity.

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Split Billing: Crucial for Connectivity Management Platforms in Automotive Sector

Mohit Agrawal — Tue, 08 Aug 2023 04:19:52 +0000

Over the last few years, the demand for seamless connectivity has grown exponentially in the automotive sector. With the rise of connected cars and the integration of various IoT devices, the automotive sector faces the challenge of managing and monetizing connectivity effectively. This is where connectivity management platforms (CMPs) play a crucial role, and among the key components that contribute to their success, split billing stands out as a pivotal feature.

What is a Connectivity Management Platform (CMP)?

Before delving into split billing, let’s understand what CMPs are and how they have evolved. CMPs are centralized systems that facilitate the management, control and monetization of data connectivity services in connected vehicles. These platforms empower automotive manufacturers and service providers to offer innovative connected services to drivers and passengers while efficiently managing data consumption.

As seen in the chart below, CMP is a component of wider IoT platforms that include a Device Management Platform (DMP), Analytics Platform and Applications Enablement Platform (AEP). Together, these platforms power large-scale IoT applications.

Many connectivity management platforms integrate split billing functionality to cater to the diverse billing requirements of multiple stakeholders in the IoT ecosystem and the automotive industry in particular. Currently, there are many CMPs, such as Cisco, Aeris, Cubic Telecom and Wireless Logic, which have the capability to provide split billing.

Challenges in Connectivity Management for Automotive:

In the past, vehicle connectivity was predominantly limited to basic telematics services and hence the split billing was not so much of a concern. However, the rapid advancement of technology has transformed the automotive landscape. Today, connected cars are equipped with sophisticated infotainment systems, navigation tools, real-time diagnostics, and a multitude of sensors that enhance safety, convenience, and the overall driving experience. In the future, the need for connectivity in cars would be very different with autonomous vehicles and V2X communication.

2022 was a pivotal year for connected cars. According to Counterpoint Research analysis, connected cars surpassed 50% of car sales for the first time with the US, Europe and China as the key markets.

As vehicles become more connected, the complexity of managing connectivity increases. This gives rise to various difficulties for the automotive, including:

Data Consumption: Connected vehicles generate a vast amount of data, which can quickly lead to exorbitant costs if not managed efficiently.
Billing and Monetization: With multiple stakeholders involved, such as vehicle manufacturers, network operators, and content providers, it becomes challenging to accurately bill and monetize data usage.
Personalized Services: Consumers expect personalized services tailored to their preferences, but delivering such services without incurring excessive data charges can be tricky.
Data Security and Privacy: As vehicles become data hubs, ensuring robust security and privacy measures becomes paramount.

The Role of Split Billing:

In the context of Internet of Things (IoT) connectivity for automobiles, split billing refers to a billing mechanism that allows for the separation and allocation of data usage costs between different entities involved in the IoT ecosystem. This concept is particularly relevant when multiple parties share the data consumption and connectivity expenses of an IoT-enabled vehicle.

In an automobile scenario, various components may require internet connectivity for different purposes:

Vehicle Manufacturer: The automobile manufacturer may require connectivity for software updates, diagnostics, and data collection to improve its products and services.
Car Owner/Driver: The car owner or driver may need connectivity for infotainment, navigation, and other personalized services.
Third-party Service Providers: External service providers, such as insurance companies or fleet management firms, might offer specific services that rely on the vehicle’s connectivity.

Split billing allows the data usage and associated costs to be divided among these parties based on their usage patterns and requirements. For example:

The car manufacturer might cover the data costs for vehicle diagnostics and software updates, as it benefits the development and maintenance of its product.
The car owner would be responsible for the data costs associated with personal usage, such as infotainment and navigation.
Third-party service providers may bear the expenses related to the specific services they offer through the vehicle’s connectivity.

This approach helps create a fair and transparent billing structure, where each stakeholder pays only for the services they consume, rather than a single entity covering all data costs.

What does split billing mean for CMPs?

For CMPs, split billing refers to a specific functionality or feature that allows the platform to support the allocation and management of data usage costs among multiple parties or stakeholders in the IoT ecosystem. This functionality enables CMPs to handle billing and cost-sharing for IoT connectivity services efficiently. The chart below summaries the key aspects and functionalities related to split billing in CMPs.Overall, split billing functionality in a CMP streamlines the financial aspects of IoT deployments, encourages collaboration between different entities, and ensures that each party pays only for the specific services they utilize, making IoT implementations more transparent and cost-effective.

In conclusion, the evolution of CMPs for split billing has been driven by the increasing complexity of connected services, advancements in data analytics and technology, and the growing demands for personalized billing and improved customer experiences. As the IoT landscape continues to evolve, CMPs will play an increasingly vital role in managing data connectivity and enabling fair and accurate billing for the multitude of services offered in the connected world.

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AI & API Accelerating Digital Transformation Across Verticals

Mohit Agrawal — Mon, 15 May 2023 06:05:59 +0000

The hype surrounding digital twins is undoubtedly real, with many IoT players actively seeking to leverage the unique benefits of digital twin technology to gain a competitive edge in the market.
Connectivity, a key component of digital transformation, was at center stage with a significant focus on satellite and 5G.
Partnerships, collaborations, and API will fight the fragmentation in IoT and digital transformation.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – May 15, 2023

Counterpoint Research analysts recently attended three of the most prominent tech events of 2023 – Consumer Electronics Show, Mobile World Congress, and Industrial Transformation at Hannover Messe. After a hiatus of three years, these events saw a remarkable return of in-person attendance, indicating a promising comeback of the tech industry. During their visits, Counterpoint analysts delved deep into the latest trends and advancements in IoT and digital transformation, and have now identified seven key takeaways or focus areas. The findings are expected to have far-reaching implications for businesses and organizations looking to stay ahead in the rapidly evolving tech landscape.

Commenting on the key takeaways, Associate Director Mohit Agrawal said, “As we attended the tech events of 2023, it became increasingly clear that the rise of digital twins was the single biggest takeaway, particularly in Hannover. We saw how digital twins have energized the industrial IoT players, and are likely to become a critical component of digital transformation in the coming years. Connectivity plays a crucial role in enabling digital transformation and the events had a significant focus on satellite, private networks, eSIM, 5G, and connectivity management platforms. Finally, we were impressed with the companies’ incorporation of AI in various processes, especially in analytics, visual inspection, and robotics. It is exciting to see how these technological advancements will shape the future of industries, and we are eager to keep a close watch on these developments.”

Source: Counterpoint Research

Each of the events was attended by over 100,000 visitors and had exhibitors across the long value chain of IoT and digital transformation. Many of the takeaways amplified Counterpoint Research’s top trends prediction for 2023 released earlier this year, noted Research Vice President Neil Shah. “IoT is an incredibly vast and fragmented value chain, and it is becoming increasingly clear that industry consolidation is necessary. Efforts like the Qualcomm Aware platform are a step in the right direction to reduce fragmentation and improve the overall IoT landscape. It is essential to see more of these kinds of partnerships between players in the industry to reduce adoption friction points and fully realize the potential of IoT. APIs are increasingly becoming important in seamless collaborations. As we move forward, we remain optimistic about the future of IoT and the role that industry collaboration will play in driving innovation and growth,” Shah added.

The comprehensive and in-depth ‘IoT and Digital Transformation Trends from CES, MWC and Hannover Mess’ report is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Mohit Agrawal

Neil Shah

Counterpoint Research

press@counterpointresearch.com

Global Connected Agriculture Node Shipments to Reach 187 Million Units by 2030

Mohit Agrawal — Thu, 04 May 2023 06:10:16 +0000

Global connected agriculture node shipments will grow at a CAGR of 30% from 23 million units in 2022 to reach 187 million units by 2030.
Crop farming will be the fastest growing segment in the connected agriculture market, followed by drones and robots, tractors, and livestock monitoring.
Connectivity penetration in farms will remain below 10% by 2030.
China, Europe and North America will be key markets for connected agriculture equipment.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – May 4, 2023

Global connected agriculture device/node shipments will grow by 30% annually to reach 187 million units by 2030 from 23 million in 2022, according to Counterpoint’s latest Global Connected Agriculture Market report. The need for connectivity is driven by large farms and livestock, and manpower shortage in some countries. China will grow the fastest over the forecast period to become the top market for connected agriculture products. Further, the connected agriculture market’s crop farming segment is expected to grow at the fastest pace (41% CAGR) during 2023-2030, followed by drones and robots, tractors, and livestock monitoring.

Connected agriculture, also known as smart farming or digital farming, refers to the use of technology, such as sensors, drones and other digital tools, to optimize agricultural production. Connected agriculture enables farmers to monitor and manage their crops and livestock more efficiently by collecting and analyzing data in real time. This data can help farmers make more informed decisions about planting, irrigation, fertilization, pest control and other things. Connected agriculture allows for more precise and targeted use of resources, which can reduce waste and improve yields.

Commenting on connected farm equipment like tractors, drones and agriculture robots, Senior Research Analyst Soumen Mandal said, “Drones are emerging as a key technology supporting agriculture primarily for visual inspection, spraying and mapping. But the current usage is very low due to the non-availability of skilled manpower, insufficient battery life and high computational costs. Similarly, the usage of robots in agriculture is still limited due to technological challenges and high prices. However, there will be significant potential for drones and robotics going forward, especially in China, Europe and North America.

The rising trends of electrification and autonomous operations are driving connectivity adoption in the tractor market. India has a 45% share in the global tractor market but the country’s brands are very selective in providing connected solutions, thus slowing the overall connectivity penetration in the global tractor market.”

Senior Research Analyst Akshara Bassi said, “We will see increased penetration of smart devices, especially smart collars and pedometers among livestock farmers, in the coming years due to the productivity benefits and ease of livestock management offered by these devices. We expect the smart livestock market to grow at 18% annually over the forecast period driven by lower pricing, mass availability of affordable connectivity options, low maintenance of the devices and subsidies by governments to digitize agriculture.” Bassi added, “Increase in labor wages and shortage of labor also drive the farms to automate some of the tasks without impacting their productivity.”

Commenting on the market outlook, Associate Director Mohit Agrawal said, “During the forecast period, the shipments of connected agricultural devices and end nodes are expected to increase by 30% YoY to reach 187 million units from 23 million units in 2022, mainly driven by the crop farming industry. China is projected to be the largest market, propelled by government initiatives and the rise of cooperative farming. Meanwhile, in Western markets such as the US and Europe, the adoption of technology is driven by the large size of farms and manpower scarcity. Despite having the world’s largest arable land, India is expected to lag behind in technology adoption due to the relatively small size of its farms.

The lack of technology awareness among farmers, small landholdings and inadequate cellular network coverage in farming areas are the key challenges for connected farming. As a result, the penetration of connectivity in farms will remain below 10% even in 2030, and a significant proportion of the connected nodes will rely on non-cellular technologies.”

The comprehensive and in-depth ‘Global Connected Agriculture Market, 2022’ report is now available for purchase at report.counterpointresearch.com.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

Analyst Contacts

Mohit Agrawal

Soumen Mandal

Akshara Bassi

Counterpoint Research

press@counterpointresearch.com

Ericsson-Aeris Deal Reflects Broader IoT Market Trends

Mohit Agrawal — Tue, 13 Dec 2022 12:31:43 +0000

Large companies Like Google, SAP, IBM, and Ericsson have quit loss-making IoT businesses.
Ericsson’s failure highlights the fragmented IoT value chain, which makes it difficult for players to capture a significant portion of the value.
Aeris is expected to benefit from the scale of its operations following the closure of the deal with Ericsson.
Further industry shakeout is expected in 2023 as an unsustainable number of players are trying to get a pie of the lucrative IoT market.

Ericsson has announced that it will be exiting the Internet of Things (IoT) market, joining a growing list of companies that have decided to quit this space. The Swedish company has agreed to sell its IoT connectivity management and connected vehicle cloud platform IoT Accelerator to Aeris for an undisclosed amount. Aeris is an MVNO purely focused on providing cellular connectivity for IoT.

Google IoT Core, SAP, Bosch Device Management, and IBM Watson are among the other major players that have decided to cease IoT operations in 2023. Ericsson’s decision is a reflection of the challenges and setbacks the company has faced in this market, as well as the broader challenges that the IoT industry has been grappling with.

Why Ericsson decided to hang up?

Ericsson’s announcement comes after several quarters of disappointing financial performance of its IoT business. Despite investing heavily in IoT technologies and solutions, the company has struggled to break even. Ericsson’s IoT business saw a loss of around SEK 1 billion ($98 million) on revenues of SEK 0.8 billion($78.6 million) in the 2022 full year. Ericsson attributes the limited returns on its investments in the IoT market to the fragmentation of the market, which has resulted in the company only capturing a small part of the value chain. As a result, Ericsson has decided to focus its resources on other areas, such as enterprise 5G and 5G private networks, that will continue to cross paths with IoT.

Aeris gets scale with acquisition

Aeris is a leading IoT MVNO having partnerships with major communication service providers such as Vodafone, AT&T, and SoftBank, as well as leading automotive OEMs. The recent deal is beneficial for Aeris as it will immediately increase the scale of its operations. Upon closure, Aeris will gain 95 million connected devices in addition to its current 5 million devices, while the number of customers is expected to increase from 400 to 9,400. The deal will also shift to Aeris Ericsson’s global connectivity agreements with 35 mobile operators. In a nutshell, Aeris will get the scale and geographical reach. However, the transaction is more like a reverse merger, which may bring new challenges for Aeris as it will have to manage operations at a much larger scale while rationalizing them to drive the combined company toward profitability.

Aeris is planning to combine its intelligent, software-defined IoT network with Ericsson’s connectivity management platform to create synergies and provide new value-added services. Aeris would be looking to bring down the operating costs by consolidating the platforms. However, execution of this strategy may be difficult, as Aeris may face the same challenges as Ericsson unless it partners with companies that bring complementary capabilities to the IoT value chain.

Our take

Despite challenges, the IoT market is expected to continue growing in the future. The increasing adoption of IoT technologies in various sectors, such as healthcare, transportation, and manufacturing, is likely to drive the market’s growth. Additionally, the development of new technologies, such as 5G and edge computing, is also expected to open up new opportunities for IoT companies.

Ericsson’s decision to exit the IoT market not only reflects the challenges and setbacks that the company has faced in this space but also the broader challenges faced by the IoT industry. These challenges include a lack of clear business objectives, a fragmented value chain, and the inability to generate decent returns on investments. This has led to many players leaving the IoT market, and it is likely that further consolidation or exits will occur in 2023. An industry shakeout would be healthy for the IoT market’s growth as an unsustainable number of players are trying to get a pie of the lucrative IoT market.

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IoT Key to Meeting Sustainable Development Goals 2030

Mohit Agrawal — Thu, 10 Nov 2022 11:45:04 +0000

COP 27 (or the 27th Conference of the Parties of the United Nations Framework Convention on Climate Change) is underway at Sharm el-Sheikh in Egypt this week. Leaders and experts are meeting to brainstorm on how to tackle climate change and make our planet sustainable. Poverty, climate change, and food security are the top long-term concerns today. The challenge of sustainable development facing the world today requires unique solutions and technology is sure to play an important and positive role.

The Internet of Things (IoT) is having a profound impact on the way we live and the way we consume. Increasingly, it is becoming a key enabler in sustainable development, both from the consumer as well as industrial perspective. IoT can help achieve the UN Sustainable Development Goals for 2030.

Sustainable Development Goals

The 2030 agenda for sustainable development was adopted by all UN members in 2015. It provides a blueprint for peace and prosperity for people and the planet. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries, whether developed or developing, in a global partnership.

Image Source: UN

IoT can play a role in achieving almost all the 17 goals but below are some of the goals where its impact is going to be significant:

Zero hunger (SDG 2)

There are over 7 billion people who call this planet their home. According to a WFP report, an estimated 768 million people were chronically hungry in 2020 which increased to 828 million in 2022. To achieve the goal of zero hunger, there is a need to increase farm productivity, reduce food waste and improve food storage and distribution.

Smart farming enables farmers to reduce waste and increase productivity. Sensors can be used to monitor weather, soil, and crop condition in real time. Monitoring alone can save billions of gallons of water and gigawatts of electricity by reducing waste and yet increasing farm productivity. Agrisource Data, an Africa-based start-up leveraging IoT and AI for farm analytics claims to have saved 772 million liters of water in the last six years and increase the average yield by around 9%.

Storage and transportation wastages can be greatly reduced by monitoring the environment to ensure optimal temperature and humidity levels. Real-time information helps take corrective action, leading to lower food wastage. Another area where IoT is playing a role is livestock monitoring, enabling farm owners to monitor the well-being of their cattle and reduce the spread of diseases.

Good health and well-being (SDG 3)

Image source: UN

The world’s population is aging and the elderly’s well-being is a concern. According to the World Bank, nearly 10% of the world’s population is aged above 65. In many developed countries, it is already at 20%. In such a scenario, it is imperative that the care shifts from hospitals to homes. This is where connected health using IoT is coming to the rescue to provide quality care from the comfort of home. IoT devices are making independent senior living safer with motion sensors and fall detection and panic buttons helping caregivers monitor the elderly remotely.

Air pollution is a key concern for well-being. To take meaningful and timely action, it is important to measure the air quality at a hyper-local level, which is an expensive proposition. Installing air quality monitoring IoT sensors on vehicles is another way of collecting hyper-local pollution data. Vehicles such as bin lorries, buses, and council vehicles regularly drive throughout most urban and residential areas. Installing IoT air quality sensors on cars along with GPS systems is another way to collect the data without having to invest in hundreds of sensors in fixed locations. Manxtechgroup (MTG) has trialed mobile hyper-local air quality monitoring technology in the Isle of Man, delivering hyper-local measurements in a cost-effective manner.

Wearables, smartwatches in particular, are motivating people to stay healthy. Studies have shown that in the following 13 weeks after a smartwatch purchase, people’s step count increases by an average of 2,000.

Clean water and sanitation (SDG 6)

Image Source: World Health Organization

According to UNICEF and WHO, one in three people globally does not have access to safe drinking water and unsafe water is responsible for 1.2 million deaths every year. IoT can substantially help achieve the clean water objective by reducing water wastage, monitoring water quality, and providing running water through innovative solutions. eWATER is a water operator in sub-Saharan Africa. Combining mobile money, IoT, and Near Field Communication (NFC) technologies, eWATER claims to manage the provision of clean, low-cost water, which is accessible 24/7.

Vodafone UK has partnered with SES Water to develop an NB-IoT-based system to save water lost to leaks. About 23% of the water that runs through underground pipes is lost to leakage, and the project’s short-term aim is to reduce this by 15% in five years, and more than halve it by 2045

For sanitation, IoT-powered smart solutions focus on bringing efficiency in waste collection and management. Route optimization of the waste collection can not only reduce fuel consumption but can also help clear up the waste dumpsters faster.

Affordable and clean energy (SDG 7)

Pollution levels are rising across the world and energy is a big source of pollution. Efforts are being made to produce clean energy at an affordable price.

Smart gird Featured image: Stock

The reliability of renewable energy has been a concern for some. Moreover, the cost of production of green energy has been on the higher side. Combinations of IoT, AI, and ML technologies are helping improve reliability and reduce operational costs. The development of smart grids has been a boon for renewable energy as it improves the reliability of the energy supply by integrating renewable energy with traditional energy sources.

In 2015, the Isles of Scilly (UK) partnered with Hitachi to reduce the island’s reliance on fossil fuels and cut electricity bills by 40%. To meet the goals, the island council installed 400 kW of solar panels on administrative and residential buildings and deployed Hitachi’s IoT platform to distribute the electricity harvested from renewable sources and monitor carbon emissions.

Maintenance of field equipment like wind turbines is expensive and time-consuming. IoT devices capture data and relay it to the cloud, where AI algorithms compare real-time sensor readings with historical data and assess whether the equipment is functioning properly. Power plant personnel and field technicians access the data remotely to determine if repairs are needed. This way, operations cost can be lowered by moving to prescriptive maintenance. Advanced IoT systems may also incorporate edge IoT devices that have enough computing power to locally process sensor data and control the machines without human interference.

The use of smart energy meters enables the collection of real-time consumption data. By using analytics and data processing solutions, electricity suppliers can spot trends and patterns related to peak load conditions. By 2024, 77% of EU households will have smart electric meters. India plans to install 250 million smart meters by 2025. The smart meter will not only bring benefits like accurate billing to consumers but also help the planners use real-time data and analytics.

Industry, innovation and infrastructure (SDG 9)

Creating resilient and sustainable infrastructure and industry, and also promoting innovation, are among the key goals for 2030. From the beginning, key use cases of IoT have been focused on industry and infrastructure. No wonder, an estimated 35-40% of IoT projects currently involve industry or infrastructure. There are innumerable ways in which IoT can help achieve this objective. For instance, in the automotive industry, IoT could enable preventive maintenance, improve navigation, prevent collisions, and enable various levels of vehicle autonomy and other interesting services. In factories, connected operations can lift productivity, lower energy consumption, and reduce costs. US-based start-up Arch Systems provides connected systems for data collection. The systems use sensors to collect factory data in real-time, thus providing detailed metrics to enable manufacturing optimization. The systems extract actionable insights from this data as well as facilitate predictive maintenance. This helps factories move from preventive to predictive maintenance, improving uptime.

Sustainable cities and communities (SDG 11)

Image Source; UN World Urbanization Prospects

The world is becoming increasingly urbanized. Over 60% of the world’s population is projected to live in cities by 2030. Rapid urbanization is underway in emerging economies like India, China, and Indonesia. The cities account for 70% of the carbon emission. Clearly, sustainable cities are needed to fight off the threat of climate change. IoT not only supports sustainable cities but also aligns services and facilities with the citizens’ needs.

IoT and other digital transformation technologies can be embedded across the city infrastructure. Smart traffic signals can respond to different traffic conditions, saving time and fuel as well as relieving congestion. Connected smart bins can alert the authorities when the bin is full so the waste collection can move from a pre-decided itinerary to a need-based frequency. Security camera networks can make cities safer. Reducing fossil fuel consumption is another important step towards a sustainable and cleaner environment. Europe has taken the lead in installing connected charging stations, which has led to a steeper adoption of electric vehicles.

An example of a sustainable city is Peachtree Corners, 20 miles north of Atlanta. The city has smart buildings, connected highways, sensors, cameras, and other smart devices. Bosch is testing its intelligent video analytics with machine learning capabilities on the roads in Peachtree Corners, covering a connected intersection, driverless vehicles, teleoperated scooters, and autonomous package delivery. Singapore has taken the smart city concept to the next level. Recently, Singapore completed work on the world’s first digital twin of an entire nation. Bentley Systems tools accelerated the process of transforming raw GIS, LiDAR, and imagery data into reality mesh, building, and transportation models of the country.

In Summary

Sustainability need not be at odds with development and industry. The use of technology and the right intent can help us achieve the UN Sustainable Development Goals for 2030. IoT, undoubtedly one of the largest enablers of digital transformation, has the potential to be the game changer for sustainability. To increase the industry’s awareness of this, the World Economic Forum (WEF) came up with a set of guidelines in 2018 for IoT’s role in providing a sustainable future. We sincerely hope that the world overachieves the sustainability goals for the sake of our future.

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Siemens Makes Headway on its Digital Transformation Initiative Xcelerator

Mohit Agrawal — Thu, 20 Oct 2022 05:48:45 +0000

Since the onset of the COVID-19 pandemic, the global marketplace has been abuzz with the term ‘digital transformation’, which is the strategic adoption of digital technologies. Although it has the potential to unlock great value in organizations, there has been little development on this front due to the fragmented ecosystem and companies’ inability to come together and partner for project implementation. In June this year, Siemens launched its open digital business platform, called Siemens Xcelerator, to boost digital transformation and value creation for customers of all types.

Last week, Siemens entered partnerships with Volta Trucks and Automotive Cell Company (ACC) to strengthen its offerings in the transportation industry. With this, Siemens Xcelerator now has partnerships with 58 companies.

What is Siemens Xcelerator?

Siemens Xcelerator is an open digital business platform featuring a curated portfolio of IoT-enabled hardware and software, an ecosystem of partners and a marketplace. With Siemens Xcelerator, the company aims to make digital transformation easier and faster, helping organisations move projects beyond the pilot stage. The key building blocks of the platform are interoperability, flexibility, openness and strong cybersecurity.

A good example of how Siemens Xcelerator aims to make a difference is the immersive digital twin technology, which makes a virtual replica of a product or service. Siemens has partnered with NVIDIA to enable an industrial Metaverse and increase the use of the AI-driven digital twin technology. Having a digital twin significantly reduces time-to-market and development time as it allows rapid iterations. Siemens is a pioneer in the digital twin technology and has established several partnerships in this space. It partnered with Bentley in 2016 to develop digital twins for the process industry. With NVIDIA’s Omniverse, Siemens aims to create immersive digital twins accessible to everyone. Companies of all sizes will be able to deploy the digital twin technology and receive real-time performance data, create innovative industrial IoT solutions, leverage actionable insights from analytics at the edge or in the cloud, and tackle the engineering challenges of tomorrow by making visually rich and immersive simulations more accessible.

Viewpoint

Integration among operational technology (OT), information technology (IT), and new digital technologies has been the bugbear of digital transformation. In a recent Bain survey of 500 industrial IoT decision makers, 41% of the respondents described integration to be very complex and their biggest challenge. It is great to see Siemens, which has traditionally been a strong OT/IT player, bring its knowledge and expertise into integration. Digital transformation is much more than just applications and software as hardware plays a role just as important. For digital transformation to achieve greater heights, hardware and software must converge or the idea will remain a mirage.

Siemens is betting massively on its digital business by partnering with key industry players, such as NVIDIA and Microsoft, and making acquisitions such as that of Brightly Software and Zona Technology earlier this year. The company expects the acquisitions to play a significant role in creating vertical-specific offerings. Siemens managed to partner with 58 companies within three months of launching Siemens Xcelerator. It started on the right note by striking early partnerships with NVIDIA, Microsoft, Accenture, SAP, Bentley, and more. The partnerships with Volta Trucks and ACC will help Siemens expand its offerings in the electric automotive space. Siemens has been a vocal supporter of openness and creating a marketplace/ecosystem is a logical move. The industrial Metaverse is an interesting initial use case and its first pilot solution will be developed at BMW’s showcase electric vehicle manufacturing site in Hungary. The success of the industrial Metaverse will be closely watched by industry observers.

What caught our eye is the Siemens Xcelerator Academy, which supports customers in their digital transformation journey. The academy offers customers learning opportunities across the globe in different formats. Customer education and problem-solving is key to removing barriers for the successful implementation of digital transformation. We are so focused on technology that we often overlook the softer aspects of customer training and then wonder why the projects are not scaling up.

At Counterpoint Research, we believe that partnerships between various ecosystem players is the only way to achieve the promise of digital transformation. There is no one company that can solve all the challenges of digital transformation. “Partner or perish” is a clear choice and an initiative like the Siemens Xcelerator is a move in the right direction, though it may be still in its early days.

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