Translated by
2019/11/27 16:16:34

Internet of Things, IoT, M2M world market

Technologies of the world IoT fill the world of people, they are called to make our life more convenient, having exempted us from many routine actions. Directory of IoT-systems and projects, IIoT RFID


Primary partition: Internet of Things of Internet of Things (IoT)


Internet of Things in a telecom

IIoT - industrial Internet of Things

The separate article is devoted to the overview of industrial Internet of Things:

Typology of state programs of support of IoT abroad

From the presentation" Industrial Internet as catalyst of the market of the equipment", President NAPI, Nedelsky Vitaly, February, 2017
Programs of complex development of IoT
Focal programs of development of IoT
Participating companies of an ecosystem of IoT

2020: Great Britain prepares the law on protection of IoT-devices

On January 28, 2020 became izvesstno that the Government of Great Britain published the bill directed to protection of IoT-devices. Read more here.


Forrester: what to wait from the market of Internet of Things in 2020 for

At the end of November, 2019 the Forrester analytical company published the report on what to wait from the market of Internet of Things in 2020 for. The forecast of experts, according to them, should help Chief information officers and to their organizations to work in the developing IoT ecosystem.

Architects of IoT will integrate a 5G into new projects, but not as LoWPAN replacement

Before emergence of a 5G networks many IoT devices transferred data using technologies of a wireless personal area network (LoWPAN) with low power consumption. However, though the 5G becomes more and more popular, this network will not replace the existing LoWPAN networks, and will only expand their application, the report says. Many industries will continue to use LoWPAN technologies, and solutions of a 5G network will be applied to data transmission in cloud services or through telecommunication networks.

Many IoT devices transferred to a 5G networks data using technologies of a wireless personal area network (LoWPAN) with low power consumption

Consumers will use intelligent displays, stimulating growth of multimodal design

It is expected that these technologies will quickly develop in 2020, covering both personal, and corporate devices. The solutions for management of conference rooms allowing the whole groups to interact with remote users will become one of the most popular corporate solutions. In process of development the technology will pass more and more to multimodal design, attaching identical significance to a voice communication, display and a touch control. At the same time the leading developers will create the software which will allow intelligent displays to adapt to different situations.

Cybercriminals will use IoT-devices for obtaining the redemption from the producer

Though IoT provides a set of advantages, growth of number of devices expands an action field for cybercriminals. Connection of all devices to network does them extremely vulnerable. It is supposed that in 2020 malefactors will use both personal, and corporate devices for the redemption. It means that cybercriminals can blackmail regular customers and producers of devices. To prevent it, developers should cooperate closely with groups of security or employ experts who can integrate methods of risk reduction. Besides, the companies need to think over carefully the action plan on a cyber attack case.

IoT provides a set of advantages, growth of number of devices expands an action field for cybercriminals

The connected trucks will use IoT for transformation of a supply chain

It is supposed that IoT will provide more effective logistics in the field of cargo transportation and optimizes a supply chain. The continuous communication and control will allow to lower number of stages of empty trucks, having accelerated and having reduced the price of transportations. Besides, IoT will help drivers to observe an operation mode and rest in way, increasing safety of cargo transportation and also will allow to reveal and correct damages of machines quicker. In warehouses of the IoT device will be used for ensuring safe operation of machines and movement of heavy objects on the automated carts. The IoT technology will also help to improve customer service quality - the goods delivery will become more personalized.

Emergence of an ecosystem of the connected services

Many large companies offering the connected products will begin to provide services based on data of IoT. The connected products provide permanent information exchange between clients and the producer. They also become the reason of fixed costs for producers which need to keep track of efficiency of products and to provide software updating. Therefore producers look for new sources of income for the connected products to compensate these costs. According to the report, in 2020 large consumers and service providers will pass from sale of separate products to service offering of IoT with assistance of partners in a uniform ecosystem.[1]

Microsoft: 85% of the companies use Internet of Things

On August 20, 2019 Microsoft provided the research IoT Signals devoted to dynamics of implementation of Internet of Things in the companies from the different industries and the countries of the world[2]. According to its results, 85% of the organizations already have at least one business project in this sphere, and by 2021 this digit will grow to 94%. At the same time 88% of heads of such projects realize advantages of technology to success of the company and expect 30% an investment payback in two-year perspective.

Reasons for IoT adoption

Among main objectives of implementation respondents selected need of optimization of workflows (56%), increases in productivity of employees (47%) and also the general security of the company (44%). Respondents predict that artificial intelligence, modern computing technologies, a 5G, digital doubles and a blockchain will accelerate distribution of Internet of Things.

The complexity of implementation and further work (38%), including lack of necessary IT infrastructure in the companies became one of the main stop factors of use of technologies of Internet of Things. Also those who already started projects in the field of Internet of Things faced the shortage of qualified specialists (47%) and resources for their training (44%).

Top IoT benefits

At the same time in spite of the fact that 97% of respondents are disturbed by security of the systems of Internet of Things, this factor does not constrain the speed and volume of implementations. As the most perspective preventive measures they select: creation of a reliable authentication system of users (43%), tracking and device management of Internet of Things (38%) and protection of their endpoints (38%).

Top IoT challenges
Microsoft keeps development of smart devices and Internet of Things and by 2022 is going to invest 5 billion in this sphere dollars. We create solutions to make IoT-projects the most effective for business of our clients. So, Azure the IoT Central platform allows to simplify implementing solutions, to reduce the loading and costs connected with management and development. And operating system Microsoft Azure Sphere provides several levels of protection, helping to prevent thus negative situations, for example, loss data. It is already used by such companies as Starbucks: she trusts our system protection of tens of devices in each trade point,
emphasized Dmitry Halin, the Director of the department of technology policy of Microsoft in Russia

U.S. authorities are going to take Internet of Things under strict control

On April 30, 2019 it became known that in the U.S. Senate there took place listening concerning cyber security which participants will discuss the bill giving to the authorities of the country full access to devices of Internet of Things (IoT). On the website of the Senate it is reported that the threats and security concerns created by Internet of Things" and "methods of creation of additional cyber security" will be discussed ".

If the specified document is accepted, by 2020 in the USA only the structures of Internet of Things approved by the government conforming to security requirements (it is about devices which are connected to the Internet and transfer information, but are not at the same time computers or smartphones will be able to be used: smart TV, systems of the smart home, etc.). The bill assumes that developers of such devices will report to the authorities all information on a firmware, the scheme of work, any risks of cracking of devices and also methods of counteraction to possible cracking. The devices made outside the USA whose developers will refuse to provide the relevant information, will be prohibited to use.

These devices are a powerful leader for DDoS attacks and cyber crime because all this microcomputers. Devices manage dangerous productions, intervention can lead to technogenic catastrophe. Therefore the subject, certainly, serious also should be controlled by the state at the level of protection of traffic which goes between provider and the device. Right there and requirements to enciphering, administration and security. Well and, of course, all this needs to be controlled at the level of protocols.

He noted that in Russia "dense discussion of these innovations and methods of control" is conducted too.

In the draft of the target program "Development of Production of Industrial Output of Networks of Fifth Generation and Internet of Things in the Russian Federation for 2019-2024" developed by Minpromtorg it is going to direct about 28 billion rubles to creation in Russia of the equipment and software for 5G networks and IoT. It is supposed to adjust release and implementation micro and macrobasic, switches for different types of networks, the systems of investigation and search operations (SISO) and other network equipment, but also, modules 5G for smartphones and other user devices, SIM cards of standards USIM/SIM, the digital IoT platforms and the software for monitoring of 5G networks and management of them.

At the beginning of April, 2019 the concept of development of IoT in Russia was approved by the Ministry of Telecom and Mass Communications. She assumes creation of the Register of identifiers of Internet of Things which will provide uniform identification of users of data of networks and, in fact, will create the closed IoT network in the territory of the country. Also the four-level model of work of networks of Internet of Things is stated in the concept[3].

Top-10 trends in the field of cyber security of Internet of Things — Counterpoint Technology

At the beginning of February, 2019 the Counterpoint Technology Market Research analytical company submitted ten forecasts to information security fields for 2019. Read more here.


The number of IoT-devices in the world reached 22 billion, but to earn from them not easy - Strategy Analytics

By the end of 2018 the number of the devices connected to Internet of Things around the world reached 22 billion pieces, counted in Strategy Analytics research company. Data were published on May 16, 2019.

According to the experts, more than a half of the working IoT-equipment at the end of 2018 was the share of corporate solutions. The share of mobile and computer devices made a little more than 25%. At the same time specialists consider that the home appliances due to penetration of the systems of the "smart" house in regions in which they are developed poorly will become the most fast-growing segment of the market of Internet of Things.

The forecast for the number of IoT-devices in the world, data of Strategy Analytics

In the report of Strategy Analytics the following conclusion is drawn: despite the increasing number of IoT-devices of an opportunity for income generation from them remain indefinite, especially for service companies.

Service providers can look at big scales of Internet of Things and assume that revenue itself will come to them — the leading analyst of Strategy Analytics and the author of a research David Mercer says. — However it is unknown what applications and services will stimulate revenue growth and in what degree. Besides, additional researches are necessary to understand how this ecosystem will develop for satisfaction of needs of consumers in the future.

According to analysts, the companies wishing to earn from Internet of Things need to make more conscious and considered choice of segments in which they want to work and also it is correct to place priorities when choosing business projects and models for earnings.

It is predicted that by 2025 and 2030 in the world there will be 38.6 billion and 50 billion IoT-devices respectively. Sales of wearable electronics and cars with IoT-functions will grow, but their amounts will be not so big in comparison with other segments of the market of Internet of Things.[4]

The number of the IoT-devices connected to cellular networks passed for 1 billion — Berg Insight

In 2018 the number of the devices from Internet of Things connected to cellular networks worldwide reached 1.2 billion pieces, having increased by 70% concerning the 2017th. In money the amount of this market increased by 19% to 6.7 billion euros. About 80% of revenue were the share of 10 largest producers. The Berg Insight analytical company published such data on May 13, 2019.

Growth of the market of the cellular IoT-equipment is first of all a merit of the Chinese market of which about 63% of the working devices were the share, the report says.

In 2018 the number of the devices from Internet of Things connected to cellular networks worldwide reached 1.2 billion pieces
China implements technology of cellular Internet of Things with huge scope — the leading analyst of Berg Insight and the author of a research Tobias Ryberg specifies.

According to him, data of the Chinese mobile operators show that by the end of 2018 the number of the IoT-devices functioning in the People's Republic of China connected to cellular networks was 767 million units that is 124% more than value of year prescription. 54.7 IoT-connections are the share of 100 inhabitants, and on this indicator China advances Europe and North America.

The government of China actively advances Internet of Things as the tool for achievement of goals of domestic and economic policy, and the non-state companies implement IoT-technologies for increase in efficiency and stimulation of innovations. Berg Insight considers that the role of the authorities is the main explanation of why China advances the rest of the world regarding penetration of Internet of Things.

Average revenue of the mobile operator counting on one cellular IoT-device in Celestial Empire reached 0.22 euros at the end of 2018. For comparison, in Europe this income appeared equal 0.7 euros.

According to forecasts of researchers, by 2023 in the world 9 billion IoT-devices working on the cellular networks will be charged extra.[5]

Market size in $646 billion is IDC

The International Data Corporation (IDC) analytical company  estimated the volume of the world market of Internet of Things at $646 billion at the end of 2018. Such data are provided in the report of Worldwide Semiannual Internet of Things Spending Guide which experts updated at the beginning of January, 2019.

Internet of Things is implemented in all industries, in the governments and in everyday life of consumers — the vice president of IDC specializing in   the direction Internet of Things and Mobility, Carrie Carrie MacGillivray comments on a research. — All of us more often see how the data created by attached devices help the companies to work more effectively, to gain an impression about business processes and to make decisions in real time. For consumers the data access changes a method of obtaining information on a status of households, vehicles and family members and also about their own health and a physical status. The new stage for IoT only begins: we see transition from the digitalization giving physical capacities to automation and expansion of human experience in the connected world.

According to forecasts of experts, global IoT-expenses in 2019 will increase by 15.4% and will reach $ 745 billion, and in the years ahead they will also rise two-digit rates and will exceed $1 trillion in the 2022nd.

The greatest costs for Internet of Things are come to the end of 2018 on production operations, management of production assets, the systems of the "smart" house and monitoring of transportations. By 2022 the greatest growth rates of IoT-investments are expected in the following areas:

Areas in which IoT-solutions are implemented most quicker, the forecast of IDC

Predicted in the IDC loudspeaker of growth of expenses in these areas it is stated in the chart above.[6]

What to wait in the market of Internet of Things in 2019 for — DataArt

In November, 2018  the DataArt company specializing in outsourcing of software development and such areas as Internet-applications, corporate databases and instruments of industrial automation, submitted the forecast for  market development of Internet of Things in 2019.

According to experts, once Internet of Things was niche technology for startups, and now on its basis build business of corporation with turnover in millions of dollars. IoT already changed life, and 2019 should become the period of considerable changes in this area. IoT-specialists of DataArt called top trends which will prevail in the market of Internet of Things in 2019.

Boundary calculations

Devices will become even more powerful, providing local data processing and possibilities of artificial intelligence. It will reduce volumes of data transmission and dependence on cloud computing and also will provide more flexibility to the companies. Boundary calculations will have significant effect on those industries where the immediate reaction based on complex analysis of data in real time is necessary (for example, production and public security) and where cloud communications can be limited (delivery, logistics, etc.).

IoT-specialists of DataArt called top trends which will prevail in the market of Internet of Things in 2019

Competition aggravation in information security field

  The race of the companies which will compete in  development of the most effective and  safe IoT-solutions will become a key step on the way to transformation of the industry. IoT-market specialists will concentrate on  the solution of key security concerns and  elimination of the vulnerabilities connected with  Internet of Things which interfered before with wide circulation of technology.[7]

Domination of big players

According to forecasts of DataArt, in 2019 the aggravated competition between technology giants will be noticeable, like Amazon Web Services (AWS), Microsoft and Google as big IoT-platforms became an everyday occurrence. Such corporations will be able to take the most part of the market and to continue to expand an influence zone  at the expense of  the organizations adjoining them. Against the background of fight for a market share among large producers of the IoT-platform the small companies will be forced for survival to concentrate on  niche areas (for example, data movement, the solution of special problems in  the selected industries, work with  certain types of devices  , etc.).

The growing use of "smart" devices

Analysts say that in the different industries "smart" devices will become undoubtedly even more popular. The growing use of such electronics in automobile, industrial, medical, production and other sectors is expected.

Shift of a business model in the automobile market

Data become the vital basis of automotive industry. Market participants will actively implement IoT-technologies further to provide to machines imperceptible collecting and monitoring of data and also their interaction with services of the "smart" city and other vehicles.

As a result the automotive industry will continue transition to the business models connected mainly using data. We can see special shift at OEM manufacturing who invest heavily in the innovation startups for the analysis and data processing, the study says.

The era of a 5G came

The 5G network which are considered as one of the most anticipated technology trends will be opened a new era for Internet of Things, promoting gain of interrelation of elements of the modern world.  It will lead to further development of IoT-innovations that will give the chance to collect data, to analyze them  and  to manage them  almost in real time.[8]

Five trends for 2019 from Forrester

The number of the vendors aiming to occupy a part of the market of IIoT continues to grow, but some leaders left a field, said in other research published this week. According to the report of Forrester Research on software platforms of IIoT, C3 IoT, Microsoft, PTC, SAP and IBM are leaders of the industry, at the same time the strongest offer does C3 IoT, and IBM much more is ahead of other suppliers on strategy. Amazon Web Services is considered only "applicant" for IIoT space, having remained behind the strongest players, such as GE, Oracle and Siemens. Forrester delivered Cisco on the last, 15th place among the companies on the range and strategy. Vendors were estimated by 24 criteria, including analytical opportunities, use of technology of digital doubles and production integration.

In November, 2018 the Forrester Research analytical company published the forecast for market development of Internet of Things in 2019.

Experts say that this technology quickly developed in previous years thanks to wide circulation of sensors and also infrastructures of cloud and peripheral computing. As a result Internet of Things began to change not only business of the companies, but also life of ordinary people. Five trends which, according to researchers, will prevail in the field of IoT and to have an impact on the organizations and enterprises are given below.

The IoT-services sold in a complex will try to stimulate the slowed-down growth of consumer market

Forrester considers that the concept of the centralized "smart" house in which devices closely interact among themselves became a dream rather of companies, than consumers. Interest in the market of the equipment for "smart" houses decreases from home users who prefer to buy only one multi-function printer managed by means of the application. Such trend, most likely, will remain in 2019. But the companies can try to integrate services in packets and to attract clients with discounts, but people are not ready to such integrated by communications, said in the report issued in November, 2018 yet.

IoT stops being just general term

According to analysts, a talk on Internet of Things as about the unclear fashionable term will pass into the background, and on the first — projects of real life application of technology will appear.[9]

Internet of Things in itself does not bear value — the analyst of Forrester  Michele Pelino says. — It would already be time to be engaged in practice, solutions, applications, management tools and monitoring, solutions for performance management, various solutions which together allow to solve a problem. Here that such attractive offer.

Internet of Things began to change not only business of the companies, but also life of ordinary people, analysts of Forrester consider

IoT-vendors will become niche

Analysts consider that in 2019 developers of IoT-platforms will narrow the sphere of the activity, focusing on certain options of use. For example, businessmen do not need the unique platform of industrial Internet of Things for management of each process in the company. Instead they look for the solutions specializing in specific objectives. With respect thereto in 2019 it is worth expecting even more partnership agreements with IoT-vendors.

Hackers will attack the "smart" cities

One more trend of 2019 experts call cyber attacks to the systems of the "smart" cities. Many cities are not able to ensure safety of attached devices, sensors and a communications infrastructure and also confidentiality of citizens in the systems of the smart city. Specialists predict increase in number of the purposeful attacks using programs racketeers against vulnerable components of deployment of smart cities that will lead to failures in service of citizens and will force the cities to invest in cyber security to minimize risk of the further attacks.

Origin of the market of services of management of IoT-systems

Forrester sees origin of the market of services in management and operation of the fragmented IoT-objects.

The idea of management of continual all lifecycle of the product connected to network becomes more and more important, and finally opportunities for such services of management will need an impulse next year. It on most is connected with the fact that we see more and more types of products which interact with each other in industrial conditions — Pelino told.

Forecast of GlobalData

Global market [[Internet of Things of Internet of Things (of IoT technologies)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|Internet of Things (IoT)]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]] which consists of the software, services, services of connection and devices, in 2018 reached 201 billion dollars. According to forecasts of GlobalData analytical company, by 2023 its volume will be 318 billion dollars, at cumulative annual increment (CAGR) in 20%.

In the market solutions for utility and manufacturing enterprises are in the lead. Analysts estimate their opportunities at 58% this year and 55% of the market in 2023. Experts allocate for power and transport 15% of the market during the predicted period. The largest potential of profit in the market the software and services, such as design, installation, service and project management and also IoT-platforms, services in application development and software have.

In terms of implementation of IoT on production, the enterprises only begin to use a tekhnoloniya for more effective control over expenses or performance improvements. Deployments of IoT become more extensive, the technology gains attractiveness for the companies. The technology is changed by augmented and virtual reality, machine learning and artificial intelligence that as a result will allow the enterprises not only to optimize the current products and processes using IoT, but also to generate new revenue streams by means of development of own new products and services.

Forecast of Market Research Engine

In August, 2018 three research companies prepared reports on perspectives of market development of industrial Internet of Things (IIoT),[10] writes]. According to the last report of Market Research Engine, the volume of global market of IIoT by 2022 will exceed 176 billion dollars. Within the next four years the market will grow with cumulative annual growth rate (CAGR) exceeding 8%.

Analysts consider pacing factors of growth development of semiconductors and electronic devices, standardization of IPv6, growth of cloud computing and support from the governments. Restraining factors are still the need for standardization and the shortage of a skilled labor force - in it the report echoes works of other researchers. Authors of the report turned on in number of key participants of the global sector of IIoT General Electric, Cisco, Intel, Rockwell Automation, ARM, ABB, Siemens AG, Honeywell, Dassault Systemes, Huawei, Zebra Technologies, IBM, Bosch and other companies.

Forecast of Zion Market Research

Researchers of Zion Market Research believe that IIoT will grow with an indicator of CAGR a little more than 8% within the next five years, but, by their calculations, by 2023 it will reach 232.15 billion dollars. Zion estimated IIoT cost in 2017 at 145.81 billion dollars that considerably exceeds data of Market Research Engine.

Forecast of Juniper Research

The number of the connected sensors and devices of Internet of Things in the world in 2018 will be 21 billion, and by 2022 will exceed 50 billion. It is said in a research of Juniper Research company.

The driver of growth is development of peripheral calculations, experts say. An essence of this approach – data processing not in the center of network, and at its borders, on the periphery. Development of such calculations will allow to reduce requirements to network transmission capacity, will reduce response time of applications and will increase the security level of data.

Projects of consortia based on a blockchain and other technologies of the distributed registers will play an important role in development of Internet of Things. However possibilities of use of a blockchain in IoT will be limited until this decentralization is reached, experts of Juniper Research consider.

Key vendors of IoT in the report call IBM, Microsoft, Intel, Bosch and Nokia.

Software AG: Why a half of IoT-projects fails

By May, 2018 implementation of digital technologies to all spheres of life began to happen with great strides, however perspectives are still far not so hospitable as it would be desirable. The senior vice president of IoT and cloud services in the German technology company Software AG Bernd Gross notes that on the market this tsunami of new devices in the field of Internet of Things rushed. They come to the forefront because the cost of their connection falls constantly, and they become more and more available. However more than 50% of IoT-projects fail, and one of the main reasons as Gross considers, it is possible to consider desire of developers to implement technology before they manage to estimate all contributing factors of connection and total amount of the involved technologies.

Gross assumes that success of IoT is possible only (or, at least, it is the most probable) when using special software platforms. According to Gross's proposal, IoT devices should trace the status and send necessary data on a control panel. That, in turn, will carry out the assessment on key performance indicators. All these functions should be available to software developers via open interfaces of programming. The vice president of Software AG for industrial marketing Theo Hildyard supported the theories which are put forward by his colleague Gross and offered three main stages of implementation of the IoT applications.

More than 50% of IoT-projects fail, and one of the main reasons can consider desire of developers to implement technology before they manage to estimate all contributing factors of connection and total amount of the involved technologies

First, according to Hildjyard, it is the best of all to begin with separate projects according to one IoT application. At first sensors and other devices are installed; at the same time a part of the analyzed data can arrive from archive, but some of them will be transferred in real time therefore from the operator it is required to control the installed devices somewhat. At this stage the commercial advantage and efficiency of the project should be confirmed. Developers should eliminirovat excess risk thanks to the fact that the application will not be completely integrated into work of other operational processes of firm.

The second stage is called the period of integration of the processes based on data retrieveds. At this stage the company can begin to consider results of analytics of IoT when planning further activity. Operational technologies are used for monitoring of processes and operation of devices; on the basis of data retrieveds they can adjust production and industrial operations. At this stage as Hildjyard notes, it is already possible to use IoT for a call of the specialist in need of maintenance of the device or for the order of fuel, spare parts and other goods necessary for smooth operation of the device.

Only at later stage using machine learning and artificial intelligence it is possible to begin implementation of the innovative technologies on the basis of the data obtained and analyzed by IoT. At this stage the company can begin work on new devices and even to enter the new markets.

Gross also noted that when choosing the IoT platform it is necessary to consider certain characteristics. First, the possibility of fast deployment as not all IoT-projects are successful is very important, and any firm needs to have an opportunity to pass quickly to other idea within several days, but not months. Secondly, the open independent technology is of particular importance - all functionality should be available via open interfaces of programming. The company should have an opportunity to expand the project if it is successful. And, certainly, reliability should be ensured and safety of the platform - in the center of attention remains a problem of confidentiality of data, the top manager of Software AG added.[11]


The number of IoT-connections reached 407 million

76% of global market of Internet of Things (Internet of Things, IoT) on the cellular transmission networks are the share of ten mobile operators. According to the largest companies, the number of IoT-connections in the world as of the end of the first half of the year 2017 made 407 million.

China Mobile from 150 million IoT-connections for this period was the largest provider. Vodafone took the second place from 59 million connections, having outstripped China Unicom from 50 million IoT-connections. AT&T and China Telecom (Chayna Telecom) took the fourth and fifth places (36 million and 28 million IoT-connections respectively).

Such operators, as Deutsche Telekom Softbank Sprint,/, Verizon also Telefónica are in the range of 15-20 million subscribers of cellular communication of IoT which number annually grows for 15-30%. Telenor it appeared on the tenth place from about 12 million cellular subscribers of IoT.

The Chinese operators are in the lead on number of connections, however the western companies are ahead of them on income. By estimates of analysts, at least three groups of operators — AT&T, Verizon and Vodafone — will gain more than $1 billion income from IoT in 2018.[12]

10 trends from Forrester Research

In December, 2017 analysts of Forrester Research formulated 10 key trends which are expected in 2018 in the field of Internet of Things (Internet Of Things, IoT).

1. Distribution of voice services

The companies will offer more and more voice services, and the number of the last in 2018 will double. At the same time the financial institutions and other industries providing services in which performing transactions requires authentication will be not so active in this plan.

2. Commercialization of IoT-data

The European regulators will prepare laws which will open the road for commercialization of data of IoT. Forrester notes that the companies from the USA advance European in respect of generation of profit from IoT. To reduce this gap, the European Commission will approve the directives stimulating use of advanced technologies and development of digital economy.

3. Marketing specialists realize possibilities of IoT

Seeing the growing popularity of intellectual digital assistants like Amazon Alexa and Google Assistant and their implementation in the increasing number of devices, marketing specialists will understand what huge prospects it offers in terms of an opportunity "reach" target audience. At the same time believe in Forrester that wearable electronics in 2018 still will remain a niche segment.

4. Deployment of the peripheral IoT-systems

So far processing of IoT-data happens mainly in DPC or in a cloud, but in 2018 so-called peripheral IoT-devices (edge IoT devices) capable to locally analyze these, and cloud capacities generated by them will begin to be implemented to use for security, scalability, configuring and management.

5. Providers of industrial IoT-platforms will leave IaaS-business

In 2017 all leading industrial IoT-platforms provided at least a part of the services and IoT-opportunities through providers of hyper scalable clouds, including Amazon Web Services (AWS), IBM and Microsoft. With growth of geography of a scope and IoT-opportunities of the last in 2018 this trend will amplify.

6. Specialization of IoT-platforms

Tools for remote monitoring and device management are required for developers of IoT-products. Respectively, IoT-operators need to create specialized software which will connect various IoT-assets of the enterprises in uniform business process and will eliminate need for manual adjustment of separate IoT-elements. Preference will be given to the IoT-platforms developed taking into account needs of the client.

7. Consolidation of IoT-platforms

Aiming to cut down expenses and to reduce cross-network delay at introduction of data and waiting of the answer, more and more enterprises will aim to use boundary network segments for processing and data analysis. Growth of costs due to the need to develop not only basic network, but also peripheral capacities, will affect all, except for the largest providers of IoT-platforms, and will force players to moderate the ambitions or to leave the market in the next three years.

8. Integration of IoT-platforms with public cloud services

Requirements to developers of IoT-platforms, such as low costs of implementation, fast creation of prototypes, a global scope, easy integration with recording systems and interactions and also the minimum maintenance, will promote the accelerated implementation of IoT-platforms by public cloud providers.

9. IoT in the center of more and more destructive cyber attacks

Analysts of Forrester predict increases in number of the cyber attacks connected with IoT as the security issue of Internet of Things for producers remains minor.

10. IoT-platforms on the basis of a blockchain

Experts expect active to penetration of a blockchain into Internet of Things. By Forrester estimates, in 2018 extent of implementation of IoT-platforms on the basis of a blockchain will reach 5%.[13]

HPE: more than 50% of the companies mastered Internet of Things

In September, 2017   the Hewlett Packard Enterprise (HPE) IT corporation published results of the research devoted [[Internet of Things of Internet of Things (to IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|to Internet of Things (IoT)]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]. For drawing up the report about 3100 heads and IT specialists in 20 countries of the world were polled.

According to HPE, about 57% of the companies already implemented IoT-technologies, and by 2019 this share can grow to 85%. Many (88%) from those who already use Internet of Things, noted a fast investment payback in these projects.

Many of those companies who already uses Internet of Things, noted a fast investment payback in these projects

In 80% of the medical institutions which already mastered Internet of Things noted  growth of the innovations, for example, connected with existence of continuous access to medical data of patients and a possibility of operational diagnosis. Almost same respondents (76%) were marked out that Internet of Things increased transparency of the processes which are taking place in the organizations, having simplified joint work of medical personnel. 73% of health facilities could cut down expenses at the expense of IoT-solutions.

About 72% of the commercial organizations use opportunities of Internet of Things. Most often it is expressed in application of "smart" conditioning systems and lighting (56% of respondents work with them) and personal mobile devices (51%). Besides, some companies are connected to locational IoT-services and control services of utility resources (to the electric power, etc.).

Affirms that use of IoT-technologies allowed to increase efficiency of IT departments in 78% of the companies.

Internet of Things gets also into state bodies more and stronger. About 42% among them use IoT-innovations, including in security systems (57%), street lighting (32%) and motor transport (20%). 70% of state institutions said that Internet of Things helped to increase transparency of work of the organization in general.[14]

Almost all companies (97%) which participated in poll expressed confidence that implementation of IoT-technologies will pay off within five years.

IoT Analytics: the number of IoT-platforms in the world reached 450

The number of IoT-platforms around the world for last year grew by 25% and was 450 — such data are provided in the report of Global IoT Platform prepared by IoT Analytics.[15]

"The market of IoT-platforms still becomes more saturated and fragmented. However dynamics changes: in spite of the fact that we continue to observe emergence of startups in this segment, most of large suppliers already offer the IoT-platforms. It is probable that emergence of new IoT-platforms from IT giant will become an unusual occurrence" — the director of IoT Analytics of Knud Lasse Lui believes.

According to the report, platforms from 40 countries of the world are presented at the market, but more than a half of developers is based in the USA. At the same time more than 30 companies from the last year's report stopped activity: they or left business, or were purchased by large players.

Most of the existing suppliers is concentrated on support of IoT-solutions in the field of industrial production (32%), the smart cities (21%) and smart houses (21%) now. Earlier the segment of smart houses held the first place of rating.

Berg Insight: 156 million subscribers are the share of 300 largest projects in IoT

The Berg Insight consulting firm submitted the unique database in 2017. The document covers 300 largest deployments of IoT-projects around the world using mobile technologies. Large-scale projects from 2004 to 2016 in different regions of the world are considered. It is brought and the five-year forecast for each project[16].

The different types of projects and category of products unrolled in all vertical markets including after-sale installation of transport telematics (including post warranty installation and service), fleet management and MRM (Marketing Resource Management is specialized software products for marketing automation), health care, OEM telematics, applications for retail, smart houses and buildings, utilities, wearable devices and consumer electronics and also industrial M2M-solutions and others are presented in the extensive list.

"The projects included in the list top-300 total about 156 million active subscribers of IoT-services", - Rickard Andersson, the senior analyst of Berg Insight reported.

He added that it corresponds to 39.2% of the total number of cellular IoT-connections worldwide for the end of 2016. By 2021 the volume of a subscriber base of these projects will grow to 344.5 million. Cumulative annual rate of a gain (CAGR) of the user base is expected at the level of 17.2%.

"More than 1 million subscribers is the share of 30 deployments. More than 60 million subscribers are the share only of 10 largest projects", - Andersson continued. Fleet management and MRM are the largest verticals on the number of the unrolled projects. Further retail applications, after-sale transport telematics and OEM and also smart houses and buildings follow.

Analysts of Berg Insight also compared the number of active subscribers in each vertical in the list top-300. It became clear that the OEM telematics is the largest position of which 30 million subscribers are the share. Not about 27.6 million subscribers are the share of utilities. 24.1 million subscribers are the share of after-sale telematics and service.

Forecast of IDC: In Europe and the world

In Central and Eastern Europe

Expenses on technologies of Internet of Things in Central and Eastern Europe (CEE) at the end of 2017 will exceed $12 billion and will reach nearly $27 billion in 2021. Annual average rates of a gain of the market (CAGR) until the end of a forecast period will be 20.6%.

The largest cases of use of IoT which will attract investments in 2017 – monitoring of loads ($1.8 billion), Smart Grid technologies for electricity, gas and water ($1.2 billion) and a segment of technology transactions ($1 billion). It is predicted also that technologies of management of production assets and smart home will receive considerable investments. The specified options of use will remain the largest areas of expenses on IoT and in 2021.

According to forecasts, technologies of the smart house will experience the strong growth (CAGR of 34.4%) during the five-year forecast. The largest growth of expenses is necessary also on technology of smart networks for water (42.9%), insurance telematics (36.8%) and charging stations for electric vehicles (35.7%). In the industries, the largest investments of IoT in 2017 will be sent to transport solutions ($2.6 billion), production ($2.2 billion) and utility resources ($1.3 billion).

Investments into cross-industrial solutions into IoT will exceed $900 million in 2017. Consumer segment of IoT will become the fourth in value in 2017 (investment into $1.1 billion), but in 2021 will move to the fifth position.

In such industries as insurance (CAGR - 38.9%), cross-industry solutions (31.4%) and construction (28.1%) growth of investments is expected the highest.

Services and the equipment will become two largest profitable categories.

In expenses on the software dominance of the application software is expected. Horizontal software (the software for a wide range of users, the unspecialized software) and analytical softwares will have CAGR of 38.2% and 28.1% respectively. In a segment of the equipment and the software for security of CAGR will make 19.3% and 22.7% respectively.

"Russia will remain the leader in investments into IoT in Central and Eastern Europe throughout all forecast period. Expenses in 2021 on IoT in this country are expected at the level of $9.4 billion. The second and third position on expenses will be taken Poland ($5.8 in 2021) and the Czech Republic ($2.3 billion)", - analysts of IDC note.

Transport and production will be two leading industries for investments of IoT in all three countries. Utilities will take the second position while in Poland and the Czech Republic – cross-industry solutions in Russia. Expenses on consumer solutions will be among the leading categories in all three countries.

In the world

According to the forecast of IDC, in 2017 expenses on Internet of Things will grow by 17%, showing that customers are around the world ready to pay for implementation of these technologies. The organizations continue to invest in the equipment, software, services and communication networks, and by 2021 total expenses will reach nearly 1.4 trillion dollars[17].

Customers want to apply technologies of Internet of Things in the most different areas, but first of all in the field of production, transport transportations and utilities, IDC writes. According to the forecast, in 2017 the production area will be the main source of investments into IoT technologies (105 bln. dollars), and the second place is taken by control of transportation of loads (to 50 bln. dollars). Management of production capacities, technologies of intellectual buildings and also intelligent systems power - water - and gas supply will be other large areas of implementation of IoT in 2017.

The main scopes of IoT on a market share in 2017 (an annual expense amount in a fixed currency). Source: IDC

As for segments of this market, IDC expects that investments into the equipment will make the most most part of expenses of the organizations in the next five years; here sensors and modules of their connection to communication networks enter. Expenses on services (on transfer of content, installation and IT services) will also grow, as well as expenses on the software.

Investments into hardware of IT security will show annual average growth rate (in compound interests, CAGR) 15.1% during the period till 2021, and investments into software of security are CAGR of 16.6%, gives the forecast of IDC.

Research Cisco: nearly three quarters of IoT-projects terminate in failure

According to forecasts of IDC company, the world park of the set termination points of Internet of Things (Internet of Things, IoT) which at the end of 2016 made 14.9 billion in 2025 will exceed 82 billion. At such rates Internet of Things can soon become so irreplaceable, as well as the Internet.

However, despite a power pulse of growth, the data provided in the new research Cisco say that 60% of IoT-projects get stuck at a prototype stage, and only 26% of the companies considered the IoT-projects completely successful. Worse than that: a third of all completed projects were considered unsuccessful.

In the research Cisco conducted in the USA, Great Britain and India 1845 heads responsible for decision making in the field of IT and business took part in such industries as: manufacturing industry, local government, retail, hotel business, sports industry, power (power generating systems, oil and gas industry, mining industry), transport and health care. All respondents worked in the organizations which implemented IoT-projects or already completed their implementation. Respondents took part in implementation of general strategy or directed at least one of IoT-projects in the organizations. The research purpose was to understand success factors and to isolate the problems getting in the way of progress.

Main results

  • Importance of a human factor. At first sight, Internet of Things is purely technology history, but the huge role in it is played by such factors as culture, the organization and leadership. Rub from four main factors which defined success of IoT-projects are related to people and their interaction:
    • cooperation between IT and business divisions came out on top (54% of respondents);
    • technology focused culture of production relying on the principles of the descending leadership and support of the management was regarded as of paramount importance by 49% of respondents;
    • the experience in area of Internet of Things gained in the organization or as a result of cooperation with external partners was selected by 48% of respondents.

Besides, those organizations, whose IoT-projects were the most successful, is wider than others used advantages of ecosystem partnership. They cooperated with partners at all stages, since strategic planning and finishing with data analysis based on implementation.

Despite general understanding of importance of cooperation between the management of IT and business divisions, a number of curious disagreements was revealed:

  • heads of IT divisions consider more important technologies, an organization culture, experience and vendors;
  • heads of business divisions pay the main attention strategy, to the feasibility statement, processes and target reference points;
  • heads of IT divisions are more inclined to consider IoT-projects successful (completely successful the projects were called by 35% of heads of IT divisions whereas among heads of business divisions such there were only 15%).

  • Importance of partnership. 60% of respondents emphasized that IoT-projects often look good on paper, but are much more difficult in implementation, than it was possible to provide. Five main difficulties at all stages of implementation: deadlines, limitation of own experience, quality of data, integration of divisions and budget overrun. Our research showed that the most successful organizations at all stages attract an ecosystem of partners, i.e. close cooperation throughout all project is capable to smooth a lack of experience.
  • Use advantages. Simultaneous manifestation of critical success factors gives to the organizations the chance on a substantial scale to use analysis results of "smart" data. 73% of survey participants apply data of complete IoT-projects to improvement of the business. Entered into the first global three of advantages of Internet of Things: growth of satisfaction of customers (70%), growth of operational efficiency (67%) and growth of product quality and services (66%). Besides, growth of profitability (39%) was the main unexpected advantage.
  • Study on errors. The made attempts to implement IoT-projects yielded one more unexpected result: 64% of respondents said that the lessons learned from the clogged and unsuccessful IoT-initiatives promoted that their organizations began to increase investments into Internet of Things.

Despite problems, many participants of a research optimistically look into the future of Internet of Things which at all the rapid development remains at the initial stage of evolution so far. 61% of respondents consider that we began to investigate only those opportunities which IoT-technologies open before business.

Research and forecast of PwC

In the world the number of the "connected" devices (by estimates of industry analysts, their quantity will reach 20–50 billion units by 2020) and together with it – quantity of examples of application of Internet of Things (Internet of Things, IoT) grows in economy: power, the industry, housing and communal services, agriculture, transport, health care and [18]

Development of IoT in the world became possible thanks to four technology trends: to reduction in cost of computing powers; to data transmission reduction in cost; to fast increase in number of the "connected" devices; to development of cloud computing and Big Data. Development of IoT is not only increase in penetration of the "connected" devices, but also creation of a technology ecosystem – a set of technological solutions for collecting, transfers, the aggregations of data and the platform allowing to process data and to use them for implementation of "smart" solutions.

In foreign practice successful examples of implementation of IoT on an initiative both the state, and business are known. For example, with assistance of the state in the European Union countries, South Korea, China and India technologies of "the smart city" which allow to increase effective management of energy consumption and traffic flows are implemented. In Great Britain and the USA large-scale programs for implementation of "smart counters" for remote control of energy consumption in households are implemented.

To business IoT allows to get competitive advantage due to cost reduction and development of new sources of income. For example, the American company GE Aviation makes aircraft engines on which the sensors allowing to obtain far off data on operation are installed and on their basis to reveal optimal algorithms of service of airplanes that allowed to reduce housekeeping overheads seven times.

Other example is the Rio Tinto mining company in Australia which uses the pilotless dump trucks working continuously and managed from the operational center at distance of 1200 km. Industrial IoT-technologies are the cornerstone "of the Industry 4.0": by estimates of the German academy of science and technology, their implementation will increase performance of the German industrial enterprises by 30% on the horizon till 2025. Consumer market is filled more and more by "smart" technologies: for example, on survey results of PwC to the USA, devices with technology of the smart home every fourth consumer uses.

Researches of PwC revealed that expectations of the companies differ from implementation of IoT depending on the industry. Within the poll of heads of the largest companies of the countries ATES3 asked in what areas they expect the greatest benefits from implementation of IoT technologies in the next three years. Most of heads expect that investments into IoT will allow to reduce costs, – among the industrial companies this answer was the most popular. Heads of the companies in the field of financial services, technologies and consumer goods first of all expect improvement of customer service quality. At the same time heads of financial companies have high expectations in the field of risk reduction for the investment account in IoT. For example, it allows to develop "smart" insurance when data on driving are told to insurance company in real time that influences risks assessment and insurance rates. Most of heads of the technology companies also expect that implementation of IoT will allow to increase revenue from services.

The IoT technologies applied in the industry ("Industrial Internet of Things") allow to reduce significantly costs and to increase performance. On survey results of the largest German companies it is revealed that on expectations of the companies within five years of investment into industrial Internet technologies are able to afford to increase efficiency on average by 18% and to reduce costs for 14%. At the same time IoT allows the industrial companies to transform business models and to increase income from services (for example, from an after-sale service): the companies predict that on average these technologies will provide growth of revenue by 2.9% annually.

Forecast of Gartner

Analysts of Gartner counted that by the end of 2017 there will be 8.4 billion devices connected to Network worldwide. In comparison with last year their quantity will grow by 31%. It is supposed that by 2020 the number of IoT-devices will reach 20.4 billion pieces. At the end of 2017 the size of the market of Internet of Things in terms of money will be 1.7 trillion dollars against 1.4 trillion dollars in the 2016th.

According to the forecast of analysts, in 2017 world costs for IoT-services, including professional, consumer and communication, will reach 273 bln. dollars. It is expected that the solutions focused on the specific vertical markets, such as production of peripheral devices, process sensors for power plants and medical tools will stimulate use of IoT-systems in 2017.

Researchers predict that if in 2016 expenses on devices of category IoT made 532.5 bln. dollars, then in it they will raise up to 725.7 bln. dollars. By 2020 expenses on acquisition of IoT-devices and services of a subscription will practically double, having reached 1.5 trillion dollars.

Research Nester: The market of IoT will grow to $724.2 billion by 2023

Global market of Internet of Things reached $598.2 billion in 2015, and it is expected that by 2023 it will grow to $724.2 billion by 2023. Annual average that growth can make 13.2% during the predicted period,[19] reports[20][21].

Internet of Things includes components and devices which provide communication and information exchange. Expansion of the sector of e-commerce and attention of producers to applications and online portals for consumers – a basic reason of growth of this industry.

Nevertheless, the segment of consumer electronics made only 32% of the IoT-market in 2015. As expected, expansion of penetration of devices with remote access should influence growth of this share. The largest growth is probably necessary on the Pacific Rim that is caused by presence of large players, such as Philips, Samsung, etc. It will promote implementation of electronics, advanced and available at the price, in the near future. The region accumulated 36% of a global share of income in 2015, and by 2023, as expected, will grow on average by 10.2%.

At the same time North America, especially the USA, will save the share of revenue in 24.2%. The European market will generate more income, showing increase in a share from 12.2% to 20.2%.


Data of GSMA, Markets&Markets

The market size and growth rates on scopes of application, the forecast for 2020.

Data of McKinsey

The volume of the economic value created by IoT on the industries by 2025, $ one billion.

Juniper Research: 2016-2021: The IoT-market will show 200% growth

Juniper Research predicts that by 2021 the size of the market of Internet of Things (IoT) in numerical expression will increase three times in comparison with the 2016th. Assessment considers deliveries of products like "smart" sensors, different actuators with network connection and so forth. According to the experts, in the current year the amount of the corresponding segment in piece expression will be about 15 billion units. To the 2021st growth approximately by 200% — up to 46 billion pieces is expected.

Analysts believe that growth of the market will be promoted in many respects by reduction in cost of IoT-solutions. However development of the industry, as noted, will be integrated to a number of problems. One of them — need of complex upgrade of communication infrastructure. Experts expect that the greatest dynamics of sales growth (on average more than for 24% annually in 2016-2021) IoT-solutions will be shown by municipal and technological services.

Juniper Research notes that some service providers should conduct explanatory work among clients, convincing them of advantages of the solutions IoT. Such procedure is necessary because of absence at clients of skills and sufficient knowledge in the field of new technologies.

In a research it is also announced the threats integrated to implementation of IoT-solutions. In 2016 several large attacks to IoT-networks are recorded, and in the near future theft of personal and corporate data and even physical damage of objects of networks will become main objectives for hackers.

Especially we will wound a consumer sector of IoT before the malicious attacks. The matter is that the vendors releasing the smartwatch, lamps, robotics and other attached devices pay insufficient attention to their security. It is connected with the fact that audit of vulnerabilities requires additional costs and, respectively, affects the final cost of devices. At the same time the industrial systems are protected more — vendors do not stint investments for protection of the crucial[22].

IDC: forecast 2016-2020

According to the forecast of IDC, in 2020 the market of IoT will reach 1.7 trillion dollars. In 2015 many vendors created IoT-platforms and made considerable investments into the accompanying applications — we will remember at least the statement of IBM that she will invest 3 bln. dollars in development of the cloud services and software connected with IoT. 2016 was even more significant for IoT: vendors began to understand the positions in the market and to build strategy. Many vendors increase the investments into IoT, selecting more money for Research and Development, financing of startups and expanding ecosystems of partners.

IDC estimated world expenses on Internet of Things at the end of 2016 at $737 billion. This amount includes acquisition of the equipment, software, expenses on services, communication, etc. Global expenses on IoT are predicted for 2020 in the amount of $1.29 trillion. Annual average growth rates during the period from 2015 to 2020 are expected at the level of 15.6%.

Mobile operators at the end of 2016 will gain 11 billion euros from IoT-services, follows from the report of Berg Insight.

In a top – transport and smart homes

In 2016 the largest volumes of world investments were enclosed in Internet of Things in the field of production ($178 billion), cargo transportation ($78 billion) and power supply systems ($69 billion). According to forecasts, the fourth in value segment of the market in 2016 – consumer spendings on IV – by 2020 will become the third. Also the cross-industry implementations implementing scenarios of use of IV, identical to all industries, will increase. For example, vehicles with Internet connection and intellectual buildings will be top segments of the market throughout a five-year forecast period. The most rapid growth of investments into Internet of Things will be noticeable in the insurance industry, the sector of consumption, health care and retail trade[23].

Growth of the market of the equipment for Internet of Things will be moderate

Throughout all forecast period the main market share of Internet of Things will fall on the equipment. In spite of the fact that within five years the investment volume into the equipment will almost double, this segment of the market will show the lowest growth rates, experts believe. Spheres of the software and services in the field of IV will grow much quicker, than the equipment and communication. By 2020 equipment expenses for Internet of Things will reach $400 billion.

WILLOWS for production – the leader in investment volume into the USA

The largest financial investments will arrive from the Pacific Rim (except Japan) and also from the USA, countries of Western Europe and Japan. Nearly a third of purchasing amount of IV in the region will fall on the production area, and the industries of power supply systems and cargo transportation will trade places – by the end of a forecast period they will become the second and third largest industries of IV respectively. In North America Internet of Things for production will become the leader in investment volume for all forecast period, however the share of the general financing will be low (about 15%). By 2020 in countries of Western Europe consumer segment of Internet of Things will become the second in value, having exceeded transport and power spheres on investment volume.

Technavio: the growth rate of IoT in a telecom till 2020 will be 42%

The Technavio analytical company published the report devoted to the world market of telecommunication Internet of Things in December. So, according to forecasts of the company, the market of Internet of Things in a telecom will increase with annual average growth rate in more than 42% till 2020. The growing implementation of the intelligent transport systems (ITS) will become one of the main factors which will have a positive impact on the market. So, thanks to ITS telecom operators will begin to purchase, analyze and extend network resources. Besides, intelligent transport systems will help to improve a road situation. Investments into similar smart solutions will cause positive effect in[24].

Smart energy, smart health care, smart production, smart buildings will become the main scopes of IoT in telecommunications. It is expected that AT&T, China Mobile, Deutsche Telekom will be the leading suppliers in the market.

J’son & Partners Consulting

Estimates of global market of Internet of Things

In 2011 the quantity of the connected physical entities in the world exceeded the number of the connected people. From now on it is accepted to calculate rapid development of an era of Internet of Things.

Most the international analytical agencies foretell that the number of the connected devices in the world will reach from hundreds of millions to tens of billions by 2020, also on orders estimates on income of the market of Internet of Things differ.

Market participants give appreciation to growth of number of the connected devices in the world, and these estimates seriously differ depending on the selected methodology.

Estimates of different sources differ much. According to analysts of Gartner, the number of the connected devices will reach 21 bln pcs. in 2020 while Intel gives digit in 200 bln pcs.

Despite essential difference of estimates, it is possible to state high growth rates of the market of Internet of Things that attracts serious interest in this segment from the industrial companies, large suppliers of devices, developers of platforms and applications, the research agencies and national state bodies.

Perspectives of global market Internet of Things in an industry section

Despite differences in methodology of estimates of the different international analytical agencies, it is possible to note that applications of the new concept will be connected first of all with wide use of Internet of Things in branches of the economy.

Examples of such estimates on number of the connected devices and income by branches of the economy are given below.

So, the Ovum company predicts that the total amount of the connected devices in the world will reach about 530 mln pcs. in 2019, at the same time the greatest number of such devices will be in the field of power and housing and public utilities, on transport, in the industry, health care and trade. The continuing reduction in cost of sensors and the equipment, communication services, data processing and system integration will become the key driver of growth. According to Machina Research and Nokia company, income of global market of industrial Internet of Things will reach 484 billion euros in 2025, and transport, the industry, housing and public utilities, health care and applications for Smart home will become primary branches. At the same time the basic income is necessary on applications, analytics and services for end users. At the same time, in the world of Machina Research and Cisco estimates overall assessments of the market of Internet of Things (user and corporate) to 4.3 trillion dollars in 2025.

SAS: implementation of IoT will involve costs for specialists

On October 25, 2016 SAS Institute Inc company. shared results of the European research: before success from use [[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|of Internet of Things (IoT) comes]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]], the companies should spend for third-party specialists.

SAS polled 75 organizations defining themselves as successful "pioneers" on the way of integration of Internet of Things to the business processes. Respondents provided nine industries of the industry – from the industry to public sector, and fifteen different cases of use of Internet of Things.

Infographics of SAS, (2016)

Nearly 20% of respondents as the main advantage of the concept of IoT noted "customer relation", then there are "automatic diagnostics" (17%) and "control of assets" (16%).

In terms of result for respondents, the list of the most anticipated aspects of IoT is headed by "operational efficiency" (43%) and "expansion of the user experience" (36%).

Concerning calls which face and overcome the companies implementing Internet of Things, TOP-3 provided:

  • "need of data analysis for real time" - 22%,
  • "problems with security" - 22%
  • "management of cultural changes" of-20%.

Internet of Things erases borders between the industries. Attraction to cooperation of external consultants became confirmation to this fact - it mentioned 15% of respondents, as the productive solution at implementation of the concept. The reason - possibilities of regular data scientists are limited to a specialization framework.

Some gap between requirements and competences which are available in the companies is observed. Many managers already understood that preparation of own personnel for work with Internet of Things will demand a progressive tense, at the same time development of the concept cannot wait when employees accumulate experience and will receive the necessary qualification. Therefore at this stage for heads of the companies it is important to build correctly the long-term strategy of interaction of external and internal specialists.

Mathias Coopmans, director of business development of SAS

Verizon: Power, housing and public utilities and monitoring of housing - the main IoT drivers

In the report of Verizon State of the Market: Internet of Things 2016 [25] ("Market situation: Internet of Things of 2016") is specified that among different sectors in which from 2014 to 2015 there was a growth of network IoT-connections first place is won by power and municipal services (growth by 58%), and the second — monitoring of premises (50%). Examples of use of IoT in these sectors stretch from power networks which become intellectual, to smart measuring devices for the house[26].

Growth of IoT-connections in the sector of transport transportations and commodity deliveries from 2014 to 2015 was 49%, in agriculture — 33%, and in health care and pharmaceutics — 26%.

The factors promoting progress in IoT use will become as networks which already begin to evolve in direction 5G, and easy-to-work platforms for ensuring access to IoT-data in a stream form. Among them HomeKit of company Apple, Brillo from Google, Watson from IBM and ThingSpace from Verizon.

Platforms like above-mentioned provide safe infrastructure, can be applied everywhere and allow to see data in more digestible format through rationally organized dashboard. IoT will also lead to transition from descriptive analytics (what takes place now) to predictive (that, perhaps, will occur) and the ordering analytics (that should occur).

Ericsson: The number of IoT-devices will bypass the number of mobile phones by 2018

According to the report of Ericsson, the number of IoT-devices will bypass the number of mobile phones by 2018.

The Segment of Internet of Things (IoT) will quicker grow, than connection of other devices. It is expected that during the period from 2015 to 2021 the annual growth of IoT-connections will be 23%. From 28 billion attached devices of 16 billion will be come to the end of a forecast period on IoT-devices.

The most active growth will be shown by countries of Western Europe where the number of attached devices by 2021 will increase by 400%. The regulatory requirements concerning development of smart power networks and also the growing segment of the connected cars and parallel development of the European system of emergency calls of eCall which all machines, since 2018 should be equipped will become a main growth driver in countries of Western Europe.

By 2021 9 billion mobile subscribers, 7.7 billion mobile subscribers of a broadband network and 6.3 billion subscribers with smartphones are predicted.

The number of subscribers with smartphones will grow around the world from 2015 to 2021 with the annual average speed of gain at the level of 10.6%, and only in the Pacific Rim 1.7 billion new subscribers will appear.

Only 25% of top managers understand the strategy of implementation of industrial Internet of Things

According to a research of 2016, 81% of top managers of the industrial organizations consider that use of Internet of Things in their activity will become a key to future success. Outputs of the global survey conducted by Genpact Research Institute are like that. 173 top managers participated in a research, and at the same time it became clear that only 25% of respondents accurately understand the strategy of implementation of industrial Internet of Things. From them only 24% of heads are happy with the course of implementation of this strategy[27].

The research was conducted with the assistance of technology concern GE Digital (enters into General Electric). According to the forecast of corporation, the investment volume into industrial Internet of Things will reach $60 trillion by 2030, at the same time asset cost, connected to the Internet, will be more than $50 billion - it are the equipment, the equipment, turbines, the rolling stock, etc. Among respondents two segments were selected: "leaders" who estimate the level of use of technologies of industrial Internet of Things in the of the companies as higher in comparison with competitors; "aiming" which do not consider that they in this direction overtook "colleagues".

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The digit in $60 trillion considers the total capacity of areas in which industrial Internet of Things is involved, – aircraft, transport, power, health care, automotive industry, manufacturing, mineral extraction, oil, water, wind and also its influence on world economy.

Image:Промышленный интернет к 2030 году 02.jpg

35% of respondents counted qualification of IT employees of long strategy, insufficient for implementation, focused on implementation of industrial Internet of Things. 34% of respondents saw a potential barrier in use of legacy systems.

The question of quality of the data generated by industrial Internet of Things also became a subject of discussion. 34% of respondents told that information creates problems, but not solutions. The information security became the main criterion of concern more than a half of respondents who referred to industrial Internet of Things as a source for future cyber attacks.


Gartner: In the cities in 2015 1.1 billion IoT-devices

In the spring of 2015 of Gartner updated the forecast of the market of IoT for 2015: In 2015, by Gartner estimates, in the cities there will be 1.1 billion IoT-devices, nearly a half of them – 45% – this year is necessary on smart houses and commercial buildings. By 2020, according to the forecast of analysts, the total number of the connected things will reach 9.7 billion, and their share in residential and commercial buildings will grow to 81%. The smart cities provide to providers of technologies and services (TSP) ample opportunities for profitable business, Bettina Trats-Ryan says, the vice president of Gartner for researches, but the company should make plans already now, create and bring the offers to the market.

By the number of devices in 2015 such scopes of Internet of Things as will be in the lead:

But residents of the cities will invest in intelligent solutions the advancing rates, and in 2017 the number of the connected things will pass a billion boundary in apartment houses, having reached 1067 mln pcs. On the second place there will be commercial buildings (648 million), and housing and public utilities and transport will divide the third or fourth places (on 371 million). "The most part of investments into Internet of Things in the smart cities will come from the private sector, – Mrs. Trats-Ryan comments, – and it is good news to TSP as at the private sector the cycle of purchases is shorter, than in the public sector and at the city administrations".

LED (LED) lighting, devices for condition monitoring of health, smart locks and different sensors, such as motion sensors or content of carbon dioxide are among the popular connected things. Most in high gear from all user applications of Internet of Things intellectual LED lighting, from 6 million units in 2015 up to 570 million to the 2020th will develop. Smart houses will turn into unified information and intellectual environment, creating personal space which will provide them the help and protection for their inhabitants, experts consider.

Except apartment houses, IoT in the cities will play a noticeable role in management of parkings and traffic and also in measurement of density of traffic. Internet of Things is capable to give quickly a prize due to elimination of traffic jams, experts note. For example, in Great Britain and the State of California to the USA there is implementation on highways of the radio sensors or sensors diagnosing a road situation in real time. Other example of successful application of IoT in the city – intellectual parkings. So, Los Angeles implements the new parking meters, sensors specifying empty seats on parkings and the fully automatic system of management regulating the parking in rush hours.

In process of development of electric vehicles there will be new ecosystems and the directions for business. For example, the automobile companies can invest in creation of traffic lights with the built-in charging stations for transport, thereby reducing costs for infrastructure for charging of electric vehicles. Special sensors will specify to drivers of such machines where there are free stations for recharge, transmitting data through mobile applications or onboard management systems.

In terms of economy for the smart cities the main factor is investments in infrastructure, but for TSP providers real profit is made by services and analytics, note in Gartner. The company expects that by 2020 revenues of the companies working in the field of IoT will grow more than by 50% due to services and sale of software. The Segment of security aids for smart houses in 2017 will become the second in volume of income the market of services, Gartner predicts. The volume of a segment of smart devices for health care and fitness in 2020 will be about $38 billion.

IDC: The size of the market of Internet of Things in EMEA will exceed $50 billion

According to analysts of IDC, the segment of Internet of Things in 2015-2018 will become one of the most quickly growing directions which, besides, will be able to become the driver of growth for allied industries. According to forecasts of analysts of IDC, by 2018 the size of the market of Internet of Things only in the region of EMEA will exceed $50 billion. At the same time the number of attached devices will exceed 2 billion units.

Analysts of IDC note that the segment of Internet of Things will grow at very high rates that partly is explained by the fact that at the moment it is practically at an origin stage. In particular, it concerns Central and Eastern Europe, the Middle East and Africa – EMEA region.

In 2015 Internet of Things in the region of EMEA waits for take-off which will lead to crucial technology conversions that will allow to upgrade business processes. Such growth of Internet of Things will be able to become the driver of growth of further digital conversions, much more active, than were observed till this year. IDC expect that by 2018 the market of Internet of Things in the region of EMEA will exceed $50 billion, approximately by the same time in this territory about 2 billion self-contained units or "things", connected with each other via the Internet will be installed.

One of the directions for which IoT will become the major driver according to forecasts of IDC is the health care. In this industry thanks to development of Internet of Things digital conversion will go high rates.

Also growth of penetration of Internet of Things will allow to increase demand of cloud services in the industry, but also, increase in interaction of Vehicle-to-Vehicle (V2V) of and Vehicle-to-Infrastructure (V2I) will have an impact on development of the transport market. Telecommunication companies will actively develop the M2M direction.

According to forecasts of analysts, by 2018 expenses on IoT for omni-channel transactions will double. Retailers will develop the directions of digital offers and the personalized advertizing campaigns.

At the same time security will remain the main care of the companies working in a segment of Internet of Things and implementing IoT that will contribute to market development of solutions for security.

More than a third of the public expenditures on ensuring public security and response systems on emergencies till 2018 will fall on a segment of Internet of Things. As a result by 2020 over 35% of commercial and public monitoring systems in Central and Eastern Europe will be directly connected with the different systems of public administration. However development of "the smart cities" will remain after all not universal, but very regionally differentiated.

In 2015 the market of Internet of Things will show two-digit growth and will give an opportunity of receiving high income to all participants of this ecosystem thanks to an unprecedented opportunity to connect "things" in a context of both the enterprise, and the consumer.

According to forecasts of the research Accenture, in the period of instability of world economy the contribution IoT to world production by 2030 can be about $14.2 trillion.


Gartner: In 2015 to the Internet 4.9 billion devices, will be connected to the 2020th - 26 billion

According to Gartner company, by 2020 Internet of Things (IoT) will integrate 26 billion devices, and the income of product providers and services of the market of IoT will be 300 bln. dollars by this time.

In November, 2014 the company submitted on Gartner Symposium/ITxpo 2014 the forecast according to which in 2015 the number of the devices connected to the Internet around the world will make 4.9 billion, is 30% more, than in the 2014th, and by 2020 will reach 25 billion – on three on each inhabitant planets.

Influence of Internet of Things on economy grows as consumers, business, the city authorities, medicine, etc. find new methods of application of these technologies. By Gartner estimates, total income from the services connected with IoT will be $69.5 billion in 2015 and $263 billion – to the 2020th. What is interesting, the user applications provide growth of number of attached devices, and the most part of income is generated by the corporate sector. In a consumer sector, by Gartner estimates, in 2015 2.9 billion devices, and by 2020 – more than 13 billion will work. The highest rates of a gain of their number next year will be shown by an automobile segment – for 96%. These digits considerably disperse from forecasts of Cisco Consulting Services according to which by 2017 industrial connections will become more, than consumer, and their total quantity will reach 50 billion.

According to analysts of Gartner, in 2015 production, municipal services and transport will become three main vertical markets where technologies of Internet of Things will be applied: on these three industries in the amount 736 million attached devices is necessary. But by 2020 utilities will come out on top, production will be on the second, and the third will be occupied by the state organizations, and everything together they will use 1.7 billion "things". The share of the state will grow as administrations of the cities allocate funds for "smart" lighting of streets and residential areas for the purpose of power saving, Talli notes, and municipal services will overtake all for the investment account in smart counters.

Attached devices, such as ATMs or terminals for registration at the airports, existed earlier, but now even the most normal objects "are invented" again, purchasing digital sensors, computing and communication opportunities, experts consider. Thereby things receive "a digital vote" and capability to create and transfer information streams about own status and about the environment. It allows to offer services impossible earlier and scenarios of use of devices, developing new business models.

Apparently, in the next several years some level of the embedded intelligence and communication opportunities will become the standard for devices, analysts believe, and this standard quickly will begin to extend "down", to products and services of broad consumption.

BI Intelligence: Internet of Things will become the largest market of electronics

According to forecasts of BI Intelligence research company, by 2019 Internet of Things will become the world's largest market on number of electronic devices, having outstripped in terms of volume the markets of smartphones, personal computers, tablets, wearable gadgets and "smart" cars combined.

Economic effect of development of the IoT-sector will be expressed by $1.7 trillion. This amount will include sales program and the hardware, expenses on equipment installation and services of management. Sales of the devices representing this market will borrow in its volume only 8% (about $50 billion), and the lion share of income will be provided by producers of software and the infrastructure companies.[28]

Experts expect that from 2014 to 2019 deliveries of the devices relating to Internet of Things annually will increase on average by 61% and will reach 6.7 billion pieces by the end of the predicted period. The most part of shipments of products is necessary on public sector while now the corporate segment dominates. One more large sales market of Internet of Things will become consumer, the study says.

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The peak of growth of the market of Internet of Things is necessary for 2015

According to analysts, in process of growth of the market of Internet of Things its efficiency will increase and to be cut down expenses. As for the main problems in the IoT-industry, the staff of BI Intelligence refers lack of the uniform standards and technologies capable to adjust compatibility of different electronics to them and to simplify its use.


IDC: IoT-market volume in 2013 - $42.2 billion, the forecast for $2018-98.8 billion

It is expected that the IoT-market will grow from $42.2 billion in 2013 to $98.8 billion in 2018. Thus, the annual average growth rate (CAGR) in 5 years will be 18.6%. Use of technologies of demonstration of Digital video advertizing (Digital Signage) in large shopping centers and on streets will grow with $6.0 billion as of 2013 to $27.5 billion by 2018. In this direction the annual average growth rate (CAGR) for the five-year period will be 35.7%. Large retailers will continue intensive implementation of digital technologies for improvement of quality of interaction with the buyer.

A considerable impact on growth of the market will be had by retail, the state projects, the industry, health care and other spheres of economy. Most often IoT-technologies will begin to use in Digital Signage, medical devices for remote monitoring of parameters of health, the automated public transport, the connected vehicles (in particular, cars) and also in monitors of air traffic.

Investments into IoT in 2013 made $1.2 billion

The quantity of "smart things", for example, according to MIT Technology Review Business Report, by 2020 will exceed the number of smartphones and PC.

In world practice of investment into IoT for 2013 made about $1.2 billion, and for the first quarter 2014 - more than $868.26 million. The main investors in the world are: Intel Capital, True Ventures, Foundry Group, Doll Capital Management, First Round Capital, The Social+Capital Partners, and in Russia are TMT Investments, Leta Capital and Maxfield Capital.

Head of Cisco: In the closest 10 years of IoT will generate $14 trillion revenue

In May, 2013 the head of Cisco company John Chambers at the AllThingsD's D11 conference said that the new technology market connected with Internet of Things (Internet of Things (IoT), in the next decade will generate $14 trillion revenue. Internet of Things will become the largest component of the IT market in the next 10 years.

According to Chambers, this statement is based on the researches Cisco in the field. In May, 2013 the company also submitted the new trend report of the Internet. According to the forecasts which are contained in it, by 2017 there will be about 2.8 billion machines on the Internet, these are 30% of all devices connected to a global network around the world. In 2012 this indicator was 960 million and 17% respectively.

Growth of penetration of these devices will provoke growth of the market of the accompanying applications, services, support services and also will induce business and service providers to update their networks. Undoubtedly, decree processes will become a profit source for many technology companies, are sure of Cisco.


Cisco IBSG: By 2015 25 billion devices will be connected to the Internet

Looking in the future, Cisco IBSG predicts that by 2015 25 billion, and by 2020 - 50 billion devices will be connected to the Internet. It is important to notice that these forecasts do not consider the accelerated development of Internet technologies and devices. 1 indicators provided in the drawing are based on representations for 2010.

In our world there is nothing invariable, especially, on the Internet. Such initiatives and achievements as Cisco Planetary Skin, HP CeNSE (Central Nervous System for the Earth is Earth central nervous system) and "smart dust", can connect millions and even billions of sensors to the Internet. As cows and other animals and also plants, water pipes, people and their footwear are connected to Internet of Things, our world, perhaps, will change for the better. When one trillion sensors with all accompanying computing systems, the software and services are connected to the Internet, we will hear Earth pulse.

According to Peter Hartwell (Peter Hartwell), the senior researcher from HP laboratories, it will cause in our life profound changes well matched to revolutionary changes in the field of communications which happened at the previous stage of development of the Internet.

IMS Research: 5 billion devices are connected to the Internet, in 2020 there will be 22 billion

By estimates of analysts of IMS Research, in August, 2010 the number of the devices connected around the world to the Internet will pass for five billion, and in ten years will increase still at least four times – up to 22 billion.

Obvious source of growth is increase in number of mobile phones and other household electronic devices. The Internet is regularly contacted by about one billion personal computers and notebooks now. But the number of smartphones and other cellular devices with connection to the Internet in the world exceeded one billion and grows considerably more in high gear. According to forecasts of IMS, in ten their years there will be already 6 billion. About 2.5 billion TVs will be replaced with models with connection to network (directly or through prefixes).

However much bigger value, emphasize in IMS Research, has expansion of a scope of other devices communicating among themselves on the Internet: counters of the electric power, surveillance cameras and other sensors. Intelligent networks will manage operation of the climatic equipment and other household devices, traffic and placement on parkings.

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