Internet of Things, IoT, M2M market of Russia

2023

Market volume - 34.4 billion rubles

The volume of the Russian Internet of Things market in 2023 amounted to 34.4 billion rubles. Deputy Prime Minister Dmitry Chernyshenko cited such data on April 26, 2024 in greeting the participants of the second National Prize for their contribution to the development of the Smart City urban economy.

Internet of Things technologies and artificial intelligence are especially helping to manage urban infrastructure. Now the number of Internet of Things devices in Russia is about 60 million units, - said the Deputy Prime Minister at the end of April 2024.

The volume of the Internet of things market in Russia in 2023 reached 34.4 billion rubles

According to him, in Moscow, the use of artificial intelligence helped to triple the fixation of problems related to the state of roads. Chernyshenko also noted that the urban sector is among the leaders - more than 200 pilot settlements successfully use digital solutions and platforms.

According to the press service of the cambin, digital platforms will be created and implemented already within the framework of the new national project "Data Economics and Digital Transformation of the State." In the next few years, many promising solutions in the field of digitalization of urban economy will have to be applied in practice, the government said in a statement dated April 26, 2024.

According to analysts of [[RIR (Rosatom Infrastructure Solutions)} "RuSat Infrastructure Solutions"|the company RIR (Rosatom Infrastructure Solutions)} RuSat Infrastructure Solutions]] (RIR, part of the state corporation Rosatom), by 2023 at least 36 thousand Russian organizations used IoT technologies. About 30% of them are concentrated in the Central Federal District. On average, one company in 2022-2023 spent from 1.3 to 12 million rubles on software within the framework of the Internet of Things, according to the study. According to experts, the volume of the Russian Internet of Things by the end of 2032 will grow to 350 billion rubles^[1]

Russian telecom operators received domestic SIM cards for the Internet of Things

On December 25, 2023, it became known that the Russian manufacturer of microelectronic products "Micron" is starting serial production of domestic SIM-cards for the Internet of Things. The possibility of using products is assessed by MegaFon, MTS, VimpelCom, as well as a number of specialized companies. Read more here.

More than half of IoT projects of the national program "Digital Economy" frozen

At the end of November 2023, it became known that more than half of the projects in the field [[Internet of things Internet of Things (IoT) |]]]]] provided [[Internet of Things (IoT)|Internet of Things (IoT) for by the national program Digital economy"" are completely frozen or only partially implemented. This is stated in the report of the autonomous non-profit organization (ANO) "Digital Economy," representing the interests of business.

According to the Kommersant newspaper, we are talking about the implementation of the federal project "Information Infrastructure" as part of the Digital Economy program for 2018-2024. Its main objective is "to create a competitive, sustainable and secure high-speed data transmission infrastructure accessible to all citizens, businesses and authorities." However, difficulties arose with the development of a number of IoT initiatives.

In particular, a project has been suspended to create a separate communication system for transport infrastructure - the so-called federal transport telematics network (FSTT). It should be based on low-power, broad-coverage data transmission (LPWAN) technology and other solutions. The Ministry of Transport received the necessary frequencies in 2018-2020, and the amount of state contracts concluded under this program amounted to 1.4 billion rubles. In addition, the installation of specialized equipment on the infrastructure of roads and metro began. But from mid-2021, the costs of completing the creation of the FSTT are excluded from the federal project. It is said that the work is frozen, while the allocated frequencies as of the end of November 2023 are not used for their intended purpose.

Moreover, it is noted that it was originally planned to implement five pilot projects for the development of LPWAN networks, but all of them were subsequently abolished. Difficulties also arose with the creation of a single digital housing and communal services platform with means of monitoring and accounting for the state of property and infrastructure through IoT services. To solve the problems that have arisen, the ANO "Digital Economy" proposes to introduce mechanisms for "state and public-private support of priority technological niches." The amount of necessary funding is estimated at 40-50 billion rubles until 2030.^[2]

Russia creates a federal IoT network for 100 billion rubles

In November 2023, it became known about the work on the creation in Russia of a federal network for the transmission of data of the Internet of Things (IoT) in the 450 MHz range. The country's largest telecom operators criticized this project.

According to Kommersant, it is planned to allocate more than 100 billion rubles to create a single federal IoT network operator in 2025-2030. of which 73.35 billion rubles from the federal budget and another 34.98 billion rubles will have extra-budgetary funding. However, according to the interlocutor of the publication, the construction of an autonomous network will require more funds, and "the implementation time will multiply increase."

In November 2023, MTS, VimpelCom and MegaFon sent a letter to the Minister of Energy Nikolai Shulginov stating that 73.35 billion rubles provided for by the national project "Data Economics" "will not be enough for such a large-scale goal."

The 450 MHz range in question is occupied by Tele2 controlled by Rostelecom. Thus, the project itself to create a federal network threatens to monopolize the market and increase prices for IoT services, since in most constituent entities of the Russian Federation radio frequencies with a range of 450 MHz are allocated to one operator, the authors of the appeal warn. In this regard, they ask the Ministry of Energy to reconsider the idea of ​ ​ creating a federal network on the 450 MHz band for transmitting data from housing and communal services meters and other devices.

MTS says that by mid-November 2023, operators had already built standard networks LTE NB-IoT in the ranges from 600 MHz to 2.6 GHz, and changing the parameters would require significant investments, including budget funds, and could limit competition in this market segment. " To effectively use the networks available to operators, we are confident in MTS.^[3]

2022

The total revenue of Russian operators in the M2M/IoT market increased by 24%

The number of connected SIM-cards M2M (Machine-to-Machine )/IoT in Russia increased from 29.7 million at the end of 2021 to 35.5 million at the end of 2022, that is, by 20%. For comparison, from 2019 to 2020, the market grew in units by 21%, from 2020 to 2021 - by 25%. This means that, despite certain processes (sanctions restrictions, departure of foreign vendors, difficulties with logistics), the growth rate actually remained the same. Such data from TAdviser on March 24, 2023 was shared in IAA TelecomDaily.

According to experts, in 2021-2022. leading participants in the Russian market were M2M/IoT actively involved in the import substitution process - including launching their own production of smart devices and IoT equipment.

However, by the end of 2023, a decrease is still expected. According to experts, at the end of this year, the number of SIM-card M2M/IoT will reach 39.3 million, that is, the growth will not exceed 11%. If compared with the figures at the end of 2019, in piece terms, the market will grow by 101% and, thus, double.

In monetary terms, the alignment in the market differs slightly. During the year, from the end of 2021 to the end of 2022, the total revenue of Russian operators in the M2M/IoT market increased by 24% - from 8.8 billion rubles. up to 10.9 billion For comparison, from 2019 to 2020. growth amounted to 14%, from 2020 to 2021. - 22%. However, by the end of 2023, a slowdown is predicted. Analysts believe that revenue will reach 11.9 billion rubles, that is, it will increase by only 9%.

The key drivers of the Russian M2M/IoT market are the growing demand for new technological solutions; development of communication networks; penetration of IoT technologies into all areas of business.

Among the most promising areas, experts named monitoring and management of transport infrastructure, Smart Housing and Communal Services, city management (including the Safe City program), increasing energy efficiency, and introducing the industrial Internet of Things.

Two out of four cellular operators account for 83% of the market in pieces at once. Thus, MegaFon serves 43% of SIM card M2M/IoT, MTS - 40%, Beeline - 14%, Tele2 - 3%.

Since 2019, MegaFon and MTS have shown almost the same numbers in terms of the number of SIM cards. In 2022, MegaFon managed to break away from a competitor by 1 million units. According to experts, the same ratio will remain between networks at the end of 2023: MegaFon will retain first place.

As in the number of SIM cards, MegaFon (40%) and MTS (39%) have the most significant shares in money. In 2023, according to analysts, MegaFon will retain its first place. Beeline at the end of 2022 controlled 17% of the market, Tele2 - 4%.

If you divide the corporate market into segments, then state projects (B2G) account for 13%, the remaining 87% of SIM cards are M2M/IoT used by business (B2B). The five industries where M2M connections are most in demand include/ power(HOUSING AND PUBLIC UTILITIES 37%), (industry 16%), (transport 15%), (13 real estate %) ,/(trade 11 retail %).

For a number of industries, IoT has finally become an integral part of the digital business transformation strategy. The number of industrial scenarios for using IoT is growing rapidly, which attracts more and more customers to this sector.

Market participants note an increase in demand for vertical solutions. Customers are interested in getting a turnkey solution rather than making piecemeal purchases followed by integration.

In response to market requests, operators can act as integrators, providing, in addition to Connectivity, IoT platform services, automation of production systems, equipment monitoring, resource control, etc.

The volume of the Russian market grew by 6% to 113.9 billion rubles

In 2022, companies and government agencies spent about 113.9 billion rubles on the implementation of solutions based on Internet of Things technologies and machine-to-machine interaction (M2M and IoT), which is 6% more than a year earlier. This is evidenced by the data of the analytical agency Oneside, which were released on February 21, 2023.

According to the results of the study, the volume of connections to M2M platforms of mobile operators for the year increased by 29% - to 14.3 million connections. At the same time, MTS provided 47% of the total volume (over the year, the increase in the subscriber base was 23%), and Megafon - 30%.

Analysts also noted that over the year the Private LTE market (a dedicated wireless LTE network of the enterprise, created within one organization and isolated from public networks; it uses M2M and IoT technologies) grew by 20% - up to 1.5 billion rubles. Among publicly announced projects, the largest number of dedicated commercial LTE networks was deployed by MTS - 12 networks, or 37% of all projects on the market. Another 21% was sold by Megafon.

Among the industries in which Private LTE networks were deployed, 30% of projects fell on the mining industry, 18% - on transport, 15% - on petrochemicals, 9% in the context of all projects occupy the oil and gas sector and coal mining, 6% - power, mechanical engineering and power, the report said.

According to Oneside, in total in 2022 the number of connected IoT devices Russia exceeded 70 million. The most common scenarios for using M2M and IoT technologies in 2022 are security systems, connected cameras, video surveillances intelligent systems transport for and smart systems for metering water consumption and energy resources.

According to the report, by the end of 2022, the total number of connected IoT devices in Russia in the B2B/B2G segments increased to 55.8 million, of which 34.2 million worked in the networks of telecom operators.^[4]

By the end of 2025, a quarter of all IoT devices in the Russian Federation will be connected via eSIM

On July 5, 2022, MTS PJSC shared the results of the IoT market research and identified the trends and industries that will most actively use the Internet of Things in the next three years. According to the MTS forecast, by the end of 2025, about 25% of all IoT devices in Russia will be connected through eSIM, by the end of 2022 this share will be only 7%.

The study is based on surveys conducted by MTS specialists of key market players, manufacturers and users of platform solutions of the Internet of Things, as well as on analytical data aggregated using Big Data.

Most of the devices with eSIM will come from measurement devices ("smart meters") and connected cars. Also, the service will be in demand among manufacturers of IoT equipment: the technology will allow testing devices in production and selling in various regions of Russia without replacing SIM-cards.

In general, the global IoT market reached $158 billion in 2021, the volume of the IoT market in Russia amounted to 148.5 billion rubles, according to analysts. (the markets are evaluated taking into account data transfer services, equipment and software).

According to MTS, the average annual growth rate of the IoT market in Russia will be 12% after the recession in 2022, and the market itself may grow to 208.5 billion rubles by 2026. The key factor determining the further development of the IoT/M2M market in Russia is the macroeconomic situation, which directly affects the demand for digital solutions from consumers from various industries.

If we consider revenue by industry, then the leaders are/ power(HOUSING AND PUBLIC UTILITIES 30%), (real estate 18%) and (transport 16%). It is predicted that in 2025 these industries will also be leading: energy/housing and communal services (32%), real estate (27%), transport (12%).

The total number of smart metering devices for utilities in Russia, according to the forecast of MTS, will grow to 39 million by 2025, every second apartment will be equipped with them. As of July 2022, the total number of smart meters installed in apartments and residential buildings in Russia is 5.7 million units, more than half of them are electricity meters. More than 98% of the total number of smart meters is accounted for by individual metering devices. The new buildings market accounts for almost 75% of all newly connected resource management systems.

In addition to smart metering devices, smart speakers will demonstrate sharp growth by 2025 - from 3.5 million in 2021 to 10.5 million devices by 2025; as well as smart home devices - from 2.7 million in 2021 to 13.4 million devices by 2025.

2021

The Russian IoT/M2M market grew by 16%, to 29.6 million units

In 2021, the number of connected devices for the Internet of Things (IoT) and machine-to-machine communications (M2M) in Russia increased by 16% compared to 2020 and reached 29.6 million units. In money, the volume of this market amounted to 93.5 billion rubles, analysts at J'son & Partners Consulting calculated . Their data was released in mid-January 2022.

Russia accounted for about 1.2-1.5% of IoT/M2M equipment connections to global networks (WAN) using all types of connection technologies (cellular, wired fixed and wireless fixed, and their combinations) in the world. At the same time, the growth rate of the Russian market in 2021-2025 (CAGR - 19%) in quantitative terms is expected to lag behind the global indicator (CAGR - 22%).

According to the researchers, in 2021 there was a noticeable lag in Russia in introducing innovative approaches to network building, in particular the deployment of hybrid cloud infrastructures with end-to-end customizable SLA, necessary for industrial IoT platforms and applications. Such processes are already taking place in North America and a number of other regions, but are not yet available in Russia. These services are radically more complex than those available in the portfolio of Russian telecom operators for IoT/M2M, they require achieving a high level of automation of NMS/OSS/BSS processes and the introduction of new functionality. In this regard, operators focused on the development of the IoT/M2M direction, in order to avoid further technological lag, should actively participate in industrial pilot projects for the deployment of hybrid cloud infrastructures, the study says.

The largest segment on the Russian IoT/M2M market remains devices used in vehicles. In this segment, ERA-GLONASS, the state automated information system (GAIS) for emergency response in an accident, continues to be a significant driver of the growth in the number of connections.

Another factor in the growth of the connected vehicles market was the requirement to equip from September 1, 2021 all vehicles of categories M2 and M3 (passenger traffic), as well as vehicles of category N used for the transportation of dangerous goods, satellite navigation equipment). At the same time, the configuration of the ERA GLONASS system allows you to use it not only for transmitting navigation and other data to Rosttransnadzor, but in the interests of commercial customers, for example, for managing a fleet.

Another important driver of the IoT/M2M market in the segment of road transport is the installation of mass models of passenger cars of telematic systems directly on the conveyor by automakers, which began in 2021 and has long been expected (in contrast to the use of on-board devices, which, as a rule, are installed in dealerships).

A significant deterrent to the development of the IoT/M2M market in Russia in 2020-21 was the decline in business activity associated with COVID-19. As a result, even the most dynamic market segments, for example Fleet Management, "sank" - in 2020 the number of new connections decreased to 235 thousand (less was only in 2015-2016, after the collapse of the ruble). In addition, due to the shortage of semiconductors, sales of new passenger cars fell significantly - by 13% at the end of 2021 to less than 1.4 million, and automakers for the same reason were temporarily allowed until the end of 2021 not to install ERA-GLONASS on new cars, the study says.^[5]

The Ministry of Digital Development abandons the idea of ​ ​ mandatory registration of SIM-cards in IoT equipment

As it became known on July 8, 2021, Ministry of Digital Development of the Russian Federation decided to abandon the idea of ​ ​ registering SIM-cards installed in ATMs, electricity meters and other equipment of the Internet of Things.

According to RBC, citing a draft government decree developed by the department, legal entities and individual entrepreneurs should not enter information about their IoT devices into the Unified Identification and Authentication System (ESIA) if the agreement on the provision of communication services was concluded before June 1, 2021. Moreover, this will need to be done only at the time of the change of equipment.

The Ministry of Digital Development believes that the registration of SIM-cards of Internet of Things devices entails a "large and difficult to implement amount of work" and the risks that a large number of equipment, such as ATMs, will stop working, since their functionality directly depends on the communication services provided.

The requirement to enter into the ESIA the data of the equipment of the Internet of Things, which uses SIM-cards, is contained in the amendments to the law "On Communications," which entered into force on June 1, 2021. The initiative is aimed at combating gray SIM cards.

Despite the indulgences from the Ministry of Digital Development, the issue of registering Internet of Things devices for state customers is not completely clear, the newspaper notes. In addition, its RBC sources in two Big Four operators indicated the need to change the rules for entering information about SIM cards and devices. By July 8, 2021, only the head of the enterprise can register them, but his proxies cannot.

According to the representative of VimpelCom, the initiative of the Ministry of Digital Development excludes the risk of disconnecting devices that already operate within the technological chains of production.^[6]

The Ministry of Digital Development has granted a deferral for the registration of SIM-cards for ATMs and electric meters

On May 12, 2021, the Ministry of Digital Development of the Russian Federation announced the introduction of a 3-month transition period for registering SIM cards used in devices for remote control over them (machine to machine, M2M, meters, DVRs, video cameras, some ATMs, POS terminals, etc.).

Taking into account the proposals received during the public discussion, the draft decree of the government of the Russian Federation will provide for the opportunity for telecom operators to enter information on M2M SIM cards used in devices into the Unified Identification and Authentication System (ESIA) within three months from the date of entry into force of this document, - the press service of the Ministry of Digital Industry reports to Vedomosti.

Operators will have the corresponding opportunity by June 2021. Contracts for the provision of communication services using the functionality of the portal of public services will also be able to conclude citizens of the Russian Federation.

The department clarifies that each equipment has its own name, as well as an identifier, which, among other things, must be included in the information for more accurate identification of the subscriber's user equipment. This will avoid identification errors if all other parameters match completely. Instead of IMEI, there may be a MAC address of the equipment or another identifier, the Ministry of Digital Development said.

On March 12, 2021, Kommersant reported that mobile operators complained that they would not be able to provide communication services to already connected subscribers using M2M SIM cards from June 1, 2021. According to them, the ESIA has not yet implemented the ability to enter information about users.

MegaFon expects that by June 1, the necessary by-laws will appear for the implementation of the law, says its representative. And VimpelCom believes that they are not obliged to register M2M SIM cards connected before June 1.^[7][8]

The Ministry of Digital Development plans to transfer IoT equipment in the public sector to Russian software

At the end of March 2021, it became known about Ministry of Digital Development 's plans to introduce in Russia a requirement for the mandatory use of domestic operating systems on Internet of Things devices in regulated areas. Due to this measure, which is included in the plan developed by the department to support the IT industry, it is planned to increase the security of IoT in government agencies and sectors of the economy sensitive to cyber threats.

As Vedomosti writes with reference to this document, by September 2021 the Ministry of Digital Development intends to initiate appropriate changes in the legislative framework. In this case, only Russian IoT solutions will be allowed in the field of LCD, fire protection systems and other safety systems. Moreover, the changes may affect both equipment and software in the Russian Internet of Things market.

Initially, this measure was proposed by the leadership of the Center for Competence in Import Substitution in the field of ICT in a set of other initiatives, the press service of the Ministry of Digital Development told the newspaper.

They are important from the point of view of strengthening the security of the Russian banking sector, logistics, power, etc. - while they can support Russian developers, - believes the head of the Competence Center Ilya Massukh.

The ban on the use of IoT things with foreign software will benefit primarily manufacturers of domestic solutions, according to experts interviewed by Vedomosti. Dmitry Komissarov, head of My Office, is also inclined to this opinion. According to him, after the introduction of restrictions, domestic software and electronics developers "will be able to control most of the Russian market for IoT solutions." There should be no technical problems with the transfer of devices to Russian software, he said.^[9]

Rostec estimated the development of Russian IoT technologies at 41.6 billion rubles

As it became known on March 23, 2021, Rostec estimates the development of Russian Internet of Things technologies at 41.6 billion rubles. The state corporation's proposal to invest this amount is contained in the Roadmap for the Development of High-Tech Areas of the Internet of Things.

As Rostec told Vedomosti, the implementation of the roadmap measures is necessary to provide developers with tools to build many of their own digital solutions based on IoT technology.

Domestic developers will be able to connect to the capabilities of a wide state infrastructure, due to which the time and financial costs in the development of digital products will be significantly reduced. Thanks to this, the number of solutions being developed will multiply, the state corporation said.

Of the 41.6 billion rubles that are proposed to be allocated for the development of IoT technology, 41% of the amount will come from private co-financing of interested market participants. It is proposed to spend 15.7 billion rubles on the development of distributed register technologies, of which the share of private co-financing is about 34%.

By 2024, according to the results of the implementation of the "road maps," it is planned to increase the volume of sales of Russian developers in the field of distributed register and IoT technologies to 54.3 billion rubles billion rubles and 230.9 billion rubles, respectively. The total share of Russian companies in the world market, which will create digital products for end consumers based on IoT and distributed register technologies, will grow more than 3 times (by March 2021 - 0.06% and 1.4%, respectively). Thus, there will be a significant increase in the capitalization of companies, which will directly affect the development of the IT industry and the country's economy as a whole, Rostec said^[10]

Allocation of new frequencies for IoT in the Russian Federation

In March 2021, it became known about the allocation of additional frequencies to Russian telecommunications operators in the 301,125-305,825 MHz, 337,125-341,825 MHz, 343-344 MHz and 390-394 MHz bands for the development of the Internet of Things. Read more here.

The government wants to transfer housing and communal services to Russian IoT equipment

On March 18, 2021, it became known about the plans of the Government of the Russian Federation to introduce a mandatory requirement for the use of only Russian Internet of Things (IoT) devices for collecting data in housing and communal services, fire and environmental safety. The corresponding measure is indicated in the plan of support for the Russian IT industry, sent to Deputy Prime Minister Dmitry Chernyshenko for approval.

The press service of the Deputy Prime Minister explained to Kommersant that the measure to use domestic IoT solutions in housing and communal services, fire and other safety was proposed by the industry.

The main argument for including the proposal in the support package was the high degree of readiness of the domestic market for manufacturers of IoT solutions, a representative of the Deputy Prime Minister told the publication.

Vitaly Petrik, Director of System Architecture for RuSat Infrastructure Solutions, considers the initiative logical, given the large amount of "sensitive information" that accumulates on industrial facilities management platforms.

The requirements for the use of only Russian IT solutions for collecting data in housing and communal services can stimulate market development, believes Maxim Karulya, commercial director of Vega Absolute (according to his own data, occupies 80% of the base station market for IoT in Russia).

But the industry does not yet understand who and how will assess the level of "fatherland" of decisions, - he said.

According to him, solution manufacturers are experiencing difficulties when registering in the register of telecommunications equipment of Russian origin, which is maintained by the Ministry of Industry and Trade.

Dmitry Stapran, PwC Director for Consulting Services to Energy Industry Companies, says that it is important to prevent the monopolization of the Internet of Things market, which is developing globally precisely through competition. According to Sergei Vikharev, Director of Technology Practice at KPMG in Russia and the CIS, it is important that a wide list of solutions fall under support measures, which could be increased in the future.^[11]

2020

Total IoT spending for the year amounted to $3.93 billion

On July 29, 2021, IDC shared the results of the IDC Russia Internet-of-Things Market Forecast report, 2020-2025, according to which the total spending on the Internet of Things in business in 2020 amounted to $3.93 billion.

A difficult 2020 year forced companies to reconsider their investments in IT, which led to a reduction in Internet of Things (IoT) costs in Russia. By focusing on providing a secure remote environment for employees, customers, and partners, some companies have delayed investment in IoT technology.

The same companies that have continued the initiatives that have already begun or have been able to launch projects in an unstable working situation have gained a visible advantage in operational processes, thanks to the analysis of data from Internet of Things solutions and reducing dependence on human resources.

Despite the effects of fluctuations in IoT spending, market growth will accelerate in 2021, thanks to digital initiatives by companies from different industries. IDC expects the IoT to the country market in to grow to $8.57 billion in 2025, representing a combined annual growth rate (CAGR) in the 2021-2025 period of 16.8%.

In 2020, the leading industries in terms of Internet of Things costs were production and production, the total share of which was about 30%, followed by transport and infrastructure, including communications and utilities.

IDC estimates that customer companies spend about 40% on IT and business services. Service companies help customers develop strategies for using IoT technologies and develop business scenarios that provide profitable positions for business. Also, the growing demand for IoT data-driven analytics requires external expertise in business analytics.

In second place were investments in equipment - server capacity and devices. Hardware costs remain significant as the number of "things" that deliver data continues to rise. Companies are implementing new and expanding existing use cases by installing different devices.

In 2020, the software category accounted for the third largest share in the IoT market. Software applications reflect industry objectives, while the use of the IoT platform facilitates faster application development and deployment.

After a period of pilot projects and the transition to full-fledged implementations of IV technologies into operational reality, the attitude towards the Internet of Things has changed in organizations. Companies see EV as a means of connecting IT and operating technologies (OT), which will allow them to receive and use more data for analysis and build a digital company, "said Elena Semenovskaya, Director of Research, IDC in Russia and the CIS. - Information provided through the adoption of IoT technologies is critical to improving processes and automating decision-making. As companies digitalize, IT and OT integration becomes mandatory, contributing to the proliferation and wider acceptance of the Internet of Things.

In the Russia Internet-of-Things Market Forecast, 2020-2025 study, IDC analyzes the IoT market in Russia and gives a market forecast for 2020-2025. for individual technological segments and verticals. The report provides information on major trends in the booming IoT market as well as growth factors and inhibitors for the entire forecast period.

The report is based on the IDC Worldwide Internet of Things Spending Guide, v1, May 2021, which provides a detailed forecast of IoT spending broken down by 82 technology use cases, and an additional 20 industry scenarios, taking into account both initial and recurring costs.

The commission approved road maps for the development of the Internet of things and blockchain

On December 10, 2020, it became known that the government commission for digital development approved the road maps for the development of things and blockchain developed by Rostec in the Russian Internet of Things and Blockchain. The state corporation estimated the implementation of projects at 22.4 billion and 10.1 billion rubles, respectively, including 17.4 billion and 5.6 billion rubles of financing from extrabudgetary sources. Read more here.

The Ministry of Digital Development asked to postpone the transition to domestic telecom equipment for IoT

As it became known on October 6, 2020, Ministry of Digital Development was asked to postpone the transition to domestic telecom equipment for the Internet of Things. Market participants complain about difficulties with the inclusion in the register of telecommunications equipment of Russian origin (TORP).

According to Kommersant, the Internet of Things Association (AIV) sent a letter to the head of the Ministry of Digital Development, Communications and Mass Media Maksut Shadayev with a request to provide manufacturers of base stations operating at frequencies 864-865 MHz, 866-868 MHz and 868.7-869.2 MHz (used for IoT) for another year to obtain THORP status. The department confirmed to the publication the receipt of the document and said that they were waiting for an explanation from the AIV of the reasons for the delay.

According to the decision of the State Commission on Radio Frequencies (SCRF), the status of TORP for base stations is required from December 1, 2020 in order to use these frequencies. At the same time, the government decree, which spelled out the procedure for inclusion in the TORP register, was adopted only in July 2019.

The manufacturers had only two incomplete years to develop, test, organize the release, draw up documents for receiving THORP and the very procedure for inclusion in the register, the AIV letter says.

The situation was further complicated by the COVID-19 coronavirus pandemic: according to the authors of the letter, most manufacturers of base stations will not be able to receive THORP status on time, and then they will have to leave the market.

Market participants interviewed by Kommersant note that the procedure for inclusion in the THORP register is bureaucratic and opaque. The head of one of the companies said that teams of specialists have been preparing "huge piles of documents" for months to be included in the register and receive refusals.

The regulations are unclear, the requirements are not clearly formulated, the principle of operation of the commission approving the status also raises questions, "said Maxim Karulya, commercial director of Vega Absolute.[12]

A specialized telecom operator for the Internet of Things has earned in Russia

On March 10, 2020, Center 2M informed TAdviser about the commissioning of its communication network in accordance with Order of the Ministry of Communications and Mass Media of the Russian Federation No. 258 "On Approval of the Requirements for the Procedure for Putting Telecommunication Networks into Operation." Read more here.

Bringing a series of national IoT standards for public discussion

On January 22, 2020, it became known that the technical committee Technical Committee of Cyber-Physical Systems (TK 194)"" on the basis RVC of, together with PJSC "" and the Rostelecom All-Russian Certification Institute, with Ministry of Industry and Trade RUSSIAN FEDERATION support, submitted for public discussion the largest stories series of preliminary national standards in Russian regulatory regulation. Internet of Things More. here

65% of IoT equipment manufacturers in the Russian Federation use Russian components

The Central Research Institute "Electronics" investigated the trends in the development of Internet of Things (IoT) technologies in Russia. An expert survey showed that the majority of Russian manufacturers of equipment for the Internet of Things - about 65% - use domestic components in the manufacture of products. At the same time, the fourth part of them has a share of Russian parts in the cost of production exceeds 50%. This was reported on January 16, 2020 by Rostec.

Internet of Things solutions are widely used in various solutions for warehouse complexes, in the transport industry, security systems, the banking sector, etc. The Central Research Institute "Electronics" conducted a study "Internet of Things: the potential of Russian companies" in order to determine the current level of technology introduction at Russian enterprises, development prospects, as well as identify existing problems in the industry.

"The survey results suggest that the industry is still in the early stages of development. At the same time, the Internet of Things is an unconditional trend: in our country there are a number of IoT associations, many organizations position themselves as direct participants in the IoT industry. Manufacturers of IoT products and solutions, according to the survey, are 15% more companies than consumers of IoT products and solutions. This ratio implies a rapid increase in technologies and developments in the target segment, and also shows the vacancy of the consumer niche, " noted Alena Fomina, General Director of the Central Research Institute "Electronical

The study showed that the majority of respondents use Russian components in the production of equipment for the Internet of Things - 65%. In 25% of organizations, their share in the cost of production exceeds 50%, in another quarter of organizations - from 21% to 30%. For 17% of organizations, this share ranges from 41% to 50%, and for another 17% of respondents - from 11% to 20%. Of the foreign components, the most popular is Chinese-made products - 94% of manufacturers use it. It is followed by products from the United States (50%) and Taiwan and Germany (28% each).

As of January 2020, most organizations have already taken a number of steps aimed at introducing products and solutions for the Internet of Things at enterprises: a software part (70% of organizations) has been developed, the technical side of the issue has been worked out (70% of organizations), device specifications have been developed (65% of organizations) and hardware (60% of organizations), prototypes are being tested (55% of organizations). Some companies are at the stage of creating prototypes (45%) and conducting certification tests (30%). Thanks to IoT solutions, 25% of respondents expand the possibilities of mass production and industrial design, and only 5% are at the stage of developing communication technologies.

The study "Internet of Things: the potential of Russian companies" was conducted by experts from the Central Research Institute "Electronics" together with the ANO "Digital Economy" and the journal "Electronics: NTB." The survey was attended by about 30 respondents representing various sectors of the economy (information technology, telecommunications, industry, etc.). Manufacturers of IoT products and solutions made up the vast majority - 58% of respondents. Consumers of IoT products (38%), as well as those who only plan to become a manufacturer or consumer (19% and 8%, respectively), follow. Representatives of the electronic industry and organizations consisting of associations dedicated to the Internet of Things were invited to participate in the survey.

2019

The Internet of Things market in Russia reached 64 billion rubles. J’son & Partners Consulting

J'son & Partners Consulting has completed the preparation of a study of the Russian market for intermachine communications (M2M) and the Internet of Things (IoT). The estimated market volume in 2019 reached 64 billion rubles. The number of IoT/M2M devices connected to WAN amounted to slightly less than 23 million, an increase of 21% compared to 2018. According to the forecast of J'son & Partners Consulting, the number of connected devices in 2025 will grow to 56 million, while in monetary (ruble) terms the market will grow to 86 billion rubles. (CAGR 5%). The main driver of market growth will be services of cloud IIoT platforms, the dynamics of consumption growth of which will determine the dynamics of the market as a whole. At the same time, the consumption of proprietary hardware and software systems for processing machine data will be reduced in both relative and absolute terms. The presented forecast includes an inertial scenario in which the existing obstacles to the development of ecosystems of IIoT platforms in Russia will not be overcome in the period 2020-2025^[13]

The forecast of the dynamics of the total number of IoT/M2M devices in Russia is made on the basis of an analysis of the actual corporate and state programs currently being implemented in this area, as well as by analyzing the prospects for the development of mass segments of the IoT/M2M market.

The forecast of the dynamics of connected objects is based on expert analysis of the penetration level - the share of objects connected to cloud platforms from the total number of corresponding types of objects. An expert assessment of the penetration level, in turn, is based on an analysis of the correspondence of the cost of connecting and using the functions of cloud platforms from one side, and the economic effect of using them from another. With a significant excess of the effect over costs, a rapid increase in penetration is predicted, with a slight increase in penetration - slow, with an excess of costs over the effect - no increase in penetration.

An estimate of the total volume and cost structure for on-premium systems IoT/M2M made based on the TCO structure of distributed telemetry systems for each of the applications considered in the report.

When estimating hardware costs:

• in the cost of devices IoT/M2M only the cost of communication modules was taken into account,
• the cost of hardware and software on-premise complexes, for example, situation centers, took into account only the part of them that is directly intended for collecting, storing and processing telemetry data from IoT/M2M devices.

The market of distributed telemetry systems, also called the market of intermachine communication systems (M2M), as well as the market of Internet of Things (IoT) systems has been developing in Russia for more than 15 years (in Fig. 1 shows the actual figures for the last 5 years - 2015-2019), and its individual segments, for example, the console security services market, have existed for more than 40 years. As a result, a significant installed base of connected devices was formed, which in 2019 amounted to 22.5 million telemetry devices connected to WAN using all types of connection technologies: cellular, wired fixed and wireless fixed, and their combinations.

It should be noted, however, that this is almost 10 times lower than the well-known estimates of the number of M2M devices connected to WAN in Russia, in particular those indicated in the Cisco VNI^[14] 194 million M2M devices in 2017.

In the industry structure of the distributed telemetry system market, there is an extremely low share of IoT applications for monitoring and managing industrial equipment and engineering systems of buildings and structures, that is, those facilities whose optimization gives the greatest economic effect, against the background of the predominance of technical security systems (video surveillance, automatic detection of violations, remote security), connected infrastructure for making payments and transport monitoring systems. The reason for this market structure in terms of application IoT/M2M that the main drivers in the growth of the number of installed and connected IoT/M2M devices in Russia were and remain mandatory government programs, among which there are no programs for the digitalization of industry.

Key Drivers and Restraints

An analysis of the actual quantitative data on the Russian IoT/M2M market shows that despite state initiatives aimed at introducing IoT tools to control the economic and even personal lives of citizens, for all its scale, these initiatives cannot replace the economic drivers of IoT implementation to increase the efficiency of enterprises of various sizes, including micro-enterprises, and households.

The prolonged stagnation of final consumption, which has turned into a pronounced decline since the second quarter of 2020, contributes to the fact that both commercial consumers and households are becoming interested in the possibility of increasing the efficiency of resource use through IoT solutions and services. That is, be interested in the savings opportunities without compromising the quality of life that IoT provides. Thus, the key potential driver of the growth of the IoT/M2M systems market in Russia, aimed at improving the efficiency of economic relations, is the request of consumers of such systems to implement scenarios for monitoring distributed objects, which imply intensive and complex processing of data received from objects, more economical (based on a telemetered device), flexible and functional methods than the use of specialized software and hardware systems that prevails at present.

From a technical point of view, the main deterrent to the direction of the development of the distributed telemetry market, currently formed mainly by proprietary closed systems, towards open cloud IoT ecosystems, is the technical and organizational unwillingness of large users of distributed telemetry systems to switch to a fundamentally new concept based on the use of cloud IoT platforms as a replacement for proprietary highly specialized hardware and software complexes. In addition, a significant barrier is the presence of legislative restrictions on the use of open cloud IoT platforms for processing data collected from connected telemetry devices. Nevertheless, these restrictions can be successfully overcome in the coming years.

One of the significant restraining factors in the development of M2M/IoT networks in Russia is the high cost of end devices for the consumer (transport telematics, smart meters, etc.), which in some cases tends to increase even though the cost of the communication modules used in them is steadily decreasing. Thus, the purchase price of the 2G, NB-IoT, LoraWAN and Sigfox communication modules decreased to $3-6 (depending on the batch), while the cost of conventional and "smart" devices varies significantly. For example, connected water meters cost from almost 3000 rubles. per unit (in November 2017 - 1000 rubles), ordinary - from 350 rubles. The high cost of smart devices seems to be due to unreasonably high prices from manufacturers due to their desire for the simplest way to monetize by selling devices, as well as complex and expensive certification and installation procedures.

In this regard, the connection of objects in a number of segments ("smart" meters of housing and communal services, insurance telematics, etc.) becomes economically inappropriate and can be implemented only by administrative, and not by market methods. Examples of such projects are control of heavy vehicles (Platon), the upcoming replacement of ordinary housing and communal services meters with smart ones, etc.

Moreover, in cases where the economic effect is much higher than the cost of connecting, the distribution of connected devices is relatively high. Such segments include, for example, fleet management (excluding SME transport companies) and mobile employees, video surveillance, etc. Also developing are those segments of the M2M/IoT in which the cost of the communication module is insignificant compared to the price of the end device, and the connection itself is necessary to provide service (ATMs and connected cash registers).

Forecast for the period 2020-2025

According to J'son & Partners Consulting forecasts, the total volume of the IoT/M2M market in Russia in monetary terms will increase from 64 billion rubles. in 2019 to 86 billion rubles. in 2025, its structure will change significantly. In particular, the share of revenue from data services will decrease, and the share of cloud services provided on the basis of IoT platforms will more than double. The growth in the consumption of cloud services will lead to a twofold reduction in the share of system integration services and proprietary hardware and software systems. The increase in the consumption of cloud services will contribute to an increase in the number of connected devices, which will lead to an increase in the cost of communication modules in the overall structure of IoT/M2M costs by almost one and a half times.

Total number of M2M/IoT devices connected to wide area networks (WAN) using wired and wireless technologies in Russia, will grow from 23 million in 2019 to 56 million in 2025. The market for vehicle monitoring systems and road infrastructure in 2025 will remain the largest market in Russia, related to the IoT/M2M by the number of connected devices and one of the largest in terms of size in monetary terms.

In the segment "Distributed video surveillance systems and photo/video recording of events," the most promising services are cloud storage and video data processing, the consumption of which in 2025 will amount to 13.7 billion rubles. Proprietary video surveillance hardware and software complexes in the commercial sector will be replaced by cloud services. In the public sector, hardware and software complexes (agro-industrial complex "Safe City" and others) will continue in the coming years, even despite the significantly worse price/functionality ratio than cloud platforms.

The promise of the segment of connected IoT/M2M devices used for payments and bank transactions lies not so much in the growth of the number of connected devices as in the possibility of creating analytical IoT services with high business value.

The Smart Home systems and services market, which is currently in its infancy, has significant potential in Russia. There is a large amount of unmet demand for such systems, since a significant part of housing in Russia falls on individual housing, where the Smart Home systems, unlike apartment buildings, can be quite effective, and the decision on their use is made by the homeowners themselves, and not by the management company.

The trigger that translates sweating demand into real demand is the emergence of cloud monitoring and optimization management services for engineering equipment of buildings that can work with already installed controllers of security fire and engineering systems.

In 2018-2019. the first examples of the use of cloud IIoT platforms and applications for processing data from connected machines and other types of industrial equipment appeared in Russia. These data are mainly used by global manufacturers of industrial equipment installed in Russia to fulfill their obligations to Russian customers for technical support and life cycle contracts. It is expected that in 2025 the volume of consumption of IIoT platform services will increase many times, as well as the number of machines and industrial equipment connected to cloud IIoT platforms.

Cloud IoT platforms and services are the technological foundation of digital agriculture. The proven economic effect of such systems is tens of percent of the increase in yield, reduction in losses and unit costs. However, the volume of consumption of cloud IoT applications and services for agriculture in Russia in monetary terms is currently extremely insignificant. In 2020-2025 consumption of cloud IoT applications and services in agriculture will grow at a high rate of 44% CAGR, but in absolute terms will remain insignificant. The reasons are the presence of powerful deterrents, among which there is a clear lack of high-quality agronomic data on Russia accumulated over a long historical period, a small number of means of mechanization in rural farms, a practical lack of means of automation of production processes, information closure of rural farms, the limited presence of global application providers in Russia and the lack of ecosystems of Russian developers around such platforms. An additional problem is the extremely limited financial capabilities of Russian agricultural producers.

In general, it can be noted that in 2015-2019. the foundation was laid (in terms of government programs and initiatives) for the further development of the IoT/M2M market. The state has a significant impact on the Russian market IoT/M2M as a large customer, an approver of new products and technologies, and as a market regulator that forms a regulatory framework that stimulates the development of the market and the investment activity of its participants. Market prospects in the segment of state customers are more determined by state initiatives in the implementation of programs and digitalization projects. At the same time, some of the projects are at the level of declarations, pilot projects that have not received further development.

Among the most promising areas are:

• ensuring safety;
• monitoring and management of transport infrastructure and vehicles (projects ERA-GLONASS"," Plato Tolling system for vehicles weighing more than 12 tons"," requirements for equipping vehicles with tachographs; requirement to control transit transportation of sanctioned goods, control of perishable goods transportation);
• improving efficiency of territory management and energy efficiency;
• introduction of the procedure for the use of cash registers;
• the requirement to create a system of reliable measurements and accounting for the consumption of energy resources and a number of other regulatory initiatives.

The Russian Internet of Things market grew by 8.3% in dollars. IDC

• Services: task/use case setting, data collection and analysis, system integration, security, etc. The share of services is actually higher, taking into account internal departments.
• Equipment: additional sensors and sensors. Most projects come from installing equipment.
• Software: data analytics and cognitive solutions, IV platforms, security. The ability to deploy solutions to your existing infrastructure.

Process production

• Metallurgical and petrochemical holdings (MMK, Severstal, Norilsk Nickel, NLMK, Eurochem, Sibur, etc.) are introducing IW as part of digital transformation projects.
• The main scenarios: control of the main processes, predictive repairs, personnel safety (smart helmets and vests, energy efficiency management, monitoring the state of production assets. Oil and gas companies (Gazpromneft, Rosneft) - digitization of the drilling and well development process.
• Implementation partners - SAP, IBM, Accenture, Baker Hughes, internal IT departments and innovative divisions. Solutions from already familiar suppliers.
• Projects - individual developments, a high degree of customization. Complex mathematical models, partially using AI (digital assistants).
• Connection: use of internal networks, cellular communications, deployment of private LTE, LPWAN.
• EV implementation projects are considered a competitive advantage, often under NDA.
• Restraining factors: security, integration and scalability, time-consuming development of an implementation scenario with the involvement of production experts.

Source: Russia Internet-of-Things Market 2019-2023 Forecast

Discrete production

• Market development is driven by industrial players Siemens, Schneider Electric, PTC, GE.
• Strong position among local players (Figure, Tibbo Systems)
• The introduction of IV is closely related to the development of a digital twin model. Roscosmos, Russian Helicopters, KamAZ.
• Main scenarios: monitoring of production facilities, predictive repairs, energy efficiency analysis, autonomous operations.
• There are tasks to obtain data and install sensors on legacy equipment, without replacing it.
• Restraining factors: low initial degree of automation, low budgets, defense enterprises (import substitution), outdated equipment, security.
• Growing interest in using computer vision (process and discrete) to control operational processes. For example, the creation of unmanned dump trucks. Second in demand after safety systems.
• Industry 4.0 is still far away.

Retail

• Dynamic segment - implementations of FC in internal and external systems.
• Improved user experience: omnichannel, personalization of offers, dynamic marketing offers (using geolocation and purchase history).
• Using computer vision to fill shelves, monitor queues, analyze customer emotions, etc.
• Electronic price tags and dynamic pricing - high cost.
• Internal processes: energy efficiency management (smart buildings), supply chain optimization (RFID), product storage monitoring.
• The expansion of the mandatory labeling system does not yet affect the IV market positively.
• Implementation leaders: X5, M.Video, Lenta.

Infrastructure (power and telecom)

• The unifying factor is distributed infrastructure.
• RossetiFGC UES, Rosatom, Inter RAO - digitalization initiatives and focus on local suppliers (for example, modular controllers at substations - protection, accounting and substation control systems).
• National Energy Program to 2030.
• Common scenarios: remote monitoring of objects, intelligent accounting and control of energy consumption/" Smart networks, "smart devices of water, gas, electricity.
• Restraining factors: outdated equipment, strict regulatory framework and regulation, a disparate market in the field of smart meters, lack of data transmission standards.
• Telecom: monitoring of base stations and network conditions. The main thing is the service and solution providers themselves.

• > 2021 - industrial platforms, implemented scenarios with 5G, Edge computing and cognitive technologies.
• 2020 - more industrial scenarios, IV part of the digitalization strategy, attention to data & advanced analytics using AI. Experience with Edge & 5G;
• 2019 - slowdown in growth, close attention to the importance of IOU for business, rapid return on investment, the task of scalability of started projects. "Edge" does not yet affect, but will support investment in the equipment market in the next 5 years.

MTS launched a unified protocol for the Internet of Things

In December 2019, MTS launched a unified protocol for the Internet of Things (IoT) using SCEF (Service Capabilities Exposure Function) equipment from Oracle. The system integration project was carried out by NVision Group (part of the MTS group). Read more here.

The IoT market in Russia grew by 9%. Internet of Things Association

On December 6, 2019, it became known that the director of the Internet of Things Association Andrei Kolesnikov announced the figures for the IoT market in Russia at the end of 2019. According to him, in general, the IoT market grew by 9%, although the association's forecast was 14-15%.

We made forecasts, focusing on the availability of technology. And they must be done on the basis of the economic situation. The low growth is due to problems not with technology, but in general with the economy. Ahead, as always, transport and logistics - 12% of growth - is quite confident. Transport, logistics, labeling (CRPT, Honest Sign) and traceability are doing well. Power, housing and communal services, municipal services are slowly going on - IoT is being introduced there, but not quickly, because it is a difficult, viscous environment for doing business. With creaking - extractive industry and recycling. We hoped that the industrial internet of things - take it, do it - no, everything is slowly coming. The cycle of sales, the introduction of a simple product there - from eight months. Medicine and retail do not go at all . In medicine, from the point of view of legislative regulation, a lot is being done. This is correct, but from the point of view of the available applications, for the doctor to follow us - this is not yet. Retail has built all the logistics, it works great as a clock - delivery, warehouses. And from a point of view in the store - there is nothing there, " told by Andrey Kolesniko

As he stressed, IoT is an ecosystem with many participants.

First of all, IoT is just a tool for treating pain that occurs in industrialists and in other industries. Vendors supply components for the treatment of this pain. Then there are IoT platforms. I know and can name only two good domestic platforms - Notibo and Raitek. The rest are either imported, or I don't know about any. Next comes the operator and the most important player - the integrator. Most serious IoT projects in Russia and the world are made by an integrator. The operator is just part of the ecosystem. Nevertheless, there is potential, summed up Andrey[15]

The Russian Internet of Things market is disappointing with growth. AC&M-Consulting

The growth of the Russian Internet of Things market in 2019 was not as rapid as previously expected. This is evidenced by the data of the consulting company AC & M-Consulting, which were released on November 13.

Analysts expect that by the end of 2019, the Russian Federation will use 19.5 million SIM cards in IoT equipment. Previously, an indicator of 23.5 million units was predicted, then it was revised to 20 million.

According to experts, the dynamics of market growth in 2015-2018 made it possible to count on an increase in the number of SIM-cards by 25-30% in 2019, and the revenue of operators - by 20-25%.

In November, AC & M-Consulting began to expect an average annual market growth of 12.5%, as well as a 15% increase in the number of wireless IoT devices in the networks of MegaFon operators "" MTS and, which are leading in the market.

The researchers attribute the deterioration of the forecast to financial problems among the main consumers of equipment for the Internet of Things - representatives of small and medium-sized businesses. In addition, there is a lack of ideas and applications on the Internet of Things, say AC & M-Consulting.

Director of the Internet of Things Association Andrei Kolesnikov generally agrees with the figures of AC & M-Consulting and admitted that the Russian IoT market may grow even slower - by 10%.

Kolesnikov connects unjustified forecasts with the economy - the b2b segment does not have enough funds. To increase business efficiency, you first need to incur costs, now not every company can do it, he explained.

According to Mikhail Alekseev, managing partner of AC & M-Consulting, MTS and MegaFon built networks specifically for the Internet of Things, and also significantly expanded the range of solutions that can be used in industrial projects. However, it turned out that the devices themselves are not enough to load the built networks,^[16] added^[17]

Financial support for 5G and the Internet of Things cut four times

On November 7, 2019, it became known that the Ministry of Telecom and Mass Communications published the final version of the roadmap "Wireless Communication Technologies." The document was prepared by the "daughter" of the state corporation "Rostec" "National Center for Informatization" (NCI) as part of the activities of the federal project "Digital Technologies" of the national program "Digital Economy of Russia." Read more here.

Russia is the world leader in the development of the Internet of Things

For 2019, very large projects are working in the field of Internet things in Russia: these are online cash desks, and transport and logistics solutions, such as ERA-GLONASS GAIS. Solutions in the field of telemedicine and "smart cities" are gradually being mastered, and the introduction of digital tracking of goods is actively underway in industry and retail - using labeling codes, it will glue together all other IoT projects.

According to PwC, by 2025 the Internet of Things will bring a cumulative effect of 2.8 trillion rubles to the Russian economy.

The concept of "Internet of Things" appeared in 1999, Kevin Ashton applied it then just to labeling. This is essentially creating a digital twin of each subject and moving information about it in the form of digital algorithms between smart devices.

The Honest Sign system has been created in Russia. It makes it possible, using RFID tags or two-dimensional (Data Matrix) identifiers, to track the movement of all goods along the entire chain to the person who will eventually buy the goods. If all is well, Russia will be one of the first in the world to move to digital market management. By 2024, this system should cover almost everything, but is already a guide for neighboring countries.

Agreement of Rostec and the Government of the Russian Federation on intentions to jointly develop four high-tech areas

On July 10, 2019, Rostec State Corporation, in the presence of President RFVladimir Putin, signed agreements of intent with the Government of the Russian Federation on the joint development of four high-tech areas - distributed registry technologies, quantum sensors, the latest generations of narrowband wireless communications for the Internet of Things and short and medium range communications, as well as the latest generations of mobile wireless communications (5G) (together with Rostelecom). Read more here.

RVC has developed draft fundamental standards in the field of the Internet of Things

On June 24, 2019, the Technical Committee "Cyber ​ ​ Physical Systems" under Rosstandart presented for public discussion draft preliminary national standards (PNST) in the field of the Internet of Things and the industrial Internet of Things. The initiator of the development of documents was RVC. Read more here.

The authorities will allocate 28 billion rubles to create equipment and software in Russia for 5G networks and IoT

On April 26, 2019, it became known that the Ministry of Industry and Trade developed a draft target program "Development of industrial production of fifth-generation networks and the Internet of Things in the Russian Federation for 2019-2024." As part of this program, it is planned to allocate about 28 billion rubles, 16 billion rubles from the federal budget and about 12 billion rubles from extrabudgetary sources to create equipment and software in Russia for 5G networks and the Internet of Things (IoT). Read more here.

The Ministry of Communications approved the concept for the construction of narrowband wireless communication networks IoT

On April 5, 2019, it became known that the Ministry of Digital Development of the Russian Federation approved the concept for the construction of narrow-band wireless communication networks of the Internet of Things in the Russian Federation. The concept was developed within the framework of the "Information Infrastructure" direction of the national program "Digital Economy of the Russian Federation." The concept was developed by order of the Ministry of Telecom and Mass Communications of Spectrum Management LLC. Read more here.

Approval of the preliminary national standard of the Internet of Things NB-Fi

Federal Agency for Technical Regulation and Metrology (Rosstandart), on the proposal of the Technical Committee 194 "Cyber ​ ​ Physical Systems," created on the basis, RVC approved the preliminary national standard "Wireless Data Transmission Protocol Based on Narrowband Radio Signal Modulation (NB-Fi)." The document will be put into effect from April TAdviser 2019, the RVC reported on February 5, 2019. More. here

2018

J'son & Partners Consulting: IoT/M2M market volume in Russia - 60 billion rubles

On August 17, 2019, J'son & Partners Consulting (Jason & Partners Consulting) presented the results of the study "Russian market for intermachine communications and the Internet of Things at the end of 2018, forecast until 2022."

The estimated market size in 2018 amounted to 60 billion. rubles The number of WAN M2M IoT devices connected/reached 23 million units, an increase of 21% compared to 2017 (traditionally, the study takes into account all types of connection technologies: cellular, wired fixed and wireless fixed). The relatively low market volume in monetary terms is determined by the almost complete absence (with the exception of the segment) video surveillances of complex processing in - data cloudy IIoT platforms, which in the global market forms the basis for the formation of value added IoT projects. Against this background, there is an extremely high proportion of costs for data transfer services from connected devices (connectivity), the amount of consumption of which is determined mainly by the size of the installed database of connected devices and the amount of payment for communication services per device.

In the industry structure of the distributed telemetry system market, there is an extremely low share of industrial IoT applications against the background of the predominance of technical security systems (video surveillance, means of automatic recording of violations, remote security), connected infrastructure for making payments and transport monitoring systems. The reason for this market structure in terms of IoT/M2M application is in the main drivers of growth in the number of installed and connected IoT/M2M devices in Russia. They were and remain binding state programs, among which there are no programs for the digitalization of industry.

Thus, in 2010-2013, the main drivers of the market were: the installation of monitoring systems for freight and passenger vehicles, programs for equipping housing and communal services with meters for the consumption of resources (electricity, heat, water, gas), as well as the development of geographically distributed video surveillance systems. The only large segment of the IoT/M2M that formed during this period under the influence of market factors was the segment of cash registers (POS terminals) and payment terminals connected to payment systems.

The high growth dynamics of connected IoT/M2M devices in 2015-2018. identified such legislative innovations as the introduction of the Platon system, the connection of cash registers to the platforms of fiscal data operators (OFD), the rapid spread of automatic recording systems, as well as the further expansion of video surveillance systems and the development of IoT/M2M programs in housing and communal services.

According to the forecast of J'son & Partners Consulting, the number of connected devices in 2022 will grow to 42 million, but at the same time in monetary (ruble) terms the market will stagnate, increasing by only 4% annually (up to 69 billion rubles in 2022). The reason is the lack of industrial applications of IoT, and, as a result, the low level of value added created by IoT/M2M systems, limited mainly to monitoring functions. This means the impossibility of monetizing investments in the development of modern communication technologies, primarily in the 5G network.

The segments "Connected cars and road infrastructure" ("Transport"), "smart" meters, video surveillance cameras and connected means of making payments will remain the most capacious. The market structure will change significantly. In particular, the share of revenue from data services will significantly decrease, and the share of cloud services provided on the basis of IoT platforms will increase sharply. The share of system integration and technical support services will also increase. In terms of applications, the market for monitoring systems for vehicles and road infrastructure in 2022 will remain the largest segment in Russia in terms of the number of connected IoT/M2M devices, and one of the largest in terms of size in monetary terms. Against this background, the industrial IoT in Russia will remain in its infancy.

IDC: IoT market size in Russia - 3.67 billion

On December 21, 2018, IDC announced on the release of two documents related to the dynamically developing Internet of Things market in Russia: the updated version of IDC Russia Semiannual Internet of Things Spending Guide and the annual report Russia Internet-of-Things Market 2018-2022 Forecast based on it.

The IDC Russia Semiannual Internet of Things Spending Guide is part of the Worldwide Semiannual Internet of Things Spending Guide and as of December 2018 includes 82 scenarios for the use Internet of things technologies and quantitative analysis of the stack of technologies necessary to implement these scenarios. In the annual report of Russia Internet of Things Market 2018-2022 Forecast IDC presents the current state of the Internet of Things market in Russia and its development forecast. In 2018, the volume of the Russian Internet of Things market, according to IDC, amounted to 3.67 billion. Between dollars USA 2018 and 2022 inclusive, investments in equipment, software services, and communication attracted to build IoT solutions will grow by an average of 18% annually. At the end of 2022, spending on Internet of Things end-users in Russia will amount to $7.61 billion.

IDC sees the main factors influencing the development of the Internet of Things market in Russia as strategic initiatives of companies to build digital enterprises, as well as solving such problems as integrating IT with operating activities, optimizing business processes and increasing their efficiency, and increasing competition within industries. Government projects to digitalize the economy and individual sectors, for example, the transport industry, have an important impact.

Manufacturing and transportation remain leading industries in IoT investment. Process and discrete manufacturing companies choose IoT technologies to monitor production processes, such as product quality control and energy optimization, as well as monitor production assets. Industry's increasingly popular IoT scenarios include employee safety and environmental solutions. The use of the Internet of Things in the transport industry will continue to grow due to the digitalization of the industry as a whole, the application of best practices that industry leaders are introducing today. The third most invested segment of private users contributes to the development of the market through the growing use of smart devices by the population, the spread of smart homes and private transport security solutions.

Investments in IT services and equipment account for about 70% of the total market as a result of the use of own developments in major projects and the growth of the number of data transfer devices . However, IDC sees growing interest in applying analytical software solutions to extract valuable information from data from smart devices.

author '= Elena Semenovskaya, Director of Research at IDC in Russia ' The business benefits of IoT projects serve as a good foundation for further expansion and adoption of IoT technologies. End-user companies have learned to collect, process and store data from smart devices. They face the next important step - extracting value from this data and applying artificial intelligence to it. As the IoT market evolves and matures, IDC is seeing increasing interest in commercial IoT platforms to manage and analyze data and support applications that use this data. The Russia Internet of Things Market 2018-2022 Forecast report is based on a study by Worldwide Semiannual Internet of Things Spending Guide, which gives a detailed forecast of spending on the Internet of Things, broken down by 14 technological areas, 82 use cases, 20 industries, 8 regions and 53 countries. This study is intended for participants in the Internet of Things market who want to determine the prospects for its development.

IoT Market Estimates - TAdviser Survey

Estimates of the volume of the Russian Internet of Things (IoT) market are quite different. Domestic experts interviewed by TAdviser - representatives of IT companies performing projects in the field of IoT, announce market indicators in the range from 40 to 600 billion rubles at the end of 2017. At the same time, the share of the industrial Internet of Things is estimated by them in the range from 20 to 95%. This run-up can be explained by the blurred market boundaries and the lack of a single list of technologies that can be attributed to the Internet of Things.

Dmitry Evdokimov, CEO of HeadPoint, believes that the fair assessment of the IoT market in Russia is 40-50 billion rubles.

Taking into account the activity of our clients and the initiatives of the Russian Government in the field of digitalization, market growth will be estimated, in my opinion, in two-digit numbers - within 30-40%, he notes.

At the same time, he calls the share of the industrial Internet of Things significant.

We have been using technologies related to automation of production for a long time and using proprietary hardware and software complexes. As a rule, these are solutions of enterprise scale, and this is not enough for the development of IIoT. We need to move towards using standardized protocols, developing communications for M2M and creating cloud services, "he says.

Aleksandr Grebennik, CEO of RUTI Inventas, believes that the IIoT segment accounts for the lion's share of the Russian Internet of Things market.

Of course, with the development of IoT services, for example, consumer orientation, the share of the industrial Internet of things against the background of general growth will gradually decline. But in the next couple of years, we do not expect a significant redistribution of weight coefficients, "he says.

Alexander Yaroshevich, CEO of EuroMobile estimates the volume of the Russian Internet of Things market in 2017 at 100-110 billion rubles. According to him, the market grew by 20%, and Industrial IoT accounted for 20-30%.

Ilya Knyazev, General Director of PSS (Applan Group of Companies), says that according to various estimates, the market volume is more than 200 billion rubles, and the dynamics is 15-20% at the end of 2017. At the same time, he adds that "in our view, these numbers are somewhat downplayed."

In 2018, there are all the prerequisites that the dynamics will increase, we expect the market to grow by 30-35%, he notes.

The flagship of the IoT market, according to him, is the industrial Internet of things.

The main demand, main investments and the main benefit from using IoT are concentrated here. Getting some tangible financial result from using smart kettles is quite problematic. And the modernization and expansion of the capabilities of existing PCS through IoT brings a very specific and easily calculated economic effect. For example, only by creating an IoT-based asset management system for a large geographically distributed enterprise is it possible to reduce the cost of ownership of equipment by up to 60%, says Ilya Knyazev.

Vyacheslav Maksimov, Director of Industrial Solutions of the CROC, cites an estimate according to which, at the end of 2017, the cost of the Internet of Things in Central and Eastern Europe reached $9.7 billion.

Of these, a third falls on Russia ($3.23 billion). In the future, 2-3 years, stable growth is expected by 20% on average annually, he notes.

The share of industrial developments, according to Vyacheslav Maksimov, occupies about 60% of the IoT market in Russia. Moreover, such solutions are most in demand in industry, production and the transport industry, he said.

Victor Polyakov, CEO of Tibbo Systems, estimates the full market size (devices, platforms, services, projects) at $5-10 billion. At the same time, the dynamics, according to him, are slightly worse than the global average. "CAGR in the Russian Federation is estimated at 15-20% against the world level of 20-30%," he said.

Victor Polyakov estimates the domestic industrial Internet of Things market at 85-95% of the IoT market. And this share, in his opinion, will gradually fall.

Ilya Appolonov, head of the IoT group at ICL Services, believes that in 2017 the IoT market in Russia almost doubled.

We also expect continued growth in 2018 by 50-70% compared to 2017. The commercial consumer begins to understand and accept the advantages that this technology provides and the demand for such decisions from large and medium-sized enterprises is growing very quickly (primarily retail, logistics, industrial production), he explains.

The industrial Internet of Things segment was originally the main driver of IoT technology growth and remains so to this day, continues the ICL Services representative.

This is primarily due to the fact that the industry sees and understands the value of IoT solutions, and in this segment the most positive ROI indicator. When the customer knows that he will be able to recoup the investment in 6-12 months, in some industries even faster, he is ready to develop the most advanced technologies. Thus, the share of the IIoT segment in absolute indicators is very large, about 70% -80% in Russia. The potential for its growth is limited, but other segments can show growth (for example, smart healthcare, smart logistics, etc.), respectively, the share of IIoT will soften a little, - Ilya Appolonov predicts.

Andrei Shuravin, head of the IoT department for work with industrial enterprises of Technoserv, believes that 2016-2017 can be described as the years of IoT formation in Russia, and first of all, this technology captured not industrial production, but housing and communal services, and agriculture, he says. Moreover, agriculture is even more so, since solutions of the Internet of Things allow, for example, to reduce losses when storing crops by more than 30%.

During this period, solutions on this technology in the field of oil production and refining also began to be actively applied. The Internet of Things market in industrial production has just begun its formation as a more modern alternative to PCS systems: new promising developments have appeared, to which industrialists have been actively eyeing. The main inhibitory factor, first of all, was the lack of a potential consumer understanding the benefits of using IoT solutions, not the readiness of legislation, as well as the lack of a cheap safe and reliable global data network that ensures the "independent" interaction of IoT devices, - said Andrey Shuravin.

Recall that according to a TAdviser study conducted jointly with Rostec Group of Companies, the volume of the Russian industrial Internet of Things market in 2017 is 93 billion rubles. and according to forecasts will grow to 270 billion rubles. by 2020.

RVC presented a draft of the first national standard for the "Internet of Things"

The document was developed within the framework of the Technical Committee 194 "Technical Committee of Cyber-Physical Systems (TC 194)" on the basis of RVC with the participation of the IIDF, the Association of Internet of Things Market Participants and Telematic Solutions LLC.

The standard is based on a completely Russian technology, harmonized with international counterparts, which allows you to create wireless data exchange networks between many modems on the one hand and many base stations on the other hand. Read more here.

IDC forecast: the Russian market will grow to $4 billion in 2018

On January 24, 2018, the analytical company International Data Corporation (IDC) published some results of a study of the Internet of Things (IoT) market in Central and Eastern Europe. Russia is the largest market in the region, accounting for approximately a third of IoT hardware, software and services spending.

According to experts, at the end of 2017, the cost of the Internet of Things in Central and Eastern Europe reached $9.7 billion. In 2018, it is expected to grow by 15.5% to $11.2 billion, of which almost $4 billion of investments will fall on the Russian market. The top three markets will also include Poland ($2.6 billion) and the Czech Republic ($1 billion).

The largest costs associated with the Internet of Things in all three countries are in the manufacturing and transport sectors. The second place in Russia is occupied by an intersectoral complex, and other largest areas include home IoT projects.

IoT has been around for quite some time, but a recent surge of interest has led to an impressive drop in sensor prices and widespread networking. We are going to make everything smart and connected to the network, "says IDC CEMA analyst Milan Kalal. - IoT can help companies compete more effectively, innovate and generate additional revenue every day.

Analysts call equipment the largest segment of the Internet of Things market in Central and Eastern Europe. Its sales in 2018 will reach $4 billion thanks to the spending of organizations on modules, sensors, infrastructure and security. The second largest categories will be services, the third - software. At the same time, the implementation of software in the IoT sector will increase the fastest - by 21.7% in the period from 2018 to 2021.^[18]

2017

J'son & Partners Consulting: market volume - more than 60 billion rubles.

According to J'son & Partners Consulting (Jason & Partners Consulting), at the end of 2017, the volume of the Russian market for services and solutions of machine-to-machine communications (M2M) and the Internet of Things (IoT) exceeded 60 billion rubles. By the end of 2022, its volume is expected to reach almost 90 billion rubles, and the structure will undergo significant changes. Thus, the share of data transmission services and proprietary hardware and software systems will decrease from more than 70% (as of the end of 2017) to just over 40%, and the share of cloud services will grow almost five times.

Distributed Telemetry Systems Market

The market for distributed telemetry systems, also called the market for intermachine communication systems (M2M), as well as the market for Internet of Things (IoT) systems, has been developing in Russia for more than 15 years, and its individual segments, for example, the console security services market, have existed for more than 40 years. As a result, a significant installed base of connected devices was formed, which in 2016 amounted to 15.9 million telemetry devices connected to WAN using all types of connection technologies: cellular, wired fixed and wireless fixed, their combinations.

Due to the moderate growth rates of the number of connected devices characteristic of the Russian market of M2M systems, on the one hand, and the significance of the size of the installed base of devices IoT/M2M relative to the absolute value of its annual growth, on the other hand, the share of communication services in the volume of consumption of IoT/M2M solutions in Russia is extremely large - exceeds 50%.

Another reason for such a high share of communication services is the underdevelopment of services and cloud platforms IoT/M2M and, as a result, the small amount of added value of IoT/M2M solutions formed on such platforms. This distinguishes the Russian market from the world market and testifies to the underdevelopment of the market for solutions and services IoT/M2M in Russia precisely in terms of value-added processing of data received from telemetry devices, specified in J'son & Partners Consulting.

Another reason for the high share of communication services in the overall IoT/M2M cost structure is that data services, especially in cellular networks, are still relatively expensive for M2M applications. For example, the cost of 1 GB of traffic in M2M cellular tariffs in Russia is an average of 1,500 rubles, which is almost 20 times more expensive than the cost of 1 GB of traffic in ordinary tariffs for smartphones of private users (75 rubles). For comparison, in the world, the ARPU for M2M-connectivity services is currently 1.5-2.0 dollars/month, which is comparable to the Russian ARPU M2M-connectivity indicators (90 rubles/month), while the ARPU of Russian cellular communications is significantly lower than the ARPU of the world market of developed countries (4-7 times), which indicates the potential for a multiple reduction in ARPU on M2M connections.

The established structure of WAN connections in Russia, where connection through technologically outdated cellular networks prevails, in combination with the almost complete absence in Russia of operator-class IoT networks specialized for the requirements of IoT devices (LPWAN, NB-IoT, Wi-Fi 802.11ah, etc.) is a significant obstacle to the economically feasible use of monitoring modes that require a high frequency of data updates from devices outside the availability zone of wired communication networks and/or the use of a large number of simple devices IoT/M2M with an extremely low cost of connecting the device. And this, in turn, limits the models of monetization of data from devices IoT/M2M the simplest cases with a low level of value added, concluded in J'son & Partners Consulting.

Transformation into the IoT services market

As of the end of 2017, the Russian market for distributed telemetry systems, in fact, is not an IoT market, since it is formed mainly by proprietary hardware-dependent solutions with extremely limited functionality; in fact, these are telemetric M2H solutions (distributed dispatch control systems), indicated in J'son & Partners Consulting. This market is formed by demand mainly from large projects of government organizations and corporations, the impetus for the implementation of which is legislative coercion, not economic motives.

However, both commercial consumers and households are beginning to be interested in the possibility of increasing resource efficiency through IoT solutions and services. But this request can only be met by switching from proprietary solutions to public services that are really based on the principles of IoT. This, in turn, requires the formation of ecosystems of solution developers, component vendors (both hardware and software) and business consumers themselves.

Thus, the key driver of the growth of the IoT/M2M systems market in Russia is the request of consumers of such systems to implement scenarios for monitoring distributed objects, which imply intensive processing of data received from objects using more economical and flexible methods than using specialized hardware and software systems. An analysis of the development of the global IoT/M2M systems market shows that the implementation of such data processing methods is possible due to the transition to the use of IoT/M2M cloud platforms, which implement both the basic functionality of managing devices and connections, and the developed functionality of processing telemetry data.

In general, the market growth is implied not only due to the increase in the number of connected devices, that is, an increase in the scale of use of IoT/M2M systems in Russia, how much due to their qualitative development, consisting in substituting for cloud IoT services inefficient in terms of price/functionality ratio of proprietary hardware and software complexes, for example, in distributed video surveillance systems, and the formation of new cloud service markets in those applications of IoT/M2M where complex telemetry data processing is not yet carried out at all (for example, in systems for managing engineering systems of buildings and structures, the so-called "Smart Home").

Forecast to 2022

According to the forecast of J'son & Partners Consulting, the IoT/M2M market in Russia will demonstrate steady growth, and, despite the crisis in the economy, in 2022 it will reach the level of 43 million connected devices and the annual cost of creating and operating distributed systems IoT/M2M 90 billion rubles.

Due to the high "starting" level of connectivity prices, even with the expected growth in the volume of transmitted data per device by 2022 by more than 10 times and an increase in the number of devices by more than 2 times, the revenue from connectivity in 2022 will practically not change compared to 2016.

According to analysts, cloud services will be the fastest growing segment of the market in question. They will both replace proprietary hardware and software complexes, for example, in video surveillance systems, and create new markets, such as cloud analytics for Smart Home systems and cloud data analytics from connected cash registers. Moreover, the direction of cloud services can develop even faster, since it does not require the installation of specialized devices designed only for a specific hardware and software complex of telemetry devices, and can rely on the existing database of already installed devices with a network connection: installed controllers of engineering and security systems, video cameras and other connected devices.

From a technical point of view, the main deterrent to the development of the market for distributed telemetry systems, formed mainly by proprietary closed systems, towards open cloud IoT ecosystems is the technical and organizational unwillingness of developers of solutions and systems of distributed telemetry to switch to a concept based on the use of cloud IoT platforms as a replacement for proprietary highly specialized hardware and software complexes.

In addition, a significant limitation is the presence of legislative restrictions on the use of open cloud IoT platforms for processing data collected from connected telemetry devices.

Nevertheless, these restrictions can be overcome in the coming years, according to J'son & Partners Consulting.

IDC: $4bn

According to the new annual report Russia Internet of Things Market 2017-2021^[19], presented by the company IDC as part of a global study, investments in equipment, ON services and, communication attracted to create solutions Internet of things in, Russia will grow by an average of 22% annually.

In the latest forecast, IDC analysts note that already in 2021, the cost of the Internet of things in Russia will exceed $9 billion. This is almost three times more than the Russian market demonstrated in 2016, when, according to IDC, its volume amounted to $3.48 billion. We add on our own that, based on this value, with a 22 percent increase in 2017, it may reach $4.25 billion^[20].

The level reached last year is slightly lower than previously predicted, they say in IDC. This is mainly due to the strengthening of the ruble, as well as a number of other restraining factors that influenced the developing market.

Growth drivers and braking points

In 2016, IDC supplemented the list of scenarios using Internet of Things technologies, which are the basis for assessing the market size and its capabilities. At the time of this report, IDC has taken into account 53 typical solutions that can improve customer performance and gain a competitive advantage in the market. New typical scenarios include: urban infrastructure management, automation of the airport, taking into account the flow of passengers, "smart" distribution and water consumption, etc.

Among the main factors contributing to the growth of investments in the Internet of Things market in Russia, IDC analysts highlight the process of digital transformation of companies, the creation of an ecosystem and mutual partnership of solution providers, as well as significant interest from the state.

The development of the Russian market was also influenced by the positive results of the first projects aimed mainly at collecting data and integrating IoT solutions with existing IT systems.

Transport and manufacturing remain the leading industries for investment in the Internet of Things due to the large number of installed end devices and the demand for solutions for vehicle management, transport monitoring and production asset management, the IDC notes.

The combined telecommunications and energy sector was the third most invested in the Internet of Things in 2016, which allowed the three described segments of the economy to occupy more than half of the market. Increasing operational efficiency and optimizing costs are important factors in making decisions about IoT technology investments in these industries.

The public sector and consumer segment, according to IDC, showed stable dynamics, supported by the growth in the number of initiatives to create "smart cities" and the dissemination of solutions to ensure housing safety among the population.

Retail trade agriculture and were among the active consumers of Internet of Things solutions in 2016, however, in monetary terms, investments on their part were insignificant.

Without reference to industries, investments in IT services and equipment had the maximum impact on the development of the Internet of Things in Russia, they accounted for more than 60% of the entire market. These figures reflect a significant number of own developments when creating IoT solutions.

Nevertheless, in the forecast period, investments in software will grow by 24%, that is, faster than the market as a whole - as projects use commercial IoT platforms more often.

Avast: every fifth IoT device in Russia is vulnerable

Avast Anti-Virus on September 21, 2017 published the results of its latest study of intelligent devices in Russia, according to which 23.7% of IoT devices are vulnerable to cyber attacks, including webcams and video videos. Two out of five devices are vulnerable from a security perspective and can be hacked by attackers to spy on users and their children. Moreover, 26.9% of printers are also unsafe. However, routers are considered the most vulnerable - Avast found that 69.2% of these devices in Russia are most at risk of cyber attacks.

With routers, cybercriminals can access other devices connected to the network, such as webcams, smart TVs and smart kitchen equipment. Thus, any vulnerable device can be used to infect other devices, attach them to a botnet, monitor their operation and even harm their owner. We are talking about "smart" kitchen equipment and other household appliances that cybercriminals can control remotely. Also, manufacturers of smart devices collect and store personal data of users, for example, behavioral information, contacts and credit card data, which in the event of a cyber attack creates an additional risk for users.

Since in Russia 41% of webcams and video phones are vulnerable from a security point of view, it is easy for cybercriminals to access them and subsequently monitor the privacy of people and even conduct video broadcasting on the Internet, according to Avast.

For everyone, including cybercriminals, it will not be difficult to check the Internet IP address and IP ports of users and determine which device is on a specific IP address. In addition, if you use minimal efforts and use certain know-how, hackers can find out the type of device (webcam, printer, smart kettle, refrigerator, etc.), its brand, model and version of the software on which it works. They can then compare the findings with public lists of vulnerable devices to see which one is unprotected.

In order to protect connected devices from unwanted attacks, Avast advises users to regularly update PC software and use complex and strong passwords.

iKS-Consulting: By 2020, the volume of the Enterprise IoT market will increase to 30 billion rubles

At the end of August 2017, the international service provider Orange Business Services, together with iKS-Consulting, presented the results of ^[21]., Dedicated to the current state and forecasts of the development of the Enterprise market of the Internet of Things (IoT) for the period up to 2020 in six sectors of the Russian economy with the greatest technological readiness to implement IoT solutions: transport, financial, agricultural, retail, construction (smart buildings) and in industry.^[22]

According to the study, the total volume of this market in Russia is currently 20.813 billion rubles, in the future it is expected to increase to 30 billion by 2020 with a CAGR of about 12% per year.

Current position in the Enterprise IoT market in Russia

Despite moderate growth rates and still modest volumes, 2017 will be an important stage in the formation of favorable prerequisites for the development of the Russian IoT market in subsequent years. Its distinctive feature was numerous test tests, pilot projects and experimental platforms, as well as the strategic installation of the state on the digitalization and transformation of the Russian economy.

At the moment, the transport industry is leading by a wide margin in terms of the volume of the Enterprise market of the Internet of Things among Russian industries - 13.1 billion rubles, which is largely still formed by motor transport telematics systems (they make up about 44% of the current number of all M2M connections).

The smallest market for IoT solutions in agriculture is only 0.1 billion rubles. The introduction of advanced technologies and solutions for automating processes, mechanisms and production chains is mainly possible for large agro-industrial enterprises.

Moderate interest in IoT solutions is observed in industry, the smart building industry and the financial sector: 3.6 billion, 2.1 billion and 1.16 billion rubles, respectively. In the retail sector, the volume is 0.7 billion rubles.

Comparing current IoT implementation costs among total IT costs across industries, researchers note that representatives of the transport industry invest most intensively in these technologies - 16%, in the smart building industry, the share of expenses for IoT solutions is 4%, in industry - 2.5%, in agriculture - 2%, in retail - 1.6%, a closes a number of financial areas with 1% of IoT spending in the overall IT spending structure.

According to analysts, traditional automation systems in leading industries are used on average by about a third of enterprises. Among such systems can be distinguished CRM-, ERP- and SCM- systems, as well as automatic control systems. Solutions M2M that appeared in anticipation of the transition to things also stand out to the Internet separately.

Growth prospects and factors influencing the development of the IoT Enterprise Market

In the future, until 2020, the largest increase in the number of IoT solutions is expected by analysts in retail. As of August 2017, there are 1.4 million connected IoT devices in this industry, by 2020 their number should grow to 4 million units. The main driver of the growth in the number of IoT solutions will be not only the widespread use of CRM and SCM systems (implemented in 23% and 12% of industry companies, respectively). An additional factor in the growth will be high competition, stimulating the introduction of technologies such as tracking goods using radio frequency tagsRFID, monitoring the movement of buyers with mobile devices based on technologies for tracking the movement of buyers on the sales floor and facial recognition systems.

The transport industry, which is leading in terms of market volume (according to data for the summer of 2017), will demonstrate significant, but not so rapid growth - an increase from 2.3 to 3.2 million connections is predicted, excluding the state projects Platon and ERA-GLONASS. The main driver of development here will be the active use of M2M systems and the growing popularity of container transport monitoring systems using geolocation and RFID radio frequency tags.

The transport industry, which in recent years has been the main driver of M2M solutions in Russia, is experiencing a new upsurge in interest, now in IoT solutions. Firstly, if earlier information from a "connected car" was provided only to one side, now most of the connected objects are monitored by two or more parties (lessors, municipalities, insurers). Secondly, the available data have learned to qualitatively process in a new way and, based on this, for example, predict possible breakdowns. Thirdly, within the transport industry, IoT services go beyond road transport. All this, on the one hand, reduces the cost of a unit of the service provided, on the other hand, expands the list of services provided, the number of their consumers and increases the size of the market, - said Sergei Ezyk, General Director, "Center 2M 2M."

In turn, in the financial sector, where a rather modest interest in the Internet of Things is recorded - 0.34 million connections, researchers do not see the prerequisites for a significant increase in the number of this indicator. It is assumed that in 2020 their number will remain approximately at the same level.

Factors that contribute to and hinder the implementation of IoT solutions

The industry is characterized by such negative factors as outdated standardization requirements, as well as the moral obsolescence of production assets, which impedes the ability to develop Internet of Things solutions on their basis. At the same time, the driver of the development of the Internet of Things should be a high level of automation of production processes, the presence of modern information systems for enterprise management. Thus, ERP solutions were implemented at every third chemical industry enterprise (33%), and process automation solutions (APCS) were implemented at almost half of chemical and metallurgical enterprises - 49.8 and 48.1%, respectively. An equally important factor in growth is competition in certain industries with foreign companies actively implementing solutions of the Industry 4.0 concept. Another incentive should be increased attention to labor protection and the environment, where solutions using wearable devices are increasingly used.

In agriculture, the main obstacle is the low level of informatization of the industry. At the same time, a significant incentive for the development of IoT here should be the growing interest in the digitalization of the industry by the state, including from the point of view of import substitution of agricultural products.

In general, according to experts, the difficulties in the economy and the lack of sufficient funds prevent businesses from investing in long-term high-tech projects and serve as a common inhibitory factor for the implementation of IoT solutions. On the other hand, many organizations understand that IoT projects help improve operational efficiency.

So far, the Russian Internet of Things market is relatively small, but we see in it the potential for growth. We actively interact with organizations from almost all sectors of the economy and see that many of them are changing their attitude towards IoT solutions. They began to understand that these technologies can save money not only in words, but also in deeds. In conditions when economic forecasts remain restrained, this may become one of the factors in the growth of the competitiveness of Russian business, - said Andrei Kolesnikov, director of the Internet of Things Association.

Internet of Things solutions help transform the business, increasing the competitiveness of the organization and optimizing costs. Our study shows that, despite the low level of penetration of IoT solutions in large Russian companies and difficult economic conditions, some large players understand the benefits of implementation and are ready to invest in them, "added Richard van Wageningen, Senior Vice President for IMEAR Region, Orange Business Services.

Key IoT Market Players and Connectivity Standards

The main players in the Internet of Things market in Russia are platform and software manufacturers, as well as system integrators; experts estimate their total share at almost 80% of the market. The rest of the market is divided between telecom operators and manufacturers of sensors and devices.

Among the communication standards used in the Internet of Things market, the leader is traditional 2G/3G/4G standards - at the end of 2017, about 13.8 million connections are expected, while by 2020 their number is predicted to grow by 63%. The communication technology LPWAN at the end of 2017 will account for about 300 thousand connections. This relatively small volume is associated with the need to deploy a specialized infrastructure. At the same time, it is expected that by 2020 the number of connections according to the LPWAN standard will grow by more than 10 times. The NB-IoT communication standard can be deployed on the existing mobile network infrastructure with its minor modernization, and therefore experts expect high interest in this standard from mobile operators - 1.9 million connections in 2020. However, the main growth is expected after 2020, which is due to the need to implement an investment program in network development.

We see a positive qualitative shift in the development of the IoT market in Russia: from information excitement, evangelism and inflated expectations, the Russian market has moved to a more "mundane" phase of its development - pilot implementations, technology testing, replication of completed industry solutions. Strategic goals have been set. Difficult work begins on the implementation of road maps, - concluded Tatyana Tolmacheva, founder of iKS-Consulting.

PwC study

PwC presented in the summer of 2017 a study in the field of the Internet of Things (IoT) in Russia. The report on the results of the study examines the economic effect, incentives and barriers to the development of the Internet of Things in Russia.

The focus is on six areas:, power industry, and health care agriculture animal husbandry, transportation and storage of goods, ",". "smart citysmart home

The use of IoT technologies in Russia is associated with a number of features and restrictions related to the economic, technological, legislative, geographical and cultural specifics of the country. In the consumer market, the deterrent is the low level of income of the population, in the market of commercial companies - the duration of the decision-making process on the introduction of new technologies, the short planning horizon of companies, the complexity of changing internal processes, regulations, document management and approaches to obtaining and processing information, the complexity of integrating IoT technologies into the existing IT environment.

It is important to consider the multiplicative impact that IoT technologies will have on sectors of the economy by increasing productivity and reducing costs. Achieving this effect depends on the consistency of the approach to the implementation of IoT in Russia. An important role in this process should be played by the state, which has various tools at its disposal: improving the regulatory framework, developing IoT support mechanisms, creating conditions for the development of personnel potential, and promoting Russian experience abroad. In the case of a thoughtful and systematic approach, IoT may become one of the factors in the growth of the Russian economy in the long term.

Some results of the study:

• The introduction of IoT in the electric power industry will help significantly improve the efficiency of the industry and the reliability of its infrastructure, as well as reduce the costs of both electricity producers and its consumers. The economic effect of the introduction of IoT in the electric power industry until 2025, according to our estimates, will amount to about 532 billion rubles.

• The application of IoT in healthcare allows for a new level of disease diagnosis, treatment accuracy, and patient health tracking with micro- and nanosensors and other "smart devices." The economic effect of the introduction of IoT technologies in the healthcare sector is estimated at 536 billion rubles until 2025.

• IoT technologies in agriculture will increase labor productivity and competitiveness of the industry, taking into account the growth in demand for agricultural products. Smart farms and greenhouses will increase yields (through the use of seeds, agrochemicals, fertilizers and water "as needed" and their more efficient use), improve product quality, reduce fuel consumption for agricultural machinery and water on farmland, and reduce crop losses during storage and transportation. The minimum economic effect of the introduction of IoT in agriculture may reach 469 billion rubles by 2025.

• In logistics, the introduction of IoT technologies allows you to solve such industry-relevant tasks as reducing the cost of freight transportation and travel delays, increasing the transparency of transportation (including using RFID tags) and minimizing the impact of the human factor. Vehicles connected to the Internet and remote monitoring of the fleet will reduce operating costs by optimizing the repair and maintenance of equipment. In addition, the "uberization" of cargo transportation is widely distributed, which makes it possible to refuse the services of forwarding companies. The economic effect of the introduction of IoT in logistics is estimated at 542 billion rubles until 2025.

• The use of IoT technologies in the urban environment makes it possible to fundamentally improve the city's economy, improve the standard of living and safety of the population through more efficient management of transport, housing and communal services and urban infrastructure. The economic effect of the introduction of IoT in the urban environment in the period 2018-2025. may reach 375 billion rubles.

• Devices from the "smart home" system are quite popular with consumers now, since they can improve the safety of the home and reduce housing and communal services costs with the help of "smart meters" of water, and soon - and electricity. The economic effect of the introduction of smart homes devices for the period until 2025 will amount to about 387 billion rubles.

In Russia, there are some examples of the introduction of IoT, mainly in the field of electric power and transport. In the electric power industry, the Internet of Things can lead to significant changes by transforming the traditional electromechanical energy system into ^[23]

IoT Application Markets

IoT technologies have a number of features and restrictions of application in Russia related to the economic, technological, legislative, geographical and cultural specifics of the country.

Three markets for the use of IoT technologies can be distinguished: the mass market (B2C), the market for commercial companies (B2B), the market for government agencies and state-owned companies (B2G): on each of them there are restrictions and possibilities for the use of IoT technologies inherent in our country. The mass market (B2C) is traditionally receptive to new innovative technologies and products based on these technologies. Private consumers often make purchases based on momentary momentum or under the influence of trends, they are ready to save several months to buy the latest version, smartphone tablet or other digital gadget (especially in Russia: for example, the market share iPhone smartphones in Russia continues to grow and accounts for more than 10% of sales in physical terms). But this picture is significantly worsened by the low average level of income of the population (for example, the average wage in the Russian Federation is 75% lower than in the countries of the European Union) 8, which is gradually decreasing. In this situation, the average consumer prefers to spend money on basic services that cannot be abandoned (food, transport, housing, communications), and postpone purchases of advanced goods or services for a later time.

Most likely, products based on "cloud" IoT solutions, such as monitoring public transport, monitoring the load of public infrastructure (roads, metro, etc.), etc. will be in demand in the mass segment in the medium term. Such products will be monetized by selling related services (for example, ordering a taxi), advertising, gaining access to large amounts of user data. Of course, solutions focused on niche consumers will additionally develop, for example, such as "smart car insurance," "smart home," life monitoring, telemedicine.

The market for commercial companies (B2B) is more inert than the market for private consumers, since companies require time to analyze the external environment, understand the need for new technologies, coordinate investments and implement projects. Often such a process can take several years. At the same time, there are a number of specific factors in Russia that complicate decision-making in favor of IoT. For example, the lack of a return on investment on the horizon of 2-3 years is likely to lead to a negative decision - no one will invest in technology that does not pay off in the short term, since top management wants to show shareholders a quick return and result today, and not on the horizon of five or more years.

Additional restrictions are imposed in terms of the complexity of changing internal processes, regulations, document flow, approaches to obtaining and processing information. Traditionally, in Russia, companies from the real sector are cautious about changing processes, especially if new processes should integrate operational information online. On the one hand, the presence of such information is a blessing, but, on the other hand, it immediately imposes requirements for more prompt management decision-making. (for example, if the delivery of goods by rail is delayed, it is necessary to quickly decide whether to organize alternative delivery by other modes of transport or accept the situation of the absence of goods in the warehouse) and to the transition to a new level of interaction between the company's divisions within the framework of new processes. Many companies are not yet ready to increase flexibility, because this requires a cultural transformation of managers, staff, partners and contractors.

The state manages colossal infrastructure: roads, housing and communal services facilities, buildings and structures, electric and thermal networks, etc. The market of government agencies and state-owned companies (B2G) perhaps has the maximum economic potential for the introduction of IoT technologies in terms of improving energy efficiency and reducing the cost of servicing production assets, but at the same time this market is the most inert. The main reason is often already worn out infrastructure, requiring significant costs for renovation, repairs and maintenance.

In the context of sequestration of investment budgets and restrictions on the growth of tariffs for services provided (for example, in 2014, tariffs of natural monopolies were frozen, including for railway transportation, oil transportation, utilities), many companies remain within the framework of traditional technologies. There is no talk of implementing IoT, since financing of new technological solutions is carried out on a residual basis.

NBFI - Russian standard Internet of Things

Members of the Internet of Things Association, created at the initiative of the Internet Initiatives Development Fund, chose the Russian standard Internet of Things. This was announced in July 2017 by the director of the IIDF Kirill Varlamov.

"An

application has been submitted to Rosstandart. This is a new narrowband communication protocol. Its name is NBFI. The key task here is to create a market, ensure the compatibility of devices from various manufacturers, open the market to Russian microelectronics manufacturers, as well as foreign manufacturers, "he

said.

The Narrow Band Fidelity (NB-FI) standard allows IoT devices to exchange data at a distance of up to 10 km when the device is running for up to 10 years without recharging. The cost of the base station will be about 100 thousand rubles, the radio module for devices - 800 rubles. To operate the standard, AIV intends to use an 868 MHz frequency, which is not occupied by other technologies and does not require permissions to work.

There are more than 300 solutions at the level of protocols and "things" technologies Internet. According to K. Varlamov, they either solve extremely narrow problems and are not suitable for scaling, are vulnerable to cyber attacks and weakly protected, or are incompatible with other generally accepted protocols. The selected standard is the most advanced in terms of the cheapness of the devices that work on it, as well as in terms of the energy efficiency of working devices.

The plans of the Internet of Things Association are to bring this standard to the international level.

In addition, the Association agreed to expand the frequencies of the "Internet of Things" with the Ministry of Defense, the FSO and the FSB.

J'son & Partners Consulting on the Impact of the Internet of Things on Agriculture

According to experts, IoT solutions and digitalization agriculture in will bring a total economic effect of 4.8 trillion rubles per year, or 5.6% of the increase. GDP Russia At the same time, the volume of consumption information technology can grow by 22%, and due to the digitalization of only one industry - agriculture.

J'son & Partners Consulting considers a promising model of direct sales, in which agricultural producers "see" the end consumer, its volume and structure of demand, and through the use of predictive analytics create exactly what the consumer needs and when. At the same time, product supply management is carried out on the principles of automatic exchange of information between participants in the supply chain and minimal use of the warehouse and logistics infrastructure of wholesale intermediaries.

This can be achieved with the help of Internet of Things technologies and end-to-end automation of production and business processes, as a result of which, according to analysts, it will be possible to reduce the price of basic food products by half while improving their quality.

In addition, the implementation of such a model of relationships in the agricultural value chain will help to radically increase the level of automation of the main production and business processes of rural farms, including small ones, which will increase the consumption of information technologies by agricultural enterprises by 156 billion rubles and data transfer services by 11 billion rubles a year.

Finally, the transition to end-to-end highly automated chains of production and supply of agricultural products will make this process transparent to banks, and will allow them to minimize the risks of lending to agricultural producers. This will create prerequisites for increasing the volume of lending to agricultural producers by 500 billion rubles, the study says.

IoT Ecosystem Member Companies

Technological solutions of Russian manufacturers in the field of IoT

Smart transport

• Autotracker - JSC Russian Navigation Technologies"" - System of satellite monitoring of trucks, transport cars and other mobile facilities
• Scout System - Scout Group of Companies - Truck Satellite Monitoring System, which allows you to control fuel consumption and reduce the number of road accidents
• Self-driving truck - OJSC - In KAMAZ 2016, commissioning at the company's sites. KAMAZ In 2017, it is expected to launch pilot samples on public roads in the Republic of Tatarstan
• Remoto - BrightBox - Remote Vehicle Control: Engine Start, Location, Route Tracking, Burglary Notification
• Mining and Transport Complex Management System - VIST Mining Technologies LLC - Intelligent Quarry System - Robotic Unmanned BelAZ (implemented in 2013) Reutech Mining System - Radars for Rock Movement Registration, Integration with Cherization Dispense System
• NormaSugar - NormaSugar Company - Automated glucose monitoring system. Remote Medical Consultations

Smart city (housing and communal services, public services)

• Eldis Information and Measurement System - Eldis CJSC - Online Service for Automated Commercial Metering of Energy Resources, allows management companies, resource supplying organizations and other participants in the housing and utilities market to organize the collection, storage and analysis of data from energy metering devices
• Information and measuring system "Strizh" - Company "Strizh" - Dispatching and automated remote housing and communal services. "Smart parking"

Smart home

• InwiON - Wellink Technologies - Platform for remote management of residential and non-residential premises (management of electricity, household appliances, video surveillance with analytics function)
• Wired Board 4 - Contactless - Universal controller with software for automation and monitoring of sensors, meters. Smart Home Platform
• EVIKA Logic Machine - Evika LLC - Platform for implementation of integrated building automation systems

Wearables

• ONETRAK - Onetrack - "Smart" bracelet counting distance traveled and time of motor activity - calculation of calories burned
• Healbe GoBe - Healbe - Sleep quality detector, heart rate monitor, sugar sensor, pedometer

Safety

Ready-made solutions for building entire segments within the framework of the "Smart City" concept

• NTC "Proteus" - Integrated automated security systems: agro-industrial complex Safe city. System-112. Monitoring of potentially hazardous facilities

Single citywide dispatching center "Smart city"

• Sintronix KAFU ─ Tele-review system. Traffic management. Single urban parking space. Fixing offenses

IoT Devices and Components

Transport cards, RFID tickets and keys - Micron

• Full production cycle of RFID tags and antennas
• System and Application Software for Smart Cards
• Development and production of integrated circuits

2016

iKS-Consulting: IoT in housing and communal services

The digitalization of the communal infrastructure of the residential sector (equipping households with digital metering devices) is at the very beginning of its journey. Even the level of equipment with mechanical devices for accounting water consumption does not exceed 70%, thermal energy - 8%. An exception is the segment of electricity consumption, which demonstrates the highest level of development of digital communal infrastructure (about 0.2 million digital/smart meters were installed, with a total indicator of household availability with conventional electric meters of 99%).

At the end of 2016, according to iKS-Consulting estimates, the total number of apartments in the Russian Federation was 65.2 million, the number of residential facilities (houses) - 3.7 million. The total potential of the market for smart metering devices in Russia in the segment of private utility power consumption and water consumption is more than 206 million smart meters. In 2014-2016. about 280 thousand real estate objects were introduced annually on average in Russia, of which 94% is accounted for by residential objects (about 1 million new apartments). All new objects, as a rule, are already immediately equipped with modern devices for accounting for resource consumption at the expense of the developer.

Entering the era of smart power systems will bring real improvements, but this is a difficult and costly path. An important condition is the creation of a regulatory and legislative framework that gives market participants an incentive and economic models of investment (state support, energy efficiency programs in the power, legislative requirements for consumers to install smart meters, economic incentives (for example, the introduction of increasing factors for consumers who do not have metering devices installed).

Russia already began to move in this direction in 2011, when the energy efficiency program was adopted. Now the government of the Russian Federation is actively discussing the issue of introducing smart energy metering devices on the market, which will gradually be combined into an intelligent accounting system. According to the Ministry of Energy, the installation of intelligent metering devices throughout the Russian Federation will cost about 400 billion rubles.

Pilot projects of PJSC Rosseti are already being implemented with the support of RDIF and foreign investors for the construction of "intellectual networks" in the regions. According to the program, it is planned to install about 223 thousand. PSD of electric power consumption. Installation of metering devices is carried out at the expense of the network company.

According to forecasts of iKS-Consulting, by the end of 2017 the total number of SIM-cards in housing and communal services will grow to 2 million. For mobile operators, a new technological transition may be NB-IoT technology (LPWA class of technologies, which by 2020 will account for more 1⁄2 of the total number of wireless connections in the housing and communal services segment). At the same time, new technologies and services based on them will both complement existing 2G solutions and replace them.

The government wants to create an "Internet of things" for farmers

The Deputy Prime Minister Arkady Dvorkovich instructed in December 2016, and To the Ministry of Agriculture To the Ministry of Industry and Trade Ministry of Digital Development, Communications and Mass Media to develop an action plan for the implementation of the so-called Internet things () IoT in the agro-industrial complex, write "" Sheets^[24]

The ministries will prepare proposals for providing the Internet to rural farms in the Voronezh region, Stavropol and Krasnodar territories, as well as develop a procedure for the construction of communication facilities on these lands.

To help farmers, it is planned to create Internet services based on data from weather stations and radars that will allow managing climate risks. It is also planned to conduct space monitoring, which will assess the effectiveness of land use.

According to the representative of the Ministry of Agriculture, the development of information technologies will increase the efficiency of agricultural production and reduce the cost of production.

See more Digitalization in the agro-industrial complex of Russia

J’son & Partners Consulting

The place of the Internet of Things in the Russian economy

Economic strategy aimed at increasing the competitiveness of Russian companies, the growth of Russian products in the domestic and foreign markets, the growth of their income and, ultimately, the growth of GDP the country, can be based on development initiatives, Internet of Things as tools for increasing the competitiveness of existing business, improving the efficiency of urban management state and facilities, creating new products and solutions in the field of Internet technologies and related business sectors, as well as the creation of new markets and products based on these solutions^[25]

When forming strategic initiatives related to the development of technologies and products of the Internet of Things, it should be borne in mind that in order to increase efficiency and create a technological basis for standardization and automation of new markets, they must horizontally cross all vertical industry markets in Russia, new promising market segments and technological strategies.

Programs for the development of new markets and technologies are being worked out in various developed countries at the level of the state and private companies. In addition, at the state and industry association levels, various industry strategies are being developed for the short and medium term: industry, electronics, information technology and others, which will be closely related to the development of IoT technologies.

Various public and state organizations are engaged in the formation of a strategy for the development of the Internet of Things in Russia. In particular, within the framework of the Ministry of Industry and Trade of Russia, a roadmap for the development of the Internet of Things was developed with the participation of the Internet Initiatives Development Fund (IIDF), Rostelecom and other market players; with the participation of Rostelecom, the National Association of Industrial Internet Market Participants (NAPI) was created, the Internet of Things Association was created on the initiative of the IIDF, and the Russian Internet of Things Association is working within the Skolkovo Foundation.

Internet of Things Development Programs Worldwide (Industry 4.0. in Germany, Internet + and Made in China in China, Advanced Manufacturing in the USA, Factory 2050 in the UK) respond to the specific development needs of certain sectors of the economy of these countries, the place and role of these countries in the global division of labor, the needs of increasing competitiveness and efficiency of their activities and the key development tasks of the economy of these countries as a whole.

Russia's IoT strategy must also address the specific challenges of the Russian economy, leveraging the strong competitive advantages of Russian business and market opportunities that Russian players can use to develop IoT technologies.

The table describes the main directions of development and the focus of support from the state and players of the IoT market in terms of the development of certain sectors of the economy, domestic products with a high degree of value added and the economy as a whole.

For developing IoT countries, the result is to strengthen their positions in the global system of division of labor and, as a result, the growth of the number of quality jobs and the overall growth of the quality of life in these countries (but at the same time, gross domestic product in nominal terms may even decrease).

Russia lags behind developed countries (USA, Germany and Japan) in labor productivity, this lag can be reduced, including through the introduction of IoT technologies. In the meantime, there is a significant lag in the development of these technologies. Thus, forming about 1.5% of the global gross product, in terms of the number of facilities connected to distributed telemetry systems, Russia in 2015 occupied 0.3% of the total number of such devices in the world with 16.2 million. This corresponds to a fivefold lag in labor productivity from leading industrial countries, of which only a few hundred objects are connected to Internet of Things platforms (bike parking in Moscow). Due to the various growth rates of connected facilities in Russia and the world in 2018, this share may decrease by another three times - up to 0.1% of the total number of objects connected to distributed telemetry and remote control systems, while the number of connected devices in Russia doubled to 32 million.

Such a significant lag in the development of IoT can lead to a further increase in Russia's lag in labor productivity not only from the United States, Germany and Japan, but also from China that joined this race, and, as a result, to a further decrease in the overall quality of life in the country, and with an increase in the speed of this decline.

For Russian companies working in the field of information and communication technologies, there are the following opportunities related to the development of IoT ecosystems in Russia:

• For telecom operators and data center service providers - in the localization of IoT platforms in data centers in Russia;
• For system integrators and software application developers - in the implementation of the functionality of domestic telemetry and tele-control systems in the form of applications for global IoT platforms.

For developers and manufacturers of electronic equipment - in the development and localization of the production of devices for connecting telemetry and tele-control objects to IoT platforms. The main directions of IoT development

Technologies and solutions of the Internet of Things provide new opportunities for the development of advanced production, urban infrastructure and socially significant services for citizens. The most susceptible to IoT innovations in Russia are enterprises from the following industries:

• smart transport (electric vehicles and public electric transport, smart transport infrastructure, unmanned vehicles);
• smart power (systems for redistribution of energy flows by new and old energy, power storage systems, smart consumption, renewable power);
• smart industry (automation of production, including robotization, control systems, industrial electronics, systems for end-to-end planning of the entire sales chain and production of products and procurement of components);
• smart agriculture (electronic planning, monitoring, control and management systems, smart agro-industrial production);
• smart housing and communal services (automated accounting and housing and utilities management systems, smart networks of water, gas and power supply);
• cloud computing (date centers, big data, artificial intelligence);
• smart client electronics and services (smart devices (smartphones, smartTV), smart home, smart services integrated with e-commerce services, housing and communal services, digital media and banking services);
• telemedicine;
• online education;
• client and industrial robotics;
• smart retail and delivery systems (1) automation of sales processes, 2) end-to-end systems of electronic procurement, distribution and logistics);
• digital banking and electronic money.

Constraints and requirements for the implementation of IoT projects in Russia

Ecosystem and Partners. To implement projects in the field of the Internet of Things, it is necessary to form an entire ecosystem, including:

• availability in Russia IoT-platform for data collection, storage and processing, both global and national;
• An extensive pool of application developers for IoT platforms
• a sufficient number and nomenclature of devices capable of interacting with platforms, so-called "connected devices";
• enterprises whose business and organizational model allows transformation, and so on.

If IoT platforms are already available in Russia, then the development of application services and, most importantly, the organizational readiness of potential Customers are still associated with the main difficulties. At the same time, the absence of at least one of these components makes the transition to IoT technologies impossible.

Government support. The introduction of Internet of Things projects in the world is actively supported by the state in the form of:

• direct public financing;
• public-private financing in conjunction with major players;
• working and project groups are formed from representatives of the industry, research institutions;
• Test areas are organized and shared infrastructure is provided.
• Contests and hackathons are organized to create applications and developments;
• pilot projects are supported;
• research and development is funded in various areas of implementation (artificial intelligence, management information systems, security, network interaction, etc.);
• Export of developments is supported
• most large countries have approved long-term government Programs in support of the Internet of Things.

For example, the Industrie 4.0 project is recognized as an important measure in strengthening German technological leadership in mechanical engineering; direct state funding in the amount of $200 million is expected for its development.

In addition, for the implementation of the program, financing of innovative research in the field of ICT is provided through the Ministry of Education for the study of:

• intelligence of built-in devices,
• simulation models of network applications,
• interaction between humans and machines, language and media management, robotics services.

A prerequisite for research within the framework of the German Industry 4.0 project should be a focus on business and cooperation with universities or research organizations.

Legislation and security. New market-leading technological implementations inevitably face the constraints of the current regulatory framework around the world. There are situations of uncertainty about the legality of the new technology, data extraction, information protection, etc. At the same time, the influence of new technologies and business models turns out to be so great that it becomes almost impossible to comply with the current legislation and a "shortage of law enforcement" arises.

In the interest of developing innovative potential within the country, legislative bodies require significant flexibility and a quick response to emerging technological and market changes, the development of criteria so that new items comply with the requirements of legislation, and the development of a regulatory framework so that it does not interfere, but contributes to the emergence of new technologies.

The Internet of Things is uncharted territory and introduces particularly complex issues of interaction between different participants in the ecosystem, sharing resources and information; complexity is caused by contractual relations between partners, issues of identification, intellectual property rights and piracy in the field of technology, issues of protecting critical infrastructure, data, cybersecurity, as well as issues of customs regulation as part of the formation of global industrial networks.

Standards. In the implementation of IoT projects, it is important to coordinate all participants in the ecosystem to agree on uniform standards and requirements for the product, security, and business processes. Standardization and safety issues should be part of the entire production cycle, from research and design to production and operation. To guarantee the possibility of using products in various companies and industries and compatibility with various IT systems. Otherwise, retrofitting and modifying products or upgrading the software in the event of a failure to comply with approved standards or the detection of security errors can significantly increase the cost and slow down the introduction of new services.

Standardization issues are also important in that the production of products at a separate plant, in compliance with accepted international standards, ensures the possibility of entering the markets of other countries - local can become global, which increases the market and revenues of the company and increases export potential.

Russian Internet of Things technologies

The development of the Internet of Things market can serve as both a link and a driver of growth in various sectors of the Russian economy related to the development of high-tech products and services, the introduction of IoT technologies and the development of new technological markets related to the development of IoT technologies. Industries that will directly participate in the development of IoT and create new products and services in this market include:

• Telecommunications, network and telemetry services, including those based on cellular, satellite, wired and other communication technologies.
• Telecommunication and network equipment, communication and access devices.
• Electronics, including industrial, personal and applied.
• Client and enterprise software and hardware solutions, products, platforms, and IT services.
• Internet solutions, platforms and services.

Among the Russian companies that have already actively joined the Internet of Things market, players in all of the above sectors of the economy can be distinguished.

1. System Integrators and IT Services

Obviously, the first in the chain of implementation of Internet of Things technologies in Russia will be system integrators who can assess the benefits of introducing individual product solutions and technologies for Russian companies, select the optimal Russian or foreign platforms, solutions and products, or develop new solutions based on existing blocks and niche products and implement them at Russian enterprises. Among the companies that are already operating in the Internet of Things market are Technoserv, Sibintek, I-Teco and other companies that already have separate technologies and solutions, as well as a line of products and potential customers for implementing IoT projects. Revolta Engineering is an active player in the IV market, which has its own technologies and solutions for implementing various Industrial Internet projects.

2. Information Security Systems

Among the technology segments of the Internet of Things, where Russian companies have a strong position and a high level of competitiveness in international markets, is security. Kaspersky Lab already has developments to ensure security in IoT solutions and products for both industrial and private consumers.

3. IT Services and Internet Platforms for Transport

There are many Russian companies in this market that supply various products and services for smart transport. In particular, they include: "TransportTV" (information and media services on public transport), StarLine (safety system for vehicles) and other companies.

In 2016, Yandex entered into an agreement with KAMAZ to develop an unmanned vehicle. The partners plan to bring out a pilot version of the vehicle for testing next year. It is planned to produce unmanned mini-buses for use as part of smart urban infrastructure. Yandex and KAMAZ partners in this project are the German DAIMLER and the Russian research institute NAMI.

Other companies are also developing solutions for an unmanned vehicle and smart transport infrastructure in Russia.

4. IT solutions in power and housing and communal services

In Russia, there are many suppliers of measuring equipment, sensors, various solutions for the field of power and housing and communal services. Among the companies that are engaged in promising developments and complex solutions in this direction are Promising Linear Technologies and Modern Radio Technologies (CPT).

5. IT Solutions for Agriculture

Companies that introduce Internet of Things products in agriculture are already operating on the Russian market, including the Russian company Neoflex, Revolta Engenneering also has implemented projects in this industry.

6. IT Systems and Smart Home Devices

There are various developments for the Smart Home that are being conducted by Russian companies. In particular, GS Group develops comprehensive solutions for the Smart Home based on its set-top box for pay TV (sold by TricolorTV). Aquatoroge is developing advanced Smart Home products based on and in development of its device for automatic control of water leaks in the home, which can be integrated into a comprehensive Smart Home solution. Other companies are also developing in this business segment.

7. IoT Platforms and Cloud Solutions

There are several strong players in the Russian market who are developing large platform solutions for automating business processes and cloud platforms for. In data storage particular, such companies include "," "Yandex and 1C others. These companies are actively developing and will supply solutions for the Internet of Things. The company "" Rostelecom is engaged in the development of a national Internet of Things platform for the Russian market., Tibbo Systems a Russian developer for software management and monitoring systems (platform), Tibbo AggreGate provides services for the development and To IT infrastructures APCS automation of buildings, physical security systems and other areas of the Internet of Things. A universal trusted Internet of Things platform "" is also on the market.Taisen

8. Electronics

There are many companies on the Russian market whose products, technologies and developments will be used to build platform hardware solutions, networks and infrastructure for the Internet of Things, including in terms of microelectronic components and sensors, computers, network and telecommunications equipment. Russian companies that operate in this market include: Micron, Angstrom, T8 NTC, T-Platforms and other players. More details about this segment will be provided in Section 8.

9. Communication

Telecom operators will also play an important role in developing the adoption of IoT technologies. Already, many telecommunications operators are developing M2M services, which are the initial stage for the formation of more advanced and integrated Internet of Things solutions. Suppliers of such services include all cellular operators (MTS, MegaFon, Beeline, Tele2) and other companies. Currently, the main customers of IV services from telecommunications companies are the transport and financial sectors of the economy, but projects in agriculture, separate solutions for the "smart city" and housing and communal services, in other sectors of the economy are already appearing. Telecommunications operators are strategically interested in the development of this business and can play an active role not only as providers of niche services and telecommunications infrastructure, but also developers of technologies and complex solutions of IV. A separate position in the Internet of Things market is occupied by Rostelecom, which, on the one hand, is together with Kaspersky Lab, the co-founder of the National Association of Participants in the Russian Industrial Internet Market (NAPI), and on the other hand, is developing a national Internet of Things platform (as mentioned above).

10. Internet services and applications

In this segment of the Internet of Things, many players are already working and even more companies will work in the future. Russian companies are traditionally strong in developing end solutions for the Russian consumer, know the Russian market and client well, and have significant expertise in technologies.

11. Robotics

Russia also has developments in the robotics segment for both private consumption and industrial use. This direction of the Internet of Things requires separate research and analysis.

The above list of Russian software products, technologies, services and solutions for IV is not exhaustive. Some Russian companies are in the fairway of global technological development and are competitive compared to international taxes. Many Russian companies lag behind in technological development and require both systemic support at the state level and systemic strategies for the development of the industry, as well as significant investments in order to compete on equal terms with world giants.

AC&M Consulting

The volume of the Internet of Things market in Russia in 2016 amounted to about 85 million rubles. This is how AC&M Consulting estimated the costs of Russian clients in this segment.

Compared to the previous year, the market growth was 42%. The dynamics slightly decreased - a year earlier the growth was at the level of 58%, they write in May 2017. "Sheets

Operators earned 7.6 billion rubles on the Internet of Things in 2016, which is a quarter more than a year earlier. The decline in dynamics, however, is also observed here - a year earlier, operators' revenues grew by almost 30%.

In the fall of 2016, AC&M Consulting published a report according to which the M2M and IoT markets in Russia number at least 10 million devices. During 2016, the number of devices increased by 30%, next year the growth rate will be 40%, market participants predict. Revenue from services and services based on machine-to-machine interactions will grow by 23% in 2016. In subsequent years, the percentage of growth will decline - 22% in 2017 and 19% in 2018. In the period from 2016 to 2020, the annual decrease in growth may amount to 2-3%.

The most popular areas of use of M2M and IoT services from Russian telecommunications companies are transport and retail, as well as housing and communal services and power. According to the company, the leader in the number of SIM cards involved in various IoT solutions is MTS with a share of 40%. This is followed by Megafon - 35% and VimpelCom - 19%.

Rosstandart will form a technical committee to standardize smart technologies

The Federal Agency for Technical Regulation and Metrology begins the formation of a technical committee that will standardize Cyber ​ ​ Physical Systems. This was reported on the website of the department. The committee will be created on the initiative of JSC "RVC" - the state fund of funds and the development institute of the Russian Federation.

The committee will carry out work on the standardization of such areas as "Internet of Things," "Smart Cities," "Smart Production," "Big Data." It is planned that the committee will develop the following national standards:

• GOST R "Internet of Things. Reference architecture "(harmonisation with ISO/IEC 30141);
• GOST R "Internet of Things. Terms and definitions "(harmonisation with ISO/IEC 20924);
• GOST R "Internet of Things. Interoperability of IoT systems. Part 1. Structure "(harmonisation with ISO/IEC 21823-1);
• GOST R "Internet of Things. Interoperability of IoT systems. Part X. Semantic interoperability "(harmonization with ISO/IEC 21823-X);
• GOST R "Big Data. Reference architecture "(harmonisation with ISO/IEC 20547);
• GOST R "Big Data. Terms and definitions "(harmonisation with ISO/IEC 20546);
• GOST R "Smart City. ICT reference structure. Part 1. Smart City Business Process Structure "(harmonisation with ISO/IEC 30145-1);
• GOST R "Smart City. ICT reference structure. Part 2. Smart City Knowledge Management Structure "(harmonisation with ISO/IEC 30145-2);
• GOST R "Smart City. ICT reference structure. Part 3. Smart City Engineering Systems "(harmonisation with ISO/IEC 30145-3);
• GOST R "Smart City. ICT indicators "(harmonisation with ISO/IEC 30146).

P&ID data

MTS presented in September 2016 an analytical report on the Internet of Things market in Russia for the first half of 2016. The volume of the Russian M2M/IoT market in the first half of 2016 reached 300 billion rubles, an increase from 225 billion rubles in the first half of 2015.

The market growth in monetary terms is due to an increase in demand for Big Data technologies: the driver was the sale of devices and applications for analyzing large amounts of data (the share in total revenue increased by 2% to 55%), data analysis software (an increase of 1% to 27%), as well as platforms for intelligent SIM card management (an increase of 3% to 20%). Revenue from simple access of telematic sim-cards to operator networks showed zero dynamics and took 1% in the share of operators' revenue in the M2M/IoT market.

The physical volume of the M2M SIM card market in Russia increased to 7.8 million units from 6 million a year earlier. MTS's market share was 52% (4 million SIM-cards, a year earlier MTS served 3.2 million SIM-cards).

Total revenues of MTS from projects in the IoT segment increased 1.7 times, which reflects an increase in the contribution of revenues from the operation of service platforms and software, as well as the sale, installation and maintenance of equipment with the help of NVision Group. Revenues from projects based on LTE networks, service platforms and applications for analyzing data from M2M devices are growing most rapidly - over the year they have tripled.

The traffic of telematic devices in MTS LTE networks in the first half of 2016 increased 1.6 times over the year; in 3G networks - by only 7%, traffic in second generation networks decreased by 5%. The highest dynamics of M2M traffic consumption was recorded in Grozny - the volume of transmitted telematics data in the capital of Chechnya increased 3.7 thousand times.

According to the MTS forecast, in the future, the main customer requests will be related to complex industry solutions including equipment, device management platforms, data storage, software and mobile applications for their analysis, while revenue from data transfer services for IoT devices will decrease and by 2020 will occupy tenths of a percent of total revenue.

By 2020, the share of the M2M/IoT market revenue in Russia from the sale of devices, development and sale of applications, as well as software for analyzing large amounts of data will grow to 65% from 55% in 2016. Telecommunications companies will not only be required to provide customers and end consumers with communication, but also provide comprehensive digital solutions, including cloud, storage and data processing centers.

IDC: The Internet of Things market in Russia will grow to $9 billion in 2020

In 2016, Russian organizations invest more than $4 billion internet of things in (Internet of Things,) IoT , including the costs of equipment, software services and, communication were estimated in. In the IDC report Russia Internet of Things Market 2016-2020 Forecast^[26] in September, analysts predict that during 2016-2020 the IoT market will increase by an average of 21.3% and by the end of the forecast period will reach $9 billion.

According to IDC, several industries set the tone for the development of the Internet of Things in Russia: production, transport, power. They collectively account for more than 50% of the total IoT market. The next largest investment in this direction is the public sector, driven by initiatives to build "smart cities."

While transport and production are leading in terms of total IoT investments, the level of investment in the insurance industry will grow twice as fast as in the overall market in 2016-2020, analysts expect. In the forecast period, cross-industry implementations will also increase by almost 40%, representing the same IoT use cases for all industries.

IDC expects that pilot projects with tangible results in retail, healthcare and agriculture to trade extractive industry retail will have a significant impact on the spread of IoT technologies in these industries.

IoT use cases involve a whole set of technologies designed to effectively solve a specific range of tasks for customers. The opportunity for solution providers is primarily to help customers find and realize new competitive advantages using technology now and in the long term.

IDC identified scenarios that receive the highest level of investment in Russian organizations:

Production Asset Management - Allows you to remotely monitor, monitor, and maintain production equipment, including real-time equipment health analysis, diagnostics, and the ability to prevent problems before they occur (Predictive Maintenance).

Cargo Transportation Monitoring - Enables the use of Radio Frequency Identification (RFID), GPS, GPRS, and Geographic Information System (GIS) technologies to create intelligent transportation systems that monitor location, routes, and real-time cargo transportation using wireless, satellite, or other communication channels.

Smart Grid - systems built on the principles of active decentralized interaction between different elements of the network in real time, serve to improve the efficiency, safety and reliability of power supply.

The listed scenarios, as well as systems for "smart production" will lead in terms of investment in 2016-2020. It is also expected that during this period investments in telematics insurance, "smart agriculture," omnichannel service, self-driving cars will grow at a significant rate.

The spread of the Internet of Things in Russia is very dependent on state support and awareness of business value in the commercial sector, IDC says. - There are enough technical solutions from global vendors and local providers, but end users lack possible implementation scenarios that would bring tangible results. In addition, organizations are concerned about information security challenges associated with the Internet of Things. In this regard, vendors need to include information security solutions as part of their products and position them as an integral part of the Internet of Things.

2015

The Ministry of Industry and Trade begins the development of the IV roadmap

On October 29, 2015, it became known about the development by the Ministry of Industry and Trade of a "roadmap" for the development of the "Internet of Things" in Russia. One of the key supporters of the government in this project will be Rostec.

According to Kommersant, citing two members of the working group under the Ministry of Industry and Trade, which is developing a roadmap for the Internet of Things, it should be presented by February 2016.

According to the publication, the working group included representatives, MINISTRY OF EMERGENCY SITUATIONS,, Rostelecom, Samsung GS Group groups of T1 (part of), JSC Renova Group of Companies (RTI GROUP part of). AFK Sistema It is planned to create IoT a consorcium, which will include the largest developers of microelectronics, platforms, standards, interfaces and applications, and the key participants in this association should be Rostelecom, GS Group, ( a subsidiary United Instrument Making Corporation of Rostec), one of the newspaper's interlocutors notes.

According to the representative of the Internet Initiatives Development Fund (preparing a document of the "roadmap" for the development of the IoT market on behalf of the Ministry of Industry and Trade) Sergey Skripnikov, the working group discusses pilot projects in the areas of "smart city," industrial "Internet of things," medicine, agriculture. During the dialogue between business and the state, it is planned to determine IT platforms, IoT standards and the first services, Skripnikov added.

Foreign companies ready to localize technologies in Russia will be able to enter the consortium for the development of technologies for the "Internet of Things," which will create a Russian package of technologies for IoT and ensure the transfer of technologies from various industries, a company manager familiar with the discussion told Kommersant.

Director of Strategic Marketing at GS Group Andrei Bezrukov said that the company is aware of the government's plans to create an industry consortium, and this project is supported by GS Group.^[27]

iKS-Consulting Data

On December 3, 2015, iKS-Consulting published iKS-RATING: "Russian market M2M/IoT" Preliminary results of 2015 and forecasts for the near future^[28].

M2M and IoT Market Highlights and Forecasts

According to iKS-Consulting estimates, in 2015 the number of SIM M2M/ maps IoT Russia in will be ~ 8 million. The growth rate in 2015 will exceed 20%. At the same time, the B2B segment accounts for more than 97% of the SIM card market.

According to forecasts of iKS-Consulting, in the coming years the M2M/IoT market will continue its active growth. At the same time, the market will grow both due to the B2B segment, which is still far from saturated, and in the B2C segment.

One of the main growth drivers in 2015 was massive government projects, the active growth of SIM cards in the B2C segment. Special tariff plans for user devices from the B2C segment began to appear on the market. Previously, such tariffs were available mainly only to corporate users. All operators try to offer their solutions and ready-made connection kits for mass users.

Operators in the M2M market

Operators seek to find the main development vectors for themselves in the B2C segment and offer pilot projects on the market in cooperation with interested market players.

For example, MTS has intensified its efforts in the consumer and consumer electronics segments (cooperation with manufacturers of household appliances REDMOND). VimpelCom has offered a solution for the Connected Car segment on the market, which allows you to remotely control some of the functions of the car. MegaFon focuses all its efforts in the M2M/IoT market on the B2B and B2G segment.

All operators strive, in the near future, to earn not only on traffic revenues (connectivity), but also to a greater extent on the service component.

By 2020, the total number of SIM cards in this segment will reach 26 million. At the same time, ~ 18% of SIM-cards will be in the B2C/IoT segment. The largest number of SIM cards will be in the Connected Car, Smart Home and consumer electronics sub-segments. As of December 3, 2015, more than 70% of all registered SIM cards are used in these segments.

The B2B segment will continue its growth primarily due to mass projects for the implementation of M2M solutions in transport (projects for collecting fees from heavy vehicles on federal highways, as well as the introduction of the ERA GLONASS system).

The product boundaries of the M2M/IoT market in this company study were limited to the following segments: B2B, B2C.

The B2B segment in M2M in this study is an M2M solution with a ready-made and customized service or boxed solutions designed for specific industries (e.g. transport, security, financial sector).

A number of solutions also use special platforms for managing SIM cards and services. In the B2C segment, the consumer purchases a device with an integrated sensor/chip and access to the cellular network. At the same time, the user independently sets up and selects the tariff and operator for his M2M device.

J'son data: 16 million IoT devices in Russia

According to J'son & Partners Consulting, at the end of 2015, the total number of IoT devices in Russia amounted to more than 16 million units, including devices connected via cellular, fixed, Wi-Fi networks and other short range communications technologies. This is 0.35% of the total number of connected devices in the world - 4.6 billion units. (company estimates Ericsson).

J'son & Partners Consulting is considering two options for the development of the Russian IoT market - basic and optimistic.

The basic scenario for the forecast of the IoT/M2M market in Russia in quantitative terms (the number of connected IoT/M2M devices) for the period up to 2018 is presented in Figure 1. According to this scenario, in the time horizon under consideration, the market will demonstrate steady growth due to the development of mass IoT services, primarily in areas such as smart home, transport, trade, financial services and IoT in industry. Despite the problems in the Russian economy, by 2018 it will reach the level of 32 million connected devices. Nevertheless, due to the higher growth rates of the global IoT market, Russia's share in the total number of connected devices in the world will decrease to 0.1% by 2018. With an optimistic forecast, this share will be able to reach 1%.

According to J'son & Partners Consulting estimates, Russia's current share of the global IoT market does not match its role in the global economy. According to the International Monetary Fund, in 2015, the share of Russia's GDP was 1.68% of the global, and the share in connected devices was only 0.35%. Thus, it can be stated that at the end of 2015, Russia is significantly lagging behind in the development of IoT services and systems.

As a response to crisis phenomena in the Russian economy, one should expect the beginning of qualitative market changes and the use of IoT as a tool to solve the problem of the effectiveness of the Russian economy, the researchers are sure. Already in the foreseeable future, it will be possible to talk about the beginning of the formation of IoT/M2M ecosystems, which includes the following basic components:

• Sensors and actuators connected to the public Internet and capable of interacting with various specialized IoT cloud services;

• Open analytical IoT platforms and specialized IoT services based on them;

• Open Application Programming Interface (API) libraries that allow you to integrate specialized IoT services with other cloud services.

In terms of sensors, the problem of their interaction through the network is solved by specialized software development tools and applications (SDK) from leading vendors of components and software optimized for working with cloud IoT platforms. In addition, smart device vendors are actively using short-range technologies such as NFC and, as a result, this leads to the emergence of mass applications for them.

In terms of IoT platforms, the problem is solved by the already established arrival in Russia of vendors of analytical and integration/universal IoT platforms, which rely on the development of communities of developers of application solutions and their integration through open APIs.

Due to the lack of alternatives in the domestic market, Russian developers of proprietary solutions will probably be forced to actively use this toolkit to create applied IoT/M2M solutions within the framework of emerging ecosystems based on a cloud model, and not a proprietary hardware-dependent one, as it is now.

At the end of 2015, companies are primarily focused on mass IoT segments in the use of IoT technologies, where market incentives such as:

1. Smart Home, including:

• Intelligent Security Services Solutions
• Intelligent Services Solutions for Household Resource Optimization

2. "Smart transport," including:

• Fleet management services for individual carriers (some analogue of Uber for freight transport)
• UBI Insurance Services
• Maintenance Services by Actual Status

3. Trading and Financial Services:

• Solutions for automatic data transfer and analysis from POS terminals, including virtual
• Managing household inventory as a service.

4. Industrial segment - conversion of PCS to IoT principles.

See also

• Article:Internet of Things (IoT)
• Article:Internet of Things, IoT, M2M (Global Market)
• IIoT - Industrial Internet of Things
• IIoT 2018: Industrial Internet of Things market in Russia
• Internet of Things: you can't stay in time
• RFID
• Smart Grid
• NB-IoT Low-Power and Wide-Area Standard, LPWAN
• Non-IP Data Delivery (NIDD)
• APCS

• Internet of Things in Medicine
• Internet of Things in Telecom
• Internet of things in housing and communal services
• Internet of Things in the Electric Power Industry
• Internet of Things in Construction
• Internet of Things in Logistics

• Big Data
• Big Data (Big Data) Global Market
• Big Data in Russia
• Big Data in E-Commerce

Notes