How 4.5G IoT enables Vertical Industries
Jörg Diederichs
CTO/VP New Business
Huawei Europe
Market and Trends
3
IoT is Leading Vertical Industries Innovation and Transformation
60% of organizations 24% of IT budgets 63% of IoT adopters
IoT as a Service
Home
1.1BVehicle
1.6B
Utility
3.6B**
Smart City
6.2B
Elevator
23M
Track & Trace
2.5BRetail
100MHealth
650M
are using & implementing IoT
service*are allocated to IoT are seeing "significant" returns
on investment
90%+ business store IoT data and applications in the cloud
* 1,096 qualified respondents from 17 countries across11 verticals
** IoT connections by 2020
Source: Machina, Circle-research ,Gartner, IDC & Huawei Research
OpportunityIndustry Technology
4
$89B Market with 3.5B Connections for Telco by 2021
Operator Participation
• electricity
• Lighting
• white goods
Smart Home
• bicycle
• Water metering
• smoke detector
• Parking
FMS
UBI
• gas metering
• environment
• sewer covers
• tracking
• fire hydrant
• agriculture
• animals
$16B
$15B$18B
$16BSmart City
3.5B Connections by 2021
Ma
rket
siz
e b
y 2
02
1
Source: Huawei IoT MET
2017 Focus: Water Metering, Parking, Lighting, Smart Home
OpportunityIndustry Technology
2 15 27 30 33 34 53 65 96 129 139 147 176
234 287
464 705
836
fire hydrantparking
environmentsmoke detector
agricultureanimals
sewer coversbicycle
FMStracking
white goodsUBI
lightingsmart home
gaselectricity
otherswater
Operator Addressable
Unit: Million
5
Huawei IoT Project Scope
What we do:
• Wireless networks, enterprise IoT
gateways, home IoT routers
• Cloud based IoT platform
• IoT chips (with built-in Huawei LiteOS)
• Ecosystem development: enabling partners
and Telco to meet IoT needs
What we don't do:
• Applications
• IoT device development
• IoT device reselling
• End-to-end integration
• NB-IoT module
IoT Connection Management Platform
2G/3G/4G/
eLTE/NB-IoT/5G
Agile IoT gateway
Smart home gateway
Public Utilities
Huawei LiteOS | Chips | Module
Industry 4.0 Smart Homes Green Energy
IoT Infrastructure
Security
Big data security
threat prevention
IoT firewall
Endpoint
security protection
Connection
MgmtDevice Mgmt
Application
Enablement
OpportunityIndustry Technology
6
4.5G Use Cases
7
Street Parking: IoT Parking as a Service
Labor cost**
$1.62M
Revenue*
$2.74M
* Revenue: $2.74M = 1,000 parking spaces x $2.5/day x 365 days x 3 years
** Labor cost: $1.62M = 60 staffs x $750/month x 12months x 3 years
95% Revenue
Parking
Company
$5.21M
2X• Available parking space inquiry
• Missing payment prevention
• Device HW* + installation + integration + 3 year-
maintenance
• Improved reading success rate & battery life
• Fast/easy application integration, secure access
• Device status & location visualization
• Alarm when battery low
• Open API to 3rd parties (maps, cities, etc.)
60 → 10 headcounts $0.27M
5% Revenue
$0.27M
Telco Business Modeling
Manual Parking
Management
Smart Parking by
NB-IoT
Parking Company Business
Parking Lots
Connection
IoT platform
Device
$0.46
ARPU
$7.5
ARPU
Low Turnover Rate High Labor Cost Heavy TrafficInvisible Parking
Space
Parking Company City Driver
Global Road Parking Spaces
by 2020
Challenges
Telco shares
5-10%
revenue
24M
Parking
Mgmt
System
3rd Party
APP
1,000 parking spaces in 3 years
*Parking sensor cost: approx. $130 / unit
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
8
Power Consumption Baseline
Actual Power
Consumption
Cloud Service
Precision Control
/ Intelligent management ~20%
LED Replacement~50%
Power Saving
Connection Service
LED Replacement+
Individual Light Control +
IoT Platform / Cloud Service
Power Saving
Smart Lighting: Value-added Service based on Cloud
•Group Control
•Precision Operation
•Ceiled Power Saving
•Complex Operation &
Maintenance276 millions
LED replacement
Global Market by 2020
Light-On Rate
(Not only about a city image)
Cloud and Platform Services beyond Connection
• NB-IoT Network QoS: Improved light-on rate
• Application integration
• Remote light control and configuration
• Device status & location visualization
• Alarm when unhealthy
• Open API to city, police, etc.
$x / month
$x/ month
Connection
Service
IoT Platform
Device
EMC
“Saving is Earning”
Lighting Operator Project
(40,000 units)
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
9
Water Metering: A Start to Smart Water Service
Misreading
compensation
Leakage loss
Meter reading cost
Meter
Amortization
0.7
27.3
5.7
2.9
Manual reading
(million USD/year)
NB-IoT smart utilities
(million USD/year)
0.14
19.1
3.2
5
30%
80%
Water Company Business Telco Business Modeling
$4.6US
/meter/year
40%
• Device status, location & alarm
• Remote device control,
configuration & upgrade
• Open API
• Improved reporting success
rate in all scenarios
Service
IoT
Platform
Meter
Connectivity
VibrationFlow PressureTemperature
700k meters
High labor cost
& misreading
compensation
Leakage Multi-tier Pricing
Telco market of smart meters by 2020
410M 240M 90M
Cost Saving $9.3MUS/year
700K Water Meters,12 Years Life Cycle
Telco's Revenue:
$ 3.2M / year
Telco Income : $3.2MUS/year
($1,600/site/year )
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
10
Electricity Metering: More Reliable, Controllable & Adaptable
• 80% smart electricity meters across Europe by 2020
• 20-20-20: CO2 emission down by 20%, green power up
to 20% & energy efficiency up 20% versus1990
• Dynamic balance between non-green and green power
production to avoid grid instability
• UPGRID project (2014): a fund of €12M to support
smart metering trials in Portugal, Spain, Poland &
Sweden
Suburban & Remote Area
• Low density, high
power line noise
Dense Town Center
• High density, complex
architecture, difficult
wiring
Factory & Plant
• Complex electromagnetic
environment
Remote power shut-down, configuration & upgrade• NB-IoT ubiquitous nation-wide coverage
• NB-IoT complex environment penetration
• Meter status diagnosis, maintenance & upgrade (vs. PLC meters
& data concentrators)
• API data service suites (dynamic power, tiered pricing…)
• Batch support of meter group management
• Secure access to electricity devices
• Hybrid electricity & gas metering management
Connection
Service
CloudIoT
Platform
Meter
Improved metering success rate: > 99%
Telco-grade network security
Dying-gasp alarm & reporting: < seconds
NB-IoT module inside Smooth evolution for Smart Grid via NB-IoT
• Low metering
success rate:
< 95%
• High wiring cost
Noise
Attenuation
Distortion
Inte
rfere
nc
e
Meter
Supplier
Govern-
ment
Grid
Operator
Telco
Operator
Contributing elements: transformers, converters, LEDs, solar panels, chargers…
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
11
Smart Gas Metering: Improved Management through Cloud Service
Administrator
Monitoring both meter and
pipeline: pressure, temp.,
corrosion, valve status ,,,
2.2M on pipe + 1.1M with tanks*
IoT
Platform
Application
CloudService
Connection
• Multi-vendor meters adaptation, no lock-in
• Meter mgmt: valve control, status & battery level
• Fault location & trouble shooting
• Data analytics: tiered-pricing
• Cloud data storage, computing & security
• Fleet management
• Massive meter secure access
• Meter reading success rate improvement
• eSIM planned to support
Water Meter
• Trusted and reliable cloud
services (Computing & Storage)
• Carrier-grade E2E security
service
• Local IT professional service
Gain from improved metering success rate: 75 - 98.5% to 99.5%
Gain from operation automation from cloud services: $xM / year
Gain from maintenance services: $xM / year
NB-IoT
* 15% transformation per year to pipe meters
2G/3G/4G/NB-IoT
Too many kinds of meter,
application and network to
manage
Gas tanks distribution
& monitoring
3G/4GIoT Platform
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
12
Fire Detection: Simpler, Safer and Saving
occurred in 9 small public areas83.7% fire
Hospital / kindergarten / shop / restaurant / hotel / bar / internet cafe/ SPA / SME
Smoke Detectors2 M
Independent smoke detectors in Shanghai by 2023
• No relay (gateway)
• Less maintenance
• No wiring
Smoke
detector
¥200
Traditional solution NB-IoT solution
Service
¥150 /10 yrs
Maintenance through cloud
Refurbishment Program of Municipality
10-year contract: ¥350 / detector (hardware + connection + maintenance)
NB-IoT RAN
Cloud gateway, protocol resolution
& cloud storage
Service
Connection
IoT platform
Wo Cloud
* Connection tariff based on 2G: ¥0.5 / month
¥1 / m
on
th*
Cloud Service
¥12 / year
Cloud & Distribution Services
** Maintenance : gateway / wiring maintenance + detector cleaning: ¥5 / 2 years
Installation: ¥30
+
gateway: ¥28
+
Traditional
detector
(Maint.**+ 2G)
¥15 / year
• Migrated from OTT cloud to Telco cloud
• As a sales channel including fire detector
Fire DetectorSales channel
Gain: ¥53
Installation ¥5
+
NB-IoT Detector
(Maint.**+ NB-IoT)
¥15 / year
Sales
Commission
BicycleWhite GoodsFire
DetectionGasElectricityWaterLightingParking Elevator
13
White Goods: An E2E Life Cycle Management
Distribution Delivery Maintenance
Wrong
Placement
WIFI
ConfigurationConnectivity
Design ManufacturingDistribution &
WarehousingUsage Recycling
Location & Geo-fenceWrong Placement
NB-IoT module
provisioned & configured
Distribution
Delivery
MaintenanceConnection initiated
upon out of warehouse
Complex WIFI
configuration
Few appliance
connected
RFID• device mgmt.
• location
• data flow
• data storage
Connection
Cloud IoT Platform
Appliance
• geofence
• big data analytics
• host service
• other services
• low power consumption
• wide coverage
Telco Business Modeling
Service
• tracking & positioning
• Monitoring & controlling
$x/ SIM for 6 years
$xx/ device for 6 years
$x charge to power utility for data use thru API
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
14
Green Cycling: Between Home and Office
8 times/day of location reporting
Count of days onsite at office
50% usage for incentive €22/month
120K leases /yr 450K sales/yr Incentives
Scattered enterprises
to manage
Risk of fraud use &
claim for incentives
• NB-IoT ubiquitous nation-wide coverage
• Potential positioning replacement to GPS (3GPP R14)
• Controlled power consumption & battery life (PSM)
• Remote firmware & software upgrades
• Multi-sensor management & faulty location
• Cloud multi-tenant hosting & independent secure access
• GPS & accelerometer (ph1)
• Air quality & vibration sensors (ph2 - TBD)
Connection
Service
CloudIoT
Platform
Device
Bicycle
• Dashboard (collective)
• Bike status (individual)
~ 10,000 bikes by 2018
• 36-month contract btw employer & lease company
• Optional purchase with 40 – 60% discount at end of contract
36-month
contract
Contribution
(€ net)Benefit
Employee 990A high-class bike (€4,600) +
insurance
Employer 1,500Savings from sick leaves & car
parking
Government (incl.
tax loss)1,900
To limit traffic, lower CO2 &
stimulate health program
Tracker
Application
45K by 2021
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
15
Sharing Bicycle: Cheap, Convenient & In-Scale
• NB-IoT Network QoS: improved unlocking success rate
• Alarm when battery is low
• Geo-fencing capability prevent from fraud use
• Precision timing for charging and stop-charging
• Processing capability of millions of bike
• Remote control, configuration & upgrade of lock
• Open API, e.g., postpaid credit assurance, data to city, etc.
• NB-IoT module
Connection
Service
Lock
CloudIoT
Platform
Bicycle
• Fixed password, risk of
password shared for free
usage
• Location unknown, bicycle
stolen
• Electricity generating,
higher cost
• Shaft generator, bad
experience
• Solar energy, shaded by
weather, ad flyer, …
• NB-IoT + GPS*
• 2-year battery life
• 20dB better coverage
• Unlock remotely
• Right charging (30s after
locking)
Search
in E-map
Scan
QR Code
Remotely
Unlock
Ride
& Record
Lock
& Pay
Navigate
to Bicycle
*GPS will be optional upon NB-IoT positioning feature available 2018Q1
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
16
Cost Saving $4.88M/year
Connection
Service
Agile Controller
Elevators
IoT Platform
AR IoT Gateway
Connectivity management, data pre-analysis,
open API
3G/4G/eMTC coverage and
bandwidth assurance
Data preprocessing, protocol adaptation,
local customized APP, policy execution …
Gateway management: remote fault diagnosis,
network resources dynamic allocation$ 1M
Traditional
IoEL$ 4.94M
$ 4.13M
$ 2.47M
Elevator Manufacturer Business
$ 7.54M
Accessories
Maintenance
Telco Business Modeling
39%
Maintenance:New Opportunity of Growth
Telco Addressable Market by 2020
$6.5
ARPU$0.7
ARPU
14M elevators48%
40%
Market Segments Allocation
Equipment
Maintenance by 3rd party
Manufacturer MaintenanceChallenges
12%
Connected Elevator: Predictive Maintenance as a Service
(10K elevators maintained in this case)
BicycleWhite GoodsFire DetectionGasElectricityWaterLightingParking Elevator
17
Partner Eco-System
18
Cooperate with Global Cultivate with Local
Huawei’s ‘Glocal’ Ecosystem Supporting Telco IoT Business
EC-IoT
74
IoV
45
Smart Home
204
NB-IoT
466
790
Vertical Partners: 343
Device Partners: 44740
34
50
154
231
235
23
22
* Data up to May. 31, 2017
Global Partner
…………
Local Partner
89
57
2329
6
Home IoT Partners
19
711
26
11
45EC-IoT & IoV Partners
66
50 48
31
5037 32
152NB-IoT Partners
ProgramEuropean
Partners
Global
Partners
19
NB-IoT Ecosystem is Taking Off in Full Speed
240+ NB-IoT partners from 20+ industries
Smart Water Smart Gas Smart Grid Smart Parking
Smart BicycleSmart Building White Goods Health Care Smart Industry
Street LightingTracking & Tracing MonitoringAgriculture
ProgramEuropean
Partners
Global
Partners
20
,,
Effective Partners Cooperating with Huawei in European Market
https://ww w.q-free.com/
http://www.nedapidentification.com/
AOD Group
http://intelilight.eu/company/
http://www.aodgroup.net/en/about/
Gas MeterElectricity MeterWater / Electricity Meter Gas Meter
http://www.janzce.pt/https://www.kamstrup.com/ https://www.fiorentini.com/ http://www.china-goldcard.com/en/
http://www.lighting.philips.com/
http://www.kone.com/en/
www.schindler.com/
ProgramEuropean
Partners
Global
Partners
21
Joining Huawei’s IoT Developer Community
http://developer.huawei.com/ict/en/site-oceanconnect
Developer
Guide
Demos
API
reference
Develop
kits
ProgramEuropean
Partners
Global
Partners
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limitation, statements regarding the future financial and operating results, future product
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Thank You.
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