Machine-to-Machine (M2M) Communication Betty XU Nov 27, 2014

It’s the Internet of Things 50 Billion Things will be connected on the web by 2020, changing the way we live and do business. Forbes, “Gartner Top 10 Strategic Technology Trends.” October 23, 2012

Agenda Introduction Motivation Technology Benefits Growth Challenges

Introduction Communicate among machines, sensors, devices or “things” Over wired or wireless communication network No human intervention whilst devices are communicating end-to-end

Motivation Efficiency & Productivity Mature Technology Lower cost Wireless Communication (e.g. 4G) Rise of Cloud Lower cost Electronic devices Connectivity Regulatory Mandates

Technology M2M System Architecture Layer Key Components Functions Application Layer Fleet Management/Health Care/Retail Business Intelligence Management Layer Service Management, OSS/BSS/NMS Data Analysis Communication Layer WiMax/2G/3G/LTE Data Transmission Sensing Layer M2M device with Camera; RFID, GPS, Sensors & Actuators Data Collection

Technology Source: ECN 2012

Sensing - Data Collection Source: Harbor Research

Communication - Data Transmission

Communication - Data Transmission Access Network Wired Solution - dedicated cabling between sensor and gateway (E.G. cable, xDSL, PLC, optical, etc.) Wireless Capillary Solution - short-range link (E.G. Wi-Fi, RFID, Bluetooth, WLAN, ZigBee, etc.) Wireless Cellular Solution - cellular link (E.G. GSM, GPRS, EDGE, 3G, LTE-M, WiMAX, etc.)

Communication - Data Transmission Source: Harbor Research

Communication - Data Transmission Gateway Connect access and core networks Network address translation Packet fragmentation/defragmentation Core Network Connect to computer system IPv6-enabled Internet

Management - Data Analysis Data Assessment Enterprise software application Standalone system Response Automate a business process by automating the flow of data Right data, right place, and right way Example: Data Normalization - Extract data and convert into standard format Rules Engine - Apply rules to data for modelling Device intelligence - Add intelligence to device for control

Cloud – Scalability, Flexibility & Security

End-to-End Architecture

End-to-End Communication Source: Stratecast 2010

Applications Healthcare Utilities Transportation Manufacturing Retail Telemedicine & home healthcare Emergency services management Utilities Remote meter reading Energy usage and optimization Street light management Transportation Navigation and routing Route optimization Fleet Management Manufacturing Remote Monitoring Remote asset management Prototype testing Retail Stock Control POS / Vending Machine Digital signage Natural Resources Water and animal control Environment monitoring at sea

Benefits Increase operational efficiencies Streamlined delivery processes Greater control and management of assets Better decision-making Identify critical situations Sustainability Generate new revenue streams Improve Customer experience etc...

M2M is in a growing trend... Connections Device Revenue Global M2M connections reached 195 million in 2013, growing at almost 40% per year (38% CAGR) M2M connections now account for 2.8% of all global mobile connections, double the 1.4% share recorded in 2010 Device 12.5 million M2M-capable devices by 2020 Revenue 23 percent annual growth rate, rising from $121 billion in annually derived revenue in 2012 to become a $948 billion business by 2020 (GSMA Intelligence 2014)

M2M is in a growing trend... Source: Berg Insight 2012

Challenges Lack of universal standards Network Scalability Large, distributed networks Congestion Complex data management Low latency and high reliability Power consumption of M2M devices Fragmented value chain

Reference S.Kechiche, D.George and N.Jain, "From concept to delivery: the M2M market today ", GSMA Intelligence, London, UK, Feb.2014 J.Easwaramony, "APAC M2M Outlook", Frost & Sullivan, New York, June.2011 T.Ryberg, "The Global Wireless M2M Market", Berg Insight, Sweden, April.2012 M.Cullinen, "Machine to machine technologies: unlocking the potential of a $1 trillion industry", The Carbon War Room, 2013 A.Maedaer, P.Rost and D.Staehle, "The Challenge of M2M Communications for the Cellular Radio Access Network", EuroView2011, 2011

Q&A

Appendix Link for the video on YouTube: https://www.youtube.com/watch?v=R2MxwBcOIpE