GSMA Announces the Proliferation of Connected Devices in China Will Be Worth More than US$700 Billion in 2020

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• Publié par: gsm-conference-limited
• Nombre de lectures: 34
• Langue: English

Extrait

GSMA Announces the Proliferation of

Connected Devices in China Will Be Worth

More than US$700 Billion in 2020

PR Newswire

SHANGHAI, June 21, 2012

- Machine-to-Machine (M2M) Connectivity Will Drive Significant Growth, Cost

Reductions and Efficiencies Across the Automotive, Building and Energy

Industries

SHANGHAI

,

June 21, 2012

/PRNewswire/ -- The GSMA, in partnership with

Machina Research, today announced that the business impact[1] from the

growth of connected devices in

China

will increase six fold from

US$116 billion

in 2012 to

US$707 billion

in 2020, fostering the Connected Life. Connected

devices, including smartphones, tablets, consumer electronics and so-called

machine-to-machine (M2M) connectivity, are driving innovation and

advancement in key industries across

Asia Pacific

.

China

's growth in this

segment leads all other countries worldwide as its economy continues to

develop rapidly, backed by a vibrant and growing technology industry.

"

China

is not only the world's largest mobile market, with more than one billion

total mobile connections, but is using this to its advantage by creating new

applications, products and services that can improve people's daily lives and

advance its economy," said Michael O'Hara, Chief Marketing Officer, GSMA.

"

China

has positioned mobile technology at the centre of its expansion, from a

booming car industry to the rapid development of new 'smart' cities, creating

efficiencies and consumer benefits through cross-industry collaboration."

Connected vehicles will facilitate a range of new business models in

China

. For

example, the ability to locate and access vehicles and implement real-time

charging will spur the growth of car share schemes and hire/purchase

arrangements. Separately, built-in connectivity is predicted to become a must-

have for consumers in 2020, driven in part by the increasing global demand for

plug-in electric vehicles. Machina Research estimates that together these two

areas alone represent a

US$198 billion

business impact for

China

's automotive

ecosystem in 2020.

The growing adoption of connected private building security – notably alarms,

CCTV and intercoms – is also fuelling a huge market opportunity across the

region. In

China

, the value of connected security systems, based on the cost of

providing equivalent levels of cover without connectivity, will be worth

US$62

billion

in 2020.

The third major Chinese industry predicted to benefit greatly from the

Connected Life is utilities and essential services, which will be worth

US$37

billion

in 2020. This market is fuelled by the need to reduce energy usage by

both consumers and businesses, an area in which smart metering will play a

vital role.

Matt Hatton, Director, Machina Research said: "There is little doubt that the

biggest impact in the region will be felt in

China

. As its economy continues to

grow,

China

is increasingly turning to technological solutions to address some of

the challenges caused by this growth, whether it is the use of smart meters to

manage electricity demand, or road monitoring solutions to manage congestion

caused by growing car ownership. The Chinese government has demonstrated

its willingness to introduce innovative M2M technologies and embrace the

Connected Life for the benefit of its citizens."

The Business Impact of the Connected Life Across Asia Pacific

The region's second leading Connected Life market,

Japan

will unlock a

business impact from connected devices of

US$344 billion

in 2020. While

automotive and building security are two of the largest 'connected' industries in

Japan

, the leading segment in 2020 will be assisted living. This reflects

Japan

's

huge requirement to find new solutions to care for its aging population. As a

result, enabling better care for older people at home, including managing

medications and people-tracking devices, will provide a

US$63 billion

business

impact for

Japan

in 2020.

Meanwhile,

India

will see a business impact from connected devices of

US$128

billion

in 2020, equating to 18 per cent of

China

's Connected Life opportunity.

India

's two largest connected industries, connected vehicles and intelligent

buildings, are consistent with

China

, but development factors such as the

comparative costs of M2M connectivity versus wages in

India

mean that

manual labour will continue to be used in place of technology-led solutions up

to 2020.

Health applications also dominate in many countries across the region including

Australia

,

India

and

Pakistan

, where mHealth services will be ranked in the top

three Connected Life applications in 2020. This is spurred by the need to

expand health services to the mass market of consumers, across a widespread,

fragmented and predominately rural population base. However, in highly

developed countries, such as

Singapore

, mobile technology is being adopted to

address issues created by a growing, dense urban population, with smart cities

and transportation creating a business impact worth nearly

US$1 billion

in

2020.

For more information on the GSMA Connected Life programme, please visit

www.gsmaconnectedlife.com.

Notes to Editors:

[1] The

US$707 billion

business impact of the Connected Life in

China

in 2020 is

forecast to be worth

US$393 billion

in revenues (e.g. from the sale of

connected devices and services, and revenues from related services, such as

pay-as-you-drive car insurance), and

US$314 billion

in 'cost reduction and

service improvements' (e.g. smart meters removing the need for manual

meter readings; and service improvements, such as clinical remote monitoring

for patients with chronic illnesses).

The countries in

Asia Pacific

to realise the greatest business impacts of the

Connected Life are:

Country

Overall Business Impact in

2012 (in US dollars)

Overall Business Impact in

2016 (in US dollars)

Overall Business Impact in

2020 (in US dollars)

1. China

116 billion

365 billion

707 billion

2. Japan

96 billion

212 billion

344 billion

3. India

23 billion

66 billion

128 billion

4. South

Korea

39 billion

72 billion

98 billion

Total Asia

Pacific

347 billion

896 billion

1.6 trillion

North

America

277 billion

703 billion

1.2 trillion

Europe

286 billion

637 billion

1.1 trillion

Latin

America

62 billion

148 billion

272 billion

Africa

19 billion

55 billion

114 billion

Middle East

19 billion

53 billion

109 billion

The top industries to benefit from the Connected Life in these four countries

are:

Country

Industry

Business Impact by

2012 (in US dollars)

Business Impact by

2016 (in US dollars)

Business Impact by

2020 (in US dollars)

China

1. Connected Car

12 billion

62 billion

149 billion

2. Private Building

Security

10 billion

29 billion

62 billion

3. Auto

Lease/Rental

Vehicles

2 billion

10 billion

49 billion

4. Smart Metering

2 billion

16 billion

37 billion

Japan

1. Assisted Living

2 billion

22 billion

63 billion

2. Connected Car

7 billion

24 billion

36 billion

3. Private Building

Security

8 billion

16 billion

21 billion

India

1. Connected Car

1 billion

6 billion

18 billion

2. Private Building

Security

3 billion

7 billion

14 billion

3. Telemedicine

1 billion

5 billion

13 billion

South

Korea

1. Connected Car

2 billion

7 billion

11 billion

2. Private Building

Security

6 billion

9 billion

10 billion

3. Auto Insurance

100 million

2 billion

5 billion

Total

Asia

Pacific

1. Connected Car

29 billion

127 billion

273 billion

2. Private Building

Security

32 billion

72 billion

127 billion

3. Auto

Lease/Rental

Vehicles

3 billion

20 billion

91 billion

All data provided by Machina Research (www.machinaresearch.com)

About the GSMA

The GSMA represents the interests of mobile operators worldwide. Spanning

more than 220 countries, the GSMA unites nearly 800 of the world's mobile

operators, as well as more than 200 companies in the broader mobile

ecosystem, including handset makers, software companies, equipment

providers, Internet companies, and media and entertainment organisations.

The GSMA also produces industry-leading events such as the Mobile World

Congress and Mobile Asia Expo.

For more information, please visit www.gsma.com or Mobile World Live, the

online portal for the mobile communications industry, at

www.mobileworldlive.com.