Featured industry in IOT!

Featured industry in IOT!

In IOT, where things can be connected via the Internet, there are various ways to use them depending on the type of industry and perspective. In the future, it will be introduced from industries that are easy to use and will become more convenient. Introducing articles in the industries that are attracting attention.

Eight "growing industries" and four "sluggish industries" are released on IoT
After all, the first place is that industry

Attention is transportation, entertainment, manufacturing
Since 2017, the IoT business has been introduced as a full-scale initiative. The government has also announced the concept of "Connected Industries," and has begun to accelerate efforts not only for one company or industry to connect, but also for an era in which various companies are connected across industries.

Did you know that there are some industries where the market size grows by accelerating IoT efforts and some industries where the market size does not grow unexpectedly?

First, I would like to focus on the growing industries and explain what areas are expected to have marketability, and then mention the industries where the market is difficult to grow. See Figure 1.

Figure 1 Future forecast of the 2017 IoT-related market

Source: Comprehensive Planning "2017 IoT-related Market Future Forecast" November 2016

This is a chart released in 2016 that forecasts which industry will grow in the domestic IoT market in the last five years. The first group of industries that are expected to grow are the transportation (including automobiles), entertainment, and manufacturing industries. This is followed by logistics, energy, rental and leasing, travel, and information and communications.

I would like to explain what areas should be focused on for each of them, based on the views of the author who is involved in the advisory of various industries and the views based on the actual project trends.

Growing industry (1) Transportation (including automobiles and railways)
Needless to say, the biggest concern in the next three to five years is the emergence of self-driving cars. With the advent of self-driving cars, automobiles will become a "sales business for moving interior spaces."

At the CES (Consumer Electronics Show) held in Las Vegas in January 2018, Toyota Motor Corp. declared that it would "become a platformer of mobility services" rather than an automobile manufacturer, and put businesses in other industries into the cabin. It is also new to remember that we announced the platform model "e-Palette" of a skeleton car that can be brought in.

Therefore, it is expected that the industry related to this car will not only be connected to the passenger compartment, but also to various industries outside the passenger compartment, so the market is expected to grow dramatically in 2020. ..

For Japan, where the automobile industry is a major industrial cluster, it can be said to be an unprecedented opportunity.

Growing industry (2) Entertainment
When we talk about entertainment in IoT, we often get the question "Pachinko?" However, the form of IoT expected in the entertainment industry is the development of a resort-type "smart city," which will be introduced and maintained in earnest in Japan with the enactment of the IR law (Integrated Resort).

The "smart city" here is a commercial complex that integrates a large-scale international conference hall, international exhibition hall, hotel, entertainment / amusement park facility, shopping mall, etc. with a casino.

The point is that there has been a major shift from the conventional smart city centered on energy management to a smart city centered on commerce aimed at maximizing the value of stay experience. It's easy to imagine Marina Bay Sands in Singapore and the casino complex in Macau.

One per square meter of surveillance cameras is installed on the casino floor, and hundreds of surveillance cameras are installed on the entire floor, and personal authentication and security assurance solutions play the role of guards when entering and exiting the casino.

Furthermore, customers will be guided between commercial facilities by displaying advertisements and contents on digital signage linked with smartphones.

In addition, all of them are connected to an integrated network, analysis of customer flow lines linked with location information and optimization of marketing messages are performed, and large-scale IoT throughout the city across multiple buildings and spaces. It is expected that the conversion will be realized. It is predicted that there will be a large market here.

Growing industry (3) Manufacturing
As Japan is said to be a manufacturing nation, it is predicted that the manufacturing industry has great potential as a sense of scale of the IoT market.

There are many clients of major manufacturing industries in the advisory destinations in which the author is actually involved, and the digital twin (which operates with a connected factory and data-centered simulatorable operation to catch up with and overtake the trend of Industrie 4.0 in Germany The number of companies working on IoT has stopped, with the aim of realizing (recreating the movement of factories and products in the physical space in real time in the digital space), improving productivity, and creating a platform for utilizing accumulated data. Absent.

Photo by iStock

The manufacturing industry, which has a long number of parts and a long value chain, is a treasure trove of IoT that must connect various things.

For example, the production process of 3D design work and work that is still analog, maintenance personnel will appear on many lines when trouble occurs, and there is a big gap between normal system and abnormal system, after factory shipment However, it is a characteristic of the manufacturing industry that it provides value by involving various parties, such as having to set up and adjust operations at the customer's site.

Even companies that once invested in FA (Factory Automation) fully adopted and implemented the third platform (mobile, cloud, social, analytics), which has become the main trend of technology used in the business world in the last 10 years. I have never heard of a factory that has realized an environment where it can be operated while collecting, analyzing, and utilizing data smartly.

In the future, it is expected that IoT will be introduced more and more in the areas that realize such smart factories, smart supply and demand adjustment, smart design, follow-up after production and shipping, distribution and billing of acquired data. Will be done.

Growing industry (4) Logistics
Growing industry (6) Rental and leasing
With the advent of the era of self-driving cars, the industry will undergo major changes, and at the same time, the introduction of telematics, which remotely monitors the driving status of automobiles, is rushing.

For example, the Times, which develops a car-sharing service, constantly monitors the driving condition of the driving vehicle, issues warnings regarding sudden braking and sudden departures, and records them. It also incorporates a solution that opens and closes the key remotely when the vehicle starts to be used and when it is returned.

Photo by iStock

By monitoring the usage status of the car, the degree of accident risk can be simulated, and it is possible to optimize the amount of vehicle insurance and operation.

In addition, grasping the operating rate such as where and how much the shared vehicle is used affects the arrangement of vehicles, so the market size is increasing due to the deployment of connected vehicles.

Growing industry (7) Travel (sightseeing) / accommodation
In 2017, the number of foreign visitors to Japan reached 28.69 million. The travel industry sees the visit of foreign tourists to Japan as a big business opportunity like never before, and expectations are rising for attracting foreign tourists to various destinations.

In fact, the number of tourist destinations that provide tourist guidance and customer transfer services linked to Wi-Fi and mobile apps in multiple languages, and tourist information apps linked to location information is gradually increasing.

Here is the industry that is sluggish
On the other hand, the problem is that there are some industries where the size of the challenges and the success of the business and the expansion of the market are not synchronized for the time being.

Specifically, it is predicted that the market size of agriculture, forestry and fisheries, medical / nursing care industry, education industry, resident services and water and sewage will not grow much. Let's individually explain the challenges of the industry and the reasons why the market size is not growing.

Please see Figure 2, which was not introduced in the previous section. Since the definitions of aggregation categories are different, it can be seen that the growing industries tend to have large markets such as manufacturing, automobiles, and logistics, as shown in Fig. 1, excluding households, individuals, and others.

Figure 2 Forecast of demand by utilization field in the CPS / IoT market (Japanese market)

Source: JEITA "Trend Survey on Featured Areas 2017" December 2017

In addition to this, if we look at the growth rate and market size in Fig. 3 below, we can predict that the industry that can be read as the market size will not grow in Fig. 1 will be regressed 10 years after Fig. 1 until 2030. It can be seen that there is a sense of scale and growth rate.

Figure 3 Growth rate by utilization field and 2030 market size (Japanese market)

Source: JEITA "Trend Survey on Featured Areas 2017" December 2017

Based on Fig. 1, I would like to proceed with the explanation based on the suggestions from Fig. 2 and 3.

Slow growth industry (1) Agriculture, forestry, fisheries
The agriculture, forestry, and fisheries industries have been delayed in IT, and are the most neglected areas.

It is easy to misunderstand that the scale will increase because there is a very high growth rate by 2030, but since the current IT and IoT implementation is extremely small, it is predicted that the market scale will not increase as a result. There is.

On the other hand, if you go to a local site, you will see a lot of problems, and you can see that the more depopulated areas are, the more sophisticated and IT-oriented they are, without being aware of the keyword IoT.

In rural areas where it is common for IT companies to not visit or make proposals, although the amount is small, they are making various efforts on their own. In Kochi Prefecture and Amakusa, Kumamoto, steady but steady remote monitoring efforts and automation are being carried out in the management of farms and greenhouses.

Originally, there are big opportunities in this area of ​​the primary industry, but I would like to expect efficient development.

Slow growth industry (2) Medical / long-term care
Both Figures 1 and 2 and 3 will have a reasonable scale after 2020, but it is this industry that has not been able to stand up until then.

In the same industry, which is labor-intensive and has a lot of consideration and restrictions on personal information, and it is difficult to make good use of the data acquired by IoT, PHR (Personal Health Record) is collected by wearable devices and sensor devices for individuals. There is an urgent need for the development and monetization of PDS (Personal Data Store), which utilizes and proposes to.

In addition, at nursing care sites, it is expected that services such as automation, assistance support devices, and monitoring that do not put a burden on the site due to lack of manpower will become widespread.

In addition, it has been pointed out that not only is it essential to disseminate information by displaying information and installing signage for the 2020 Olympics / Paralympics, but there will be a shortage of accommodations.

In order to enhance services such as so-called private lodgings represented by AirBnB, remote locking and unlocking solutions and ensuring safety and security with surveillance cameras are expected to grow as IoT in this industry.

Growing industry (8) Information and communication
In the information and telecommunications industry, which is the side that proposes IoT solutions, the number of introduction projects that are closely related to the actual site will naturally increase, breaking away from the efforts within the industry so far.

In addition, toward 2020, low power consumption wide area networks such as LPWA (Low Power Wide Area) and NB-IoT (Narrow Band-IoT) suitable for IoT, and next-generation mobile phone 5G services are beginning to be seen.

It is expected that not only proposals to other industries but also IoT efforts such as visualization by sensor networks and remote monitoring will accelerate in the information and communication industry.

In such an industry where the IoT market is large, the value chain is long and there are many parts and stakeholder. In addition, we are pursuing how to digitally simulate the analog world where the state and position change in real time, absorb the output gap between customers and companies, and realize optimal operation and value provision. It can be said that there is a lot of growth potential in the industry.

In addition, it can be said that special demand for the 2020 Olympics / Paralympics is pushing up the entire related industry.

Here is the industry that is sluggish
On the other hand, the problem is that there are some industries where the size of the challenges and the success of the business and the expansion of the market are not synchronized for the time being.

Specifically, it is predicted that the market size of agriculture, forestry and fisheries, medical / nursing care industry, education industry, resident services and water and sewage will not grow much. Let's individually explain the challenges of the industry and the reasons why the market size is not growing.

Please see Figure 2, which was not introduced in the previous section. Since the definitions of aggregation categories are different, it can be seen that the growing industries tend to have large markets such as manufacturing, automobiles, and logistics, as shown in Fig. 1, excluding households, individuals, and others.

Figure 2 Forecast of demand by utilization field in the CPS / IoT market (Japanese market)

Source: JEITA "Trend Survey on Featured Areas 2017" December 2017
In addition to this, if we look at the growth rate and market size in Fig. 3 below, we can predict that the industry that can be read as the market size will not grow in Fig. 1 will be regressed 10 years after Fig. 1 until 2030. It can be seen that there is a sense of scale and growth rate.

Figure 3 Growth rate by utilization field and 2030 market size (Japanese market)

Source: JEITA "Trend Survey on Featured Areas 2017" December 2017
  Based on Fig. 1, I would like to proceed with the explanation based on the suggestions from Fig. 2 and 3.

Slow growth industry (1) Agriculture, forestry, fisheries
The agriculture, forestry, and fisheries industries have been delayed in IT, and are the most neglected areas.

It is easy to misunderstand that the scale will increase because there is a very high growth rate by 2030, but since the current IT and IoT implementation is extremely small, it is predicted that the market scale will not increase as a result. There is.

 
On the other hand, if you go to a local site, you will see a lot of problems, and you can see that the more depopulated areas are, the more sophisticated and IT-oriented they are, without being aware of the keyword IoT.

In rural areas where it is common for IT companies to not visit or make proposals, although the amount is small, they are making various efforts on their own. In Kochi Prefecture and Amakusa, Kumamoto, steady but steady remote monitoring efforts and automation are being carried out in the management of farms and greenhouses.

Originally, there are big opportunities in this area of ​​the primary industry, but I would like to expect efficient development.

Slow growth industry (2) Medical / long-term care
Both Figures 1 and 2 and 3 will have a reasonable scale after 2020, but it is this industry that has not been able to stand up until then.

In the same industry, which is labor-intensive and has a lot of consideration and restrictions on personal information, and it is difficult to make good use of the data acquired by IoT, PHR (Personal Health Record) is collected by wearable devices and sensor devices for individuals. There is an urgent need for the development and monetization of PDS (Personal Data Store), which utilizes and proposes to.

In addition, at nursing care sites, it is expected that services such as automation, assistance support devices, and monitoring that do not put a burden on the site due to lack of manpower will become widespread.

Slow growth industry (3) Finance
The IoT, which is often interpreted as having a close relationship with the manufacturing industry, tends to be perceived as not having a significant relationship with the financial industry.

Therefore, the growth of the market scale is not remarkable in Fig. 1, but a sense of scale is expected in Fig. 2 and 3.

Introduction of UBI (Usage Based Insurance) that flexibly changes insurance premiums by monitoring the usage status of vehicles and equipment, authentication of IoT devices by blockchain, provision of flexible payment methods according to information from sensors, etc. Has great expectations for the financial industry.

Photo by iStock
In the future, it is expected that the market scale will expand as the study of IoT as a total business model progresses rather than the independent study of IoT and finance as finance.

Slow growth industry (4) Resident services and water and sewage
Looking around the entire public sphere, as shown in Figures 2 and 3, the market size is expected to be appropriate, but it is not expected that the market size will grow significantly for IoT-based resident services and water and sewage systems.

The reason for this is that although various services such as watching over the elderly living alone, grasping the location information of the free route bus, and predicting arrival are being considered, in any case, high charges cannot be considered for the resident service, and as a result, it is large. Because no investment is expected.

 
As for water and sewage, efforts to improve the efficiency of equipment maintenance by using sensors have begun, but it is limited to aging equipment and it is not expected that large IoT investment will occur for the time being.

Even in an industry with many problems like this, if the current market is too small or the budget available for IT / IoT investment is extremely small, it can be said that the market is unlikely to grow.

* * * * *

This time, from various materials, experience cases actually encountered in advisories to major companies and discussions on proposals, and experiences of visiting dozens of places for lectures and advisories to local governments, we matched the issues in the actual field. I have been interpreting and explaining.

However, it is expected that the investment amount and the area to be invested will change significantly between the forecast up to the 2020 Olympics / Paralympics and after that. It will be necessary to identify future trends.

However, for the time being, labor saving and the realization of digital twins utilizing IoT and AI are required at various sites.

In Japan, where the population is declining, in the future, without being confused by the market size and growth potential mentioned above, we will improve the introduction efficiency by creating a common platform by industry and region, and devise ways to solve problems. Is expected.