GLOBAL M2M NETWORK SECURITY MARKET 2015-2019 TECHNAVIO.COM

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Table of contents

PART 01:

PART 02:

PART 03:

PART 04:

PART 05:

PART 06:

PART 07:

Executive summary

5

Highlights

5

Scope of the report

6

Market overview

6

Market research methodology

7

Research methodology Economic indicators

7 7

Introduction

8

Key market highlights

8

Market description

10

M2M ecosystem M2M applications M2M application architecture Sensors: A major part of M2M Components of M2M network security

10 12 13 14 15

Market landscape

17

Market overview Product life cycle analysis Global M2M network security market Five forces analysis

17 18 19 20

Market segmentation by end user

PART 08:

27

Segmentation of global M2M network security market by geography 2014-2019 27 Europe 27 North America 28 APAC 28 Latin America 28 MEA 29 Market attractiveness by geography 29

PART 09:

PART 10: PART 11: PART 12: PART 13: PART 14: PART 15:

PART 16:

21

Segmentation of global M2M network security market by end users 2014-2019 21 Global M2M network security market in utilities sector 22 Global M2M network security market in automotive sector 23 Global M2M network security market in healthcare sector 24 Global M2M network security market in consumer electronics sector 25 Global M2M network security market in intelligent buildings sector 26

Geographical segmentation

PART 17:

PART 18:

Buying criteria

31

Buying criteria for M2M network security Key development: M2M network security

31 32

Market drivers 33 Impact of drivers 35 Market growth inhibitors 36 Impact of drivers and market growth inhibitors 38 Market trends 39 Vendor dynamics 41 Vendor matrix Description of major vendors Vendor highlights Other prominent vendors

41 44 45 47

Key vendor analysis

48

Cisco Systems Gemalto Kore Wireless Numerex PTC (Axeda)

48 55 60 64 68

Appendix

74

List of abbreviations

74

Explore Technavio

76

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List of exhibits

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2014 MARKET SIZE

2019 MARKET SIZE

$410.6

$1.22

MILLION

BILLION

2014 MARKET GROWTH RATE

2019 MARKET GROWTH RATE

19.8%

28.1%

PART 01:

Executive summary

Highlights 

Technavio estimates that the global M2M network security market will grow at a CAGR of 24.5% during the period 2014-2019.



Europe is one of the major revenue contributors in the market in terms of geography, followed by North America, APAC, Latin America, and MEA.



Technavio’s believes that M2M network security will have maximum traction in APAC, Latin America, and MEA because of increasing adoption of smart metering, telematics, and m-Health services.



In 2014, the utility sector was the largest revenue generating sector in the market

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Market overview This report covers the present scenario and growth prospects of the global M2M network security market for 2015-2019. The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors operating in the market. To calculate the market size, the report considers the revenue generated from the sales of M2M network security products, which include embedded SIMs and gateways. The market size is calculated on the basis of the following segments: PART 02:

Scope of the report

By end users 

Utilities



Automotive



Healthcare



Consumer electronics



Intelligent buildings

By regions 

Europe



North America



APAC



Latin America



MEA

The market is fragmented with the presence of many small and large vendors. A detailed product and feature comparison for the key leading vendors is provided in the report. In addition, the report discusses the major drivers influencing market growth and the challenges faced by vendors and the market as a whole. It also examines key emerging trends and their influence on current and future market scenarios.

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Research methodology This Technavio report is based on the synthesis, analysis, and interpretation of information about the global M2M network security market collected from specialized sources. Technavio analysts have derived insights using a mix of primary and secondary research with an aim to provide a holistic picture of the market.

PART 03:

Market research methodology

Primary research • • •

Vendor briefings Interviews with industry experts and centers of influence Telephone and online surveys

• •

Drivers, challenges, and trends Vendor analysis

Secondary research • • • •

Proprietary tools and databases Company reports and publications Webinars and podcasts Industry journals and publications

• •

Market size and market share Statistical models

Qualitative analysis

Top-down approach

Quantitative analysis

Bottom-up approach

Economic indicators Technavio has conducted a detailed study of global economic conditions and other economic indicators to assess their impact on current global M2M network security market conditions and to make informed predictions about future market scenarios.

Microeconomic indicators

Mesoeconomic indicators

Macroeconomic indicators

Data collection and analysis

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Key market highlights Key customer segments

Key market drivers



Utilities



Increase in number of connected devices



Automotive



Need to improve quality of protection



Healthcare 

Increase in government initiatives



Increased usage of M2M in enterprises

PART 04:

Introduction





Consumer electronics

Intelligent buildings Key market trends

Key market challenges



Technical defects



Increased security threats



Complexity in deployment



Intense vendor competition



Increase in number of cyberattacks on M2M networks



Emergence of M2M in smart cities



Enhanced healthcare facilities with M2M



Increase in demand for M2M in consumer electronics

M2M enables machines to connect and securely interact over a network. M2M communications help organizations achieve higher revenue margins, offer flexibility in using devices with end-to-end solutions, have low energy consumption, and reduce risk of data loss. They also help ensure the security of connected devices and data by providing remote access, 24/7 monitoring, and automated emergency response. M2M communications enable data sharing between machines in real time. The sensor attached to the machine captures the event and deliver it through a secure network (wireless or wired); it is then received on the other side where it initiates the necessary

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actions. M2M works efficiently because of the interconnection between embedded software, hardware devices, communication services, and IT services, which helps in efficient remote monitoring and management of numerous interconnected devices. A number of second-generation (2G), third generation (3G), and fourth generation (4G) networks are being provided by various service providers, so the threat to data security has increased. Data transmission between devices has become efficient with the help of communication networks. Also, interaction between people and devices has become efficient, which is important for decision-making process. The rise in incidences of sophisticated and complex threats, including hacking activities, is likely to affect M2M communications. M2M network security solutions comprise hardware, software products, and managed security services that are used to monitor, detect, and prevent unauthorized access, misuse, or malfunction, or attempts to disable/destroy the M2M network. M2M network security is concerned with protection at the device level in the form of embedded SIMs and at the network level in the form of gateways. Securing an organization's network is of paramount importance as cyber-attacks are becoming increasingly sophisticated with time. The adoption of M2M connections is set to grow rapidly in the coming two to three years, witnessing an increase in network security investments.

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M2M ecosystem The M2M ecosystem includes hardware, software, communication applications, and additional services. These solutions are easily integrated and can be customized with business applications to increase operational efficiency. The stakeholders involved in the M2M ecosystem are: PART 05:

Market description



Hardware and semiconductor vendors



Network infrastructure vendors



Niche providers



Large system integrator vendors

The M2M ecosystem is large, complex, and fragmented. Currently, the market is in stage three, where application knowledge is still inadequate but fragmented. Vendors have started offering automated solutions for optimum interconnection and communication.

Value chain participants Value chain participants in M2M ecosystem

Chip makers

Module suppliers

MNOs

Service enablers

End users

Business solution providers

Source: Technavio, 2015

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Chip makers M2M chips are tiny low-power devices that support a wide range of frequency bands. As machines are priced at a low cost, vendors should ideally offer chips at $1-$2 and provide service charges at less than $10 annually.

Module suppliers Module suppliers provide modules that enable M2M communications over wireless networks. Some modules, such as Gemalto's, support GSM, CDMA, and LTE-based cellular networks. These modules have fewer complexities in integration and M2M implementations. The modules are embedded with SIMs, which are used in device authentication. Embedded SIMs are increasingly replacing removable SIMs in M2M communications owing to their many advantages such as not having to insert or remove a SIM from the module over the machine's lifetime. Embedded SIMs remove the dependency of customers on mobile operators. They also permit operator switching if required at the end of the contract.

OEMs OEMs provide the final M2M products/devices such as surveillance systems, vending machines, e-readers, and gaming consoles. These manufacturers have always operated with low margins and view M2M as a source of gaining a significant advantage in the market. Other than providing a new revenue stream for OEM players, these M2M devices and applications also enhance customer experience.

MNOs MNOs serve as carriers for M2M applications. In the past, MNOs were passive players and their role was limited to providing airtime capacity for end users. However, more recently, the global M2M market has witnessed certain MNOs moving up the value chain and aggregating devices with solutions from different players, such as OEMs and application providers, and supplying them to end users.

Service enablers Service enablers act as a liaison between MNOs and end users. They provide a platform that can be used by MNOs to provide services such as provisioning, B2B gateways, and resource management.

Business solution providers Business solution providers, primarily IT companies, help adopt and implement M2M applications across different industry verticals. These providers help end users

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effectively manage any business process change that arises from the deployment of an M2M application.

End users End users comprise government institutions that adopt smart grids and other smart management systems, and organizations across sectors such as healthcare, automotive, transportation, retail, logistics, and consumer electronics.

M2M applications Manufacturing

Asset management

Security

Smart home

Home health Monitoring alarm

monitoring

Retail

ATMs

system Smart sensors

Video surveillance

Industrial controllers

Video analytics

Data collection

Building alarms

Supply chain POS delivery data

Faculty

Card payments

management

Tank monitoring

Accounts balance

Diagnostics for print

Stock information

services

Consumer Healthcare

Utilities

Transportation

electronics Monitoring and control

Smart body sensor

Smart meters

Fleet management services

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Consumer Healthcare

Utilities

Transportation

electronics

Gaming devices

TVs

Remote patient monitoring

Central server

Electric vehicle

Track performance

Industrial smart

Cargo management

grid

Communication

Charging

with smartphone

infrastructure

GPS tracking

Fuel consumption

M2M application architecture In the application domain, M2M applications and client applications are interlinked. The M2M application domain includes smart energy, smart meters, and smart transport. Here, information is transferred from one application to another. This information is shared with the network domain, which includes core networks, M2M area networks, and access networks. It also encompasses satellite and cellular M2M. Core networks comprise communication networks such as GPS, ETSI, TISPAN, and EPC; access networks include PLC, satellite WLAN, GERAN, and UTRAN; M2M area networks include PLC, ZigBee, and M-BUS. These networks exchange information and forward it to a router or gateway. The information is then transferred to the connected devices, such as smart meter and smart grid. M2M application architecture

Application domain

Network domain

M2M domain

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Sensors: A major part of M2M M2M works because of the connectivity between sensors, devices, and people. Sensors in various locations collect data on the position of an object, room temperature, humidity/moisture in the environment, sound and vibration in the workplace, chemicals and gases in industrial settings, water flow and leaks in homes and businesses, gas leaks, object tilting, and optical light. These inputs are digitized and placed on networks such as ZigBee, Bluetooth, RFID, NFC, Wi-Fi, 4G, 3G, 2G, and LTE-advanced networks. These inputs integrate people, data, processes, and systems for better decision making. Thus, M2M uses sensors for the following: 

Home: Maintaining security, feeding pets, activating alarms in case of smoke/fire, controlling washers/dryers, monitoring energy, and controlling temperature and humidity



Healthcare: Patient care, monitoring health, remote diagnostics, emergency alerts, monitoring equipment, monitoring the elderly and infirm, hospital hygiene, and food safety



Transport: Routing traffic, vehicle security, smart parking, shipping, public transport, airlines, and trains, tracking locations, and maintaining the supply chain



Cities: Waste management, electricity distribution, surveillance, utilities, and emergency services



Infrastructure: HVAC, security, lighting, emergency alerts, structural integrity, and occupancy

In addition, connected devices and services have combined applications across industries and domains. 

Healthcare + smart home

In 2014, it was estimated that 40 million adults aged 65 and above live alone in the US, Canada, and Europe. Thus, smart homes help in remote monitoring. In an emergency, alerts are generated and sent to hospitals and family members. 

Smart buildings + mobility

The energy used by commercial and industrial buildings in the US accounts for 50% of the nation's greenhouse gas emissions. M2M sensors can help to control temperature and lighting, and maintain energy efficiency. 

Transportation + smart cities

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In San Francisco, 20%-30% of traffic congestion is because of people hunting for a parking spot. Wireless sensors in parking lots help in directing drivers to empty parking spaces. According to Technavio analysis, the adoption of sensors is expected to affect the revenue flow in the market during the forecast period.

Components of M2M network security Embedded SIMs M2M growth is largely dependent on an interoperable SIM architecture. An embedded SIM, unlike the traditional removable SIM, is embedded into the M2M device at the time of manufacture; it can then be used for remote over-the-air provisioning. The embedded SIM uniquely identifies the machine and ensures secure connectivity. It provides authentication and encrypting information, among other functions.

Modular M2M gateway The specially designed router for M2M applications secures a private network with a range of capabilities such as firewall, VPN, and intrusion prevention. Most routers support 4G LTE and ZigBee speeds. This type of router helps companies expand their networks into remote locations in a secure manner for various applications. The primary security functions of modular M2M gateways are: 

VPN



Firewall



IPS



GRE tunneling



SSL



AES

Role of embedded SIMs and modular M2M gateways in the M2M application process

Wireless modules with embedded SIMs

Modular gateways

Cloud

Organization’s IT landscape

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The embedded SIM identifies the machine and facilitates over-the-air remote provisioning. The modular gateway captures data in a secure manner from the various sensors attached to the machines through wireless networks. It then relays the information to the cloud where the information can be accessed by the organization in real time.

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Market overview Overview of global M2M network security market Utilities Automotive End users

Consumer electronics

PART 06:

Market landscape

Healthcare

Intelligent buildings

Global M2M network security market North America Europe Geography

APAC

Latin America MEA

Source: Technavio, 2015

Currently, the global M2M network security market is in the development stage. The increase in adoption of IoT and M2M applications by enterprises and individual consumers has led to an increase in the need for network security solutions. Hence, the market is expected to witness significant growth during the forecast period. The global M2M network security market can be categorized on the basis of end user into five segments: utilities, automotive, healthcare, consumer electronics, intelligent buildings, and others. The others end-user segment includes various sectors such as retail, transportation, logistics, financial services, and manufacturing, which are likely to increase the adoption of M2M network security solutions during the forecast period. The M2M network security market in APAC, MEA, and Latin America is expected to grow rapidly because of the rise in the installation of smart homes, smart meters, and increase in disposable income, enabling end users to buy advanced products. The markets in North America and Europe are expected to grow steadily.

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Product life cycle analysis

Market value

Product life cycle of M2M network security

M2M network security

Time Development

Growth

Maturity

Decline

Source: Technavio, 2015

As a result of the increase in the use of the IoT and M2M applications by enterprises, data transmission between smart devices and end users has also increased. The threat of network attacks has also increased, which will lead to increased adoption of M2M network security solutions during the forecast period. Currently, M2M network security is in the development stage, but it is expected to grow rapidly with the high adoption of the IoT. Also, as technology advances, new vendors are expected to enter the market with competitive network security solutions.

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Global M2M network security market Market size and forecast According to Technavio analysis, the global M2M network security market was valued at $410.6 million in 2014 and is likely to reach $1,226.5 million by 2019, growing at a CAGR of 24.5%. Global M2M network security market 2014-2019 ($ millions) 28.1%

1,400

26.4%

1,200 1,000

22.7% 19.8%

30%

24.2% 25%

21.0% 20%

800 15% 600 10%

400

5%

200 410.6

496.8

609.6

757.2

957.2

1,226.5

2014

2015

2016

2017

2018

2019

0

0% Revenue

Growth rate

Source: Technavio, 2015

Market analysis The global M2M network security market is expected to witness significant growth during the forecast period because of the growing need for a high level of network security in M2M services and technology. With the increase in the number of attacks on M2M devices and threats from hackers, the need for advanced security solutions is growing rapidly. Further, with the increase in the amount of critical and confidential data being transferred via M2M devices, the adoption of network security solutions is increasing enormously among enterprises and network service providers. Increased adoption of M2M devices in connected health and connected car services requires security for data transmission, and the rapid growth in cellular M2M is likely to enhance the overall market revenue significantly during the forecast period. Cellular M2M offers the ability to connect devices such as electric meters or mobile assets with M2M applications. In addition, incorporation of mobile technology into the IoT is expected to fuel the market growth.

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Five forces analysis Five forces analysis Bargaining power of suppliers Low The presence of numerous suppliers in the market makes the bargaining power of suppliers low.

Threat of substitutes

Threat of rivalry

Low

High

Bargaining power of buyers Moderate

There are no direct substitutes for M2M network security solutions. However, the presence of traditional security solutions poses a threat to the market.

There are numerous vendors for M2M network security products and services, which makes the threat of rivalry high.

Though there are numerous vendors in the market, the availability of advanced and customized solutions is limited. Therefore, the bargaining power of buyers is moderate.

Threat of new entrants Moderate The market has high scope for growth. Therefore, it is expected to witness the entry of new vendors. However, the presence of prominent players in the market is expected to ensure that the threat of new entrants is moderate.

Source: Technavio, 2015

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Segmentation of global M2M network security market by end users 2014-2019 In 2014, the utilities sector held the largest share in the global M2M network security market with 37.5%. The automotive sector followed with 26.2%, the healthcare sector held 17.6%, consumer electronics sector held 13.1%, intelligent buildings sector held 1.9%, and the others segment made up the remaining 3.6%. Segmentation of global M2M network security market by end-users 2014-2019

PART 07:

Market segmentation by end user

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Others Intelligent buildings Consumer electronics Healthcare Automotive Utilities

2014 3.6% 1.9% 13.1% 17.6% 26.2% 37.5%

2015 3.3% 2.0% 13.2% 17.9% 26.1% 37.5%

2016 3.0% 2.0% 13.3% 18.2% 25.8% 37.8%

2017 2.6% 2.0% 13.2% 18.5% 25.4% 38.3%

2018 2.2% 2.1% 12.9% 18.6% 25.1% 39.1%

2019 1.8% 2.1% 12.5% 18.9% 24.8% 39.9%

Source: Technavio, 2015

The market share of the utilities sector is likely to decline during the forecast period, as it was an early adopter of M2M in the management of electricity, water, and gas services. These applications are critical in nature and a security breach could lead to huge losses. Hence, network security investments have been higher in the utilities sector than the other sectors in the early stage of its introduction. The market share of the automotive sector is expected to decline as the revenue contribution is likely to be low because the IoT and M2M applications are only installed in high-end vehicles that are purchased by a limited number of customers. The market share of the healthcare sector is likely to grow because innovations like m-health are emerging as significant growth opportunities for organizations that are looking to capitalize on wireless healthcare innovations. Remote patient monitoring technology, used in the healthcare sector, offers users timely information about a patient's health to ensure accuracy in diagnosis. For instance, wearable body sensors and remote monitoring are used to improve quality of life. The market share of consumer electronics M2M devices is likely to decline during the forecast period because M2M in consumer devices is still in its

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early stage. The market share of the intelligent buildings sector is likely to grow because M2M enhances building management and performs real-time remote monitoring and commissioning and control of entire portfolios of buildings. The others end-user segment, which includes manufacturing, retail, financial services, logistics, and transportation, held 3.6% of the market share in 2014.

Global M2M network security market in utilities sector Market size and forecast The global M2M network security market in the utilities sector was valued at $154.1 million in 2014 and is likely to reach $489.5 million by 2019, growing at a CAGR of 26.0%. Global M2M network security market in utilities sector 2014-2019 ($ millions) 600

30.9% 29.0%

500

30%

25.9% 23.6%

400

19.9%

35%

25%

20.8%

20% 300 15% 200

10%

100

5% 154.1

186.2

230.2

289.8

373.9

489.5

2014

2015

2016

2017

2018

2019

0

0% Revenue

Growth rate

Source: Technavio, 2015

Market analysis The main driving factors for the adoption of M2M network security include the rapid implementation of smart meters and distribution management systems for water, gas, and oil. In addition, smart grids are increasingly being implemented in developed countries in Europe and APAC; developing economies, such as India and Brazil, are also in the process of deploying smart systems in the utilities sector. However, smart systems in the utilities sector have a complex network architecture. Hence, they tend to become more exposed to growing cybercrime threats which is fueling the demand for robust M2M network security.

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Global M2M network security market in automotive sector Market size and forecast The global M2M network security market in the automotive sector was valued at $107.6 million in 2014 and is likely to reach $303.7 million by 2019, growing at a CAGR of 23.1%. Global M2M network security market in automotive sector 2014-2019 ($ millions) 350

26.4% 24.7%

300 250

30%

19.4%

20.5%

21.4%

25%

22.3%

20%

200 15% 150 10%

100

5%

50 107.6

129.7

157.5

192.7

240.3

303.7

2014

2015

2016

2017

2018

2019

0

0% Revenue

Growth rate

Source: Technavio, 2015

Market analysis M2M is predominantly used in remote monitoring of cars and theft recovery in the automotive sector. The growing need for infotainment services inside connected cars is also fueling the growth of the market. The market will see a surge in its growth during the second half of the forecast period, primarily because of the increased adoption of connected car services and applications such as asset tracking and fleet management in Latin America and MEA.

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Global M2M network security market in healthcare sector Market size and forecast The global M2M network security market in the healthcare sector was valued at $72.4 million in 2014 and is likely to reach $231.8 million by 2019, growing at a CAGR of 26.2%. Global M2M network security market in healthcare sector 2014-2019 ($ millions) 250

29.9%

200 22.8%

24.5%

26.3%

27.6%

35% 30% 25%

20.1% 150

20% 15%

100

10% 50 5% 72.4

88.9

110.7

139.8

178.4

231.8

2014

2015

2016

2017

2018

2019

0

0% Revenue

Growth rate

Source: Technavio, 2015

Market analysis The revenue in the healthcare sector is expected to grow as it has become easy for hackers to inject malicious codes and hack devices such as pacemakers, insulin pumps, and defibrillators. Such actions can be fatal to the remotely monitored patient. Remote monitoring of patients is steadily growing, with approximately three million people currently using this service globally. As the security of patients is important, healthcare institutions are investing heavily in security solutions at the network level to safeguard patients and medical devices. This is likely to drive the demand for M2M network security solutions.

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Global M2M network security market in consumer electronics sector Market size and forecast The global M2M network security market in the consumer electronics sector was valued at $53.48 million in 2014 and is likely to reach $153.8 million by 2019, growing at a CAGR of 23.4%. Global M2M network security market in consumer electronics sector 2014-2019 ($ millions) 24.2%

180

23.9%

160

24%

23.5%

140

24%

22.9%

120

23% 22.3%

100 80

25%

23%

21.7%

22%

60

22%

40

21%

20

21% 53.8

65.8

80.9

99.9

123.8

153.8

2014

2015

2016

2017

2018

2019

0

20% Revenue

Growth rate

Source: Technavio, 2015

Market analysis Consumer electronics includes smart home appliances, portable media players, sensor devices, smart glasses, baby monitoring devices, e-readers, and gaming consoles. Increased use of M2M technology in intelligent consumer electronic devices such as cameras, gaming consoles, PNDs, health monitors, personal trackers, and e-readers has made these devices more affordable for consumers and provides consumers with a better user experience. There have been cases of these devices being hacked and such cases are likely to increase because of continuous advancement and development in hacking techniques, which can cause significant losses to end users. Therefore, there is an increased need for M2M network security in the consumer electronics sector to handle the growing number and increased complexity of threats.

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Global M2M network security market in intelligent buildings sector Market size and forecast The global M2M network security market in the intelligent buildings sector was valued at $7.8 million in 2014 and is likely to reach $25.3 million by 2019, growing at a CAGR of 26.5%. Global M2M network security market in intelligent buildings sector 2014-2019 ($ millions) 28.4%

30

29%

27.9% 28%

25

27%

26.2% 25.8%

20 15

26% 25%

24.4% 23.8%

24%

10

23% 5

22% 7.8

9.7

12.2

15.4

19.7

25.3

2014

2015

2016

2017

2018

2019

0

21% Revenue

Growth rate

Source: Technavio, 2015

Market analysis Building automation systems have moved from being stand-alone products to highly interconnected systems having multiple access points, leading to a rise in the number of attacks, which exposes them to unauthorized access and security breaches. The increased number of vulnerabilities in these systems has made security a major priority, leading to an increased demand for M2M network security.

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Segmentation of global M2M network security market by geography 2014-2019 Europe The market in Europe was valued at $136.5 million in 2014 and is expected to reach $394.9 million by 2019, growing at a CAGR of 23.7%. Western Europe was the major revenue contributor because of the increased adoption PART 08:

of M2M applications and the IoT, which require network security solutions to protect

Geographical segmentation

data. In this M2M environment, accessibility on all devices leads to an increase in data generation and new vulnerabilities. In 2014 the UK, France, Italy, and Germany were the major adopters of M2M network security solutions in Europe. The high concentration of M2M applications and devices in large enterprises and SMEs has led to an increase in the demand for M2M network security in this region. In addition, the increased M2M network attacks and vulnerabilities in government infrastructure and other critical infrastructures in Europe are prompting companies and government departments to opt for M2M network security solutions. The increase in government and regulatory initiatives, such as the EU initiatives to have a smart meter penetration level of more than 70% by 2020, and the mandatory incorporation of automotive safety systems such as eCall in all new car models are also helping to drive M2M connections, further leading to the demand for M2M network security to protect advanced M2M devices. Segmentation of global M2M network security market by geography 2014-2019 ($ millions) 1,400 1,200 1,000 800 600

400 200 0 MEA Latin America APAC North America Europe

2014 7.8 15.9 123.1 127.3 136.5

2015 9.6 18.9 151.3 152.8 164.2

2016 12.0 23.5 188.3 185.9 199.9

2017 15.3 29.8 236.8 228.8 246.5

2018 19.9 38.2 302.3 286.5 310.3

2019 26.6 50.3 389.8 364.9 394.9

Source: Technavio, 2015

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North America The market in North America was valued at $127.3 million in 2014 and is expected to reach $364.9 million by 2019, growing at a CAGR of 23.4%. North America will specifically lead in mobile healthcare initiatives such as medical monitoring, medication reminders, and telemedicine. Telematics is still in its introduction stage and is expected to penetrate the North American market during the forecast period. Security concerns about consumer electronics are expected to increase in the region. The adoption of the IoT in industrial buildings is expected to increase, which will lead to the growth of M2M network security.

APAC The market in APAC was valued at $123.1 million in 2014 and is expected to reach $389.8 million by 2019, growing at a CAGR of 25.9%. APAC is seen as a promising market and has growth opportunities for telematics, smart meters, and m-health services, especially in its developing economies such as India and China. Differing market dynamics could pose a challenge, but rapid adoption of M2M applications from countries such as China, India, Thailand, and Singapore are expected to drive the market in the future. With the growing number of devices being connected through various communication channels, M2M devices have become more vulnerable than ever. These devices have become an easy target for cyber-attackers to gain access to privileged information by using advanced techniques. This is leading to the fast adoption of M2M network security solutions in APAC.

Latin America The market in Latin America was valued at $15.9 million in 2014 and is expected to reach $50.3 million by 2019, growing at a CAGR of 25.9%. Increased dependency on cellular M2M connections and cloud-based M2M services, coupled with the emergence of technological forces such as cloud and the IoT, has enabled enterprises in the region to improve business productivity and increase employee efficiency. At the same time, there has been an increase in the frequency of cyber-attacks, and enterprises are facing the challenge of keeping organizational data, assets, and information stored on companies' M2M network infrastructure. Increased instances of M2M security attacks in the region is forcing several organizations to deploy M2M network security.

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In Latin America, the market is mainly driven by POS terminals connected via GPRS, the migration of payment cards to the EMV standard, and vehicle telematics services such as SVR. All these advances are leading to the increased demand for M2M network security solutions to protect data transmission from vulnerabilities.

MEA The market in MEA was valued at $7.8 million in 2014 and is expected to reach $26.6 million by 2019, growing at a CAGR of 27.8%. South Africa, Kenya, and Nigeria were the major adopters of M2M network security solutions in MEA. M2M technology is being used in the transportation and retail sectors to deliver services such as fleet management, asset tracking, retail POS, and pay-asyou-go insurance. Further, improved mobile network coverage and bandwidth availability and increased usage of smart devices is likely to drive the market for M2M applications and connections, which in turn is expected to drive the market for M2M network security. Although the market in the Middle East is picking up, it is still low in Africa but is expected to grow soon with the rapid evolvement of technology and awareness of the IoT among people in the region.

Market attractiveness by geography Market attractiveness by geography 500

APAC Europe

450 400 350 300

North America

250

200 Latin America

150 100

MEA

50 0 0

20

40

60

80

100

120

140

160

Source: Technavio, 2015

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X axis —

Market size in 2013

Y axis

Market size in 2018

—

Size of bubble —

CAGR of respective segment

The global M2M network security market is segmented based on geography into the following regions: Europe, North America, APAC, Latin America, and MEA. Technavio analysis believes that Europe held the highest revenue in the market, however, MEA is the fastest growing region, with the highest CAGR in the forecast period. The deployment of high-speed LTE networks and increased penetration of connected devices in MEA is likely to boost the market growth in the region. APAC and Latin America are very similar in terms of CAGR. An increase in the number of government initiatives in China for setting up smart cities will enhance the growth of M2M devices. Also, the demand for M2M security is growing in various countries such as China, India, Singapore, and Japan. The early adoption of telematics and M2M in consumer electronic applications is one of the major driving factors in the market. In addition, adoption of remote monitoring and fleet management applications is also expected to see a marked increase and is likely to fuel the overall market growth in North America.

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Buying criteria for M2M network security Buying criteria of M2M network security Utilities 5 4 3 Intelligent buildings

PART 09:

2

Automotive

1

Interoperability

0

Buying criteria

Cost

Security Effectiveness

Consumer electronics

Healthcare

Cost Cost includes the cost price and the cost of maintenance, and upgrades. M2M network security solutions should be cost-effective and the prices of the solutions should be predefined.

Interoperability Interoperability of M2M network security includes the usability and compatibility of security solutions on various M2M networks and devices. This requirement varies for every end user as their network infrastructure varies. This is a major criterion for every end user and hence has a high weightage.

Security The ability of M2M network security solution to protect from various M2M vulnerabilities and exploits such as direct attacks against routers and gateways. High level of security is demanded by end users, especially in case of data transmission and critical communications.

Effectiveness M2M network security should be able to provide advanced security capabilities and create a trusted environment along the networks. Even if the device is hacked, the gateway to the network should offer robust authentication that detects and prevents unauthorized use and entry attempts.

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Key development: M2M network security Introduction of IoT With advances in technology, the number of connected devices is expected to increase significantly in the market. Connected devices include imaging devices with cellular communications, portable navigation devices, and media players. The number of connected devices across the world is expected to reach approximately 50 billion by 2019. With an increase in the number of devices, it becomes increasingly difficult to monitor, manage, and maintain them. Hence, the demand for M2M and machine-tohuman communication increases as it helps end users simplify the management and maintenance of connected devices. This need is expected to lead to the increased adoption of the IoT. The IoT makes use of several technologies such as RFID, sensors, bar codes, and GPS. These technologies can be used to monitor and manage the physical assets of any organization. For instance, RFID-tagged goods are easier to track in the supply chain of a company, and are mainly used in the retail industry. Also, RFID helps in managing and maintaining the inventory of an organization. This increases the efficiency of the enterprise and improves business values. With the help of the IoT, every device or asset of an organization is interconnected with other assets. Moreover, enterprises are witnessing significant improvement in their business processes with the help of the IoT as it helps them monitor and control their business processes closely, thus leading to more effective decisions being made in real time with the use of M2M applications. With an increased adoption of the IoT and M2M by enterprises, maintaining security becomes essential to ensure data confidentiality while it flows within the network. Hence, the high adoption of the IoT is expected to have a positive impact on the adoption of M2M network security solutions.

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Increase in number of connected devices By 2019 the number of connected devices, including portable navigation devices, media players, and imaging devices with cellular connections, is expected to reach approximately 448.04 million units. These devices are connected to each other through advanced M2M modules, smart sensors, and software for entertainment, personal, and official applications. With an increase in the number of devices, it becomes increasingly difficult to monitor, manage, and maintain them. M2M helps end-users to simplify the management and maintenance of portable devices, resulting in the growth of the M2M PART 10:

Market drivers

network security market for efficient data transmission.

Need to improve quality of protection With the increased frequency and complexity of attacks, there is an urgent need to improve the quality of protection. Cyber-attackers use different pieces of code to target people, M2M networks, and M2M devices, making it difficult for organizations to detect advanced attacks especially through traditional methods such as signature-based defense. Moreover, the use of complex M2M applications by companies in their day-today business processes has also increased the demand for advanced security solutions such as M2M network security solutions, which provide a better quality of protection.

Increase in government initiatives Governments worldwide are taking initiatives to drive the demand for cellular and satellite M2M networks that are used for M2M communications across the automotive, energy, and healthcare industries, which in turn results in increased demand for M2M network security solutions to securely protect networks against all vulnerabilities. These government mandates have the highest effect on the automotive sector. For instance, eCall has been passed by the governments of the EU countries, which mandates the availability of emergency call systems in all new vehicles. The emergency call systems equip automobiles with cellular connectivity, which helps the emergency service providers instantly receive notifications in case of any emergency or accident. M2M plays a vital role in transmitting these data and information in real time by connecting the devices and applications over a network. The US government has taken an initiative to install smart meters in households for energy conservation. In Brazil, a mandate, "Contran 245," has been passed in which stolen vehicles are tracked and recovered with the help of cellular technology. Thus, favorable government regulations have increased the shipment of these modules in the automotive sector, which in turn fuels the demand for M2M network security.

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Increased usage of M2M in enterprises M2M makes use of several technologies such as RFID, sensors, bar codes, and GPS. These technologies can be used to monitor and manage the physical assets of an organization. For instance, RFID-tagged goods are easier to track in the supply chain, and this technology is mainly used in the retail industry. Also, RFID helps in managing and maintaining the inventory of an organization. This increases the efficiency of the enterprise and improves business value. With the help of M2M, every device or asset of an organization is interconnected. Moreover, enterprises are witnessing significant improvement in their business processes by using M2M as it helps them closely monitor and control those business processes, resulting in more effective decisions in real time. With an increase in adoption of M2M by enterprises, maintaining security becomes essential to ensure the confidentiality of data during transmission within the network. Hence, increased adoption of M2M by enterprises is likely to increase the demand for M2M network security.

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Impact of drivers

Drivers

Impact on key customers categories Utilities

Automotive

4

4

Utilities

Automotive

5

5

Utilities

Automotive

4

3

Utilities

Automotive

4

4

Increase in number of connected devices

PART 11:

Impact of drivers

Healthcare

4

Healthcare

Need to improve quality of protection

Increase in government initiatives

5

Healthcare

5

Healthcare

Increased usage of M2M in enterprises 4

Source: Technavio, 2015

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Technical defects Although M2M network security solutions provide better security than the alternatives available in the market, the lack of accuracy of these solutions is a major challenge that affects the profits of vendors. Technical defects, server errors, and other malfunctions caused by hacking are some of the major issues faced by the vendors. Therefore, to ensure low error rate and high accuracy, vendors have to conduct a number of trial runs before introducing M2M network security solutions in the market. This increases the cost of products restricting their adoption among price-conscious PART 12:

end users such as SMEs. It is therefore difficult for vendors to maintain a balance

Market growth inhibitors

between accuracy and price.

Increased security threats Increased information theft has increased the need to minimize such cases. Cyberattacks have become more advanced, targeting M2M networks and devices. With the rapidly changing M2M network infrastructure, attackers have found ways of stealing valuable information and disrupting business by breaching security. The increased dependence on network and M2M applications for critical data transmission has led to an increase in information theft. Also, because the number of mobile devices being used by end users is growing and various networks are being used for data transmission, the risk of security threats increases.

Complexity in deployment The rapid increase in M2M devices has led to the increased complexity of M2M networks. This increases their vulnerability to security attacks or malware attacks such as denial of service or man-in-the-middle, which can cause significant losses for the customer. A complex network has always been hard to manage and is susceptible to both physical and network intrusion. Hence, security needs to be implemented at each point. As the M2M value chain is filled with multiple participants, elements of security will have to be deployed by different players at various points in the value chain. Hence, for complete security, an end-to-end approach is necessary, but this involves a lot of participants including different security providers, OEMs, and end users. Thus, security implementation at each point, such as interface and boundaries, and the consequent management is a huge challenge for customers and security vendors.

Intense vendor competition The market has high growth potential, which is encouraging new vendors to explore the market. The entry of new vendors will lead to intense competition. Vendors are developing advanced solutions to remain competitive in the market. However, the

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presence of several vendors in the market will increase price wars, which will affect their profit margins and overall market revenue. Intense competition, rapid advances in technology, and frequent changes in consumer preferences involve significant risks for vendors in the market. The market is witnessing consolidation because of the increased competition. Therefore, to survive and succeed in this intensely competitive environment, it is imperative for vendors in the market to distinguish their product and service offerings through a clear and unique value proposition.

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Impact of drivers and market growth inhibitors

Drivers

Growth inhibitors

Increase in number of connected devices

4

3

2

1

0

0

1

2

3

Technical defects

4

PART 13:

Impact of drivers and market growth inhibitors

Need to improve quality of protection

Increased security threats

4

3

2

1

0

0

1

2

3

4

Increase in government initiatives

Complexity in deployment

4

3

2

1

0

0

1

2

3

4

Increased usage of M2M in enterprises

Intense vendor competition

4

3

2

1

2015

0

0

2017

1

2

3

4

2019 Source: Technavio, 2015

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Increase in number of cyber-attacks on M2M networks With the expansion of digital lives and M2M solutions at an ever faster pace, an urgent need has emerged to secure these solutions and ensure the privacy and integrity of the data they communicate. Cyber-attacks in the M2M space have been low because of the lack of intelligence in networks. However, this has increased in the past two to three years with the emergence of the IoT. The rise in end-to-end communication from modules to management platforms is increasing the probability of M2M networks getting hacked. This increases the importance of network security products, with PART 14:

customers becoming more aware and conscious of potential cyber-attacks. For

Market trends

instance, an attack on a pace maker could be fatal to the patient. Similarly, an attack on utilities could bring down the power supply of a whole nation. Hence, the impact of cyber-attacks on M2M applications is significant and enterprises are expected to adopt up-front security measures during the implementation of M2M applications.

Emergence of M2M in smart cities Smart cities exist where there is interconnection among a number of digital technologies that enhance communication between devices and improve their performance, and help in efficient utilization of resources. For instance, traffic control, home monitoring, waste management, water management, and safe and intelligent transportation are some of the technologies used in smart cities. Smart cities use M2M applications that allow communication between devices and help end users to respond faster to the challenges being faced. The number of smart cities is expected to grow rapidly during the forecast period. Hence, to ensure safe and secure communication between devices and their efficient functioning, it is important to maintain the security of the network infrastructure by implementing M2M network security solutions.

Enhanced healthcare facilities with M2M M2M applications are being used extensively in the healthcare sector because they facilitate efficient management of patient information and provide improved medical facilities. For instance, in India, Bangalore-based Manipal Hospitals give pregnant women a wearable device that is paired with a cell phone app. This gives real-time information on fetal heart rate and other key data to doctors, which can be accessed remotely from a tablet or smartphone. Also, frequent real-time monitoring offered by smart devices reduces the need for patients to visit clinics. In addition, hospitals have central monitoring systems for nurses, which give them a real-time overview of patients and their health statistics. Regular use of wearable devices by patients enables early intervention by doctors. Also, patient records can be accessed through mobiles and tablets. However, these medical devices are prone to cyber-attack, which may result in

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the leakage of patient details. Thus, with an increase in the number of connected devices, security issues are expected to increase rapidly in the healthcare sector leading to the increased adoption of M2M network security.

Increase in demand for M2M in consumer electronics Earlier, M2M systems were mainly used by businesses and public organizations, but now they are used more widely in smart homes, in different fitness gadgets, for tracking goods and assets, or simply for entertainment. Organizations are introducing new technologies for their customers and the IoT ecosystem is evolving as a result. Hence, gadgets and devices will be affordable for everyone. However, the systems are still not very extended for mid-market consumers. The IoT provides a seamless experience when using MP3 players, cell phones, and gaming consoles. The IoT allows end users' entertainment gadgets to be constantly connected to the Internet, which means that users can access all types of media and up-to-date content. Thus, the huge number of gadgets and devices being used in conjunction with the Internet for easy data transmission means that security is becoming a major concern for end users. Thus, increasing demand for M2M in consumer electronics is expected to drive the demand for M2M network security solutions.

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Vendor matrix Product offerings Vendors Cisco



Cisco 819 integrated services router M2M gateway

Gemalto



M2M and IoT security

Kore Wireless



M2M network management solutions

Numerex



Numerex Network Solutions

PTC (Axeda)



Axeda M2M Cloud Service

PART 15:

Vendor dynamics

Product offerings

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Features of products offered and end users Cisco

Gemalto

Kore Wireless

Numerex

PTC (Axeda)

Features Supports 3G highspeed packet access

Provides management of devices, communications, networks, and systems

Offers a fully managed server cloud and data storage hosting environment

Performs network analysis

Rapid and easy implementation

Lightweight and compact size with low power consumption

Offers easy integration into industrial manufacturing processes

Offers security to both dynamic and static private IP address options

Offers speedy service delivery options including Network-as-aService (NaaS , Platform-as-aService, and SaaS

Easily connect to remote products and assets

Fully integrated with Cisco IOS software

Offers protection at the edge for the most critical M2M applications

Provides protection to both public (Internet) and private network connections

Capable of supporting millions of devices on the Numerex network

Ensures accurate and secure data communication and reduces risk

Available in both non-hardened (Cisco 819G) and hardened (Cisco 819HG) versions

End users Transportation

IT

Financial

Energy and utilities

Government

Industrial automation and manufacturing

Government

Healthcare

Manufacturing

Retail

Energy and utilities

Financial

Logistics

Transportation

Healthcare

Financial

Healthcare

Oil and gas

Healthcare

Energy

Retail

Automotive

Transportation

Healthcare

Transportation

Financial

Logistics

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Cisco

Gemalto

Kore Wireless

Numerex

PTC (Axeda)

Energy Mobile network operators

Competitive landscape The market is fragmented with the presence of many small regional vendors and large multinational vendors. Advances in technology have led to the development of new and complex ways to breach the networks of M2M devices and applications. This has led to the implementation of many threat mitigation security solutions across all the major end-user segments, including utilities, automotive, healthcare, consumer electronics, and intelligent buildings. The global M2M network security market is characterized by the presence of welldiversified international and regional vendors. However, as international players are increasing their footprint, regional vendors are finding it difficult to compete with them, especially on features such as quality, technology, and price. Vendors with better technical and financial resources can develop products that can make competitors' products obsolete and non-competitive even before they are launched or before the R&D and commercialization costs have been recovered. The competition in this market is expected to intensify further with the increase in product/service extensions, technological innovations, and M&A. International players are expected to grow inorganically during the period 2014-2019 by acquiring regional or local players.

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Description of major vendors Cisco The vendor, though a much later entrant to the market, continues to hold a key position in the market. The vendor has entered into the cellular-based routers product platform through the launch of its hardened routers that have the option of 3G/4G connectivity. These routers are on the higher side in terms of both functionality and price and are more of a niche product in the M2M market. The vendor provides M2M network security solutions that include: Cisco Integrated Services Router 819 M2M gateway: This is fully integrated with Cisco IOS software and is a highly secure solution designed specifically for M2M applications. It supports mobile IP and delivers routing, switch, WAN, LAN, and network management. This can work in extremely challenging environments such as high humidity and water, dust, and excessive shocks in transportation and manufacturing applications.

Gemalto The product portfolio of the company includes M2M communication modules, machine identification modules, device management platforms, cloud-based application enablement platforms for M2M applications, and value-added services. The vendor provides hardware modules, reliable platforms, and secure service solutions to connect and protect any M2M and electronic consumer device. M2M network security provided by the vendor includes: M2M and IoT security: This solution performs penetration testing of devices and systems including reverse engineering and physical and logical manipulation to confirm appropriate security of assets and data.

Kore Wireless The vendor provides M2M network services and M2M network management solutions. The vendor provides its products and services to a large customer base including healthcare, insurance, logistics, utilities, and financial sectors. M2M network security provided by the vendor includes: M2M network management solutions: This solution is fully managed in a server cloud and data storage hosting environment that saves the capital and operational expenses of leasing data center space, purchasing servers, and hiring system administrators to oversee operations and security.

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Numerex The company is a leading provider of M2M platforms and products. It offers products for various M2M applications such as security, vehicle intelligence, telematics, remote monitoring, supply chain, and asset tracking. The vendor provides M2M network security solutions that include: Numerex Network Solutions: This solution offers a platform that enables the management and monitoring of M2M devices virtually anywhere in the world when roaming globally or within specific regions.

PTC (Axeda) The company was acquired by PTC for $170 million in 2014. The vendor provides advanced cloud-based services and software for managing connected products and machines in enterprises. The vendor provides M2M network security solutions that include: Axeda M2M Cloud Service: This advanced cloud-based software enables the management of connected products and assets and the implementation of innovative IoT applications. It enables the easy connection of machines and devices to the cloud and stores machine and sensor data.

Vendor highlights Key news Vendors

Date

News Launches IoT system for enterprises and smart cities. It includes network switches and

Cisco

June 2015

routers, wireless access points, IP surveillance cameras, security analytics software, and fog data services Launches LTE Category 1 (Cat 1) wireless module to enhance 4G

Gemalto

September 2015

LTE connectivity. This is specifically designed for M2M and industrial IoT applications

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Vendors

Date

News Partners with Fargo Telecom to

Kore Wireless

August 2015

expand M2M service offerings to the Asian market Announces technology

Numerex

September 2015

upgradation from old 2G devices to long term and sustainable LTE technology Launches ThingWorx 6.0 IoT

PTC (Axeda)

May 2015

platform for IoT and M2M applications

Mergers and acquisitions Vendor

PTC Kore Wireless PTC Digi International Telit Sierra Wireless NETGEAR Numerex

Acquired

Year

vendor

Deal amount

Axeda

2014

$170 million

RacoWireless

2014

N/A

ThingWorx

2013

$112 million

Etherios

2012

N/A

ILS Technology

2013

N/A

AnyDATA

2013

$5.9 million

Sierra Wireless

2013

N/A

Omnilink Systems

2014

$37.5 million

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Other prominent vendors Companies Digi International EUROTECH

NetComm Wireless

Novatel Wireless

Option

Description Provider of M2M products and services Provider of M2M-IoT integration platform Provider of M2M network security for industrial applications Provider of MiFi IoT devices and software services technologies Provider of cloud-based and wireless solutions to M2M markets

Systech

Provider of M2M modular gateway

Telit

Provider of IoT and M2M

Ventus

Provider of fully integrated M2M and enterprise cellular wireless solutions

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Cisco Systems Business overview Cisco Systems was incorporated in 1984 and is headquartered in San Jose, California. It designs, manufactures, and sells IP-based networking products and services related to the communications and information technology industry. It caters to businesses of all sizes, public institutions, telecommunications companies, other service providers, and individuals. PART 16:

Key vendor analysis

Business segmentation by revenue 2014 Cisco: Business segmentation by revenue 2014

Others 68% Products 77% Security 3%

Data center 6% Service 23%

Source: Technavio, 2015

Cisco has two revenue segments: Products and Services. The Products segment comprises the following sub-segments: 

Data Center: this segment's primary offering is the Cisco UCS which combines computing, networking, management, storage, and virtualization into a single fabric-based platform. The UCS is specifically designed for virtualization and automation and enables rapid deployment and scaling of application infrastructure. In addition it offers server access solutions.

Product categories

Unified communications

Key products 

Cisco UCS B-Series Blade Servers



Cisco UCS C-Series Rack Servers

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Product categories

Server access virtualization

Key products 

Cisco UCS Fabric Interconnects



Cisco UCS Manager and Cisco UCS Central Software



Cisco UCS Director



Cisco UCS Invicta Series



Cisco Nexus 1000V



Cisco Nexus 1000V InterCloud



Security: Offers solutions such as network security, cloud web security, web and email security, data center security, advanced malware protection, network admission control, and identity services



Others: These include switching products for networking solutions, NGN routing solutions, digital video distribution systems and set top boxes, collaboration technologies (which integrate voice, video, data, and mobile applications), wireless technologies, enterprise solutions, and many more

Services Cisco provides technical support services and advanced services. Technical support services enable customers to protect their network investments, manage risk, and minimize downtime for systems running mission-critical applications. The advanced services program focuses on providing responsive, preventive, and consultative support for specific networking needs. It supports networking devices, applications, solutions, and complete infrastructure.

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Business segmentation by revenue 2013 and 2014 Cisco: Business segmentation by revenue 2013 and 2014 ($ billions) 40

38.02

36.17

35 30 25 20 15

10.97

10.57

10 5 0 Products

Services 2013

2014

Source: Technavio, 2015

During FY2014, product revenues decreased by 5% to $36.17 billion. The decline reflects a decline in revenues across all customer markets, as well as all geographic segments. During the same period service revenues increased by 4% to $10.97 billion. This was primarily attributed to growth in EMEA, with slower growth in the Americas and APJC segments. In the data center sub-segment, revenues grew by 27% to $2.67 billion. This was primarily attributed to the growth in UCS across all geographic segments as a result of growing trends the data center and cloud environments. In the security sub-segment revenues grew by 16% to $1.57 billion, primarily because of increased sales of Sourcefire products as well as high-end firewall products and content security products.

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Geographical segmentation by revenue 2014 Cisco: Geographical segmentation by revenue 2014

APJC 16%

Americas 59%

EMEA 25%

Source: Technavio, 2015

Total revenue decreased by 3% in FY2014. The product segment revenue decreased by 5% and service revenue increased by 4% in FY2014. The service segment revenues experienced slow growth in the Americas, EMEA, and APJC

About Cisco in IT security sector IT security is a rapidly growing business within the Cisco portfolio. During FY2014 revenues from the IT security stream grew by 12%. The company made several strategic acquisitions to enhance and optimize its portfolio. These include Sourcefire, a provider of cybersecurity solutions; as well as ThreatGRID, a provider of malware analysis and threat intelligence solutions. The company also acquired Neohapsis, a provider of security consulting services. In addition the company launched new solutions in its advanced malware protection and network security line up, leveraging its acquisitions of Sourcefire products and Cognitive Security products. In 2014, the company launched the industry’s first threatfocused NGFW solution, which integrates Sourcefire's FirePOWER Services solution within Cisco's Advanced Security Appliances portfolio. In addition the company also launched several new hardware platforms that can also be enabled with FirePOWER Services such as ASA 5506-X, 5508-X, and the high performance FirePOWER 9300. Further, Cisco integrated its advanced malware protection for networks with its threatcentric NGFW, and also launched ThreatGRID appliances based on the Cisco UCS

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platform. These platforms offer on-premise advanced dynamic malware analysis and threat intelligence solutions. Cisco's range of logical security solutions include:

Product categories

Products 

Cisco Identity Services Engine



Cisco Meraki Cloud Managed MDM



Cisco Secure Access Control Server Solution Engine



Cisco Secure Access Control Server for Windows



Cisco Secure Access Control Server for Windows



Cisco Advanced Malware Protection Threat Grid — Appliances



Cisco Advanced Malware Protection Threat Grid — Cloud



Cisco Advanced Malware Protection Virtual Private Cloud Appliance



Cisco Advanced Malware Protection for Endpoints



Cisco Advanced Malware Protection for Networks

Access control and policy

Advanced malware protection

Cisco Meraki Cloud Managed Security Appliances Adaptive Security Appliances Cisco ASA 5500-X Series Next-Generation Firewalls Firewalls



Cisco ASA with FirePOWER Services



Cisco Adaptive Security Appliance Software



Cisco Adaptive Security Virtual Appliance (ASAv)

Firewall Integrated Switch Router Services

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Product categories

Products 

Cisco IOS Firewall

Firewall Management 

Cisco Adaptive Security Device Manager



Cisco FireSIGHT Management Center



Cisco Security Manager

Cisco SSL Appliances Integrated Router Security

Network security

Next Generation Intrusion Prevention System

Security management

Web security



Router Security



Cisco VPN Internal Service Module for ISR G2

Integrated Threat Control 

Cisco IOS Firewall



Cisco IOS Flexible Packet Matching (FPM)



Cisco IOS Intrusion Prevention System (IPS)



Cisco IOS Network Address Translation (NAT)



Cisco IOS Network Foundation Protection (NFP)



Cisco FirePOWER 8000 Series Appliances



Cisco FirePOWER 7000 Series Appliances



Cisco FireSIGHT Management Center



Cisco Adaptive Security Device Manager



Cisco Content Security Management Appliance



Cisco FireSIGHT Management Center



Cisco Cloud Web Security



Cisco Web Security Appliance

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Cisco's range of physical logical security solutions include a range of network-centric solutions which comprise IP cameras, videos surveillance solutions, physical access managers, and notification and response systems.

Products

Description/features Available in standard and high definition, wired

Cisco video surveillance IP and wireless box and dome, and stationery and cameras

pan-tilt-zoom versions. The company also provides video analytic solutions

The software suite features the Cisco Video Surveillance Media Server, Cisco Video Surveillance Operations Manager IP video surveillance software

Cisco Video Surveillance Media Virtual Matrix, Cisco Physical Security Operations Manager, and VSS Alloy for Cisco Video Surveillance Manager Comprises scalable solutions to manage several

Cisco physical access

thousand doors. The system comprises the

control

Cisco Physical Access Gateway and Cisco Physical Access Manager This is a dispatch and incident response

Cisco IP interoperability and collaboration system

solution, ideal for public safety operations. It consists of the Cisco IPICS Dispatch Console and Cisco IPICS Mobile Client

Recent developments Description  Key highlights

September 2014: Announces that more than 30 additional companies, including Deutsche Telekom, NTT Data, and Equinix, have added their support to the Intercloud, the worldwide network of interconnected clouds

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Description 

September 2014: Acquires Metacloud, the provider of private clouds for global organizations with a unique OpenStack-as-aService model



June 2014: Announces intent to acquire OpenDNS, a privately held security company based in San Francisco



April 2014: Announces a new integrated infrastructure solution for OpenStack-based cloud deployments with Red Hat

Gemalto Business overview Gemalto was incorporated in 2002 and is headquartered in Amsterdam, the Netherlands. The company was formerly known as, Axalto Holding NV and then later changed its name into Gemalto NV, in combination with Gemplus International SA. The company provides digital security products and services worldwide.

Products The company's product offering include the following:

Embedded software and products: Includes client-side software and devices that protect the identity of a user and secure access to a digital network. This software is used in SIM cards, electronic payment cards, electronic passports, and in network and physical access badges.

Platforms and services: Includes client-side with back-office systems and solutions that run in the company's secure facilities as well as the customer's facilities. The company offers a variety of server-based platforms tailored to the needs of different market verticals with core functionalities including enrolment, issuance, lifecycle management, and verification of electronic identities to enable end-to-end security in authentication and transaction processes. It also offers services including the personalization of objects, consulting, training, software customization, system installation and optimization, infrastructure maintenance, and operations management from Gemalto data centers.

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Business segmentation by revenue 2014 Gemalto: Business segmentation by revenue 2014 Others 0.70

Payment and identity 46.99%

Mobile 52.31%

Source: Technavio, 2015

The company operates through three segments, namely:

Mobile: The mobile segment is engaged in the businesses associated with mobile cellular technologies. It offers SIM/UICC cards and back-office platforms and services including roaming optimization, mobile payment, mobile marketing, personal data management, and trusted service management for mobile network operators. For industrial organizations, it offers solutions that address the needs of a broad range of market verticals like utilities, health, and automotive. These industrial solutions enable M2M data exchange through hardware modules and operating software that connect machines to digital networks. The cloud-based M2M application enablement and LSP platforms provide industrial customers the ability to harness the power of the IoT to improve operations, productivity, and efficiency.

Payment and identity: Its customers are financial institutions, retailers, mass transit authorities, government agencies, government service providers, and enterprises of all sizes. Its payment offerings include chip cards, mobile financial services, and contactless payment solutions. It also sells subscriber authentication and rights management solutions to pay TV service providers. It also offers secure electronic identity documents, including e-passports and badges; a multi-factor online authentication and transaction solution; and a range of support services for government and enterprises.

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Others: The company also licenses its intellectual property and provides security and other technology advisory services.

Business segmentation by revenue 2013 and 2014 Gemalto: Business/Product segmentation by revenue 2013 and 2014 ($ billions) 1.8

1.71

1.71

1.54

1.6

1.43

1.4

Revenue in $ billions

1.2 1.0 0.8 0.6 0.4 0.2

0.02

0.02

0.0 Mobile 2013

Payment & Identity 2014

Others

Source: Technavio, 2015

Mobile: In FY2014, the segment revenue increased by 0.11% to $1.71 billion compared to segment revenue in FY2013.

Payment and identity: In FY2014, the segment revenue increased by 7.77% to $1.53 billion as compared to segment revenue in FY2013.

Others: In FY2014, the segment revenue decreased by 7.21% to $22.89 million as compared to segment revenue in FY2013.

Gemalto in IT security sector Gemalto offers a wide range of solutions, services, and platforms that enable M2M and IoT applications. These solutions are used in industries like healthcare, smart energy, transportation, retail services, logistics, and automotive. The company's M2M solutions include:

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Wireless modules and terminals Gemalto's wide range of Cinterion M2M modules and terminals enable always-on cellular communications for virtually any IoT or M2M application. They are compatible with all cellular technology standards including GSM, CDMA, EDGE, GPRS, UMTS, HSDPA, and LTE. Cinterion modules and terminals provides voice, high-speed data, and IP-based wireless communications with global roaming option. These modules can also be customized to suit the specific communications needs of the application by integrating innovative technologies like GPS/GLONASS, Java, SL agent, SIM access, and profile.

MIMs Gemalto developed a customized platform called the MIM to meet the need for an M2M optimized rugged SIM card that has long life in extreme conditions. The company's MIM offering include solutions and products such as U-MIM Quad, M2MPlug 85, M2M Plug 105, Full M2M Quad.

Secure Element The Gemalto Cinterion Secure Element is a tamper proof hardware component embedded in IoT and industrial connected equipment and machines to deliver smart card level digital security and device lifecycle management. Secure Element can protect data integrity and defend against cyber-attacks.

Application Enablement The company offers the Application Enablement platform that connects any type of device over any network; combines real-time device data with contextual information from cloud and enterprise systems and creates actionable business intelligence; and designs, builds, and manages applications using pre-built services and tools.

M2M security Gemalto provides secure solutions including: 

Security Consulting Services help organizations to identify, analyze and mitigate risk by designing end-to-end security architecture



Security Evaluation Services provide detailed penetration testing of devices and systems including physical and logical manipulation and reverse engineering to confirm appropriate security solutions



Secure Elements provide the maximum level of security for the most critical M2M applications including smart grid, automotive, and healthcare solutions

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

Secure Platforms and software solutions including on demand connectivity to protect data and subscription management

M2M development Gemalto supports development projects with its wide range of offerings of M2M solutions, platforms, and services as well as digital security expertise.

Recent developments Description 

July 6, 2015: Launches wristbands embedded with its Optelio Contactless Chip for NFC transport in Wuhan, China



June 30, 2015: Launches multi-link network encryptor with up to 100 Gbps total encrypted bandwidth



June 18, 2015: Elasitas, a mobile technology firm, selects the company to provide LinqUs Smart Backup (offered by Gemalto Allynis services in SaaS mode) for mobile subscribers in Indonesia



June 15, 2015: Partners with Orange Business Services to provide customers with highly secure access to cloudbased applications by the integration of the company's SafeNet Authentication Service with Business VPN Galerie, the secured cloud hub of Orange Business Services



June 8, 2015: Deploys Netsize SMS ticketing solution for Milan's public transport company, that enables travellers to purchase and use their tickets from their mobile phone



May 21, 2015: Russian petrol retailer EKA replaces its existing payment cards with Gemalto's Optelio PURE contactless solution



May 19, 2015: BancNet, a Philippines-based interbank selects the company's Ezio Authentication Server and Mobile token



May 6, 2015: Launches Coesysm Gov, a new mobile strong digital authentication solution for citizens to access online government services via a combination of their national eID card and NFC phone

Key highlights

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Description 

April 23, 2015: Launches Ezio Dynamic Fraud Manager, a new integrated transaction monitoring software for online banking protection



March 2, 2015: Launches LinqUs Mobile Engagement and Monetization, a comprehensive solution that optimizes the reach and effectiveness of permissionbased mobile marketing campaigns



February 25, 2015: Adds new Tokenization options to its Trusted Services Hub



February 19, 2015: Launches Ezio Mobile Out-of-Band Server, a new mobile solution, to protect people from "Ore-Ore" ("it's me, it's me") scams in Japan



February 10, 2015: Acquires the secure document business from Trub AG



January 8, 2015: Finalizes the acquisition of SafeNet, the leading data and software protection provider

Kore Wireless Business overview Kore was founded in 2003 and is headquartered in Virginia, US. The company is a managed communications provider of IoT and M2M connectivity. It offers unified control and management for satellite and cellular services. Kore provides GSM, CDMA EV-DO, LTE, HSPA, and satellite services.

Products and solutions Key products

Description

and solutions

Pffers free 2G consultation with 2G transition specialist. It 2G Sunset

simplifies the transition to new technologies with customized pricing plans, device certification assistance, and simple contract addendums

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Key products

Description

and solutions

Device certification

Provides full service device certification professional services. It supports customers with M2M device certification Offers solutions for healthcare, security, environmental services, payment and transaction, insurance, commercial

Industry solutions

lighting, digital signage, vehicle location and fleet tracking, industrial monitoring, asset and logistics control, and utilities and AMI

Satellite services

Offers global M2M communications, short burst data, and supported M2M devices Provides digital technology for GSM, CDMA, and satellite. It also offers security and performance, data services including

M2M data services

packet data, SMS plus dispatch voice services, and additional services such as SMPP 3.3 and 3.4 interconnection service for 2-way messaging Offers complete M2M messaging services such as short

Messaging

messaging service, short message peer to peer, and intercarrier message service with virtual numbers Provides local voice airtime and GSM voice program. It

Voice

manages its own short message server platform that provides inter-carrier messaging, and manages its own WAP content platform services Supports multiple wireless technologies to provide packet

Edge

data. Kore IP enables transmission of data using TCP or UDP transport protocols

HSPA

Supports multiple wireless technologies based packet data including GPRS, EDGE, and HSPA data services. It offers a

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Key products

Description

and solutions

wide range of HSPA broadband data application services for power broadband and low latency applications Supports CDMA service application for applications such as CDMA

security monitoring. CDMA services leverage KORE PRiSMPro platform services. It is offered throughout the US, Canada, Mexico, and Caribbean markets

EV-DO

Offers support network technologies such as 2.5G, 3G highspeed EV-DO wireless access and 2.5G, 1xRTT Powers M2M and diverse applications such as wire line or

LTE services

router back-up, business continuity, digital signage, security, and vending Provides flexible usage-based rating, management, and

GSM services

billing services, and value-added M2M wireless cellular services The GPRS secure technology platform provides wireless

GPRS

transport for services and applications that use IT protocols over the Internet

Channel partners Some of the company's key partners are Multitech, FW, encore networks, elster, Digi, CalAmp, B+B SmartWorx, ATrack, Gemalto, Novatel wireless, Sierra wireless, Thingworx, ublox, and Wind River.

Distribution partners The company has partnership with leading distributors for assisting in the procurement of M2M hardware for enterprise customers and M2M application solutions. Some of the partners include Arrow Electronics; Novotech; Braemac; RichardsonRFPD; and Premier wireless solutions.

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Kore in IT security sector Kore provides wireless network solutions for the M2M communications sector. It offers unified control and management solutions for cellular and satellite network service delivery in over 180 countries worldwide. It provides M2M wireless security solutions that are required for securing assets, people, and facilities. It combines dispatched voice and remote sensor data and still pictures or video services. Its remote M2M alarm monitoring system enables notifications to a mobile phone and false alarms to be disregarded without going to the location.

Acquisition In November 2014, Kore acquired RacoWireless which enabled it to become an independent provider of broad-based M2M service solutions worldwide. The company also has key relationships with global M2M service providers in Southeast Asia, which is one of the fastest developing markets for M2M technology. After the acquisition, the company will have offices in five countries and will have over 1,500 customers using services in more than 110 markets.

Recent developments Description 

August 3, 2015: Partners with Fargo telecom to extend its M2M offering to the Asian market



May 26, 2015: Launches position logic for APAC at CommunicAsia in Singapore



January 23, 2015: Partners with TCAM technology to promote its cellular M2M solutions



December 17, 2014: Partners with Xiamen four-faith communication technology to promote its cellular M2M solutions



February 4, 2014: Expands its operations into Japan by partnering with Micro Technology



November 11, 2014: Acquires RacoWireless (provides IoT and M2M solutions) as part of the company's expansion strategy

Key highlights

Key mergers and acquisitions

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Numerex Business overview Numerex was founded in 1992 and is headquartered in Atlanta, US. The company is a leading provider of interactive and on-demand M2M enterprise solutions. It offers hardware and smart devices, cellular and satellite network services, and software applications utilizing Numerex solution technology. It caters to diverse markets such as security, government, healthcare, energy and utilities, financial services, and transportation. As of December 31, 2014, the company recorded revenue of $93.87 million. It has 200 people employed as of March 4, 2015.

Business segmentation Numerex: Business segmentation Industrial IoT

Numerex

Asset ID and tracking

Supply chain and logistics

Remote monitoring and control

Safety and security

Industrial IoT Offers industrial IoT solutions for industrial and commercial businesses. It includes nxLink, nxLocate, nxDirector, and nxCloudconnect.

Security Provides uplink wireless security communicators for residential and commercial security and fire and integrator markets.

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Asset tracking Offers GPS tracking devices and software for applications such as remote asset management, GPS tracking, mapping, display, reporting, and data forwarding.

Vehicle intelligence/telematics Provides the FASTrack Fleet that includes a configurable web-based application, for flexible asset tracking and telematics.

Remote monitoring Offers remote monitoring and control for industries, including energy and power, oil and gas, agriculture, and water and waste management. It also provides wide area monitoring tools such as pipeline temperature sensors, pressure measuring points, and pulse generating sensors and applications such as flow monitoring and discrete level monitoring.

Network services Provides Numerex Global Gateway to secure M2M that helps to monitor, measure, and manage assets using a single-user interface and provides application platforms that enable and power solutions with global wireless network technologies. It also offers the Numerex WorldPass, a comprehensive suite of SMS services worldwide that provides delivery security of SMS messages to M2M devices and notifications to end users' cell phones.

Supply chain Offers sensors, network elements, and mobility and enterprise management interfaces to deliver a single source solution that can be integrated into a company's enterprise resource planning systems. It uses i-tank and i-manage solutions to monitor wireless tank level readings and route optimization for improving distribution optimization; and to optimize manufacturing and production by wireless tracking.

Custom solutions Provides an extensive range of wireless products and services for stationary monitoring and measuring and metering applications for asset tracking on a global scale.

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Geographical segmentation by revenue 2014 Numerex: Geographical segmentation by revenue 2014

ROW 2%

Canada 4%

US 94%

Source: Technavio, 2015

US In FY2014, the revenue generated was $88.2 million compared to $73.2 million in FY2013.

Canada In FY2014, the revenue generated was $3.8 million compared to $3.1 million in FY2013.

ROW In FY2014, the revenue generated was $1.9 million compared to $1.6 million in FY2013.

Numerex in IT security sector Omnilink Offers an electronic offender monitoring system that comprises OM400 GPS ankle bracelet with 2-way communication and the FocalPoint monitoring application.

Uplink Provides reliable security systems featuring a wireless alarm communicator. It enables users to turn lights on or off, lock doors, view live or archived video streams, and

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control other home alarm or automation features using tablet, computer, and smartphone.

myShield Offers mobile personal emergency response IoT solution for the safety of lone workers in hazardous locations. It provides instant access to a live operator via a one push panic button. In May 2014, the company acquired Omnilink systems, a provider of tracking and monitoring services for people and assets. The merger allows the company to expand its position in the tracking and monitoring market and security and safety segments.

Recent developments Description

Key



January 13, 2015: Receives the "Best Security Platform 2014" award from compass intelligence



December 5, 2015: Launches enhanced satellite data solution specifically targeted for its M2M products



November 19, 2014: Launches the AVID wireless portfolio of monitoring solutions preconfigured for oil and gas well sites



June 19, 2014: Receives the "2014 M2M Evolution Product of the Year" award from M2M Evolution Magazine

highlights

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PTC (Axeda) Business overview PTC was established in 1985 and is headquartered in Needham, Massachusetts, US. It develops technology solutions that comprise services and software. Its solutions enable customers to optimize business functions, including supply chain, engineering manufacturing, and service. In FY2014, the company spent $226.5 million on R&D. It reported net revenues of $1.29 billion in FY2013 and $1.36 billion in FY2014.

Product segmentation PTC: Product segmentation

CAD

Extended PLM

PTC

SLM and IoT

PTC global support

PTC global services

CAD PTC Creo Provides capabilities for design flexibility, advanced assembly design, piping and cabling design, advanced surfacing, comprehensive virtual prototyping, and other essential design functions. It helps to create, analyze, view, and leverage product designs downstream utilizing 2D CAD, 3D CAD, parametric, and direct modelling.

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PTC Mathcad This refers to engineering calculation software used for solving, analyzing, and sharing vital engineering calculations. It combines the familiarity and ease of an engineering notebook with the features of a dedicated engineering calculations application.

Extended PLM PTC windchill PLM software that offers complete lifecycle intelligence — from service to design. It offers a single repository for all product information.

PTC integrity This enables users to manage software configurations, system models, test plans and defects. It leads to improving productivity and quality, the gain of complete product visibility, and streamline compliance.

SLM and IoT PTC Axeda Enables integration of delivery, service planning, and analysis to enable a systematic approach for service lifecycle management as well as to optimize service outcomes for customer satisfaction. It allows customers to remotely service, manage, monitor, and control wired and wireless connected products and assets. It leads to reduction in field service visits and service costs, thereby improving product uptime and enabling service growth. Some of its core SLM products include: PTC arbortex: Provides an end-to-end dynamic publishing solution which streamlines how organizations manage, create, and publish technical information. PTC servigistics: Enables planning, delivering, and analyzing to improve performance of manufacturers and service providers.

Thingworx Provides an IoT platform that is designed to build and run IoT applications. It enables customers to securely connect products and devices to the cloud, and transform, intelligently process, organize, and store product and sensor data.

PTC global support Provides support plans for software products to customers globally. It also offers selfservice support tools that enable customers to have access to technical support information.

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PTC global services Provides training, consulting, and implementation services to customers through global service centers, and through third party resellers and strategic partners. It supports customers in improving product development performance with process improvement technologies.

Business segmentation by revenue 2014 PTC: Business segmentation by revenue 2014

Services 24%

Software products 76%

Source: Technavio, 2015

Software products Provides computer-based training products, and license and related support products. In FY2014, the segment recorded revenue of $1.03 billion, which accounted for 76% of the total revenue.

Services Provides training, implementation, consulting, and cloud services. In FY2014, the segment recorded revenue of $0.32 billion, which accounted for 24% of the total revenue.

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Business segmentation by revenue 2013 and 2014 PTC: Business segmentation by revenue 2013 and 2014 ($ in billions) 2.50

($ in billions)

2.00

1.50

1.03

1.00

0.50

0.98

0.32 0.32

0.00 Software products 2013

Services 2014

Source: Technavio, 2015

Software products In FY2014, the revenue generated was $1.03 billion compared to $0.98 billion in FY2013.

Services In FY2014, the revenue generated was $0.32 billion compared to $0.32 billion in FY2013.

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Geographical segmentation by revenue 2014 PTC: Geographical segmentation by revenue 2014 Japan 9%

Pacific Rim 11%

Americas 41%

Europe 39%

Source: Technavi,72 2015

Americas In FY2014, the revenue generated was $0.56 billion compared to $0.52 billion in FY2013. It was due to an increase of 8% in license revenue; 7% in support revenue; and 6% increase in service revenue.

Europe In FY2014, the revenue generated was $0.53 billion compared to $0.48 billion in FY2013. It was due to an increase in license revenue by 29% and 8% in support revenue.

Pacific Rim In FY2014, the revenue generated was $0.15 billion compared to $0.16 billion in FY2013. It was due to decrease in license revenue by 17%.

Japan In FY2014, the revenue generated was $0.12 billion compared to $0.13 billion in FY2013. It was due to unfavorable currency movements.

PTC in IT security sector The company has more than 1,300 service professionals and over 750 partners worldwide. It has operations in 30 countries, including the US, Mexico, Brazil, the UK,

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Ireland, Spain, France, Germany, India, Japan, China, and Australia. It serves over 28,000 customers globally. The company's product portfolio includes PTC Cero, PTC windchill, PTC arbortext, PTC Mathcad, PTC integrity, PTC servigistics, and ThingWorx. Its quality product includes PTC Requirements Management, PTC Windchill MPMLink, PTC Windchill PDMLink, PTC Windchill PDM Essentials, PTC Pro/INTRALINK, PTC Windchill Supplier Management, PTC Windchill FlexPLM, PTC Windchill ProjectLink, PTC PLM Cloud, PTC Windchill PartsLink Classification and Reuse.

Business strategy Operational strategy PTC focuses on undertaking strategic acquisitions as a part of its growth strategy to supplement and expand its business portfolio. In June 2014, the company acquired Atego, a European developer of model-based systems and software engineering applications, for approximately $46 million. This has enhanced its portfolio of ALM and PLM solutions. It also intends to reduce its cost structure and improve profitability.

Recent developments Description 

May 5, 2015: Partners with ServiceMax (a US-based provider of field service management solutions for technicians) to provide comprehensive and connected service solutions



May 5, 2015: Signs a definitive agreement to acquire ColdLight (a company that operates in big data machine learning and predictive analytics) for approximately $105 million



May 5, 2015: Launches version 6.0 of the ThingWorx platform (a secure and scalable IoT platform for building enterprise IoT applications)



March 2, 2015: Launches PTC Mathcad Prime 3.1 engineering calculation software



January 29, 2015: Introduces the ThingWorx-Axeda Integrator

Key highlights

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List of abbreviations

PART 17:

Appendix

AES

-

advanced encryption standard

ALM

-

asset lifecycle management

APJC

-

Asia Pacific, Japan, and China

ASA

-

advanced security appliances

B2B

-

business-to-business

CDMA

-

code division multiple access

EMV

-

Europay, mastercard, and visa

EPC

-

engineering, procurement and construction

ETSI

-

European telecommunications standards institute

2G

-

second-generation

3G

-

third generation

4G

-

fourth generation

GERAN

-

GSM EDGE radio access network

GPS

-

global positioning system

GPRS

-

general packet radio service

GRE

-

generic routing encapsulation

GSM

-

global system for mobile communication

HSPA

-

high speed packet access

HVAC

-

heating, ventilation, and air conditioning

IoT

-

Internet of things

IP

-

Internet protocol

IPS

-

intrusion prevention system

LTE

-

long term evolution

LSPs

-

logistics service providers

M-BUS

-

meter-bus

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MIMs

-

machine identification module

M2M

-

machine-to-machine

MNOs

-

mobile network operators

NaaS

-

network-as-a-service

NFC

-

near field communication

NGFW

-

next generation firewall

OEMs

-

original equipment manufacturers

PaaS

-

platform-as-a-service

PLC

-

programmable logic controller

PLM

-

product lifecycle management

POS

-

point of sale

RFID

-

radio-frequency identification

SaaS

-

software-as-a-service

SIM

-

subscriber identification module

SLM

-

service lifecycle management

SMEs

-

small and medium size businesses

SSL

-

secure sockets layer

SVR

-

stolen vehicle recovery

TCP

-

transmission control protocol

TISPAN

-

telecommunications and Internet converged services and protocols for advanced networking

UCS

-

unified computing system

UDP

-

user datagram protocol

UTRAN

-

universal terrestrial radio access network

VPN

-

virtual private network

WAP

-

wireless application firewall

WLAN

-

wireless local area network

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