McKinsey’s report in December 2014 “The Internet of Things – Sizing up the Opportunities” forecasted that by 2020 the global market for connected device would be between 20 billion and 30 billion units, up from 7 billion in 2013. This suggests an annual growth of 15%-20%. Data from Deutsche Bank’s 2014 “Internet of Things” Report resonated with the McKinsey’s numbers, putting the forecast between 18 billion to 26 billion units. In the same report, it was suggested that 2015-2017 is the best period to invest in IOT technologies, when the technology is at the through of Gartner’s Hype Cycle and products evolve into maturity.
A vast number of IOT applications will rely on wireless sensor networks for their functionality. Many deployments will likely be in remote areas with no readily available power source, requiring sensor nodes to go without a charge for days, weeks or even months. Some deployments will have the added challenge whereby they are in areas with limited network connectivity. As IOT pulls WSNs into the consumer domain, cost constraints will be an additional hurdle, requiring the new generation of sensors to not only be resource efficient but cost effective. This is where Ubisor’s low-power technology gains a competitive advantage. We have developed the hardware, software and database in-house, gaining experience from the world’s best research institutes and laboratories from the University of Cambridge, Oxford and UC Berkeley. We protect our technology and own several patents under the names of our founders.
Our target application is in road infrastructure and smart grids. Examples include:
· Noise monitoring (e.g. airports, hospitals)
· Traffic solutions (e.g. solving traffic congestion by monitoring vehicle and pedestrian traffic and altering traffic lights and speed limits)
· Street lights (e.g. adapt to weather conditions like fog or snow)
· Monitoring voltage peaks in grid networks
· Smart metering
We have piloted in London Underground and Scotland’s Forth Bridge.
Our target market is in China and the UK. In China, the Chinese government has outline a 5-year strategy to develop smart infrastructure and smart cities. Having analysed the government’s proposal, our team identified areas which demands are set to be growing, such as pollution (CO2, NOx) monitoring, average car speed on highways, temperature and road conditions monitoring (e.g. issue warnings when the road is frozen, especially in inland China during winters). In 2013, smart traffic applications in China have obtained investments up to 40.8 billion yuan, growing at 28.5% a year. Both McKinsey and Goldman Sach’s IOT report in 2014 confirmed this trend, stating and increasing usage of sensors on the road to make roads safer. For smart grids, McKinsey Global Institute estimated the market size will increase to $73 billion in 2020 from 33 billion in 2012. China’s investment in smart grids currently stands at 35 billion yuan. Our strategy to tackle the target market is to enter with a first-mover advantage, building up a supply chain and establish alliance with main players in the field.