Telecom Lead @ GSMA MOBILE ASIA EXPO 2012: Connected
devices in China will increase six fold from $116 billion in 2012 to $707
billion in 2020.
Connected devices, including smartphones, tablets,
consumer electronics and machine-to-machine (M2M) connectivity, are driving
advancement across Asia Pacific.
China’s growth in this segment leads all other countries
worldwide, according to a study by GSMA, in partnership with Machina Research.
China is not only the world’s largest mobile market,
with more than one billion total mobile connections, but is using this to its
advantage by creating new applications, products and services that can improve
people’s daily lives and advance its economy,” said Michael O’Hara, chief
marketing officer, GSMA.
The ability to locate and access vehicles and implement
real-time charging will spur the growth of car share schemes and hire/purchase
arrangements.
Built-in connectivity is predicted to become a must-have
for consumers in 2020, driven by the increasing demand for plug-in electric
vehicles. Together these two areas alone represent a US$198 billion business
impact for China’s automotive ecosystem in 2020.
In China, the value of connected security systems,
based on the cost of providing equivalent levels of cover without connectivity,
will be worth $62 billion in 2020.
Utilities and essential services market will be $37
billion in 2020. This market is fuelled by the need to reduce energy usage by
both consumers and businesses.
The region’s second leading Connected Life market, Japan
will unlock a business impact from connected devices of $344 billion in 2020.
While automotive and building security are two of the
largest connected industries in Japan, the leading segment in 2020 will be
assisted living. This reflects Japan’s huge requirement to find new solutions
to care for its aging population.
Enabling better care for older people at home, including
managing medications and people-tracking devices, will provide a $63 billion
business impact for Japan in 2020.
India’s connected devices market will be $128 billion in
2020.
India’s two largest connected industries, connected
vehicles and intelligent buildings, are consistent with China, but development
factors such as the comparative costs of M2M connectivity versus wages in India
mean that manual labor will continue to be used in place of technology-led
solutions up to 2020.
|
Country |
Overall Business Impact in 2012 (in US dollars) |
Overall Business Impact in 2016 (in US dollars) |
Overall Business Impact in 2020 (in US dollars) |
|
1. China |
116 billion |
365 billion |
707 billion |
|
2. Japan |
96 billion |
212 billion |
344 billion |
|
3. India |
23 billion |
66 billion |
128 billion |
|
4. South Korea |
39 billion |
72 billion |
98 billion |
|
Total Asia Pacific |
347 billion |
896 billion |
1.6 trillion |
|
North America |
277 billion |
703 billion |
1.2 trillion |
|
Europe |
286 billion |
637 billion |
1.1 trillion |
|
Latin America |
62 billion |
148 billion |
272 billion |
|
Africa |
19 billion |
55 billion |
114 billion |
|
Middle East |
19 billion |
53 billion |
109 billion |
The top industries to benefit from the Connected Life in
these four countries are:
|
Country |
Industry |
Business Impact by 2012 (in US dollars) |
Business Impact by 2016 (in US dollars) |
Business Impact by 2020 (in US dollars) |
|
China |
1. Connected Car |
12 billion |
62 billion |
149 billion |
|
2. Private Building Security |
10 billion |
29 billion |
62 billion |
|
|
3. Auto Lease/Rental Vehicles |
2 billion |
10 billion |
49 billion |
|
|
4. Smart Metering |
2 billion |
16 billion |
37 billion |
|
|
Japan |
1. Assisted Living |
2 billion |
22 billion |
63 billion |
|
2. Connected Car |
7 billion |
24 billion |
36 billion |
|
|
3. Private Building Security |
8 billion |
16 billion |
21 billion |
|
|
India |
1. Connected Car |
1 billion |
6 billion |
18 billion |
|
2. Private Building Security |
3 billion |
7 billion |
14 billion |
|
|
3. Telemedicine |
1 billion |
5 billion |
13 billion |
|
|
South Korea |
1. Connected Car |
2 billion |
7 billion |
11 billion |
|
2. Private Building Security |
6 billion |
9 billion |
10 billion |
|
|
3. Auto Insurance |
100 million |
2 billion |
5 billion |
|
|
Total Asia Pacific |
1. Connected Car |
29 billion |
127 billion |
273 billion |
|
2. Private Building Security |
32 billion |
72 billion |
127 billion |
|
|
3. Auto Lease/Rental Vehicles |
3 billion |
20 billion |
91 billion |
