A BUDDECOMM REPORT

GLOBAL SMART
INFRASTRUCTURE

PAVING THE WAY FOR SMART

NATIONS

BuddeComm
6th Edition Sample
Researchers:Kylie Wansink

Copyright 2017
th
Published 14 August 2017
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 Global Smart Infrastructure - Paving the Way for Smart Nations
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Various drivers are propelling Smart City developments

The impetuous towards developing Smart Cities can be driven by a number of factors. It may be that
citizens, who have increasingly becoming accustomed to the convenience of services being made
available through the internet and through apps on their smart phones and tablets become frustrated
when ICT services and infrastructure aren’t keeping up. This in turn places pressure on Governments
and operators to improve the situation which leads to looking at the infrastructure issues of a
community from a holistic view.

The economy is another driver of Smart City initiatives. In many areas the cost of running the society
and the economy has risen to unsustainable levels. At the same time, modern technology can reduce
these costs and the organisations, companies and cities that are harnessing this are able to be far more
competitive. On a city level, cities will need to be able to facilitate this in order to attract new
investments, new jobs, new citizens and new developments. Modern technology provides citizens,
companies and investors with far greater flexibility to choose between cities, both nationally and
internationally. We see what can be achieved – for instance, in Glasgow in the UK and Newcastle in
Australia.

Perhaps the best illustration of a Society being the main driver is China, where there is enormous
investment in smart cities occurring; simply because many of these cities are perceived by their citizens
to be unacceptable places to live. The increase in health costs and economic losses is now such that
smart city developments are at the head of the list of most of the top 100 cities in that country.
Social, technological and economic developments have accelerated over the last 200 years to such an
extent that they are moving faster than the ‘normal evolutionary processes’. Technological advances in
M2M, IoT and data analytics are perhaps the only developments that will be able to keep pace with
these changes, creating a world with more intelligent and smarter communities.

BuddeComm Sample
Key developments:
 There is a growing trend towards Urbanisation and in 2017 there are now more citizens living in
cities than in rural areas.
 The home is considered by many as the next battlefield for technology companies, where all home
devices would connect in an Internet-of-Things controlled by a smartphone or tablet.
 M2M connections linked to Smart/connected cities will have one of the fastest growths (CAGR)
through to 2021.
 With energy consumption expected to grow worldwide by more than 40% over the next 25 years,
demand in some parts of the world could exceed 100% in that time. This will produce an increase
in competition for resources, resulting in higher costs. In an environment such as this; energy
efficiency will become even more important and there will be a growing urgency for Smart Energy
development.
 Development of Smart Transport technologies and strategies is well underway in many parts of the
world. Smart vehicles in particular have become a very popular sector for innovation with not only
the large car companies having a hand in this; but also, the Internet technology enterprises like
Google.

Kylie Wansink
August 2017

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 Global Smart Infrastructure - Paving the Way for Smart Nations
TABLE OF CONTENTS

TABLE OF CONTENTS
Chapter number: on page number:

1. SMART INFRASTRUCTURE TRANSFORMATION ....................................................1

1.1 Cities and Communities Undergo Transformation....................................................1
1.1.1 Defining smart cities
1.1.1.1 Key components of Smart Cities
1.1.1.2 Smart Factory – Industry 4.0
1.1.2 Smart city challenges becoming clearer
1.1.2.1 Holistic approach still needed
1.1.2.2 The funding dilemma
1.1.3 PPPPs – cities collaborating with citizens and private enterprise
1.1.4 The drivers behind smart cities
1.1.4.1 Customer-driven smart cities
1.1.4.2 Economy-driven smart cities
1.1.4.3 Society-driven smart cities
1.1.4.4 Urbanisation
1.1.4.5 Greenfield opportunities
1.1.4.6 Brownfield challenges
1.1.5 Published smart city statistics
1.1.6 Smart city apps
1.1.7 The use of telecommunications in smart cities
1.1.7.1 Sensors may be key to truly smart cities
1.1.7.2 Connected lifestyle
1.1.8 Smart buildings
1.1.8.1 Developments still hampered by silo thinking
1.1.8.2 The need for a smart building platform
1.1.8.3 How to make buildings smarter

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1.1.8.3.1 Existing data management
1.1.8.3.2 Plan for the future
1.1.8.3.3 Big data management
1.1.9 Smart Cities and the open data dilemma
1.1.10 Connected homes still have a way to go
1.1.10.1 Waiting 30 years for smart homes and still counting
1.1.10.2 Home Area Networks (HANs)
1.1.11 Alphabet, Microsoft, Samsung and Apple target smart Home market
1.1.11.1 Why solar may not be the biggest threat to energy utilities
1.1.12 Standards
1.1.13 Smart Cities, Smart Councils
1.1.13.1 Mayors taking the lead in building smart cities
1.1.13.2 Governments fail to build national consensus
1.1.13.3 People are ready for smart environments
1.1.13.4 Cities are leading where national policies fail
1.1.13.5 The need for leadership from the top and ‘smart councils’
1.1.14 Rhineland economic model is closest to smart city developments
1.1.15 Leading smart cites and communities
1.1.15.1 Brief case study: China
1.1.16 A great city is much more than a smart city

2. SMART ENERGY ............................................................................................................27

2.1 Smart Grids and Smart Meters Trends and Analysis ..............................................27
2.1.1 Introduction
2.1.1.1 Historical overview
2.1.1.2 The current market
2.1.2 Radical changes for electricity utilities
2.1.3 The future of the electricity industry

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2.1.4 Market analysis 2017

2.1.4.1 The grid itself is slowly becoming smarter
2.1.4.2 Electricity utilities and IoT
2.1.4.3 Progress hampered by lack of smart energy policies
2.1.4.4 Consequences for the electricity industry
2.1.4.5 A perfect storm
2.1.5 The second phase: Smart Grid 2.0
2.1.5.1 Escalating costs beyond the meter
2.1.6 Key trends and Developments
2.1.6.1 The effect of storage technologies on smart grids
2.1.6.2 Resource and energy management are hot issues all around the world
2.1.6.3 Energy Internet of Things
2.1.6.4 Transactive Energy
2.1.6.5 Smart grids and blockchains
2.1.7 Strategic mistakes from governments and the energy industry
2.1.7.1 This is resulting in a rethink and a regrouping
2.1.8 Where are the government leaders?
2.1.8.1 No smart grids without government leadership
2.1.8.2 Confusion regarding regulations
2.1.8.3 Muni Smart Grids
2.1.9 Smart energy for the future
2.1.10 Smart grid vision
2.1.10.1 Smart grids in need of strategic plans
2.1.10.2 Trans-sector policies and an holistic approach required
2.1.11 Smart grid benefits and challenges
2.1.11.1 Smart grid cyber security
2.1.12 Global smart meter market
2.1.12.1 Remember the consumer
2.1.13 A concept, not a single technology
2.1.14
2.1.14.1
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M2M is a key component
From SCaDa to IoT
2.1.14.2 Low power wide area (LPWA) networks

3. INTELLIGENT TRANSPORT SYSTEMS AND DRONES ..........................................51

3.1 Smart Transport Trends and Analysis .....................................................................51
3.2 Smart transport – introduction .................................................................................51
3.3 Smart vehicles ...........................................................................................................51
3.4 Autonomous car market............................................................................................52
3.4.1 Market statistics
3.4.2 Regulatory development
3.4.3 Autonomous driving available in some new car models
3.4.3.1 General Motors
3.4.4 IoT and autonomous cars
3.4.5 Personal Rapid Transit (PRT)
3.5 Electric vehicles.........................................................................................................55
3.5.1 NASA’s autonomous EV
3.5.2 Wireless charging
3.5.3 Connected car market
3.5.3.1 Connected vehicle cloud
3.5.4 The upcoming electric vehicle tsunami
3.5.4.1 Vehicle to Grid (V2G)
3.5.4.1.1 Nearly 100,000 vehicles to be enabled with V2G technologies by 2017
3.6 Dedicated Short-Range Communications ................................................................59
3.7 Freight in the digital age...........................................................................................60
3.8 Further smart transport project examples................................................................61
3.8.1 The highway of the future – Oss, The Netherlands
3.8.1.1.1 Energy systems

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3.8.1.1.2 A smart road

3.8.2 Smart streetlights: gateway to smart cities
3.8.3 Smart parking - SFpark
3.8.4 Google Traffic
3.8.5 Vehicle telematics
3.8.6 e-Call
3.9 Drones and Unmanned Aircraft ...............................................................................64
3.9.1 Drone companies become hot property
3.9.2 Facebook testing internet delivery drone
3.10 Examples of applications for drones ....................................................................65
3.10.1 Drones for Wind Turbine Inspection
3.10.2 Mobile network testing using drones
3.10.3 Drones used for reforestation
3.10.4 The ambulance drone
3.10.5 Drones trialled in fighting bushfires
3.10.6 Google Titan Drones and Loon Balloons
3.10.7 Drones delivering medicines in PNG

4. ARTIFICIAL INTELLIGENCE .....................................................................................69

4.1 Smart Societies based on Artificial Intelligence ......................................................69
4.1.1 The proposition
4.1.1.1 AI – don’t expect a revolution
4.1.1.1.1 Key recent developments since 2000
4.1.1.2 Creating an ethical path for AI
4.1.2 Philosophy and science
4.1.3 Social and economic developments
4.1.4 Are we reaching another breaking point?
4.1.5
BuddeComm Sample
Solutions by using information technology to increase our intelligence
4.1.5.1 Silos need to be replaced by trans-sector thinking
4.1.5.2 Disintermediation brings people closer together
4.1.5.3 ICT - assisting in creating a global brain
4.1.5.4 Cognitive Systems
4.1.5.4.1 Need for cognitive systems
4.1.6 Examples of developments
4.1.6.1 Tensorflow
4.1.6.2 Watson – cognitive computing
4.1.6.3 Deep learning
4.1.6.4 Angelina
4.1.6.5 Cognitive Engine
4.1.7 Robots vs the sharing economy
4.1.8 Conclusion

5. M2M AND IOT ................................................................................................................86

5.1 Internet of Everything and Machine-to-Machine Trends and Analysis .................86
5.1.1 Analysis of the M2M and IoT market
5.1.1.1 Key issues that will make or break the M2M market
5.1.1.2 M2M hype and reality
5.1.2 OECD report on internet of things and M2M
5.1.2.1 New Technology
5.1.2.2 New Markets
5.1.2.3 New Policies
5.1.3 Global M2M market
5.1.3.1 Low power wide area (LPWA) networks
5.1.3.2 M2M and connected devices
5.1.3.2.1 Published M2M statistics
5.1.3.2.2 M2M is already bigger than you think

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5.1.4 Internet of ‘Things’ (IoT)

5.1.4.1 IoT transforming product-based economies to ones based on services
5.1.4.2 Who will dominate the IoT market?
5.1.4.3 IoT industry statistics
5.1.5 IoT standardisation developments
5.1.5.1 The OneM2M initiative
5.1.5.1.1 Release 2
5.1.5.2 GSMA establishes Mobile IoT Initiative
5.1.5.3 Will Google's Brillo and Weave change the IoT model?
5.1.6 Telcos and the science of Big Data
5.1.6.1 How to manage and secure Big Data
5.1.7 Sensors
5.1.7.1 From SCaDa to IoT
5.1.7.2 Sensor applications for a smarter world
5.1.7.2.1 Smart cities
5.1.7.2.2 Smart environment
5.1.7.2.3 Smart water
5.1.7.2.4 Smart metering
5.1.7.2.5 Security and emergencies
5.1.7.2.6 Retail
5.1.7.2.7 Logistics
5.1.7.2.8 Industrial control
5.1.7.2.9 Smart agriculture
5.1.7.2.10 Smart animal farming
5.1.7.2.11 Domestic and home automation
5.1.7.2.12 E-health
5.1.7.3 Micro-electronic-mechanical devices
5.1.7.4 Nanotechnology
5.1.7.5 Commercial IoT products
5.1.8
5.1.8.1
5.1.8.2
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Radio-frequency identification (RFID)
RFID – a business revolution
Rapidly maturing technology
5.1.8.3 Spectrum allocation
5.1.9 Application examples
5.1.9.1 Cyber-physical systems
5.1.9.2 OpenFlow – the programmable network revolution
5.1.9.3 Behavioural Attitudinal Geolocation
5.1.9.4 Deep Packet Inspection (DPI)
5.1.9.5 Ubiquitous Complex Event Processing (U-CEP)
5.1.9.6 Cognitive/neuromorphic computing
5.1.9.7 E-Science
5.1.9.7.1 Citizens E-Science
5.1.9.8 Wireless Networks
5.1.9.9 Smart grids
5.1.9.10 Smartphones and game consoles
5.1.9.11 IPv6
5.1.9.12 Opportunistic computing
5.1.9.13 Blockchain and Smart Contracts – building on the Bitcoin platform
5.1.10 Conclusion: Connected lifestyle

LIST OF TABLES
Table number: on page number:
Table 1 – Examples of analysts’ estimates on world Smart City investments ............................8
Table 2 - Consumers rank the most useful mobile app categories by country ...........................9
Table 3 - Consumers rank the most useful mobile app categories by age .................................9
Table 4 – Leading smart cities by region - 2017 ......................................................................24
Table 5 - International electricity price table comparison – 2015...........................................35
Table 6 – Global smart meter shipments – 2013 - 2016 ..........................................................46

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TABLE OF CONTENTS

Table 7 - Selection of predictions in BT’s timeline ..................................................................78

Table 8 - Machine-to-machine applications and technologies, by dispersion and mobility ....90
Table 9 – Global M2M module shipments – 2015; 2020 .........................................................94
Table 10 – Global RFID market value – 2013-2015; 2020 ...................................................107
Table 11 – Global RFID tag sales – 2013-2016 ....................................................................107

LIST OF EXHIBITS
Exhibit number: on page number:
Exhibit 1 – Statistical overview ..................................................................................................1
Exhibit 2 - Design principles of industry 4.0 ..............................................................................2
Exhibit 3 – The Intelligent Communities Forum ........................................................................3
Exhibit 4 – Are Blockchains the Solution to financing Smart Cities ..........................................4
Exhibit 5 – Examples of HAN technology options ....................................................................17
Exhibit 6 – Key smart home players .........................................................................................18
Exhibit 7 - International Smart Grid Action Network ..............................................................28
Exhibit 8 - ITU approves smart grid standards ........................................................................41
Exhibit 9 – Smart grid applications..........................................................................................43
Exhibit 10 – Global Smart Grid Federation (GSGF) ...............................................................44
Exhibit 11 – Challenges smart grids can address ....................................................................45
Exhibit 12 – Examples of leading smart meter players ............................................................46
Exhibit 13 – Replacing old electricity meters ...........................................................................47
Exhibit 14 - Smart grid as a cloud service ...............................................................................48
Exhibit 15 - Weightless SIG ......................................................................................................49
Exhibit 16 – Examples of PRT/GRT systems ............................................................................54
Exhibit 17 - Learning from e-cars ............................................................................................55
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Exhibit 18 – Intelligent transport systems today ......................................................................60
Exhibit 19 – USA – The I-80 Integrated Corridor Mobility Project ........................................60
Exhibit 20 – In-car information ................................................................................................62
Exhibit 21 – From data analytics to Artificial Intelligence (AI) ..............................................69
Exhibit 22 – Watson in healthcare ...........................................................................................81
Exhibit 23 – Harvesting energy from radio frequency .............................................................91
Exhibit 24 – Weightless SIG .....................................................................................................92
Exhibit 25 – The first major M2M alliances.............................................................................93
Exhibit 26 – Amazon Dash Button..........................................................................................104
Exhibit 27 – RFID spectrum frequencies and application examples .....................................109
Exhibit 28 – Lifetime customer relationships .........................................................................112

For a full overview of our Global Markets, see our other BuddeComm reports:
 Global Digital and Mobile Media - Video Streaming, Smart TV and Entertainment Industries
 Global Digital and Sharing Economy - The E-commerce and M-Commerce Transformation
 Global Digital Economy - E-Health, E-Education and E-Government Trends
 Global Fixed Broadband Market - Trends, Statistics and Progress
 Global Mobile Communications and Mobile Broadband - Analyses and Statistics
 Global Mobile Operators - Regional Leaders - Overview and Statistics
 Global Smart Infrastructure - Paving the Way for Smart Nations
 Global Telecoms Trends in 2018 – Mobile Infrastructure, Fixed Broadband, Internet of Things,
Video-Streaming and Smart Cities.

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 Global Smart Infrastructure - Paving the Way for Smart Nations
Smart energy

smart grid cyber-security in 2012, holding % market share, followed by Europe ( %) and Asia
Pacific ( %).

However, by 2020 this trend is expected to have turned around with Asia Pacific expected to have the
largest share ( %) while North America and Europe will both have less than %.

Key companies competing for this market include IBM, ViaSat, Cisco, SAIC, Black and Veatch,
Lockheed Martin and Siemens.

2.1.12 Global smart meter market

Overall, the smart meter market is still on the rise, although growth slowed in North America in 2013
due partly to federal funding in the USA reaching an end. It increased again in 2014 however on the
back of Asian suppliers targeting the market more aggressively and China performing a number of
upgrades on ageing infrastructure based on electromechanical meters.

In 2017 around % of the installed base of smart meters existed in North America, Western Europe,
and East Asia. Global smart meter shipments are forecast to continue to grow through to 2018 when it
is thought the market will stabilise.

In-Stat research forecast worldwide smart meter revenues would eclipse $ billion by 2016, the vast
majority ZigBee-enabled. ZigBee has been considered the front-running short range connectivity
option for smart grid since its inception, and has maintained its position so far. While the number of
ZigBee clients in homes to date is relatively small, In-Stat believes that ZigBee will maintain its
dominance. In contrast, a 2016 report by Navigant Research found that global smart meter revenue in
2016 reached $ billion and would rise to $ billion in 2025.

Table 6 – Global smart meter shipments – 2013 - 2016

Year
BuddeComm Sample Shipments
(million)
2013
2014
2015
2016 (e)
(Source: BuddeComm estimates based on various industry data, 2016)
Note: Table reviewed August 2017.

Exhibit 12 – Examples of leading smart meter players

Some of the leading smart meter manufacturers include:
 ABB
 Aclara Technologies LLC
 Itron
 Echelon Corporation
 Elster Group
 General Electric (GE)
 GmbH
 Holley Metering Limited
 Iskraemeco
 Itron
 Kamstrup A/S
 Landis+Gyr
 Schieder Electric
 Sensus
 Siemens
(Source: BuddeComm, 2017)

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 Global Smart Infrastructure - Paving the Way for Smart Nations
Intelligent transport systems and drones

 Morgan Stanley estimates that autonomous cars could save the US $ trillion annually by
lowering fuel consumption ($ billion), reducing crash costs ($ billion), and boosting
productivity ($ billion).

3.4.2 Regulatory development

Regulatory developments are underway. In 2011, for example, The US state of Nevada passed a law
which instructed the Nevada regulator to write regulations concerning the operation of driverless cars.
In 2016 the Department of Motor Vehicles in California was redrafting regulations to allow for
driverless cars in the future.

3.4.3 Autonomous driving available in some new car models

The first combinations of advanced driver assistance features became available in some 2016 vehicle
models and offer semi-autonomous driving under specific circumstances. Cars will soon have the
ability to cruise on freeways and safely navigate traffic jams with minimal driver input. As a result of
increasing volumes and technology improvements, as well as cost reductions, it is now feasible to
install the multiple sensors necessary for such capability.

The industry consensus is that more comprehensive self-driving features will be brought to market by
2020. Such features will enable more complex automated driving, but still require some supervision by
a competent driver. However, the obstacles to autonomous functionality are not all technological.

While more testing is still needed to develop robustness, the biggest practical hurdles to clear before
the rollout of self-driving vehicles to the public are related to liability, regulation, and legislation. In the
long term, though, autonomous vehicle technology has the potential to institute major change in
personal mobility, particularly in large cities. According to Navigant Research, 85 million autonomous-
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capable vehicles are expected to be sold annually around the world by 2035.

3.4.3.1 General Motors

By late 2015 General Motors (GM) had around 1 million 4G LTE vehicles on the road. GM is truly
transforming the connected vehicle experience across the board, recognizing that today’s consumers
not only want a reliable, comfortable vehicle, but also demand a full array of services to enhance
experiences for both driver and passenger – from safety to entertainment, to integration of other
applications and devices.

They are offering connected services that include communication, security, emergency assistance, turn-
by-turn navigation, remote diagnostics, plus a range of infotainment services, including streaming
audio and video for backseat passengers. In addition to the fast and reliable 4G LTE connections that
will ultimately be made available worldwide, GM is transforming millions of its cars and trucks into
Wi-Fi hotspots.

And, as part of its complete in-vehicle mobile experience, GM offers a wide selection of applications
that are deeply integrated into the vehicle’s sensors and telematics systems through the connected car
APIs.

3.4.4 IoT and autonomous cars

Along with the increase in the use of transportation around the world and the accompanying massive
increase of vehicles on the road we will no doubt see a further increase in the 1+ million road fatalities
every year.

Of these accidents, more than 90% are due to human error.

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M2M and IoT

 At present, a majority of LPWA networks operate in licence-exempt spectrum, primarily in sub-

GHz bands. There are a number of ongoing initiatives that call for regulators to dedicate spectrum
bands exclusively for LPWA networks, as mass market adoption of unlicensed LPWA networks
can result in significant interference.
 Besides optimising their cellular networks for M2M services, mobile operators are increasingly
investing in their own carrier-grade LPWA networks to support low bandwidth IoT applications.

Despite new developments in IoT, M2M and 5G, LPWA is set to maintain its position as a technology
for a particular-use case at a particular price point.

Nevertheless, LPWA IoT is also seen by the mobile industry as a lucrative new area and the 3GPP
standardisation organisation for the mobile industry has accepted three of their own technology
proposals as standards for the narrowband low power wide area networking for the internet of things,
addressing the issues of both fragmentation and interference problems linked to the use of unlicensed
spectrum

The three technologies are: NB-IoT, EC-GPRS and LTE-MTC.

NB-IoT and EC-GPRS are accepted methods for machine-type communications within the GSMA.
LTE-MTC offers another approach that was previously limited to applications few and far between.
Hence LTE-MTC’s inclusion by the 3GPP opens up the possibility that other LPWA proposals, such as
LTE Category 0/1, as well as proprietary offerings like SigFox and LoRA, could still be included as
part of future IoT networking standards.

GSMA’s backing of the 3GPP’s view obviously gives the decision a lot of weight, effectively pulling
the entire mobile industry behind the three included standards, and leaving out all other proposals.

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5.1.3.2 M2M and connected devices
In a way, M2M is a subset of the sensing and monitoring ecosystem as it excludes devices that are
monitored and controlled directly by people. Central servers and multiple devices that do not require
direct human interaction fall into the M2M definition. There are forecasts of M2M device numbers in
orders of magnitude greater than that of today’s personal devices, which are already pushing 7 billion.
While there are about million cellular M2M connections in the world, this is expected to increase
to million by 2020. Some bullish forecasts are in the tens of billions of connected devices by 2020.

The M2M value chain is a complex one in which variable end-to-end solutions may involve multiple
vendors and operators. The chain includes sensors to make measurements, embedded modules or
devices to transmit the data, communications networks to carry data, and middleware platforms and
application software to convert data into useful information.

Exhibit 25 – The first major M2M alliances

The mid 2012 M2M alliance between seven major telcos from around the world demonstrated the
importance of M2M for the future of telecoms. Known as the M2M multi-operator alliance; the
partnership aims to provide multinational corporations with seamless global M2M services. It initially
included NTT Docomo, SingTel, Telstra, Telefonica, Vimpelcom, KPN plus Rogers of Canada and in
2013 Etisalat joined the alliance. Telenor Connexion also joined in 2014 and it became known as the
M2M World Alliance [www.m2mworldalliance.com].

5.1.3.2.1 Published M2M statistics

 A study by Technavio, found that the global cellular M2M connections and services market would
grow at a CAGR of almost % between 2016-2020.
 A further Technavio study also established that the global satellite M2M sector would see
connections rise by a CAGR of % and services by % between 2016 and 2020.
 In 2016 there were around million M2M connections worldwide.

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 Global Smart Infrastructure - Paving the Way for Smart Nations
M2M and IoT

RFID is used:
 in industry to assist in production line management, especially in harsh environments;
 to track vehicles, for example for controlled entry and to speed up toll collection;
 to track animals for livestock management and feeding programs, and for environmental research
and monitoring;
 improving point of sale processes;
 fraud prevention.

Other potential uses include medical care applications, although in mid-2008 the Journal of the
American Medical Association published an article claiming that the use of RFID systems in hospitals
may not be completely safe and may in fact disrupt medical equipment such as pacemakers and dialysis
machines.

In 2007, smaller and more flexible chipset modules were developed that reduced the size of the RFID
readers and brought overall costs down. Collaboration between NFC companies, mobile phone
manufacturers and RFID vendors has recently moved a step closer with the formation of various
strategic alliances between industries.

Table 10 – Global RFID market value – 2013-2015; 2020

Market value
Year
($ billion)
2013
2014
2015
2020
(Source: BuddeComm based on IDTechEx, 2015)
Note: 1Includes tags, readers and software/services for RFID devices for both passive and active RFID.
2
Table updated February 2017.

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In 2016 over 10 billion RFID tags were expected to be sold globally.

Table 11 – Global RFID tag sales – 2013-2016

Tag sales
Year
(billion)
2013
2014
2015
2016 (e)
(Source: BuddeComm based on IDTechEx, 2015)
Note: 1Includes tags, readers and software/services for RFID devices for both passive and active RFID.
2
Table updated February 2017.

5.1.8.1 RFID – a business revolution

RFID tags have had profound impact in many industries that are often not easily seen. The way cars are
manufactured, for example, could not be possible without automated RFID triggers. Tollways are
another example we take for granted - simply being able to pass through gates at high speed with
accurate reading.

RFID is more than a fancy barcode. Tagging an object can enable an information pedigree in a manner
that can be read from a distance, using a signal transmitted from a reader, and takes product quality and
visibility to a new level. Tags can be embedded in almost any object, placed on a pallet or container;
and can even be incorporated into packaging materials such as cardboard boxes or printed labels.
Likely you have one in your pocket right now - your car key fob!

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