iot internet of things

I n t e r n a t i o n a l T e l e c o m m u n i c a t i o n U n i o n ITU IN TE R N E T R E P O R TS 2 0 0 5 The Internet ofThe Internet of ThingsThings EX EC U TI V E S U M M A R Y www.itu.int/internetofthings/ Printed in Switzerland Geneva, 2005 The Internet of Things www.itu.int/internetofthings/ This ITU Internet Report, the seventh in the series, has been produced by the ITU Strategy and Policy Unit (SPU). 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ITU Internet Reports 2005: The Internet of Things Executive Summary November 2005 © ITU, 2005 International Telecommunication Union (ITU), Geneva This Executive Summary provides a brief résumé of the ITU report “The Internet of Things”, which has been specially prepared for the World Summit on the Information Society held in Tunis, 16-18 November 2005. It includes a selection of tables, illustrations and analysis of the full report, which can be purchased online or in printed copy. For further information, please visit the website at: www.itu.int/internetofthings. This report is the latest in the “ITU Internet Reports” series, which includes the following titles: • The Portable Internet (2004) • The Birth of Broadband (2003) • Internet for a Mobile Generation (2002) • IP Telephony (2001) • Internet for Development (1999) • Challenges to the Network: Telecommunications and the Internet (1997) Each of these publications is available for purchase online from the ITU website at: www.itu.int/osg/spu/publications for CHF 100. Printed copies are also available from the ITU Sales Service (www.itu.int/publications, Fax: +41 22 730 51 94, e-mail: sales@itu.int), with reductions for ITU Member States and Sectors Members, and for purchasers from the least developed countries (LDC). The full report (approximately 130 pages) gives an in-depth introduction to the Internet of Things and its effect on businesses and individuals around the world. It contains information on key emerging technologies, market opportunities and policy implications. A 65-page statistical annex to the report presents the latest available data on over 200 economies worldwide. The report was prepared by a team from the ITU Strategy and Policy Unit (SPU). Much of the original research was carried out for workshops under the ITU New Initiatives Programme, with generous funding from a number of ITU Member States, including MIC (Japan). The views expressed in the report are those of the authors and do not necessarily reflect the opinions of ITU or its membership. Contents Page About the Report.................................................................................... 1 1 What is the Internet of Things?.............................................................. 2 2 Technologies for the Internet of Things................................................. 3 3 Market Opportunities ............................................................................. 6 4 Challenges and Concerns....................................................................... 8 5 Implications for the Developing World ................................................. 10 6 2020: A Day in the Life ......................................................................... 12 7 A New Ecosystem.................................................................................. 13 Table of Contents................................................................................... 16 ITU Internet Reports 2005: The Internet of Things – Executive Summary 1 About the Report “The Internet of Things” is the seventh in the series of ITU Internet Reports originally launched in 1997 under the title “Challenges to the Network”. This edition has been specially prepared for the second phase of the World Summit on the Information Society (WSIS), to be held in Tunis, 16-18 November 2005. Written by a team of analysts from the Strategy and Policy Unit (SPU) of ITU, the report takes a look at the next step in “always on” communications, in which new technologies like radio-frequency identification (RFID) and smart computing promise a world of networked and interconnected devices. Everything from tyres to toothbrushes might soon be in communications range, heralding the dawn of a new era; one in which today’s Internet (of data and people) gives way to tomorrow’s Internet of Things. The report consists of six chapters as follows: • Chapter one, Introducing the Internet of Things, explores the key technical visions underlying the Internet of Things, such as ubiquitous networks, next-generation networks and ubiquitous computing; • Chapter two, Enabling Technologies, examines the technologies that will drive the future Internet of Things, including radio-frequency identification (RFID), sensor technologies, smart things, nanotechnology and miniaturization; • Chapter three, Shaping the Market, explores the market potential of these technologies, as well as factors inhibiting market growth. It looks at new business models in selected industries to illustrate how the Internet of Things is changing the way firms do business; • Chapter four, Emerging Challenges, contemplates the hurdles towards standardization and the wider implications of the Internet of Things for society, such as growing concerns over privacy; • Chapter five, Opportunities for the Developing World, sets out some of the benefits these technologies offer to developing countries that may themselves become lead users and drivers of the market; • Chapter six, The Big Picture, draws these threads together and concludes on how our lifestyles may be transformed over the next decade. The Statistical annex presents the latest data and charts for more than 200 economies worldwide in their use of ICTs. This Executive Summary, published separately, provides a synopsis of the full report, which is available for purchase (at the catalogue price of CHF 100) on the ITU website at www.itu.int/publications under General Secretariat. ITU Internet Reports 2005: The Internet of Things – Executive Summary 2 1 What is the Internet of Things? We are standing on the brink of a new ubiquitous computing and communication era, one that will radically transform our corporate, community, and personal spheres. Over a decade ago, the late Mark Weiser developed a seminal vision of future technological ubiquity – one in which the increasing “availability” of processing power would be accompanied by its decreasing “visibility”. As he observed, “the most profound technologies are those that disappear…they weave themselves into the fabric of everyday life until they are indistinguishable from it”. Early forms of ubiquitous information and communication networks are evident in the widespread use of mobile phones: the number of mobile phones worldwide surpassed 2 billion in mid-2005. These little gadgets have become an integral and intimate part of everyday life for many millions of people, even more so than the internet. Today, developments are rapidly under way to take this phenomenon an important step further, by embedding short-range mobile transceivers into a wide array of additional gadgets and everyday items, enabling new forms of communication between people and things, and between things themselves. A new dimension has been added to the world of information and communication technologies (ICTs): from anytime, any place connectivity for anyone, we will now have connectivity for anything (Figure 1). Connections will multiply and create an entirely new dynamic network of networks – an Internet of Things. The Internet of Things is neither science fiction nor industry hype, but is based on solid technologi- cal advances and visions of network ubiquity that are zealously being realized. Over a decade ago, the late Mark Weiser developed a seminal vision of future technological ubiquity – one in which the increasing “availability” of processing power would be accompanied by its decreasing “visibility” Any TIME connection Any THING connection Any PLACE connection • On the move • Outdoors and indoors • Night •Daytime • Between PCs • Human to Human (H2H), not using a PC • Human to Thing (H2T), using generic equipment • Thing to Thing (T2T) • On the move • Outdoors • Indoors (away from the PC) • At the PC Any TIME connection Any THING connection Any PLACE connection • On the move • Outdoors and indoors • Night •Daytime • Between PCs • Human to Human (H2H), not using a PC • Human to Thing (H2T), using generic equipment • Thing to Thing (T2T) • On the move • Outdoors • Indoors (away from the PC) • At the PC Figure 1 – A new dimension Source: ITU adapted from Nomura Research Institute ITU Internet Reports 2005: The Internet of Things – Executive Summary 3 2 Technologies for the Internet of Things The Internet of Things is a technological revolution that represents the future of computing and communications, and its development depends on dynamic technical innovation in a number of important fields, from wireless sensors to nanotechnology. First, in order to connect everyday objects and devices to large databases and networks – and indeed to the network of networks (the internet) – a simple, unobtrusive and cost-effective system of item identification is crucial. Only then can data about things be collected and processed. Radio-frequency identification (RFID) offers this functionality. Second, data collection will benefit from the ability to detect changes in the physical status of things, using sensor technologies. Embedded intelligence in the things themselves can further enhance the power of the network by devolving information processing capabilities to the edges of the network. Finally, advances in miniaturization and nanotechnology mean that smaller and smaller things will have the ability to interact and connect (Figure 2). A combination of all of these developments will create an Internet of Things that connects the world’s objects in both a sensory and an intelligent manner. Indeed, with the benefit of integrated information processing, industrial products and everyday objects will take on smart characteristics and capabilities. They may also take on electronic identities that can be queried remotely, or be equipped with sensors for detecting physical changes around them. Eventually, even particles as small as dust might be tagged and networked. Such developments will turn the merely static objects of today into newly dynamic things, embedding intelligence in our environment, and stimu- lating the creation of innovative products and entirely new services. RFID technology, which uses radio waves to identify items, is seen as one of the pivotal enablers of the Internet of Things. Although it has sometimes been labelled as the next-generation of bar codes, RFID systems offer much more in that they can track items in real-time to yield important Figure 2 – Miniaturization towards the Internet of Things Source: ITU “Ubiquitous Network Societies and their impact on the telecommunication industry”, April 2005, available at www.itu.int/ubiquitous Time M i n i a t u r i z a t i o n a n d c o s t r e d u c t i o n (2) PCs (1) Mainframe (4) Smart Things (3) Mobiles / Smart Cards Time M i n i a t u r i z a t i o n a n d c o s t r e d u c t i o n Time M i n i a t u r i z a t i o n a n d c o s t r e d u c t i o n (2) PCs(2) PCs (1) Mainframe(1) Mainframe (4) Smart Things(4) Smart Things (3) Mobiles / Smart Cards (3) Mobiles / Smart Cards ITU Internet Reports 2005: The Internet of Things – Executive Summary 4 information about their location and status. Early applications of RFID include automatic highway toll collection, supply-chain management (for large retailers), pharmaceuticals (for the prevention of counterfeiting) and e-health (for patient monitoring). More recent applications range from sports and leisure (ski passes) to personal security (tagging children at schools). RFID tags are even being implanted under human skin for medical purposes, but also for VIP access to bars like the Baja Beach Club in Barcelona. E-government applications such as RFID in drivers’ licences, passports or cash are under consideration. RFID readers are now being embedded in mobile phones. Nokia, for instance, released its RFID-enabled phones for businesses with workforces in the field in mid-2004 and plans to launch consumer handsets by 2006. In addition to RFID, the ability to detect changes in the physical status of things is also essential for recording changes in the environment. In this regard, sensors play a pivotal role in bridging the gap between the physical and virtual worlds, and enabling things to respond to changes in their physical environment. Sensors collect data from their environment, generating information and raising awareness about context. For example, sensors in an electronic jacket can collect information about changes in external temperature and the parameters of the jacket can be adjusted accordingly. The Internet of Things is a technological revolution that represents the future of computing and communications, and its development depends on dynamic technical innovation in a number of important fields, from wireless sensors to nanotechnology. Figure 3 – Smart home for smart people Source: ITU adapted from Line9 ITU Internet Reports 2005: The Internet of Things – Executive Summary 5 Embedded intelligence in things themselves will distribute processing power to the edges of the network, offering greater possibilities for data processing and increasing the resilience of the network. This will also empower things and devices at the edges of the network to take independent decisions. “Smart things” are difficult to define, but imply a certain processing power and reaction to external stimuli. Advances in smart homes, smart vehicles and personal robotics are some of the leading areas. Research on wearable computing (including wearable mobility vehicles) is swiftly progressing. Scientists are using their imagination to develop new devices and appliances, such as intelligent ovens that can be controlled through phones or the internet, online refrigerators and networked blinds (Figure 3). The Internet of Things will draw on the functionality offered by all of these technologies to realize the vision of a fully interactive and responsive network environment. Embedded intelligence in things themselves will further enhance the power of the network. Image Source: Toyota ITU Internet Reports 2005: The Internet of Things – Executive Summary 6 3 Market Opportunities The technologies of the Internet of Things offer immense potential to consumers, manufacturers and firms. However, for these ground-breaking innovations to grow from idea to specific product or application for the mass market, a difficult process of commercialization is required, involving a wide array of players including standard development organizations, national research centres, service providers, network operators, and lead users (Figure 4). From their original inception and throughout the R&D phase, new ideas and technologies must find champions to take them to the production phase. The time to market, too, requires key “lead users” that can push the innovation forward. To date, the technologies driving the Internet of Things are notable for the strong involvement of the private sector, e.g. through industry fora and consortia. Yet public sector involvement is growing, through national strategies for technical development (e.g. nanotechnology) and in sector-specific investments in healthcare, defence or education. Figure 4 – The Internet of Things – from idea to market Source: ITU OAT Systems Science & Research Manufacturing Service provisioning Network operation MIT (ex. Auto-ID center) Standards EPCGlobal MasterCard Tesco Chang Gung Memorial Hospital Intel Research Lab Berkeley Mobile payments via FeliCa chip in Japan Lead users Examples of specific applications Patients RFID wristbands, Taiwan, China N TT DoCoM o Private Investors & National Initiatives Sony SW, System integration R & D P r o d u c t i o n M a r k e t McDonalds NFC Forum US DARPA Great Duck Island Habitat Monitoring in the US AIT RFID JCB Corporation SAXA Item-level tracking across the SCM in the UK ISO/IEC 14443 Hibiki Consortium Precision Dynamics H ewlett-P a cka rd National u- initiatives APT(ASTAP) APEC TEL PayPass at McDonald’s restaurants in the US Texas Instruments Versatile Ve rifo ne ISO/IEC 18000 ADT Secu rity Se rvice s Think M agic Tyco Retail Solutions Gr