Southeast Asia’s leading Internet of Things (IoT) and Machine to Machine (M2M) thought leaders will be gathering in Jakarta in August during the Asia IoT Business Platform to discuss the opportunities and challenges of growing the IoT/M2M space in Southeast Asia.
Telkomsel president director, Ririek Adriansyah, and Bambang Heru Tjahjono, director general for ICT Applications at Indonesia’s Ministry of Communication and Information Technology will be present and speaking at the Asia IoT Business Platform.
According to an IDC report, IoT in Asia-Pacific (excluding Japan) is set to explode from 3.1 billion to 8.6 billion devices, growing a market of $250 billion to $583 billion between 2015 and 2020.
Charles Reed Anderson, associate vice president and head of Mobility and Internet of Things at IDC Asia/Pacific explained: “The Internet of Things industry has matured considerably over the past year, with a number of large government initiatives across APeJ, and China in particular, driving demand.
Anderson added, “This increase in market demand has led to an increased focus on IoT from leading ICT vendors, as well as start-ups – with each keen to grab their share of the growing IoT market.”
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While the Asia Pacific (APAC) is well-positioned to enjoy significant growth in the near future, there are challenges ahead for industries seeking to capitalise on this growth surge.
Anderson explained, “While high level IoT market forecast information by region or country can be useful to certain audiences, it adds little value to those functional areas with more specific requirements.
“Sales and marketing, for instance, require IoT forecasts aligned to industry verticals so they can effectively set targets and tailor their go-to-market messaging; while product management requires IoT forecasts aligned to use cases (e.g. digital signage) so they can understand the addressable market for their solution portfolio across multiple industries” he concluded.
While China will continue to dominate the APAC region, accounting for 59 per cent of the APAC market opportunity by 2020 – excluding Japan – as well as being the leading global market (with nearly 20 per cent of every unit connected by 2020 to be in China).
The market opportunity China presents is significant, in terms of its monetary value, although the market is immature. Anderson noted: “To assess the maturity of a market, we compare the total number of things connected to the overall population to get a connections per capita figure. Based on this calculation, we discovered the top three most mature markets were South Korea, Australia and New Zealand, with China coming in sixth[..].”
In the IoT market, the government leads the way, with national, regional and city governments aggressively trying to leverage on IoT solutions to drive new revenue streams, reduce costs and enhance citizen services. Other leading industries include utilities, discrete manufacturing, healthcare and retail.
The Southeast Asia play
Southeast Asia, with a population of over 620 million and a growing consumer class, in addition to rapidly improving communications infrastructure and capital-dense cities, will play a crucial role in driving this growth. Indonesia will play a leading role in Southeast Asia’s growth, given the size of its market, with the world’s fourth largest population.
Zaf Coelho, project director of Asia IoT Business Platform said, “Indonesia offers tremendous opportunities in terms of the scale and usage of IoT/M2M solutions, leveraging technology through key enterprise and policy decision making, leading the entire ASEAN region’s transformation.
Coelho explained, “For example, Peugeot Citroen will discuss the potential of smart connected cars, while Trafiksverket will be discussing IoT-powered road use management systems to combat traffic congestion respectively, a huge problem in Jakarta and other SEA cities.”
Asia IoT Business Platform Jakarta is aimed at showcasing the value and economic impact of IoT/M2M solutions, covering how its can enhance private and public sector enterprise productivity, in addition to harnessing ICT and networks to alleviate problems in dense capital cities.
The Jakarta event will focus on local telecommunication companies, businesses and enterprises, as well as end-users across relevant verticals, Major Indonesian telecommunications operators such as Telkomsel, PT Indosat and XL Axiata will be present.
Other telecommunication solution providers present at the conference will include ADLink, Axiros, Microsoft, N’osairis, nTels, NTT Communications, Oracle, PwC and WebNMS.
“This is a platform where Southeast Asia’s leading technology decision makers convene, impacting how ASEAN will drive the uptake of smart technology solutions to alleviate business challenges and societal problems, with a tangible impact on productivity and technology growth,” added Coelho.