Potential market

SECTION I: The product


The innovation potential of this product is related to:


  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…


New innovative applications will emerge from this social and technological context exploiting the connectivity and accessibility of everything. Some can readily be identified above: there will be better and more energy efficient logistic, probably changing completely the retail industry; there will be intelligent buildings, robots, cars, and cities facilitating and assisting our daily lives and thereby increasing our quality of life; social networks will deepen and transcend physical boundaries, and global communities will emerge; yet it is today impossible to envision most of the applications exploring the Internet of Things.



What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …

The added value offered is better IOT governance and data security options. In thecontext of the IoT security must not only focus on the required security services, but also on how these are realized in the overall system and how the security functionalities are executed. To this end, we use the following terminology to analyze and classify security aspects in the IoT:

The security architecture refers to the system elements involved in the man agement of the security relationships between things and the way these se- curity interactions are handled (e.g., centralized or distributed) during the lifecycle of a thing.

The security model of a node describes how the security parameters, pro- cesses, and applications are managed in a thing. This includes aspects such as process separation, secure storage of keying materials, etc.

Security bootstrapping denotes the process by which a thing securely joins the IoT at a given location and point in time. Bootstrapping includes the authentication and authorization of a device as well as the transfer of security parameters allowing for trusted operation.

Network security describes the mechanisms applied within a network to en- sure trusted operation of the IoT. Specifically, it prevents attackers from endangering or modifying the expected operation of networked things. Network security can include a number of mechanisms ranging from secure routing to data link layer and network layer security.

Application security guarantees that only trusted instances of an application running in the IoT can communicate with each other, while illegitimate instances cannot interfere.





What is the Unique Sales Proposition of the potential product?

The unique sale position is the security options. The Internet Key Exchange (IKEv2)/IPsec and the Host Identity Protocol (HIP) reside at or above the network layer in the OSI model. Both protocols are able to perform an authenticated key exchange and set up the IPsec transforms for secure payload delivery. Currently, there are also ongoing efforts to create a HIP variant coined Diet HIP  that takes low-power networks into account at the authentication and key exchange level.




SECTION 2: The Market




What is the target market for the product?

National ¨

European ¨

Global ¨x

Please describe the characteristics of your target market.

A major market for IOT is the urban structures, buildings, roads and streets. According to a new report from Marketsandmarkets, a marketing research company, the global smart cities market is expected to top $1 trillion by 2016. Currently, the report estimates the value of the smart cities market at $526.3 billion, with a compound annual growth rate of about 14.2 percent from 2011-2016. Over that time, the smart energy industry is expected to see the largest growth, from $22.9 billion in 2010 to $80.7 billion in 2016, a 28.7 percent compound annual growth rate. The smart transportation and smart security market are also expected to see growth, up to $68.8 billion and $307.2 billion by 2016. According to the report: Globally, there are some 700 cities, each with population exceeding 500,000 and are growing faster than the average growth rate of cities. This opens up the market for industry players to grow their business in new and emerging smart cities. The infrastructure investment for these cities is forecasted to be $30 trillion to $40 trillion, cumulatively, over the next 20 years. These projections follow along with another report estimating growth in smart cities. Last year, Pike Research said that smart city investment would grow to more than $100 billion by 2020. With so much growth potential it’s no surprise that a large number of companies are quickly looking for their niche in the smart city market.



How the product is characterized from the following options? Number of companies producing similar products in the field.

• Base – applied by all companies in the industry

• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

Applications are software services about the city, used by the citizens, in the city, with various ubiquitous computing interfaces – mobile smart-phones with locative and augmented reality content, public urban interactive and moving displays, web through laptops and tablet computers, open PAN sensor networks and NFC/RFID interfaces.



What type of market demand will be satisfied?

• Existing demand – the market is already developed

• hidden (latent) demand – the market has yet to be developed

The market demand is hidden in respect to the characteristics of large integrated smart city projects. The plurality of these cases drives the needs for a complex training environment among city executives.  According to a new market research report, the Smart City market is growing at an amazing pace, at 14.2% annual growth rate, and it is expected to reach more than 1$ trillion in a few years. The smart cities market value for the last year, 2011, is $526.3 billion, and it’s exact projected value by 2016 is estimated around $1,023.4 billion! The fastest growing sector of the smart city market is smart energy or energy management which has a projected annual growth rate of 28.7%. This amazing growth rate should not be surprising. Major cities are growing fast and this creates a need to implement technological innovations to improve the efficiency and quality of life offered by cities. Globally, there are some 700 cities, each with population exceeding 500,000 and are growing faster than the average growth rate of cities. This opens up the market for industry players to grow their business in new and emerging smart cities. The infrastructure investment for these cities is forecasted to be $30 trillion to $40 trillion, cumulatively, over the next 20 years. With growing emphasis on reducing carbon emission and the fact that conventional cities form a major source of CO2 emissions, planning a smart city becomes a viable option for governments and municipal authorities. Deploying technologies such as smart grids, smart metering for energy management; electric vehicle and traffic management with smart transportation and smart security are high growth areas within smart cities. All these developments make the evolution of smart cities a dynamic trend of the future, which means that the smart city market is becoming one of the largest and most promising markets worldwide.





What is the current stage of the product’s market life cycle?

• Implementation, implementation in production (leading to a radically new product offers)

• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

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. To complete this notions the technical issues need to be tackled Capabilities such as context awareness and inter-machine communication are considered a high priority for the IoT. Additional priorities are the integration of memory and processing power, the capacity of resisting harsh environments, and an affordable security. Furthermore, the development of ultra low power processors/microcontrollers cores designed specifically for mobile IoT devices and a new class of simple and systems will be an enabling factor. The solutions in this respect will range from the use of hard wired or micro programmed finite state machines to the use of microcontrollers.



Strategic partnerships (existing or potential).

Partnerships with organization such as:

The Intelligent Community Forum (http://www.intelligentcommunity.org) is a think tank that studies the economic and social development of the 21st Century community.  Whether in industrialized or developing nations, communities are challenged to create prosperity, stability and cultural meaning in a world where jobs, investment and knowledge increasingly depend on advances in communications.  For the 21st Century community, connectivity is a double-edge sword: threatening established ways of life on the one hand, and offering powerful new tools to build prosperous, inclusive and environmentally sustainable economies on the other.

European smart cities (www.smart-cities.eu/)

Open Knowledge Foundation (http://okfn.org/)

‘Open knowledge’ is any content, information or data that people are free to use, re-use and redistribute — without any legal, technological or social restriction. We detail exactly what openness entails in the Open Knowledge Definition. The main principles are:

Free and open access to the material

Freedom to redistribute the material

Freedom to reuse the material

No restriction of the above based on who someone is (e.g. their nationality) or their field of endeavour (e.g. commercial or non-commercial)



SECTION 3: The Competition


What is the competition within your target market?

 IOBRIDGE   http://iobridge.com

 It Specializes in making it simple and cost-effective to Internet-enable devices and products for manufacturers, professionals and casual users. By providing all of the components necessary to Web-enable things, ioBridge’s customers avoid the complexity and cost associated with piecing together solutions from multiple vendors. ioBridge was founded to help make the Internet of Things a reality by making it easy and cost-effective to connect things together. We see a future of useful interactions with things and finding the meaningful data that exists all around us. Their ideas lead to create a complete end-to-end platform that is secure, private, and scalable for everything from DIY home projects to commercial products and professional applications worldwide.


GIZMAG http://www.gizmag.com

Whether it’s a washing machine that monitors the power grid, or a fridge that you can “look” in with your smartphone, more and more devices that aren’t computers can now perform actions or be controlled via the internet. The phenomenon is known as The Internet of Things, and as technology advances, so will the number of “things” involved. In the same way that the regular internet has experienced some major growing pains, some people worry that the Internet of Things could also end up getting chaotic and disorganized. To that end, a group of Norwegian researchers are developing a standard platform for online devices, so that they’re all on the same playing field.


THINKSPEAK, https://www.thingspeak.com/


Data can be from anything — Blood Sugar Levels measured by a glucose meter, Server Usage and Uptime reported by servers, or Location Info from a mobile phone. Once the data is in ThingSpeak, you can build applications that retrieve the data, use the data for process decision making, and reporting. Data is stored in a ThingSpeak Channel. Each channel allows you to store up to 8 fields of data up to 255 alphanumeric characters; 4 dedicated location fields for Location Description, Latitude, Longitude, and Elevation; Status Update to augment the data; and a Time Date Stamp to time code each piece of incoming data.



What competitive advantages will the introduction of the new product ensue?

• lower prices based on lower production costs

• product differentiation (uniqueness of the product proposal)

The competitive advantage of ITC is based on the featured offered for security and privacy of data under a comprehensive IOT governance. The Internet of Things (IoT) denotes the interconnection of highly heterogeneous networked entities and networks following a number of communication patterns such as: human-to-human (H2H), human-to-thing (H2T), thing-to-thing (T2T), or thing-to-things (T2Ts). Nowadays, the IoT presents a strong focus of research with various initiatives working on the (re)design, application, and use of standard Internet technology in the IoT. The introduction of IPv6 and web services as fundamental building blocks for IoT applications promises to bring a number of basic advantages including: (i) a homogeneous protocol ecosystem that allows simple integration with Internet hosts; (ii) simplified development of very different appliances; (iii) a unified interface for applications, removing the need for application-level proxies. Such features greatly simplify the deployment of the envisioned scenarios ranging from building automation to production environments to personal area networks, in which very different things such as a temperature sensor, a luminaire, or an RFID tag might interact with each other, with a human carrying a smart phone, or with backend services.

The term security subsumes a wide range of different concepts. In the first place, it refers to the basic provision of security services including confidentiality, authentication, integrity, authorization, non-repudiation, and availability. These security services can be implemented by means of different cryptographic mechanisms, such as block ciphers, hash functions, or signature algorithms. For each of these mechanisms, a solid key management infrastructure is fundamental to handling the required cryptographic keys.



Potential products relate to the following price range:

• High price range

• Average price range

• Low price range

The pricing strategy is based on low (zero fees) for access to ITC. The site will be become sustainable through promotion advertisements. Thus user will receive the following services at low indirect cost:

Get ITC open source or on subscription IOT applications

Get these IOT Apps done by private developers instead of own investment – Free 
or low API investment!

Get the ITC Ubiquitous Technologies already established into actual use, like 
IOT that are mostly in low use in many cases




Potential products will be marketed:

• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)

• To markets operating on the principle of free negotiation between agents on the market

The market is not using regulated prices, they are set by with negotiations


SECTION 4: Indicators


Estimated cost of the new products


Expected market volume (potential / maximum number of users)


Expected sales volume


Expected market share of the company (proportion between sales and total company sales in the relevant market)





Please put X as appropriate.






Added-value potential                   






Size of future market demand






Competitive positioning of the product                 







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