4Q 2016

IoT and the Future of Networked Energy

The Internet of Things (IoT) trend grabs attention with all of its futuristic and hopeful possibilities. The notion of tens of billions of things, from devices to sensors and actuators, connecting on a scale never seen before has tremendous potential—for good and perhaps not so good. For example, the upside for efficiency gains in buildings or new preventive maintenance insights is tempered by potential hacks of IoT devices or systems. Regardless, the lofty vision for the IoT is a broader, deeper, and more intelligent ecosystem.

The rapid adoption of Internet-connected devices supports a new digital foundation for the energy industry. The emerging IoT touches, or will touch, nearly all aspects of energy generation, transmission, and distribution. IoT represents one of several emerging technology integration platforms within the Energy Cloud, which describes a dynamic energy ecosystem. The Energy Cloud leverages ubiquitous connectivity, intelligent sensors and devices, information and operations technology, and data-driven machine-learning functionality across the grid value chain. A new landscape is emerging in which a more sophisticated two-way grid of networked distributed energy resources (DER) and digital technologies will pave the way for an Energy Cloud ecosystem valued at $1.3 trillion in new annual industry revenue by 2030.

This Navigant Research white paper explores the market dynamics, opportunities, and challenges embodied by the emerging IoT trend and its impact on the Energy Cloud. The paper provides meaningful insights about IoT platforms and introduces the IoT Playbook, a framework for making key business decisions for harnessing the benefits to drive growth. It also provides a high-level assessment of some of the risks involved as the IoT market shifts and matures.

Pages 41
Tables | Charts | Figures 14

  • How does the Internet of Things (IoT) concept support a new digital foundation for the energy industry?
  • How does the IoT trend align with the Energy Cloud?
  • How should energy industry stakeholders develop an IoT strategy?
  • What are the security threats that could impede IoT adoption?
  • What are some of the communications challenges related to IoT deployments?
  • What new human-machine interfaces are enabled by IoT technologies?

  • Utilities
  • Regulatory bodies
  • Internet of Things (IoT) device hardware manufacturers
  • IoT-focused chip manufacturers
  • IoT software developers
  • IoT standards bodies
  • Investor community

1. Executive Summary

1.1    Introduction: The Internet of Things Trend

1.2    The IoT Platform

1.3    IoT Already Here, but Not Widely Recognized Yet

2. IoT Hype Diminishing

2.1    Time for Action

2.2    Expected IoT Tipping Point

2.3    IoT and the Energy Cloud

2.4    A Transformative Process

3. IoT Expands Human-Machine Interfaces

3.1    New Machine Interactions

3.2    Voice as IoT Device Input

3.3    Wearables as Input

3.4    Cameras as Input for Interaction

3.5    Enhanced Occupancy Sensing—Beyond Motion

3.6    Glasses as Interface—Not the Last Word Yet

3.7    Enhanced Location Sensing: Geofencing, Geolocation, and IoT

3.8    Touch Still Relevant

3.9    IoT Customer Experience

4. IoT at the Edge and in the Cloud

4.1    The Edge

4.2    IoT Requires New Data Approach

4.3    The IoT Data Value Chain

4.4    IT Investments for DER and IoT Analytics

4.5    Baltimore Gas and Electric: Managing IoT Devices through Analytics

4.6    IoT for C&I Customers

4.7    IoT for Residential Customers

4.8    Integrating IoT Devices, Data, and Insights

4.8.1   PEVs as IoT Edge Devices

4.9    Cloud Computing and IoT Complement Each Other

5. IoT Communications Challenge: Connecting Billions of Devices

5.1    Connectivity in the IoT World

5.2    5G to the Rescue?

5.3    Not Waiting for 5G

5.4    Cellular Carriers Emphasize IoT Growth

5.5    Protocols and an IoT Operating System

6. Looming Cybersecurity Issues

6.1    Ongoing Vulnerabilities

6.2    Companies Working on IoT Security

6.3    Concerned Experts

6.4    National Institute of Science and Technology’s Network of Things

6.5    IoT Security Mandate

7. Recommendations: The IoT Playbook

7.1    Recommendations: The IoT Playbook

8. Acronym and Abbreviation List

9. Table of Contents

10. Table of Charts and Figures

11. Scope of Study, Sources and Methodology, Notes

  • Commercial and Residential IoT Revenue by Type, World Markets: 2016-2025
  • Smart Grid IT Spending by Application, World Markets: 2014-2024
  • Communicating, Smart Thermostat Device, Software, and Services Revenue by Region, World Markets: 2016-2025
  • The IoT Undergirds the Emerging Energy Cloud
  • IoT Alters Human-Machine Interfaces
  • Edge Computing for the Energy Cloud
  • IoT Data Value Chain
  • Prominent IoT Communications Protocols and Standards
  • Cybersecurity Threat Sources
  • NIST’s Network of Things Model
  • The IoT Playbook

  • Commercial and Residential IoT Revenue by Type, World Markets: 2016-2025
  • Residential IoT Device Revenue by Type, World Markets: 2016-2026
  • Residential IoT Services Revenue by Region, World Markets: 2016-2026