COVID-19 update included
The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic


Summary

The IoT value chain consists of five key layers - connectivity; security and M2M network management; platform; IoT applications; and operations. Telcos traditionally have a strong presence in the connectivity layer though the strength of their offerings declines when moving up the IoT value chain.

This shift in positioning on the IoT value chain is happening as telcos are answering three major market dynamics driving the adoption of IoT: optimizing the utilization of physical and financial assets, transformation of customer engagement and differentiation of product and services. Telcos have already perceived the need to expand their portfolio beyond connectivity to monetize the growing IoT market opportunity.

The IoT ecosystems can also be quite complex and often telcos do not have all the in-house technical capabilities required to provide end-to-end IoT solutions and services to their clients. Many telcos are focusing on leveraging their capabilities to develop cross-vertical solutions that can be applied across different IoT projects. To develop an IoT-focused portfolio telcos are engaging in partnerships, joint ventures, mergers and acquisitions of different stakeholders that are part of the IoT ecosystem, including network vendors, technology providers, application developers, and start-ups.

AME (Africa and Middle East) will be the second-fastest growing region for IoT revenue, only behind Asia-Pacific. Revenue growth in AME (Africa and Middle East) will be driven by the software and services segments. IoT connectivity and devices revenue are expected to remain relatively low, pushing telcos to yield new revenue streams as end-to-end IoT solution providers.

The utilities, government, and manufacturing verticals account for more than 50% of the total IoT revenue in the AME (Africa and Middle East) region. Utilities are partially driven by the deployment of smart meters in many countries in the region. Government investments are increasing, especially in the Gulf Cooperation Council (GCC) countries, where many smart city projects are well underway. The manufacturing industry is mainly benefiting from IoT by enhancing supply chain processes, predictive maintenance, and asset tracking.

Telco IoT Offerings and Market Opportunity Assessment in Africa and Middle East, an Insider research report, thoroughly examines the IoT landscape, telcos’ IoT value chain, and IoT business models that the telcos are applying to profit from the IoT opportunity in the AME (Africa and Middle East) region.

It provides in-depth analysis of the following -

  • Taxonomy and Market Context; a look at the M2M and IoT definition and also on the Telcos’ IoT value chain. Details of the position of select telcos within the IoT value chain and examples of telcos emerging into the IoT platform space.
  • IoT Revenue Forecast; a global IoT revenue forecast by technology segment, access technology and vertical industry. It also provides forecast for the IoT revenue in the AME (Africa and Middle East) region by technology segment and industry.
  • Telco IoT Offerings and Strategies to Capture the IoT Market Opportunity; an analysis of two case studies of telcos moving up the IoT value chain in the AME (Africa and Middle East) region. Analysis of the ecosystem dynamics of each case and provide an insight on the business model adopted by telcos to monetize from the IoT implementation.
  • Findings and Recommendations; key findings and critical considerations and recommendations for telcos and vendors pursuing the IoT opportunity.




Scope

  • IoT connectivity accounts for the smallest portion of revenue by technology across all the regions. Operators to remain competitive and profitable in the IoT ecosystem need to be more than a network provider and move up in the IoT value chain.
  • Utilities, government, and manufacturing verticals are driving the IoT revenue globally and regionally. In the AME region, the three verticals will grow at a CAGR of 20.2% over 2018-2023.
  • The IoT market is continuously evolving; currently, the main source of IoT access technology revenue is mobile connectivity. However, wireline and NB-IoT connectivity are growing rapidly and will replace legacy networking technology.




Reasons To Buy

  • This Insider Report provides a comprehensive examination of telcos’ IoT business models to help executives fully understand market dynamics, determine what works and what doesn’t, formulate effective product development plans, and optimize resource allocation and return on investments.
  • Two case studies in the Africa and Middle East region illustrate the findings of the report, providing insight into particular situations regarding IoT implementations and the participation of telcos in these projects; this will help the reader understand both the challenges confronted in the real world and the strategies employed to succeed.
  • The report discusses concrete opportunities in the IoT market, providing a number of actionable recommendations for telcos and vendors.
  • With 17 charts and tables, the report is designed for an executive-level audience, to help to understand the different approaches that telcos are adopting to foster their presence within the IoT value chain and ecosystem.