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Covid-19: GSMA Cuts Down 2025 IoT Revenue Forecast by $200bn

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GSMA Intelligence cut its forecast for global IoT revenue in 2025 to $906 billion due to the impact of the Covid-19 (coronavirus) pandemic, with earnings from professional services set to be one of the hardest hit segments.

In its August update, the analyst company noted even at its revised level revenue was an almost threefold increase on 2019. Previously it expected IoT revenue to be $1.1 trillion in 2025.

Analysts noted as part of their response to the pandemic, enterprises had readjusted to focus on remote access and automation, placing the short-term emphasis on software tools and cloud.

“As enterprises focus on survival, discretionary spend is currently under scrutiny to preserve cash, which negatively impacts IoT consulting revenues in particular,” GSMA Intelligence added.

“Some latent spend from 2020 will shift to 2021 and beyond, but as economic growth returns we expect IoT professional services revenue growth to return to preCovid-19 levels, with systems integration the main contributor to revenue.”

Although tempering its overall revenue forecast, it noted there would be regional variations, with Asia Pacific least affected. In several markets here, it added, IoT was being deployed in state-sponsored initiatives to mitigate the impact of the crisis.

By contrast, it pointed to a “bleaker outlook” in Latin America, with Brazil cited as a country where 50 per cent of enterprises had struggled securing return on investment for IoT deployments.

In terms of devices, it stood by numbers published in early June, stating the net increase in IoT devices would dip 45 per cent in 2020. Here it stuck by long-term forecasts predicting device numbers to double between 2019 and 2025.

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CNN’s Decoded Explores How Internet Of Things Is Changing The Way We Live

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In a new episode of Decoded, CNN’s Anna Stewart explores the smart, connected devices that make up the Internet of Things (IoT). From ordinary household items to complicated industrial systems, smart devices are changing the way we live.

Stewart visits the Expo 2020 site in Dubai to see how smart cities are using IoT to enable more informed city planning. Helmut Von Struve, CEO of Siemens Middle East gives an example, “Artificial intelligence can say within 20 minutes, 30 minutes, there would be maybe 150 people walking in this direction. So, you can already start cooling the building down.”

IoT devices are also being used to combat climate change. In Boston, a connected forest is helping scientists study how much carbon dioxide trees take out of the atmosphere. Jackie Hatala Matthes, Senior Scientist at the Harvard Forest describes the project, “With IoT, we’re able to get really high-resolution data, high temporal resolution data, and we’re able to look at those changes in real time, which helps to feed into other global models of climate change.” One of the trees even uses IoT to tweet the data and communicate in real time what the tree is experiencing.

In Shenzhen, known as the Silicon Valley of hardware, the programme meets German entrepreneur Florian Simmendinger who has developed a modern twist on a metronome. He explains that although it’s possible to create smart devices for many tasks now, the best ones are those that fulfil a need, “If you find something meaningful that actually improves the product experience, then you know you have a real winner on your hands when it comes to an IoT product. There’s definitely a case in the IoT space of just because you can connect something doesn’t necessarily mean you should.”

At the Jebel Ali Port in Dubai, Stewart meets Ibrahim Al Najjar, Vice President IT, at DP World who demonstrates how a network of connected sensors, devices, and software all communicate to operate the smart port.

Stewart also meets the man who created the term ‘Internet of Things’. In the late 1990s, Kevin Ashton was searching for a name for his presentation on supply chain logistics, “At that time the internet was such a big buzzword. I needed to shoehorn the word internet in to like get any attention at all. and here we are now. Still talking about it. That’s the biggest surprise.”

Ashton describes what makes a good IoT device, “The thing that I look for to make it the Internet of Things is it knows something about the world without a human being telling it. I don’t really think about these voice assistants people have in their kitchen where you say you know, Alexa, add this to my shopping list. Well, in my world, Alexa would know that you needed to add it to the shopping list, it wouldn’t need you to tell it.”

The idea that everything we touch, every we move we make, can be monitored and uploaded to the cloud may seem convenient and efficient, but for some it raises concerns about regulation and trust. Stewart speaks to professional hacker Ken Munro, CEO of Pen Test Partners. He demonstrates how easy it is to hack IoT devices like a children’s doll with speech recognition and warns, “As we know, legislation often trails innovation. So I think it’s really important that we bring in some regulation to help manufacturers prioritise cybersecurity and also help protect us consumers from manufacturers who may be a bit fast and loose with security.”

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Nigeria May Benefit From Webb Fontaine’s AI Research Centres

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  • Holds webinar July 12 on AFCFTA

Mr. Ope Babalola, Managing Director, Webb Fontaine Nigeria, says the global trade facilitation company will open world-class AI Research and Development (R&D) Centres in Africa to create efficiency in trade.

Webb Fontaine is a leading provider of solutions for trade facilitation, powered by world-class technology including artificial intelligence. It develops new-generation IT systems that take trade and customs processes to the next level for the benefit of the global trading community.

Mr. Babalola says the R&D Centres will not only benefit Web Fontaine’s work, it will also lead to a surge in demand for highly skilled staff and the hiring of as many programmers from Africa as possible. “We want Africa to have at least one or two world class Research and Development Centres. We will train them, work with them and help them to develop the Customs industry across the entire continent, especially in regions covered the African Continental Free Trade Area.

“We would like the first of these centres to be in Nigeria. One can imagine the job opportunities and the exposure it would create and we think Nigeria is the best place for this to happen,” he says.

Webb Fontaine has been working with the Nigerian Government and Nigerian Customs Service since 2006 when it implemented Asycuda​++, eventually developing a system called NICIS II and the current Single Window digital platform to enhance Customs services.

The company last month was awarded a 10-year contract by the Government of Niger Republic to implement and manage the new Niger National Single Window project (NNSW), including the roll out of a state-of-the-art Port Community System created specifically for the landlocked West African nation.

Meanwhile, Webb Fontaine, one of the leading providers of Customs and trade solutions to governments worldwide, will gather a panel of industry mavens to talk about ‘Technology and Trade in Africa: Challenges and Opportunities’ in a webinar series on July 12 at 1200 CET.

The panel discussion will explore revolutionary thinking and innovative insights on International trade in Africa, the impact of African Continental Free Trade Area (AFCFTA) agreement and the collaborative role of African nations in achieving economic integration as a continent.

The webinar, aimed at both private and public sector professionals, with its overarching theme of trade and technology in Africa, will further explore the implications of geopolitical developments, establishment of free trade zones and its cumulative impact on the continent’s trade policies. With the global COVID-19 pandemic being a major economy disruptor, the discussion will also touch upon the consequences of such turbulences in the African supply chain.

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Solad and Arizona State University to Utilise AI for Nigeria Mini Grids

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Solad Power Group, one of Nigeria’s leading distributed energy solutions providers, has agreed to a partnership with Arizona State University (ASU) to utilise the university’s proprietary artificial intelligence data platform to assess mini-grid projects in Nigeria quickly and efficiently. 

As a participant in the World Bank supported Rural Electrification Agency (REA) Mini-Grid programme, Solad is rolling out solar solutions to markets across Nigeria. The Company has a near-term pipeline of 12 priority projects. The partnership with ASU’s Laboratory For Energy And Power Solutions (LEAPS) enables the accelerated deployment of 25 new sites. Data will be collected through LEAPS’ existing partnerships with YouthMappers and Nigerian universities, whose students will deepen their knowledge of and exposure to distributed energy solutions.

Mini-grid companies must conduct site feasibility studies before they can design and install a project. This is often a limited but protracted process built on insufficient data from short site visits, which can compromise the outcome. Solad is focused on leveraging the latest technology to enhance its feasibility assessments using global satellite imagery, AI-aided mapping models and advanced power engineering software.

Commenting on the alliance, Solad’s Chairman Constantine ‘Labi Ogunbiyi said: “We are proud to be collaborating with the largest research university in the United States. By combining ASU’s unique data platform with our own project portfolio and market access, we can deliver new power solutions much more efficiently. This means we can rapidly expand and validate our project pipeline while ASU grows its knowledge and understanding of market viability with Nigerian students participating in the process. Once the first phase is successful, we intend to expand collaboration to include hundreds of additional sites. Using ASU’s accurate technical and business data metrics, we will continue to invest in energy as a service allowing us to connect Nigerian MSMEs to the world, beginning with clean energy systems providing consistent power supply, and expanding our services through a mobile first, digital eCommerce portal.” 

Dr. Nathan Johnson, Director of ASU LEAPS, remarks about the importance of innovation and partnerships: “The public-private partnership with Solad will accelerate identification and development of mini-grid sites to expand access to reliable, affordable, and renewable energy. The technical analysis provided by ASU is paired with innovative business models by Solad to create bankable mini-grid investments that address the goals of all stakeholders. Solad’s approach provides a tangible return on investment to facilitate site expansion and economic development.” 

Solad focuses on under-served segments of the energy market, prioritising support for the millions of market traders who struggle with access to unreliable or prohibitively-expensive energy solutions. SMEs make up 96% of all businesses operating in Nigeria, contributing nearly 50% of GDP and providing 84% of all jobs in the country. They consistently reference access to electricity as the single most important obstacle that they face. With Lagos alone having a population of 20 million people, the opportunity set is huge. Solad already has 10,000 existing small business customers and an expansion programme that targets an additional 20,000 businesses within 2 years.

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