Research Highlights :

• Government spending on Smart city projects is driving IoT developments in Singapore. Transportation, and logistics and manufacturing are among the other largest verticals for IoT spending.
• Fleet management emerged as the top use case in 2020. It in fact accounted for 40% of total IoT spending across verticals. Predictive maintenance and connected cars accounted for 23% and 19% respectively.
• The number of IoT connections will reach 4.87mn by 2025. Launch of standalone 5G networks will support connections growth towards the end years of the forecast.
• CSP’s IoT revenues amounted to $128mn in 2020, representing 13% of the total IoT spending in Singapore.
• Government’s Smart City initiatives, nationwide roll-out of connectivity technologies by telcos, and an emphasis on security standards are paving the way for IoT growth in Singapore.

Top 3 market drivers

#1. Government initiatives drive smart nation and smart city programs

Singapore Government has identified three pillars for taking Singapore towards becoming a smart city: digital government, digital economy and digital society. The vision is to create a scenario wherein every industry, business and government agency steps up to accelerate digitization efforts. In order to establish these three digital pillars, the government has set up SNDGG (Smart Nation and Digital government Group). It has also reserved $1bn for funding smart city projects. These projects shall be carried out in phases between 2019 and 2025.

#2. Island wide rollout of 5G and other connectivity infrastructure

Telcos have deployed NB-IoT and Cat M1 nationwide to tackle the latency issues. This has spurred the number of IoT end points on each network. According to the IMDA, Singapore telcos will complete the 5G deployment and commercial roll-out across all provinces of the country by 2025. Singtel and the joint venture of M1 and Starhub will be at the forefront of it.

#3. Singapore’s emphasis on security standards

The Singapore government struck multiple deals with Netherland’s Ministry of Economic affairs and the UK government. They aim is to understand the challenges pertaining to security threats backed by IoT devices. Furthermore, the focus remains to adopt a multilateral approach by working with partners. These partners are based both regionally and internationally and focus would be to ensure compliance of standards.

Key observations

#1. IoT spending is gathering pace. Growth to peak in 2024

The Singapore IoT market is estimated at $950mn for 2020. During the forecast period, Twimbit expects the IoT market to reach $2.9bn and to grow at a CAGR of 24.92%.

Source: Twimbit

#2. Government and T&L segments dominate IoT spending, fleet management emerges as the key use case.

Notable IoT projects in Singapore:

Bosch Singapore Campus
Bosch revamped their Singapore office building by integrating ICT within their campus. They partnered with Australian devices vendor Levaux which provided sensors. Some key use cases implemented in their campus are Air Quality Monitoring, Asset tracking, Smart parking, etc.
Traffic Monitoring project with ST engineering
ST Engineering was commissioned by LTA Singapore to build and install the Expressway Monitoring and Advisory System (EMAS) on major expressways and arterial road corridors in Singapore. The system houses surveillance cameras. They shall be leveraged to track traffic information such as vehicle speed and obstructions. As a result, information would be transmitted automatically to a Control Centre manned by operators.

#3. Connections growth will surge supported by standalone 5G rollouts.

#4. Telcos expanding beyond connectivity play to win strategic projects.

Connectivity services account for merely 5-8% of the total IoT project’s total cost. Hence, this has led to telcos diversifying their portfolio and integrating solutions with their connectivity to win strategic projects.

Market outlook

#1. IT services vendors to continue dominating the local IoT market

The IoT market comprises of varied nature of vendors and service providers. Subsequently, they can be clubbed into categories based on their offerings. The percentage share of revenue of a vendor in a typical IoT project differs:

• CSPs: These include communication network and infrastruvture service providers like Singtel, M1, Ericsson (Comprises of US$ 128mn to the total IoT market)
• Devices: Sensor and module vendors like Bosch & Toshiba (Comprises of US$ 213mn of the total IoT market)
• IT services: SIs, software vendors and IoT platform vendors like Cisco & PTC (Comprises of 513mn US$ of the total IoT market)

#2. Market collaborations between service providers emerging as a trend.

• Singtel partnered with China Mobile & China Unicom to cross leverage each other’s connectivity capabilities. As a result of which, customer devices on Singtel’s network could switch to China-mobile’s nb-IoT or China Unicom’s e-sim without hassle.
• M1 and SG Bike are exploring the use of NB-IoT technology to enhance SG Bike’s existing geostation solution. Additionally, the NB-IoT network will allow a real-time monitoring and communication to track and retrieve bicycles that are not parked within the designated bicycle parking zones.

#3. Smart City projects accelerate.

• In June 2018, MOT Singapore and ST Engineering commenced the on-road testing of autonomous shuttles along a 1km road at Tanjong Beach, Sentosa. In 2019, a three-month trial was conducted along a 5km route on the island. Citizens will be able to use their smartphones to hail these shuttles.
• Singapore’s Building Construction Authority (BCA) partnered with Microsoft for a pilot project of integrating smart technologies in 30 buildings with focus on energy conservation.