NFC & The Growth of Connected Consumer Electronics Devices

Paula Hunter NFC Solutions Summit June 3-4| Austin, TX

Agenda

§  Internet of Things §  Global Market Situation §  Convergence - IOT and NFC §  NFC Forum Update

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What is the Internet of Things?

What is the Internet of Things?

A world in which every device that produces data can connect to the Internet §  Remote sensors §  Home appliances §  Consumer electronics §  Heating/cooling systems §  Office equipment §  Automobile engines … and many, many more

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What is the Internet of Things?

§  The Internet of Things removes barriers: –  Machine-to-machine –  Machine-to-people –  People-to-machine

§  The Internet of Things promises: –  Greater access to data –  Greater management of data –  Greater control of devices

§  Gartner: 26+ billion connected devices by 2020

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Benefits of the Internet of Things

§  Increased productivity §  Fewer steps §  Less data re-entry §  Greater, easier control §  Better coordination §  Data analytics §  Cost savings

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Business Examples of the Internet of Things

According to Information Week: §  Union Pacific cut train derailments by 75%

using remote sensors §  Dubai Aluminum used sensor data to improve

efficiency and increase output by 3.4% §  FedEx expects to save $9 million/year with

truck sensors for more efficient dock assignments

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Consumer Examples of the Internet of Things

§  Wearable baby monitors §  Cars that send alerts for

service needs §  Smart thermostats that

automatically adjust the temperature

§  Ovens that preheat in time for your arrival home

… and many more

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What Does the Internet of Things Require?

§  An inexpensive means of providing intelligence

§  Easy network access

§  A way to link physical objects to the online world

§  A means of easy user control

§  NFC-enabled chips

§  NFC Connection

Handover §  NFC tags

§  Intuitive tap

interface

NFC Provides:

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NFC Technology Global Market Situation

Recent Developments

§  First NFC-enabled household appliances launched

§  Wearables market takes off §  First nationwide NFC payments

rollout in US §  New HCE feature in Android 4.4 §  Top payment associations launch

HCE solutions §  Major North American coffee shop

launches NFC pay §  New NFC/Bluetooth LE solutions

–  Smart thermostats, hybrid beacons

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NFC Phones Available Now (Representative)

§  Flagship models with NFC §  Samsung Galaxy S4

& S3 §  LG G2, select

Optimus series §  HTC One series §  Motorola Moto X §  Blackberry Z10 &

Q10 §  Nokia select Lumia

series §  Sony select Xperia

series §  Google Nexus

4/7/10, Galaxy Nexus

§  Android, BlackBerry, Windows Phone 8 all support NFC at operating system level

§  100% of Top 25 Amazon US contract phones

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DLI 9000

NFC Tablets (Representative)

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NFC-enabled tablets on the market or coming soon

Google Nexus 7

Kuoziro FT701W

Asus Vivo Tab/Tab RT

HP Elitebook Revolve

Google Nexus 10

Asus Padfone Infinity Asus Vivo Tab

Smart Asus Padfone 2

BWC ToughSlate Fujitsu Arrows Tab

HP Elitepad 900

Asmaitha Sruta 7” Tablet

7″Cetrix CT973G Cetrix CD661

Samsung NFC-enabled laser printer

More NFC Devices

Additional types of NFC devices available now or on the way

Moneto: NFC microSD for the iPhone & Android

Revosys V5 taxi terminal/tablet ViVOtech NFC

payment terminals Sony RC-S380 reader/writer

Glidepoint NFC trackpad

Smart Meters for utility companies

Nintendo Wii U controllers

Barclay Card Payment wristbands

RhythmTrak Heart Monitor

I-O Data WiFi Router

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HP Envy x2 Lenovo ThinkPad Helix Sony Vaio Fit

NFC Laptops

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More N-Marks in the World

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2,708 downloads since 2009

198   217  

517  

722  

843  

2009   2010   2011   2012   2013  

N-­‐Mark  Licenses  per  Year  

Analyst Forecasts

§  ABI Research –  125M NFC handsets shipped in 2012; 285M shipped in 2013; 500+M in 2014 –  NFC-enabled smartphone shipments are anticipated to increase by 481% from

2012 to 2015

§  Berg Insight –  1 in 3 mobile phones will come with NFC by 2017 –  From 2012 to 2017, installed base of NFC handsets will increase at a CAGR of 65%

to reach 2.1bn units –  By 2017, the penetration rate for NFC in handsets will reach approximately 32%

§  Gartner –  50% of smartphones will have NFC capability by 2015

§  IHS Technology –  Two in three phones will come with NFC by 2018 –  Annual shipments increasing from 275M units in 2013 to 1.2B units in 2018

§  Juniper Research –  1.5B+ mobile wallets in use around the world by 2018 –  By 2017, 1 in 4 US consumers will use NFC-enabled devices to pay for goods

in-store

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Convergence of NFC and IOT

Recent NFC Developments Supporting the Internet of Things

Bluetooth 4.0 •  Extends power and reach of NFC

•  Enables seamless customer experience

Wi-Fi Alliance •  Extends power and reach of NFC

•  Enables seamless customer experience

Host Card Emulation (HCE) NFC model

•  Supports easy development and deployment of NFC solutions

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Updated Bluetooth Secure Simple Pairing with NFC

§  Application Document guides developers in building solutions that seamlessly combine Bluetooth and NFC

§  Updated to include Bluetooth® Smart devices and Bluetooth LE

§  Product of formal liaison with Bluetooth SIG signed last November

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Wi-Fi Alliance Pushes the NFC Button

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§  Wi-Fi CERTIFIED Wi-Fi Protected Setup™ now includes NFC “tap-to-connect” for simple setup of security-protected Wi-Fi devices and networks

§  Extends the reach of Wi-Fi Protected Setup to smart home devices (refrigerators, thermostats, security systems) with a single tap

§  Key enabler for the Internet of Things

HCE on Android 4.4

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New mode introduction: Host Card Emulation and RW mode covered,

additional to P2P mode (Android Beam)

http://developer.android.com/guide/topics/connectivity/nfc/hce.html

Secure Element

NFC in the Internet of Things

eProvenance §  Temperature/humidity sensors in fine wine cases §  Provides data en route with a tap of an NFC-enabled

device §  Tracks cold chain for quality §  Ensures provenance

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NFC in the Internet of Things

Touch an NFC-enabled phone to the TV remote and its screen is instantly mirrored on the TV

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NFC in the Internet of Things

§  Smart Lighting §  Link energy-harvesting wireless light switches to a

home network with a touch an NFC-enabled phone §  Simplifies setup and control

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NFC in the Internet of Things

NFC-enabled appliances allow control from anywhere and receive helpful Web content.

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NFC in the Internet of Things

NFC-enabled vending machines §  Pay with a tap §  Earn loyalty

points

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The NFC Forum

Mission and Goals

§  The mission of the NFC Forum is to advance the use of NFC technology by:

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§  Developing standards-based specifications that ensure interoperability among devices and services

§  Encouraging the development of products using NFC Forum specifications

§  Educating the market globally about NFC technology

§  Ensuring that products claiming NFC capabilities comply with NFC Forum specifications

§  Promoting the NFC Forum N-Mark

Members – February 2014

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SPONSOR MEMBERS

PRINCIPAL MEMBERS

Members – February 2014

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ASSOCIATE MEMBERS

Members – February 2014

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NONPROFIT MEMBERS

IMPLEMENTER MEMBERS

New Set of Integrated Specifications

§  NFC Activity 1.1 §  Connection Handover

1.3 §  NCI 1.1 §  Digital Protocol 1.1 §  LLCP 1.2 §  Type 1/2/3/4 Tags … designed for use together to streamline and accelerate NFC product development Mediated Handover is a new feature of

Connection Handover 1.3

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Special Interest Group Sectors

Potential to establish additional working groups as partners identify high market importance and opportunity

Transport

Air Transport & Ticketing

Public Transport & Ticketing

Other Transport Schemes

…future…

Health

Pharmacy

Insurance

Clinic

Hospital Management

Payment

Financial Institutions

Terminal Manufacturers

Merchants

…future...

Retail

Product Tags

POS, Vending

Coupons

Points, Rewards

Consumer Electronics

PC, Tablet, Embedded

Handsets, Remote Controls

Computer Peripherals Appliances

Personal Auto

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Liaison Partners

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NFC Is Here! Still Some Challenges to Overcome

1 NFC adoption varies by region.

2 Payment is complex due to multiple players and business models. Solutions and simpler models like HCE are underway.

3 Customer awareness limited outside Asia, fewer opportunities to experience NFC.

4 The NFC Forum is the place to foster adoption and help overcome challenges.

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Thank You … and Join Us!

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www.nfc-forum.org