Building the hyperconnected society

River Publishers Series in Communications
Building the Hyperconnected Society
IoT Research and InnovationValue Chains, Ecosystems and Markets
Editors
Ovidiu Vermesan
Peter Friess
River Publishers

IoT Research and Innovation Value Chains,
Ecosystems and Markets

RIVER PUBLISHERS SERIES IN COMMUNICATIONS
Volume 43
Series Editors
ABBAS JAMALIPOUR MARINA RUGGIERI
The University of Sydney University of Rome Tor Vergata
Australia Italy
HOMAYOUN NIKOOKAR
Delft University of Technology
The Netherlands
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IoT Research and Innovation Value Chains,
Ecosystems and Markets
Editors
Dr. Ovidiu Vermesan
SINTEF, Norway
Dr. Peter Friess
EU, Belgium

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Dedication
“The greatest accomplishments of man have resulted from the transmission
of ideas and enthusiasm.”
— Thomas J. Watson
“A rock pile ceases to be a rock pile the moment a single man contemplates
it, bearing within him the image of a cathedral.”
— Antoine de Saint-Exupéry
Acknowledgement
The editors would like to thank the European Commission for their support in
the planning and preparation of this book. The recommendations and opinions
expressed in the book are those of the editors and contributors, and do not
necessarily represent those of the European Commission.
Ovidiu Vermesan
Peter Friess

Building the hyperconnected society

Contents
Preface xv
Editors Biography xvii
1 Introduction 1
1.1 Now Is the Time . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 The Digital Single Market and Internet of Things
Transformative Technologies . . . . . . . . . . . . . . . . . 2
1.3 Beneﬁts and Challenges . . . . . . . . . . . . . . . . . . . . 3
1.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 New Horizons for the Internet of Things in Europe 5
2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.2 The IoT Is the New Age . . . . . . . . . . . . . . . . . . . . 5
2.3 The IoT Can Unleash a New Industrial and Innovation Era . . 7
2.4 Issues to Be Tackled . . . . . . . . . . . . . . . . . . . . . 8
2.5 Building IoT Innovation Ecosystems . . . . . . . . . . . . . 10
2.6 IoT Large Scale Pilots for Testing and Deployment . . . . . 11
2.7 Alliance for Internet of Things Innovation . . . . . . . . . . 12
2.8 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3 Internet of Things beyond the Hype: Research, Innovation
and Deployment 15
3.1 Internet of Things Vision . . . . . . . . . . . . . . . . . . . 15
3.1.1 Internet of Things Common Deﬁnition . . . . . . . . 19
3.2 IoT Strategic Research and Innovation Directions . . . . . . 25
3.2.1 IoT Applications and Deployment Scenarios . . . . 29
3.3 IoT Smart-X Applications . . . . . . . . . . . . . . . . . . . 33
3.3.1 Wearables . . . . . . . . . . . . . . . . . . . . . . . 33
3.3.2 Smart Health, Wellness and Ageing Well . . . . . . 35
3.3.3 Smart Homes and Buildings . . . . . . . . . . . . . 37
vii

viii Contents
3.3.4 Smart Energy . . . . . . . . . . . . . . . . . . . . 40
3.3.5 Smart Mobility and Transport . . . . . . . . . . . . 42
3.3.6 Smart Manufacturing and Industrial Internet
of Things . . . . . . . . . . . . . . . . . . . . . . . 45
3.3.7 Smart Cities . . . . . . . . . . . . . . . . . . . . . . 47
3.3.7.1 Large Scale Pilots and Ecosystem
for Smart Cities . . . . . . . . . . . . . . 48
3.3.7.2 Role of Institutions and Citizens
in the Global IoT . . . . . . . . . . . . . . 50
3.3.8 Smart Farming and Food Security . . . . . . . . . . 51
3.4 Future Internet Support for IoT . . . . . . . . . . . . . . . . 53
3.4.1 Macro-Challenges for Supporting IoT Evolution . . 54
3.4.1.1 Billions of Devices . . . . . . . . . . . . 55
3.4.1.2 IoT Management for Robustness
and Reliability . . . . . . . . . . . . . . 56
3.4.1.3 Intelligent Reasoning over IoT Data . . . 57
3.4.2 Roadmap and Technology for Addressing These
Challenges . . . . . . . . . . . . . . . . . . . . . . 58
3.4.2.1 From Challenges to Technology
Solutions . . . . . . . . . . . . . . . . . . 58
3.5 Internet of Things and Related Future Internet
Technologies . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.5.1 Cloud and Edge/Fog Computing . . . . . . . . . . . 62
3.5.2 Federated IoT Data Cloud and Orchestration
of Large Scale Services . . . . . . . . . . . . . . . . 66
3.5.2.1 IoT Data Analytics . . . . . . . . . . . . . 67
3.5.3 IoT Interoperability and Semantic
Technologies . . . . . . . . . . . . . . . . . . . . . 68
3.6 Networks and Communication . . . . . . . . . . . . . . . . 71
3.6.1 Networking Technology . . . . . . . . . . . . . . . 71
3.6.2 Communication Technology . . . . . . . . . . . . . 74
3.7 Data Management . . . . . . . . . . . . . . . . . . . . . . . 76
3.7.1 Smart Data . . . . . . . . . . . . . . . . . . . . . . 80
3.8 A QoS Security Framework for the IoT Architecture . . . . . 80
3.8.1 End-to-End Security.The DecentralizedApproach. . . 81
3.8.2 Standardization. Certiﬁcation. Interoperability. . . . 82
3.8.3 Components of a QoS Security Framework . . . . . 82
3.8.3.1 Authentication . . . . . . . . . . . . . . . 83
3.8.3.2 Authorization . . . . . . . . . . . . . . . 83

Contents ix
3.8.3.3 Network . . . . . . . . . . . . . . . . . . 84
3.8.3.4 Trust Management . . . . . . . . . . . . 85
3.9 Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
4 Internet of Things Application Scenarios, Pilots
and Innovation 119
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 119
4.2 IoT Projects . . . . . . . . . . . . . . . . . . . . . . . . . . 120
4.2.1 ALMANAC . . . . . . . . . . . . . . . . . . . . . 123
4.2.1.1 Application Areas . . . . . . . . . . . . . 124
4.2.1.2 Pilots and Demonstrators . . . . . . . . . 124
4.2.2 ClouT . . . . . . . . . . . . . . . . . . . . . . . . . 125
4.2.3 OSMOSE . . . . . . . . . . . . . . . . . . . . . . . 127
4.2.4 RERUM . . . . . . . . . . . . . . . . . . . . . . . 128
4.2.5 SMARTIE . . . . . . . . . . . . . . . . . . . . . . 129
4.2.6 SocIoTal . . . . . . . . . . . . . . . . . . . . . . . 130
4.2.7 VITAL . . . . . . . . . . . . . . . . . . . . . . . . 131
4.2.8 BUTLER (Completed) . . . . . . . . . . . . . . . . 131
4.2.9 iCore . . . . . . . . . . . . . . . . . . . . . . . . . 132
4.2.10 IoT.est (Completed) . . . . . . . . . . . . . . . . . 135
4.2.11 OpenIoT . . . . . . . . . . . . . . . . . . . . . . . 136

x Contents
4.3 IoT Projects’ Pilots and Demonstrators . . . . . . . . . . . . 137
4.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
4.5 List of Contributors . . . . . . . . . . . . . . . . . . . . . . 142
5 Industrial Internet of Things and the Innovation Processes
in Smart Manufacturing 145
5.1 IIoT for Manufacturing: Key Enabler for 4th Industrial
Revolution . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
5.2 IoT in the Factories of the Future PPP and Digital
Manufacturing: The EFFRA Perspective . . . . . . . . . . . 146
5.2.1 IoT & Cyber-Physical Production Systems . . . . . 147
5.2.2 CPPS Architectures Design Drivers for Scalable,
Adaptive and Smart Manufacturing Systems . . . . . 149
5.3 Product Design and Engineering in the IoT Era:
The LINKEDDESIGN Project . . . . . . . . . . . . . . . . 151
5.3.1 IoT-Enabled Closed Loop Framework . . . . . . . . 153
5.3.2 Discussion . . . . . . . . . . . . . . . . . . . . . . 155
5.4 Workplaces of the Future and IoT: The FITMAN Project . . 156
5.4.1 FITMAN Smart Factory Platform (IoT) . . . . . . . 156
5.4.2 Safe & Healthy Workforce: TRW Use Case . . . . . 157
5.5 Osmosis Membranes for IoT Real-Digital-Virtual Worlds
Interconnection: The OSMOSE Project . . . . . . . . . . . 160
5.5.1 The IoT Data Gaps . . . . . . . . . . . . . . . . . . 160
5.5.2 The Liquid Enterprise . . . . . . . . . . . . . . . . 161
5.5.3 Osmotic Context Management . . . . . . . . . . . . 162
5.6 IoT Enhanced Learning for Complex Systems Maintenance:
The TELLME Project . . . . . . . . . . . . . . . . . . . . . 163
5.6.1 The Need for IoTEnhanced Learning inAerospace . . 163
5.6.2 IoT Enhanced Learning for Avoidance of Foreign
Object Debris (FOD) . . . . . . . . . . . . . . . . . 165
5.6.3 IoT Enhanced Learning for Non-Standard Workplace
Environmental Condition . . . . . . . . . . . . . . . 167
5.6.4 Future Work . . . . . . . . . . . . . . . . . . . . . 169
5.7 IoT-Driven Manufacturing Innovation Ecosystems . . . . . 169
5.8 Industrial Internet ofThings:The US IGNITE Perspective . . 173
5.8.1 Background on US IGNITE and the GENI/FIRE
Initiatives . . . . . . . . . . . . . . . . . . . . . . . 174

Contents xi
5.8.2 Cyber Physical Tools and Frameworks . . . . . . . . 175
5.9 Research, Innovation Challenges for IoT Adoption
in Manufacturing: The SMART 2013/37 EC Study . . . . . 177
5.9.1 The Study IoT and Cloud Research and Innovation
Strategy . . . . . . . . . . . . . . . . . . . . . . . . 178
5.9.2 The Main Market Trends . . . . . . . . . . . . . . . 178
5.9.3 The IoT and Cloud Research and Innovation
Challenges . . . . . . . . . . . . . . . . . . . . . . 181
5.9.4 Study Conclusions and EC Policy
Recommendations . . . . . . . . . . . . . . . . . . 183
6 Securing the Internet of Things – Security and Privacy
in a Hyperconnected World 189
6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 189
6.2 End-to-End Security and Privacy by Design . . . . . . . . . 191
6.3 Physical IoT Security . . . . . . . . . . . . . . . . . . . . . 192
6.3.1 Selected Low-Cost Attacks . . . . . . . . . . . . . . 192
6.3.2 Key Extraction Attacks and Countermeasures . . . . 195
6.4 On Device Security and Privacy . . . . . . . . . . . . . . . 197
6.4.1 Mediated Device Access for Security
and Privacy . . . . . . . . . . . . . . . . . . . . . . 198
6.4.2 Encryption . . . . . . . . . . . . . . . . . . . . . . 198
6.4.3 Integrity . . . . . . . . . . . . . . . . . . . . . . . . 200
6.4.4 Data Minimisation . . . . . . . . . . . . . . . . . . 200
6.5 Unobservable Communication . . . . . . . . . . . . . . . . 201
6.5.1 Resisting Network Traffic Analysis . . . . . . . . . 202
6.6 Access Control Based on Policy Management . . . . . . . . 203
6.7 Security and Privacy in the IoT Cloud . . . . . . . . . . . . 206
6.7.1 Verifiable and Authenticity Preserving Data
Processing . . . . . . . . . . . . . . . . . . . . . . 207
6.7.2 Structural Integrity and Certification of Virtualized
Infrastructure . . . . . . . . . . . . . . . . . . . . . 207
6.7.3 Privacy Preserving Service Usage and Data
Handling . . . . . . . . . . . . . . . . . . . . . . . 208
6.7.4 Confidentiality of (Un-)structured Data . . . . . . . 209
6.7.5 Long Term Security and Everlasting Privacy . . . . 209
6.7.6 Conclusion . . . . . . . . . . . . . . . . . . . . . . 210
6.8 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210

xii Contents
7 IoT Analytics: Collect, Process, Analyze, and Present Massive
Amounts of Operational Data – Research and Innovation
Challenges 221
7.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 221
7.2 Deep Internet of Things Data Analytics . . . . . . . . . . . 223
7.2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . 223
7.2.2 Designing for Real World Problems . . . . . . . . . 224
7.2.3 Real World Data . . . . . . . . . . . . . . . . . . . 226
7.2.4 Data Interoperability . . . . . . . . . . . . . . . . . 227
7.2.5 Deep Data Analytics Methods . . . . . . . . . . . . 229
7.2.6 Conclusions . . . . . . . . . . . . . . . . . . . . . . 231
7.3 Cloud-Based IoT Big Data Platform . . . . . . . . . . . . . 232
7.3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . 232
7.3.2 Big Data in the Context of IoT . . . . . . . . . . . . 233
7.3.3 Applications of IoT Big Data Analytics . . . . . . . 234
7.3.4 Requirements of IoT Big Data Analytic Platform . . 235
7.3.4.1 Intelligent and dynamic . . . . . . . . . . 235
7.3.4.2 Distributed . . . . . . . . . . . . . . . . . 236
7.3.4.3 Scalable and elastic . . . . . . . . . . . . 236
7.3.4.4 Real-time . . . . . . . . . . . . . . . . . 236
7.3.4.5 Heterogeneous (uniﬁed) . . . . . . . . . . 236
7.3.4.6 Security and privacy . . . . . . . . . . . . 236
7.3.5 Cloud-Based IoT Analytic Platform . . . . . . . . . 237
7.4 IoT Analytics in Health and Social Care . . . . . . . . . . . 239
7.4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . 239
7.4.2 Architectural Approach to Data Analytics . . . . . . 240
7.4.3 IoT Data Analytics . . . . . . . . . . . . . . . . . . 241
7.4.4 IoT Data Governance and Privacy Implications . . . 244
7.5 IoT Analytics for Public Safety . . . . . . . . . . . . . . . . 246
7.5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . 246
7.5.1.1 IoT analytics . . . . . . . . . . . . . . . . 246
7.5.1.2 IoT analytics for public safety . . . . . . . 247
7.5.2 Crowd Detection Solution for a Safer City . . . . . . 248
7.5.2.1 The privacy preserving approach . . . . . 249
7.5.3 Mobile Operation Centres (MOC) . . . . . . . . . . 250
7.5.4 Conclusions and Outlook . . . . . . . . . . . . . . . 251
7.6 Towards a Positive Approach in Dealing with Privacy
in IoT Data Analytics . . . . . . . . . . . . . . . . . . . . . 252
7.6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . 252

Contents xiii
7.6.2 IoT and Privacy . . . . . . . . . . . . . . . . . . . . 253
7.6.3 European Way Forward . . . . . . . . . . . . . . . 254
7.6.4 Challenges Ahead . . . . . . . . . . . . . . . . . . . 254
7.6.5 Way Forward . . . . . . . . . . . . . . . . . . . . . 255
7.6.6 Conclusions and Outlook . . . . . . . . . . . . . . . 256
8 Internet of Things Experimentation: Linked-Data,
Sensing-as-a-Service, Ecosystems and IoT Data Stores 261
8.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 261
8.2 Experimentation as a Service . . . . . . . . . . . . . . . . . 263
8.3 Linked Data, Global Information Systems and IoT
Infrastructures . . . . . . . . . . . . . . . . . . . . . . . . . 265
8.4 Ecosystems and Data Stores by Means of Federated
IoT Services . . . . . . . . . . . . . . . . . . . . . . . . . . 268
8.5 FIESTA-IoT: IoT Data Streams and IoT-Experimentation
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
8.6 FIESTA-IoT for Smart Cities – Semantic Interoperability . . 272
8.7 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . 273
9 Driving Innovation through the Internet of Things – Disruptive
Technology Trends 279
9.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 279
9.2 Intelligent Edge and Web-Enabled Devices . . . . . . . . . 280
9.3 IoT Ecosystems . . . . . . . . . . . . . . . . . . . . . . . . 287
9.4 IoT Platforms . . . . . . . . . . . . . . . . . . . . . . . . . 287
9.5 IoT Alliances . . . . . . . . . . . . . . . . . . . . . . . . . 295
9.6 Business Models . . . . . . . . . . . . . . . . . . . . . . . 298
9.7 Standardization . . . . . . . . . . . . . . . . . . . . . . . . 299
9.8 Large Scale Deployments and Test Beds . . . . . . . . . . . 300
9.9 IoT Innovation Challenges . . . . . . . . . . . . . . . . . . 303
9.10 Further Developments . . . . . . . . . . . . . . . . . . . . 305
Index 309

Preface
Internet of Things beyond the Hype
IoT represents the convergence of advances in miniaturization, wireless
connectivity, increased data storage capacity and data analytics. Intelligent
edge devices detect and measure changes in environmental parameters and
are necessary to turn billions of objects into “smart data” generating “things”
that can report on their status, and interact with other “things” and their
environment.
Universal connectivity and data access provides opportunities to monetise
data sharing schemes for mobile network operators and other connectivity
players.
The Internet of Things supports private and public-sector organizations
to manage assets, optimize performance, and develop new business models,
allowing a leap in productivity while reshaping the value chain, by changing
product design, marketing, manufacturing, and after sale service and by
creating the need for new activities such as product data analytics and
security. This will drive yet another wave of value chain based productivity
improvement.
The following chapters will provide insights on the state-of-the-art of
research and innovation in IoT and will expose you to the progress towards
building ecosystems and deploying Internet of Things technology for various
applications.
xv

Editors Biography
Dr. Ovidiu Vermesan holds a Ph.D. degree in microelectronics and a Master
of International Business (MIB) degree. He is Chief Scientist at SINTEF Infor-
mation and Communication Technology, Oslo, Norway. His research interests
are in the area of microelectronics/nanoelectronics, analog and mixed-signal
design with applications in measurement, instrumentation, high-temperature
applications, medical electronics, integrated intelligent sensors and computer-
based electronic analysis/simulation. Dr. Vermesan received SINTEFs 2003
award for research excellence for his work on the implementation of a
biometric sensor system. He is currently working with projects addressing
nanoelectronics integrated systems, communication and embedded systems,
wireless identifiable systems and cyber-physical systems for future Internet
of Things architectures with applications in green automotive, internet of
energy, healthcare, oil and gas and energy efficiency in buildings. He has
authored or co-authored over 75 technical articles and conference papers. He
is actively involved in the activities of the new Electronic Components and
Systems for European Leadership (ECSEL) Joint Technology Initiative (JTI).
He coordinated and managed various national and international/EU projects
related to integrated electronics. Dr. Vermesan is the coordinator of the IoT
European Research Cluster (IERC) of the European Commission, actively
participated in projects related to Internet of Things.
Dr. Peter Friess is a senior official of DG CONNECT of the European
Commission, taking care for more than six years of the research and innovation
policy for the Internet of Things. In his function he has shaped the on-
going European research and innovation program on the Internet of Things
and accompanied the European Commission’s direct investment of over
100 Mill. Euro in this field. He also oversees the international cooperation
on the Internet of Things, in particular with Asian countries. In previous
engagements he was working as senior consultant for IBM, dealing with
major automotive and utility companies in Germany and Europe. Prior to
this engagement he worked as IT manager at Philips Semiconductors on with
xvii

xviii Editors Biography
business process optimisation in complex manufacturing. Before this period
he was active as researcher in European and national research projects on
advanced telecommunications and business process reorganisation. He is a
graduated engineer in Aeronautics and Space technology from the University
of Munich and holds a Ph.D. in Systems Engineering including self-organising
systems from the University of Bremen. He also published a number of articles
andco-editsayearlybookoftheEuropeanInternetofThingsResearchCluster.

1
Introduction
Thibaut Kleiner1
European Commission
1.1 Now Is the Time
In 1999, Kevin Ashton coined the term Internet of Things (IoT) to describe
an evolution of the Internet whereby we ‘empower computers with their own
means of gathering information, so they can see, hear and smell the world
for themselves, in all its random glory.’2 At that time, it was already clear
that IoT is more than a technology (and definitely more than RFID), and
that it represents a paradigm, a new stage of evolution for the Internet. The
EU embraced it in 2009 with a dedicated action plan, leading notably to the
creation of the European Internet of Things Research Cluster (IERC).
Over the years, however, the very concept of IoT has seemed to lose
traction and to become blurred, especially as a series of corporate actors have
tried to develop new terminologies – from Internet of Everything to Industrial
Internet to Industrie 4.0- to explain how they would deliver better solutions on
the basis of connected devices. Time has come to reclaim some ground, and to
re-establish the Internet of Things where it belongs: as the leading paradigm
to describe the digital transformation of our economies and societies.
The IoT is the key development to Building the Hyperconnected Society-
the topic of this book. The European Commission has adopted on 6 May
2015 the Digital Single Market strategy and has opened the door for bold
proposals to improve our future.Today, we can mobilise the important research
work delivered notably by the IERC in terms of IoT technology and societal
analysis, and apply it in the market and in our EU policies. The launch of
1
The views expressed in this article are purely those of the author and may not, in any
circumstances, be interpreted as stating an official position of the European Commission.
2
K. Ashton. That ‘Internet of Things’Thing. RFID Journal. www.rfidjournal.com. June 22,
2009.
1

2 Introduction
the Alliance for IoT Innovation (AIOTI) should be seen as a signal in this
direction. We are uniquely positioned to choose the right path so that the
IoT can be mainstreamed, so that it leaves the labs and the drawing boards,
conquers not only the techno-freaks and early adopters but can also be adopted
by the masses in full confidence.
1.2 The Digital Single Market and Internet of Things
Transformative Technologies
The Internet of Things has long been characterised as hype. Already in 2009,
the Commission explained that the scope of IoT applications is expected
to greatly contribute to addressing today’s societal challenges, from health
monitoring systems to transport to environment, gradually resulting in a
genuine paradigm shift. Progress has been constant but maybe slower than
anticipated. This is however changing, as highlighted in a recent study
completed for the Commission3, which forecasts the market value of the IoT
in the EU to exceed one trillion euros in 2020.
The Digital Single Market (DSM), adopted in May 2015, offers an
opportunity to accelerate and to fully develop the transformative potential
of the IoT. It announces a series of initiatives that together can boost take
up on a continental basis. First, a revamped telecom regulatory framework
will provide improved rules on e.g. roaming, net neutrality and spectrum and
help the deployment of connected devices and IoT services. The DSM also
consolidates initiatives on trust and security and data protection, which are
essential for the adoption of this technology. Most importantly, it announces
an initiative on the Data economy (free flow of data, allocation of liability,
ownership, interoperability, usability and access) and promises to tackle
interoperability and standardisation.
Altogether, these measures offer a fantastic platform to establish the
framework conditions for a vibrant development of the IoT in the EU. This
comes at a fruitful moment, when powerful demand forces led by socio-
demographic trends, government initiatives and the expanding consumer
market are driving growth in the market.
As flagged by the DSM, the main emerging markets in the short-medium
term will be characterised by a combination of IoT with Cloud Computing
3
IDC, TXT. Definition of a Research and Innovation Policy Leveraging Cloud Computing
and IoT Combination. European Commission, SMART number 2013/0037. 2015.

1.3 Benefits and Challenges 3
and Big Data. In sight is the emergence of “smart environments” where hyper-
connectivity and data intelligence generate multiple new services (also with
other technologies such as robotics) and improve not only efficiency but also
spurs innovation, increasing quality of life and tackling societal challenges.
Areas like smart cities, smart homes, smart grid and smart mobility are already
witnessing the emergence of new ecosystems for IoT solutions, applications
and services. The transformation power goes beyond new actors and is likely
to touch the core activities of established players too, as highlighted by the
European Round Table of Industrialists4. This is an opportunity but also a risk
for incumbents if they do not adjust fast enough.
1.3 Benefits and Challenges
Now that digitisation is progressing and IoT is affecting increasing numbers
of companies in different areas, new questions are emerging for the ability of
the EU to benefit from this process.
First, there are still some fundamental design questions, in terms of how
the IoT technologies will be organised and structured. Admittedly, we may
have all building blocks: smaller, lighter, more power-efficient, and cheaper
hardware, more intelligent sensors and actuators, new platforms, ubiquitous
wireless connectivity, available cloud services and data analytics tools. But
the IoT is still characterised by vertical silos, which limits the creation of
vibrant ecosystems. PWC identifies a series of obstacles in that context:
market fragmentation, lack of unified standards and coexistence of open and
proprietary solutions, vertical focus5.
Another major challenge is the lack of an established horizontal platform6
that is pervasive enough to structure and nurture the IoT ecosystem. Whilst
some IoT solutions will certainly remain vertically orientated (e.g. to address
mobility or healthcare needs), the highest degree of innovation is expected to
be across areas (ex: car and home and city). But it is unlikely that IoT solutions
can be economically developed across different areas without horizontal
4
Press statement on Digitisation by Benoˆıt Potier, chairman of the European Round Table of
Industrialists (ERT) at the meeting with Chancellor Merkel, President Hollande and President
Juncker, 1 June 2015.
5
PWC. IoT Benmark Study. European Commission. 2015
6
A platform can be defined as comprising the hardware (including computing and storage),
software, communications, management (of the above and of intelligent and/or embedded
systems), orchestration, and services (data, APIs, analytics, etc.).

4 Introduction
platforms enabling core service elements to be managed across verticals and
companies.
We will need to avoid the same result as what happened for the mobile
ecosystems, where the leading platform providers are not headquartered in
Europe. The DSM is launching an investigation process into platforms, which
could also be relevant for the IoT, even though one should not confuse the
regulatory oversight of platforms with the development of new ones. The
challenge for the EU is to develop these platforms independently.
In that context, on-going efforts through Horizon2020 and dedicated
research calls around open platforms for develop IoT ecosystems, and large
scale IoT pilots for real-life experimentation, have the potential to help
establishing the EU at the forefront of a massive deployment of the IoT, and
one that is endorsed by EU citizens.
1.4 Conclusion
For many years, debate around the IoT has evolved between technology
explorations and philosophical and ethical conjectures, to the point that it
could jeopardise the business appetite for engaging in this research agenda.
Fortunately, this exploratory stage is being superseded by a new appetite for
growing the IoT market. Past debates and research ﬁndings have not been lost.
They should now be mobilised to speed up the market uptake and to address
the important remaining issues that may hamper the mainstreaming of the IoT.
The European Commission will support this agenda.

2
New Horizons for the Internet of Things
in Europe
Peter Friess and Rolf Riemenschneider
European Commission, Belgium
2.1 Introduction
The Internet of Things (IoT) represents the next major economic and societal
disruption enabled by the Internet, and any physical and virtual object can
becomeconnectedtootherobjectsandtotheInternet,creatingafabricbetween
things as well as between humans and things. The IoT offers to merge the
physical and the virtual worlds into a new smart environment, which senses,
analyses and adapts, and which makes our lives easier, safer, more efficient
and user-friendly.
Originally, the Internet was conceived to interconnect computers and
transmit messages with limited data exchange capability. With the advent
of web technologies, a first revolution took place enabling the linking of
documents and the creation of a world wide web of information (Web 1.0).
In the early 2000, the Internet evolved towards a universal communication
platform making it possible to carry all sorts of voice, video, or information
content, with social media enabling user-generated content (Web 2.0). Based
on existing communication platforms like the Internet but not limited to it, the
IoT represents the next step towards digitisation where all objects and people
are interconnected through communication networks, in and across private,
public and industrial spaces, and report about their status and/or about the
status of the surrounding environment.
2.2 The IoT Is the New Age
The IoT can thus be defined as a new era of ubiquitous connectivity and
intelligence, where a set of components, products, services and platforms
5

6 New Horizons for the Internet of Things in Europe
connects, virtualises and integrates everything in a communication network
for digital processing.
Although the IoT is based on various disciplines and technologies like e.g.
sensors, embedded systems, various communications technologies, semantic
and security technologies to name but a few, it requires a specific configuration
for object identification and search, open/closed data sharing, lightweight
communication protocols, trade-off between local and networked based
information processing, and backend integration. It also requires specific
considerations of data security (e.g. location-based profiling), liability (many
service providers involved) and trust (“disappearing objects”).
However, the IoT will not develop without cross-cutting approaches.
Focusingonverticalapplicationsriskreinforcingsilosandpreventsinnovation
across areas. Only through the horizontal support and real-time awareness
of the IoT can more powerful and disruptive innovation be delivered, and
the corresponding benefits for these application areas fully leveraged. IoT
promises to bring smart devices everywhere across boundaries, from the fridge
to the car, from the home to the hospital to the city. Connected devices will be
Figure 2.1 Different sequential and parallel pathways towards the Internet of Things.

2.3 The IoT Can Unleash a New Industrial and Innovation Era 7
powered by intelligence (embedded or in the network) to deliver new services
and applications that cut across verticals.
In short, the status quo is not enough. The aim should be that the whole
economy and society adopt the IoT, like what happened for mobile commu-
nication, so that it can generate maximum benefits: i) addressing societal
challenges (ex: environmental protection, resource optimization, security,
ageing, inclusion); ii) industrial leadership in the ICT field through new IoT
ecosystems and iii) growth, employment and innovation.
2.3 The IoT Can Unleash a New Industrial
and Innovation Era
IoT makes a significant reshaping of industry structures possible, with borders
between products and services as well as borders between industrial sectors
becoming much more blurred than today. This may materialise through:
• Service enhanced products: a typical example would be a car, aug-
mented by several hundreds of embedded sensors. With such a capacity,
a car becomes the focal point of an entire ecosystem that may include
remote maintenance, insurance, or geolocation services. This model is
similartotheiphonemodel,whichcorrespondstoaproduct(theterminal)
whose attraction and market value is significantly enhanced by the set of
services it gives access to (the app store).
• Increased efficiency and transformation in processes – (“smart
manufacturing”): the IoT makes it possible to track and integrate all
production and distribution steps in the value and logistics chain and to
reduce waste, increase timeliness, coordination and automation. This can
vastly increase efficiency while facilitating more flexible and tailored/
personalised production. For instance, supermarkets could be able to
provide a complete history of each product they sell in their shelves-
room, thus guaranteeing quality and offering services on top (ex: respon-
sible farming). Factories of the future could be fully connected and
automatedanddeliveries,includingthroughdronesandotherself-driving
vehicles, optimised and personalised.
• Tighter relation supplier/buyer: Smart, connected products expand
opportunities for product differentiation, moving competition away
from price alone. Knowing how customers actually use their products
enhances a company’s ability to segment customers, customise products,
set prices to better capture value, and extend personalised value-added

services. Through capturing rich historical and product-usage data,
buyers’ costs of switching to a new supplier may increase. The
deeper relationship with the customer hence serves to improve differ-
entiation with them while improving its offer towards other aircraft
manufacturers.
• Increased buyer power by giving buyers a better understanding of
true product performance, allowing them to play one provider against
another. Having access to product usage data can decrease their reliance
on the provider for advice and support. Finally, compared with ownership
models, “product as a service” business models or product-sharing
services can increase buyers’ power by reducing the cost of switching to
a new provider.
• New business models enabled by smart, connected products can create a
substitute for product ownership. Product-as-a-service business models,
for example, allow users to have full access to a product but pay only
for the amount of product they use. A variation of product-as-a-service
is the shared-usage model. Companies like UBER or blablacar are exam-
ples that provide alternatives to car ownership. Equivalent substitutes for
car ownership and has led traditional automakers to enter the car-sharing
market with offerings such DriveNow from BMW, or Dash from Toyota.
• New innovative actors and start-ups: developments like the “maker
culture”, an extension of the DIY culture stress new and unique applica-
tions of technologies and encourage invention and prototyping, having a
strong focus on using and learning practical skills and applying them
creatively. SMEs can take advantage of the availability of IoT open
platforms and test-beds and open source hardware and software to reduce
development costs and time-to-market, and to support collaboration
among businesses of different areas such as software, sensors, devices,
and user businesses.
2.4 Issues to Be Tackled
Although the horizontal character of the IoT is recognized the creation of IoT
ecosystems is a pre-requisite for the development of innovation and take up
in the EU, which is still in an emerging phase. The IoT requires alliances
between multiple sectors and stakeholders to cover an increasingly complex
value chain. It also requires open platforms that can integrate many different
types of equipment and application.

2.4 Issues to Be Tackled 9
Another important roadblock to build IoT ecosystems relates to the lack
of employee skills/knowledge, reported as being an important obstacle facing
organizations in using IoT. To quote a leading medical device company, “Our
sales force has been used to selling equipment, but now they need to sell IT
solutions. They need to be able to convince customers on the value received
by connecting their equipment”.
Moreover, the IoT needs to be developed as an integral part of the Digital
Single Market with a focus on creating an enabling environment for these
technologies to be rolled out quickly and across the whole of Europe so as
to reap economies of scale and productivity gains for our economies. This
includes considering provisions to remove regulatory obstacles that prevent
take up on a continental basis. In this context the European Union is willing
to examine solutions to promote innovation and create a legal framework that
encourages deployment.
The development of IoT may also raise privacy concerns since smart
objects will collect more and new kinds of data, including personal data,
and will exchange data automatically, which may lead to a perception of loss
of control by citizens. IoT may further provoke ethical questions pertaining in
particular to individuals’autonomy, accountability for object behaviour, or the
precautionary principle. Recent examples of hacking objects have shown that
the development of IoT and its integration in systems enabling key economic
and societal activities may raise security and resilience issues which may
require further organizational measures.
Liability is also seen as an important issue to address, in situation where
wrong decisions may be taken by smart devices and connected systems. These
issues are critical to acceptability of the technology by citizens. Education is
needed as well as legal guidance for proper deployment conditions to make
sure that the IoT serves EU values and beneﬁts citizens genuinely, and to avoid
the perception that IoT could lead to a dehumanised society controlled by the
machines and/or a reinforcing of the digital divide and of social exclusion.
The EU level is particularly relevant to guarantee adherence to European
values such as fundamental rights, protection of integrity, inclusion, as well
as openness, fair competition and open innovation.
Finally, there is a need to move into testing and deployment of IoT
technologies in real-life settings. Uncertainty about business models and
uncertainty about standards is generating information asymmetries and market
failures preventing investment and risk-taking. In this perspective Large Scale
Pilots would support testing the deployment of large amounts of sensors, or
the interoperability of applications in different areas. Large Scale Pilots could

also be used to investigate acceptability by users and business models. This
could play an important role to address security and trust issues in an integrated
manner and could contribute to certification and validation in the IoT area, as
well as to certification.
2.5 Building IoT Innovation Ecosystems
IoT could become the innovation engine “par excellence”, and will bring
to the market entire new classes of new devices, around which sustainable
innovation could take shape. Innovation in this respect can be seen from
different perspectives: i) open platforms, as outlined above, can be leveraged
by innovators to create new products and services, possibly in partnership with
larger players; ii) for small start-up players, it is important to benefit from an
innovation ecosystem where new ideas can be nurtured and incubated, before
being introduced to the market.
The creation of IoT innovation ecosystems is an opportunity for Europe.
Although there is no single definition for ecosystems, it is certainly important
to note that they coevolve their capabilities and roles, and tend to align them-
selves with the directions set by one or more central companies. Leadership
roles may change over time, but the function of ecosystem leader is valued by
the community because it enables members to move towards shared visions
to align their investments, and to find mutually supportive roles.1 It also
means that companies need to become proactive in developing mutually
beneficial (“symbiotic”) relationships with customers, suppliers, and even
competitors.
IoT innovation ecosystems could be created around specific solutions (ex:
car,home,city,hospital,devices),andbebasedonopenplatformstodeliverfor
instance applications and services dedicated to families of connected devices.
In this context a proliferation of IoT applications and services has to lend
itself on a reliable and interoperable infrastructure for device communication,
smart cooperation and edge intelligence. In addition, hardware developments
and new IoT products could be developed around Fablabs and IoT factories,
providing all the necessary support and infrastructure to develop connected
objects.
1
Moore, James F. (1993). “Predators and prey: A new ecology of competition”. Harvard
Business Review (May/June): 75–86.

2.6 IoT Large Scale Pilots for Testing and Deployment 11
2.6 IoT Large Scale Pilots for Testing and Deployment
The deployment of IoT concerns complex systems and potentially addresses
a large population of actors with different cultures and interests. Putting them
together to realise a system that can operate at large scale under multiple
operational constraints is still risky, and business models across complex
value chains are not always well understood. The challenge is to foster the
deployment of IoT solutions in Europe through integration of advanced IoT
technologies across the value chain, demonstration of multiple IoT applica-
tions at scale and in a usage context, and as close as possible to operational
conditions.
To move forward, the idea of deploying large scale pilots is gaining
momentum globally. These pilots are designed not only to validate techno-
logical approaches from a scalability and operational perspective, but also
to validate usability and user “positive reaction” to new service. From a
public policy perspective, these pilots need to be driven by considerations
of openness that lock-in situations and limited interoperability are avoided
whilst the possibility to build open innovation on top is maximised.
Considering the important investments on IoT technologies which have
already been taken at EU and Member States levels, it is evident to realize
the next big step towards implementation of large scale pilots. Under Horizon
2020, the European Commission will launch a series of large scale pilots in
promising domains cutting across the interest of multiple usage sectors, and
cutting across different industrial sectors, both from supply and demand side
perspectives. These use cases will be supported by open platforms. The pilots
will not be designed as a pure technology exercise but in a way to deliver
best practices in terms of technology and standards applicability, privacy and
security, business models, and user acceptance. The pilots should also be used
to derive methodologies to design Privacy and Security impact assessments
in the IoT context.
The piloting activities will be complemented with support actions address-
ing challenges critically important for the take-up of IoT at the anticipated
scale. These include ethics and privacy, trust and security, standards and
interoperability,useracceptability,liabilityandsustainability,andnewwaysof
creativity including the combination of ICT andArt. In addition the pilots will
be complemented through international cooperation and speciﬁc IoT research
and innovation efforts for ensuring the longer-term evolution of Internet of
Things.

2.7 Alliance for Internet of Things Innovation
In the past months it became obvious that no thorough and wide ranging inno-
vation with happen without cooperation. In order to deliver comprehensive
solutions, cooperation even with potential competitors or with new partners
entering the ﬁeld of IoT is pivotal for two reasons: 1) one single entity cannot
provide all components of a solution, and 2) because of multiple possible
technical combinations and implementations, co-development reduces the risk
of failure and sub-optimal solutions and provides best practices.
In order to support this process the Commission facilitated the creation
of a new Alliance named AIOTI – Alliance for Internet of Things Innovation,
comprising in particular industry representatives from larger but also younger
IoT innovators. This Alliance, which is open by nature, and their members
strivetogetherthatEuropewillhavethemostdynamicandagileIoTecosystem
and industry in the world, with the ultimate goal to transform people’s lives,
drive growth, create employment and address societal challenges.
Figure 2.2 The Alliance Momentum declaration.

2.8 Conclusions 13
The Alliance for Internet of Things Innovation (AIOTI) is also an impor-
tant tool for supporting the policy and dialogue within the Internet of Things
world and within the European Commission. It builds on the work of the IoT
European Research Cluster (IERC) and expands activities towards innovation
within and across industries. In light of the IoT Large Scale Pilots to be funded
under the Horizon 2020 Research and Innovation Program, theAlliance allows
all potential stakeholders to pre-structure potential approaches in the areas of
but not limited to smart living environments, smart farming, wearables, smart
cities, mobility and smart environment.
Not limited to IoT Large Scale Pilots as such, the Alliance has also set up
workgroups in the ﬁelds of Innovation Ecosystems, IoT Standardisation and
Policy issues (trust, security, liability, privacy). Overall the alliance will help
to create the necessary links and to forge cross-sectorial synergies.
2.8 Conclusions
The Internet of Things has entered the next stage and reached early adopters
and the market. Yet a sound effort is necessary for providing interoperable and
trustful IoT implementations. From emerging IoT Ecosystems towards IoT
Large Scale Pilots, the European Commission attributes a great importance to
IoT activities driven by end-user and citizen, and involving existing and new
communities at an early stage.
It would be a strategic mistake not to take up the challenge for the EU to
become one of the global leaders in the IoT ﬁeld – Europe has today a unique
opportunity to use the IoT to rejuvenate its industry, deal with its ageing
population and transform its cities into places to be.

3
Internet of Things beyond the Hype:
Research, Innovation and Deployment
Ovidiu Vermesan1, Peter Friess2, Patrick Guillemin3,
Raffaele Giaffreda4, Hanne Grindvoll1, Markus Eisenhauer5,
Martin Serrano6, Klaus Moessner7, Maurizio Spirito8,
Lars-Cyril Blystad1 and Elias Z. Tragos9
1SINTEF, Norway
2European Commission, Belgium
3ETSI, France
4CREATE-NET, Italy
5Fraunhofer FIT, Germany
6National University of Ireland Galway, Ireland
7University of Surrey, UK
8ISMB, Italy
9FORTH, Greece
“There’s a way to do it better. Find it.” Thomas Edison
3.1 Internet of Things Vision
Internet of Things (IoT) is a concept and a paradigm that considers pervasive
presence in the environment of a variety of things/objects that through
wireless and wired connections and unique addressing schemes are able to
interact with each other and cooperate with other things/objects to create new
applications/services and reach common goals. In this context the research and
development challenges to create a smart world are enormous. A world where
the real, digital and the virtual are converging to create smart environments
that make energy, transport, cities and many other areas more intelligent. The
goal of the Internet of Things is to enable things to be connected anytime,
anyplace, with anything and anyone ideally using any path/network and
any service. Internet of Things is a new revolution of the Internet. Objects
15

16 Internet of Things beyond the Hype: Research, Innovation and Deployment
make themselves recognizable and they obtain intelligence by making or
enabling context related decisions thanks to the fact that they can communicate
information about themselves and they can access information that has
been aggregated by other things, or they can be components of complex
services [71].
The various layers of the IoT value chain cover several distinct product
or service categories. Sensors provide much of the data gathering, actuators
act, radios/communications chips provide the underlying connectivity, micro-
controllers provide the processing of that data, modules combine the radio,
sensor and microcontroller, combine it with storage, and make it “insertable”
into a device. Platform software provides the underlying management and
billing capabilities of an IoT network, while application software presents
all the information gathered in a usable and analysable format for end users.
The underlying telecom infrastructure (usually wireless spectrum) provides
the means of transporting the data while a service infrastructure needs to be
created for the tasks of designing, installing, monitoring and servicing the IoT
deployment.CompanieswillcompeteatonelayeroftheIoTvaluechain,while
many will create solutions from multiple layers and functionally compete in
a more vertically integrated fashion. [42].
Figure 3.1 Internet of Things Integration.

3.1 Internet of Things Vision 17
The Internet of Things makes use of synergies that are generated by the
convergence of Consumer, Business and Industrial Internet. The convergence
creates the open, global network connecting people, data, and things. This
convergence leverages the cloud to connect intelligent things that sense and
transmit a broad array of data, helping creating services that would not
be obvious without this level of connectivity and analytical intelligence.
The use of platforms is being driven by transformative technologies such
as cloud, things, and mobile. The Internet of Things and Services makes
it possible to create networks incorporating the entire manufacturing pro-
cess that convert factories into a smart environment. The cloud enables
a global infrastructure to generate new services, allowing anyone to cre-
ate content and applications for global users. Networks of things connect
things globally and maintain their identity online. Mobile networks allow
connection to this global infrastructure anytime, anywhere. The result is
a globally accessible network of things, users, and consumers, who are
available to create businesses, contribute content, generate and purchase new
services.
Platforms also rely on the power of network effects, as they allow more
things, they become more valuable to the other things and to users that make
use of the services generated. The success of a platform strategy for IoT
can be determined by connection, attractiveness and knowledge/information/
data ﬂow.
The Alliance for Internet of Things Innovation (AIOTI) was recently
initiated by the European Commission in order to develop and support the
dialogue and interaction among the Internet of Things (IoT) various players.
The overall goal of the establishment of theAIOTI is the creation of a dynamic
European IoT ecosystem to unleash the potentials of the IoT.
The AIOTI will assist the European Commission in the preparation of
future IoT research as well as innovation and standardisation policies. It is also
going to play an essential role in the designing of IoTLarge Scale Pilots, which
will be funded by the Horizon 2020 Research and Innovation Programme. The
members of AIOTI will jointly work on the creation of a dynamic European
IoT ecosystem. This ecosystem is going to build on the work of the IoT
Research Cluster (IERC) and spill over innovation across industries and
business sectors of IoT transforming ideas to IoT solutions.
The European Commission (EC) considers that IoT will be pivotal in
enabling the digital single market, through new products and services. The
IoT, big data, cloud computing and their related business models will be the
three most important drivers of the digital economy, and in this context it is

fundamental for a fully functional single market in Europe to address aspects
of ownership, access, privacy and data flow – the new production factor.
New generations of networks, IoT and cloud computing are also vectors
of industrial strategy. The IoT stakeholders are creating a new ecosystem that
cuts across vertical areas, in convergence between the physical and digital
words. It combines connectivity, data generation, processing and analytics,
with actuation and new interfaces, resulting in new products and services
based on platforms and software and apps.
Internet of Things developments implies that the environments, cities,
buildings, vehicles, clothing, portable devices and other objects have more
and more information associated with them and/or the ability to sense,
communicate, network and produce new information. In addition the network
technologies have to cope with the new challenges such as very high data
rates, dense crowds of users, low latency, low energy, low cost and a massive
number of devices. Wireless connectivity anywhere, anytime and between
every-body and every-thing (smart houses, vehicles, cities, offices etc.) is
gaining momentum, rendering our daily lives easier and more efficient. This
momentum will continue to rise, resulting in the need to enable wireless con-
nections between people, machines, communities, physical things, processes,
content etc. anytime, in flexible, reliable and secure ways. The air interfaces
for 2G, 3G, and 4G were all designed for specific use cases with certain KPIs
in mind (throughput, capacity, dropped/blocked call rates etc.). However, the
emerging trend of connecting everything to the Internet (IoT and Internet
of Vehicles, IoV) brings up the need to go beyond such an approach. The
inclusion of the above mentioned use cases pose new challenges due to the
broader range of service and device classes, ranging from IoT to short range
Mobile Broadband (MBB) communications (e.g. WiFi) and from high-end
smartphone to low-end sensor. Furthermore, each service type/device class
has more stringent requirements than ever (e.g. air interface latency in the
order of 1ms) and some of these requirements are conflicting (e.g. to support
very low latencies, energy and resource efficiency may not be optimal). So, the
challenge is not only to increase the user rates or the capacity (as has always
been so far) but also to master the heterogeneity and the trade-off between the
conflicting requirements as presented in Figure 3.2 [3].
As the Internet of Things becomes established in smart factories, both the
volume and the level of detail of the corporate data generated will increase.
Moreover, business models will no longer involve just one company, but
will instead comprise highly dynamic networks of companies and completely
new value chains. Data will be generated and transmitted autonomously by

Figure 3.2 Design principles, services and related KPIs [3].
smart machines and these data will inevitably cross company boundaries. A
number of specific dangers are associated with this new context – for example,
data that were initially generated and exchanged in order to coordinate
manufacturing and logistics activities between different companies could,
if read in conjunction with other data, suddenly provide third parties with
highly sensitive information about one of the partner companies that might,
for example, give them an insight into its business strategies. New instruments
will be required if companies wish to pursue the conventional strategy of
keeping such knowledge secret in order to protect their competitive advantage.
New, regulated business models will also be necessary – the raw data that
are generated may contain information that is valuable to third parties and
companies may therefore wish to make a charge for sharing them. Innovative
business models like this will also require legal safeguards (predominantly in
the shape of contracts) in order to ensure that the value added created is shared
out fairly, e.g. through the use of dynamic pricing models [56].
3.1.1 Internet of Things Common Definition
The IoT is a key enabling technology for digital businesses. Approximately
3.9 billion connected things were in use in 2014 and this figure is expected
to rise to 25 billion by 2020. Gartner’s top 10 strategy technology trends
[55] cover three themes: the merging of the real and virtual worlds, the
advent of intelligence everywhere, and the technology impact of the digital
business shift.

Figure 3.3 Cyber-physical sytems as building blocks of IoT applications.
The traditional distinction between network and device is starting to blur
as the functionalities of the two become indistinguishable. Shifting the focus
from the IoT network to the devices costs less, scales more gracefully, and
leads to immediate revenues.
The systemic nature of innovation requires the need for coordination
stakeholders, systems and services in interaction-intensive environments with
a permanent and seamless mix of online and real-world experiences and
offerings, as the IoT will consist of countless cyber-physical systems (CPS).
The overlay of virtual and physical will be enabled by layered and augmented
reality interfaces for interconnected things, smartphones, wearables, industrial
equipment, which will exchange continuous data via edge sensor/actuator
networks and context-aware applications using ubiquitous connectivity and
computing by integrating technologies such as cloud edge cloud/fog and
mobile. In this context the IoT applications will have real time access to
intelligence about virtual and physical processes and events by open, linked
and smart data.
Gartner[54,55]identiﬁesthatthecombinationofdatastreamsandservices
created by digitizing everything creates four basic usage models:
• Manage
• Monetize

• Operate
• Extend.
These can be applied to people, things, information, and places, and therefore
the so called “Internet of Things” will be succeeded by the “Internet of
Everything.”
In this context the notion of network convergence using IP is fundamental
and relies on the use of a common multi-service IP network supporting a wide
range of applications and services.
Figure 3.4 The top 10 strategic technology trends for 2015 [55].

The Internet of Things is not a single technology, it’s a concept in
which most new things are connected and enabled such as street lights being
networked and things like embedded sensors, image recognition functionality,
augmented reality, near field communication are integrated into situational
decision support, asset management and new services. These bring many
business opportunities and add to the complexity of IT [52].
To accommodate the diversity of the IoT, there is a heterogeneous mix of
communication technologies, which need to be adapted in order to address the
needs of IoT applications such as energy efficiency, security, and reliability.
In this context, it is possible that the level of diversity will be scaled to a
number a manageable connectivity technologies that address the needs of the
IoT applications, are adopted by the market, they have already proved to be
serviceable, supported by a strong technology alliance.
The Internet of Things provides solutions based on the integration of
information technology, which refers to hardware and software used to store,
retrieve, and process data and communications technology which includes
electronic systems used for communication between individuals or groups.
The rapid convergence of information and communications technology is
taking place at three layers of technology innovation: the cloud, data and
communication pipes/networks and device [44].
IoT will rearrange the tech landscape, again. IoT has key attributes that
distinguish it from the “regular” Internet, as captured by the S-E-N-S-E
framework presented in Figure 3.5. These attributes may tilt the direction
of technology development and adoption, with significant implications for
Tech companies, much like the transition from the fixed to the mobile
Internet shifted the centre of gravity among the different actors in the value
chain.
Figure 3.5 Making S-E-N-S-E of the Internet of Things (Source: Goldman Sachs Global
Investment Research).

The synergy of the access and potential data exchange opens huge new
possibilities for IoT applications. Already over 50% of Internet connections
are between or with things.
By 2020, over 30 billion connected things, with over 200 billion with
intermittent connections are forecast. Key technologies here include embed-
ded sensors, image recognition and NFC. By 2015, in more than 70% of
enterprises, a single executable will oversee all Internet connected things.
This becomes the Internet of Everything [53].
As a result of this convergence, the IoT applications require that classical
industries are adapting and the technology will create opportunities for new
industries to emerge and to deliver enriched and new user experiences and
services.
In addition, to be able to handle the sheer number of things and objects that
willbeconnectedintheIoT,cognitivetechnologiesandcontextualintelligence
are crucial.This also applies for the development of context aware applications
that need to be reaching to the edges of the network through smart devices
that are incorporated into our everyday life.
The Internet is not only a network of computers, but it has evolved into
a network of devices of all types and sizes, vehicles, smartphones, home
appliances, toys, cameras, medical instruments and industrial systems, all
connected, all communicating and sharing information all the time.
The Internet of Things had until recently different means at different
levels of abstractions through the value chain, from lower level semiconductor
through the service providers.
The Internet of Things is a “global concept” and requires a common
definition. Considering the wide background and required technologies,
from sensing device, communication subsystem, data aggregation and pre-
processing to the object instantiation and finally service provision, generating
an unambiguous definition of the “Internet of Things” is non-trivial.
The IERC is actively involved in ITU-T Study Group 13, which leads
the work of the International Telecommunications Union (ITU) on stan-
dards for next generation networks (NGN) and future networks and has
been part of the team which has formulated the following definition [67]:
“Internet of things (IoT): A global infrastructure for the information society,
enabling advanced services by interconnecting (physical and virtual) things
based on existing and evolving interoperable information and communication
technologies. NOTE 1 – Through the exploitation of identification, data
capture, processing and communication capabilities, the IoT makes full
use of things to offer services to all kinds of applications, whilst ensuring

Figure3.6IoTArchitecturalView.

3.2 IoT Strategic Research and Innovation Directions 25
Figure 3.7 IoT Definition [70].
that security and privacy requirements are fulfilled. NOTE 2 – From a broader
perspective, the IoT can be perceived as a vision with technological and
societal implications.”
The IERC definition [70] states that IoT is “A dynamic global net-
work infrastructure with self-configuring capabilities based on standard
and interoperable communication protocols where physical and virtual
“things” have identities, physical attributes, and virtual personalities and
use intelligent interfaces, and are seamlessly integrated into the information
network.”.
3.2 IoT Strategic Research and Innovation Directions
The development of enabling technologies such as nanoelectronics, communi-
cations, sensors, smart phones, embedded systems, cloud networking, network
virtualization and software will be essential to provide to things the capability
to be connected all the time everywhere. This will also support important
future IoT product innovations affecting many different industrial sectors.
Some of these technologies such as embedded or cyber-physical systems form
the edges of the “Internet of Things” bridging the gap between cyber space and
the physical world of real “things”, and are crucial in enabling the “Internet of
Things” to deliver on its vision and become part of bigger systems in a world
of “systems of systems”.

The final report of the Key Enabling Technologies (KET), of the High-
Level Expert Group [45] identified the enabling technologies, crucial to many
of the existing and future value chains of the European economy:
• Nanotechnologies
• Micro and Nano electronics
• Photonics
• Biotechnology
• Advanced Materials
• Advanced Manufacturing Systems
As such, IoT creates intelligent applications that are based on the supporting
KET’s identified, as IoT applications address smart environments either
physical or at cyber-space level, and in real time.
To this list of key enablers, we can add the global deployment of
IPv6 across the World enabling a global and ubiquitous addressing of any
communicating smart thing.
From a technology perspective, the continuous increase in the integration
density proposed by Moore’s Law was made possible by a dimensional
scaling: in reducing the critical dimensions while keeping the electrical
field constant, one obtained at the same time a higher speed and a reduced
power consumption of a digital MOS circuit: these two parameters became
driving forces of the microelectronics industry along with the integration
density.
The International Technology Roadmap for Semiconductors has empha-
sized in its early editions the “miniaturization” and its associated benefits
in terms of performances, the traditional parameters in Moore’s Law. This
trend for increased performances will continue, while performance can always
be traded against power depending on the individual application, sustained
by the incorporation into devices of new materials, and the application of
new transistor concepts. This direction for further progress is labelled “More
Moore”.
The second trend is characterized by functional diversification of
semiconductor-based devices. These non-digital functionalities do contribute
to the miniaturization of electronic systems, although they do not necessarily
scale at the same rate as the one that describes the development of digital
functionality. Consequently, in view of added functionality, this trend may be
designated “More-than-Moore” [48].
Mobile data traffic is projected to double each year between now and
2015 and mobile operators will find it increasingly difficult to provide the

bandwidth requested by customers. In many countries there is no additional
spectrum that can be assigned and the spectral efficiency of mobile net-
works is reaching its physical limits. Proposed solutions are the seamless
integration of existing Wi-Fi networks into the mobile ecosystem. This will
have a direct impact on Internet of Things ecosystems. The chips designed
to accomplish this integration are known as “multicom” chips. Wi-Fi and
baseband communications are expected to converge and the architecture of
mobile devices is likely to change and the baseband chip is expected to
take control of the routing so the connectivity components are connected
to the baseband or integrated in a single silicon package. As a result of this
architecture change, an increasing share of the integration work is likely done
by baseband manufacturers (ultra -low power solutions) rather than by handset
producers.
Today many European projects and initiatives address Internet of Things
technologies and knowledge. Given the fact that these topics can be highly
diverse and specialized, there is a strong need for integration of the individual
results. Knowledge integration, in this context is conceptualized as the process
through which disparate, specialized knowledge located in multiple projects
across Europe is combined, applied and assimilated.
The Strategic Research and Innovation Agenda (SRIA) is the result of
a discussion involving the projects and stakeholders involved in the IERC
activities, which gather the major players of the European ICT landscape
addressing IoT technology priorities that are crucial for the competitiveness
of European industry.
IERC Strategic Research and Innovation Agenda covers the important
issues and challenges for the Internet of Things technology. It provides
the vision and the roadmap for coordinating and rationalizing current and
future research and development efforts in this field, by addressing the
different enabling technologies covered by the Internet of Things concept and
paradigm.
Many other technologies are converging to support and enable IoT
applications. These technologies are summarised as:
• IoT architecture
• Identification
• Communication
• Networks technology
• Network discovery
• Software and algorithms

• Hardware technology
• Data and signal processing
• Discovery and search engine
• Network management
• Power and energy storage
• Security, trust, dependability and privacy
• Interoperability
• Standardization
The Strategic Research and Innovation Agenda is developed with the support
of a European-led community of interrelated projects and their stakeholders,
dedicated to the innovation, creation, development and use of the Internet of
Things technology.
Since the release of the first version of the Strategic Research and
Innovation Agenda, we have witnessed active research on several IoT topics.
On the one hand this research filled several of the gaps originally identified in
the Strategic Research and Innovation Agenda, whilst on the other it created
new challenges and research questions. Recent advances in areas such as
cloud computing, cyber-physical systems, autonomic computing, and social
networks have changed the scope of the Internet of Thing’s convergence even
more so. The Cluster has a goal to provide an updated document each year that
records the relevant changes and illustrates emerging challenges. The updated
release of this Strategic Research and InnovationAgenda builds incrementally
on previous versions [70, 71, 92, 93] and highlights the main research
topics that are associated with the development of IoT enabling technologies,
infrastructures and applications with an outlook towards 2020 [82].
The research items introduced will pave the way for innovative applica-
tions and services that address the major economic and societal challenges
underlined in the EU 2020 Digital Agenda [83].
The IERC Strategic Research and Innovation Agenda is developed incre-
mentally based on its previous versions and focus on the new challenges being
identified in the last period.
The updated release of the Strategic Research and Innovation Agenda
is highlighting the main research topics that are associated with the devel-
opment of IoT infrastructures and applications, with an outlook towards
2020 [82].
The timeline of the Internet of Things Strategic Research and Innovation
Agenda covers the current decade with respect to research and the following
years with respect to implementation of the research results. Of course,

as the Internet and its current key applications show, we anticipate unex-
pected trends will emerge leading to unforeseen and unexpected development
paths.
The Cluster has involved experts working in industry, research and
academia to provide their vision on IoT research challenges, enabling tech-
nologies and the key applications, which are expected to arise from the current
vision of the Internet of Things.
The IoT Strategic Research and Innovation Agenda covers in a logical
manner the vision, the technological trends, the applications, the technology
enablers, the research agenda, timelines, priorities, and finally summarises in
two tables the future technological developments and research needs.
The field of the Internet of Things is based on the paradigm of supporting
the IP protocol to all edges of the Internet and on the fact that at the edge of
the network many (very) small devices are still unable to support IP protocol
stacks. This means that solutions centred on minimum Internet of Things
devices are considered as an additional Internet of Things paradigm without
IP to all access edges, due to their importance for the development of the
field.
3.2.1 IoT Applications and Deployment Scenarios
The IERC vision is that “the major objectives for IoT are the creation of smart
environments/spaces and self-aware things (for example: smart transport,
products, cities, buildings, rural areas, energy, health, living, etc.) for climate,
food, energy, mobility, digital society and health applications” [70].
The outlook for the future is the emerging of a network of intercon-
nected uniquely identifiable objects and their virtual representations in an
Internet alike structure that is positioned over a network of interconnected
computers allowing for the creation of a new platform for economic
growth.
Smart is the new green as defined by Frost & Sullivan [49] and the
green products and services will be replaced by smart products and services.
Smart products have a real business case, can typically provide energy and
efficiency savings of up to 30 per cent, and generally deliver a two- to
three-year return on investment. This trend will help the deployment of
Internet of Things applications and the creation of smart environments and
spaces.
At the city level, the integration of technology and quicker data analysis
will lead to a more coordinated and effective civil response to security

and safety (law enforcement and blue light services); higher demand for
outsourcing security capabilities.
At the building level, security technology will be integrated into systems
and deliver a return on investment to the end-user through leveraging the
technology in multiple applications (HR and time and attendance, customer
behaviour in retail applications etc.).
There will be an increase in the development of “Smart” vehicles which
have low (and possibly zero) emissions. They will also be connected to infras-
tructure. Additionally, auto manufacturers will adopt more use of “Smart”
materials.
The key focus will be to make the city smarter by optimizing resources,
feedingitsinhabitantsbyurbanfarming,reducingtrafﬁccongestion,providing
more services to allow for faster travel between home and various destinations,
and increasing accessibility for essential services. It will become essential to
have intelligent security systems to be implemented at key junctions in the city.
Various types of sensors will have to be used to make this a reality. Sensors
are moving from “smart” to “intelligent”.
Figure 3.8 IoT applications for integration of different vertical sectors.

Wastewater treatment plants will evolve into bio-refineries. New, innova-
tive wastewater treatment processes will enable water recovery to help close
the growing gap between water supply and demand.
Self-sensing controls and devices will mark new innovations in the
Building Technologies space. Customers will demand more automated, self-
controlled solutions with built in fault detection and diagnostic capabilities.
Development of smart implantable chips that can monitor and report
individual health status periodically will see rapid growth.
Smart pumps and smart appliances/devices are expected to be significant
contributors towards efficiency improvement. Process equipment with in built
“smartness” to self-assess and generate reports on their performance, enabling
efficient asset management, will be adopted.
The Industrial Internet starts with embedding sensors and other advanced
instrumentation in an array of machines from the simple to the highly
complex. This allows the collection and analysis of an enormous amount of
data, which can be used to improve machine performance, and inevitably
the efficiency of the systems and networks that link them. Even the data
itself can become “intelligent,” instantly knowing which users it needs to
reach.
Consumer IoT is essentially wireless, while the industrial IoT has to deal
with an installed base of millions of devices that could potentially become
part of this network (many legacy systems installed before IP deployment).
These industrial objects are linked by wires that provides the reliable com-
munications needed. The industrial IoT has to consider the legacy using
specialised protocols, including Lonworks, DeviceNet, Profibus and CAN
and they will be connected into this new network of networks through
gateways.
The automation and management of asset-intensive enterprises will be
transformed by the rise of the IoT, Industry 4.0, or simply Industrial Internet.
Compared with the Internet revolution, many product and asset manage-
ment solutions have laboured under high costs and poor connectivity and
performance. This is now changing. New high-performance systems that
can support both Internet and Cloud connectivity as well as predictive
asset management are reaching the market. New cloud computing mod-
els, analytics, and aggregation technologies enable broader and low cost
application of analytics across these much more transparent assets. These
developments have the potential to radically transform products, channels,
and company business models. This will create disruptions in the busi-
ness and opportunities for all types of organizations – OEMs, technology

suppliers, system integrators, and global consultancies. There may be the
opportunity to overturn established business models, with a view toward
answering customer pain points and also growing the market in segments
that cannot be served economically with today’s offerings. Mobility, local
diagnostics, and remote asset monitoring are important components of these
new solutions, as all market participants need ubiquitous access to their
assets, applications, and customers. Real-time mobile applications support
EAM, MRO, inventory management, inspections, workforce management,
shop floor interactions, facilities management, field service automation, fleet
management, sales and marketing, machine-to-machine (M2M), and many
others [57].
In this context the concept of Internet of Energy requires web based
architectures to readily guarantee information delivery on demand and to
change the traditional power system into a networked Smart Grid that is
largely automated, by applying greater intelligence to operate, enforce poli-
cies, monitor and self-heal when necessary. This requires the integration and
interfacing of the power grid to the network of data represented by the Internet,
embracing energy generation, transmission, delivery, substations, distribution
control, metering and billing, diagnostics, and information systems to work
seamlessly and consistently.
The concept enables the ability to produce, store and efficiently use energy,
while balancing the supply/demand by using a cognitive Internet of Energy
that harmonizes the energy grid by processing the data, information and
knowledge via the Internet. The Internet of Energy concept leverages on the
information highway provided by the Internet to link devices and services with
the distributed smart energy grid that is the highway for renewable energy
resources allowing stakeholders to use green technologies and sell excess
energy back to the utility. The concept has the energy management element
in the centre of the communication and exchange of data and energy.
The Smart-X environments are implemented using CPS building blocks
integrated into Internet of X applications connected through the Internet
and enabling seamless and secure interactions and cooperation of intelligent
embedded systems over heterogeneous communication infrastructures.
It is expected that this “development of smart entities will encourage devel-
opment of the novel technologies needed to address the emerging challenges of
public health, aging population, environmental protection and climate change,
conservation of energy and scarce materials, enhancements to safety and secu-
rity and the continuation and growth of economic prosperity.” The IoT appli-
cations are further linked with Green ICT, as the IoTwill drive energy-efficient

3.3 IoT Smart-X Applications 33
Figure 3.9 CPS building blocks for Internet of X applications.
applications such as smart grid, connected electric cars, energy-efﬁcient
buildings, thus eventually helping in building green intelligent cities.
3.3 IoT Smart-X Applications
The IoT applications are addressing the societal needs and the advancements
to enabling technologies such as nanoelectronics and cyber-physical systems
continue to be challenged by a variety of technical (i.e., scientiﬁc and
engineering), institutional, and economical issues.
The list is focusing to the applications chosen by the IERC as priorities for
the next years and it provides the research challenges for these applications.
While the applications themselves might be different, the research challenges
are often the same or similar.
3.3.1 Wearables
Wearables are integrating key technologies (e.g. nanoelectronics, organic
electronics, sensing, actuating, communication, low power computing, visu-
alisation and embedded software) into intelligent systems to bring new
functionalities into clothes, fabrics, patches, watches and other body-mounted
devices.

Figure 3.10 Smart wristbands and watches – connected IoT devices.
These intelligent edge devices are more and more part of integrated IoT
solutions and assist humans in monitoring, situational awareness and decision
making. They can provide actuating functions for fully automated closed-loop
solutions that are used in healthcare, well-being, safety, security, infotainment
applications and connected with smart buildings, energy, lighting, mobility or
smart cities IoT applications. With more than 35 million connected wearable
devices in use by the end of 2014, developers are pushing the technological
integration into IoT applications looking for the innovation opportunities in
different domains. Today, Over 75% of consumers with wearable devices
stop using them within 6 months. The challenge for developers is to leverage
actionable data to create apps that are seamlessly integrated into everyday life
and integrate them with other IoT applications.
Creating a seamless user experience is essential for wearable application
success. Leveraging tools to implement gesture-centric interfaces will allow
users to make the most of limited surfaces of the wearables. The integration
into common IoT platforms where developers can access data gathered from
wearable devices is essential recombining datasets to develop applications
for speciﬁc use cases. The industrial sector offers many opportunities for
developers with the augmented reality headsets needed to be used to integrate
wearables for solving real problems in the industrial sector.
The market for wearable computing is expected to grow six-fold, from 46
million units in 2014 to 285 million units in 2018 [51]. Wearable computing
applications include everything from ﬁtness trackers, health monitors, smart

watches that provide new ways to interact with and utilize your smartphone,
to augmented reality glasses wearable computing device.
Fitness tracking is the biggest application today and this opens the
opportunities for watches that are capable of tracking blood pressure, glu-
cose, temperature, pulse rate and other vital parameters measured every few
seconds for a long period of time to be integrated in new kinds of healthcare
applications. Glasses for augmented reality can be another future wearable
application.
3.3.2 Smart Health, Wellness and Ageing Well
The market for health monitoring devices is currently characterised by
application-speciﬁc solutions that are mutually non-interoperable and are
made up of diverse architectures. While individual products are designed to
cost targets, the long-term goal of achieving lower technology costs across
current and future sectors will inevitably be very challenging unless a more
coherent approach is used. The IoT can be used in clinical care where
hospitalized patients whose physiological status requires close attention can
be constantly monitored using IoT -driven, non-invasive monitoring. This
requires sensors to collect comprehensive physiological information and uses
gateways and the cloud to analyse and store the information and then send the
analysed data wirelessly to caregivers for further analysis and review. These
techniques improve the quality of care through constant attention and lower
the cost of care by eliminating the need for a caregiver to actively engage in
data collection and analysis. In addition the technology can be used for remote
monitoring using small, wireless solutions connected through the IoT. These
solutions can be used to securely capture patient health data from a variety of
sensors, apply complex algorithms to analyse the data and then share it through
wireless connectivity with medical professionals who can make appropriate
health recommendations.
The links between the many applications in health monitoring are:
• Applications require the gathering of data from sensors.
• Applications must support user interfaces and displays.
• Applications require network connectivity for access to infrastructural
services.
• Applications have in-use requirements such as low power, robustness,
durability, accuracy and reliability.
IoT applications are pushing the development of platforms for implementing
ambient assisted living (AAL) systems that will offer services in the areas

of assistance to carry out daily activities, health and activity monitoring,
enhancing safety and security, getting access to medical and emergency
systems, and facilitating rapid health support.
The main objective is to enhance life quality for people who need per-
manent support or monitoring, to decrease barriers for monitoring important
health parameters, to avoid unnecessary healthcare costs and efforts, and to
provide the right medical support at the right time.
The IoT plays an important role in healthcare applications, from managing
chronic diseases at one end of the spectrum to preventing disease at the
other.
Challenges exist in the overall cyber-physical infrastructure (e.g., hard-
ware, connectivity, software development and communications), specialized
processes at the intersection of control and sensing, sensor fusion and deci-
sion making, security, and the compositionality of cyber-physical systems.
Proprietary medical devices in general were not designed for interoperation
with other medical devices or computational systems, necessitating advance-
ments in networking and distributed communication within cyber-physical
architectures. Interoperability and closed loop systems appears to be the key
for success. System security will be critical as communication of individual
patient data is communicated over cyber-physical networks. In addition,
validating data acquired from patients using new cyber-physical technologies
against existing gold standard data acquisition methods will be a challenge.
Cyber-physical technologies will also need to be designed to operate with
minimal patient training or cooperation [91].
New and innovative technologies are needed to cope with the trends on
wired, wireless, high-speed interfaces, miniaturization and modular design
approaches for products having multiple technologies integrated.
IoT applications have a market potential for electronic health services
and connected telecommunication industry with the possibility of building
ecosystems in different application areas. Medical expenditures are in the
range of 10% of the European gross domestic product. The market segment
of telemedicine, one of lead markets of the future will have growth rates of
more than 19%.
The smart living environments at home, at work, in public spaces should
be based upon integrated systems of a range of IoT-based technologies
and services with user-friendly conﬁguration and management of connected
technologies for indoors and outdoors.
These systems can provide seamless services and handle ﬂexible con-
nectivity while users are switching contexts and moving in their living

Figure 3.11 Internet of Everything and the new economy of healthcare [81].
environments and be integrated with other application domains such as
energy, transport, or smart cities. The advanced IoT technologies, using and
extending available open service platforms, standardised ontologies and open
standardised APIs can offer many of such smart environment developments.
These IoT technologies can propose user-centric multi-disciplinary solu-
tionsthattakeintoaccountthespeciﬁcrequirementsforaccessibility,usability,
cost efﬁciency, personalisation and adaptation arising from the application
requirements.
3.3.3 Smart Homes and Buildings
The rise of Wi-Fi’s role in home automation has primarily come about due to
the networked nature of deployed electronics where electronic devices (TVs
and AV receivers, mobile devices, etc.) have started becoming part of the
home IP network and due the increasing rate of adoption of mobile computing
devices (smartphones, tablets, etc.).
Several organizations are working to equip homes with technology that
enables the occupants to use a single device to control all electronic devices

Figure 3.12 Home equipment and appliances [78].
and appliances. The solutions focus primarily on environmental monitoring,
energy management, assisted living, comfort, and convenience. The solutions
are based on open platforms that employ a network of intelligent sensors
to provide information about the state of the home. These sensors monitor
systems such as energy generation and metering; heating, ventilation, and air
conditioning (HVAC); lighting; security; and environmental key performance
indicators. The information is processed and made available through a number
of access methods such as touch screens, mobile phones, and 3–D browsers
[117]. The networking aspects are bringing online streaming services or net-
work playback, while becoming a mean to control of the device functionality
over the network. At the same time mobile devices ensure that consumers
have access to a portable ‘controller’ for the electronics connected to the
network. Both types of devices can be used as gateways for IoT applications.
In this context many companies are considering building platforms that
integrate the building automation with entertainment, healthcare monitoring,
energy monitoring and wireless sensor monitoring in the home and building
environments.
IoT applications using sensors to collect information about operating con-
ditions combined with cloud hosted analytics software that analyse disparate

data points will help facility managers become far more proactive about
managing buildings at peak efficiency.
Issues of building ownership (i.e., building owner, manager, or occupants)
challenge integration with questions such as who pays initial system cost
and who collects the benefits over time. A lack of collaboration between the
subsectors of the building industry slows new technology adoption and can
prevent new buildings from achieving energy, economic and environmental
performance targets.
Integration of cyber physical systems both within the building and with
external entities, such as the electrical grid, will require stakeholder cooper-
ation to achieve true interoperability. As in all sectors, maintaining security
will be a critical challenge to overcome [91].
Within this field of research the exploitation of the potential of wireless
sensor networks (WSNs) to facilitate intelligent energy management in build-
ings, which increases occupant comfort while reducing energy demand, is
highly relevant. In addition to the obvious economic and environmental gains
from the introduction of such intelligent energy management in buildings other
positive effects will be achieved. Not least of which is the simplification of
building control; as placing monitoring, information feedback equipment and
control capabilities in a single location will make a buildings’ energy man-
agement system easier to handle for the building owners, building managers,
maintenance crews and other users of the building.
Using the Internet together with energy management systems also offers
an opportunity to access a buildings’ energy information and control systems
from a laptop or a Smartphone placed anywhere in the world. This has a huge
potential for providing the managers, owners and inhabitants of buildings with
energy consumption feedback and the ability to act on that information.
The perceived evolution of building system architectures includes an
adaptation level that will dynamically feed the automation level with control
logic, i.e. rules. Further, in the IoT approach, the management level has also
to be made available transversally as configuration; discovery and monitoring
services must be made accessible to all levels. Algorithms and rules have also
to be considered asWeb resources in a similar way as for sensors and actuators.
The repartition of roles for a classical building automation system to the new
web of things enabled architecture is different and in this context, future works
will have to be carried on to find solutions to minimize the transfer of data
and the distribution of algorithms [46].
In the context of the future ‘Internet of Things’, Intelligent Building
Management Systems can be considered part of a much larger information

system. This system is used by facilities managers in buildings to manage
energy use and energy procurement and to maintain buildings systems. It
is based on the infrastructure of the existing Intranets and the Internet, and
therefore utilises the same standards as other IT devices. Within this context
reductions in the cost and reliability of WSNs are transforming building
automation, by making the maintenance of energy efficient healthy productive
work spaces in buildings increasingly cost effective [80].
3.3.4 Smart Energy
There is increasing public awareness about the changing paradigm of our
policy in energy supply, consumption and infrastructure. For several reasons
our future energy supply should no longer be based on fossil resources.
Neither is nuclear energy a future proof option. In consequence future energy
supply needs to be based largely on various renewable resources. Increasingly
focus must be directed to our energy consumption behaviour. Because of
its volatile nature such supply demands an intelligent and flexible electrical
grid which is able to react to power fluctuations by controlling electrical
energy sources (generation, storage) and sinks (load, storage) and by suitable
reconfiguration. Such functions will be based on networked intelligent devices
(appliances, micro-generation equipment, infrastructure, consumer products)
and grid infrastructure elements, largely based on IoT concepts. Although
this ideally requires insight into the instantaneous energy consumption of
individual loads (e.g. devices, appliances or industrial equipment) information
about energy usage on a per-customer level is a suitable first approach.
Future energy grids are characterized by a high number of distributed
small and medium sized energy sources and power plants which may be
combined virtually ad hoc to virtual power plants; moreover in the case of
energy outages or disasters certain areas may be isolated from the grid and
supplied from within by internal energy sources such as photovoltaics on the
roofs, block heat and power plants or energy storages of a residential area
(“islanding”).
A grand challenge for enabling technologies such as cyber-physical sys-
tems is the design and deployment of an energy system infrastructure that is
able to provide blackout free electricity generation and distribution, is flexible
enough to allow heterogeneous energy supply to or withdrawal from the grid,
and is impervious to accidental or intentional manipulations. Integration of
cyber-physical systems engineering and technology to the existing electric
grid and other utility systems is a challenge. The increased system complexity

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