Internet of Things, a key enabler to reduce CO emissions

COP21
Internet of Things, a key enabler to reduce
CO2 emissions
December 1st , 2015
Victor M. Pérez
Internet of Things, a key lever to reduce CO2 emissions
Exponential technologies combined with Internet global model
drive a new industrial revolution: the Internet of Thing
Internet of things drivers
Exponential technologies
#of sensors
+33% yoy
# sensors
Internet of Things
Bandwidth cost
-25% yoy
€/Mbs
+3Bn individuals
connected in 2014
Computingcost
-33% yoy
• Peering & net neutrality
€/transistor
Storage cost
-38% yoy
€/GB
50bn objects connected
to the web in 2020 : Magna Data
• Infrastructure mutualization
• Interoperability
• Platforms
Internet global model
Source: HIS, KBPC, Internet world stats, A.T. Kearney
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
On the demand side, IoT combined with Big Data offers 4 key
levers for asset optimization and energy consumption reduction
Levers of energy demand reduction with IoT
Driver
Example
• At full system level, objects interact,
communicate and adapt autonomously how
they operate to optimize their energy
consumption
• Ex: Autonomous control
system of vehicles and road
traffic in a city centre
• Big Data algorithms analyse current and
historical data regarding the use of objects and
optimize in real time how they operate
• Ex: Real time optimization of
aircraft engines based on data
collected by thousands of
sensors
• Sensors continually collect data on objects
energy consumption to provide a rigorous
analysis
• Remote control of objects based on
elementary rules to prevent energy waste
• Ex: Connected thermostat
allowing heating remote
control
• Connected objects provide transparency over
existing assets availability to maximize their
use
• Ex: Car sharing platform to
pool car rides
4
Full system
automation
3
Real time objects
energy consumption
optimization
2
Objects energy
consumption Monitoring
and Control
1
Asset transparency
Source: A.T. Kearney
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
Under current conditions, IoT could lead to a +200 Mt decrease
in CO2 emission, being ~23% of the 2030 objective
CO2 emissions objective and IoT impact
(in Mt of CO2, EU28)
COP 21
Objective1
2015-2030
Assuming no other
change in energy
mix or consumption
pattern
IoT2
Opportunities
2015-2025
-210
-900
23%
1 Cop
21 objective for EU28 members : a 40% decrease in CO2 emissions compared with 1990 emissions (4 170Mt).
900Mt represents the current effort, i.e. the difference between current CO 2 emissions (3400Mt) and 60% of 1990 CO2 emissions (2500 Mt).
Sources: Ministère de l'écologie, du développement durable et de l'énergie, A.T. Kearney
2 Internet
of Things
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
Mobility and Housing should be the main contributors to CO2
emission reductions
IoT impact on CO2 emissions by economic sector (2025 Vs. 2015)
(in Mt of CO2, EU28)
3,2
32,8
45,6
~210 Mt of CO2
57,8
69,7
Mobility
Housing
Industry
& Services1
Smartgrids
Public
Administration
Note: Assuming no other change in energy mix or consumption pattern
1Savings on transportation cost in supply chain and decrease in energy consumption for lodging, retail and telecom companies (data center)
Sources; Eurostats, A.T. Kearney
Total
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
In particular, Car sharing, Automotive telematics and Smart
Home are the 3 use cases with higher opportunity
Energy savings related to IoT, by sector
(in Mt of CO2, EU28)
Use Case
Main drivers of energy savings
• Car sharing
• Automotive
telematics
• Traffic jam
reduction
• Aircraft telematics
• Real time localisation allowing journey pooling
• Data collection and analysis for an optimal drive and fuel savings
38,0
25,2
• Vehicles coordination and rerouting itinerary to smooth traffic,
3,4
• Data collection and analysis for an optimal jet fuel consumption
Subtotal total Mobility
3,0
69,7
Housing
• Smart Home
• Data collection and analysis for an optimal energy consumption (heating and
lighting)
57,8
Industry and
Services
• Energy
consumption
optimisation
• Smart logistics
•
•
•
•
34,5
Mobility
Mt CO2
Telecoms : data centres etc.
Retail : Heating and cooling systems etc.
Lodging and catering : heating and cooling systems etc.
Logistics: connected truck fleet to optimize journeys and fuel consumption
Subtotal Industry and Services
11,1
45,6
Smart grids
• Smart electric grid
• Smart gas
• Smart grids optimizing output, distribution and consumption of electricity
• Smart grids optimizing output, distribution and consumption of gas
Subtotal Utilities
Public
Administration
• Street light control
• An optimised lighting system, reducing unnecessary street lighting
3,2
Total
Note: Assuming no other change in energy mix or consumption pattern
Source: A.T. Kearney
21,6
11,2
32,8
~210
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
The Mobility sector is the most attractive one with an emission
reduction potential of ~70 Mt of CO2 through 4 levers
Energy savings related to IoT
(in Mt of CO2, EU28)
Mobility
Use case
Objet
Scope
2025 potential benefit
Mt CO2
Care sharing
• Vehicle equipped
with GPS
• 0,72 vehicle per household,
generating 475,5Mt of CO2
annually, linked to fuel
consumption
• Decrease in # of vehicle per
household using care sharing by
64%
• 8% of vehicles taken off the
streets
38,0
Automotive
telematics
• Vehicle equipped
with telematics
(sensors)
• Overall European CO2
emission linked to fuel
consumption is 475,5 Mt
• Vehicles equipped: 58%
• Decrease in fuel consumption by
10%
25,2
Traffic jam
reduction
• Vehicle partially or
totally automated
• 33h spent yearly in traffic
jam by an average
European driver, generating
8,5 Mt of CO2
• Traffic jam duration reduced up to
40% in 2025 through Autonomous
Cruise Control, Platooning,
intelligent signalling and
eventually autonomous driving
3,4
Aircraft
telematics
• Sensors network
in the plane and
its engines
• Total European jet fuel
consumption generates
151 Mt of CO2
• Aircraft equipped: 100%
• Jet fuel consumption reduced by
2% on average
3,0
Total
Sources: INSEE, ACEA, CCFA, CEBR, Inrix, A.T. Kearney
69,7
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
Energy savings is a key pillar of the smart home and could
reduce up to 15% household energy consumption
Evolution of the smart home
Security
• Remote
monitoring
• Access record
• Intrusion
detection
Energy/Utility
• Reduce energy
usage
• Reduce risk of
damage
• Limit environmental
impact
Example: Netatmo,
Nest
Example: AT&T
Digital Life or
Gigaset Elements
Entertainment
• Content
everywhere
• Multi-screen
• Remote control
Housing
Connectivity
Example: Sonos;
Apple, Samsung
Note: Assuming no other change in energy mix or consumption pattern
Sources: INSEE, Eurostats, A.T. Kearney
Home devices
• Fire alarms
• Self stocking
fridges
• Remote heating
Example:
Samsung smart
home
Impact on energy savings
• Technology
– Thermostats, lighting control
panels
– Sensors: temperature, motion,
luminosity
– Algorithms combining sensor
information, historical data and
preferences
• Mechanisms
– Learns user behaviour
– Programs itself
– Turns to Auto Away mode
– Remote access from mobile
• Saving opportunity 2025
– Current yearly CO2 emission per
European household is 3 500 kg
– Overall saving opportunity: 57,8
Mt of CO2
- Expects 15% saving opportunity
- Adoption by 50% of Households
A.T. Kearney / COP21
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Internet of Things, a key lever to reduce CO2 emissions
Between 10% and 18% of energy consumed by service
industries could be saved with IoT
Industry
&Services
Energy savings related to IoT (in Mt of CO2, EU28)
46
3
8
11
24
CO2 emissions l
inked to energy
consumption
(Mt of CO2)
Main optimization
levers
IoT opportunities
Retail
Lodging
Telecoms
Smart Logistics
• 239 Mt
• 79 Mt
• 15 Mt
• 185 Mt
• Heating and
cooling
systems
• Heating and
cooling
systems
• Data centres
• Engines
• Energy
consumption
reduced by
10%
• Energy
consumption
reduced by
10%
• Energy
consumption
reduced by
18%
• 10% of fuel saved
Note: Assuming no other change in energy mix or consumption pattern
Sources: INSEE, Eurostats, A.T. Kearney
Total
• 60% of trucks
equipped (2025)
A.T. Kearney / COP21
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