Automated Surveillance & Data Collection - Act-iac

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONUnmanned Ground & Robotic OEMs to Work Closely with Integrators to Deliver SolutionsFederal investment in Unmanned Ground Vehicles (UGVs) & Robotics has softened from its FY12high of 1.6 billion. Historically, much of the spending has been tied to Explosive Ordnance Disposal(EOD), but that is beginning to change as more applications emerge.Autonomous vehicles and industrial robots are just a few of the ones that have great potentialfor agencies. Much of their development is being funded directly by the private sector. Themost successful applications thus far have been with simple repeatable actions. Nonetheless,breakthroughs in autonomy are frequent and forthcoming.Unlike the unmanned aerial market, the leading providers of UGV Platforms to the FederalGovernment also happen to be among the leading producers of commercially available products.This is largely due to the fact that terrestrial applications are, in some cases, less regulated than aerialones. However, Federal system integrators led capture of UGV C2 & Teaming spending, which hasbecome the largest sub-segment by contract obligations in recent years. This means that any viableUGV solution won’t operate in isolation, rather as a network of interdependent drones.Caltech’s leading position in the UGV sub-segment comes from its management role in the MarsRover program. The facility operator of NASA’s Jet Propulsion Lab accounted for 36.6 percent of UGVPlatform spending. Others including SGT, Boeing and General Atomics dominated the next largestsub-segment UGV C2 & Teaming accounting for a combined 59.5 percent of spending.Exhibit 5:Established commercial OEMs like WM Robots, iRobot, QinetiQ, Lockheed Martin and Boston Dynamics areamong leading UGV platform providers.5

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONUnmanned Undersea Investment Surges in FY16 and Will Remain Elevated in Future YearsUnmanned Undersea spending increased the most in FY16 among all other unmanned systemssegments. Spending rose by 19.5 percent to 605.4 million. The capability is becoming increasinglyimportant to DoD. It also has civilian applications for deep sea and littoral exploration, surveillanceand mapping.Undersea, however, is the most immature of the domain systems as sonar and power sourceadvancements are required. Overall market spending is less than half the size of Unmanned Ground& Robotics and less than one-tenth the size of Unmanned Aerial Systems. That is because UUVshave not been widely deployed and have a substantially smaller share of R&D funds compared tothe others. The dynamic, however, is in the process of changing as UUV R&D led segment spendinghigher in FY16 by 27.4 percent to 138.8 million.The UUV platforms currently in operation are used primarily for undersea mine detection. OtherISR capabilities that are being addressed include tracking quiet diesel-electric submarines, assistingnavigation of manned vessels, torpedo targeting and supporting airborne ISR. Navy has funded morethan 80 percent of the work to-date and Defense Advanced Research Projects (DARPA) has fundedthe remainder. Naval Sea Systems Command (NAVSEA) is currently soliciting proposals to its Science& Technology Broad Agency Announcement.Exhibit 6:Unmanned Undersea attracted significantly more investment in FY16 than previous years. UUV R&D increasedthe most in FY16 by 27.4 percent, followed by UUV Sonar with an 18 percent increase and UUV Platformswith 13 percent. Technology development efforts are focused on ruggedizing platforms for deep sea andendurance missions, improving sonar and power source technologies.6

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONPush Toward Open PED Architecture Will Determine the Future of Unmanned SystemsIn the Age of Information, ISR PED is gaining importance. It is the hub-and-spoke network thatreceives data and turns it into insight used for decisive action. As AI capabilities mature, a fullyautomated PED architecture will be allocated decision authority on problems deemed intractable orbeyond human cognition.But in order for PED’s potential to be realized, open architectures must be developed and the Federalgovernment is a long way away from making this happen. New data strategies and supportingprograms emphasize interoperability and “many-to-many” data exchange. Army is moving forward;it recently awarded a potential 5 year 900 million IDIQ contract to Leidos, AASKI Technology andTextron for Tactical Unmanned Aircraft Systems (TUAS) field support. The objective is to integratecutting-edge technologies into ground control stations and data terminals. Army’s incrementalapproach to improving PED is different than Air Force, which is more focused on advancingtechnological capabilities such as machine learning and AI for its three primary missions: lifecyclemanagement, intelligence and cyber.In addition to the established Air Force and Army programs, other agencies are investing intechnology that could help field modern PED systems. NASA accounted for 5.6 percent of the subsegment’s spending since FY11. Through its mission, the space agency collects and processes earthobservation data and is the largest by market share behind Army’s 17.6 percent and Air Force’s15.1 percent. NASA, along with DISA, are significant buyers of analytics technologies. The two ledpurchasing since FY11, combining for 14.1 percent of spending.Exhibit 7:Lockheed Martin and Raytheon account for 17.5 percent of the largest sub-segment Processing from theirrole in DCGS. The second largest sub-segment, Data Science & Analytics is the most competitive with anaverage of 34 bids being placed per award.7

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONData Collectors and Cloud are Most Critical to Unlocking the Potential of IoTIoT has the potential to dramatically reshape how Federal agencies go about delivering their mission.Proof points are already emerging in the private sector as remote industrial sensing solutions arebeing used to better manage capital equipment and gain efficiency in operations. In some cases, IoTis automating decision making based on data that previously did not exist.IoT has great potential in Federal markets, but the fulfillment of that potential is largely dependenton how agencies and industry collaborate to deliver comprehensive solutions. No one company candeliver a comprehensive solution on their own as IoT requires Data Collectors, Networking, Cloudand Software.Data Collectors, the largest segment of IoT which consists of ISR equipment and sensors, is the largestwith 4.2 billion in FY16 spending, followed by Cloud with 3.3 billion and Network Connectivitywith 2.5 billion. Data Collectors stand to lead IoT market spending for the foreseeable future untiltechnology advances and costs come down. Cloud platform providers also stand to benefit greatlyas processing, storing and making data readily available is a critical component of any IoT solution.Network Connectivity technology will evolve along with sensors, but will command a small portion ofthe total value of IoT. Software will also capture a small portion as advancements in coding has madesoftware ubiquitous and cost-effective to produce.Exhibit 8:Spending on Network Connectivity, the second smallest segment by FY16 contract obligations grew themost by 18.1 percent. The growth was driven primarily by investment in wireless services and upgrading andreplacing data links. Cloud grew by 16.4 percent, primarily from investment in Cloud Storage and Platform-asa-Service (PaaS). Spending on Data Collectors, the largest segment increased by 11.6 percent.8

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONSensors and Data Collectors Serve as Linchpin to IoT and Investment is Picking Back UpThe recent maturation of sensor technology is what makes IoT possible. Advancements in fabricationand power usage have created unlimited applications. With low production costs, sensors can beplaced anywhere to generate valuable structured data that previously didn’t exist and can be used forreal-time decision making.As much as unmanned systems and remote sensing platforms can work together, they also offercompeting solutions. Unmanned systems are best suited for observation and ISR mission sets,while remote sensing platforms are best suited for real-time monitoring and detection. Unmannedsystems tend to collect unstructured data, while sensing platforms have the capability to collect bothunstructured and structured data. The difference between the two determines how analytics can beused for decision making; data models for structured data are much easier to construct.ISR Equipment & Services is the larger of the two segments, but only by a small margin. Sensorspending has surged in recent years, increasing by 17.9 percent between FY11 and FY16. A largeportion of the sensor payloads are associated with weapons platforms, but investment on in situremote sensing solutions is on the rise.While sensor technologies are still in their infancy, their cost-effectiveness make them viable tools forautomating data collection, processing and decision making.Exhibit 9:General Dynamics led capture of ISR Equipment & Services with 42 percent of sub-segment spending, butthe company isn’t well positioned in Sensors. The higher growth sub-segment of the two, Sensors, is led byLockheed Martin, BAE Systems, Raytheon, ManTech Northrop Grumman and Boeing.9

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONNetwork Connectivity Investment Set to Rise with IoT and Unmanned Systems Spending Bow WaveNetwork Connectivity is the conduit for unmanned and IoT applications and new technologies arealways coming to market. One reason for the constant innovation is that much like sensors, range,cybersecurity and power requirements have everything to do with data transmission requirements. Asthese two technologies continue to evolve, so too will Network Connectivity.Signs of evolution are already appearing in defense markets as legacy airborne networks areaugmented and replaced by advanced capabilities. One of the legacy technologies is TacticalData Links (TDL), the largest sub-segment that serves as the standard communication for militarycommand, control and communication (C3) systems. Another legacy technology is Data LinkGateways that connect aerial assets to the Global Information Grid (GIG). Spending on TDLsdecreased by 5.2 percent in FY16 to 450.6 million and spending on Data Link Gateways decreasedby 31.4 percent in FY16 to 106.8 million. Spending on newer peer technologies such as AssuredPNT and Advanced Data Link Networks increased by 32.5 percent and 24.8 percent respectively.Wireless Services, a sub-segment most suitable for IoT applications and smaller drones had themost growth increasing by 64 percent to 548.3 million in FY16. Spending on Wireless Devices alsoincreased by 19.1 percent to 151.5 million in FY16.Exhibit 10:Network Connectivity rebounded in FY16 from a slight dip in FY15 increasing by 18.1 percent to 2.5 billion inFY16. Wireless Services grew most among sub-segments with 64 percent, followed by Assured PNT with 32.5percent and Advanced Data Link Networks with 24.8 percent. TDLs the largest sub-segment is in decline.10

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONFoundational Cloud Investments Pave Way for Data-Centric Drone and IoT TechnologyMany supportive arguments have been made for Cloud. Chief among them is that Cloud providescost-savings by allowing data center consolidation, but the benefits are much greater. Cloud makesBig Data Analytics possible through improved mobility, greater collaboration and unparalleledflexibility. It also allows all of the resources necessary for Big Data to live in one place.The Federal Government is buying into Cloud. Overall spending increased by 16.4 percent to 3.3billion in FY16. Cloud Storage led sub-segments, growing by 42.8 percent to 271.9 million, followedby Platform-as-a-Service (PaaS) growing by 21.8 percent to 671.1 million. Growth in the two subsegments suggests that investments are being made with IoT and Unmanned Systems in mind asCloud Storage is a model where data is stored in logical pools across multiple servers and locations,which allows for data to be readily available and accessible. PaaS is a category of cloud services thatallows customers to develop, run and manage applications without the complexity of building andmanaging their own. The two are necessary components of real-time analytics platforms tied to IoTand Unmanned Systems.Spending on other Cloud sub-segments also increased in FY16. Infrastructure-as-a-Service (IaaS)increased by 8.2 percent, followed by Cloud Migration Services with 6.2 percent and Software-as-aService (SaaS) by 3.1 percent.Exhibit 11:The two largest Cloud sub-segments are dominated by IBM and DLT Solutions, reseller of Amazon WebServices and Google products. DLT also has a strong market position in the SaaS sub-segment, whileCarahsoft dominates PaaS.11

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONAdvancements in Software Development to Support Unmanned and IoT ApplicationsSoftware has changed dramatically in recent years. The costs and technical skills required fordevelopment have decreased substantially, which has lowered market barriers and increasedcompetition. In turn, software has become ubiquitous where a piece of code or algorithm can bescripted to do just about anything.The proliferation of open source coding languages is one reason for the dramatic change in thesoftware ecosystem, and agile development and application programming interfaces (APIs) areothers. Cloud has allowed engineers to build and deploy instances and machines much faster at afraction of the cost compared to ten years ago.The pervasiveness of software means that whatever applications are required for IoT and UnmannedSystems will undoubtedly be available at low costs. Cybersecurity and Analytics are similar examples.Until recently both were performed almost entirely by humans, but nowadays software does mostof the work. This is primarily because at the core of Cyber and Analytics is Big Data and machinesperform data functions much better than humans. In fact, it is fair to say that humans can not keepup with the pace of data proliferation and this is even more so the case with the voluminous datagenerated by IoT platforms and Unmanned Systems.Exhibit 12:The largest sub-segment, Data Science & Analytics is competitive with Esri, CSRA, Leidos, NorthropGrumman and Palantir among leaders. Resellers of Oracle and SAP database products, Mythics and DLTSolutions dominate the second largest sub-segment. CDW leads System Applications and DXC Technologycaptured the most ETL spending accounting for 14.6 percent of sub-segment spending.12

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONFederal Cyber Posture is Evolving and Should Account for IoT and Unmanned SystemsThe Federal Government is in the midst of transforming its Cyber capabilities. Advancements in digitaltransformation, on-line citizen services, surveillance and intelligence have created troves of sensitivedata that require protection.Outdated hardware and software is one reason for existing vulnerability. Another is the sheer size andscale of government networks. But like all intractable problems, a definitive solution is elusive and themost that can be done is manage risk through process and protocol frameworks.IoT and Unmanned Systems present new challenges for Cybersecurity. Their autonomous naturemakes them a threat if they are hacked and controlled by adversaries. This is one major challengethat regulators and standard setters are grappling with as proposals are developed.Endpoint Defense, the smallest segment and most relevant to IoT, grew the most by 68 percentin FY16. Its rise was fueled by a transition to Identity Credential and Access Management (ICAM)Software from Hardware. Spending in the third largest segment, Boundary Defense, grew by39.7 percent to 2.4 billion primarily from increased investment in Boundary Defense Software.Virtualization Security, a sub-segment within Boundary Defense was also prioritized in FY16.Spending on Application Security, the largest segment of Cyber Defense, increased by 50.1 percent to 3 billion.Exhibit 13:Spending on Endpoint Defense grew by 68 percent in FY16 to 2.5 billion. Endpoint is most critical for IoTsolutions. Boundary Defense, which grew by 39.7 percent is most critical for Unmanned Systems. ApplicationSecurity serves both solution and spending increased by 50.1 percent to 3 billion in FY16.13

UNMANNED SYSTEMS & IoT TAXONOMY: AUTOMATED SURVEILLANCE & DATA COLLECTIONEndpoint Defense is Evolving but Threat Remains: IoT and Drones Bring New ChallengesMajor disruption to traditional models brings its own set of challenges and chief among them for IoTand Drones is Endpoint Defense. Tiny cost-effective sensors often lack the memory and computingresources necessary to host malware. For the same reason, they also are unable to keep up withcomplex and evolving security algorithms run on networks connecting to the endpoints.As the two technologies evolve so too should Endpoint Defense, but it should not be anafterthought. Sensor CPUs need to be designed to defend themselves and associated networks.Until this happens, smarter cybersecurity systems that include managed threat detection, anomalydetection and predictive analysis need to evolve.Such smart cyber systems are part of Endpoint Software and Identity Credential and AccessManagement (ICAM) Software, two sub-segments that had explosive growth in FY16. ICAM Softwaregrew the most by 198.2 percent and Endpoint Software grew by 72 percent. Leading providers ofEndpoint Software include Arrow Electronics, UNICOM Government, Northrop Grumman and DXCTechnology. Leading providers of ICAM Software are Quality Software Services, DXC Technology,Lockheed Martin, Accenture and Xtec.Convergence of IP protocols and the emergence IPv6 makes it possible to connect billions moredevices to the interne

Quality Software Services Inc. QuinetiQ Group PLC (QQ) Raytheon Co. (RTN) SAIC Corp. (SAIC) SAP (SAP) Serco Inc. (SRP) SGT Inc. Sprint Corp. (S) Textron Inc. (TXT) UNICOM Government University of Texas Ventech Solutions Inc. Verizon Communications Inc. (VZ) ViaSat Inc. (VSAT) WM Robots World Wide Technology Inc. Xtec Inc. Air Force Army