Top 4 Industries Benefiting from the Internet of Things
50 to 200 billion connected devices by 2020!
Networking giant Cisco estimates that the number of connected devices worldwide will rise from 15 billion today to 50 billion by 2020.
Intel is even more bullish, claiming that over 200 billion devices will be connected by then.
Internet of Things (IOT) is everywhere. It so subtly came into our lives that we are unable to even realize its presence as IoT. It can be seen in our homes, car and increasingly, on your body.
It’s connecting citizens to their cities, linking patients to health services, bringing companies in closer touch with their customers and capturing our imaginations.
Things exchanging information with each other facilitate our work and improve productivity.
It helps mankind in every way, it is through this interconnectivity parents are able to monitor and set driving rules for their newly licensed teen. It measures soil and moisture conditions at work in a California vineyard, to improve the quality of crop, lower operating costs and increase crop value. It is also a great help in reducing the percentage of fatalities on nation’s roadways by speeding emergency services.
Facts and stats about IOT
IOT brought prevalence of smart objects and better connectivity between them, weather it be electronic wristwatches, car alarms and coordinated traffic lights, which made them ubiquitous.
Along with travel, transportation and hospitality sector, and industrial manufacturing, there are many other verticals for IOT from wearable devices, to cars, smart homes, cities and industrial equipment.
The global markets that features wearables such as smart watches, fitness and health trackers, or even smart jewelry and smart clothing is expected to reach a value of around 53.2 billion U.S. dollars in 2019, more than ten times its value five years prior.
Let us see what other verticals of IOT predict:
- The home automation system market, another IOT vertical, has grown significantly in the past years. By 2020, the global smart home market is forecast to grow to nearly 60 billion U.S. dollars.
- According to Harbor Research and Postscapes, the smart home industry generated a revenue $79.4 billion in 2014. The revenue is expected to rise to $79 billion plus.
- By 2020, 90% of cars will be online according to Spanish telecommunications provider, Telefonica. Infotainment, automated-driving and other OS applications are to be embedded in most cars. And Google has already tested its driverless car on public roads. Operating systems for cars are also being developed and to be available in the future.
- The electronics company, General Electric, estimates that the “Industrial Internet” (IIoT) market will grow a value of $10 trillion to $15 trillion to the global GDP in a couple of decades.
According to State of Market: Internet of Things 2016
The chart shows the signs of IOT entering the mainstream, with this development it is also spanning a nameless number of industries, including consumer goods, industrial equipment, communication devices, data analytics and autonomous equipment.
Let’s see how it is affecting the overlapping ecosystems:
Leading companies like Apple, Google, Samsung, and other mobile leaders widen their reach into smart homes, wearables, cars and different aspects of necessities of consumer life, and hence can easily carve enough of space in this ecosystem.
We are already seeing the battleground emerge, Samsung acquired SmartThings, Google acquired Nest Labs, and Apple launched HomeKit.
The company that will create most accessible yet dynamic system will become the king and engage more people(/things) into the ecosystem.
Networking & Real Time Analytics
Real time analytics will become the most important aspect in companies/factories defining success, for this they will need well equipped and a well designed network.
Smart homes will require lightening speed and range to reach each corner of house efficiently.
Networking giants like Nokia, Cisco, Ericsson, and Huawei are all looking at IOT as a massive opportunity to make more money.
It will also interfere in areas like patient monitoring in hospitals, quality control in factories and customer experiences in stores.
Bain & Company says partnerships between analytics and businesses could bring innovation into many areas, citing successful partnerships between Amazon and John Deere’s agriculture and IBM’s collaborative work with Medtronic on diabetes management.
Autonomous driving and robotics
Autonomy will bring revolutionary change in consumer and enterprise market.
Autonomous cars, robots, drones, and other new technologies that provide humans with a greater level of autonomy will bring many advantages to the consumer.
Uber has started testing its autonomous car in Pittsburgh, with the goal of swapping human drivers for computers, which may lower the cost of a taxi quite significantly.
Enterprise and Industrial
Industrial Internet of Things (IIOT) is going to hit bigger than consumer market, as industrial and enterprise equipment connect, incumbents across industries will broaden the offers.
This will provide huge opportunities for businesses to lower costs, while also improving demand and reach.
Scale and partnerships will allow leaders to shape standards to help their platforms succeed.
Enterprises view IOT as a new revenue stream. A study commissioned by Oxford Economics shows that revenue growth is by far the biggest factor driving IOT adoption.
Throughout 2016 and beyond, we’ll continue to see IOT deployed as a mainstream path to generating higher revenue.