If you are looking for the “next big thing” in the tech space, look no further! The market for Internet of Things (IoT) will be taking over your home — and all businesses in the world soon, if not already.
IoT is the blanket term for the internetworking of things (things can refer to a variety of devices or machines) and their connectivity to software, the internet, or other cloud-based programs, which enables these “things” to send and receive data. So, any smart phone would be considered part of IoT; however, the diverse market for these devices are just beginning to be realized by the general public and major corporations.
Just a couple years ago, we saw Amazon nudge itself even more into the IoT space with a very successful integration of the Amazon Echo and its intelligence software named Alexa, which represents the product’s artificial intelligence. You can play music, watch TV, or even buy a TV on Amazon by simply saying “Alexa, . . . ” According to a note by investment firm Mizuho, the revenue generated by Echo and Alexa could exceed $11 billion by 2020. The market potential for IoT devices, if designed and marketed well, literally blow my mind. What does the IoT market potential look like, and why should we care?
To give you some perspective on IoT being the “next big thing,” here are what analysts are predicting for the IoT market:
- Bain predicts that by 2020 annual revenues could exceed $470B for the IoT vendors selling the hardware, software and comprehensive solutions.
- McKinsey estimates the total IoT market size in 2015 was up to $900M, growing to $3.7B in 2020 and has a potential economic impact of $2.7 to $6.2T until 2025.
- General Electric predicts investment in the Industrial Internet of Things (IIoT) is expected to top $60 trillion during the next 15 years.
- IHS forecasts that the IoT market will grow from an installed base of 15.4 billion devices in 2015 to 30.7 billion devices in 2020 and 75.4 billion in 2025
Below is a global market potential (in billions) of IoT devices owned from 2015 to 2025. In those 10 years, that market will increase by 489.55% globally . . . Wowzer!
We really should care about IoT because empirical data show a promising future and an exponential market growth. With 75.5 billions IoT devices in the world by 2025, every person and business will own and use many devices. We should be actively engaged and knowledgable about this space. Not only should we be engaged from an investing perspective, but IoT can totally change your life or business for the better.
I’d love to discuss how IoT is becoming the “next big thing” in the various areas of our society: one’s personal life, major industries, and the government.
IoT Trends: Personal Life
We have heard about smart homes for awhile. One of the problems why we aren’t all in smart homes by now is the issue of too much competition. With all the market players who build devices, or program cloud-based software, there is not enough collaboration— there are tons of individual appliances and apps on the market, but few solutions to tie everything together into a single, seamless user experience. However, with the software/A.I. M&A activity of large hardware firms (like Samsung, IMB, and GE), we can begin to see all industry players making these IoT products more common.
In the next 10 years, I’m fairly confident that all of our house appliances, cars, phones, lamps, computers — all electronics — will be interconnected to some extent. I can easily see your house lights turn on as you are pulling into the driveway because your car is communicating with house IoT sensors. I can see how appliances will be synced to your personal daily calendar, thus your appliances know when to have your dishes done, laundry folded, and morning toast cooked and ready.
If you already have a smart TV, a smart phone, or other IoT devices like Amazon Echo (2+ billion globally already own at least one), then you’re already on the beginning trend of living an IoT-based life.
Another trend I thought interesting was The GeniCan. Debuted at the CES 2017 conference earlier this year, The GeniCan is an accessory you install close or on your garbage bin and when you throw items away, you scan a barcode or tell the device what items you are getting rid of and the device will automatically add them to your shopping list. You can also link up the $124.99 gadget to Amazon Dash/Echo to automatically order more for you. Who knew that garbage would be getting smarter, too?
IoT Trends: Key-industry players and others businesses
Many firms see big opportunity in IoT uses. As enterprises and corporations continue to believe that IoT holds the promise to enhance customer relationships and drive business growth by improving quality and productivity, we will be begin to see wide-spread adoption and investing in such technologies. The investment is a no-brainer, especially since all businesses want to gain a competitive edge: reducing costs, risk, and theft.
As we consider the industrial industry, think how wide the application of IoT can be. The industrial IoT market, which I imagine would focus on predictive maintenance and remote asset management, can reduce equipment failures or unexpected downtime based on the operational data now available. Early industrial IoT adopters, such as ThyssenKrupp, Caterpillar and Thames Water, are already reaping these types of benefits, specially Thames Water, who is using sensors, analytics and real-time data to anticipate equipment failures and respond more quickly to critical situations, such as leaks.
As we look at the medical industry, we can see how IoT can optimize your visit to the E.R. room, make doctor visits more effective and efficient, and aide in overall medical procedures.
One company I find interesting in the IoT space is the company Jawbone, a wearable technology and activity tracker company. A report from TechCrunch suggests the wearables company won’t be selling consumer fitness trackers anymore and will instead focus on B2B devices. Jawbone is trying to raise money to make the switch from selling products to consumers to selling devices to the medical community. The company plans to create a medical-grade device that it can sell and/or license to clinicians and health providers, along with a variety of software services to accompany the devices. Think of the endless IoT innovations and opportunities with IoT wearable medical devices!
Financial firms, Retail, E-commerce, Energy, Automotive… all industries will be revolutionized as they integrate IoT into their everyday business, end-user products, or their operations.
IoT Trends: Governments/Municipalities
Do you hate traffic? Can’t find a parking spot downtown? Hate how there appears to be construction around every corner? Governments, municipalities, and other governments’ investment in IoT will change how we perceive all of the above.
What can you achieve when a smart car and a smart city grid start talking to each other? We’re going to have traffic flow optimization, because instead of just having stoplights on fixed timers, we’ll have smart stoplights that can respond to changes in traffic flow. Traffic and street conditions will be communicated to drivers, re-routing them around areas that are congested, snowed-in, or tied up in construction.
Also, if there’s ice on a bridge, the same sensors in the concrete will detect it and communicate the information via the wireless internet to your car. Once your car knows there’s a hazard ahead, it will instruct the driver to slow down, and if the driver doesn’t, then the car will slow down for him.
Cities have a lot of potential in this space in order to create optimized, efficient cities. This is necessary, especially since human population numbers are not slowing down anytime soon.
As you can see, IoT innovations are slowing creeping into mainstream society. Other than the digitalization and connectivity of my personal and professional life, I am excited that IoT is going to revolutionize our economy, enhance processes, and make life better and easier overall.
How are you participating in the IoT revolution?
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Written by: Ryan Montgomery
Original LinkedIn article: https://www.linkedin.com/pulse/internet-things-iot-market-potential-trends-2017-ryan-montgomery?trk=v-feed&lipi=urn%3Ali%3Apage%3Ad_flagship3_search_srp_content%3B4XjclWvM8hLCmTKfLIckoQ%3D%3D