Did you ever wish that for your refrigerator to automatically re-order groceries when you run out of them? How would it be if your car could send a text to the other party notifying them that you will be late for the meeting as you’re sitting in heavy traffic? Or what if the fire sprinkler system immediately sends a message to the fire service with your location as the fire breaks out? Does it sound impossible? Well, guess what- all of this is possible now. Internet of Things (IoT) can make all of them a reality.
Computers, smartphones and tablets aren’t the only objects we can connect to Internet now- it can be a coffee machine, vending machine, a person with a heart monitor implant, a farm animal with a biochip transponder or an automobile. The possibilities are endless.
An IoT ecosystem consists of web-enabled smart devices that use embedded processors, sensors and communication hardware to collect, send and act on data they acquire from their environments. IoT devices share the sensor data they collect by connecting to an IoT gateway or other edge device where data is either sent to the cloud to be analyzed or analyzed locally. Sometimes, these devices communicate with other related devices and act on the information they get from one another. The devices do most of the work without human intervention, although people can interact with the devices — for instance, to set them up, give them instructions or access the data.
Businesses now-a-days are quickly adopting IoT to operate more efficiently, better understand customers to deliver enhanced customer service, improve decision-making and increase the value of the business. This in turn results in improved the customer experience, enhanced employee productivity and enables business to make better business decisions to generate more revenue.
According to latest research, the number of IoT devices globally is believed to have reached 10 Bn in 2018. With 5G on the horizon and an uptick in IoT adoption, companies’ plans to invest in IoT solutions seem to be accelerating. 127 new IoT devices connect to the internet every second. The global IoT market is projected to nearly double in size between 2014 and 2017, passing the $1 trillion mark. By 2019, the global IoT market is forecast to be valued at more than $1.7 trillion.
The main revenue driver for 54% of enterprise IoT projects is cost savings. Most enterprise IoT projects focus on cost reduction. Only 35% of IoT projects are used to increase revenue (e.g., by offering new IoT-connected products and services). 24% of projects also increase overall safety (e.g., by offering enhanced monitoring systems with real-time alerts and notifications).
The top goal of enterprise IoT deployment varies by country; 23% of Chinese companies use it to increase competitiveness. IoT statistics show that not everyone is focused on cost reduction. A more granular study of the main purpose for deploying enterprise IoT found that while cost reduction might be the priority in USA, UK, France, and Australia, in other countries the top goal could be increasing competitiveness (China, S. Korea, Italy, Mexico), improving business processes (Germany, Japan, Brazil), or improving customer experience (Spain).
Business investment will grow from $215 Bn in 2015 to $832 Bn in 2020, while consumer-driven spending will grow from $72 Bn in 2015 to $236 Bn in 2020. This represents a slightly higher growth in business spending as compared to consumer spending on IoT in the 5-year period. Government-spending will add an extra $500 Bn or so to the total spend on IoT in 2020. IoT has the potential to generate $4T to $11T in economic value by 2025. The main industries which will heavily impacted by IoT are given below:
1. The global automotive internet of things market is expected to grow to $104.2 Bn by 2023
There will be 220 Mn connected cars on the road in 2020, and 90% of all new cars by 2040 are expected to be connected through IoT. The automotive IoT market was valued at $15.87 Bn in 2015, indicating a CAGR of 26.5% over the eight year period. The three areas driving growth in automotive IoT are in-vehicle communication (route information, traveling times, and incident reports), infotainment, and vehicle-to-vehicle communication.
2. The global healthcare IoT market will be worth $158 Bn in 2022
IoT statistics for the healthcare market shows a projected growth at CAGR of 30.8% from 2017 when the healthcare IoT market was valued at $41.22 Bn. Telemedicine was the biggest component of healthcare IoT in 2017, but the greatest growth is expected from systems and software, which include remote device management, network bandwidth management, data analytics, applications security, and network security solutions. Geography-wise, the greatest growth is expected from the Asia-Pacific region.
3. The global IoT in retail market is projected to grow to $35.64 Bn by 2020
The IoT in retail market is expected to grow at a CAGR of 20% from USD 14.28 Bn in 2015 driven by the increase in demand because of the internet’s ubiquity, the wider use of cloud platforms, the increasing use of mobile apps, and the declining cost of sensors and RFID.
4. The value of the global smart homes market will be $58.7 Bn in 2020
Internet of things statistics for 2020 for the worldwide smart homes market show an estimated growth at a CAGR of 19.31% rising from $20.38 Bn in 2014. Growth drivers include increasing implementation of smart speakers, home appliances, lighting control systems, home healthcare products, smart furniture, smart kitchen, and HVAC control solutions.
5. The global IoT in Education market size is expected to grow to $11.3 Bn in 2023
An increased used of connected devices in schools and colleges, fast adoption of e-learning, and wide availability of cloud-based solutions have meant that IoT already has a fairly strong presence in the field of education across the world. In 2018, the worldwide market value of IoT in education was $4.8 Bn, and was expected to grow at a CAGR of 18.8% through 2023.
6. The IoT in Banking and Financial Services market size is expected to grow to $2.03 Bn by 2023
IoT forecasts for the banking and financial services market predict growth at a CAGR of 52.1% from $0.17 Bn in 2017. The major driving forces of the market include the increasing use of IoT devices for connected banking, and convergence of operational technology and information technology. Within financial services, the fastest growth is expected in the insurance sector where IoT will help companies in more effectively determining insurance prices and providing services based on data gathered from smart devices. Internet of things statistics from 2019 seem to confirm this trend.
7. The global IoT in manufacturing market size is projected to reach $45.3 Bn by 2022
The worldwide IoT in manufacturing market was valued at $10.45 Bn in 2016 and is project to grow at a CAGR of 29% through 2022. The major factors driving the growth of the IoT in manufacturing market are the growing need for centralized monitoring and predictive maintenance of manufacturing infrastructure, the advent of the latest communication technologies, and the need for agile production and operational efficiency. According to internet of things statistics, an increasing adoption of the cloud, convergence in operational technologies (OT) and IT, and growing number of intelligent connected devices with cost reduction are some of the other factors supporting the overall growth of the-market
As more physical objects are becoming online, the physical world is becoming one big information system. The opportunities presented by IoT are endless- thus, go ahead enjoy that cup of coffee brewed by your coffee pot at the instruction of your alarm clock!