How Will the Internet of Things Transform Daily Lives in the Future?
June 5, 2018
The Internet of Things (IoT) is poised to be at the center of digital transformation in the near future. Consumer products, wearables, and connected gadgets comprise a large part of IoT market. However, business-to-business (B2B) applications are expected to emerge as the major trend in the forthcoming years. Almost every industry is investing on IoT through research and development (R&D) activities. According to the findings of a research study published by Grand View Research, Inc.; the global Internet of Things or IoT Market is estimated to reach a valuation of around USD 1.88 trillion by 2022. The market is projected to witness steady growth as a result of its ability to enhance efficiency while enabling new services.
Internet of Things Driving New Value Propositions and Business Models
Emergence of start-ups in different sectors to satisfy the rising and changing needs of consumers is also expected to boost the global market for Internet of Things in the near future. Other factors such as better connectivity and easy internet access across different parts of the globe, reduced costs of internet-enabled sensors, and increased requirement for data processing are also anticipated to contribute toward the market growth.
On the other hand, several issues regarding security and privacy such as unauthorized access to connected gadgets may have a negative impact on the development of the Internet of Things market. Furthermore, the presence of numerous strategic alliances along with the lack of unanimously accepted operational standards are also likely to affect the market expansion. The introduction of stringent regulations in Europe and the US in order to strengthen data security for internet users may also restrict the development of the market.
However, a rise in demand for mobile gadgets such as wearables and futuristic elements such as smart homes or connected homes, cities, and automobiles is projected to drive the market in the near future. In addition, increasing investments along with technological proliferation are also likely to boost the growth of the market for Internet of things (IoT) over the next few years. Moreover, various developments in the telecommunications sector along with the increased penetration of broadband services are also estimated to fuel the IoT market expansion.
Incorporation of IoT with Current Tech Trends
The entry of tech giants such as Google Inc. and Samsung Electronics Co., Ltd. in the IoT market has resulted in the development of innovative connectivity solutions across various devices and applications. This factor is also anticipated to augment the market growth in the coming years. Along with automation of existing business processes, organizations are focused on technology convergence. This factor is anticipated to reflect on the advanced technology trends in the market. For instance, take the integration of artificial intelligence (AI) with IoT done by Superion as an example. The company recently launched Superion Labs designed to innovate new tech prototypes for law enforcement and government agencies.
Similarly, the market players are integrating other technologies such as 3D printing, machine learning, and blockchain among others to develop advanced applications. This factor is poised to create business opportunities in the global Internet of Things market in the forthcoming years. For instance, Fitbit has recently partnered up with Google, Inc.; to develop innovative digital health gadgets and wearables. In May 2018, the former announced that it will be deploying Google Cloud to increase speed and operational efficiency of their wearables; this collaboration will allow consumers to link their electronic medical records (EMRs) and data collected by wearables.
Innovative IoT Platforms to Create Growth Opportunities for IoT Devices
The global IoT market is categorized as per component, application, and region. On the basis of component, the market is divided into platforms, connectivity, IT services, and devices. In 2014, the devices segment led the components and accounted for around 30.0% of the overall market share. On the basis of application, the market is segregated into healthcare, manufacturing, consumer electronics, retail, transportation, and several others. The consumer electronics, retail, and manufacturing segments were the major application segments of the global IoT market.
On the basis of geographies, the market is divided into Middle East and Africa (MEA), Asia Pacific, Europe, North America, and Latin America. The Asia Pacific region accounted for 35% of the overall revenue share in 2014 and is expected to register a healthy growth rate of 16.0% during the forecast years (from 2015 to 2022). This growth can be accredited to the potential for high-speed broadband internet in various developing economies such as Japan, India, and China. The North America region dominated the global market in the past and is expected to grow further due to the presence of prominent tech giants in the region.
Various regulatory bodies in the US have started taking actions regarding the data security and privacy of the users. In addition, a report by the European Commissioner regarding the Internet of Things concept recommends certain standards to be followed for better data security. These factors may hinder the growth of the regional IoT market over the forecast period.
Some of the key companies operating in the global Internet of Things market include Freescale Semiconductors; Samsung Electronics Co., Ltd.; Accenture PLC; Alcatel-Lucent S.A.; and International Business Machines Corp. or IBM. Most of these tech giants invest heavily in their research and development to gain a competitive edge over the competitors. Plus, they also focus on considering mergers and acquisition activities as their key market strategy. For example, the acquisition of Basis Science Inc., a wearable fitness devices company, by Intel Corp. has enabled easy entry of the latter in the global market for IoT.