IoT is gaining momentum among businesses

By connecting ‘things’ in the real world — such as cars, buildings, and industrial equipment — IoT promises to revolutionize how we live and work, states a report from Verizon. From wearable devices to smart cities, the benefits reported have prompted organizations of all sizes to ask how IoT might affect their organization and their industry, and what they can do with it.

The report ‘State of the Market: The Internet of Things (IoT) 2015: Discover How IoT is Transforming Business Results’, states that the IoT market is likely to experience around 28% year-on-year growth, rising to 5.4 billion by 2020.

In the automotive sector, 14 car manufacturers account for 80 percent of the worldwide automotive market, and they all have a connected car strategy. In the healthcare sector, organizations will introduce more than 13 million health and fitness tracking devices into the workplace by 2018 according to ABI Research. It is also forecasted that by 2025, smart cities capabilities will become a critical consideration for companies deciding where to invest and open facilities, due to their impact on operating costs and talent availability.

Measurable benefits from IoT projects: By 2025, organizations that adopt IoT extensively will be at least 10% more profitable than competitors that don’t.

• Transportation companies are saving millions of dollars by reducing fuel consumption using data captured, transmitted, and analyzed in near real-time.
• Local governments are making budgets go further with LED smart street lighting that doesn’t need regular maintenance, but can automatically report when it needs to be repaired.
• Utility companies are eliminating costly and inconvenient home visits to read meters by introducing smart meters that report more granular usage data without human intervention.

Factors fueling IoT

Various technological, political and social factors are driving the growth of IoT. They are:

Declining cost of sensors, increasing connectivity, and data processing power is making the ROI equations for IoT projects look even more appealing.

Use of social media & mobile technology has transformed consumer and citizen expectations. Use of analytics and cloud-enabled platforms are making it possible to understand and engage with customers better, whatever medium they choose. IoT can help by making services personal, better and accessible.

Changing regulatory requirements across a number of industries is also powering IoT adoption. Organizations are using IoT in their efforts to meet new environmental standards and safety targets. For example, smart grid solutions are enabling energy and utility companies to improve efficiency and cut waste. And train companies and automotive manufacturers are fitting vehicles with IoT-enabled systems that can predict and help prevent accidents.

The IoT market’s investor and consumer confidence has grown. This is making businesses more receptive to investing in new technologies.

M2M sensors can enable organizations to monitor assets, from elevators to shipping containers, in near real time. For example, food and drug manufacturers can monitor shipping containers for changes in temperature that could affect product quality and safety using cheap battery-powered sensors and 4G LTE connectivity.