We have been discussing and highlighting the growth of the Internet of Things (IoT) over the past decade and positing the many ways the technology might impact both tech-centric and smokestack industries. While IoT is increasingly being embraced by technology vendors, both big and small, as the next evolution of their business model, the biggest opportunities lie in the transformation that IoT can drive in more conventional industries.
As the billions of devices, sensors and databases are connected allowing data to be securely gathered, exchanged, stored and analyzed, often in real time, traditional industries will not only be transformed but industry structures will undergo dynamic reinvention. Enterprises are using IoT to solve discrete business challenges such as increasing customer satisfaction, improving quality, supporting new business models (such as data-driven services), and reducing costs?
There are several use cases that seem to be driving IoT adoption and growth and will continue to do so through 2020 at least. To gain meaningful market share over the near term, companies need to focus their IoT product offerings on the use cases most appropriate and impactful for their business. A recent report from BCG identified the 10 use cases that are gaining attraction, often across multiple industries.
Some use cases, such as predictive maintenance, possess the potential to materially impact operations in almost every industry but any of the potential uses must be tailored to address an industry’s unique needs. The expected time to maturity is significantly different for each use case, depending on its share of customers and how quickly it scales.
When tied to the IoT, the car turns data into actionable insight, both inside the car and in the world around it. Data analytics, artificial intelligence, the Cloud and in-vehicle systems are reinventing the driving experience.
Through the IoT, the power grid’s countless devices can share information in real time to distribute and better manage energy more efficiently. re-think the way we generate, transmit, distribute, and consume energy for the connected era.
According to IDC, investments in the Smart Grid for electricity and gas totalled $57.8 billion in 2016 and smart Grid meters are now widely deployed in the US and in several European countries.
The oil and gas industry has also taken advantage of IoT solutions as operations are spread across large areas with a tremendous physical plant infrastructure to monitor.
From clinical wearables to first-responder tablets and sophisticated surgical suite equipment, the IoT is transforming healthcare. Connected home-based care systems
IoT technology enables today’s factories to unlock operational efficiency, optimize production, and increase worker safety.
For retailers, the IoT offers unlimited opportunities to increase supply chain efficiencies, develop new services, and reshape the customer experience. Unified view of operations
The IoT is addressing rising energy costs, sustainability, and code compliance by connecting, managing, and securing devices that collect data from core systems. Humand-to-building interaction, sustainability management, location-based services
From recognizing your voice to knowing who is at the front door, IoT technology is making the dream of a secure smart home a reality.
From connected or self-driving cars to intelligent transportation and logistics systems, the IoT can save lives, reduce traffic, and minimize vehicle impact on the environment. Fleet management and telematics.
- Globally, manufacturers will invest $140 billion in IoT solutions over the next five years. Of all of the industries analyzed, manufacturers will be the earliest adopters of IoT solutions and will invest heavily in new IoT solutions for factory floors.
- 18% of industrial machinery companies (i.e., manufacturers) are already using IoT devices, according to a SAS study.While this doesn’t measure the extent that the IoT has been implemented by manufacturers, it’s notable that almost one-fifth of manufacturing companies are already using the IoT to increase production and reduce costs.
- Nearly as many automotive companies, 17%, are using IoT devices in the production of their vehicles. Volkswagen added an SAP system that keeps track of all of their parts’ supply pipeline to help them track where items are located at all times.
- We expect the transportation and warehousing industry, that is, logistics companies, to also invest a significant amount in automating their warehouses and shipping: roughly $112 billion in 2019.
- The third-largest industry will be the information sector, including tech and telecommunications, which will expand investment to accommodate the increase in data and data-analysis demands generated by the IoT.