Home > Massive growth in IoT to pose a challenge and an opportunity

Massive growth in IoT to pose a challenge and an opportunity

article image Many existing businesses are now pursuing IoT through the consumerisation of IT.

By 2015, 4.9 billion connected things will be in use, according to Gartner research.

The Internet of things (IoT) has become a powerful force in the market, and its disruptive impact will be felt across all industries and all areas of society, according to the research company.

According to Gartner analysts, the digital shift means that many existing businesses are now pursuing IoT through the consumerisation of IT.

This will provide new avenues for consumers, businesses, city authorities, hospitals, and many other entities to use technology. According to Gartner, IoT will support total services spending of $69.5 billion in 2015, to grow to $263 billion by 2020.

Most of this revenue growth will be driven by consumer applications. Within the consumer sector, Gartner estimates that 2.9 billion connected things will be in use by 2050. This will reach 13 billion by 2020. Meanwhile, IoT will see is greatest growth in the automotive sector which is due to grow at 96% in 2015.

From an industry perspective, manufacturing, utilities and transportation will be the top three verticals using IoT in 2015 – all together they will have 736 million connected things in use. By 2020, the ranking will change with utilities in the No. 1 spot, manufacturing will be second and government will be third, totaling 1.7 billion IoT units installed.

According to Gartner, most governments uses for IoT will come from investments in smart street and area lighting for energy saving reasons. Utilities are also increasingly use IoT technology in smart meters.

Additionally, Gartner anticipates that there will be new services and usage scenarios driven by increasing numbers and varieties of objects which are connected to the Internet.

It is likely that within the next few years, some level of built-in intelligence and connectivity will be regarded as standard, and this will rapidly filter down to mainstream products and services. Most of the value, however, will lie not in simply digitising an object but in building new business models to cater for previously untapped needs .

Additionally, organisations must balance the temptation to collect and analyse information from smart beings with the risk of its loss of misuse. Data security will become more important than ever.

The IoT highlights the tight linkages between information security, information technology security, operational technology security and physical security like never before.

Gartner said that by the end of 2017, over 20 per cent of organisations will have digital security services devoted to protecting business initiatives using devices and services in IoT.

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