A to a set of forecasts gathered by Forbes at the end of 2016, the Internet of things (IoT) and Industrial Internet of Things(IIoT) forecasts reflect a growing emphasis on generating results based on sensor data and creating data sets for analysis. The trend is towards adding value by solving complex logistics, manufacturing, service and supply chain issues.
For instance, Lufthansa uses IoT based strategies to create data collection services from maintenance, repair and overhaul (MRO), and to provide data to customers. They also use real-time aircraft and weather sensors for comprehensive observation to improve punctuality and optimize command operations. Lufthansa brings together all available data so that it can consistently provide exceptional user experience. Sensors and the Internet of things also signal the future of the industry.
What is IoT actually?
The phrase Internet of Things (IoT) was first used in 1999. The concept of IoT is to enable real world objects with speech, vision, hearing, smell, and touch, so inanimate things can perform jobs more accurately, responsively and collaboratively. The transformation is possible only when sets of technologies are created that are broadly applicable to industry. IoT layering is one of the classification methods used to establish a logical framework to categorize and identify Cyber Physical Systems (CPS). Components in the IoT architecture are logically and intuitively placed under the perception, transmission, computation and application layers.
So, how fast is the IoT market growing?
IHS predicts that the installed base of the global Internet of Things equipment will grow from $15.4 billion in 2015 to $30.7 billion in 2020. In 2025, this figure will reach $75.4 billion.
Forrester predicts that transportation, government security and monitoring, retail and inventory management, and industrial asset management in the primary manufacturing sector will be a hot area of growth in the Internet of things in the future. They also found that big companies are more likely to use Internet of Things than smaller ones. 23% of the large enterprises surveyed claimed they use Internet of things, while for SMEs, this proportion is only 14%.
McKinsey estimated that the total size of the Internet of things market reached $900 million in 2015, and is expected to reach $3.7 billion in 2020, reaching an annual CAGR of 32.6%. By 2025, the Internet of Things market is expected to reach a number between $2.7 and $6.2 trillion.
Sounds good, let’s launch the world’s first connected slippers!
Not so fast. Although the IoT is relevant in virtually every industry, the same thing cannot be said about every application. According to Gartner, by 2020 there will be no purely “IoT applications”. There will be however many applications that leverage the ubiquity of IoT in some way or another. In other words simply collecting the data won’t be enough; businesses need to thoroughly think what value that data is delivering.
The same company expects three out of four IoT projects to face schedule extensions of up to 100 percent with the consequent cost overruns. Of course, they haven’t considered how Swie manages to reduce the hardware product development time. Complicated project will be of course more exposed to this risk. Compromises will have to be made in order to keep the projects on time and on budget. This will however be made on the expense of performance and security. Overall, the so called “technical debt” of IoT devices will be increasing.
As a result, Gartner believes that the average security budget for IoT security requirements will respond to the growth of IoT devices across all business segments and scenarios, rising from less than one percent of annual security budgets in 2015 to 20 percent in 2020.
So, no connected slippers then?
Not necessarily. New and innovative products will appear and some of them might seem like crazy ideas now. However, when you do decide to work on the connected slipper idea, please make sure that it doesn’t spy on you afterwards.
P.S.: Is it just me or the connected slipper idea starts to sound good?