The Internet of Things (IoT) refers to the ecosystem of devices fitted with sensors, electronics, and network connectivity, which enables them to collect and exchange data. The term is not new, being coined in 1999 by British technology pioneer Kevin Ashton, then working as assistant brand manager at Procter & Gamble. But the massive potential of IoT is only now becoming unavoidable and attracting huge investments and attention.
There is barely an industry that will not be transformed by the IoT, making this sector an incredibly important growth sector within the wider technology industry. The beauty of the technology behind the IoT is that it can be used for an almost endless list of applications; in fact, it seems that the only limit is human ingenuity about how connected devices can be applied. In the next twelve months, however, we can identify the most exciting trends of IoT deployments.
Automotive
Connected cars form a large application area within the mobility sector and IHS Automotive predicts that by 2020, there will be 152 million cars connected to the internet. In May 2015, Daimler Trucks North America announced it was ready to test its driverless Freightliner Inspiration Truck on Nevada roadways. However, driverless cars, such as those being developed by companies like Google and Tesla, are slowly coming on line in the form of safety sensors that provide the driver with a 360-degree view of their car. Most car manufacturers have already committed to the self-driving car concept, but the most famous example of these vehicles comes not from a motor maker but a technology company, which has been testing its cars for some time. In Ontario, Canada, the Ministry of Transportation has announced on-road testing beginning January 2016 and Japan will be implementing unmanned taxi services next year. Singapore plans to deploy self-driving buses on its streets. The data obtained from the sensors is also used by auto companies to make their cars safer and are the next inevitable step in automobile evolution.
Healthcare
Internet of Things looks set to transform healthcare in the near future. With wearables already tracking many health functions, the IoT will transform how we track our health and fitness. As these wearables become more sophisticated, health practitioners will need to find easier ways to harness this massive amount of patient data. These devices generate data whenever the user wears them, and the huge amount of information gathered each day necessitates a cloud approach to hosting and analyzing this data. The fact that these technologies are based in the cloud opens up major opportunities for healthcare professionals to gain invaluable insights into health trends that affect the whole population, and to measure the efficacy that medicines or lifestyle changes have on people. It will, however require stringent safeguards to protect individual identities and any personal or sensitive information generated by or associated with these devices.
Maritime :
The maritime industry has long used a plethora of sensors aboard vessels and installations at sea. Ericsson, for example, recently unveiled an enhanced IoT solution for maritime shipping. This cloud-based platform will connect ships at sea with a range of global support services, from maintenance service providers to client support centers to port authorities. A “connected ship” provides real-time insight to a whole host of parties and to communicate with a limitless number of important systems. For example, an engineer on the other side of the world can monitor engine performance, and automatically order replacement parts to be sent to the vessel’s next port of call. Fleet and transportation managers can keep a constant eye on factors such as fuel consumption, enabling them identify and improve inefficiencies in their operations. Meanwhile, connected ships can more easily communicate with the full range of maritime communication systems, encompassing navigation, port and customs authorities, and environmental monitoring.
Property :
At the residential and commercial property level, there will be an inevitable increase in the proliferation of smart objects, which are already being used to improve energy efficiency and lower power costs. However, when connected devices begin to communicate with each other, as could happen even as early as 2016, the potential for increasing efficiency and saving time is enormous. IoT is also finding uses in the real estate industry, with some brokerage firms already experimenting with Apple's iBeacon technology. Here the concept is that prospective homebuyers receive a message on their smartphones when they pass a house for sale, with iBeacon providing instant details on the house. Once inside, iBeacon has the potential to present house details, renovation opportunities, and floor plans, among other details.
Market Potential :
Today, we are still only at the dawn of the Age of IoT. The full capabilities of the technology has yet to be realized, yet the sensors that will power the connected world are already present almost everywhere in urban environments and, increasingly, in the home.
A recent report by PwC estimates that the IoT market will grow to around $9 trillion by 2020, comprising up to 30 billion connected devices. Eventually, IoT technology will bring together every object, consumer, and activity into the digital realm and once this is done, many problems that have plagued businesses and everyday life since the dawn of time will be greatly reduced or even disappear. The uses for this technology are limitless and can be seen everywhere; and with more and more devices being connected to the internet through Wi-Fi and other technologies, the IoT age has well and truly begun.
While the consumer market for connected devices naturally attracts the most newspaper headlines, business-related applications will power the further development of the IoT. The business benefits brought by IoT-derived insights make connected devices, together with other ancillary services such as analytics, a very attractive and lucrative field of R&D for software providers and for the technology consulting companies.
However, as with all disruptive technology, IoT does come with its fair share of risks. A key risk is security, with a staggering 70% of IoT devices estimated to contain cyber-security vulnerabilities, according to research by Ernst and Young. In addition, there is the issue of liability since it becomes difficult to assign responsibility with so many sensors collecting and exchanging so much data. However, the IoT bandwagon is unstoppable and its proliferation inevitable in the year 2016 and beyond.
