If big data, social media and cloud were the darlings of the buzzword world in recent times, the latest to join the bandwagon is the Internet of Things (IoT).
What do I mean when I say the IoT? A network of physical objects that contain embedded technology to communicate and interact on behalf of humans.
Some interesting statistics: According to Gartner, the Internet of Things installed base will grow to 26 billion units by 2020. McKinsey found that the Internet of things has the potential to create economic impact of up to $6.2 trillion annually by 2025. As the predicted numbers are quite staggering, let me give a brief roundup of its evolution, how apps are becoming an indispensable aspect of IoT and what the future holds.
Changing Faces of IoT – The Era of Mobile Apps Development
The Internet of Things term was coined in 1999, with companies like Walmart and Tesco using the concept to tag products. After a decade of evolution, the IoT 's presence can start to be felt in our daily lives through smartphone apps, which are fast becoming the control points of IoT in today’s world.
Every day a new smartphone app pops up with innovative features and unimaginable abilities. From a mosquito repellant app that produces a sonic sound to scare mosquitoes away or Smarthings’ smart home apps connecting your rooms, doors, kettle, refrigerators to Nike's wearable sports gear, tightly integrated with your fitness routine or Google’s driver glasses -- the flurry of killer apps are reshaping our daily habits.
At an industry level, IoT-based smart and innovative apps are being used to monitor remote site assets, manage Machine-to-Machine (M2M) and device connectivity across healthcare, manufacturing or supply chain domains. McKinsey estimates by 2025, 80 percent to 100 percent of all manufacturing could be using IoT applications to improve productivity, leading to a potential economic impact of up to $2.3 trillion.
The Internet of Things Effect in 2014
Productivity gains, ease of use and timesaving are key drivers for the IoT, yet it's still in the nascent stage. The IoT suffers low penetration largely due to lack of customer awareness and solid proof of concepts in both consumer and business market. Nothing groundbreaking can be expected in the near future, but one thing is sure: the Internet of Things will continue to enter our daily lives.
Drawing from recent developments in the IoT space, five things stand out:
Technology Fragmentation and Rise of Start-ups
According to Gartner by 2020, IoT product and service suppliers will generate $19 trillion in global economic value-add through sales into diverse markets. Considering this market, 2014 will see the emergence of niche start-ups, outsourced app development companies slogging it out for bigger projects. SmartThings funding of $12.5M last November and Thinfilm Electronics raising $24M indicate investors’ increasing interest in this market.