How IoT is penetrating the consumer market, government initiatives and business integration
The prospects of current opportunity in business verticals are nothing short of staggering since the IoT revolution began
Internet of Things is progressively getting better. 34 billion devices could be connected by the end of the next five years, with an estimated $6 trillion being spent on IoT solutions alone. I have already touched upon how IoT is an opportunity that countries around the globe are capitalizing on over the last few years. This time we look at how entire industries are shifting towards integrating IoT solutions over time. Verticals for IoT can be broadly fit under the umbrella of three key entities; consumers, governments and businesses.
Each entity by itself contributes massively to this phenomenal forecasted growth of IoT. In terms of a scalar representation of forecasted contribution, consumers could account for 5 billion, governments around the globe for nearly 8 billion and businesses a massive 11.2 billion connected devices. In terms of prospective returns, consumer, government and business entities would see ROIs as large as $400 million, $4.78 billion and $7.6 billion respectively.
Clearly, businesses are core to the plot of the IoT story line. As protagonists of the biggest quantitative contributors to IoT, business verticals that embrace the trend give birth to newer and bigger opportunities around the globe. Businesses need to stay in contention for their chunk of the ROI on offer. Therefore, we can safely assume that countless industries will hop on the IoT bandwagon.
Which verticals stand out from an IoT perspective?
In terms of verticals, there are hardly any that would not stand to gain from integration into the IoT ecosystem. Quite a few are already accounting for vivid numerical representations of what a vertical stands to gain by embracing IoT. There are some that stand above the others as evident early-embracers of the IoT revolution, while other verticals are slowly picking up steam. Some success stories that immediately come to mind are connected homes, agriculture, retail, banking, healthcare and hospitality. If we were to crunch numbers, each of these environments are well en-route to total IoT incorporation. Come 2030, a vast majority of devices for home usage shipped would be connected as connected homes take center stage in IoT usage. The implications of IoT usage in agriculture are quite astonishing, with an estimated $75 million worth of devices being shipped for the industry by 2020 alone. Primary devices here include soil trackers, acidity indicators and applications and variable that enable farmers to reduce wastage while doubling yield on the field. Consumer behavior and advertising take center stage in terms of IoT and retail. Mobile applications and sensory beacons triggered messaging and advertising will help generate an estimate $44 billion in the United States within the next five years alone. Added customer support and access to remote banking through ATMs is the next big thing in the banking sector. Connected devices could make data collection and process automation in healthcare remarkably smoother, with the industry aiming to peak at nearly $650 million by 2020. Let’s not forget how hospitality is also a key player, with service providers vying to provide the connected home experience to guests and visitors.
Honorable mentions are in order. Verticals of manufacturing, transportation, infrastructure and smart buildings, food services, logistics and many more are on the rise in terms of addressing the need to incorporate IoT for huge returns. With this amount of money in the market, it’s safe to say business verticals will offer a plethora of current opportunities, all this without skimming the prospect of opportunities arising out of the government and consumer market entities.