The above infographic, Internet of Things EcoSystem, forms part of a new report – Internet of Things (IoT): Business Opportunities 2015-2025 – by research agency IDTechEx.
IDTechEx sees two main application sets emerging for IoT (a) Consumer Applications, driven by the proliferation of smart phones and Tablets which can connect to objects, including wearable technology, home automation, healthcare and fitness, vehicles and infotainment; and (b) Industrial and Government applications, such as infrastructure monitoring, lighting, transportation and process automation.
Industrial and government IoT – is anything new?
According to the report, the latter will succeed where IoT solves problems, and this, based on history, “can be more challenging than at first glance.” Businesses seek a clear return on investment before investing, and the adoption of non-IP based sensor systems has been slower than expected in many respects. Many systems are used in closed loop scenarios where few nodes are used and there is more value in the complete solution supply. Often there is some degree of supplier lock-in – using systems dedicated for a particular application (which tends to perform better than generic systems) which also helps to prevent the hardware from becoming commoditised. With reluctance from incumbent suppliers, some of that may transition to IoT IP based devices in time, where hardware will be commoditized.
Consumer applications – huge potential
Consumer applications will be a great opportunity for IoT. Unlike industrial IoT implementations it is less about ROI and much more emotional, with consumers prepared to pay for useful products and systems, said IDTechEx. The latter believes that the business models here are still embryonic and there will be many concepts tried and novelty peaks before strong, sustainable IoT markets emerge. These will usually provide better and new consumer services and propositions – benefits consumers want and are prepared to pay for.
Incidentally, IDTechEx has planned an event – Internet of Things Applications USA 2014 – which is scheduled to be held on November 19 this year in Santa Clara, USA. It will address the applications of IoT – all of consumers, industrial and government based.
Image Credit: IDTechEx
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