Trends driving the IoT in 2017 and beyond
Jenalea Howell, IHS Markit Technology’s research director of the Internet of Things (IoT) connectivity and smart cities team identifies four key trends
The Internet of Things, or “IoT,” is not a specific device or technology. Rather, it’s a conceptual framework, driven by the idea of embedding connectivity and intelligence in a wide range of devices.
An IoT device has some form of embedded connectivity that allows it to directly connect to the internet (ie. IP addressable) or tether to an IP addressable device. HIS Markit forecasts over 20 billion IoT devices will be connected globally by 2017.
The ability to collect vast amounts of data in near-real time from this broad range of intelligent connected devices is the foundation of the IoT. This data can then be accessed directly, or via the cloud, and unique value propositions can be created through the application of complex analytics and big data techniques. In this way, the IoT can, and will, be used to provide unique value propositions and create complex information systems which are greater than the sum of the individual components.
Innovation and competitiveness
To date, much of the focus on IoT monetisation has rightly revolved around the way in which suppliers are earning revenue selling components, software and/or services to IoT application developers. Increasingly, however, the focus is shifting to the IoT developers themselves and how they will monetise the new streams of data delivered by their IoT deployments.
Over the past several years, the IoT connectivity space has undergone consolidation as larger vendors have built out their portfolios and/or competitively focused on vertical integration to tightly manage supply chains and ultimately their margins.
Standardisation and security
With the high growth in IoT deployments and the hype surrounding the promise of the IoT marketplace, it’s evident that scaling the IoT is highly dependent on not just the pace at which devices are connected, but also the ability to manage a large number of devices.
Currently, diverse standards and technologies make it difficult to evaluate the multitude of available technology options. Alongside managing this complexity, stakeholders must take a holistic, end-to-end view of securing systems comprehensively and move beyond focusing solely on device security.
Business models
The methods used to monetise the IoT are almost as diverse as the IoT itself. Many pioneers of the IoT sold products to build the IoT, but now there is a shift to reaping the benefits of the data that’s been created.
An overabundance of business models are being tested to determine which models work and for which applications. Advertising, services, retail and big data are just a few of the areas that have spawned many innovative experiments in monetisation.
Wireless tech innovation
Getting value out of the IoT inherently means moving beyond connectivity. However, at the core, connectivity availability remains key to our world – connecting applications that could not be linked previously.
Advances in wireless technologies will continue to extend the IoT at both the low and high ends. At the low end, low-power wide-area network (LPWAN) promises low cost, low power and long range, connecting millions of devices that previously could not be united in a practical way. At the high end, 802.11ad makes it possible to wirelessly connect very-high-performance applications such as 4K video. Beyond 2020, 5G has the potential to address new mission-critical use cases, particularly where mobility is essential.