Slideshare451 eb31

THE IoT MARKET IN 2016 -
SOCIAL, ECONOMIC & BUSINESS
CHALLENGES

This presentation is a summary
by InsightBrief of the Verizon
report: State of the Market: Internet
of Things 2016
Insights for busy professionals
Read in less than 10 mins
Knowledge without the fluff

Verizon’s ‘State of The Market: Internet
of Things 2016’ report looks at how the
Internet of Things (IoT) is addressing some
of society’s most pressing social, economic
and business challenges. It examines five
macro trends that are driving adoption and
delivering measurable results across several
industries and sectors, providing valuable
insight for all business sizes and consumers.
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The IoT Market in 2016 - Social, Economic & Business Challenges

CLICKTOACCESS THEWEBINAR
at a
compound
annual rate of
17%.
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$591.7
BILLION
$1.3
TRILLION
2014 2019
IoT global market spend predictions

The $1.3 trillion IoT market (projected)
in 2019 will be made up in the majority
by IoT devices, connectivity and IT
services. Modules and sensors alone
comprise 23% of this figure.
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“The Internet of Things (IoT) will
support total services spending of
$235 billion in 2016”, according to
Gartner’s estimate. This ‘services’
spend is in contrast with the past,
where organizations have focused on
collecting and using data to improve
their operational efficiency.
BUSINESS BENEFITS
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Since 2015, enterprise IoT startups
have raised 75% more funding than
consumer IoT startups, and this trend
is set to continue in 2016, with Verizon
Ventures predicting this differential to
increase to 2-3 times more funding.
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2015 was the year IoT gained
legitimacy, according to Verizon,
with businesses across all industries
building IoT into future strategies and
business models.
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Revenue growth is by far the biggest
factor driving IoT adoption according
to an Oxford Economics study. Data
monetization, core IoT networks and
low power devices, platforms as a
service and investment in IoT startups
are the four key trends facilitating this
growth.
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The proliferation of IoT platforms is
being driven by the sheer complexity,
as well as security and privacy
issues that enterprises have around
IoT. These platforms make the
development and deploying of IoT
applications easier, faster, more
secure and accessible for all.
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IoT technologies will enable
enterprises to comply with the new
environmental and safety regulations
that will expand beyond nation-state
borders. IoT will fulfil the new tracking,
monitoring, data reporting and
analyses requirements.
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In order to make sense of the
massive volumes of data from
individual IoT applications and
millions of sensors, IoT data and
analytics capabilities need to
converge.
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Think of the IoT as an
ecosystem made up of tens of
thousands of small markets,
not a single, monolithic
market.
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Companies will increasingly be able to
exploit big data from IoT ‘things’ to better
understand and serve their customers,
moving beyond descriptive data, leveraging
predictive and prescriptive analytics.
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IoT promises, through predictive and
prescriptive analytics, to enhance the
way people live rather than expecting
them to adapt. It is the ability to
collate, integrate and act on data
from multiple sources that enables
predictive and prescriptive analytics.
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As the IoT network and device ecosytem
evolves, the cost of connecting IoT
sensors & devices containing smaller,
less power hungry chipsets (known as
Cat 1 devices) to a wide-area network
is now much less of a barrier to
widespread IoT deployment.
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A major benefit of IoT to businesses of
all sizes is the ability, using low cost
sensors, to track machines, other assets
and product across the entire supply
chain from manufacturer to consumer.
This will allow businesses to quickly
provide critical information to their
customers and supply chain partners.
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Data from IoT devices, when
integrated with other relevant data
such as weather or traffic data, is
enabling companies to make better
decisions based on a more holistic
view that is tied to the business.
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Data from IoT can be used to influence
public behaviour. One smart-lighting
manufacturer is exploring ways
to pinpoint the source of gunfire
and alert police and emergency
dispatchers. Another city displays
the energy used by uptown buildings,
resulting in reduced consumption of
electricity.
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IoT platforms will help businesses
contextualise their IoT data, especially
as subject matter expertise and
analytics capabilites become
increasingly critical components of
the IoT ecosystem.
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v
Drug manufacturers are adopting IoT
solutions in response to the Supply Chain
Act, a regulatory compliance requirement.
Sensors are used to track and store all
transaction histories of prescriptions drugs
and shipment information across their
distribution supply chain. This law is tackling
counterfeit drugs which costs the industry
$75 billion annually.
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Tech savvy farmers are using IoT as part
of the solution to helping find better
methods to feed the planet, particularly
pertinent as the world's population
is expected to grow by 2 billion to 9.7
billion by 2050.
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The IoT will help farmers comply with
anticipated regulatory reporting, for
example, around water usage, as well
as help promote more efficient use of
resources, or tracking of livestock, so
injury, illness or theft can be instantly
detected.
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The Hahn Winery has IoT gateways on the
1000-acre vineyard that continuously
monitor data on water, weather, temperature,
mildew and transmit this information
wirelessly to Verizon's Ag Tech solution on
ThingSpace. This data is used to time and
target the use of fungicide sprays to prevent
disease on the fruits.
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By 2050 nearly 2/3rds of the global
population will be city-dwellers according
to the World Health Organisation. With
public services and energy under increasing
pressure, IoT technology is providing a way
forward for ‘smart cites and communities’ to
help streamline services like transportation,
street-lighting, sewer and sanitation.
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By 2020, 250 million connected vehicles
will be on the road according to Gartner,
enabling new in-vehicle services and
automated driving capabilities - all made
possible by the advancements in IoT,
telematics and connectivity.
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A major driving factor behind IoT adoption
is regulatory compliance. The impact of the
Energy Act in the U.S exploded the market for
monitoring energy consumption - using IoT
enabled remote-capable meters with smart
grid app support. Installed devices expected
to reach 454 million in 2016 and to more than
double by 2020.
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In 10 years time, staff at regulators such
as the US Federal Trade Commission,
according to their head, will consist largely
of technologists rather than lawyers and
economists - such will be the impact of IoT,
wearable products and services.
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IoT security and privacy is now focusing
on authentication of critical data and
baseline triggers for action. This is very
relevant as there currently is no IoT
protection framework that’s ahead of the
implementation of IoT technology.
BUSINESS BENEFITS
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BUSINESS BENEFITS
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8%of businesses
50%of businesses
are expected to
leverage their IoT use
of data to more than
25%
use more than
25% of their IoT
data
Currently In the next 2-3 years

Most enterprises do not have all the skills and
capabilities in-house to make IoT a reality.
This requires a complex process involving
sensors, mobile devices, secure network
connectivity, storage, big data analytics,
ability to scale new services and ongoing
integration and fine-tuning.
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Smart cities must evolve and move from
‘measuring and monitoring’ IoT data to
‘analyzing and integrating’ this data in
creative new ways that enhance the lives of
the people living there, saving energy costs
and enabling new city services.
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5G, the next generation of wireless
technology has the potential to deliver
the requirements on speed, latency and
capacity to support IoT opportunities like
robotics and autonomous vehicles in a
truly connected world.
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Critical data from IoT devices can be traced
and identified using a privacy technique
called “pseudonymization” of data, which
requires assigning an obscured identifier to
the data so that it doesn’t readily map to a
known person or address.
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IoT adoption will grow significantly in the
next 18 months - driven by falling costs and
the increasing convenience, simplicity and
security of connecting things. The impact
on society and how people live their lives
will be far reaching. As tangible benefits are
experienced, IoT adoption will expand quickly,
just as cell phone usage did.
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IoT will play a significant role in a new
sharing economy with the “Uberization” of a
wide range of services. No longer restricted
to the tracking of assets, IoT will facilitate
the sharing of assets as well as determining
rates for insurance and healthcare based on
usage and behaviour.
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Soon, every industry will be an IoT business
- this is what industry experts predict
based on the benefits early adopters such
as agriculture growers, are reaping from
IoT technology - precision agriculture - the
practice of sensing and responding to variable
soil, moisture , weather and other conditions.
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IoT platforms are proliferating. They simplify
the process of building and managing IoT
applications, providing a one-stop solution
for development tools, secure infrastructure
and everything else developers need to build,
launch, scale and manage apps, as well as all
connected devices and huge volumes of data
endpoints generated.
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E X E C U T I V E B R I E F
THE IoT MARKET
IN 2016 - SOCIAL,
ECONOMIC & BUSINESS
CHALLENGES

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