The Value Potential of IoT
The document discusses the value and opportunities of Internet of Things (IoT) applications. It states that IoT currently uses less than 1% of available data, mostly for alarms and real-time control, but more value can be unlocked through optimization and prediction. Interoperability across systems and sectors is needed to capture 40% of the total potential value for developed economies and 60% for developing economies. The document identifies key opportunities as predictive maintenance, better asset utilization, and higher productivity, as well as transforming business processes through remote monitoring and enabling new business models. It estimates the total potential economic impact of IoT by 2025 to be $3.9 trillion to $11.1 trillion annually across various sectors.
The Value Potential of IoT
- 1. 2X more value from B2B applications than consumer Less than 1% of data currently used, mostly for alarms or real-time control, more can be used for optimization and prediction Interoperability required to capture 40% of total value Developing economies: 40% Developed economies: 60% Types of Opportunities Predictive maintenance, better asset utilization, higher productivity. Transform Business Processes For example, remote monitoring enables anything-as-a-service. Enable New Business Models Where is the value potential of the Internet of Things? Identified Verticales With a total cross-sector view of a total potential impact of $3.9 trillion-11.1 trillion per year by 2025 Home Chore automation & security $200B-350B Vehicles Autonomous vehicles & maintenance $210B-740B Cities Public health & transportation $930B-1.7T Outside Logistics & navigation $560-850B Human Health & fitness $170B-1.6T Worksites Operations optimiza- tion / health & safety $160B-930B Retail Automated checkout $410B-1.2T Factories Operations & equip- ment optimization $1.2T-3.7T Offices Security & energy $70B-150B Source: McKinsey Global Institute IoT Study Visit: kaleidoscopeiot.com