After a promising 2017 followed by technical issues in 2018 that slowed the growth of the Internet of Things, particularly around security and privacy, 2019 is shaping up to be the year when these facilitating and unifying technologies finally take off. Here are 5 good reasons to invest in the IoT.
1. The future looks bright for the IoT
In its semiannual guide, the IDC (International Data Corporation) finds that spending related to the Internet of things is expected to reach $745 billion in 2019 (+15.4% compared to 2018). When we talk about connected objects, many people think of individual uses like connected watches, smartphone-controlled roller shutters, or coffee makers that start at a programmed time… But well-being and personal comfort are not the only applications of the IoT. On the business side, particularly in industry, broad opportunities are opening up.
For Carrie MacGillivray, Vice President of Internet of Things and Mobility at IDC,
“The next chapter of IoT is just beginning as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world.”
The applications that will experience the greatest investments in 2019 are motivated by the industry’s top spenders: manufacturing ($100 billion), production asset management ($44.2 billion), smart home ($44.1 billion), and freight management ($41.7 billion). There is also the building industry, where progress will unquestionably be the most visible. In addition to home automation benefits designed to provide comfort and well-being in a home, more crucial points, such as energy management, can be fully covered by the IoT. Better still, we can optimize consumption, relay it, and share it, thus combining digital and ecological transition, collective consideration of the environment, and individual economy.
2. Add value to services and expertise
In an increasingly competitive consumer goods market, connecting a product creates value. Through new applications and through direct benefits for consumers and the brand. Offering connectivity solutions is no longer a differentiator. NOT offering them is what holds back sales. Take, for example, manufacturers in the thermal sector. In the next few years, sales will undoubtedly be higher not because of equipment, but because of algorithms capable of boosting thermal comfort and creating energy efficiency. It is no longer a question of how to connect products or a brand, but rather how to promote connectivity around new services and applications for customers.
3. Generate new revenue
As for the disciplines and professions directly impacted by the progress of the IoT, a future without connected objects now seems inconceivable. Home automation offers real added value, particularly for real estate developers, who now offer products as a service. More than a gadget designed to improve living comfort, IoT is integrated into the building’s construction and has a direct influence on its design. And the same is true in many sectors. Brokers, insurers, and service providers are affected by changing analytical and predictive technologies.
4. Collect information to fuel your business model
By focusing on the IoT, companies can easily collect targeted data to help them diversify their revenue streams while encouraging customer loyalty and engagement. This will allow them to respond more quickly to customer needs and improve customer satisfaction and user experience.
5. Streamline applications and promote environmentally friendly behavior
Saving energy and protecting the planet are vital concerns. By streamlining mobility and consumption by collecting, managing, and sharing data and by focusing on fostering interoperability among objects and technologies, companies can pinpoint areas of waste and offer clear solutions to address them. Here are some examples:
- Connect an electric car to the network to share its energy storage
- Stop the washing machine to avoid using a coal-fired power station
- Don’t turn on public lighting when there is nobody in the street
- Don’t turn on the heater when you are 50km away from home
Some exceedingly cautious investors may fear a speculative phenomenon, and others may fear possible security breaches that could harm the development of the IoT. But rest assured.
- Security breaches are becoming rarer over time, through investment and manufacturer professionalism.
- Speculative bubbles have always existed, like fears surrounding the bursting of the internet bubble. However, this has in no way hindered the development of the internet, which is ubiquitous today.