Sergei Kostevitch, Executive Director of Perenio IoT
The concept of “Internet of things” (IoT) began to be widely used when the number of devices connected to the network exceeded the number of their users. Today, the number of connected devices exceeds the Earth’s population by several times and continues to grow, and the relationships between devices are becoming more complicated.
IoT’s introduction in various areas of everyday life is profitable because it’s a technology that brings comfort and economy. Time is the most valuable resource of the XXIst century, and IoT’s technologies are aimed at designating a person from routine tasks and allowing him time for more important things: creativity, communication, inventions.
Internet-connected devices give people more freedom and opportunities for the rational use of resources. Already today they help optimally consume light, water, and heat, which means saving on utility bills. Business comes to the understanding that the Internet of things provides an undeniable competitive advantage in various industries. Therefore, the use of one form or another of IoT in business is becoming a necessity rather than a desire to use modern technology in the digital world.
According to worldwide research by PwC Digital IQ®, IoT ranks first among eight innovation technologies that can change the business models of companies and industries, ahead of AI (artificial intelligence), AR/VR (augmented reality/virtual reality), drones, blockchain and several others in this ranking.
Industries that IoT will change in 2020
Based on global market data, we can forecast for industries and technologies where the Internet of Things will grow in 2020.
Cybersecurity
Until now, cybercriminals have mainly attacked companies by breaking into their internal computer systems. In 2020, hackers are expected to switch instead to company products in the hands of customers. They will block the connection or operation of the connected products, thereby threatening the security of these corporations. Security issues will be equally relevant for both the IoT devices themselves and the software.
5G connection
It is expected that in 2020, as a result of the emergence of a 5G connection, the data transfer rate will increase significantly. This will speed up the development of applications for IoT with increased speed and uninterrupted data transfer. Wireless sensing for radar systems of virtual assistants, medical diagnostics, and advanced technologies for positioning will become a reality already in 2020. As for location tracking, the new standard – IEEE 802.11az, is expected to provide high-precision tracking, which will be a key feature in 5G networks and will provide a new impetus for the development of a wide range of business areas – from consumer and product marketing to logistics.
Marketplaces & Ecosystem
Many companies see an opportunity for their development in creating ecosystems, accumulating customer data. For this purpose, banks buy ticket services, delivery services. Non-financial sector companies launch financial products so that users can transfer money and pay for purchases through these platforms. Such products connected to the same platform create a constant flow of data between the client and the manufacturer of the product, which leads to increasing costs for maintaining and developing the infrastructure and ensuring data protection. The rapid development of ecosystems and marketplaces in 2020 will provide an additional market for manufacturers in the field of the Internet of things. Forrester Research predicts that in 2020 the B2B market will shift from selling connected IoT products to offering support services for partners in the IoT ecosystem.
Medicine & Health
Portable smart devices, medical equipment and sensors, health monitors, virtual assistants, and mobile healthcare applications allow you to monitor the patient’s health at home. Intelligent wearable devices and implants already exist that communicate patient parameters and even smart cars that monitor patients’ vital signs when they travel.
Utility industry & Communal services and infrastructure
According to Gartner, with the ubiquity of meters, the utility industry is becoming the largest user of IoT devices. Building automation, which includes connected lighting, garbage collection, security, will become the number one as a driver for an increase in the consumption of smart devices next year.
Among the initiatives that cities will spend the most money on, the Smart City project includes smart energy systems, stationary video surveillance, modern public transport, intelligent outdoor lighting, and intelligent traffic management.
Big Data
According to the forecast of the research company IDC, by 2025 the total amount of big data created by IoT devices in one year will reach 79.4 zettabytes. This amounts to 79.4 billion terabytes, or 29.4 trillion gigabytes, which represents a huge amount of information that 41.6 billion connected devices are expected to collect, store, and analyze over the next six years. The amount of data that requires processing and analysis will increase significantly with billions of devices connected to consumers and industrial IoT.
IoT is interesting in itself as a new dynamically developing technology, but, in my opinion, the unification of the Internet of things with cloud computing will become a real innovation. This will provide new monitoring services and powerful data stream processing. The goal of leading companies is to extract as much information as possible from the collected data that can be processed. This will give a quantum leap in all sectors.