Advancements in IoT forge disruption of traditional business models across industry segments
MRO MagazineIndustry Machinery and Equipment Maintenance
Santa Clara, Calif. – The Internet of Things (IoT) market is poised for rapid growth with the development of microelectronics, ubiquitous connectivity, and cognition. Due to the abundant opportunities for vendors and service providers across all levels of the IoT ecosystem, enterprise systems integrators and platform vendors have a promising future. In the consumer space, Amazon, Google, Apple, Samsung, and Microsoft have intensified efforts to dominate the personal assistance race to control homes and the profitable consumer IoT and artificial intelligence sector. To succeed in a highly fragmented market, consolidation will be essential with vendors and service providers coalescing around large enterprise platforms that provide the necessary building blocks and encourage the development of applications from smaller vendors.
Frost & Sullivan’s analysis titled, Growth Opportunities for Service Providers in the Internet of Things (IoT), predicts the total number of IoT devices will grow from approximately 12.44 billion devices in 2016 to over 45.31 billion devices by 2023, at a global compound annual growth rate (CAGR) of 20.3 percent. In addition, the study shares an overview of the IoT landscape in the next 12-18 months in terms of adoption, applications and key market players, as well as forecasts growth opportunities for vendors and service providers in different levels of it IoT ecosystem.
“Application development platforms are the engines that drive IoT growth. By tightening integration and consolidating IoT platforms, seamless solution development, costs, and value for customers will be improved,” said Frost & Sullivan Internet of Things (IoT) Research Director Dilip Sarangan.
Five predictions for IoT in the next 12-18 months include:
- Transition from connected devices to the use of cognitive or predictive computing and sentient tools;
- Use of artificial intelligence to transform smart devices so that they react to changes in the environment without human intervention;
- Increased commoditization of platforms;
- Boom in drone delivery and use of drones to monitor remote wildfires, cell towers, and electric lines;
- Unsecure devices and malware escalate cyber-attacks, making IoT a national security hazard.
“While it is impossible to create standards across all the industries that are part of IoT, there is need for standardization around how data is collected, stored, and communicated across different industries and applications,” noted Sarangan. “This will provide leadership opportunities for large platform vendors.”
Growth Opportunities for Service Providers in the Internet of Things (IoT) is part of Frost & Sullivan’s Internet of Things (IoT) Universe Growth Partnership Service program.