New data from Juniper Research revealed that the number of IoT (Internet of Things) connected devices will number 38.5 billion in 2020, up from 13.4 billion in 2015: a rise of over 285%.
The “Internet of things” (IoT) is becoming an increasingly growing topic of conversation both in the workplace and home.
IoT extends Internet connectivity beyond traditional devices like desktop and laptop computers, smartphones and tablets to a diverse range of devices and everyday things that utilize embedded technology to communicate and interact with the external environment, all via the Internet. Some of the objects that can fall into the scope of Internet of Things include connected security systems, thermostats, cars, electronic appliances, lights in household and commercial environments, alarm clocks, speaker systems, vending machines and more.
The new research, The Internet of Things: Consumer, Industrial & Public Services 2015-2020, found that while the number of connected devices already exceeds the number of humans on the planet by over 2 times, for most enterprises, simply connecting their systems and devices remains the first priority.
‘We’re still at an early stage for IoT’, noted research author Steffen Sorrell. ‘Knowing what information to gather, and how to integrate that into back office systems remains a huge challenge.’
Additionally, interoperability hurdles owing to conflicting standards continues to slow progress. Nevertheless, there are signs that standards bodies and alliances are beginning to engage to overcome these hurdles, Juniper said.
According to Juniper Research, the IoT ‘represents the combination of devices and software systems, connected via the Internet, that produce, receive and analyse data. These systems must have the aim of transcending traditional siloed ecosystems of electronic information in order to improve quality of life, efficiency, create value and reduce cost.’
The research notes that the IoT, therefore, is as effective as the sum of its parts. Mere connections create data; however, this does not become information until it is gathered, analysed and understood. The analytics back-end systems of the IoT will therefore form the backbone of its long-term success.
- The consumer segment (composed of the smart home, connected vehicles and digital healthcare), represents a high ARPU (average revenue per user) market segment.
- Meanwhile, the industrial sector (composed of retail, connected buildings and agriculture) will enable high ROI (return on investment) through IoT projects, owing to more efficient business processes.