Internet of Things will reinvent industries, will create USD 1.9 Tn of economic value add by 2020

GartnerAs per Gartner’s recent report, by 2020, Internet of Things will create $1.9 Trillion of economic value add and over 30 Bn connected devices, as compared to 2.5 billion connected devices in 2009, will be in use. The verticals that are leading its adoption are manufacturing (15 percent), healthcare (15 percent) and insurance (11 percent).

Also, while IT spending in Europe, the Middle East and Africa (EMEA) will show an average annual growth rate of 2.2 percent through 2017, the Internet of Things (things, people, places and systems) will create new markets and a new economy.

Internet of Things or Network of things is a term coined 10 years ago and first highlighted in 2005 in a study by ITU as per a report by CER-IOT. Since then, a lot has been said and predicted about the concept.

The companies like IBM, Intel and Xively along with Cisco are few among the many who have already started utilizing the concept, in order to provide a combination of services, tools and libraries that are purpose-built for developing, deploying and managing connected products on the Internet of Things.

Technological giants like Google, Apple, Samsung are increasingly investing on evolving everyday products into interconnected smart technology. Google Glass, Nike+ running shoes, Samsung Smart watch, Goji Smart Lock are few such products.

IDC in its latest report has analyzed the worldwide opportunity for the flourishing “Internet of Things” (IoT) market, and predicts that it will generate up to  USD 8.9 Tn by the year 2020. Also, it came up with internet of things index, ranking countries on the basis of their opportunity to gain from the Internet of Things.

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If talked about Indian market, it has also been seen among the potential markets, by the researchers worldwide, having a suitable readiness to adopt internet of things. Where India was given 16th rank on the G-20 Index, Gartner in its previous reports highlighted Internet of Things as a key technology trend to be followed by Indian companies in 2014.

As per the analysts, the Internet of Everything will re-invent industries at three levels: business process, business model, and business moment. “This will allow companies to move away from blanket pricing to more tailored solutions which benefit both company and customers”, said Peter Sondergaard, senior vice president at Gartner and global head of Research.

Also, the report gave a clear picture of how digitalization could form a base at each of the three levels, thereby improving products, processes and business models. Mr. Hung Le Hong, research vice president and Gartner Fellow, cited the examples of Nike, playing on the edge of the healthcare industry with its connected sporting clothes and gear, and Google having a visible presence in autonomous vehicles. “These organizations had no business in your industry, and are now re-inventing them,” he added.

Surely, Internet of Things is revolutionizing the world, and is expected to create tens of millions of new objects and sensors, all generating real-time data. Compared to where organizations were a year or two ago most CIOs have made significant progress on embracing digitalization, yet nearly half of CIOs said that they are not ready to meet the digital challenge. “Just like with the strategy, the flavor of digital leadership is not vanilla. CIOs must explore, adapt and embrace the new digital realities. They must be fearless digital leaders”, said Dave Aron, research vice president and Gartner Fellow.

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