The combination of AI, machine learning and contextually rich, real-time data streams delivered by IoT sensors and networks is going to make IoT business cases compelling in 2019. IoT is the cornerstone of many organizations’ digital transformations, enabling them to optimize existing operations and excel at creating and pursuing exciting new business models.
In 2019 new Industrial Internet of Things (IIoT) platforms will be introduced that look to solve the most complex challenges manufacturers have of consolidating all production systems into a single data model. Manufacturers adopting IIoT and orchestrating analytics, BI, quality management, mobile technologies and the many benefits of real-time monitoring using IoT sensors will grow faster than the market, out-innovating their competitors in the process.
Key takeaways from the collection of IoT forecasts and market estimates include the following:
- Ericcson is forecasting the number of cellular IoT connections is expected to reach 3.5B in 2023, increasing at a CAGR of 30%. The forecast for cellular IoT connections has almost doubled, due to ongoing large-scale deployments in China. Of the 3.5B cellular IoT connections forecast for 2023, North East Asia is anticipated to account for 2.2B. Source: Ericsson Mobility Report, June 2018 (PDF, 36 pp., no opt-in).
- IoT devices and services will reach an inflection point of 18% to 20% adoption in 2019. DBS Asian Insights is predicting that the IoT installed base will grow from 6.3M units in 2016 to 1.25B in 2030. Source: DBS Asian Insights, Internet of Things The Pillar of Artificial Intelligence, June 28, 2018 (PDF, 64 pp., no opt-in)
- Worldwide technology spending on the Internet of Things to reach $1.2T in 2022, attaining a CAGR of 13.6% over the 2017-2022 forecast period. IDC predicts that the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries. From a total spending perspective, discrete manufacturing and transportation will each exceed $150B in spending in 2022, making these the two largest industries for IoT spending. Source: IDC Forecasts Worldwide Technology Spending on the Internet of Things to Reach $1.2 Trillion in 2022.
- Bain predicts the combined markets of the Internet of Things will grow to about $520B in 2021, more than double the $235B spent in 2017. Based on their latest survey of IoT early adopters, Bain is seeing more of their enterprise clients trying out new use cases: 60% in 2018 compared with fewer than 40% in 2016. Their findings are consistent with many other surveys and early adopter plans that are predicated on analytics, machine learning and AI providing insights that enable successful digital transformation strategies. Source: Bain & Company, Unlocking Opportunities in the Internet of Things, August 9, 2018.
- IoT Analytics predicts the global market for Internet of Things is expected to grow 37% from 2017 to $151B in 2018. Due to the market acceleration factors, the firm mentions in the cited post, they are revising their forecasts up and expect the market to reach $1.567T by 2025. Source: State of the IoT 2018: Number of IoT devices now at 7B – Market accelerating. IoT Analytics. August 8, 2018.
- The market for Industry 4.0 products and services is expected to grow to $310B by 2023. IoT Analytics is predicting global spending on Industry 4.0 products and services will soar from $119B in 2020 to $310B in 2023, attaining a 27.04% Compound Annual Growth Rate (CAGR). IoT Analytics bases this forecast on six core building blocks (hardware, connectivity, cloud platform & analytics, applications, cybersecurity, and system integration) and six supporting technologies (additive manufacturing [3D printing], augmented and virtual reality [AR & VR], collaborative robots, connected machine vision, drones / UAVs, self-driving vehicles [SDVs]). Source: New market report uncovers nine disruptive trends and ranks 12 key use cases transforming smart manufacturing, IoT Analytics. November 14, 2018.
- 90% of senior execs in technology, media, and telecommunications industries say IoT is critical to some or all lines of their business in 2018. 54% are very confident that their company was building sufficient digital trust controls into their IoT programs. Source: Statista, Importance of, confidence in, and investment plan for Internet-of-Things (IoT) in organizations worldwide as of 2018, by Industry, 2018.
- Security, IT/OT integration and unclear ROI are the greatest barriers t IoT adoption today. Bain & Company’s latest survey of their enterprise clients reflects the broader market’s high priority on securing and integrating IoT networks. Interoperability, data portability, vendor risk, and network constraints continue to escalate with clients since the latest survey completed in 2016. Source: Bain & Company, Unlocking Opportunities in the Internet of Things, August 9, 2018.
- IoT will drive the greatest business transformation in the next three years according to a recent KPMG survey of 750 tech leaders. The survey also predicts IoT will lead to the next indispensable consumer technology and has the greatest potential to drive the greatest benefits to life, society and the environment. Source: KPMG, The Changing Landscape of Disruptive Technologies, 2018. (PDF, 28 pp., no opt-in).
- Integrated end-to-end supply chain planning and connectivity for Industrial Internet of Things (IIoT) projects are the two areas where IoT leaders have the greatest competitive leads today. Digital innovators are also investing heavily in automating Manufacturing Execution Systems (MES) with IIoT technologies. The following graphic compares digital maturity levels by adoption. Source: PwC, Internet of Things Keynote Presentation, September 2018.
- Environmental monitoring, smart metering, inventory intelligence, renewable plants supervision and operator productivity are the five highest potential uses cases according to Capgemini. Their latest analysis of how companies are getting business value from their IoT strategies compare use cases by their benefit of implementation and payback period of investment. Source: Capgemini, Unlocking the business value of IoT in operations, 2018 (PDF, 28 pp., no opt-in).