IoT Evolution and Market
Majority of industries recognize that M2M and IoT have become the key growth opportunities for telecommunication service providers and enterprises of various sizes in the next decade. Many of us may have questions about M2M and IoT, which can be:
- How IoT started?
- What are the key market drivers for IoT?
- What is the market size?
Evolution of IoT started with consumer devices where Mobile Handsets, Tablets, Computers are connected with the networks and sharing the information among each other. The first phase of IoT is related to Home automation and control. A short example is that home appliance is controlled using mobile. During this phase, the normal device i.e. Mobile Phone no special devices are required.
In the next phase of IoT is expended to the industrial automation, Video surveillance and Health Monitoring types of applications. This phase of IoT is known as machine type communication where the sensor collects the data, sends it over the network to a remote server where it is being processed.
The current phase of IoT is where everything is connected to everything and this phase is known as the Internet of Everything. To support such kind of connectivity special devices, networks are required. Many of such devices placed indoor so strong indoor coverage is needed. Another there might be billions of devices, so the network should have a large capacity. Device for the Internet of Everything does not require high data but these require long battery life.
IoT market is expected trillion dollar market and it is set for aggressive growth in the coming future. The total IoT market is estimated to be 30 billion connected devices by 2025 a researched published by Machina Research, May 2015. Fixed and short-range communication will be a significant part of IoT communications although cellular technology is forecasted to grow as the technology of choice for IoT applications as well, 3GPP and 3GPP2 are working for standardization. These billion connected devices can cover the market for Health Care, video and surveillance, retail, transportation and utility sectors. Rapidly growing IoT adoption in different industries presents significant market opportunities for telecom operators. IoT connectivity revenue is expected to increase from US$6 billion in 2011 to more than US$50 billion by 2021.
The key IoT market drivers for telecom operator and larger enterprises is a generation of new revenue stream, tremendous volumes of devices to be deployed, and a drastic increase of operational efficiencies required for operation of IoT solutions. From a business perspective, the adoption of IoT is driven by factors such as:
Optimization of the utilization of physical and financial assets
- Predictive maintenance and industrial control
- Asset Tracking and Management
- Smart Metering
Differentiation of products and services to increase customer satisfaction through connectivity and Devices
- Tracking Weather condition for shipping companies
- Proactive Monitoring of Diesel in Electric Generator
- Garbage Bin Empty and Full Status and location tracking
Transformation of customer engagement
- Relocation Services
- Gym Training Consultation analyzing data captured by wearable devices