One billion wireless Internet of Things (IoT) devices’ were shipped up 60 percent from 2014 leading to an installed base of 2.8 billion devices. This is according to Deloitte’s Technology, Media and Telecommunications prediction (TMT) 2015.
Internet of Things- specific hardware compared to a more expensive cellular modem enables services worth about $70 billion which include all the data plans that may be necessary to connect a device over a network, the professional services which in this case include consulting, implementation and analyzing data not to forget things like an insurance policy discount for a telematics device in a car or wearable device for health purposes.
IoT hardware and connectivity revenues are growing at about 10-20 percent annually while the apps, analytics and services are growing even more rapidly at 40-50 percent. Different from what the press may focus on; consumers controlling their thermostats, lights and appliances, Delloite predicts that 60 percent of all wireless IoT devices will be bought, paid for and used by enterprises and industries in result to that, over 90 percent of services revenue generated will be enterprise, not consumer.
Modern Wireless technology allows a consumer with a smartphone to perform multiple useful tasks from controlling home security, climate and lightning; very fun indeed. With time, consumer demand will be 90 percent smaller than the enterprise market. Why? In the consumer context, Machine to Machine (M2M) solves only part of the problem. Turning a washing machine on remotely being notified when the cycle is finished offers some level of convenience compared to pushing a button on a machine basement. But the clothes need to be sorted, carried to the laundry room, pre-treated, placed in the machine and soap added. The portion of the task that M2M improves is trivial.
Internet of things has proved a hard nut to crack to a point there is a congressional committee for that. yes, a group of lawmakers in the US studying IoT in a bid to help educate members on the development of innovative technology and public policy in the Internet of Things’ space.
Full IoT is sometimes overkill and this is where it remains Internet of Things. For example, a task that M2M device may perform is ‘low touch’ the majority of homeowners seldom change their climate settings and their on/off patterns are predictable, as most of you have predictable routines. The conventional programmable thermostat is adequate for most homes, and is already installed, understood and paid for.
The powerful customization and data analysis that is possible through Internet of Things is not of interest to most consumers who are not looking for numbers but insights. Humans prefer that systems adapt to meet their needs with minimal change in human behavior and not the other way round.