IoT: It’s Massive and It’s Real
By Mike Collado
The Internet of Things, or IoT, is poised to dominate the wireless industry conversation for the next five years with a fervor greater than Small Cells, which had been the hot topic within the access and edge network market since 2010. And the volume of talk and activity surrounding IoT is only increasing.
- M&A and JV activity is immense. 2016 has been historic for acquisitions – both in quantity and size – led by SoftBank ($32B for ARM), Verizon ($2.4B for Fleetmatics) and Cisco (1.4B for Jasper). In addition, GE and Huawei as well as IBM and AT&T have announced strategic partnerships to capitalize upon IoT opportunities.
- In his book, “The Third Wave,” Steve Case, AOL’s co-founder and CEO, predicts IoT to be the genesis for the next technological revolution that will transform the economy and the way we live our lives.
Just What is IoT?
Think of IoT as a giant network that connects people to people, things to things, and people to things. Pragmatically, it’s about aligning people, process, data and things. And it manifests across smart communities and smart cities, energy, manufacturing, agriculture, transportation, healthcare and education. Learn more by reading industry application case studies in the State of the Market report from Verizon.
How Big is the IoT Market?
In a word, it’s massive. IDC predicts the worldwide IoT market spend will grow from $591.7 billion in 2014 to $1.3 trillion in 2019. The McKinsey Global Institute estimates it will grow from $3.9 trillion to $11.1 trillion per year by 2025. And ABI forecasts that connections to things, sensors, computers and people will grow nearly 10 times in the next 20 years.
How Pervasive is IoT?
According to Steve Case, “We are entering a new phase of technological evolution, a phase where the Internet will be fully integrated into every part of our lives… As (IoT) gains momentum, every industry leader in every economic sector is at risk of being disrupted.”
It will be so pervasive that, in time, IoT will be considered the “new normal,” as Peter Jarich at Current Analysis writes about it in FierceWireless.
How Will IoT Be Achieved?
Partnerships, policy and perseverance are identified as success drivers in Case’s “The Third Wave,” which informs why tech giants are actively acquiring and partnering. It also amplifies the imperative of engaging government.
“New lending platforms require Securities and Exchange Commission (SEC) clearance,” writes Case. “Personalized genetic testing requires approval from the Food and Drug Administration (FDA). Delivery devices can’t be flown without clearance from the Federal Aviation Administration (FAA). And the list goes on and on.”
What is the Role of Wireline & Wireless Networks?
Wireless networks were designed for smartphones. Enabling IoT devices, sensors and modules requires low access speeds, not the high bandwidth needed to stream videos on smartphones. Low power access promises an important role for carriers and fiber providers to facilitate the deployment of NB-IoT (Narrow Band IoT) LPWAN (Low Power Wide Area Network) radios indoors and outdoors.
IoT is both massive and real. Günther H. Oettinger, Commissioner for Digital Economy and Society at the European Commission, refers to IoT as the most important transformation since the Industrial Revolution. Within 18 months of its founding, the Industrial Internet Consortium has amassed more than 240 member companies. IoT even has its own global conference – the IoT Solutions World Congress 2016 – now in its second year, which takes place next month in Barcelona.
About the Author
Mike Collado helps companies win mindshare and capture market share. He recently served as Vice President of Marketing for SOLiD where he led corporate marketing, product marketing and marketing communications. Contact Mike at firstname.lastname@example.org.