While many companies are still looking ahead to the IoT future, a new report from Verizon suggest the Internet of Things is in fact already here and thriving. With an addressable market that includes over 50 million cars that aren’t yet connected, over 300 million utility meters, roughly one million vineyard acres and 45 million people sharing goods and services in the U.S. alone, it’s hard to argue with Verizon’s assertion that the IoT has gone mainstream.
The report, entitled "State of the Market: Internet of Things 2016," features insights from an Oxford Economics study commissioned by Verizon and states that, throughout 2016 and beyond, the IoT will be a revenue driver for large and small businesses alike. This is thanks to five key macrotrends.
The first is consumer expectations surrounding smartphones expanding beyond traditional smartphone capabilities. Thanks to IoT applications, the average consumer smartphone experience will include a much higher level of automation within three to five years. Even today, 81 percent of IoT adopters in the public sector believe consumers expect enhanced services from data and IoT.
Second, data monetization is fast becoming a required competency with half of businesses expecting to use more than 25 percent of their data over the next two to three years. As a result, data analytics will evolve from descriptive data collection to predictive and prescriptive data analytics.
The third trend has to do with changes in the regulatory landscape that will bring the right ecosystem partners together to establish industry standards—generally considered crucial to the IoT’s future viability.
The fourth trend is that network connectivity, low power devices and IoT platforms will democratize innovation, creating more tools for developers and enabling businesses to scale their IoT deployments from millions to billions of connection cheaply. Key to this is 5G, the next generation of wireless technology which will make more data-intensive applications possible.
Finally, security experts are tackling the problem of IoT security. By looking into arising threat vectors that could impact IoT deployments and ongoing operations, these experts will make the IoT much more viable.
"The view has been that IoT is a mashup of complex technologies used only by early adopters," said Mike Lanman, senior vice president IoT and Enterprise Products at Verizon. "In the past year, we've seen compelling examples of how IoT is being deployed by a wide-range of enterprises, entrepreneurs, municipalities and developers to address relevant business, consumer and public needs. Meanwhile, consumers are more willing to try new technologies and apps that introduce a better way of life. The end result will not only give rise to thousands of new use cases over the next two years, but will also create an accelerated pipeline for innovation and a new economy."