This Industry Can Generate $11 Tn Value A year. Are You In?

The Internet of Things or IoT, probably, is the most talked about topic across industries in the recent days, and perhaps, one of the core areas where almost all the industries have started investing heavily in. This is because the IoT has the potential to impact our lives in a way that we are unaware of, but wish it would come true. Sample this.

Didn’t you ever wish, your car knew about your meeting schedule and it takes the fastest route to reach there? Didn’t you wish, while being driven, the car should play your favourite music gauging your mood? On a long drive or on a congested route, don’t you wish someone else takes over the wheels from you and you could reflex a bit? What if your car takes over the job automatically?

Let’s take a wilder example. Don’t you ever wish you could understand what your pet says you? Or, how the animals talk?

These are not wild dreams but a possibility, and human beings are inching closer to that as you read this. This is becoming possible as things, living or non-living, are getting connected to the internet and a conversation is being established. That is IoT for you.

IoT :The Evolution, err, Revolution

IoT is a gradual evolution of technology, rather, technologies. While human beings are connected to the internet and gather and share information among themselves, it was being felt that they represent a tiny part of the universe and there is unthinkable amount of data that can be collected from other sources and can be put to use.

These data are collected from billions of devices – cell phones, computers, machines, appliances and anything that can be connected to the internet by using on/off switches and sensors.

What Drives Adoption Of IoT

There are multiple factors driving the growth of the internet of things. Easy availability of wireless broadband, humongous growth of smartphones, devices with remote connecting capabilities including wifi and decreasing cost of technology and connectivity – all these factors put together are creating an ecosystem to connect billions of devices, capture data and put to use for purposeful solutions.

The industry enabled by internet of things or IoT is going to connect everything making it internet of everything or IoE. The connectivity and its size can be judged by the estimated devices that are going to be connected to the internet in times to come. It is estimated that more than 20 billion devices, from a world having 6 billion people, are going to be hooked to internet by 2020.

This estimate can be verified by the recent announcement by Qualcomm that said the company is currently shipping more than 1 million chips per day for the IoT to meet challenging customer requirements for interoperability, connectivity, compute and security.

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“We are focused on significantly expanding capabilities at the edge of the network by supporting everyday objects with the connectivity, compute and security technologies required to build a powerful Internet of Things, where devices are smart, convenient, work well together and incorporate advanced security features,” says Raj Talluri, senior vice president, product management, IoT, Qualcomm Technologies.

The San Diego based technology major’s chips are currently being used in IoT products in areas including wearables, voice and music, connected cameras, robotics and drones, home control and automation, home entertainment, and commercial and industrial IoT.

The Potential

Be it academia, technology visionaries or research analysts, all are in unison in acknowledging the potential of this industry that is going to rule the next centuries of businesses. So much so that this industry can generate revenue of $11 trillion per year by 2015. Yes, we are talking about the world of internet of things or IoT.

Not long-ago research firm McKinsey had estimated that the economic impact of IoT can range between $4 trillion a year to $11.1 trillion a year, or 11% of the world economy, in next 8 years. This value can be accrued in multiple of industry verticals including manufacturing, healthcare, smart cities that encompasses public safety, traffic management and resource planning, retail, transport, homes and offices.

“While hundreds of brands have shipped over 1.5 billion IoT products using our solutions, we are just getting a glimpse of the benefits that the IoT can deliver, with analysts estimating that IoT applications could have a total economic impact of up to 11 trillion dollars a year by 2025. We have built strong capabilities on top of our leadership in mobile inventions, and we are innovating in exciting new areas such as deep learning, voice interface and LTE IoT that will power a new generation of IoT devices,” adds Talluri.

From the perspective of building the foundation of the IoT industry, Qualcomm has been leading this industry from the front. For example, its wearables platforms have been adopted in more than 150 wearable designs, and over 80% of Android Wear smartwatches launched or announced are based on Snapdragon Wear 2100 platform. In smart homes, more than 125 million TVs, home entertainment and other connected home products from leading brands have shipped using Qualcomm Technologies’ connectivity chips.

The Road Ahead

While the IoT industry still at its infancy with having multiple issues including standardization security and the best-case connectivity protocol, the current estimated market size seems to be under-hyped.

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