“With an addressable market that includes more than 150 million cars that are not currently connected, over 300 million utility meters, nearly 1 million vineyard acres and 45 million people sharing goods and services in the US alone, the Internet of Things (IoT) is now mainstream,” the report says.
The report attributed this growth to five factors of the connected world.
One of the primary reasons is consumers are expecting their smartphone to do more than what it is doing now. “Consumers appreciate their smartphones, but in an IoT-enabled world, they are starting to understand and expect that their phones can do more,” says the report.
In 3 to 5 years, average consumers will experience a much higher level of automation in their daily lives thanks largely to the ability to engage with IoT applications through a more simplified interface. In fact, today, 81 percent of IoT adopters in the public sector believe that their citizens increasingly expect them to offer enhanced services from data and IoT.
The second trend, the Verizon report says, that data monetization will become a required competency. Nearly 50 percent of businesses expect to be using more than 25 percent of their data over the next 2 to 3 years. Data analytics will evolve from descriptive data collection to a more sophisticated model of predictive and prescriptive data analytics and as industries seek to derive meaningful insights to benefit their customers, there will be a paradigm shift from “big data” to domain experts.
The report also predicts that network connectivity, low power devices and IoT platforms will democratize innovation by creating more tools for developers and enabling businesses to scale their IoT deployments from millions to billions of connections more cost-efficiently.
Besides these, the changes in the regulatory landscape will continue to bring the right ecosystem partners together to help establish industry standards more quickly, says Verizon.
The report also highlights that enterprises are turning to startups to help accelerate their IoT growth. In 2015, enterprise IoT startup companies outpaced funding for consumer startup companies by 75 percent. Verizon’s experts say that enterprise IoT startup companies will raise two to three more times in capital in 2016 compared to their consumer IoT counterparts.
“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.”