Twenty years ago, the term “internet of things” was coined by a marketer named Kevin Ashton. Working for multinational consumer goods corporation Proctor & Gamble, his idea to use RFID to help manage P&G’s supply chain led to a partnership with MIT. For his efforts, Ashton became a high-tech entrepreneur and best-selling author, but his lasting legacy will likely be tied to the actual internet of things.
The internet of things is growing so rapidly that it’s becoming difficult to get a read on the accepted number of internet-connected devices. In fact, companies more frequently print forecasts rather than reality, because there is no way to know how many actual devices there are connected to the internet, but by most tallies, the number is in the ballpark of 20 billion and growing. What does this mean for us? Today, we’re going to take a look at the internet of things and try to forecast how it will change the way we do things by 2025.
First Considerations
The first thing you should know is that this massive internet of things rollout is not going to make the internet any less important. Despite its renouncement as a utility, the iInternet can be thought of very much like electricity was toward the beginning of the 20th century when the technology had been established and its use was just beginning to fuel a market of goods designed to use electricity. The internet today is still coming online in places all around the world, but there remain large chunks of land where it’s not yet available. As the ubiquity of high-speed internet comes to fruition, the world will be confronted with a new reality, where technology is altering humanity in ways you wouldn’t even imagine.
Of course, this won’t happen in six years, but the exponential growth of the internet of things from a few million devices in 2006 to more than 20 billion two decades later is going to affect the way people live. It’s not just a matter of the technology being there, it’s the function of that technology that changes things. In this case, many of the products that people have been using for decades are being manufactured with the capability of connecting to wireless networks. Most of them have corresponding software that provides a new cache of functions. As time goes on and devices get smarter, whole parts of a person’s routine will be automated. Like I said, the internet of things is altering humanity.
Explaining “Things”
When people think of the internet of things, they inevitably think about the gadgets that have limited functions or their wearable technology. They may not consider that “things” include almost anything. There are literally internet-connected things that help humans control their gardens, their car, their livestock and even their health. It’s getting to the point where anything that could be connected to the internet, is. There are those calling this a “mega trend,” but don’t be surprised if it’s simply just the new normal.
With so many things connected to networks, the networks need to be bigger, stronger and more resilient. As a result, more consideration needs to be taken to the makeup of the networks and the underlying hardware. This can become a major issue for the rapidly expanding business, so taking heed about the growth of internet of things devices that are currently and potentially going to be on your business’ network going forward is a good strategy.
By the Numbers
With this seemingly inevitable internet of things boom happening as we speak, there is some seriously impressive statistical growth being projected. Some of the most staggering projections of the internet of things market in the next few years include:
- There will be more than 21 billion internet of things devices connected to the internet
- Internet of things devices will generate nearly 80 zettabytes of data
- Internet of things will become an even bigger draw for cybercriminals
- Driverless transportation of people and goods will increase rapidly
- Whole cities will be “smart”
- Router technology will improve to feature new tools to boost network security
- 5G Networks will exponentially increase internet of things growth
- Internet of things ubiquity will create new privacy and security concerns
- Governments will build and pass more regulations concerning privacy and security of data
- Industrial internet of things market will grow to a whopping $920 billion per year
- Total internet of things markets to grow past $1.5 trillion per year
If these numbers are any indication, the internet of things looks to be one of the biggest vertical markets in the world before long. This will have major effects on business in the coming years. Some of the most marked ways this shift will be seen are in:
Productivity
With increased knowledge provided by the internet of things tracking every part of the business, making processes more efficient is much simpler. In fact, some estimates say that businesses stand to gain upwards of 20 percent from the integration of the internet of things into their processes. What may be surprising is that most of this number is found on the consumer end of things. Better understanding of the people that purchase goods and services from a company can help that organization market themselves more effectively, potentially saving a load of capital.
Remote Workforce
The growth in internet of things will have a massive amount of value for businesses that want to expand their workforces outside the confines of a brick and mortar building. Since the internet of things allows employees to connect to work remotely, workers are more apt to be happier and more productive.
Data Sharing
The exchange of data has been a growing part of doing business for some time, but with more internet of things, your business’ data-sharing capabilities get smarter over time. Smarter devices mean that customers, employees, vendors and management are able to access relevant information quickly without having to sort through other data, improving most of the business’ ability to provide value.
Significant Improvement to a Supply Chain
For manufacturers and distributors who largely can’t support a remote workforce, it creates efficiency by improving the supply chain management. As every part of the process is reported by internet of things devices, the central software will give employees a view of a business they’ve never seen before, making production and distribution more efficient and effective.
It’s not an overstatement to say that the internet of things will change the world over the next six years. Is your business implementing any internet of things devices or systems to help you be more efficient, control costs or simply be more effective? Reach out to our IT professionals to talk about how internet of things fits into your business today at 844.671.6071.