T his quarter, we take a look at one of the most broad reaching technology trends in the market today—IoT or Internet of Things. Given that most any “thing” of importance can be connected to the Internet, we expect IoT technologies to become pervasive in our business and personal lives. One measure of the importance of this market comes from Cisco, who estimates that $14.4 trillion in annual value will be created via the deployment of IoT technologies by the year 2022.
IoT refers to the interrelated network of physical objects that feature unique identifiers (IP addresses) for Internet connectivity, and the communication that occurs between these objects and other Internet-enabled devices and systems in order to transfer data without requiring human interaction. Examples of “things” that can exist in the IoT realm include trucks/cars, shipping containers, home appliances, water measurement systems, vending machines, pet collars, and a wide array of other connected devices. Some of the largest market segments that IoT technologies will be applied include: transportation & logistics, connected cars, fitness/wellness, connected homes, location/navigation, connected buildings, manufacturing & inventory management and health care services.
The market for IoT technology solutions itself is made up of an interconnected ecosystem of players including: manufacturers of chipsets and sensors that reside in the connected devices; IoT Gateway providers; service providers that provide network connectivity, security, and location; and back end systems providers that transform unstructured data being transmitted into useful business and consumer solutions.