The Internet of Things (IoT) is a growing network of connected objects able to collect and share data via embedded sensors. The proliferation of these devices is upending traditional practices through the introduction of data analytics and automation, and transforming the way people and groups interact with the world.
The IoT ecosystem has five distinct components. Any IoT implementation, whether in a manufacturing plant, a connected car, or a smart home, will use:
Hardware, or the devices within the IoT solution.
Networks that connect the IoT solution to the user.
Remotes, which provide the user with an interface to connect to and manage the IoT solution.
Platforms that provide messaging, analytics, and data storage components.
Security protocols that ensure the IoT solutions remains protected.
BI Intelligence projects that in 2021, the number of IoT devices installed will rise to 22.5 billion, up from 6.6 billion today. This growth will lead to major increases in efficiency and productivity, as companies and platforms discover innovative new means of using the devices they put in place and the data those devices produce.
Companies implementing the IoT are focusing on smaller device installations. At companies that have or are in the process of implementing IoT solutions, 51% of respondents say their companies will use fewer than 50 IoT devices, according to exclusive BI Intelligence data. Large scale implementations (1,000 devices or more) are generally limited to companies with over 500 employees.
We estimate that annual spending on the IoT will rise from just under $400 billion in 2016 to $1.35 trillion in 2021. This estimate is based on device projections, platform costs and growth projections, and data on device operation and associated costs. In total, we expect $4.8 trillion in IoT spending over the next five years.
The majority of companies surveyed by BI Intelligence will invest less than $100,000 in IoT implementations, with 25% of respondents investing between $1,000 and $25,000, and 27% spending between $25,001 and $100,000. The increases in overall investment in the IoT in the years ahead will come from the multitude of companies pursuing these implementations.
IoT deployments can be broken down into five separate and distinct stages: connecting devices, managing devices, analyzing device data, creating interoperability between devices, and automating devices. Interoperability and automation are the most difficult to attain, with only [...]