The promise and potential of the Internet of Things story is as astounding as it was of the internet a mere two decades ago (then simply known as the “information superhighway”). No-one in the 90s could have foreseen how indispensable the world wide web would eventually become in a few years time. Now that the internet has closely merged with mobility, social networks and cloud, it would seem like we may have already reached the limits of its true potential.
Today’s generation will live to see billions of everyday objects around them, and not just computers or mobile devices, start collaborating with each other across heterogeneous networks. Interestingly enough, this futuristic vision was depicted by Hollywood in ‘Minority Report’, a sci-fi flick from 2002 where objects interact with each other independent of users.
2016 will be a year when we can actually expect a tremendous spurt in the adoption of Internet of Things (IoT) technology; Cisco has predicted that the global market will hit $14.4 trillion by 2022.
Here, we cover the top 5 trends in the IoT revolution to seize our imagination.
1) Push toward Smart Retail
IoT in the retail market has been estimated to grow at a CAGR of 20% from $14.2 Billion a year in 2015 to $35.6 Billion in 2020 . These figures are inclusive of growth in demand for chipsets, hardware, software and professional services. IoT solutions are helping retailers enhance in-store experience for customers with smart barcode scanners, mobile payment options and whether a given product was recommended for use based on their medical history. RFID, BLE, Zigbee and NFC-based retail IoT solutions will pick more pace owing to their low power needs. Retail giants like Walmart and Kroger are investing heavily in providing a push for IoT technology adoption in Retail.
2) Energy Sector to maintain IoT growth trajectory
IoT in the energy sector will maintain a steady growth trajectory with 24.1% CAGR over the next five years with an estimate to reach $22.34 billion by 2020. Global smart energy meter installations will see exponential growth from 400 Million devices to over 925 Million device installations in 2020 . Smart grid sensors are projected to grow ten-fold from 2014 to 2021. Smart lighting installations will grow fivefold from 46 Million units in 2015 to 2.25 Billion in 2020. Connected devices being controlled by utility companies will grow by 300% from 485 Million devices in 2013 to 1.53 Billion in 2020. Cloud computing and big data analytics are revolutionizing energy sector landscape and companies like GE, Alstom, ABB, and Schneider have already started investing in cloud computing solutions.
3) Home Automation to witness more innovations
IoT in home automation has given birth to the concept of connected homes. The market for these connected homes is estimated to grow at a CAGR of 67% from $400 million in 2015 to $18 Billion in 2019 . Consumer electronic products like AC, Refrigerator, Microwave ovens, dishwashers, washing machines are becoming smarter with IoT connectivity. Smartphone applications for energy management is becoming more popular than ever before. UI design being an important part of these applications, is witnessing new technology upgrades. Innovations in the consolidation of home security, surveillance, energy management and consumer device integration are about to be the next big thing in home automation market.
4) Industrial Internet of Things (IIoT) creating new footprints
IIoT has been estimated to grow at a CAGR of 8.03% from $93.99 billion in 2014 to $151.01 billion in 2020. Industrial automation landscape will witness more innovative solutions in M2M communication, machine learning, and real-time data analytics. Manufacturing uptime being the critical parameter of industrial customers, there will be more investments in developing IIoT solutions which can minimize downtime requirements.
5) Semiconductor market to witness IoT-focused growth
IoT-focused semiconductor market has been estimated to grow at a CAGR of 29.78% from $9 Billion in 2014 to $ 43 Billion in 2020. These figures cover the market potential of all three major IoT semiconductor categories, i.e. sensors, connectivity chipsets and compute processors/MCUs. Among these categories the market for sensors has been estimated to grow most with a CAGR of 42% from 2014 to 2019, while as for connectivity chipsets and compute processors the CAGR growth has been estimated to be 27% during same period. Semiconductor revenue from healthcare and human computing interface wearables has been estimated to grow at a CAGR of 100%-115% from $15 Million in 2013 to $& Billion in 2019.
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