3 Reasons Why You Should Care about IoT
IoT applications are not only shaping the everyday life of millions of individuals around the world, but they are also determining new business models and competitive advantages. Therefore, we give you three reasons why you should care about IoT.
1 - A triple digit billion dollar industry
The IoT industry and the value it generates should not be underestimated. In fact, the expected growth of IoT for the upcoming years will play a pivotal role in our society. Forbes stated that the IoT market will grow from $157 billion in 2016 to $457 billion in 2020 - an astonishing 190% growth. Furthermore, according to McKinsey&Company, IoT will play a decisive role and possibly make up 11% of the global economy by 2025.2 - IoT is an opportunity for both B2C and B2B companies
IoT does not only apply to consumer products, such as smart homes. There are also B2B uses, e.g. fleet management, which we commented in a previous post. The reason why is that both consumers and business customers are becoming more connected. With an expected 30.7 billion operative devices by 2020, it is clear that companies have to consider including IoT in their competitive strategy.3 - IoT is still a blue ocean
The market for IoT is far from saturated, and there is still plenty of room for businesses to enter this profitable competition. In fact, the 2017 BCG report shows that all technologies related to IoT usage will benefit at least a 20% CAGR with services and IoT analytics as the main growth drivers. To understand the importance of IoT and how it will change the competition among companies, and in this case the B2B market, it is very useful to analyze the sectors which will attract the most relevant investments in the following years. Research shows that transportation and logistics, discrete manufacturing and utilities will account for almost 50% of the IoT spending in B2B by 2020.Now is the time to get started!
These three reasons give a clear indication that IoT will affect a great amount of businesses in different sectors and in disparate markets. And since there are still profits to make, the time to get started is now.
Luca
Luca brings his DRIVE and positive energy to this blog. He is committed to his objectives and fellow Driven by Tech readers. So don’t hesitate to get in touch with him if you need help understanding IoT. He never backs down from a challenge!
Send him an email