Do you know what the most common question regarding the Internet of Things or IoT market is? Most people want to see the number of devices connected by the IoT network. Even a few years ago, it was difficult to count the number of connected devices.
The market did not have a clear idea of what a connected device is and which devices could be connected by such a system. Even in 2012, the M2M recasting process for complimenting IoT in a better way was in its initial stage.
Time has changed, and IoT market size and its future possibilities are clear now. In 2014, the research process became pretty more manageable. Around this time, many studies predicted that the number of connected devices would be almost 14 billion by the end of 2022.
The number was 2 billion at the end of 2013. Market experts have also anticipated that most IoT devices will emerge in four particular industries- Automotive, healthcare, intelligent buildings, and utilities.
Except for intelligent buildings, the number of connected devices would be almost 6 billion by 2022. It was only 900 million by the end of 2013. As smart buildings engage numerous connected devices, this sector includes a comparatively massive number of connected devices. However, it does not imply that the intelligent building sector is the winner in the fast-growing IoT market.
An Insight into IoT revenues and applications
What will be the revenue potential of this market by 2022? It is predicted that the revenue potential will be 596 billion euros across all the areas of the ecosystems. It should also be considered that not only the numbers and devices in the particular industries matter; considering the IoT-empowered applications is also important.
A detailed survey on the utility industry has stated that more than 90% of all connected devices will be connected to innovative metering applications in the coming days. Electrical vehicle charging, distribution, and transmission will lose their importance with the growing number of connected devices.
Even application areas with a low number of connected devices would also offer an ocean of opportunities to build innovative and effective solutions and assure greater success in the marketplace. Experts have also opined that smaller application areas will have fewer competitors. However, the impact of revenue on these new solutions is not associated with the number of connected devices.
IoT in automotive & manufacturing industry
The automotive industry’s picture is similar to that of the utility industry. As per a report, 90 percent of all connected devices will be utilized in the applications used in the vehicle industry. The importance of some other applications, including emergency, entertainment, navigation, and security, will emerge immensely in the coming years.
The evolution of IoT in the automotive industry has started earlier. All you need is to consider the connected fleets, car-to-go solutions, etc. The manufacturing industry and supply chain will need a comparatively low number of connected devices than other industries.
The impact of device management and IoT solutions in this sector is higher than in the other industries. For instance, predictive maintenance applications have shown potential for cost reduction and the increase of uptime and productivity.
The evolution of this industry has demonstrated that all the application areas have equal importance. In the future, this industry will be dominated by applications designed for predictive maintenance, processing, shipping, warehousing, and shipping.
Are you all set to welcome a bigger IoT market size? To leverage all the benefits of this coming developed market, you need to prepare an IoT management strategy and tools for business model innovation.