The numbers being forecast for the Internet of Things (IoT) are mind-boggling.
BI Intelligence finds that 1.9 billion once-inert everyday and enterprise devices are already connected to the internet — from parking meters to home thermostats — and by 2018 that number will top 9 billion.
That's roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined.
There are already clear signs that the biggest tech companies — and even smaller players — are trying to get out front of the race to dominate the IOT. Google has acquired Nest. Apple has unveiled its HomeKit platform. Even Staples and Honeywell — not typically companies thought of as tech leaders — are putting out new IOT-related products.
As uptake among consumers and businesses ticks up, BI Intelligence finds in a recent report that the IOT market will drive trillions in economic value as it permeates consumer and business life. Soon, it will be perfectly normal to have a refrigerator that talks to you and a garage door you open with your smartphone.
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In the consumer space, many products and services have already crossed over into the IoT, including kitchen and home appliances, lighting and heating products, and insurance company-issued car monitoring devices that allow motorists to pay insurance only for the amount of driving they do.
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In the report, we also find that there's a huge amount of innovation happening in the business-to-business IOT space right now.
Here's a look at some of the most important enterprise applications that are already being developed:
- Connected advertising and marketing. Cisco believes that this category (think Internet-connected billboards) will be one of the top three IoT categories, along with smart factories, and telecommuting support systems.
- Intelligent traffic management systems. Machina research, in a paper prepared for the GSM Association, sees $100 billion in revenue by 2020 for applications such as toll-taking and congestion penalties. A related revenue source will be smart parking-space management, expected to drive $30 billion in revenue.
- Waste management systems. In Cincinnati, residential waste volume fell 17% and recycling volume grew by 49% through use of a “pay as you throw” program that used IoT technology to monitor those who exceed waste limits.
- Smart electricity grids that adjust rates for peak energy usage. These will represent savings of $200 billion to $500 billion per year by 2025, according to the McKinsey Global Institute.
- Smart water systems and meters. The cities of Doha, São Paulo, and Beijing have reduced leaks by 40 to 50% by putting sensors on pumps and other water infrastructure.
- Industrial uses including Internet-managed assembly lines, connected factories, and warehouses, etc.
To access BI Intelligence's full report, Here Comes The Internet Of Things, sign up for a free trial subscription here. Subscribers also gain access to over 100 in-depth reports on social and mobile, and hundreds of charts and datasets.