The Internet of Things (IoT) will lead to a wholesale transformation of how large globe-spanning companies do business, but adoption will start in certain industries
In an all-new report from BI Intelligence, we examine the industries currently driving growth in the enterprise Internet of Things and how various sectors of the economy will embrace IoT innovations.
Almost every industry can benefit from investing in the IoT, which means adding data-collecting sensors to objects such as factory machinery, office buildings, and warehouse shelves. Based on trends in industry-specific capital expenditures, global size, current use of IoT devices, and through an analysis of where IoT vendors are focused on selling, we estimate enterprise IoT spending by industry.
Here are a few of the key findings from the BI Intelligence report:
- Globally, manufacturers will invest $US140 billion in IoT solutions over the next five years. Of all of the industries analysed, manufacturers will be the earliest adopters of IoT solutions and will invest heavily in new IoT solutions for factory floors.
- 18% of industrial machinery companies (i.e., manufacturers) are already using IoT devices, according to a SAS study.While this doesn’t measure the extent that the IoT has been implemented by manufacturers, it’s notable that almost one-fifth of manufacturing companies are already using the IoT to increase production and reduce costs.
- Nearly as many automotive companies, 17%, are using IoT devices in the production of their vehicles. Volkswagen added an SAP system that keeps track of all of their parts’ supply pipeline to help them track where items are located at all times.
- We expect the transportation and warehousing industry, that is, logistics companies, to also invest a significant amount in automating their warehouses and shipping: roughly $US112 billion in 2019.
- The third-largest industry will be the information sector, including tech and telecommunications, which will expand investment to accommodate the increase in data and data-analysis demands generated by the IoT.
In full, the report:
- Defines what devices we include in the IoT and how the devices will be controlled
- Forecasts the potential size of the IoT by 2019 in terms of revenue, number of devices, and value-added to the economy
- Examines why factors including the drop in sensor prices, increases in internet penetration, and current sales of smartphones and tablets are the drivers of rapid IoT growth
- Looks at how the home, government, and enterprise sectors use the IoT differently, and lists possible future uses
- Identifies the major consortia of IoT companies and examines what they are doing to help drive IoT growth
- Compares our device estimates to those of other research firms
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