You have to be living under a rock if you have not heard about the Internet of Things (IoT). The opportunities presented by the Internet of Things are huge, and it can usher in a new era of communication where each and everything is connected to each other. Along with Big Data, IoT has truly been the buzzword in the last year or so, and according to Future Market Insights, it will be worth a whopping US$ 7 trillion by 2020. The global IoT market is anticipated to witness a healthy CAGR of around 16% through 2020. The IoT market, which was valued at US$ 2.42 trillion in 2013 is anticipated to reach a valuation of US$ 7.13 trillion by 2020.
Internet of Things will Impact Every Walk of our Life
Internet of Things will have its impact on almost every walk of our life. From improving our transport system to making our homes more comfortable, Internet of Things can really make a huge difference to the way we go about our day to day tasks. Some of the key verticals of the IoT market include,
- Connected wearables
- Connected cars
- Connected homes
- Connected cities
- Industrial internet
Key Drivers for the Internet of Things
- Drop in the prices of sensors — the average price of sensors has dropped from US$ 1.20 to 55 cents in the last ten years. This price drop has made it possible for manufacturers to include sensor technology in their devices.
- Development of IPv6 — Although IPv4 supports approximately over 4 Bn addresses, the sheer volume of connected devices has led to the demand for a bigger version of Internet Protocol (IP). The development of IPv6 will be crucial in handling a plethora of IoT devices in the future.
- The proliferation of smartphones is another key factor that has enabled the growth of IoT. Smartphones are being increasingly used as a remote control for homes, cars, and TV.
Challenges for the Internet of Things
Concerns about privacy are the biggest challenges for the global Internet of Things market. If security and safety aspects surrounding the Internet of Things are not addressed, hackers might have a field day getting information about us. Therefore, it is very important that security and safety concerns surrounding the Internet of Things are taken very seriously and implemented before the IoT goes mainstream.
The devices that will be connected to the internet will use multiple platforms that will be different from one another on the basis of technology. In order to provide a seamless experience to all the stakeholders in the Internet of Things, a uniform protocol will need to be established.
These were some of the drivers and challenges associated with the Internet of Things market. According to industry experts, Internet of Things will be bigger than the previous two technological revolutions — the advent of internet and proliferation of smartphones. Well, in order to truly harness the benefits of the Internet of Things, sustained the effort, and continuous innovation will be required.