IHS Markit Names Top Four Trends Driving the IoT in 2017 and Beyond
January 24, 2017 | IHS MarkitEstimated reading time: 3 minutes
Fueled by lightning-fast demand for ubiquitous connectivity, the number of connected Internet of Things (IoT) devices globally will jump by 15% year-over-year to 20 billion in 2017, according to new analysis from IHS Markit.
In a free new report entitled “IoT Trend Watch 2017,” IHS Markit technology analysts have identified four key trends that will drive the IoT this year and beyond. Increasingly, the report says, businesses see the IoT as a tremendous opportunity to create unique value propositions by linking disparate systems of connected devices that range from multiscreen content sharing to smart city networks.
IHS Markit defines IoT as a conceptual framework, powered by the idea of embedding connectivity and intelligence into a wide range of devices. “These internet-connected devices can be used to enhance communication, automate complex industrial processes and provide a wealth of information that can be processed into useful actions – all aimed at making our lives easier," said Jenalea Howell, research director – IoT connectivity and smart cities for IHS Markit.
According to the report, the industrial sector -- led by building automation, industrial automation and lighting -- will account for nearly one half of new connected devices between 2015 and 2025.
IHS Markit has named these four trends as leading the IoT evolution in the coming years:
Trend #1 – Innovation and competitiveness are driving new business models and consolidation
To date, the focus on IoT monetization has rightly revolved around the way in which suppliers earn revenue selling components, software or services to IoT application developers. Increasingly, however, the focus is shifting to the IoT developers themselves and how they will monetize new streams of data delivered by their IoT deployments.
A wide range of monetization models are being tested, reflecting the fragmented nature of the IoT market across numerous vertical industries. Successful models will revolve around “servitization” and closer, ongoing relationships with end customers, the report says.
Trend #2 – Standardization and security are enabling scalability
With the high growth in IoT deployments and much hype surrounding the promise of the IoT marketplace, scaling the IoT is highly dependent on two factors: first, the pace at which devices are connected and second, the ability to manage a large number of devices.
Currently, diverse standards and technologies make it difficult to evaluate the many technology options available. Stakeholders also must take a holistic, end-to-end view of securing systems comprehensively and move beyond focusing only on device security.
By 2020, the global market for industrial cybersecurity hardware, software and devices is expected to surpass $1.8 billion as companies deal with new IoT devices on business networks as well as a new wave of mobile devices connected to corporate networks.
Trend #3 – Business models are keeping pace with IoT technology
The methods used to monetize the IoT are almost as diverse as the IoT itself. Many pioneers of the IoT sold products to build it. That is still happening, of course, but now there is a shift to reaping the benefits of the data that’s been created.
An overabundance of business models are being tested to determine which models work and for which applications. Advertising, services, retail and big data are just a few of the areas that have spawned many innovative experiments in monetization. In the coming years, the pace of innovation will slow as successful business models are identified.
Trend #4 – Wireless technology innovation is enabling new IoT applications
Advances in wireless technologies will continue to extend the IoT at both the low and high ends. At the low end, low-power wide-area network (LPWAN) promises low cost, low power and long range, connecting millions of devices that previously could not be unified in a practical way. At the high end, 802.11ad makes it possible to wirelessly connect very high performance applications such as 4k video.
Beyond 2020, 5G has the potential to address new, mission-critical use cases, particularly where mobility is essential. By 2020, IHS Markit expects around two billion device shipments by integrated circuit type will feature integrated cellular technology.
Note: IHS Markit provides insight and analysis for more than 25 connectivity technologies in 34 application segments used for the IoT. For more information on wireless connectivity technologies and the opportunities offered by the IoT, visit technology.ihs.com/iot-research or call +1 844 301-7334.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
05/10/2024 | Marcy LaRont, PCB007 MagazineSpring is a renewal each year as dormant flora bloom, and baby ducklings and geese are ever present in local bodies of water. Even though it is beginning to get hot, I love this time of year in Arizona, with the sun waking me around 5 a.m. It fills me with an energy that I often lose in the dark winter months. Wherever you find yourself in the world, I hope you are enjoying Spring and that you are filled with energy and enthusiasm for all the great work part of our daily lives in this industry.
TTM Technologies Appoints Wajid Ali to Board of Directors
05/10/2024 | TTM Technologies, Inc.TTM Technologies, Inc. announced that Mr Wajid Ali has been appointed by the unanimous vote of the remaining Directors to serve as a new Class I director on the Board, effective immediately.
SCHMID Group Closes Business Combination, Begins Trading on NASDAQ
05/02/2024 | SCHMID GroupGebr. SCHMID GmbH, a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, and Pegasus Digital Mobility Acquisition Corp. announced the completion of their business combination.
New Appointment Strengthens Ventec’s Value-Added Equipment Division
04/29/2024 | VentecVentec announces the appointment of Leigh Allinson as Commercial Director for its value-added PCB Equipment division 'Ventec Giga Solutions'.
Record Numbers of Exhibitors to Showcase Products and Services at EWPTE 2024
04/25/2024 | IPCWHMA/IPC announces that 215 exhibitors spanning over 50,000 nsf of exhibit space will introduce new product technologies, innovations and demonstrations of the electrical wire harness, wire, coil winding and cable processing industries’ newest advancements at Electrical Wire Processing Technology Expo (EWPTE) to be held at Baird Center May 14-16, 2024, in Milwaukee, Wis. This marks the largest number of exhibiting companies in the event’s history. More than 3,000 attendees are expected to attend this year’s event.