Internet of Things Heralds New IT Services Opportunities in 2016

Estimated reading time: 8 minutes

The Internet of Things (IoT) market is one of the fastest growing segments in the Asia Pacific technology industry. The total Asia Pacific spending on IoT spending is forecasted to be US$79 billion by 2020. This offers real opportunities, especially in areas of transportation, logistics, manufacturing and consumer technology, which are expected to be fast growing segments over the next three years.

The Internet of Things market is evolving from one where the focus is on connecting of devices to one of using the information collected to create new services and business models. This is fundamentally changing the way companies market their products and services.

"With IoT, companies are moving from transactional product sales to a longer term relationship and service model, where everything can be offered as a service or 'servicetization of industries'. As IoT moves from consumer and enterprise centric applications to vertical/ industrial applications, the potential growth of IoT is expected to exponentially grow over the next 5 years," noted Mark Koh, Senior Industry Analyst, ICT, Frost & Sullivan, Asia Pacific.

2016: Cyber Security Outlook

Cyber security has become one of the hottest topics now, not only among enterprises, but also government organizations due to the physical consequences. The spending in cybersecurity, as such, is expected to grow fast in the upcoming years, especially the spending on security solutions to protect critical infrastructure and ICS systems. Investment in solutions and services to defend against advanced malware, advanced persistent threat, targeted attacks or DDoS attacks is also poised to increase significantly in the upcoming year.

In particular, the Industrial Control System Security market is forecast to grow rapidly at a CAGR of 45.2% from 2015-2020, reaching revenues of US$1.5 billion at the end of the forecast period. The importance placed on ICS security by governments in the APAC region is the key driving force for the strong growth.

The need to have the capability to manage risks to enable comprehensive security policy throughout organizations is driving enterprises and organizations to invest more in advanced security solutions, expertise as well as threat intelligence. Enterprises are increasingly taking a more proactive approach towards cybersecurity to be able to stay ahead of any potential risks, enhancing their holistic defense strategy.

"Adopting an eco-system approach toward security will not only allow enterprises to have the capability to prevent, detect and remediate the threats using technology tools, but also help them build a strong capability of management of both internal and external threats with suitable governance process," noted Edison Yu, Director, ICT, Frost & Sullivan, Asia Pacific.

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