The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.Learn More
Driven by the rising interconnectivity of digital devices and access to fast broadband, the Internet of Things (IoT) has the potential to transform traditional relationships between consumers and their environment. In essence, IoT signifies the capability to connect everyday devices and appliances, such as fridges, toothbrushes, thermostats and watches, to web-based networks. This integration opens up a number of new segments, ranging from data-analysis instruments for both businesses and consumers, to small-screen advertising, digital device updates and a variety of communications add-ons. However, IoT is only at present applicable to advanced markets, which have strong IT infrastructure, while infringes to consumer privacy are also a potential concern.
IoT has become the corporate buzzword of 2014 among digital businesses, driven by the sector’s potentially borderless opportunities. Trade sources forecast the IoT market to reach a global worth of US$7.1 trillion by 2020, and here are some reasons why:
While still not a mainstream proposition, IoT is a reality that the world’s digital giants have embraced:
At present, IoT is only a realistic possibility for advanced markets and some wealthy, urban hubs in emerging countries. Connected home devices and service platforms would only be able to operate within a strong connectivity environment, unimpeded by slow Internet speeds and state censorship concerns. In 2013, less than a third of the developed world population were regular Internet users, though this is set to rise to around one half by 2030.
With the global digital space having been hit by a number of scandals surrounding state and corporate infringements of privacy, as well as the ongoing fear of cybercrime attacks, there is considerable concern that more web-enabled devices will simply offer more ways to access consumer data illegally. Whether consumers would be willing to give up more privacy for convenience and connectivity is a major conundrum for the corporate world.