There are many industries being transformed by the Internet of Things (IoT) – a network of physical objects – devices, vehicles and buildings – embedded with electronics, software, sensors and network connectivity that enables these objects to collect and exchange data.
Businesses in almost every industry throughout the world are realizing how they can leverage IoT devices to lower operating costs, increase productivity, expand to new markets and develop new product offerings.
Oil, gas and mining:
We estimate 5.4 million IoT devices will be used on oil extraction sites by 2020. The devices will primarily be internet-connected sensors used to provide environmental metrics about extraction sites.
We estimate that IoT devices shipped for agricultural uses will grow at a 20% CAGR to reach 70 million devices in 2020. These devices are primary sensors placed in soil to track acidity levels; temperature and variables that help farmers increase crop yields.
Energy companies throughout the world are trying to meet rising demand in energy. To do this, they will be installing nearly 1 billion smart meters by 2020.
Beacons, paired with mobile apps, are being used in stores to monitor customer behavior and push advertisements to customers. In the US, we estimate $44.4 billion will be generated from beacon-triggered messages.
35% of manufacturers already use smart sensors. 10% plan to implement them within a year and 8% plan to implement them within three years.
74% of insurance executives said they believe the IoT will disrupt insurance within the next five years and 54% plan to invest in developing and implementing IoT strategies by 2016.
We estimate food services companies will use 310 million IoT devices by 2020. The majority of these devices will be digital signs connected throughout grocery stores and fast-food companies.
We estimate 646 million IoT devices will be used for healthcare by 2020. Connected healthcare devices can collect data and automate processes. But these devices can also be hacked, thereby posing a threat to the patients who rely on them.
These 8 industries have successfully started transforming themselves by using these connected devices to provide better efficiencies or greater controls. Over the next five years, we expect enterprise investments in IoT solutions to total over $3 trillion. Those investments are expected to generate nearly $8 trillion ROI by 2020.