2015 will be the year where the growth of the Internet of Things (IoT) outpaces the growth of the Internet itself. This may seem like a bold claim to some, but based on the growth of the IoT in 2014, this could actually be understated. In fact, even the trends that IoT bucked in 2014 illustrate the potential for the market’s growth in 2015.
For example, the hype around IoT has been building for years, and 2014 was the year where that hype peaked. Back in August, Gartner published its latest technology hype cycle for ‘emerging technologies’ placing the IoT at the absolute pinnacle of inflated expectations. But rather than experiencing the traditional dip that comes after a technology reaches the peak of its hype, IoT has accelerated instead of tapering off.
Just two years ago, analysts at Gartner suggested that IoT would take more than a decade to get past the hype, to the point where its expectations were met. This year the crystal ball gazers have suggested it will reach maturity in as little as half that time. That improved outlook is due in large part to the growth of real-life IoT successes that the industry saw in 2014.
Source: Gartner http://www.gartner.com/newsroom/id/2819918
Gartner is not alone in foreseeing a relatively immediate and bright future for the IoT. IDC’s numbers show that the growth of IoT and IoT components are accelerating at staggering rates. In December 2014, IDC suggested that within three years, half of IT networks will go from having a network capacity surplus to being network constrained, and 10% of sites will be overwhelmed.
As the leading IoT platform worldwide, Jasper has been in a unique position to witness the evolution of this market. And what we’ve seen over the past decade is thousands of enterprises across dozens of industries that have invested in IoT to evolve their business to meet the demands of today’s connected consumers.
These first-movers see what we see, that soon every business will be an IoT business. Among those who are coming late to the party, much of the cause for delay stems from the belief that becoming an IoT business requires a massive shift in their focus. The fact of the matter, however, is that IoT will not change the business they are in – but it will change the way they do business.
For companies that previously focused only on selling products, IoT will enable them to provide those products with connectivity, opening up opportunities to deliver ongoing services to their customers, and opening up new revenue channels.
For example, let’s look at the automotive industry. Historically, when you purchased a vehicle and drove off the lot, the manufacturer would not interact with you again until it was time to buy your next vehicle, which on average is four to six years later.
Today, the auto industry is integrating IoT into their vehicles in record numbers, giving rise to the “Connected Car” market. Doing so enables manufacturers to offer new, value-added services to vehicle owners – including streaming entertainment, safety & security services and much more – which establishes an ongoing relationship with those consumers and creates opportunities for the OEM to continue to deliver new experiences and capabilities throughout the lifecycle of the vehicle.
This also opens up recurring revenue streams for the manufacturer. And the auto industry is just one of dozens of industries that are already using IoT to evolve from products businesses to service businesses.
Ultimately, every business in every industry will become an IoT-enabled business. Some of IoT’s consumer applications, like the Smart Home, command an unfair share of the IoT limelight. But IoT is not a niche play. The impact of IoT is already being felt in meaningful ways on a global scale across categories as diverse as agriculture, healthcare, transportation, utilities and many more.
And many of these industries have been deploying IoT solutions for more than five years already, resulting in years of data that illustrate the positive impact of IoT on their business.
In fact, enterprises of all types are embracing IoT so quickly that IDC predicts that within five years, every single vertical industry will have some form of IoT initiative. 2014 highlighted this acceleration of IoT deployments in new industries, with thousands of companies across many varied industries successfully implementing IoT technology and strategies, and delivering real business results.
This has resulted in myriad real-world IoT implementations that are far exceeding expectations, and that illustrate the actual benefits that real businesses are achieving.
Based on the momentum of 2014’s massive IoT deployments, we believe that 2015 will be the year where the IoT conversation expands to more categories, which will make current popular IoT categories, like Smart Home, a smaller piece of an ever-increasing pie.
As a result, 2015 will be the breakout year for IoT where more enterprises see evidence of how IoT can change their business and their industry, and join the movement.