A recent report on Internet of Things (IoT) market and suggestions for enterprise CIOs by Gartner says connected things will grow 30 percent to 4.9 billion in 2015 from 2014, and will reach 25 billion by 2020.
Suggestions for CIOs
“CIOs must understand that the most disruptive impact and competitive threats — and, equally, the greatest competitive opportunities — arise not from simply digitalizing a product or service, but from creating a new business model and value proposition,” said Steve Prentice, vice president and Gartner Fellow.
ALSO READ: Internet of Things: 5 tips to monetize
IT leaders will have to accommodate the differences in technologies across those areas and develop a multifaceted technology approach to IoT risk and security. With some machines producing enormous amounts of data and other sensors sending a handful of bits per day or week, IT leaders will need to balance digital business requirements with digital security realities.
The number of connected intelligent devices will grow exponentially, giving smart things the ability to sense, interpret, communicate and negotiate, and effectively have a digital voice, said Gartner.
Enterprise CIOs must look for opportunities to create new services, usage scenarios and business models based on this growth.
“The digital shift instigated by the cloud, mobile, social and information, and boosted by IoT, threatens many existing businesses. They have no choice but to pursue IoT, like they’ve done with the consumerization of IT,” said Jim Tully, vice president and distinguished analyst at Gartner.
IoT will support total services spending of $69.5 billion in 2015 and $263 billion by 2020 reflecting the usage of IoT by consumers, businesses, city authorities, hospitals and many others.
There will be 2.9 billion connected things in use in the consumer sector in 2015 and will reach over 13 billion in 2020. The automotive sector will show the highest growth rate at 96 percent in 2015.
Manufacturing, utilities and transportation will be the top three verticals using IoT in 2015 – all together they will have 736 million connected things in use.
By 2020, the ranking will change with utilities in the No. 1 spot, manufacturing will be second and government will be third, totaling 1.7 billion IoT units installed. Government will take the No. 3 spot as it invests in smart street and area lighting for energy saving reasons. Utilities will move to the No. 1 position because of investment in smart meters.
By the end of 2017, over 20 percent of organizations will have digital security services devoted to protecting business initiatives using devices and services in IoT.
The IoT will bring into the digital security architecture dozens of new platform options, hundreds of variations on hybrid IT/IoT integration, new standards per industry, and a new view of an application.