According to data from IHS Markit, a company specializing in market analysis, there are already 20 billion devices connected to the network worldwide. They generate a huge amount of data, which can be quite a challenge. In 2018, companies will primarily have to face the challenge of ensuring an appropriate level of security and privacy related to all technology connected to the Internet of Things. What will have the greatest impact on the Internet of Things phenomenon this year?
Paweł Kacperek, IoT Poland Show, independent Internet of Things expert:
The industry dictates the conditions for the pace of IoT development. Despite the fact that more and more devices are being connected to the network every year, each industry has its own specifics. The degree of implementation of Internet of Things solutions is largely dependent on the business profile of a given company. We will most likely be able to observe the most IoT applications in companies dealing with automotive, transport, retail, or manufacturing, including supply chain management, but also in medical companies. For example, retailers will want to use the potential of the Internet of Things to reach customers even more easily, and also to make the entire purchasing process more personal for each of them. The development of the Connected Care sector, on the other hand, will lead to a proliferation of solutions using connected sensors that monitor individual body processes. We also cannot ignore intelligent production lines, packed with sensors that optimize individual stages of production operation and allow for ongoing monitoring of the progress of activities.
The industry will be even more fragmented. The development of the “Everything as a Service” model, which consists of providing the customer with a specific, purchased service operating in the cloud computing model on a subscription basis, means an increase in data fragmentation. This will be a challenge for many organizations that will face the necessity of organizing, and perhaps also reorganizing, processes and the technology used. Companies will have to attach greater importance to data quality and security, which will, however, translate into the value of analyses created on their basis and will allow them to use them to achieve a clear market advantage.
Security will be a priority. The more data generated, the more challenges related to its security. Securing all devices connected to the network will be difficult, so finding a solution that ensures data security will be one of the main goals of enterprises for 2018. Companies will also have to ensure adequate protection of information, including personal data. The consequences of failing to adapt the company’s policy to the GDPR regulation, which will enter into force on May 28, 2018, can be very severe. The announced penalties reach up to 20 million euros, or 4% of the company’s global annual turnover. Steps taken well in advance will allow you to wait calmly for the spring directive and focus on key activities.
Mobile platforms will play an even greater role. In 2018, the trend of shifting from the mobile-first concept to mobile-only will intensify, which will cause the scale of managing systems and devices connected to the Internet to move to mobile devices. This trend can be seen, for example, in wearable devices used in sports and daily activities, but also in the case of smart bands monitoring health and applications helping to control the home, office, or household appliances. Starting a car from a smartphone is also becoming less and less unusual.
Marketing will be personalized. More and more companies will use the Internet of Things for even more personalized marketing activities. Customers will still be notified about attractive offers, but the market will mature. Marketing companies will be closer to finding a balance. The presentation of their offers will take place in a more balanced and accessible way, using, for example, beacons scattered around stores. For many customers, the physical shopping experience is still very important, and in this field, companies that recognize the potential of “connecting” their retail space to the network have a chance for success.
The use of advanced analytics and management solutions will increase. The increase in the amount of data will force companies to use artificial intelligence and machine learning technology. This will be due to the fact that the amount of data created by IoT will simply be too large for humans to manage on their own. SAS, SAP, or Teradata are examples of companies that have been operating in the advanced analytics market for some time, enabling data monetization and optimization for businesses in various industries. In addition to analytics itself, it will also be necessary to implement Internet of Things platforms used to collect data and manage the increasing number of devices connected to them. Telit, for example, has them in its offer. The development of the “connected world” will lead to the emergence of new enterprises dealing with IoT, artificial intelligence, or machine learning technology. It is possible that it is among them that the next unicorns will appear, which will revolutionize the market.
The market value will increase. According to data from the research firm MarketsandMarkets, the Internet of Things market will reach a value of 640 billion dollars by 2022, recording an increase of over 25% compared to 2017. IoT technology is undoubtedly already revolutionizing many industries, and the scale of these activities will only increase.