Lead IoT Expert , IDATE DigiWorld
Although the Internet of Things is a powerful concept, it is not necessarily a market in and of itself. IoT encompasses a very disparate array of fields that need to be examined separately, to obtain an accurate understanding of their particular features, and their true growth potential.
More operationally, beyond cost savings opportunities (mainly through various internal optimisations), with more and more connected objects, new services will emerge – chiefly through the connectivity itself (remote control applications), but also via the data generated by the machines. Leading industrial heavyweights already have their own data-oriented department.
On the industrial side, two approaches can be distinguished: traditional machine-to-machine and the ‘industrial internet’: the latter referring to an interconnected ecosystem and the former to a more siloed approach. In the main, the creation of value in the industrial Internet lies in data collection and analysis. The main question then for market players is how to collect data and analyse them, to then generate revenue. The bulk of M2M revenue should come from software and IT integration as primary applications, with the aim of enabling massive savings within verticals. Consequently, all providers are working on delivering an end-to-end solution with a strong service bent – even if this might require acquisitions for some verticals.
Applied to the consumer world, the Internet of Things (IoT) refers to smart home and connected objects in general, relatively new markets that are starting to take off. Even if questions are being raised over the sustainability of their adoption. The main reason is the lack of services attached to these objects, apart from remote use, through a mobile app. Many applications would be based on data generated by those things. However, unlike the industrial market, data privacy is a major concern here as it involves consumers’ approval. The blurred lines around privacy regulation have made all of the ecosystem’s players reluctant to provide consumer market solutions. Another hurdle is to determine what value-added comes from connecting these objects, and how to monetise the data they generate: will all objects be connected? Will all data be valuable? If so, how valuable?
DELVE DEEPER WITH THE FOLLOWING IDATE DIGIWORLD MARKET REPORTS
• Smart Home, A promising market, taking off slowly, Dec. 2015