Posts tagged ‘Internet of Things’

Jun 25

Internet of Things, Machine Learning & Robotics Are High Priorities For Developers In 2016

56.4% of developers are building robotics apps today.
45% of developers say that Internet of Things (IoT) development is critical to their overall digital strategy.
27.4% of all developers are building apps in the cloud today.
24.7% are using machine learning for development projects.

These and many other insights are from the Evans Data Corporation Global Development Survey, Volume 1 (PDF, client access) published earlier this month. The methodology was based on interviews with developers actively creating new applications with the latest technologies. The Evans Data Corporation (EDC), International Panel of Developers, were sent invitations to participate and complete the survey online. 1,441 developers completed the survey globally. Please see page 17 of the study for additional details on the methodology.

Key takeaways from the study include the following:

Big Data analytics developers are spending the majority of their time creating Internet of Things (IoT). The second-most popular Big Data analytics applications are in professional, scientific and technical services (10%), telecommunications (10%), and manufacturing (non-computer related) (9.6%). The following graphic provides an overview of where Big Data analytics developers are investing their time building new applications.

Robotics (56.4%), Arts, Entertainment and Recreation (56.3%), and Automotive (52.9%) are the three most popular industries data mining app developers are focusing on today. Additional high priority industries include telecommunications (48.3%), Internet of Things (47.1%) and manufacturing (46.7%). A graphic from the study is shown below for reference.

Nearly one-third (27.4%) of all app developers globally are planning to build new apps on the cloud. 66.9% expect to have a new cloud app within 12 months. Overall, 81.3% of all developers surveyed are building cloud apps today. The following graphic compares developers’ predicted timeframes for cloud app development over the next two years.

Better security (51.9%), more reliability (42%) and better user experience (41%) are the top three areas that motivate developers to move to new cloud platforms. Additional considerations include a better breadth of services (39.4%), networking and data center speed (37.8%), better pricing options (37.5%), better licensing structures (34.6%) and completeness of vision (30.9%). The following graphic compares the key factors that most motivate developers to switch cloud platforms.

45% of developers say that Internet of Things (IoT) development is very important to their overall digital strategy. 7% say that IoT is somewhat important to their digital strategy. The study also found that 29.5% of all developers are creating Internet of Things (IoT) apps today. The following graphic illustrates the relative level of importance of IoT to developers’ digital strategies.

41% say that cognitive computing and artificial intelligence (AI) are very important to their digital strategies. In speaking with senior executives at services firms, the opportunity to provide artificial intelligence-based services using a subscription model is gaining momentum, with many beginning to fund development projects to accomplish this on a global scale.

Most frequently created machine learning apps include those for the Internet of Things (11.4%), Professional, Scientific and Technical Services (10%), and Manufacturing (9.4%) industries. Additional industries include telecommunications (8.3%), utilities/energy (8.1%), robotics (7.2%) and finance or insurance (6.8%). The following graphic breaks out the industries where machine learning app development is happening today.

The majority of developers (84.2%) say that analytics is important for enabling their organizations to operate today. Of that group, 45.7% say that analytics are very important for their organizations to attain their goals.

Jan 3

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Roundup Of Internet of Things Forecasts And Market Estimates, 2015

Cisco predicts the global IoT market will be $14.4T by 2022.
IC Insights predicts revenue from Industrial Internet IoT spending will increase from $6.4B in 2012 to $12.4B in 2015.
IoT in manufacturing market size is estimated to grow from $4.11B in 2015 to $13.49B by 2020, attaining a CAGR of 26.9%.

With the potential to streamline and deliver greater time and cost savings to a broad spectrum of enterprise tasks, opportunities for Internet of Things (IoT) adoption are proliferating. It’s encouraging to see so many industry-leading manufacturers, service providers, software and systems developers getting down to the hard work of making the vision IoT investments pay off.

Forecasting methodologies shifted in 2015 from the purely theoretical to being more anchored in early adoption performance gains. Gil Press wrote an excellent post on this topic Internet of Things By The Numbers: Market Estimates And Forecasts which continues to be a useful reference for market data and insights, as does his recent post, Internet Of Things (IoT) News Roundup: Onwards And Upwards To 30 Billion Connected Things.

Key takeaways from the collection of IoT forecasts and market estimates include the following:

IoT-related value-added services are forecast to grow from $50B in 2012 to $120B in 2018, attaining a 15.71% CAGR in the forecast period. ABI Research’s forecast of the Machine-to-Machine (M2M)/Internet of Things value chain includes projected revenues and is part of an excellent analysis of the market by Woodside Capital Partners. Source: The Internet Of Things: “Smart” Products Demand a Smart Strategy Using M&A for a Competitive Edge (PDF, no opt-in, 101 pp.).

Cisco predicts the global Internet of Things market will be $14.4 trillion by 2022, with the majority invested in improving customer experiences. Additional areas of investment including reducing the time-to-market ($3T), improving supply chain and logistics ($2.7T), cost reduction strategies ($2.5T) and increasing employee productivity ($2.5T). The cited infographic also found that 50% of IoT activity today is in manufacturing, transformation, smart cities and consumer markets. Sources: Oracle Infographic: Energize Your Business with IoT Enabled Applications; Cisco, Embracing the Internet of Everything to Capture Your Share of $14.4 Trillion, 2014.

Cisco predicts the global IoT market will be $14.4T by 2022. Industry-specific use cases will generate $9.5T (66%) including smart grid, connected personal vehicles. Cross-industry use cases will generate $4.9T (34%) including future of work initiatives (telecommuting and collaboration technologies), and travel avoidance. Source: Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion, white paper published by Cisco.

Software and services will be a $600B market by 2019, attaining a 44% CAGR from 2015 to 2019. BI Intelligence also predicts the number of devices connected via IoT technology will grow at a 35% CAGR from 2014 to 2019. Source: Business Insider, The Internet of Everything, 2015 Slide Presentation.

IC Insights predicts revenue from Industrial Internet of Things spending will increase from $6.4B in 2012 to $12.4B in 2015, attaining a 17.98% CAGR. IC Insights predicts the Industrial Internet will lead all five categories of its forecast, with Connected Cities being the second-most lucrative, attaining a 13.16% CAGR in the forecast period. The research firm segments the industry into five IoT market categories: connected homes, connected vehicles, wearable systems, industrial Internet, and connected cities. Source: IC Insights Raises Growth Forecast for IoT.

Manufacturing (27%), retail trade (11%), information services (9%), and finance and insurance (9%) are the four industries that comprise more than half the total value of the projected $14.4T market. The remaining 14 industries range between 7% percent and 1%. The following graphic based on Cisco’s analysis of the IoT market potential by industry and degree of impact. Cisco predicts Smart Factories will contribute $1.95T of the total value at stake by 2022. Source: Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion, white paper published by Cisco.

Intel Capital, Qualcomm Ventures, Foundry Group, Kleiner Perkins Caufield & Byers (KPCB), Andreessen Horowitz, Khosla Ventures, True Ventures and Cisco Investments are the leading IoT investors this year. Intel Capital is investing in a broad base of IoT-related technologies, encompassing 3D body-scanning and biometric sensors, wearable sand IoT infrastructure startups. Source: The Most Active VCs In The Internet Of Things And Their Investments In One Infographic.

Vodafones latest Machine-to-Machine (M2M) study found that 37% of enterprises have projects targeted to go live in 2017. Vodafone defines M2M as technologies that connect machines, devices, and objects to the Internet, turning them into ‘intelligent’ assets that can communicate. M2M enables the Internet of Things. The following graphics compare M2M adoption trends from 2013 and 2015 and by industry. Source: 2015 Vodafone M2M Barometer Report (free, opt-in reqd., 36 pp.).

The number of connected devices is projected to grow from 22.9B in 2016 to 50.1B by 2020, attaining a 21.62% CAGR in four years. Source: World Economic Forum, Is this the future of the Internet of Things?, November 27, 2015

growth iot; Internet of Things market forecast

New connections to the Internet of Things (IoT) will grow from about 1.7B in 2015 to nearly 3.1B in 2019. IoT applications will also fuel strong sales growth in optoelectronics, sensors/actuators, and discrete semiconductors, which are projected to reach $11.6B in 2019, attaining a CAGR of 26% during the forecast period. Source: IC Insights Internet of Things Market to Nearly Double by 2019.

The worldwide revenue opportunity for IoT in manufacturing will grow from $472B in 2014 to $913B in 2018, attaining a 17.93% CAGR. Worldwide revenue will increase from $2.29B in 2014 t0 $4.59B in 2018, attaining an 18.99% CAGR. Source: Webinar: Internet of Things: Creating Business Value In Manufacturing.

McKinsey estimates the potential economic impact of IoT in 2025 including consumer surplus is $3.9T to $11.1T trillion. Source: The Internet of Things: Mapping the Value Beyond The Hype, June, 2015. McKinsey Global Institute.

The IoT market revenue will grow from $1.928B in 2013 to 7.065B in 2020. IDC predicts that the installed base of IoT units will grow at a Compound Annual Growth Rate (CAGR) of 17.5% from 2013 to 2020, reaching 28.1 billion units in the forecast period. Source: Worldwide and Regional Internet of Things (IoT) 2014–2020 Forecast: A Virtuous Circle of Proven Value and Demand Internet of Things.

IDC predicts that by 2018, 40% of the top 100 discrete manufacturers will rely on connected products to provide product as a service. 55% of discrete manufacturers are researching, piloting, or in production with IoT initiatives. By 2017, 50% of manufacturers will explore the viability of micrologistics networks to enable the promise of accelerated delivery for select products and customers. 65% of companies with more than ten plants will enable workers on the factory floor to make better business decisions through investments in operational intelligence. Source: IDC Manufacturing Insights Report courtesy of Cognizant, Transforming Manufacturing with the Internet of Things May 2015

Global commercial building automation systems will grow from $58B in 2013 to $101B in 2021, attaining a 7.18% CAGR in the forecast period. Source: Intel Brief: Smarter Buildings & Homes With The Internet Of Things (PDF, no opt-in, 12 pp.).

IoT in manufacturing market size is estimated to grow from $4.11B in 2015 to $13.49B by 2020, attaining a CAGR of 26.9%. Near Field Communication (NFC) technologies is estimated to grow at the highest CAGR during the forecast period due to a decrease in hardware costs. Managed service is expected to grow at the highest rate between 2015 and 2020. Asia-Pacific (APAC) is projected to witness fastest growth rate among regions. Source: Internet of Things (IoT) in Manufacturing Market by Software, Application, Platform, Service, & by Vertical – Global Forecast to 2020.

Verizon has seen a 45% year-over-year revenue growth in their IoT business in 2014, with 4G LTE activations growing by 135%. Verizon’s data also shows 49% year-over-year growth in the number of IoT connections in the energy and utilities Verizon data also shows 204% year-over-year growth in the number of IoT connections in the manufacturing sector. Source: State of the Market: The Internet of Things 2015: Discover how IoT is transforming business results.

Worldwide spending on the Internet of Things (IoT) will grow at a 17% compound annual growth rate (CAGR) from $698.6B in 2015 to nearly $1.3T in 2019. Manufacturing and Transportation led the way in worldwide IoT spending with 2015 totals of $165.6B and $78.7B, respectively according to IDC’s latest Worldwide Semiannual Internet of Things Spending Guide. Source: Internet of Things Spending Forecast to Reach Nearly $1.3 Trillion in 2019 Led by Widespread Initiatives and Outlays Across Asia/Pacific.

Nov 14

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5 Insights & Predictions On Disruptive Tech From KPMG’s 2015 Global Innovation Survey

15% of U.S. tech leaders see biotech/digital health/healthcare IT as the most disruptive consumer-driven technology in the next three years.
13% of U.S. tech leaders predict data and analytics will be the most disruptive enterprise technology in three years.
Global tech leaders predict cloud computing (11%), mobile platforms and apps (9%), Internet of Things (IoT)/machine-to-machine (M2M) (9%) and data and analytics (9%) will be the most disruptive technologies over the next three years.

These and many other insights are from the fourth annual 2015 Global Technology Innovation Survey released via webcast by KPMG last month. KPMG surveyed 832 technology industry business leaders globally, with the majority of being C-level executives (87%). Respondents were selected from a broad spectrum of businesses including tech industry startups, mid- and large-scale enterprises, angel investors and venture capital firms. For an in-depth explanation of the survey methodology, please see slides 6 and 7 of the webinar presentation. The goals of the survey include spotting disruptive technologies, identifying tech innovation barriers and opportunities, and tracking emerging tech innovation hubs.

The five insights and predictions from the report include the following:

Global tech leaders predict cloud computing (11%), mobile platforms and apps (9%), Internet of Things (IoT)/M2M (9%) and data and analytics (9%) will be the most disruptive technologies over the next three years. U.S. tech leaders predict biotech/digital health/healthcare IT (15%), data and analytics (14%) and cloud computing (14%) will be the three most disruptive technologies over the next three years. Chinese tech leaders predict artificial intelligence/cognitive computing (15%) will be the most disruptive technology impacting the global business-to-consumer (B2C) marketplace.

The three most disruptive technologies predicted to drive business transformation in enterprises over the next three years in the U.S. include cloud computing (13%), data and analytics (13%), and cyber security (10%). Japanese tech leaders predict artificial intelligence/cognitive computing will have the greatest effect (23%), and 14% of Chinese tech leaders predict the Internet of Things/M2M (14%) will have the greatest impact on business transformation in their country. The following table compares global tech leader’s predictions of which technologies will disrupt enterprises the most and drive business transformation over the next three years.

Improving business efficiencies/higher productivity, and faster innovation cycles (both 20%) are top benefits tech leaders globally are pursuing with IoT strategies. The point was made on the webinar that in Asia, consumers are driving greater adoption of IoT-based devices to a richer contextual customer experience. Greatest challenges globally to adopting IoT is technology complexity (22%), lack of experience in the new technology or business model (16%), and both displacement of the existing tech roadmap and security (both 13%).

Analytics are most often adopted to gain faster innovation cycles (25%), improved business efficiencies and higher productivity (17%) and more effective R&D (13%). The greatest challenges are technology complexity (20%) and lack of experience in the new technology or business model (19%),

Tech leaders predict the greatest potential revenue growth for IoT in the next three years is in consumer and retail markets (22%). IoT/M2M is also expected to see significant revenue growth in technology industries (13%), aerospace and defense (10%), and education (9%). The following graphic compares tech leader’s predictions of the industries with the greatest potential revenue growth (or monetization potential) in the next three years.