Companies struggling to benefit from Internet of Things

Author Moonshot.news

Published on: 30/11/2021

The Internet of Things (IoT) – the convergence of the digital and physical world – could by 2030 be worth between USD 5.5 trillion and USD 12.6 trillion globally. Capturing this value, however, depends largely on establishing interoperability and easing cybersecurity concerns. Many enterprises have struggled to transition from pilots to capture value at scale successfully, according to a study from consultancy McKinsey.

The report estimates that the total value captured by 2020 (USD 1.6 trillion), is in the lower end of the range of scenarios mapped out in 2015.

The COVID-19 crisis is serving as a catalyst for the deployment of IoT solutions in specific areas as the world grapples with managing the pandemic and enabling a faster and safer return, the report says.Play Video

• The potential economic value that the IoT could unlock is large and growing. By 2030, it could enable USD 5.5 trillion to USD 12.6 trillion in value globally, including the value captured by consumers and customers of IoT products and services.
• The IoT’s economic-value potential is concentrated in certain settings (types of physical environments where IoT is deployed). The factory setting, which includes standardized production environments in manufacturing, hospitals, and other areas, will account for the largest amount of potential economic value from the IoT, around 26 %, in 2030.
• The human-health setting is second, representing around 10 to 14% of estimated IoT economic value in 2030.
• B2B applications are where the majority of IoT value can be created, with around 65% of the estimated IoT value potential by 2030. But the value of B2C applications is growing quickly, spurred by faster-than-expected adoption of IoT solutions within the home.
• The 2030 IoT economic-value potential of the developed world will account for 55% of the global total, decreasing from 61% in 2020. China is becoming a global IoT force as not only a manufacturing hub and technology supplier but also an end market for value creation.
• The human-health setting involves applications that are deployed in and affect the human body. IoT economic impact in the human-health setting could reach around 14% of the total, or between USD 0.5 trillion and USD 1.8 trillion, by 2030.
• Over the past five years, the perceived value of IoT solutions within healthcare has increased. From connected glucose and heart monitors for patients with chronic diseases to mass-market solutions that monitor physical activity, consumer awareness has grown significantly. IoT solutions are not only being used by individual customers but also being provided by some insurers and governments as a way to improve health and patient outcomes.
• The COVID-19 pandemic has potentially accelerated the use of IoT solutions in healthcare.