Internet of Things – IoT will be a multibillion-unit market by 2020, with applications ranging from wearables, gaming, fitness and medicine to industrials and transportation. However, unlike the current era of mobile devices, which has some standardization on the components side, IoT market evolution could be fragmented, with products / chips tailored to areas of usage.
The opening of software platforms over the past decade has enabled developers around the world to develop applications for mobile and other devices. The emergence of IoT devices could result in the open sourcing of hardware, as well (design/functionality iterations based on user feedback), which would drive innovation, competition and growth in the market.
While sensors will enable data collection in IoT devices, predictive analysis from collected data will be the real value-add for tech/industrial companies. For example, companies could analyze the data collected from an installed base of machines and perform simulations to provide “predictive maintenance.” Panelists agreed that selling hardware may just be the beginning of customer relationships in the IoT era, while follow-up engagement on software and services could bring about significant monetization opportunities.
Moreover, IoT can help transform the driving experience and the way we interact with cars, using various infotainment/connectivity functionalities. On the wearables side, smart watches, fitness bands and real-time health monitoring devices can be developed. Longer-term, IoT could enable new verticals like smart homes, smart appliances and smart entertainment.
Individuals’ privacy is a concern, given the breadth of data collected by IoT devices. While checks-and balances are necessary to protect users’ privacy, we believe that communicating with users about their collected data is also essential. Moreover, simulations and trend estimation should be carried out on sufficiently large samples of users to eliminate individual-specific elements from the results.