10 Compelling Reasons to Invest in IoT

The Internet of Things is already a major economic engine and its impact will only grow. Investors and entrepreneurs looking to capitalize on this revolution have plenty of excellent reasons to do so. Here are the ten best reasons to invest now.

1: Market Growth

There are plenty of predictions for IoT market growth, but regardless of the differences in opinion everyone agrees on one thing: the market is exploding.

Average predictions for the global market for IoT will expand from around $150 billion we saw in 2016 to approximately $450 billion in 2020. This phenomenal growth rate will be driven by discrete manufacturing, transportation and logistics, and Utilities with around $40B in annual spending each by 2020.

B2B IoT sales will be the single largest driver with around $300B in revenue by 2020. This projection, by Bain Capital, is in line with other projections.

2: Industry Revolutions

Many industries are now starting to integrate smart solutions to increase productivity, reduce error, and foster better decision quality. Agriculture, automotive, and infrastructure industries are helping drive this change. While security and scalability remain a challenge, the proliferation of low cost equipment increases the attractiveness for large companies who were unwilling to spend a lot of capital on this area before.

3: Availability of IoT Equipment

Low cost sensors, wireless chips, and other ingredients necessary for IoT devices are being produced in record numbers driving down their per-unit cost. Industry analyst Gartner predicts that there will be 20.8 billion IoT devices in operation by 2020.

4: Increase in IoT Device Computational Power

IoT devices are benefitting from Moore's Law which states that the number of transistors in an integrated circuit doubles approximately every 2 years. Gordon Moore made this observation in 1975 and it has been somewhat accurate ever since. There may be a ceiling to this, and other technologies like quantum computing may alter this growth in unknown ways, but it is important for companies to understand this growth in power when making critical investments.

5: Increase in Network Capacity and Speed

IoT devices are going to be among the biggest recipients of upcoming 5G networks. Qualcomm, the industry leader in wireless chip production, showed that simulated 5G network speeds went from 71 Mbps for LTE to 1.4 Gbps for 5G with response times being 23 times faster. A network this powerful is necessary to make the interconnectedness of IoT devices even more useful.

6: Advancements in AI

AI is becoming commercially viable and is already impacting almost every industry. IBM has integrated their premier Watson AI with IoT solutions. Watson IoT cognitive abilities promise to unlock new value for customers in utilities, industry, transportation, and infrastructure. Watson IoT can be harnessed to develop custom solutions for particular business needs. Other large technology companies are bringing AI to IoT as well.

AI and IoT is a powerful combination that will change the world

7: The Consumer Market

Up until now we have focused on business uses for IoT as a factor for increasing investment. The consumer market should not be ignored, however. The explosive growth of IoT solutions for consumers in the area of home automation and transportation impacts everyone from home builders, automotive manufacturers, consumer technology firms, and wireless carriers. The coalescing of standards and the advancement of consumer platforms are making them more attractive for buyers.

8: Social and Ecological Transformation in Developing Countries

As low cost IoT devices flourish and cell phones become more prevalent in developing nations, they give impoverished citizens of those nations vital information about their health. The WHO has identified the lack of basic knowledge and awareness as a chief roadblock to improving healthcare.

Engineers are utilizing IoT devices to monitor water distribution projects in these countries as the lack of a dependable source of drinking water affects up to 1.8 billion people.

9: Education

The digital divide between the rich and the poor is finally starting to decrease thanks to IoT and related technologies. World governments are beginning to realize this and will most likely increase spending in technology as it relates to education which will have a huge impact on IoT investment. Remote learning will become the dominant method in the coming years.

10: Investment in IoT is Easier than Ever

There was a time when companies were worried about the lack of high skilled workers and how it would impact their growth. This concern, while still present, has dramatically decreased thanks to IoT technology. It is easier than ever for companies to hire qualified people to design and deploy intelligent systems to increase profit and productivity. This simplicity will also filter down to small and medium size businesses who would never contemplate such a move before.

Tags: IoT   investment  

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