Internet proliferation has gone up at an astonishing rate in the last few years, and it is anticipated that by 2020, half of world’s population will have access to it. Increase in internet penetration around the world has created a great opportunity to connect objects and processes with each other and share information automatically. Billed as the next big thing in the world of information technology, the Internet of Everything (IoE) truly has the potential to transform every walk of our life.
Factors Driving the Global IoE Market
- Internet Proliferation
Increasing internet penetration around the world is anticipated to be the key factor driving the growth of the IoE market. It is projected that by 2020, over 1 Bn homes will be connected to the internet through Wi-Fi — this consumer base will create massive growth opportunities for the expansion of the IoE market.
- Innovation in manufacturing technology
Innovation in manufacturing technology is another key factor for the growth of IoE market. Reduction in sensor technology — which is fundamental to the IoE framework — is anticipated to augur well for making IoE cost-effective to the end-user. For example, the average sensor cost, which is approximately US$0.65 right now is projected to fall to US$ o.40 by 2020.
- Government initiatives
Governments around the world are looking for innovative and cost-effective ways to provide housing, education, and healthcare to their population. For example, the Ministry of Urban Development in India is working on its ambitious project to develop hundred smart cities in the near future. China has been working closely with U.K. to develop smart cities through Strategic Programme Fund. Canada and UAE have also announced their plans to invest heavily in creating smart cities. These trends are projected to provide an impetus to the IoE market in the next five years and contribute to the growth of the global IoE market.
- Focus on big data
Big data and IoE share a symbiotic relationship — growth in one sector will boost the prospects of the other. The adoption of IoE will create massive amount of data, and that data will need to be processed and analysed to get crucial insights. These insights will provide governments and businesses around the world actionable steps that can be implemented to innovate and make advancements to existing systems.
Inhibitors for the Global IoE Market
The potential risks associated with data security can be one of the biggest inhibitors to the growth of the global IoE market. For IoE to work effectively, the existing IT infrastructure will need to undergo major revamps. Businesses around the world will need to make substantial investments to upgrade their IT infrastructure and this can become a growth inhibitor. Other key challenges for the growth of the IoE market include regulatory challenges, perceived lower profit margins, and fear of job losses due to increasing automation.
Key Players in the Global IoE Market
The key stakeholders in the global IoE market can be broadly categorised into component providers, system integrators, consulting and outsourcing providers, telecom providers, and consumer electronics companies.
Prominent IoE component providers include Cisco Systems and Apple Inc., whereas the International Business Machines Corporation (IBM), CGI Group, and Wipro Limited are the major system integrators.
The major consulting and outsourcing companies in the global IoE market include Deloitte, Hewlett-Packard Company (HP), Computer Sciences Corporation (CSC), and Accenture plc. As far as key telecom providers in the global IoE market are concerned, Vodafone Group plc and Telefónica, S.A. are anticipated to dominate the market. Google and Samsung are the prominent consumer electronics companies in the IoE market and it is anticipated that they will benefit massively from the forecasted growth of the IoE market.
The global IoE market was estimated to be worth US$ 2.42 Bn in 2013 and according to our market research, it will witness a CAGR of 16.4% through 2020 and reach a valuation of US$ 7.13 Bn. Demand from the consumer and B2B manufacturing segment will be the key for the growth of this market.
Vertical Split of the IoE Market (2013)
North America & Asia Pacific Key Growth Regions
The North American market has been a key region not only for the growth of the IoE market, but also for the innovations that have taken place in this field. North America accounted for a share of over 50% in the global IoE market in 2013, and according to our projection, it will continue to remain a key region through 2020. Apart from North America, Asia Pacific and Western Europe are the other important regions for the global IoE market. It is anticipated that the Asia Pacific IoE market will witness a CAGR of over 18% through 2020.
IoE has been billed as the next big transformation that will have a profound impact on how we go about our daily lives. From cars that drive on their own to mattresses that monitor sleep patterns, IoE can truly make a positive impact on individuals, businesses, and governments. The future of IoE looks promising and that’s primarily the reason why some of the biggest companies in the world are rushing into the IoE.