This article is most relevant for manufacturing sector. Internet of Things (IoT) is a fast and emerging ecosystem of IP-connected devices with a potential to deliver $14.4 trillion value across leading industries by 2020. Research shows that by 2020 there will be 25 billion things connected through internet, as compared to 4.9 billion things in 2015.
- IoT is the concept of connecting any device (thing) with a toggle switch to the internet.
- Research shows that by 2018, 70 percent of manufacturing companies will adopt IoT.
- IoT adoption in manufacturing industry is expected to grow at a CAGR of 20 percent from 2015 to 2019. Manufacturing sector is leading in IoT adoption and is expected to contribute 16 percent of total IoT’s revenue by 2019. Total IoT investment from manufacturing sector is predicted to reach $140 billion by 2019.
- Research indicates that companies in manufacturing sector are expected to be the biggest beneficiaries by adopting IoT, with an estimated average increase in revenue of 28.5 percent in 2015.
Increasing adoption of IoT in manufacturing sector
- There was a 40 percent increase in IoT adoption between 2010 and 2015. Prevailing factors for significant increase in IoT adoption are: cost saving, improved productivity, supply chain integration and proactive maintenance and decision making.