Internet of Things Opportunity in 4 Different Industry Sectors
The Internet of Things is the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment and the confluence of efficient wireless protocols, improved sensors, cheaper processors, and a bevy of startups and established companies developing the necessary management and application software has finally made the concept of the Internet of Things mainstream.
According to industry analyst firm IDC, the installed base for the Internet of Things will grow to approximately 212 Billion devices by 2020. It also includes 30 Billion connected devices. IDC sees this growth driven largely by intelligent system that will be installed and collecting data across both consumer and enterprise application.
The cross Industry IoT Opportunity surveys that 61% of Organizations are actively pursuing IoT initiatives. The number keeps increasing with the Internet of Things functionality that’s improved. Top IoT drivers are:
- Lower Operational Costs
- Better customer service and support
- customer acquisition/retention
- Business process efficiency
- Product/service improvement and innovation
As the top barrier of Internet of Things is data security concern. Security is an important thing when it comes to Internet of Things. It doesn’t stop Many Industry sectors to invest in Internet of Things. See the example of different sectors here based on Global technology and Industry Research:
Internet of Things adoption in retail reached 60% by 2015 and approximately keeps growing in the end of 2016. 60% of retail are actively pursuing IoT initiatives. Top drivers for retail implementing IoT are better customer service and support. Which is an important thing to enhance the shopping experience of a customer.
Other than that, customer acquisition is also one of the top drivers. Customer acquisition increases the retail services and manage their customers in easy way as possible. As the barrier in retail sector is the funding of initial investment which will take a lot money and energy.
Utilities industry as in manufacturer is the right place if you need to implement Internet of Things. It includes many manufacturing system that will be easier when Internet of Things is implemented. Which is why the Internet of Things adoption in utility sector is 71%.
As the top drivers are better customer service and lower operational cost. Everything that is mostly done manually can be completely switched to automatic system that will be faster in time and saver in cost. But the barrier of IoT adoption in utilities is pretty high up to 49% and most of it is about the development of Business model.
63% of insurance respondents are actively pursuing IoT initiatives. Simply because the top driver of Insurance sector is mostly related to the retail. Better customer services and improving customer acquisition. In this industry sector, 6.4% IT budget is invested in Internet of Things development.
Unfortunately 29% people thinks that developing sustainable business model would be the barrier of Internet of Things Implementation in Insurance industry.
Oil and Gas
Another big adoption of Internet of Things can be from Oil and Gas industry. With 56% of respondents that are actively pursuing IoT initiative, it makes oil and gas industry will be more interconnected and cost saver.
The top driver of course it’s lowering the operational cost of Oil and Gas industry. It’s also modernize and optimize the technology of oil and gas industry that can makes the production process faster. But 37% barrier comes from security concern as Internet of Things security is an important matter and oil and gas industry is a risky sector.