The benefits of IoT for businesses depend on the specific application; agility and efficiency are often the most important considerations. The idea is that businesses need to have more data about their own products and their own internal systems, and the ability to make more changes as a result.
Manufacturers are adding sensors to the components of their products so they can transmit back data about their performance. This can help companies identify when a component is likely to fail and replace it before it causes damage. Companies also can use to make supply chains more efficient systems and the data generated by these sensors, because will have more accurate data about what's really going on.
"With the introduction of comprehensive, real-time data collection and analysis, manufacturing systems can become significantly more responsive," says McKinsey, the consultants.
Enterprise use of IoT can be divided into two parts: industry-specific offerings such as sensors in a manufacturing facility or real-time location devices for healthcare; and IoT devices that can be used across all industries, such as intelligent air conditioning or security systems.
Although sector-specific products will be released early, Gartner estimates that cross-sector devices will reach 4.4 billion units by 2021, while vertical custom devices will reach 3.2 billion units Dec. Consumers are buying more devices, but businesses are spending more: consumer spending on IoT devices last year was about $ 725 billion, while spending by businesses on IoT reached $ 964 billion, the analyst group said. By 2021, business and consumer spending on IoT hardware will reach about $ 3 trillion.
The top industries for IoT were estimated to be monthly production ($119 billion), process production ($78 billion), transportation ($71 billion) and utilities ($61 billion). Projects that support asset management for manufacturers will be key; freight tracking and fleet management in transportation will be the highest priority. IoT spending in the utility industry will be dominated by smart grid projects for electricity, gas and water.
Consumer IoT spending is projected to reach $ 108 billion, making it the second-largest industry segment: the Smart Home, Personal Health and connected vehicle infotainment will see most of the spending.
According to the usage, manufacturing operations ($100 billion), plant asset management (44,2 billion) smart home (44,1 billion) and freight tracking (41,7 billion) will be the largest investment in the area.