Top Trends in Internet of Things to Look Forward to in 2016

The Internet of Things (IoT) is an emerging, paradigm-shift in communication, technology and a way of life altogether. Popularly branded as the 4th Industrial revolution of mankind, IoT presents increases machine-to-machine communication between a vast network of sensors-enables devices. We are talking about everything from your smoke alarms, refrigerators, light bulbs to cars, wearable and heavy industrial equipment; IoT will transform the digital world.

1. Security will Require the Most Attention in the age of Internet of Things

IoT promises an enriched life for the world through transforming everyday physical objects. But the emergence of IoT also creates complex network and cyber security challenges. As the numbers of devices connected to the IoT network grows by the millions this year, just as many end-points will open up for cyber criminals. 2015 already saw the demonstration of this when two security researchers wirelessly hacked into a Jeep Cherokee. Shockingly, they were able to control the wind shield wipers, entertainment system and then proceeded to disable the accelerator. This led to Fiat Chrysler withdrawing 1.4 million vehicles. This only goes on to show that in our rush for connectivity, developing and installing adequate security has lagged behind.

It’s not just the millions of back doors that are going to attract hackers. It is also the big data amassed due to the hyper connectivity of IoT. The true robust security has to be pre-emptive by creating not just Internet of Things, but Internet of Secure Things. In this year, when products are being created for Internet of Things, security will be given utmost priority by businesses and they will strive for security which is from the core, multi-layered and highly resilient.

2. New Revenue Trends for Businesses Leveraging Internet of Things

Quadrant Knowledge Solutions believes that the Internet of Things is very much heralding a new industrial revolution. It is going to cause a paradigm shift in the way businesses are going to dive into IoT for entirely new ways of revenue generation simply because of the enormous market potential and the demand to introduce trillions of connected devices. With embedded sensors and dedicated apps to manage the devices, businesses will be looking to monetize their devices with software licensing. IoT manufacturers are aware that their product’s value is going to increase with the sophistication of the software inside them and with the ease of using the software. Along with embedded intelligence and advance software, the IoT trend will open up revenue opportunities in providing value-adding performance based services. While cloud based services are increasingly finding acceptance, increased adoption of IoT technologies will open-up opportunities for everything-as-a—service model.

This is going to lead businesses to become software-centric, as opposed to concentrating on manufacturing superior products only in terms of physical quality and fixed functions. To tap into the new revenue revolution, manufacturers will produce devices which will be versatile and seamlessly connected to each other.

3. IoT – The Next Big Investment Hub

While IoT offers fantastic opportunities for businesses to monetize their products in new ways, this year it will also fan the fire of innovation. IoT changes the customer interaction and relationship with consumer goods. This is going to drive the innovation platform for all devices which will be joining IoT to better enhance this new wave of customer experience with devices that only used to perform fixed functions prior to IoT.

For Blue Chip companies, it will mean a high-intensity scramble to grab their share of the IoT market. For start-ups entering IoT arena, it will mean increased VC funding as it has become clear now that IoT is the next big thing, as validated by the massive investments by the Blue Chip companies. Companies that manufacture IoT devices are not only going to lead innovation but are also going to ramp up their IT infrastructure to collect and analyse the data collected from the IoT network.

4. Standardization is Expected to Remain a Hurdle

Compatibility has been one of the biggest issues in harnessing the full-fledged power of IoT because IoT is still an emerging paradigm shift. The success of IoT heavily depends on having open, global standards so that effective data exchange and data collection takes place to provide real-time, cost-effective solutions to customers and vendors alike. Manufacturers are building products with their own standards and protocols which lead to devices being high-technology but unable to communicate with each other. The benefits of IoT can only be taken into consideration only if the devices can communicate with each other.

Hence, global standards for IoT will become highly important. Businesses and manufacturers and technology companies will have to take up this opportunity to collaborate with each other to standardize IoT. Standardization is a must to build a strong network of devices able to seamlessly communicate with each other and to avoid ethical issues and security flaws. It is important seeing just the number of devices that are going to be connected and the data traffic between them. The format and network has to be similar for these devices.

Standardization on an open platform is expected to remain a problem this year as vendors, standards organizations and government bodies are looking into IoT standardization problems. Since there are working in their own interests, this problem is not likely to get solved this year.

5. Pricing Drops are to Continue in Internet of Things Components

With rapid development in IoT, increase in volume production and competition, prices of sensors and hence, prices of IoT components are expected to decline this year to the extent that smart sensors will become available for independent developers too. According to Quadrant Solution, as the adoption toward intelligence smart devices is increasing, the increased volume of and high competition factors are driving down the average selling prices of IoT hardware’s. The benefits of IoT lies in making sensing ubiquitous for providing smart value adding analytics services and at a very low prices. As IoT based smart devices and services find increasing adoption beyond hype, the price is expected to go down significantly.

Keywords: Internet of Things, IoT, Internet, Sensors, Smart Devices, Analytics, Cloud Computing, Big Data, Standardization

For more technology insights, visit our Strategic Insights page.

[sdm_download id=”1776″ fancy=”2″]

About Quadrant Knowledge Solutions

Quadrant Knowledge Solutions is a global advisory and consulting firm focused on helping clients in achieving business transformation goals with Strategic Business, and Growth advisory services.

Our Strategic Business, and Growth Advisory services are organized specifically to help clients develop and validate strategies based on global mega trends, understand the business potential and untapped opportunities, and strategies for growth. Our Market Research service is designed to satisfy your entire market intelligence requirement for all of your products and services in one customized package. Our experts can map your entire offerings and suitably recommend your custom Market Research package.

Market Research service provides details on Market Structure, Market Size, Market Share, Competitive Strategy, Market Forecast, Key Trends, Market Drivers, Market Restraints, Market Challenges, and such others.