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Here's Why 'The Internet Of Things' Will Be Huge, And Drive Tremendous Value For People And Businesses

EMILY ADLER - Business Insider

The Internet Of Things represents a major departure in the history of the Internet, as connections move beyond computing devices, and begin to power billions of everyday devices, from parking meters to home thermostats. 

Estimates for Internet of Things or IoT market value are massive, since by definition the IoT will be a diffuse layer of devices, sensors, and computing power that overlays entire consumer, business-to-business, and government industries. The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined.

In a new report from BI Intelligence, we look at the transition of once-inert objects into sensor-laden intelligent devices that can communicate with the other gadgets in our lives. In the consumer space, many products and services have already crossed over into the IoT, including kitchen and home appliances, lighting and heating products, and insurance company-issued car monitoring devices that allow motorists to pay insurance only for the amount of driving they do.  

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Here are the top business-to-business and government applications:

• Connected advertising and marketing. Cisco believes that this category (think Internet-connected billboards) will be one of the top three IoT categories, along with smart factories, and telecommuting support systems.
• Intelligent traffic management systems. Machina research, in a paper prepared for the GSM Association, sees $100 billion in revenue by 2020 for applications such as toll-taking and congestion penalties. A related revenue source will be smart parking-space management, expected to drive $30 billion in revenue.
• Waste management systems. In Cincinnati, residential waste volume fell 17% and recycling volume grew by 49% through use of a “pay as you throw” program that used IoT technology to monitor those who exceed waste limits.
• Smart electricity grids that adjust rates for peak energy usage. These will represent savings of $200 billion to $500 billion per year by 2025, according to the McKinsey Global Institute.
• Smart water systems and meters. The cities of Doha, São Paulo, and Beijing have reduced leaks by 40 to 50% by putting sensors on pumps and other water infrastructure.
• Industrial uses including Internet-managed assembly lines, connected factories, and warehouses, etc

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