India's IoT Market Is The Next Big Thing, Say Experts

by CXOtoday News Desk    Feb 14, 2017

internet of things

Marc Benioff, CEO of Salesforce.com once said, “the Internet of Things is ground zero for a new phase of global transformation powered by technology innovation, generating significant economic opportunities and reshaping industries.”

Even some two years ago, the Internet of Things or IoT as its popularly called was a much-hyped technological concept. Much of this hype centred around consumer applications, such as smart homes, connected cars and consumer wearables such as smartwatches and so on. In recent times, IoT has become a phenomenon.

Read more: Smart City, Digital India To Spur IoT Market By 2022: Study

No longer a hype

For all the hype and existing challenges, industrial IoT promises to be a technology to watch out for. Being closely linked to enterprise IoT, it is likely to radically transform and overhaul business segments including manufacturing, oil and gas, agriculture, defence, mining, transportation and healthcare, to name a few. Collectively, these sectors account for over two-thirds of the global economy.

Experts believe that industrial internet applications in the enterprise - even though at an early stage, similar to where the Internet was in the late 1990s - will grow by leaps and bounds, requiring not just huge amounts of bandwidth but more importantly, absolutely reliable and real-time responses. IoT, which excludes PCs, tablets and smartphones, will grow to 26 billion units installed in 2020, representing an almost 30-fold increase from 0.9 billion in 2009, according to Gartner.

Gartner also stated that IoT product and service suppliers will generate incremental revenue exceeding $300 billion, mostly in services, in 2020. It will result in $1.9 trillion in global economic value-add through sales into diverse end markets.

The India market to boom

Going by global predictions, a Deloitte study notes that IoT units in India are expected to see a rapid 31-fold growth to reach 1.9 billion by 2020. The market value of IoT is expected to reach $9 billion by 2020. IoT is going to be the next big thing for operators as India will rapidly grow into a hub for IoT solutions.

Even with over 750 million cards in circulation and significant growth, mobile-based and digital payments will eclipse physical card payments. According to the report, innovative payment channels adopted by traditional and new age companies coupled with government backed systems such as Aadhaar Enabled Payments Systems (AEPS) and Unified Payments Interface (UPI) will have a positive impact on mobile and digital payments. The company also predicted that technology industry in India may witness an earlier arrival of 5G in India.

“The emergence of new tech trends will help transform digital economy in 2017 and will help operators in identifying new revenue generating opportunities, enhance customer experience, and improve operational efficiencies,” the research firm said, adding that with advances in reliability, accuracy and technology of advance tech measures such as biometric authentication, digitization will gain popularity in various business applications.

Read more: Why 2017 Can Be The Year Of IoT Disruption

The verticals that are expected to lead its adoption are manufacturing, healthcare and insurance, among others. Companies such as Cisco, GE, Intel, Qualcomm and Huawei are among those leading the pack. While manufacturing, transportation, oil and gas, defence, healthcare and BFSI will be benefiting from IoT, opportunities emerging in sectors as varied as, say, agriculture also portend huge change and possible impact.

The enterprise segment is already the largest consumer of satellite broadband technologies — largely because of its ubiquitous availability and inherent reliability. From the middle of the ocean, to the top of a mountain, the middle of a desert or the centre of a forest, VSAT (very small aperture terminal, a satellite communication system) connectivity is always on. It stands to reason that enterprise IoT and VSAT broadband can take India to greater heights and proper implementation will take it closer to the ‘Digital India’ dreams.