IoT May Grow 285% In 2020; But What's Next?
Some of the recent reports reveal that the Internet of Things (IoT) market is undergoing ‘revolutionary’ changes in the next few years. According to a Juniper Research, the number of IoT-connected devices will grow 285 percent to 38.5 billion in 2020 from 13.4 billion in 2015, with industrial and public services sector such as retail, agriculture, smart buildings and smart grid applications, forming the majority of the device base.
With IoT growing at such an unprecedented speed, one may often pause and ask, “What’s next in IoT?” A Gartner report responds that in the current scenario, how IoT is changing many manufacturers of ‘things’ into software vendors that need licensing and entitlement management (LEM) solutions.
Manufacturing product strategists can boost revenue potential by shifting product value from device hardware to the software running on the device and applying an appropriate licensing strategy.
The timeline Gartner gives is also similar to that of Juniper. As Laurie Wurster, research director at Gartner says, “We expect that by 2020, a failure to put in place a LEM system will result in a 20 percent drop in potential revenue generated from software for device manufacturers connecting to the IoT.”
Most of these companies are first-time software providers that can now construct their software as well as the devices via the IoT, which represents an important market opportunity to drive business transformation. “By controlling product functionality and the features and capacities of Internet-connected devices via flexible licensing, device manufacturers will be better able to compete in current and new markets,” said Wurster.
Wurster believes that as the need to scale and react quickly to changing market conditions increases, manufacturers may eventually start to purchase packaged solutions. Providers of commercial products investing in support for new licensing models and broadening their set of capabilities make these solutions an “attractive alternative” for the manufacturers that don’t want to manage in-house LEM software.
Analysts also see much risk in the way IoT is managed. Forrester reveals that nearly 50% of respondents believe that privacy and security are currently the biggest concerns in the adoption of IoT. Andrew Rose, Principal Analyst at Forrester Research, mentions that there is an increased risk of data to be stolen or compromised when deploying emerging technologies such as IoT.
“Companies should have a security policy in place to identify targets, evolve key security control, add newer delivery mechanisms and review their security scenario frequently,” he writes in a blog.
However, security, licencing and other challenges cannot stop IoT from reaching the peak of its growth. By 2016, analysts believe over half of the companies globally will implement IoT-related technologies in some form or the other and in 2020 IoT rules may have to be rewritten.
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