The convergence (or coming together) of physical and digital worlds used to be the content of our imagination and scientific theory, showcased in science journals, science fiction books and films.
In the 1980s, the internet – a network of interconnected computers allowing people to communicate and work with each other – was established and recognised as a legitimate means of collecting, processing and sharing information by people. It led to the establishment of an ‘internet of things’ where things (i.e. objects, devices and machines embedded with sensors) could do the same among themselves without human involvement or intervention. Thus, from a situation where computers could ‘talk’ to each other, the reality now also allowed all kinds of devices and machines to ‘talk’ to each other independently, collectively, in a networked world of their own. Thereby, creating an IoT universe of connected devices.
Today, examples of IoT applications are everywhere: from temperature-controlled homes and offices to remote patient monitoring and diagnostics, autonomous vehicle management and traffic control, crime detection and response, early warning systems for meteorological events, monitoring of financial markets, prediction of customer shopping behaviour, inventory and warehouse management, military threat assessment and response, and so many more applications from day-to-day operations, to future scenario planning.
As this scenario was developing, a November 2021 report by McKinsey predicted that, over the next ten years, the economic value of IoT will grow in an accelerated manner. The report stated, “The potential economic value that the IoT could unlock is large and growing. By 2030, we estimate that it could enable $5.5 trillion to $12.6 trillion in value globally, including the value captured by consumers and customers of IoT products and services.”
– IoT value set to accelerate through 2030: Where and how to capture it by Michael Chui, Mark Collins, and Mark Patel | November 9, 2021
And, as predicted, there seems to be no end to the growth of the IoT market as more and more devices are being embedded with sensors every month for a myriad of IoT applications. Reinforcing this fact, Oracle, on their website, shares data that is truly exciting for the industry: “With more than 7 billion connected IoT devices today, experts are expecting this number to grow to… 22 billion by 2025.”
https://www.oracle.com/in/internet-of-things/what-is-iot/
What’s making this possible? Oracle goes on to explain, “By means of low-cost computing, the cloud, big data, analytics, and mobile technologies, physical things can share and collect data with minimal human intervention. In this hyperconnected world, digital systems can record, monitor, and adjust each interaction between connected things. The physical world meets the digital world — and they cooperate.”
From the examples of IoT applications we have mentioned earlier in this post, we understand that B2B IoT applications far outweigh B2C IoT applications. This is reflected in economic value as well. The 2021 McKinsey report mentioned earlier states that, “B2B solutions remain the primary economic value from IoT solutions.” And that,“B2B applications are expected to account for 62 to 65 percent of the total [value-creation potential] in 2030. In economic terms, this translates to $3.4 trillion in the low scenario and $8.1 trillion in the high scenario.”
Not to be entirely outdone by B2B, the McKinsey report also stated, “the value of B2C applications has accelerated as a result of faster-than-expected adoption of IoT solutions within the home (for example, home automation).” If we consider emerging concepts such as ‘smart spaces’ and ‘smart buildings’, perhaps, that’s just the tip of the iceberg in IoT B2C applications and value-creation potential. For one thing, it leaves room to add scale to the IoT B2C universe. For another, it creates unique opportunities for solutions and growth. Both have the means to increase economic value.
Already, we are scaling IoT applications from smart homes to smart factories, smart universities and smart cities. No longer is IoT confined to wearables like smart watches and fitness trackers; or to household appliances and electronic devices within the walls of our homes. IoT technologies now govern our vehicles and traffic on streets and highways; and our travel across oceans and the skies. They govern our education in the classroom and outside it; and our health in hospitals and through remote applications. They make our shopping experiences easy and enjoyable.
These are just a few of the large B2C applications where IoT is being deployed today. If we add these to the numerous B2B applications, including in industrial (IIoT), meteorological and military settings, some of which are mentioned earlier in this post, the universe of IoT makes up a significant part of our lives, work and economy. In every case, there is a coming together of the physical and digital worlds to create solutions that make our human world safe and more livable; and our businesses more profitable.