Connected gadgets, appliances, vehicles and physical retail spaces are gathering massive amounts of consumer data. Companies from Diageo to Lord & Taylor are investing in technologies and resources to help them determine how their products and businesses can be enhanced through this Internet of Things. But many of those companies -- aware of concerns over data privacy -- have been reluctant to explain to consumers why they're using mobile beacons and other sensors to harvest data. New research, however, suggests this is a lost opportunity for brands to present themselves as privacy conscious.
The Internet of Things is here and it’s growing rapidly. Internet of Things (IoT) or Internet of Everything (IoE) refers to devices or objects that are connected to the Internet, like your smartwatch, Fitbit, or even your refrigerator. These devices are able to collect and transmit data via the Internet, contributing to our big data world.
Smart, connected devices are already transforming our world and the competitive forces in business. To demonstrate how fast this sector is growing and what an impact it will have on our lives and business, I’ve rounded up 17 of the most mind-boggling IoT numbers and stats that prove that the phenomenon is here and here to stay.
> The majority of people (87%) have not heard of the term ‘Internet of Things’.
> ATMs are considered some of the first IoT objects, and went online as far back as 1974.
> Back in 2008, there were already more objects connected to the Internet than people.
> This year, we will have 4.9 billion connected things.
> And some predict that by 2020, the number of Internet-connected things will reach or even exceed 50 billion.
> In 2015, over 1.4 billion smart phones will be shipped and by 2020 we will have a staggering 6.1 billion smartphone users.
> The IoT will connect many of the devices we have in our homes, from smart thermostats to smart fridges. Companies like Google GOOGL -0.91% and Samsung understand this. Google bought smart thermostat maker, Nest Labs, for $3.2 billion, and Samsung purchased connected home company SmartThings for $200 million.
> By 2020, a quarter of a billion vehicles will be connected to the Internet, giving us completely new possibilities for in-vehicle services and automated driving.
> In fact, we already have cars that can drive on their own – Google’s self-driving cars currently average about 10,000 autonomous miles per week.
> The global market for wearable devices has grown 223% in 2015, with Fitbit shipping 4.4 million devices and Apple AAPL +0.00% selling 3.6 million Apple Watches.
> And yes, Internet-connected clothing is coming. Estimates predict that 10.2 million units of smart clothing will ship by 2020, compared to a meagre 140K units in 2013.
> Today, the market for Radio Frequency Identification (RFID) tags, used for transmitting data to identify and track objects, is worth $11.1 billion. This is predicted to rise to $21.9 billion in 2020.
> Machine-to-machine (M2M) connections will grow from 5 billion at the beginning of this year to 27 billion by 2024, with China taking a 21% share and the U.S. 20%.
> GE believes that the “Industrial Internet” (their term for IoT) will add $10 to $15 trillion to global GDP in the next 20 years.
> According to estimations by the McKinsey Global Institute, the IoT will have a total economic impact of up to $11 trillion by 2025.
> Having a connected kitchen could save the food and beverage industry as much as 15% annually.
> CISCO believes the IoT could generate $4.6 trillion over the next ten years for the public sector, and $14.4 trillion for the private sector.
The IoT is only going to grow. I believe that currently less than 0.1% of all the devices that could be connected to the Internet, are connected to the Internet. Just think of the tremendous potential and limitless opportunities this brings for business and society.