“The IoT is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. The IoT describes the connection of any device to the internet using embedded software and sensors to communicate, collect and exchange data with one another. With IoT, the world is wide open, offering a virtually endless array of opportunities and connections at home, at work or at play.”
In other word:
The Internet of Things is widely accepted as the network of physical everyday objects embedded with sensors, battery, software, and network connectivity to enable these objects to collect and exchange data without direct human or central computer interaction.
The IoT ecosystem
What is IoT?
IoT has emerged as the convergence of wireless technologies, micro-electromechanical systems (MEMS), microservices and the internet. The convergence has helped tearing down the walls between operational technology and information technology, allowing unstructured machine-generated data to be analyzed for
insights that will drive improvements.
Consumers own an average of four IoT devices that communicate with the cloud. Globally, an estimated 127 new devices connect to the Internet every second. A report from the McKinsey Global Institute estimates that the IoT could have an annual economic impact of $3.9 trillion to $11.1 trillion by 2025 across many various settings.
Source: McKinsey Global Institute analysis, 2017
Growing opportunities in the IoT market
“Maturing underlying technologies will make Internet of Things technologies easier to implement and help companies and investors seize new opportunities”
Source: McKinsey& Company July 2019
- After years of hype, anticipation and steady uptake, the IoT seems poised to cross over into mainstream business use. The number of businesses that use the IoT technologies has increased from 13% in 2014 to about 25 percent in 2019.
- The level of uptake is both a result and an impetous of the developing technologies that underpin the IoT. For one, technological advancement means that IoT technologies will become easier to implement, opening the door for a wider variety of companies to benifit from IoT applications. Indeed, although large enterprises began to invest thier sizable resources in IoT years ago, the beneficiaries of this latest wave of IoT maturity will be small and medium enterprises.
- The IoT already numbers more than 200 known applications in enterprise settings.