According to the Strategy Analytics Internet of Things (IoT) Strategies latest report, “IoT 2016 Top 10 Predictions Report ” – IoT will be the defining trend of the next decade, impacting virtually every vertical industry and permeating the vast majority of business processes.
Services, security, Big Data Analytics and connectivity, particularly Low Power telecoms, will all play prominent roles as IoT mainstream deployments and usage increases over the next 12 months. Merger and acquisition (M&A) activity, followed by inevitable consolidation will continue brisk throughout 2016 as large, established vendors strengthen their core capabilities and expand their IoT presence.
Laura DiDio, Director IoT Systems Research and Consulting, noted:
“This will be a watershed year for IoT deployments as practical actions take precedence over hype.”
“Embedded security, Data Analytics and services enablement will be essential for organizations to realize IoT’s full benefits and economies of scale,” she added.
“IoT is imperative in the shift from selling products to services and, consequently, a shift from Capex to Opex. In 2016, IoT will continue to ramp up as increasing numbers and diverse types of devices become connected, driving a range of ‘as-a-service’ business models,” noted Andrew Brown, Executive Director of Enterprise and IoT Research, and author of the report.
Among the report highlights:
- Security will be a crucial issue for vendors, consumers and corporations. SA’s IoT 2016 Security Threats and Trends Survey found that 56% of organizations experienced a security breach. However, only 6% of survey respondents were able to identify and thwart hacks in advance. In interconnected IoT systems, the risks associated with a successful hack can cause greater collateral damage.
- Big Data Analytics is the differentiator in IoT. Strategy Analytics projects that Analytics software revenues will reach $40.4 billion worldwide in 2015 and double to $81.1 billion by 2022, exclusive of service revenues.
- Low Power Trends are hot. Strategy Analytics expects the standardized 3GPP path to Narrow Band IoT via LTE-M with Release 13 to provide real competition to LPWA vendors in the market, offering reduced device costs, reduced power consumption, extended coverage and the ability to handle large numbers of devices.
- Merger and acquisition activity will continue to accelerate unabated in 2016. Recent acquisitions of Altair by Sony and Jasper Technologies by Cisco have already topped $1.6 billion and demonstrate that IoT is now table stakes. Strategy Analytics expects IoT M&A activity could potentially reach the $20 billion mark in 2016.