The Frost & Sullivan study examines the key technology and market trends in the realm of Internet of Things (IoT). Based on expansion capabilities and ability to accelerate the market demand, Frost & Sullivan positions Cisco, IBM, PTC, and Legrand as the market movers and influencers of IoT developments. The study examines development in IoT technologies and machine-to-machine (M2M) modules in H2 2015 and explores the future direction of market growth.
Development of Licensed Networks Will Accelerate Adoption of IoT in 2016
IoT technologies will see large scale adoption in 2016, as enterprises move beyond the proof of concept stage and seek IoT solutions to enable digital transformation. This year will also highlight the disruptive potential of IoT, by positioning machine learning and block chain technologies at the forefront. To meet the requirements of the customers, enterprises will concentrate on the trials of licensed low power wide area network (LPWAN), in the form of narrowband-long term evolution (NB-LTE).
IoT security will be a challenge, particularly with growing threats of inter-state attacks. Security breaches could be attempeted not only by individuals and organisations but also hostile governments, complicating IoT deployments. Vulnerability of system security, especially in critical infrastructure such as energy grids, can increase premiums for eco-system stakeholders discouraging the adoption of IoT.
Despite the security issues, the agriculture, retail and manufacturing industries continue to offer abundant opportunies for IoT deployments. The IoT services related to cellular connectivity in connected cars and transportation sectors are directed toward end users, while local councils will handle LPWAN services involving street lighting, parking and telemetry. Other customers for IoT include hardware original equipment manufacturers (OEMs) that purchase M2M modules for industrial system devices, tracking devices and smart meters. As IoTapplicability expands, mergers and acquisitions or partnership activities will be essential. Significantly, enterprises prefer to engage with eco-system partners that possess industry expertise. The vertical industry leaders are also focusing on investing in analytics and device intelligence to empower their transition from hardware- to service-oriented business models. The main sources of funding for research and development in IoT will be technology companies, governments and academic institutions.