US businesses look to benefit from Internet of Things
A report by technology research and advisory firm Information Services Group (ISG) has revealed that American businesses – especially those within the manufacturing, automotive, and healthcare industries – are increasingly relying upon the Internet of Things (IoT). The US is the world’s largest market for the IoT, which refers to the growing number of internet-connected physical devices and machines – allowing for inter-device communication and remote controlling or monitoring.
At the moment, ISG’s report found smart homes, smart buildings, smart cities, and smart energy grids are leading the country’s IoT charge. Manufacturing companies are also taking advantage of the IoT-enabled solutions for supply chain, logistics, and assets management. Demand for smart energy infrastructure is also at a high, with approximately half of all US electricity customers currently connected to smart meters.
"US companies are seeing the benefit of the entire physical world pulled in together in a connected ecosystem through sensors," Esteban Herrera, partner and global leader of ISG Research, said. "Billions of devices are connected, and each day, new connectivity is adding to the pool of information being captured in real time."
The automotive industry in particular is one industry which will see a sharp increase in new connectivity. According to the report, the US connected car market is set for double-digit growth in the next year. This is in part thanks to the US Department of Transportation, local and state governments, and automobile manufacturers, which have been working together to use IoT as a solution for road accidents and other “real-world operational problems.”
In the medical industry, growing demand for patient monitoring devices and telemedicine – remote medical care via telecommunications devices – is a partial cause of the US becoming the leading market for the “Internet of Medical Things.” Additionally, “the evolution of artificial intelligence in smart medical devices is paving the way to a more efficient healthcare system,” according to the report.
Although demand for IoT-enabled devices and infrastructure is currently booming, the phenomenon and its benefits are far from new. A 2015 Tata Consultancy Services study, for example, showed that eight out of 10 businesses that invested in IoT technology reported revenue growth in 2014, with an average revenue growth of 16%.
The future also looks bright. A recent report from Bain & Company projected that the IoT market will balloon to $520 billion in 2021 – up from $235 billion in 2017.
