The Internet of Things (IoT) is the “rockstar” of business trends these days. It is the number one in Gartner’s Hype Cycle, expected to grow to 26 billion devices by 2020. The IoT is further expected to generate an incremental supplier revenue contribution of around $309 billion and an economic value-add (which represents the aggregate benefits that businesses derive through the sale and usage of IoT technology) of $1.9 trillion across sectors in 6 years from now. The outlook is bright, however there are not only endless possibilities but also challenges to overcome for which we will have to find solutions.
Businesses need to identify and employ the right technologies at the right time to compete successfully in the digital market. With decreasing component costs it will become much easier to add connectivity to all sort of devices, which at the same time raises security questions. On the one hand the number of ghost devices (devices which are physically equipped with the necessary hardware but not with the software to be connected to the internet) will increase, making it harder to prevent systems from attacks. On the other hand very personal data, for example in smart home applications, need intelligent and effective precautions to be successful in the consumer market.
For companies participating in the IoT it is also vitally important to not only develop new technologies but also to combine technologies in the right way. One major challenge will be the procurement of parts, as with increasingly complex systems, the components for a product might not be available at one single manufacturer. Additional expertise in IT and cloud infrastructures might be another problem to overcome. Last but not least supply chain management will get more complex and require a high-level of know-how to ensure the timely marketing of products.
The sectors in which the IoT will matter most (according to Goldman Sachs Global Investment Research) are illustrated below:
Given these segments as focus areas we can assume that the adoption of the IoT is driven by our daily lifestyles on the consumer side and by the business opportunities and manufacturing optimization on the commercial side.
To get a full overview on the topic downlaod the TQ Magazine.
Electronic components distributors, such as EBV, can help companies to manage the transition into the world of digital business and IoT. Distributors are in the position to offer parts from a big number of suppliers, ensuring the availability of chips for about any project customers come up with. Further they often have very reliable supply chains already in place and are also able to solve IT and software issues. In addition EBV can offer deep know-how for nearly any product through the unique technology and market driven vertical segments.
Learn more about how EBV can be of value for you here: EBV ready for the IoT – Whitepaper