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Russia spending big on IoT


Russian companies will invest more than $4 billion in the Internet of Things (IoT) in 2016, according to a study by IDC.

IDC experts project that from 2016-2020, investment in IoT will grow by 21.3 per cent, with the market volume reaching $9 billion by 2020.

Half of this market will be attributed to production, transport and energy. The creation of smart cities will also play an important role in market growth.

Experts have noted their expectation of “tangible results” for IoT pilot projects in sectors such as agriculture, retail trade, mining and health.

“[However,] IoT adoption in Russia largely depends on government support and the realisation of IoT business value in the commercial sector,” said Elena Semenovskaia, research director of IDC Russia.

“Technical solutions from both international vendors and local providers are in place, but end-user organisations are lacking implementation scenarios that will bring tangible results.

“Additionally, organisations have major concerns regarding the security challenges associated with IoT technologies, and vendors should include security products as part of their IoT solutions and position them as a key enabler of IoT.”

This report comes not long after the announcement of a partnership between the Foundation for Internet Development Initiatives (FRII), private hi-tech company CS Group and three Russian mobile operators to create Russia’s first IoT consortium. The consortium has been funded by the Russian government in an effort to improve IoT standardisation.

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