A new report from Boston Consulting Group (BCG) has identified growth opportunities in IoT by analysing the current trends shaping the IoT market.
Growth opportunities
According to the report, from 2015 to 2020, all layers of the technology stack will see a CAGR of at least 20 per cent. However, the biggest growth will be seen in IoT services and applications, which are expected to represent 60 per cent of all growth in IoT by 2020.
Use cases driving IoT adoption
In order to gain meaningful market share over the near term, companies need to focus their IoT product offerings on the right use cases. According to the graphic below, the top use cases driving IoT adoption are predictive maintenance, self-optimising production, automated inventory management and remote patient monitoring. The process industry is expected to be one of many industries investing in these use cases.
Other prominent use cases driving IoT adoption include smart meters, track and trace, distributed generation and storage, connected cars, fleet management and demand response.
Industry-specific view
By cross-referencing use cases with industries, it has been determined that three industries will likely account for approximately 50 per cent of IoT spending: discrete manufacturing, transportation and logistics, and utilities. The process industry lies somewhere in the middle amongst the industries listed below, and is expected to see a CAGR of approximately 30 per cent from 2015 to 2020.
“[Companies] can pick the areas in which they want to compete and develop partnerships with other companies in order to build a powerful suite of end-to-end offerings,” wrote BCG in the report.
“With a clear vision of where – and by whom – dollars are actually being spent in IoT, companies have a timely opportunity to gain significant traction in the IoT space, and they can position themselves to stake a claim in one of the biggest market opportunities of our generation.”