World of IoT – Part 4

 

Just a recap, in my previous post, I had taken a deep dive into the growth and trends in the IoT space. This will be the concluding post for this series where we will discuss the Industries where IoTs have been successfully implemented.

According to Internet of Things spending data and forecasts, published early 2017 by IDC, the 3 main industries in terms of IoT spending in 2016 were, respectively, manufacturing, transportation and utilities. Consumer Internet of Things spending ranked fourth.

While globally in the period until 2020, manufacturing will remain the major industry (except in Western-Europe) there will be global changes in this top 3. Among the fastest growing industries in the period until 2020 are insurance, healthcare, retail, consumer and, as mentioned, cross-industry initiatives.

Obviously, there is a difference between Internet of Things spend and number of Internet of Things projects.

A report by IoT Analytics, really a list of 640 real-life Internet of Things projects, indicates that from the perspective of number of projects connected industry ranks first but is closely followed by smart city implementations (where we mentioned the report), which rank second.

  1. Internet of Things in MANUFACTURING

The Manufacturing industry has always taken the lead in the implementation of IoT, given the origins of IoT i.e., RFID. Hence the most early typical use cases have kept this industry in the lead but not for long. In 2015, it was estimated that there were 307 million installed units in the manufacturing industry where systems with sensors have always been embedded into manufacturing and the automation processes. And that it would reach $98.8 billion by 2018 in manufacturing operations through efficiency optimization and connecting the automated areas. By and large the 3 top IoT use case in this industry are listed below.

A majority of manufacturers has deployed devices to collect, analyze/measure and act upon data. More than 34.6 percent of these companies had already implemented devices and sensors to gather this data and another 9.6 percent were about to implement IoT devices within a year. Only 24 percent from manufacturing industry had no plans to implement devices to collect, analyze and act upon data.

Retailers are working with the Internet of Things for several innovative and immersive approaches, ranging from virtual closets and self-checkouts to smart shelves (inventory accuracy) and connected vending machines.

  1. The Internet of Things in the RETAIL business

Retail is moving up fast, both in operations and customer-facing circumstances. The emphasis is primarily on efforts to digitize the consumer experience. It is mainly in the optimization of processes and of logistics that the Internet of Things offers immediate benefits to retailers. However, obviously the customer-facing and inventory-related aspects matter a lot too. The use of the Internet of Things in retail, among others, changes customer experience, leads to better customer insights, enables new collaborations and business models and further blurs the line between digital and physical in an in-store context.

Retailers are working with the Internet of Things for several innovative and immersive approaches, ranging from virtual closets and self-checkouts to smart shelves (inventory accuracy) and connected vending machines.

 

  1. The Internet of Things in GOVERNMENT AND CITIES

The Internet of Things is already used across several government activities and layers the sector is a very vast ecosystem and so are the many IoTs use cases in government. Probably the best-known usage of the Internet of Things in a government context concerns smart cities, in reality mainly smart city applications.

Smart city projects are what people hear about most and they get a lot of attention, among others because smart city applications are close to the daily lives of residents. Another reason why smart cities are often mentioned is that defacto smart city projects account for a big portion of Internet of Things deployments. Think about smart waste management (often a local matter), smart parking and environment monitoring.

Another area where we see the Internet of Things popping up is in citizen-facing public services. To a large extent smart city uses cases overlap with Internet of Things use cases in public services as one of the key tasks of a city is to serve the citizens. However, with public services we also go beyond the local/urban level but also includes smart energy. The degree of overlap depends on the way government services are organized in a particular country or region.

Improving citizen satisfaction is the main objective when considering or implementing the Internet of Things and other emerging technologies. Moreover, governments have a role in public health which can be enhanced by taking initiatives using the Internet of Things and in collaboration with private a state-sponsored partners. The same goes for public safety by the way. An example: collaborations between governments and insurance firms, leveraging telematics.

There are really hundreds of ways in which governments leverage and can leverage the Internet of Things to improve citizen experience, realize cost savings and, not to forget, generate new revenue streams.

The latter is quite important as many IoT projects have an impact on the funding of cities. A simple example: if you have a perfectly working smart parking solution in a city, you lose revenues for all the obvious reasons. So, it’s not just a matter of technologies but also of finding creative ways to turn enhanced citizen experience and citizen services in a global picture that is beneficial for everyone.

This takes time, planning and, as you can imagine, given the complexity of the government ecosystems, lots of alignment and coordination.

  1. The Internet of Things in BUILDING AND FACILITIES

     

The Internet of Things plays an important role in facility management, among others including data centers and smart buildings. The integration of IT (Information Technology) and OT (Operational Technology) plays an important role in this regard. Smart buildings are among the fastest growing cross-industry Internet of Things use cases in the period until 2020. Moreover, research indicates that data collection from buildings and other structures such as HVAC is already high. Last but not least, the market and evolutions of the BMS (Building Management System) are strongly impacted by the Internet of Things.

As the graphic below indicates, building management systems are becoming the centers of connectivity in a world of ever more endpoints in buildings, data analytics and actionable data play a key role in the evolution of building design, the connected building and the building management. As data collection from end point increases and next generation technologies make analytics and insights key in building systems, the connected BMS becomes a center of visualization, insights and actions.

Leveraging data from IoT-enabled facility assets, along with new Internet of Things platforms and facility management, with embedded capabilities, are leading to possibilities and benefits in building management areas such as:

  1. Smarter building security systems.
  2. Smarter Heating, ventilation and air conditioning (HVAC).
  3. Safer and more comfortable/healthy workplaces and buildings.
  4. Facility service quality optimization.
  5. Cost reductions, also in a green building context and in reduction of energy and water consumption.
  6. Better planning, operational efficiencies and enhanced resource allocation.
  7. Predictive maintenance and facility maintenance planning.
  8. Facility equipment control, configuration and regulation.
  9. Building management and building automation.
  10. Energy efficiency.
  11. Light and room control, comfort.

This list is far from comprehensive. As there are various sorts of buildings, each with their own challenges, infrastructure, technologies and most of all goals the landscape of building automation and management is very broad. In light and room control alone there are several controls such as blind controls, AC unit controls and literally dozens more.

The overall building automation and management landscape exists since far before the Internet of Things existed and is composed of various specializations, each with their standards (e.g. KNX in room control or BACnet in building management systems), certification programs for green buildings (ecology and energy/ecology regulations are key drivers) and for OT channel partners, technologies, networks, solutions and of course goals (the goal of an IoT-enabled office space, building or even meeting room is not the same of a hospital, even if there are always overlaps) .

However, with the Internet of Things these worlds are converging (and the standards already evolved to IP). This is a challenge and opportunity for the various players who all have their skill sets but rarely are able to offer the full picture.

5. The Internet of Things in HEALTHCARE

The Internet of Things has been present in healthcare in many forms and shapes since several years.

With remote healthcare monitoring and medical/hospital asset tracking, monitoring and maintenance as typical examples of these initial applications, the face of the Internet of Things in healthcare is changing fast.

Among the evolutions and drivers of the Internet of Things in healthcare:

  • An increasing consciousness and engagement from the consumer/patient side leads to new models, leveraging personal healthcare devices.
  • In a more integrated perspective, data from biosensors, wearables and monitors are used in real-time health systems and to save time for caregivers, detect patterns, be more aware and increase quality of care.
  • A broad range of innovations in fields such as smart pills and ever better delivery robots help in making healthcare more efficient and in saving resources, while also increasing quality of care.

This glorifies the importance of remote monitoring as the main use case in healthcare from a spending perspective until 2020 and ongoing growth in the years after that with some vital sign monitor devices, followed by ways how healthcare providers and healthcare payers plan to leverage the Internet of Things and, finally smart healthcare market growth data.

Some evolutions and forecasts in healthcare IoT in numbers:

 

 

 

 

 

 

  • Research shows that by 2019, 89% of all healthcare organizations will have adopted IoT technology
  • Among the main perceived benefits of healthcare IoT in the future are increased workforce productivity (57%), cost saving (57%), the creation of new business models (36%) and better collaboration with colleagues and patients (27%). The key benefits as reported in March 2017, however, are increased innovation (80%), visibility across the organization (76%) and cost savings (73%).
  • Other research shows that wearables will play a key role in health care plans, clinical IoT device data will free up clinician’s time significantly by 2019 (up to 30%) and there will be an increasing role for IoT-enabled biosensors and robots for medication and supplies delivery in hospitals by 2019.
  1. Internet of Things in UTILITIES AND ENERGY

Facing huge challenges and transformations for several reasons, utility firms have 299 million units installed according to Gartner. On top of utilities in the traditional sense there is also a lot happening in oil and gas and in energy.

Among the many typical use cases in utility firms: smart meters to improve efficiency in energy, from a household perspective (savings, better monitoring etc.) and a utility company perspective (billing, better processes and of course also dealing with natural resources in a more efficient way as they are not endless) and smart grids (which is about more than the Internet of Things).

  1. The Internet of Things in AUTOMOTIVE

Connected cars and all the other evolutions in the automotive industry are driving the market as well. Again, connected vehicles is the hottest US market in the overall picture. The connected car is one of those typical examples where the Consumer Internet of Things and Industrial Internet of Things overlap.

  1. The Internet of Things in OTHER SECTORS

Other industries include healthcare, transportation (where “smart devices” and sensors have existed for quite some time), logistics, agriculture and more. Add to that the consumer context and you know why it is such a hot topic. 

In summary the biggest drivers for IoT projects are listed below

This is the last blog in the series on the World of IoT and the related space. Hope you all enjoyed reading through the posts as much as I enjoyed putting them together. Stay tuned while I come back with yet another series on a technology topic

Please feel free to review my earlier series of posts 

Leave a Reply

Your email address will not be published. Required fields are marked *