A new report published by McKinsey and Company looks at the economic potential that the IoT could have on the greater economy by taking into consideration hundreds of use cases in the physical settings in which they are or otherwise could be used.
The report, entitled The Internet of Things: Catching up to an accelerating opportunity is a follow-up piece to an original study published six years ago, which was titled The Internet of Things: Mapping the value beyond the hype.
In this latest issue, the team has updated its analysis to estimate how much of that value has been realized, how the potential value of the IoT could further evolve over the next ten years, and factors that may serve as influencers on the success of this evolution — for better or worse.
Among the report’s key findings:
• The potential economic value that the IoT might unlock by 2030 could enable an estimated $5.5 trillion to $12.6 trillion in value globally (this includes the value captured by consumers and customers of IoT products and services).
• The IoT’s economic-value potential is concentrated in certain settings; specifically, factory settings will account for the largest amount of potential economic value from the IoT. The report estimates it’ll be around 26 percent by 2030. Human-health settings is second, with an estimated 10 to 14 percent of IoT economic value in 2030.
• B2B applications look to be where the majority of IoT value can be created, with an estimated 65 percent of the total IoT value potential by 2030. However, the report does note that B2C applications are growing quickly, driven by the proliferation of at-home IoT solutions.
• Finally, the IoT economic-value potential of the developed world come 2030 will account for 55 percent of the global total. This is a bit of a decrease from 61 percent in 2020. China is well-positioned to become a global IoT force, not only as a manufacturing hub and technology supplier, but also an end market for value creation.
There’s no doubt the IoT market is growing at considerable speed. But is it realizing its true potential? Some may argue that it’s not, and that’s due in large part to operational factors influencing the market which, in turn, dictate how quickly enterprises are choosing to scale their operations. And this is true not just as it relates to growth but also the tailwinds and headwinds of the economy at large.
This presents a unique opportunity for today’s solution providers to step in and provide enterprises the guidance needed to begin their transition over to IoT-based solutions. After all, if the IoT is to fulfill its potential so that enterprises can begin benefiting from its growth, it will first benefit the companies that take the initiative today to employ solution providers who can properly address these headwinds.
Read the report: The Internet of Things: Catching up to an accelerating opportunity here
