The birth of the internet has led to technological innovations that have shaken the world and forever changed the way we use technology. It started with a move by Carnegie Mellon University in 1982, where they modified a coke machine with sensors to keep track of its inventory. This marked the genesis of internet of things, which has grown over the years to an estimated record of 50 billion connected devices by the year 2020. This is according to a Safeatlast.co infographic on mind blowing statistics on IoT.
What is the current consumer IoT market worth?
A report published by Globe News Wire estimates the consumer IoT market worth to be $46.8 billion as of 2018. This value is further predicted to grow at a compound annual rate of 17.4% placing the consumer IoT market worth at $104.4 billion by 2023. China, North America and Western Europe hold the lion’s share of IoT’s market value.
Factors contributing to its growth
Increasing number of internet users
Only a couple hundred people had access to the internet by the late 1900s. Thanks to the increasing appeal of internet use, this figure has since grown to an astonishing 4.4 billion internet users as at 2019. According to the infographic, the internet is currently facilitating up to 80% of the world’s communication, innovations and discoveries. More so, the smartphone, which debuted in 2008, introduced the world to a new era of global interconnection. The same technology has gradually improved how IoT devices work, which has attracted the 4.4 billion internet users to the adoption of IoT devices.
Recognition from international markets
The consumer IoT market owes its growth to support from international organizations. The first international conference on the internet of things was held in 2008, drawing the world’s attention to the future of IoT implementation.
Heavy investment by global network providers such as Google and Amazon further gave support to the IoT venture. Currently, these companies provide the most widely used ecosystems in the world and their consumers have also taken up interest in IoT devices for their everyday use.
The network technology in use at the time IoT was first introduced proved a challenge in integrating the IoT devices with each other. However, the introduction of 4G network opened up opportunities that made IoT devices more powerful but not without shortcomings in global integration. With the introduction of 5G network, the entire world stands to benefit from the interconnectivity of different devices across the globe. It is estimated that in 2019 alone, consumers will purchase up to 1.9 billion smart home devices globally.
Factors undermining its growth
Unstructured data collection
IoT integration is still in its early stages. Developers are yet to develop universal data management and analytic capabilities that can be implemented by any IoT device. As a result, almost 75% of business-related IoT projects have failed. The shortcomings in data collection and analysis negatively affect the adoption of IoT as consumers are only interested in fully operational products that generate revenue within a short time.
Currently, IoT devices do not have the analytic capabilities to encrypt data. More so, the lack of a universal ecosystem which different IoT devices can operate from provides hackers with multiple angles of accessing your data. That is why companies with confidential information are reluctant to adopt this technology. So far, 84% of organizations have fallen victim to data breach and other IoT related attacks. Such cases discourage growth of the IoT market.
IoT devices rely on the collection and sharing of data among themselves. However, the law is yet to fully exhaust the privacy concerns posed by the vast sharing of information. Before IoT, there were only about 20 privacy laws globally. Today, there are over 100 new privacy laws, which still do not cover every concern. This discourages consumers from implementing IoT devices in their work and everyday use.
Despite the undermining factors, the consumer IoT market worth is guaranteed to rise thanks to an increase in campaigns addressing the negative attributes of IoT devices.