The IoT Market Has Just Started, And It Will Take 10 Years To Mature

The IoT Market Has Just Started, And It Will Take 10 Years To Mature
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Although all walks of life are optimistic about the huge potential business opportunities brought by the Internet of Things, and have entered the Internet of Things market and launched different Internet of Things IOT products or services, Dean Freeman, research vice president of Gartner, who has been engaged in Internet of Things market research for many years, said bluntly, At present, the Internet of Things IOT market is still in its infancy, and it will take another 10 years for the development of the Internet of Things IOT market to reach a mature stage.

It will take 10 years to wait until the IoT market matures

According to Gartner’s forecast, the personal device market shipped 1.6 billion units in 2009. By 2020, the number will quadruple to reach 6.5 billion units. The Internet of Things IOT devices will increase significantly. Shipments in 2009 will be 90 million units are expected to reach 24 billion units by 2020, and the growth will be as much as 27 times.

Despite the rapid growth of the Internet of Things IOT market year by year, Dean Freeman believes that the Internet of Things IOT market is still in its infancy stage of development, except for a few fast-growing Internet of Things IOT industries, such as manufacturing, in another two years. In addition to reaching the maturity stage, on the whole, it will take 10 years for the IoT market to reach a reasonable maturity stage. It will even take longer for the smart city. “The government must build a smart city. It will take 15–20 years to complete the construction,” he said.

However, the reason why the IoT market takes longer to mature. Dean Freeman pointed out that the biggest bottleneck is that companies have not yet been able to provide end users with higher IoT application value, with many smart home applications. In terms of smart door locks, lights, etc., currently most of them are assisted functions, without bringing users more practical use value.

Dean Freeman said that the Internet of Things IOT market is a highly complex and differentiated long-tail market. He observed that among the more than 200 Internet of Things IOT products currently sold on the market, about 70% of the devices have annual shipments of less than 100 million units. , And some are even far below 100 million units, and only a few thousand units.

He believes that the reason why these IoT products cannot increase sales is often that they did not create IoT value. A successful IoT product must be able to innovate business models. For example, a multinational beer production group AB InBev successfully Using the Internet of Things IOT technology to measure the amount of remaining alcohol in the beer glass, and then change the supply chain, sales, marketing and other models of existing beer production to tap new commercial value.

In addition to the existing IoT business model, Dean Freeman has also seen some new business models in recent years. For example, Ericsson and Philips have worked together to combine smart lighting with Wi-Fi functions to provide Internet services. Ericsson is responsible for providing network equipment for city street lights, and Philips will cooperate with local telecommunications companies to provide Wi-Fi networks that can cover the entire city.

Dean Freeman said that through this business model, it can not only help many cities with limited budgets to build Wi-Fi network environments, but also build an IoT backbone network for smart cities faster.

In addition, Amazon’s smart home voice service Alexa is another brand new example of the IoT business model.

Dean Freeman also observed that in the current IoT IOT emerging market, there are mainly three IoT IOT application areas that have the fastest growth. They are consumer IoT (such as head-mounted devices, smart homes) and industrial IoT ( Security surveillance cameras, LED lighting), and IoT applications in medical applications. On the whole, the current IoT IOT market is still dominated by smart home, car networking and wearable devices.

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