(Today Fred de Haro featured in an article from Natwest Only Connect)
- In 2015, the value of the internet of things (IoT) to the UK economy was estimated at £13bn
- Manufacturing is expected to experience the greatest economic benefit from IoT
- Innovations likely to filter down to SMEs from larger companies
- Concerns over data security must be addressed
There has been much talk of the internet of things in recent years. It may sound like a glib buzzword, but the truth is it’s here to stay and will have a huge impact on business.
The internet of things (IoT) sees the physical world become a massive system of data and information through the deployment and embedding of sensors and telematics (movement-monitoring technologies such as GPS) in physical objects connected to networks.
But it doesn’t just connect objects to the network; it also connects customers to companies and gives them real-time data on devices around the world to help them make faster and better decisions.
The combination of big data analytics and IoT is expected to add £322bn to the UK economy from 2015 – 2020, according to research by the Centre for Economics and Business Research (Cebr) and analytics software leader SAS. Over that period, the economic benefit of IoT alone is expected to reach £81bn, equivalent to an average of £14bn per year, or 0.7% of annual GDP.
According to the report, ‘The Value of Big Data and the Internet of Things to the UK Economy’, in 2015 IoT was estimated to be worth around £13bn. As adoption rates rise and businesses benefit from efficiency, innovation and creation gains, the value of IoT is predicted to rise to £16bn a year by 2020, representing a 0.8% share of forecasted GDP.
Sectors set to gain from IoT
The manufacturing industry is expected to experience the greatest economic benefit from the use of IoT, accumulating to £27bn over the period 2015 – 2020. Industry is also likely to receive a £57bn boost through the use of big data. IoT adoption will increase at a slightly higher rate from 30% in 2015 to 43% by 2020.
But what other sectors will see the benefits of IoT?
Fred’s extracted comment:
…Security top of the agenda
But IoT is not without its drawbacks. According to Fred de Haro, chief executive of IoT module manufacturer Pycom, data security is top of the agenda, and the IoT industry is working very hard to keep ahead of cyber criminals and make entry and theft as difficult as possible.
“Like anything, risks should be assessed with every new installation, regardless of whether this is for personal or business use. Each individual and business must be responsible for educating themselves and understanding all the risk associated with their IoT solutions, consenting to the fact that the risks do exist,” he says.