Report Moves “Beyond The Hype” To Map True Value Of IoT
The Internet of Things is already impacting the way in which goods are made, refined, and distributed, and we are still just beginning to tap into all that can be achieved in this realm.
Taking full advantage of all that IoT has to offer calls for new business models and technological innovation. Just how much value is waiting to be realized?
A study by consulting firm McKinsey and Company entitled “The Internet of Things – Mapping the Value Beyond the Hype” revealed that the IoT’s total economic benefits could range from $3.9 to $11.1 trillion by the year 2025. Consumer value is estimated to range from $2.6 to $7.6 trillion by then, while consumer surplus could reach as much as $2.8 trillion. By considering crucial factors such as asset utilization, productivity gains, and time savings, they were able to estimate the true value that awaits.
Value By Sector
The value that is expected to be created by the health and wellness sector will be at least $170 billion through applications such as improving wellness, monitoring illnesses, and managing them. The home sector, meanwhile, should note economic gains of at least $200 billion thanks to uses in security, energy management, and task automation. Factories will note the biggest gain, with a minimum of at least $1,210 billion through optimizing operations and inventory, predictive maintenance, and health and safety.
The firm also estimated that offices could see gains of $70 billion upwards thanks to worker monitoring, organizational redesign, building security, and energy management. Retail environments could note significant gains of at least $410 billion thanks to smart CRM, inventory control, layout optimization, and automated checkout, among others. Other areas that were examined to determine the overall total include worksites, vehicles, cities, and outside sectors.