IoT: What is the Internet of Things?
With the Internet of Things (IoT) market growing, demand for IoT solutions and services is on the rise. This increase in demand from the market comes in response to a growing number of use cases for IoT (IoT Services Global Market Report 2021). In a report from McKinsey, the estimated economic value of IoT is between $5.5 trillion and $12.6 trillion worldwide, with IoT spending predicted to grow at a rate of 26.7% per year by 2021 and beyond. IoT is a rapidly growing market, so it’s important to understand what it is and how it works. The aim of this article is to explain what IoT is, in simple terms, and outline the phenomenon.
IoT – What is it and how does it work?
The Internet of Things includes everyday objects, like bins, street lights, vehicles and entire buildings, connected with things, i.e. devices. When these devices are integrated with software, sensors, and connectivity, they can function as IoT or smart devices that can collect, send, and receive data using the internet.
We are living in an increasingly connected world and thanks to the availability of wireless communications and the proliferation of low-cost IP connected devices, IoT is now more accessible. There are hundreds of possible use cases and applications for IoT across a wide range of industries, including industrial, enterprise and the public sector. Our next article in this series will explore these use cases and IoT applications in greater detail.
The proliferation of low-cost internet connectivity, has caused devices and systems that were previously non-intelligent and standalone, to become intelligent and connected. Intelligent, connected devices allow for smart control, data collection, and monitoring.
Smart control of systems is beneficial to organisations, enabling them to devote time and resources towards other activities that lead to greater cost efficiencies, provide safe, productive environments and help to reduce carbon emissions and save energy.
Organisations gain the ability to gather and monitor data they would not have the capability to do otherwise. As a result, making more data-driven decisions, transforming operations, and ensuring sustainable energy and cost efficiencies are consequently achieved.
If you are interested in evaluating the power of IoT, North can help you take the first steps to realising the transformational benefits the Internet of Things can deliver.