Unlocking the potential of the Internet of Things
June 2015
The Internet of Things—sensors and actuators connected by networks to computing systems—has received enormous attention over the past five years. A new McKinsey Global Institute report, The Internet of Things: Mapping the value beyond the hype, attempts to determine exactly how IoT technology can create real economic value. Our central finding is that the hype may actually understate the full potential—but that capturing it will require an understanding of where real value can be created and a successful effort to address a set of systems issues, including interoperability.
To get a broader view of the IoT’s potential benefits and challenges across the global economy, we analyzed more than 150 use cases, ranging from people whose devices monitor health and wellness to manufacturers that utilize sensors to optimize the maintenance of equipment and protect the safety of workers. Our bottom-up analysis for the applications we size estimates that the IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025. At the top end, that level of value—including the consumer surplus—would be equivalent to about 11 percent of the world economy (exhibit).
Achieving this kind of impact would require certain conditions to be in place, notably overcoming the technical, organizational, and regulatory hurdles. In particular, companies that use IoT technology will play a critical role in developing the right systems and processes to maximize its value. Among our findings:......MUCH MORE including Executive Summary and Full Report
Previously on the IoT channel:
Internet of Things: Hardware Startups, The VC Perspective
"Is Your Portfolio Ready for an Invasion of Disruptive Technologies?"
IBM Bets $3 Billion On Internet Of Things (IBM)
"In Vegas, Imagining the Wonders of the Internet of Things"
I'm not feeling so much drawn to the concept as pushed into it....
Nudge This: "The Internet of Things Will Be a Giant Persuasion Machine"
See also:
Barron's Cover: Is the Internet-of-Things Ready-to-Wear?
The Google of the "Internet of Things" (and Morgan Stanley's 96 page IoT report) SPLK; GE
Companies That Will Benefit From The Internet of Things
Questions From MIT's 'Internet of Things Festival'
"Behind the 'Internet of Things' Is Android—and It's Everywhere" (GOOG)
"2013: The year of the Internet of Things"
"General Electric Pitches an Industrial Internet" (GE)
Former Joey Ramone Infatuant Maria Bartiromo Says Bad Things are Coming to the Market
The Internet of Things: Huggies App Sends You a Tweet Whenever Your Kid Pees...
Internet of Things: "GE teams up with AT&T and Intel to conquer the industrial internet. Here’s its plan"
The Internet of Things: Huggies App Sends You a Tweet Whenever Your Kid Pees..
Pew Research: "The Internet of Things Will Thrive by 2025"
Citigroup on the "Internet of Things"
CES 2015: "Samsung's Smart-Home Master Plan: Leave the Door Open for Others"
The Internet of Things: Everything Is Hackable
The Creepiness of the Internet Of Things
Internet of Things: In Which Izabella Approaches Escape Velocity Edition
Yeah, I Got "Your Smart Home": A Journalist Shows Us How to Hack the Neighbors
Too Funny: "Hello Dave" Shows Up On Hacked Google Nest Appliance Control System (GOOG)
The Internet of Things and Google's Home Invasion (GOOG)
"How Smart Houses And Big Data Will Change Real Estate Economics" (just wait 'til your house gets a virus)
Another Day, Another 3D Printing, Robotic Harvesting, Internet-of-Things FarmBot
