The Internet-of-Things (IoT) sector is driven largely by consumer demand for greater personal information in real-time. The ability for smartphones and wearables to track health and fitness (such as heart rates and steps) offer a couple of examples of such personal information, thanks to the Internet-of-Things. Smart homes, which include smart appliances (such as a coffeemaker dispensing a cup at 6 am or the thermostat automatically turning on the heat after 5 pm) are other examples that are key to the IoT market.
IoT, of course, is the network of interconnected devices that can exchange data or information. Consumer IoT, which includes wearables and smart-home designs, accounts for about 40 percent of the IoT market in India. This is fixed to change, with consumer IoT’s share growing to 45 percent by 2020, because of the e-commerce inflation and regulatory reform taxes, such as GST.
Beyond consumer electronics, the Internet-of-Things also offers potential applications and benefits in several industries — such as water, energy, traffic management, surveillance, defense, and others. Many governments are planning smart cities, which use IoT-driven data and technology to improve sustainability, infrastructure, energy use, and transportation.
An advanced smart grid can be used to remotely monitor and manage everything from traffic lights and congestion to utility usage and weather reports. The aim is to create more manageable, affordable, and ideal living conditions for residents.
However, the growth and success of this market are based on:
- Quick and high-quality connectivity
- Continuous real-time monitoring
- Exchange of valuable and accurate data
- Near instantaneous insight of a particular data set
According to experts, the largest increase and development in the IoT market has been experienced in the industrial, energy, and healthcare sectors. However, nearly all organizations that can effectively leverage the data generated by the IoT are expected to gain a market advantage.
Additionally, the IoT market offers great opportunities to those in the business of analytics and intelligence, software development, connectivity, information services, and the associated hardware, appliances, and parts with IoT-capable devices.
In fact, a recent market survey conducted by Electronics Bazaar found that about half the study participants expected “smart” services, such as business intelligence (BI) and analytics, would make up a significant portion of the IoT market. More recently, similar survey members gave nearly equivalent importance to BI and analytics but included connectivity and information services as top roles expected in IoT market adoption — including successful revenue outcomes.
According to 33 percent of these survey members, value production will also stem from the software, hardware, services, and integration activities implemented by the technology companies that facilitate the IoT. In this sector, device connectivity is considered the key aspect of all IoT adoption. Not surprisingly, this is where the demand for communication devices, hardware, and services plays a role at the consumer level.
Electronics is important here. Every IoT device requires, at a minimum:
- A microcontroller to combine intelligence to the device
- One or more sensors to provide data collection
- One or more chips for connectivity and information transmission
- Memory capabilities
The challenge here is to design highly effective microchips that require very low power for various applications. The semiconductor businesses that can efficiently deliver such capabilities within a reliable and functional device will likely advance quickly in the market. That business, in turn, may signify a vital growth opportunity for semiconductor members and their customers.
IoT in India
The IoT market in India is predicted to grow at a CAGR of more than 28 percent between 2015 and 2020. The Internet-of-Things has offered the country diverse workforce opportunities and costs (for those businesses implementing the technology for increased operational effectiveness).
The most popular markets for IoT adoption in India include: Consumer electronics, BFSI, automotive and transportation, home and construction, energy and conveniences, retail, supply chain, and logistics areas, and manufacturing.
Despite this growth, there are challenges. A demand for uniformity across all IoT-enabled devices is nearly impossible in all markets. This would require:
- Increased and reliable connectivity between devices, practices, and services using one set of protocols
- Real-time observation and tracking of co-operative systems
- Automated processes that work across multiple segments
- Established safety and data-protection protocols (which is a must)
Nevertheless, government-mandated projects, such as smart cities and grids, and intelligent transportation, are expected to develop and test the requirements and provide businesses with revenue-generating IoT opportunities.
The industrial IoT market in India, which currently accounts for 60 percent for the total business. It will require a combination of appliances or devices with networked sensors and quick-access data for effective operations.
Although production is at an early stage in India, industrial applications of IoT in manufacturing, logistics, and automotive and transportation are expected to drive IoT revenues by 2020. Influential Indian IT corporations are venturing on new digital technologies, which include artificial intelligence, machine learning, and IoT (including related analytics), to broaden revenue streams, keep up with consumer demands, and accelerate manufacturing in the country.