Market researchers are touting a huge explosion of connected devices for the Internet of Things (IoT). Smart electronics OEMs are looking to this market to provide huge demand for new products and services. These same companies are also hoping to enhance their own businesses with these same technologies.
According to new research from International Data Corporation (IDC), the worldwide Internet of Things market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020 with a compound annual growth rate (CAGR) of 16.9%. Further, currently, 56% of U.S. manufacturers are researching or piloting IoT projects in hopes of lowering operational costs, improving customer service and support, attracting new customers, and increasing business efficiency, according to IDC.
“Developing a roadmap for IoT and an IoT foundation will ensure that the investments satisfy manufacturers IT and business expectations. IT organizations can and should play an important role in an efficient and agile rollout of IoT across the various use cases in manufacturing,” said IDC Manufacturing Insights Practice Director Kimberly Knickle in a press release.
The market research firm outlines three unique areas where IoT inititaives are being focused in the manufacturing environment:
- Smart manufacturing : Applying IoT to the overall production process and individual assets, to increase production output, product quality, or operations and workforce safety and reduce resource consumption.
- Connected products : Applying IoT to vehicles and industrial machinery, to enhance product performance.
- Connected supply chains : Applying IoT to increase visibility and coordination in the supply chain, improve assets and inventory tracking, either inbound or outbound, to increase supply chain efficiency and enhance integrated business planning.
The infographic below from IBM offers a handful of other use cases that may appeal to electronics organization. Let us know in the comments section below which of these examples you find most compelling.
— Hailey Lynne McKeefry, Editor in Chief, EBN