Proving the Business Case for the Internet of Things

Asia-Pacific to spend $59 billion on IoT by 2020: Frost & Sullivan

Iain Morris
December 4, 2014
 
The Internet of Things will offer one of the greatest opportunities for growth in the Asia-Pacific region in 2015, according to new research from Frost & Sullivan.

The market-research player says a number of key industries in the region will undergo IT-driven transformations next year, including energy, media and manufacturing – all of which will be heavily influenced by the IoT.

“By 2017, the IoT market will be one of the fastest growing segments in the Asia Pacific technology industry,” said Andrew Milroy, a senior vice president of Frost & Sullivan’s ICT Practice at Frost & Sullivan. “The total Asia-Pacific spending on IoT is forecasted to be US$59 billion by 2020.”

“This offers real opportunities, especially in areas of manufacturing and consumer technology, which are expected to be two of the fastest growing segments over the next two years,” said Milroy.

While digitization in the manufacturing industry has not kept up with the pace of that in other industries, such as telecoms, this looks set to change in the coming months.

Initiatives by organizations like the Smart Manufacturing Leadership Coalition are aimed at bringing together stakeholders to develop the measures need to facilitate the broad adoption of manufacturing intelligence, says Frost & Sullivan.

Although the wearables market is also flourishing, the company expects the Asia-Pacific to lag other regions in this area over the next few years.

The global wearables market is expected to grow in value from $8.58 billion in 2014 to as much as $38 billion in 2017, but the Asia-Pacific currently accounts for just 4% of the overall opportunity.

“It is expected that wearables such as smart watches and smart glasses with a wider range of functions will eventually overtake all other wearable devices to adopt a premium position in the market,” said Milroy. “Notably, the smart glasses are anticipated to do extremely well, with many promising application opportunities across industries such as healthcare and manufacturing.”

There are also several hurdles that could prevent the broader Internet of Things market from achieving rapid growth.

Security and information privacy remain important issues that have yet to be addressed, for instance.

With smart and connected devices embedded in business processes and tied to critical functions, their ability to negatively affect enterprises and individuals is significant.
 
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