The Internet of Things (IoT) can be defined as a scenario where objects, animals or people are provided with unique identifiers and the ability to transfer data over a network without requiring human to human or human to internet interaction. In the internet of things, a thing can be a person with a heart rate monitor implant, a farm animal with a biochip transponder or an automobile that has built-in sensors to alert the driver when the tire pressure is low. Any other manmade object that can be assigned an IP address and provided with the ability to transfer data over a network can be defined as a thing in the internet of things. The main transition for IoT will be from what and why to where and how.
In less than 10 years it might be possible to have internet in your car, fridge, TV, blender, air conditioner, front door and even your wallet. So far, the internet of things remains closely associated with machine to machine communication in manufacturing and power, oil and gas utilities. Products built with M2M communication capabilities are often referred to as being smart.
Kevin Ashton, cofounder and executive director of the Auto-ID Center at MIT, first mentioned the Internet of Things in a presentation he made to Procter & Gamble. Here’s how Ashton explains the potential of the Internet of Things:
“Today computers — and, therefore, the Internet — are almost wholly dependent on human beings for information. Nearly all of the roughly 50 petabytes (a petabyte is 1,024 terabytes) of data available on the Internet were first captured and created by human beings by typing, pressing a record button, taking a digital picture or scanning a bar code.
The problem is, people have limited time, attention and accuracy — all of which means they are not very good at capturing data about things in the real world. If we had computers that knew everything there was to know about things — using data they gathered without any help from us — we would be able to track and count everything and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling and whether they were fresh or past their best.”
Here is an infographic which states that by 2020, every human being on earth will be connected to 10 devices. This new wave of device overload will open up revenue and advertising streams to a new level.
- 95% of C-Level executives expect their company to be using IOT in three years time.
- At least 58% of C-level executives believe that IOT will unlock new revenue opportunities from existing products and services.
- The potential revenue for IoT is estimated between U.S. 1.2 to 14.4 trillion $.
- As many as 40 to 80 billion devices will have connected access by 2020.
- There will be 10 connected objects for every man, woman and child on the planet.
- In 2013, total spending on IT equipment was U.S. 404 Billion$.
- 5 billion smartphones in use by 2014 will grow to 8 billion by 2018.
One of the most prominent Internet of Things, soon to appear, will be wearable technology. With the introduction of Android Wear, Google Inc (NASDAQ:GOOG) is looking to grab the wearable market. For exercising, sports or general information, wearables will soon be an exciting addition to a vast digital arsenal.