Kim Gibbons, Chief Marketing Officer, NetNumber
Next month, NetNumber Founder and Chief Strategy Officer Doug Ranalli will speak at 5G World on Protecting the IoT Network.
In preparation for his remarks, we explain how NetNumber is helping operators capture the IoT opportunity today. This first post examines what’s driving the market opportunity. Check back next week as we explore the challenges operators are facing and how NetNumber’s TITAN platform enables operators to deliver IoT services today.
There’s been a tremendous amount of hype and hyperbole about the Internet of Things (IoT), causing some skepticism by operators, enterprises and vendors alike. On-premises IoT—smart devices connected over LAN and WAN hardwired/wireless WiFi networks—have already revolutionized on-site manufacturing controls, physical premises security, and home automation.
Currently, there is a confusing array of IoT machine-to-machine (M2M) interfaces and 2-way protocols for localized IoT, (Bluetooth Mesh/, Z-Wave, ZigBee, etc.), yet these short-distance, on-site protocols and “things” do not make up the entire opportunity in the IoT market, especially in the long-term. While on-premises devices show growth despite a complex array of protocols and platforms, IoT devices that require communications over longer distances will no doubt use cellular networks as this network is already built out, available, and in many IoT scenarios, the best solution available. There is already a strong demand for long distance IoT communications.
There are three markets primarily driving long distance IoT growth: automotive and transportation, utilities and energy and healthcare. Other industries that will make heavy IoT investments over the next 5-10 years include agriculture, state and local governments, defense, retail, and hospitality. In total, the estimated market for IoT by 2020 will amount to $6US trillion in investments. Virtually all will require some form of network operator-based IoT communications.
Clearly there is a market opportunity for operators interested in offering services in support of this trend. Check back next week and learn about the challenges operators may face when addressing the IoT opportunity. In the meantime, share your perspective on what’s driving IoT.