Strategy Analytics has shared Internet of Things (IoT) predictions for 2016.
The telecom research report said services, security, Big Data Analytics and connectivity, particularly Low Power telecoms, will play prominent roles as IoT mainstream deployments.
Merger and acquisition (M&A) activity, followed by consolidation will continue throughout 2016 as large, established vendors strengthen their core capabilities and expand their IoT presence.
“IoT is imperative in the shift from selling products to services and, consequently, a shift from Capex to Opex. In 2016, IoT will continue to ramp up as increasing numbers and diverse types of devices become connected, driving a range of ‘as-a-service’ business models,” said Andrew Brown, executive director of Enterprise and IoT Research, and author of the report.
IoT 2016 Security Threats and Trends Survey found that 56 percent of organizations experienced a security breach. 6 percent of survey respondents were able to identify and thwart hacks in advance. In interconnected IoT systems, the risks associated with a successful hack can cause collateral damage.
Analytics software revenues will reach $40.4 billion in 2015 and double to $81.1 billion by 2022, exclusive of service revenues.
The standardized 3GPP path to Narrow Band IoT via LTE-M with Release 13 will provide real competition to LPWA vendors in the market, offering reduced device costs, reduced power consumption, extended coverage and the ability to handle large numbers of devices.
Recent acquisitions of Altair by Sony and Jasper Technologies by Cisco have already topped $1.6 billion and demonstrate that IoT is now table stakes. Strategy Analytics expects IoT M&A activity could potentially reach the $20 billion mark in 2016.
