By Telecom Lead: Global connected devices will reach 24 billion and
the Connected Life will open up new revenue streams, facilitate new
business models, drive efficiencies and improve the way existing services are
delivered to create a global business impact worth as much as US$4.5 trillion
by 2020, according to the GSMA and Machina Research.
In 2020, revenues from the sale of connected devices and
services, and revenues from related services, such as pay-as-you-drive car
insurance, will be worth US$2.5 trillion, US$1.2 trillion of which could be
addressed by mobile operators and the remainder by the broader Connected Life
ecosystem, the study reveals.
By 2020, the study predicts organizations, governments
and consumers will get benefit worth US$2 trillion by 2020 through the cost
reductions and service improvements.
Today the connected devices market is dominated by
mobile phones, but this will change in the future as a new wave of
smartphones, tablets, consumer electronics and M2M devices connect everything
from cars to health services and even entire cities,” said Michael O’Hara,
chief marketing officer, GSMA.
For instance, in 2020, the global healthcare space
alone could recognise US$660 billion in cost savings and improved services from
the deployment of mHealth solutions, helping to reduce the cost of
universal healthcare.
The study says that connecting cars will also help the
global automotive industry to profit from the Connected Life, with its
ecosystem set to generate US$624 billion in revenues and reap US$727 billion in
cost reductions and service improvements.
By 2020, it said that mobile connectivity in cars will
increasingly become a must-have as demand grows for services such as stolen
vehicle recovery, insurance telematics and entertainment.
Machina Research anticipates that 90 per cent of new cars
in 2020 will have some form of in-vehicle connectivity, adding US$600 billion
to value of the Connected Life.
|
Top Ten Connected Applications in 2020 |
Value to the Connected Life |
|
Connected Car |
US$600 billion |
|
Clinical Remote Monitoring |
US$350 billion |
|
Assisted Living |
US$270 billion |
|
Home and Building Security |
US$250 billion |
|
Pay-As-You-Drive Car Insurance |
US$245 billion |
|
New Business Models for Car Usage |
US$225 billion |
|
Smart Meters |
US$105 billion |
|
Traffic Management |
US$100 billion |
|
Electric Vehicle Charging |
US$75 billion |
|
Building Automation |
US$40 billion |
