Internet of Things (IoT) Growth Forecast for 2016
Winter gives rise to analyst predictions for the following year, the most high profile of which are made by Gartner at their Annual Gartner Symposium, this year was no different, with many motivating facts and figures, predictions about the following year. Of particular interest is their prediction that there will be 6.4 billion connected things in use during 2016, a 30% increase on the previous year. Previously they have predicted that by 2020 the number of devices will be 20.8 billion, other analyst firms have predicted a far higher number, for example IDC predicts that by 2018 there will be 22 billion connected devices. Whatever the final figure, its big and consequently so are the predictions of investment into IoT for 2016 and on through to 2020.
Gartner: 200,000 IoT Applications by 2018
In 2016 Gartner predicts that IoT services will support services spending to the tune of $235 billion 22% higher than in 2015, whereas IDC term the investment slightly differently and over a different time period, – up to 2018, predicting 200,000 new IoT applications and spending of one and a half times that current spending (as of November 2015), earlier in the year IDC predicted a 19% growth in the IoT market, this seems this has been revised upwards since then.
IT spending will reflect this IoT shift, driving connectivity by prioritizing investment in cloud, mobile, social and big data, collectively a group of technologies referred to as Third Platform Technologies by IDC. According to IDC by 2017 more than half of all IT spending will be in these areas and looking forward to 2020 this figure will reach 60% and more than half of all spending worldwide will be on cloud based technologies.
The car industry is just one example of an industry driving the growth in numbers of connected devices, with US car companies such as GM leading the way in integrating connectivity, declaring that all its new cars would ship with 4G-LTE (2015). In 2016 this trend will only spread, with German car manufacturers dedicating entire departments to IoT connectivity. High profile hacking cases of IoT connected automobiles highlight the security concerns for developing IoT devices going forward.
Gartner: The Value of IoT Data
The value of IoT data is now being realized, consequently business has to limit access to such data with advanced security. During application development, fine-grained access control is necessary for all project data, since teams must collaborate across departments, with all potential stakeholders. A system designed for IoT is primarily is a system suitable for DevOps, ensuring that real-time feedback is automatically assigned. A system that can scale up for handling vast amounts of data with documents management, requirements management and demand management to collect the features for the application. It must ensure complete transparency on all actions taken by team members.
IoT: Growing complexity
Product (systems) development is becoming more complex. Manufacturers should embed previously unknown features in their products that are software, electrical and mechanical components of the product. The development of these features requires the integration of various lifecycles (Product, Innovation, Service, Application Lifecycle Management). To find out more about how the Internet of Things changes the definition of products, and how companies align with this change in the industry, download our white paper for Embedded World 2015 or try codeBeamer, our ALM software that helps you to all phases of the development process including requirements, test, and risk management as well as demand management, development management, and DevOps. In addition, it offers a comprehensive wiki and advanced document management functionality.