The IoT market is accelerating as growth comes from numerous directions and markets. The internet of things will have a major effect on every market. It will also usher in opportunities in these spaces to start new businesses and grow existing ones. Almost every industry invest in the IoT and leading industries quickly move to implementing IoT solutions that are driving the bottom line.
Enterprises are driving the Internet of Things transformation. Consumer products such as wearables and connected electronics certainly garner a large part of the market, but it is estimated that more than 80 percent of IoT spend through 2020 will be on B2B applications and use cases.
The Internet of Things will be one of the primary drivers of the digital transformation that enterprises will undergo in the coming years, creating a self-learning environment that will drive digital disruption in the physical world. IoT will be a critical piece of this transformation as it allows new business models to emerge and enables changes in work processes, productivity improvements, cost containment and enhanced customer experiences. Here we look into several top trends of IoT and their effect on the market.
Blockchain: The blockchain is playing a major part in the Internet of Things by enhancing security, making transactions more seamless and creating efficiencies in the supply chain. Companies are starting to leverage blockchain in 3 key ways:
Build trust: Blockchain can help build trust between the people and parties that transact together. Watson IoT blockchain enables devices to participate in blockchain transactions as a trusted party. While Person A may not know Device B and may not trust it implicitly, the indelible record of transactions and data from devices stored on the blockchain provide proof and command the necessary trust for businesses and people to cooperate.
Reduce costs: IoT and blockchain can enable participants to reduce monetary and time commitment costs by ultimately removing the “middle man” from the process. Transactions and device data are now exhibited on a peer to peer basis, removing most legal or contractual costs.
Accelerate transactions: IoT and blockchain enable more transactions overall because the “middle man” is removed from the process. Smart contracts allow for organizations to reduce the time needed for completing legal or contractual commitments.
Blockchain for IoT can transform the way business transactions are conducted globally through a trustworthy environment to automate and encode business transactions while preserving enterprise level privacy and security for all parties in the transaction. This allows IoT devices to be used in building blockchain-based solutions to help organizations improve operational efficiency, transform customer experience, and adopt new business models in a secure, private, and decentralized manner, so all participating organizations gain value.
Cognitive Computing: The Internet of Things is at the threshold of a tremendous opportunity. Connecting things with unique IP addresses has been possible for over a decade, but the commoditization of sensors, processor and memory now make it viable to make everyday things move beyond being just connected but actually making them intelligent.
Beyond traditional IoT implementations, cognitive computing is increasing the amount of data to improve the learning environment and increase the possibilities of what can be done with edge analytics, making sensors capable of diagnosing and adapting to their environment without the need for human intervention. Another huge advantage of cognitive IoT is the ability to combine multiple data streams that can identify patterns and give much more context than would be otherwise available.
Cognitive IoT, AI and machine learning are further enabling enterprises to unlock IoT value. An exploding amount of IoT data requires a new approach to gather, analyze and makes sense out of all that data. Such a massive amount of information from sensors and devices can be used to enhance existing data and knowledge, uncovering insights capable of transforming industries. But although making sense out of dark data and edge data is paving our way to revolutionary ideas and technologies, it requires a cognitive approach that can effectively handle increasingly large inputs while generating meaningful output.
Programmable systems thrive on prescribed scenarios using predictable data, and their rigidity can limit their usefulness when addressing the ambiguity and uncertainty of IoT data. Cognitive systems, however, are not explicitly programmed. Rather, they learn from interactions with people and from experiences with their environment. In doing so, they become able to keep pace with the complexity of the Internet of things, identifying data correlations that would otherwise go unnoticed.
Transformational Trend to the Market: Blockchain and cognitive computing are just some of the transformational trends that will shape the future of business. Many firms see big opportunities in IoT trend uses. Besides that, enterprises start to believe that these IoT trends hold the promise to enhance customer relationships and drive business growth by improving quality, productivity, and reliability on one side, and on the other side reducing costs, risk, and theft.