Guest post by Daniel Alsén, Mark Patel, and Jason Shangkuan
With new connectivity technologies unlocking opportunities along the IoT value chain, companies must create detailed plans to harness their potential.
The Internet of Things (IoT)—the network of connected “smart” devices that communicate seamlessly over the Internet—is transforming how we live and work. At farms, wireless IoT sensors can transmit information about soil moisture and nutrients to agricultural experts across the country. IoT alarm systems, equipped with batteries that last for years, provide homeowners with long-term protection. Wearable fitness devices—for both people and pets—can monitor activity levels and provide feedback on heart rate and respiration. Although these applications serve different purposes, they all share one characteristic: dependence on strong connectivity.
IoT stakeholders seeking connectivity solutions include radio and chipset makers, platform vendors, device manufacturers, and companies in various industries that purchase IoT-enabled products, either for their own use or for sale to the public. These companies can now choose from more than 30 different connectivity options with different bandwidth, range, cost, reliability, and network-management features. This wide variety, combined with constantly evolving technology requirements, creates a quandary. If stakeholders bet on one connectivity option and another becomes dominant, their IoT devices, applications, and solutions could quickly become obsolete. If they hesitate to see how the connectivity landscape evolves, they could fall behind more aggressive competitors.
Cellular 5G networks—now being refined—might eventually become a universal solution for IoT connectivity. Although some global telecommunications networks and industrial applications now use 5G, this technology will not be widely available for at least five years, because of high development and deployment costs. With annual economic benefits related to the Internet of Things expected to reach $3.9 trillion to $11.1 trillion by 2025, companies cannot afford to defer their IoT investment until 5G arrives.
To help business leaders identify the connectivity solutions that best meet their current needs, we analyzed 13 sectors, including automotive, manufacturing, construction, and consumer, where IoT applications are common.1In each sector, we focused on connectivity requirements for likely use cases—in other words, the tasks or activities that may be most amenable to IoT solutions. We then identified the most relevant connectivity solutions for each one. In addition, we examined business factors that may influence how the connectivity landscape evolves, as well as the elements of a strong connectivity strategy.