The Internet of Things Heralds New Opportunities for Enterprise Mobility Leaders in 2016
Frost & Sullivan predict the rise of the IoT market, though they warn that cyber security risks are also increasing in the new year.
Enterprise mobility leaders are increasingly discovering the opportunities with the Internet of Things, and a new report from Frost & Sullivan states that the IoT market is expected to continue its transformative potential across industries in the foreseeable future.
The consulting firm further says that IoT in the Asia Pacific market alone is valued at US$24.2 billion in 2015 and it will reach US$79.3 billion in 2020, with services accounting for nearly three quarters of the market in 2020. They go on to say that this offers real opportunities, especially in areas of transportation, logistics, manufacturing and consumer technology, which are expected to be fast growing segments over the next few years.
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The report states that the Internet of Things market is evolving from one where the focus is on connecting of devices to one of using the information collected to create new services and business models. This is fundamentally changing the way companies market their products and services.
Mark Koh, Senior Industry Analyst, ICT, Frost & Sullivan, Asia Pacific, explains: "With IoT, companies are moving from transactional product sales to a longer term relationship and service model, where everything can be offered as a service or 'servicetisation of industries'.
"As IoT moves from consumer and enterprise centric applications to vertical/industrial applications, the potential growth of IoT is expected to exponentially grow over the next 5 years."
There will also be a shift towards computing decentralisation as the IT industry gradually shifts towards using more IoT technology. Examples include P2P networks becoming more widely used, allowing connected devices to communicate directly with each other rather instead of being routed through a centralised data centre.
Andrew Milroy, Senior Vice President, ICT, Frost & Sullivan, Asia Pacific, says: "The major IoT opportunities will be in the deployment and management of IoT projects. This will lead to a requirement for new skill sets which are currently scarce in the APAC region."
Milroy also expects IoT to be heavily influenced by ‘Cloudification’ and this will lead to its own set of challenges, including the large amounts of data involved, realignment of existing processes and security solutions.
However, while there is a growing market of opportunities within Internet of Things, cyber security remains paramount as the security paradigm is increasingly shifting to the physical domain in 2016. The increasing use of mobile devices and the gradual spread of the Internet of Things will offer many more attack vectors, and increases the risks of successful attacks enormously.
Frost & Sullivan highlight that the ongoing convergence of operational technology with information technology will enable the successful attackers to have much greater impacts than before. Industrial control systems are more vulnerable than ever before and security will be the number one consideration as these systems are modified or developed.
In 2016, it is evident that security will be prioritised and built into the architecture of any new systems before they are implemented, the consulting firm concludes.