IoT Data Exchange Services Seen as Major Marketplace Disruptor
NEW YORK CITY — The total installed base of connected devices worldwide will reach 27 billion by the end of the year and grow to 55 billion by 2022, according to a new report by ABI Research.
The sheer mass of the Internet of Things (IoT) ecosystem is set to bring forth myriad new technologies, devices and communication protocols, all fighting for dominance as established and new vendor entrants attempt to gain a larger share of the market.
However, ABI Research suggests the IoT ecosystem is also evolving at such a rapid pace that its future will usher in a whole new spectrum of data analytics and related services. This is not only set to transform the IoT landscape, but also shift the focus of how companies operate in the coming years by emphasizing data exchange as a new form of currency.
A significant percentage of companies are witnessing this shift although very few of them have a strategy in place. Even leading vendors across multiple sectors are aware that they are sitting on a treasure trove of customer and machine data but are unable to monetize it to its full potential, according to the research firm.
“IoT data sharing, exchanging, and even selling initiatives will not be just additional aspects of the IoT environment. These services are actually the next evolutionary step,” says Dimitrios Pavlakis, an industry analyst at ABI Research. “From the creation of application enablement platforms and innovative management services, to artificial intelligence and machine vision applications, we will experience transformative data governance and exchange services between all intertwined verticals.”
A small number of industry leaders are taking active steps to address these future opportunities while driving transformation, according to ABI. Gemalto’s IoT platform allows for both original equipment manufacturers and cloud service providers to implement flexible monetization models. Ericsson is also at the forefront of monetizing the IoT, tackling connectivity, data management and analytics. Bosch’s platform bridges open source applications and open standards with cloud services and IoT projects.
The findings are from ABI’s IoT Data Exchange Services report, which is part of the company’s M2M, IoT & IoE research service.
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