Verizon’s report on the Internet of Things (IoT) market sees it growing apace into broader B2B acceptance, though enterprise organizations continue to face barriers in seamlessly integrating data and security.
An article by Business Cloud News examined the key takeaways from Verizon’s recently released report “State of the Market: Internet of Things 2016.”
Verizon’s research indicates that the number of IoT network connections has grown a substantial 58% between 2014 and 2015. This follows an earlier forecast by IDC which predicts IoT market spending will grow to $1.3 trillion in 2019 from $591.7 billion in 2014.
“IoT is no longer a nice idea, it’s becoming mainstream,” said BCN deputy editor Jamie Davies. “If 2015 was the year IoT gained credibility in the business world, 2016 is the year IoT gains commercial feasibility.”
The report indicates that IoT is finally proving itself as a technology capable of supporting a commercial backbone for B2B. And with big players like IBM becoming increasingly involved in the IoT space, investment in increased B2B capability continues.
IoT is also reaping the benefits from widespread adoption of wearables by consumers and enterprise organizations alike. With wearables paving the way, IoT has more easily transitioned into the B2B sphere, along with many other sectors and manufacturing processes.
Verizon warns of potential security pitfalls
However, the Verizon report said all was not smooth sailing for the near future of IoT, particularly with data usage and security.
A recent report by Oxford Economics commissioned by Verizon indicated that barely 8% of companies are currently utilizing over 25% of the IoT data they are capturing. And in three years, only 50% of the firms surveyed saw themselves utilizing over 25% of IoT data.
“What is the point is spending millions on sensors, connections, storage and data scientists, if the full potential of the technology cannot be achieved,” said Davies.
The report also identified various forms of regulation looming on the horizon that could significantly impact the future IoT landscape. Specifically, Verizon identified security issues as a persistent issue for both consumers and companies, with new regulations threatening severe penalties for data loss due to hacking or other means.
“When you consider the sheer volume of data should IoT reach its potential, future instances of data loss could be disastrous,” Davies said.