IoT market on a growth path for 2015 | ALC Training News
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Like 2014, this year will see a number of IT trends continue to expand across the globe as greater numbers of businesses begin to realise the benefits of integrating them in operations.
Trends such as the cloud and big data have been mainstays in recent years, but they could soon be joined by growth in the Internet of Things (IoT) analytics space.
A new report from ABI Research has found that the analytics market could reach US$5.7 billion this year, with growth being primarily driven by startup companies.
IoT analytics on a growth fast track
The market for integrating, storing and analysing IoT data will climb significantly this year, continuing to grow beyond to 2020 where it's estimated that it could account for almost one third of global big data analytics revenues.
"About 60 per cent of this year's revenues [will] come from three key areas: energy management, security management, as well as monitoring and status applications. Within these segments, we can generally find analytic applications that reduce the cost base of asset-intensive operations," explained Aapo Markkanen, a principal ABI analyst.
"These early growth drivers also have in common the fact that the economics of IoT connectivity align easily enough with the requirements of analytic modelling."
Obviously, businesses will need to start paying attention to the IoT analytics space. But what exactly is the IoT?
This trend is basically used to describe the interconnection of various devices and sensors, usually with the goal of relaying information back to a central server. As there is no limit to how many sensors or devices gather information, unlimited data is available.
In turn, this creates significant opportunities for analytics.
The ABI report noted that making sense of IoT data was often quite difficult, given the need for expertise when it comes to analysis.
"These kinds of factors create a certain mismatch with many leading technologies that have been designed for more traditional, 'digital-first' analytic environments. This, in turn, is attracting a flurry of startup-level activity aimed at filling the gaps," the report stated.
These startups are driving IoT analytics innovation, with ABI noting the efforts of several startup companies.
ParStream, for example, is focusing on geo-distributed architecture, while Cyberlightning is developing unique 3D visualisation technology.
"[These startups] address some of the problems that usually come up in discussions with end-users."
The value of IoT analytics
With the IoT market poised for such substantial growth there are real opportunities for a number of businesses – not just startups. Organisations from a number of sectors can start to gather this high specialised information.
A factory, for example, could place hundreds of sensors in a piece of manufacturing equipment, gathering data on pressure, air flow and temperature in various locations. This information can then be analysed and used to better understand exactly how the engine works and where improvements could be made.
Similar uses could be seen in a data centre, with sensors used to track temperature in pieces of equipment. The real benefit with the IoT is versatility, as the the sensors can be put to use across a number of areas.
Effectively managing IoT projects
There's no denying the benefits of the IoT, and businesses will certainly start utilising the trend in greater numbers over the next few years.
PRINCE2, a project management framework, could be one the best ways to ensure the trend is managed correctly. This method has been used by companies and governments across the globe time and again – and for good reason.
It's able to ensure that projects are always managed effectively and without problems.
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