The Internet of Things refers to the networking capability that allows information to be sent to and received from objects and devices (such as fixtures and kitchen appliances) using the internet. The IoT revolution is affecting every machine, device, and industry, hence the term ‘The Internet of Everything’. By 2025, Statista suggests that the total IoT market will be between $3.9 and $11.1 trillion. Skyhook has identified four key dimensions that are rapidly evolving and will continue to have dramatic impact on the proliferation of IoT revolution moving forward.
- Decreased Hardware and Sensor Costs
- Increased Connection Options
- Availability of Location Solutions
- Decreased Cloud Services and Data Storage Cost
Hardware and sensor costs have fallen drastically, allowing both large and small devices to join a connected network easily. The need for more efficient sensors that integrate seamlessly into existing devices and architectures is forcing a paradigm shift among hardware developers. With more IoT sensor technology becoming smarter and more technology vendors entering the marketplace, the cost of these devices has decreased. The average cost of an IoT sensor has declined from $1.30 in 2004 to $0.38 in 2020, expanding the use of these devices.
In addition, the pace of innovation on reducing costs and power while creating new types of sensors and actuators is astounding. According to Allied Market Research, the MEMS market is expected to grow to $122.83 billion by 2026, growing at a CAGR of 11.30%. This innovation will continue to provide new capabilities that expand the scope of what can be done with IoT.
Companies, device manufacturers, and IoT platforms need to understand how to combine shrinking hardware with sensors and actuators to solve specific use cases and how the different components can impact both cost and functionality. Keep these questions and metrics in mind when choosing partners and vendors to fuel your solutions.
2. Increased Connection Options
With a wide variety of network connectivity options available, it’s never been easier finding an affordable solution to meet your device and business needs. Today, you can choose from IoT-specific LTE options from traditional cell carriers to dedicated Low-Power WideArea Networks (LPWAN) for IoT or simply make use of an existing Wi-Fi network.
Getting devices connected is certainly part of the puzzle, but being connected to the Internet vastly simplifies the solution. By 2023, the number of networked devices will be at 29.3 billion, sparking fires across social media and large organizations calling for new use cases and ways to consolidate this massive amount of information. The growth and impact of adoption of a myriad of devices has done nothing but accelerate.
A strong network connectivity will always be crucial for your IoT devices. When designing your solution, keep an eye out on cost, geographic coverage, and data to keep up with user demands.
Location is a critical element for many IoT solutions, and thanks to technological advances, there are many different options for ensuring that your data includes the location information you need to make important business decisions. These positioning solutions go far beyond the traditional GPS/GNSS capabilities and have varying accuracy, power, and network profiles. These options include Wi-Fi, BLE, and cell network-based positioning systems.
Consumers expect a location solution on their connected devices that can locate them anywhere at any time. With the wide variety of high-performing location solutions available in the market today, it can be tricky deciding which one is the best fit. It’s important to explicitly consider the requirements and limitations of your use case so you can select the best location technology to integrate.
The drop in data storage costs has been one of the main drivers of IoT advancements. In 1981 it cost an astounding $300,000 per GB of storage. In 2021, it costs approximately $0.02 per GB of storage, making it a cost-effective solution for businesses. But the speed at which data is created is accelerating rapidly. The IDC predicts that by 2025, there will be 175 zettabytes of data worldwide, with IoT being the fastest-growing data segment.
The growth of cloud computing and the available solutions that run on top of these services provide a convenient and available environment to handle your data needs. The Cloud computing market is projected to reach $832B by 2025, promising continual innovation both within the market but also on top of these platforms. Many of these cloud providers already offer IoT services in a ready-to-use fashion.
All of this data should be stored in a way that makes it easily accessible. With the cost reduction in data storage, you now have more freedom to consider what data you need to acquire and how you need to use that data to continue optimizing your business.
How Skyhook Can Help
Accurate location is a crucial and expected feature of IoT devices. Skyhook’s Precision Location software locates devices using Wi-Fi and cellular signals, either independently or alongside GNSS in a hybrid solution. The solution provides the ability to locate devices even when offline, in an extremely power-efficient manner - offering integration options suitable for the entire spectrum of connected devices. This system enables Skyhook to provide the most accurate and precise location available.
The foundations for the IoT explosion have been set, but companies will need to consider hardware and sensor technology, network connectivity, location technologies, and cloud services as they formalize use cases and choose partners.
If you are interested in learning more about the ‘Internet of Everything’ check out our white paper.