Skip to main content

Explore the Emerging Internet of Everything Ecosystem

Having thoroughly researched the topic, IDTechEx has mapped the Internet of Things (IoT) ecosystem, where things are collaborating with other things without human intervention at the time.

These things have internet protocol (IP) addresses, micro-controllers for local data processing and they sometimes include sensors. The Internet of People (IoP) is very different -- a renaming of the world of smartphones and other internet-enabled personal electronics, it is maturing but adding wearable personal devices and new human interfaces.

Thirdly, there are many other dedicated identification and sensor systems for things but these do not have IP addresses at the item level, using other data standards or proprietary systems. According to the  IDTechEx assessment, these are  NOT truly IoT as a result -- but some include them as part of the topic which leads to widely varying market forecasts.


IDTechEx see two main application sets emerging for IoT – consumer applications, driven by the proliferation of smart phones and tablets which can connect to objects -- including wearable technology, home automation, healthcare and fitness, vehicles and infotainment; and industrial and government applications, such as infrastructure monitoring, lighting, transportation and process automation.

The latter will succeed where IoT solves problems, and this, based on history, can be more challenging that at first glance. Businesses seek a clear return on investment before investing, and the adoption of non-IP based sensor systems has been slower than expected in many respects.

Many systems are used in closed loop scenarios where few nodes are used and there is more value in the complete solution supply. Often there is some degree of supplier lock-in -- using systems dedicated for a particular application which also helps to prevent the hardware from becoming commoditized.

With reluctance from incumbent suppliers, some of that may transition to IoT-IP based devices in time, where hardware will be commoditized.

Then there are other applications such as very low cost, high volume passive RFID tagging 3 billion items of clothing in 2014, where retailers can see sales increase by 3 to 20 percent by reducing apparel stock-outs.

The low price points and rapid volume adoption of passive RFID will see the unit volume of non IP addressed objects being the higher volume opportunity, compared to IoT devices with an IP address which will be more expensive.

The wild card here is Government funded projects. Historically and unexpectedly, governments have made huge investments in wireless identification and sensor systems and they do not seek rapid ROI but do things for improved security, efficiency etc.

Examples are governments mandating smart meters -- the world’s largest mesh network using ZigBee, without which ZigBee would be a failure. Other examples range from tagging animals to passports to road tolling, usually very profitably for suppliers.

Consumer applications will be a great opportunity for IoT. Unlike industrial IoT implementations it is less about ROI and much more emotional, with consumers prepared to pay for useful products and systems.

IDTechEx believes that the business models here are still embryonic and there will be many concepts tried and novelty peaks before strong, sustainable IoT markets emerge. These will usually provide better and new consumer services and propositions -- benefits consumers want and are prepared to pay for.

Popular posts from this blog

Securing the Future of Cellular IoT Apps

The Internet of Things (IoT) continues to expand. According to the latest worldwide market study by Juniper Research, they forecast a 90 percent growth in cellular IoT devices by 2028, with the global number reaching 6.5 billion. This exponential rise presents both exciting opportunities and significant challenges. While the growth of cellular IoT unlocks a vast potential for innovation in smart cities, industrial automation, and remote monitoring, it also requires device management and security advancements. Cellular IoT Market Development Juniper's research highlights the critical role of intelligent infrastructure management solutions. These platforms will empower the users to automate critical tasks such as device configuration, real-time security management, and optimized wireless connectivity. The surge in cellular data usage, projected to reach 46 petabytes by 2028 compared to 21 petabytes today, further underscores the need for automation. This is where federated learning i