As the fourth Industrial Revolution drives new waves of technological advancement, few tools rival the internet of things in their ability to completely overhaul the lives of businesses and consumers. Between both markets, thought leaders and early adopters have embraced the potential of connected devices — gleaning new insight into critical behaviors or simplifying tasks, for example. As the number of devices which power the IoT grows — with IHS projecting 125 billion devices by 2030 — so do the opportunities for businesses and consumers alike to improve their own digital experiences.
Despite worldwide IoT spending slated to reach $772 billion in 2018, the lion’s share of this investment is on the enterprise side. According to IDC, of that $772 billion, only 8% will be spent on consumer devices. Widespread adoption of connected devices among consumers has yet to reach the mainstream, but a new study from CSG indicates that day is coming sooner than we might think. “The Future of the Digital Experience: IoT Edition” (registration required) polled more than 2,000 consumers between the ages of 18 and 64 across the U.S., U.K., Australia and Canada to evaluate consumer understanding, usage and sentiment about current and future IoT applications. Here are a few of the key findings:
- In the next three years, nearly half of consumers want to see IoT simplify tasks in the home.
- More than a third of consumers who don’t use smart home technology are interested in exploring its capabilities.
- One in five consumers believes IoT will be seen as essential to one’s lifestyle in five years.
Consumers are beginning to expand their IoT horizons, moving beyond wearables towards in-home assistants, smart appliances, cars and cities. As they stand on the precipice of widespread adoption and integration, their enterprise counterparts are faced with a significant question: How do they build a business model that will enable them to monetize their IoT strategy?
While CSG found that today wearables are the most popular IoT device with 45% adoption, connected devices are also growing throughout homes and cities. Thinking more holistically about the service ecosystem required to launch and scale new IoT services will allow enterprises to seize market opportunities in real time and continue to push the connected consumer experience forward.
For consumers and businesses, the internet of things is supporting a wider array of services. For enterprises, there is incredible potential to create engaging experiences and new sources of digital revenue. The leading businesses will prioritize where these two paths meet, to be prepared for a digital economy driven by a network of connectivity while taking advantage of an ecosystem of services that can quickly adapt to the business models introduced by IoT.
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