How Much Money Can Software Developers Make Out of the Internet of Things (IoT)

According to a recent report made by BusinessInsider, there will be 24 billion IoT devices installed by 2020 and around $6 trillion will be invested on IoT solutions over the next five years. Out of the $6 trillion estimated to be invested on IoT solutions, around $2.5 trillion will go to software development efforts.

IoT

The most impacted industries are as follows:

Manufacturing – 35% of manufacturers already use smart sensors, 10% plan to implement them within a year, and 8% plan to implement them within three years, according to PwC.

Oil, gas, and mining – An estimated 5.4 million IoT devices will be used on oil extraction sites by 2020. The devices will primarily be internetconnected sensors used to provide environmental metrics about extraction sites.

Transportation – Connected cars are a top IoT device. It is estimated that there will be over 220 million connected cars on the road by 2020.

Insurance – 74% of insurance executives said they believe the IoT will disrupt insurance within the next five years, and 74% plan to invest in developing and implementing IoT strategies by 2016, according to an SMA Research survey.

Defense – Spending on drones will reach $8.7 billion in 2020. In addition, 126,000 military robots will be shipped in 2020, according to Frost & Sullivan.

Connected Home – By 2030, it’s expected that the majority of home devices shipped will be connected to the internet due to initiatives from device makers to connect everything they produce.

Agriculture – An estimated 75 million IoT devices will be shipped for agricultural uses in 2020, at a 20% CAGR. These devices are primary sensors placed in soil to track acidity levels, temperature, and variables that help farmers increase crop yields.

Food Services – Over 310 million IoT devices will be used by food services companies by 2020. The majority of these devices will be digital signs connected throughout grocery stores and fast-food companies.

Infrastructure – Municipalities worldwide will increase their spending on IoT systems at a 30% CAGR, from $36 billion in 2014 to $133 billion in 2019. This investment will generate $421 billion in economic value for cities worldwide in 2019.

Utilities – Energy companies throughout the world are trying to meet the rising demand in energy. To do this, they will be installing nearly 1 billion smart meters by 2020.

Retail – Beacons, paired with mobile apps, are being used in stores to monitor customer behavior and push advertisements to customers. In the US, an estimated $44.4 billion will be generated from beacontriggered messages.

Hospitality – 31% of hotels use next-generation door locks, 33% have room control devices, 16% have connected TVs, and 15% use beacons throughout the hotel, according to Hospitality Technology’s 2015 Lodging Technology survey.

Logistics – Tracking sensors placed on parcels and shipping containers will help reduce costs associated with lost or damaged goods. In addition, robots, such as the Amazon Kiva robot, help reduce labor costs in warehouses.

Healthcare – An estimated 646 million IoT devices will be used for healthcare by 2020. Connected healthcare devices can collect data, automate processes, and more. But these devices can also be hacked, thereby posing a threat to the patients who rely on them.

Banks – There are nearly 3 million ATMs installed globally in 2015, according the World Bank. Some teller-assist ATMs provide a live-stream video of a teller for added customer support.

Smart Buildings – 43% of building managers in the US believe the IoT will affect how they run their building within the next two to three years, according to a survey from Daintree Networks.

Written by Flavius Saracut
Flavius is the Marketing Manager and Co-founder of Mobiversal, mobile app development company working with startups and established brands like Forbes to create unique mobile experiences. Connect with him on Twitter
@FlaviusSaracut.

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