IoT industry's 2030 estimated value falls, still forecasted at $12.6 trillion

The Internet of Things (IoT) industry could be valued at up to $12.6 trillion globally by 2030, according to McKinsey research.

The article, titled “IoT value set to accelerate through 2030: Where and how to capture it”, by authors Michael Chui, Mark Collins, and Mark Patel details IoT’s potentially massive economic value.

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Despite this, many organisations have struggled to capture and implement its potential, with the struggle to transition and scale seeing the total value of the industry in the lower end of the range scenarios mapped out in 2015.

“The IoT stands at the forefront of our ability to bring together the digital and physical worlds in a manner that could have profound implications for both society and the economy,” the authors say.

“The benefits could be in the form of improving operations, the management of physical assets, and health and well-being, for example. Against that backdrop, the IoT can be the beating heart of digital transformations.”

McKinsey highlights B2B applications to be where the majority of value can be created from IoT, expected to account for 62 to 65 per cent of total IoT value in 2030. However, the value of B2C applications is developing quicker than previous expectations.

Moving forward, China is expected to capitalise the most on the IoT boom, potentially responsible for 26 per cent of the estimated economic value of IoT globally by 2030.

Today, China’s share of IoT device installations sits at approximately 32 per cent, triple the estimated share of emerging economies.

The authors outline the steps necessary to succeed in the deployment and utilisation of IoT at scale:

- Decide who owns the IoT in the organisation
- Design for scale from the start
- Commit
- Invest in technical talent
- Change the entire organisation, not just the IT function
- Push for interoperability
- Proactively shape your environment

In the growth of the IoT market, the authors highlight operational factors as most responsible for the slowing in growth. If it is to reach its potential, proactive steps and confidence must be seen in organisations as the technology develops, they say.