IHS Warns of Hurdles to Realizing All IoT Benefits
Following a CES jam-packed with Internet of Things and smart home hopefuls, IHS in a post-show analysis identified opportunities and challenges for the fledgling market. Privacy and the need for standards are formidable challenges facing the IoT, but huge opportunities…
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exist in an “increasingly tech-savvy consumer market” for the entire chain from semiconductor companies to appliance makers, IHS said. It predicted a potential connected universe of 30-90 billion devices within five years. Competing technologies and standards threaten growth within the IoT ecosystem, said IHS, citing Wi-Fi, Bluetooth Smart, 6LoPAN, ZigBee and cellular. At CES, groups such as the Open Interconnect Consortium, backed by Atmel, Broadcom, Dell, Intel and Samsung, were working to establish a connectivity protocol to enable interoperability among connected devices within a few years. The cost to connect within the IoT is “cheap” enough to make the IoT a reality this year, said IHS. Sensors will drive opportunities in consumer devices, and “cost-effective silicon” will drive shipments of nearly 12 billion sensors into consumer and mobile applications, up from 5.6 billion in 2012, it said. Data collected from the sensors have “vast implications” as the information becomes aggregated across many users in the cloud, said the industry researcher. The ability to analyze large amounts of data to track behavioral trends -- such as the way millions of consumers use devices -- can create “a level of predictive intelligence that is completely novel,” said IHS. The ubiquity of the smartphone and its ability to communicate via Wi-Fi, Bluetooth and cellular positions it well as the gateway to the IoT, IHS said, but the smartphone has to continue to learn more languages as the IoT expands. On smart homes, “a holistic approach to IoT problem solving is needed,” instead of the piecemeal approach now offered by disparate devices, IHS said. It envisioned a “package” approach combining hardware, firmware, middleware, application software, cloud services and other components delivered by solution providers as the “key to integration.” The smart home market is still a few years away from mainstream penetration due to the lack of interoperability among different systems, which is "causing confusion for the average consumer,” said IHS.