The world is evolving as it has never been before, and it is all about connectivity. Cell phones, tablets, computers, data, software applications all connected to provide the best experience to us, consumers. It is easy to understand the power of connectivity and how it impacts lives when it is related to the consumer.
The answer to that is IoT (Internet of Things). The concept of IoT appeared in 1982, but it gained strength only in 1999 when Kevin Ashton of Procter & Gamble viewed RFID (radio frequency identification) as essential to the internet of things.
IoT is no longer just a trendy buzz word but a real technology trend with plenty of room to grow, and M&A activity will grow with it.
According to a new report on global mobile and fixed IP traffic growth, growth in networked devices will lead to a surge of Internet of things connections by 2022. By 2022, according to Cisco’s annual Visual Networking Index, machine-to-machine (M2M) connections that support IoT applications will account for more than half of the world’s 28.5 billion connected devices.
A recent IDC report stated that worldwide IoT spending was valued at $52.76 billion in 2019 and is forecasted to pass the $1 trillion mark in 2022, reaching $1.1 trillion by 2023.
The pandemic brings a lot of uncertainty about market trends and economic impacts; however, it is possible to notice that technology and connectivity have become even more essential in people's and companies' lives since the pandemic started.
In an interview with ZDNET, Gartner Analyst Peter Middleton shared that networking technology follows Moore’s Law. Moore’s Law states that the speed of computers increases every two years, while the price for them decreases.
As the world evolves with the technology speed, the Internet of Things will be more accessible to all of the industries that will take the benefit of integrated systems to optimize processes, create synergies, and possibly lower costs of services’ expenses. This is one reason industrial CIOs that pursue IoT-enabled digital innovation should consider M&As as part of a strategy to accelerate innovation.
IoT investments help this industry to optimize their processes, monitor equipment, and do preventative and predictive maintenance on that equipment. As mentioned before, RFID is a good example where the manufacturer could use IoT to better control inventory and the products existing in retail stores.
The transportation industry is also investing heavily in IoT. Freight monitoring drives much of the IoT spending in this sector since they are equipped with sensors that help schedule maintenance and optimize fuel consumption.
Smart Grid meters are now widely deployed in the US and several European countries. Another industry that is benefitting from IoT is the oil and gas industry. Connected digital technology can help prevent oil pump damage with the help of IoT.
It is estimated that Discrete Manufacturing, Transportation & Logistics, and Utilities industries are projected to spend $40B each on IoT platforms, systems, and services by the end of this year. Whenever technology platforms and applications and data are the players of a business, it is always important to remind how Security is key and essential to walk side by side with those innovations.
The first answer would be yes since the growth of IoT has been incredible. The world breathes technology, and companies are investing every time more to benefit from all the optimization IoT can provide. This has a considerable impact not only on the business’ structure cost itself but also on the final consumer’s satisfaction in getting services and products faster, easier, and cheaper. However, it is also important that companies clearly understand how the acquisition of an IoT company would be aligned to its core values, bring revenue, and cost synergies (especially costs) and expand its existing business.
Technology is everywhere, and to satisfy consumers’ need for instant feedback, companies face the challenge of bringing relevant and timely insights to consumers at a moment’s notice.
On the spectrum of personal health technology, ranging from wearables to implants, a new entrant will revolutionize how we monitor our health: biosensors printed directly onto the skin.
The Agriculture and the farming industry is going through a significant transformation. Abandoning traditional farming practices, the agricultural industry is embracing digital connectedness and data. Increasingly, they are building an ecosystem of smart farms.