by Angela Guess
Tim Maverick recently wrote in Wall Street Daily, “The Internet of Things describes the network of physical objects in our lives that are embedded with electronics, sensors, software, and connectivity that allow these objects to collect and exchange data. A lot of Wall Street’s focus and, therefore, its headlines have highlighted the consumer end of the IoT. But that market is likely to be dwarfed in size by the Industrial Internet of Things (IIoT) as more and more of our material wares become ‘smart.’ So said General Electric CEO Jeff Immelt last autumn, when he stated, ‘The industrial internet will be much bigger than the consumer internet’.”
Maverick goes on, “So what exactly is the Industrial Internet of Things? Microsoft CEO Satya Nadella explained that the IIoT will turn everyday manufactured goods into what he calls ‘systems of intelligence.’ By 2020, revenues generated from the IIoT market will be about $225 billion, according to General Electric. In comparison, GE forecasts the consumer IoT will only generate about $170 billion by that time. The venture capital world has taken notice of the IIoT’s potential for massive growth. Last year, investment into IIoT soared by 76% to more than $1 billion, according to research by CB Insights.”
He continues, “With the IIoT focusing on software and big data, one would think technology companies have the upper hand – especially since the industrial software market will be a big part of the IIoT. GE forecasts the software market alone will reach $100 billion in size by 2020. Microsoft’s interest then makes a lot of sense – as does the interest of other big technology names. The IIoT is the reason behind the $1.4 billion purchase of Jasper Technologies by Cisco Systems. Jasper is involved with the connectivity aspect of the IIoT. Another tech company with big plans for the Internet of Things is Amazon.com. It announced a big push into the realm last October.”
Photo credit: Flickr/ shoothead