March 20th 2015—UK Chancellor, George Osborne, announced the 2015 Budget earlier this week, which included a pledge to invest £40m in the Internet of Things (IoT) and £100m in driverless cars. Whilst the exact details have yet to be clarified, it is a clear sign that the British Government recognises the huge economic potential of the IoT and is willing to aid its development by allocating funds to national research institutes.
In 2013, non-departmental public body, Innovate UK, committed £24m to the ‘Future City Glasgow’ project, which aims at developing the city’s infrastructure and services through the use of open data, apps, portals and citizen science mapping. Although investments like this, and those in the 2015 Budget, are but a small proportion of public funds, those in the industry can be reassured that officials, policy makers and elected representatives in the UK are turning the page and publicly acknowledging that the IoT is now firmly on the political agenda.
Yet this commitment is part of a larger global trend, in which an increasing amount of states are realising that the IoT will be integral to their country’s infrastructure, services and overall economy. Several states in the Middle East, particularly Saudi Arabia and Abu Dhabi, have been developing their smart city capabilities for some time. In 2008, the Saudi Arabian government announced that it would be committing $60bn into building four new smart cities, in order to diversify the nation’s economy. The Saudi Government has partnered with multiple companies to drive the project forward including mobile network operator, Orange, who will also play a role in transforming the nation’s telecommunications and other infrastructure projects.
In June 2014, the Indian Government made an even more ambitious pledge to develop 100 smart cities, beginning with a $1.2bn investment over the following twelve months. With much of the additional funds expected to come from foreign investors, this announcement will encourage those in the ecosystem to collaborate, hastening development and the creation of additional business opportunities.
At Mobile Congress 2015, the Innovation City, which contained an array of state-of-the-art M2M and IoT devices and services, attracted a record number of attendees. Much of what was showcased took place in the context of the smart city and connected home, and provided insight into how the delivery of services can be made more efficient and cost effective. As interest in the IoT intensifies, we can expect to see steady increase in public investment in the broader IoT ecosystem, making it easier for the industry to innovate and develop new revenue streams.