The McKinsey Global Institute’s latest report, ‘The Internet of Things: Mapping the value beyond the hype’, is the most optimistic IoT forecast yet from a major research institute – valuing the economic impact of the IoT at $11 trillion by 2025.
The report analyses more than 150 use cases, ranging from people whose devices monitor health and wellness to manufacturers that utilize sensors to optimize the maintenance of equipment and protect worker safety.
The report concludes that the potential value of the IoT will be between $4 trillion and $11 trillion, broadly falling in line with the PwC report that was released in April of this year. According to the report, 70 per cent of this value will come from B2B rather than consumer uses whilst manufacturing, smart cities, automotive and transport are regarded as some the verticals that have the most potential value.
Interestingly, the report highlights interoperability as a key factor in enabling the IoT to scale, determining that on average, 40 per cent of the potential value depends on interoperability. The GSMA Connected Living programme is playing a leading role in addressing the issue of interoperability, having developed the GSMA Embedded SIM Specification which has since been widely endorsed across the IoT ecosystem.