Internet of things is approaching

Original author: Ross Rubin
  • Transfer

We are starting a series of translations about the emergence of a new category of devices that we are all watching. Here we listen to the thoughts of analytical companies, universities and predict the further development of the Internet of Things.
Just do not be offended by the big pictures!

The Internet of Things will take over the world

IW penetrates a wide variety of devices and applications that can be used in all industries and thus connect a huge number of devices. Nearly 2 billion devices are involved today and 9 billion by 2018, according to BII estimates. Very bold forecasts, right? For example, applications for the car insurance industry that can determine the real amount of time spent by the driver on the road can become truly valuable. The forecasts of marketers and technical firms agree that the use of IW by enterprises will bring trillions into economic development.

An ecosystem of startups selling home automation, lighting, heating and home security systems connected to the Internet is already expanding among consumers of IW.

The main obstacles to the production of IWs are still immature and rapidly changing technologies and standards, as well as the large scale and uncertain coefficient of investment inflows into IW-type projects.

Over the past five years, smartphones have taken a strong leading position as a communication device that helps solve everyday tasks. It was followed by a tablet with a mobile operating system and a touch interface. The
Internet of Things or IW is a class of devices that, according to the definition of Global The McKinsey Institute, "can monitor their environment, report on their status, receive instructions, and even act on the information they receive."
Unlike smartphones and tablets, IW objects often have a limited user interface and can only collect and send data to other devices.
The Internet of things, having spread everywhere, will bring our daily life to a new level of functionality, efficiency and convenience. IW transforms once inert objects, tools, and devices into the category of smart devices equipped with a sensor that can communicate with other devices familiar to us, in particular PCs, smartphones, and tablets.

As soon as IW comes into use, it is easy to imagine the whole categories of consumer applications and business applications involved in this new system, which can be described by the term “connected life”, this includes construction and domestic automation, heating and air conditioning systems, traffic control ( for example, a smart traffic light), the organization of care for the elderly, security systems, as well as Internet-connected cars and outdoor advertising.
What devices will be used to control the IV? There will be a certain distribution of user interfaces. For example, touch screens could appear on our refrigerators and thermostats. But it is more likely that smartphones and mini-tablets will become remote means of controlling IW devices.

Measuring the Present and Future Scale of IW

The trend of IW will be an increase in the number of devices connected to the Internet.
In fact, IW will soon lead to the fact that most devices can be connected to the Internet, and by 2018 their number will be approximately equal to the number of smartphones, smart TVs, tablets, laptops and PCs combined.
The Internet of Things will be an increasingly huge number of connections, 1.9 billion devices by the end of the year and 9 billion by 2018, according to BII estimates.
The value of IW will grow exponentially. Ericsson depicted this in the form of three waves: First, connect devices that serve consumers, then IW expands to connected devices in enterprises, and finally its use becomes widespread through government and public processes.
Forrester found that most IT executives have a positive perception of IW and are going to start using it in the coming years.
How Big Will the Internet of Things Be? In terms of overall economic value, in enterprises such as the McKinsey Global Institute and Cisco, the number of projects will grow trillions of times. The very name “Internet of things” suggests that it will not be an autonomous industry or category, but will be a certain class of devices and technologies that can be used in enterprises. To provide some numerical perspective, suppose that global GDP fluctuates around $ 70 trillion.


Cisco believes that IW will bring in more than $ 14 trillion over the next ten years, as it will help global corporations and organizations become more efficient and improve their products and services to customers. However, this is not the amount of income. Rather, it is the calculation of the probable total economic profit that will be obtained from the growth of the IO.
Machina defines “connected life market income” as the sum of the total turnover to $ 2.5 trillion for 2020.
According to Markets and Markets , it is expected that the Internet of Things or the inter-machine interaction market, which cost $ 44 billion in 2011, will increase to $ 290 billion by 2017.
Obviously, the hype around IW technology is starting to intensify. For example, there have been several serious mergers and acquisitions in this area. Here are some of the significant IW related deals: the acquisition of Wavecom (specializing in the development and manufacture of GSM / GPRS / CDMA-standard solutions) by Sierra Wireless, the purchase of Gemalto by Cinterion and the acquisition of Motorola M2M by Telit.

Examples of IW devices and applications

In the consumer sector alone, many product categories have already become part of IW, for example:
  • . Consumer electronics, including: alarms, digital video cameras, home audio systems and speakers.
  • . Kitchen appliances and appliances such as refrigerators. dishwashers, dryers and coffee makers, all kinds of lamps, thermostats and air conditioners.
  • . Security monitoring devices such as a baby monitor and monitoring systems for the care of the elderly, smoke detectors, fire pumps, cameras equipped with sensors, boxes and safes, as well as home alarm systems. Machina and the GSM Association believe that by 2020 $ 270 billion will be saved thanks to sensors and devices that allow older people to live independently outside nursing homes.
  • . Musical instruments
  • . Robots
  • . Toys, starting with remote-controlled cars, ending with flying quadricopters.
  • . Health and fitness products that measure steps,
  • sleep, weight, blood pressure and other data.

  • . Connected advertising and marketing: Cisco believes that this category (meaning internet-connected billboards) will be one of the top three categories of IOs, along with smart factories and telecommunication support systems.
  • . Intelligent traffic management systems. A study by Machina, in a newspaper prepared for the GSM Association, predicts $ 100 billion in revenue by 2020 due to the use of IW in the travel and fines system. Also, smart parking lot management, which is expected to generate $ 30 billion in revenue, will also be a source of revenue.
  • . Waste Management Systems. One of the innovations was the equipping of garbage bins and waste bins with RFID sensors, which allow you to see when the garbage was thrown out. Based on this, the city of Cleveland was able to eliminate 10 loading routes and reduce operating costs by 13 percent. In Cincinnati, household waste fell 17 percent and recycling grew 49 percent through a “pay if you trash” (“pay as
  • you throw ”). This is a program that penalizes those who exceed a given waste limit.
  • . Smart grids that can track and coordinate energy consumption. They will provide savings of $ 200 to $ 500 billion per year by 2025, according to the McKinsey Global Institute.
  • . Smart water systems and meters . The cities of Doha, Sao Paulo and Beijing reduced leakages by 40 to 50% by placing sensors in pumps and other water infrastructure.
  • A study by Machina, in an article prepared for the GSM Association, lists 10 categories of IW applications that, by 2020, will provide 60 percent of the “connected life” income. These include connected cars, traffic control, and building automation.


Categories of IV devices:

  • . Cars and other vehicles. Connected cars are expected to account for 90 percent of passenger cars compared to today's 10 percent.
  • . Connected TVs
  • . Smart watches and other laptop computers.
  • . So far, portable computers can be distinguished as a separate category, which we are doing, it is also convenient to attribute them to a wide category of IV devices, because fitness trackers and can be connected with other devices, such as “smart scales” or devices for mass monitoring of the health status of children and the elderly.

IW intersects with many other technological areas, including telemetry, telematics, M2M communication (machine-to-machine interaction), intelligent networks, intelligent transportation systems, and laptop computers. Here are some useful definitions:
  • M2M is the interaction between machines, the term is usually applied to systems of machines connected to each other to exchange data and increase the overall efficiency, which should happen in the case of factory machines or communal meters. In the context of IWs, one can imagine a system of sensors in a home that “communicates” with smart windows and other appliances to guarantee energy efficiency.
  • . Telemetry is measurement data collected at remote locations that are transmitted to a central processing station. In the context of IW, this could relate to measuring the parameters of various departments of the refrigerator so that the homeowner could know whether perishable products are cooled in them - ice cream, wine, etc. - at the right temperature.
  • . Telematics - remote monitoring of the device and remote control of the device. The term usually refers to cars or other road vehicles that transmit information wirelessly, given the settings or the movement itself, for real-time remote monitoring. Telematics can be used in any self-propelled car, in addition to sensors in the vehicle. Just as the smartphone was created in the likeness of a PC in terms of user interface and functionality, the next generation of IW devices will be created in the likeness of a smartphone in terms of capability standards connections and applications.

Communication of IV with other types of devices

Basically, the early experience of IW was gained by us through transformed products that were never digitally connected to each other.

Examples include Fitbit pedometers, Nest thermostats and smoke alarms, and Pebble smart watches.
And these are not just startups. Big sellers of technology made web connections available and created user-friendly software interfaces for ordinary devices that surround us in everyday life.
Examples include LG with its fridge, dishwasher, and smartThinQ or Friedrich oven with its Kühl air conditioning .
Smartthings, for example, built their entire business model around easy-to-use sensors, monitors and applications that allow consumers to control everything in their home through a smartphone. This allowed them to earn $ 3 million at the end of last year.
In the case of other IV applications and devices, private property and specially designed software and hardware were used as the basis for connecting to smartphones and tablets via the Internet or Bluetooth.
One example is the remote unlock and engine start capabilities for cars provided by the Viper SmartStart system .from Directed Electronics. Indeed, many of the applications of IW - “smart homes”, “smart machines”, etc. - are more convenient to perceive as parts of the global IW network.
It is also more convenient to think of IV devices as a new class of devices that exists in the form of connective tissue between something static unconnected to the Network and the new “network” world of PCs, tablets and smartphones.
The question remains open whether the IV device should be connected to the Internet in order to be considered part of this category. For example, some consider the use of RFID tagsand even barcodes with an IV element, since they can be scanned by devices connected to the Internet to track products in the exhibition hall or products in the warehouse. But this “connection” to the Network is not implemented independently, without readers, because many analysts do not take them into account.

Understanding Things on the Internet of Things

Each “thing”, whether it is a “smart” refrigerator or an intelligent indicator connected to the Internet, will have three main attributes that will indicate its belonging to the IW:
  • . Sensors: IV devices and systems have sensors that track and measure activity in the real world. An example is the closure sensors in the Smartthings system, which lock the doors of a cupboard, window or door in a house, open or closed.
  • . Connection: An Internet connection is either accessible to the device itself or is carried out through a hub, smartphone or base station, while the entire IV system is usually connected to the Internet or the “cloud”.
  • . Processors: like any computing device, the IV device will have some computing power "hidden under the hood" that allows you to analyze incoming information and transmit it.
  • Of course, these characteristics are inherent in all modern smartphones, but there are several such that distinguish many IV devices - especially remotely controlled ones - from smartphones.
  • . Energy Efficiency: In many IV devices, replacing the battery or accessing charging can be difficult, expensive, or dangerous. Here you can even take the Curiosity rover. Therefore, it is possible that such devices should be able to work for a year or more without additional service or be able to periodically wake up to transmit data.
  • . Profitability: objects that contain sensors probably need wide distribution, as an example it is worth considering sensors on food products in supermarkets, which would determine whether the product is spoiled. They should be relatively inexpensive to purchase and install anywhere.
  • . Quality and reliability: it is possible that IV devices should be able to work in a hostile environment outdoors and for a long period of time.

Security: IV devices must be capable of accurately, sensitively transmitting and organizing information, for example, when monitoring health data.
IW raises the level of value and durability of things. It is likely that the promotion of innovation is due to the need for sustainable IW systems, which is a step back to the ecosystem of smartphones and tablets.

Service Providers for Internet of Things

Service providers will play a critical role in IW. One of the most significant IV capabilities is the role of a service provider as an intermediary between a device and a consumer. In other words, who can be a service provider for an IV? Will these be large telecommunications companies or will they be scattered specialists supporting the common efforts of IW?
  • . One example of the latter category includes Progressive Auto Insurance, which offers the use of specific insurance rates selected based on behavioral analysis of information from the Snapshot module. The device is installed on a car and allows the service to track how often users actually use their cars. Research by Machina and GSM Association predicts that by 2020 $ 210 billion will be spent on connecting to the auto insurance policy service, another $ 35 billion will be saved by increasing the efficiency and scale of customer service.
  • . Security companies such as ADT and Vivint will also be able to expand their service with a number of new products.
  • . Telecommunications companies are also involved in the game. AT&T is rapidly promoting a large-scale service that accommodates the maximum capabilities of IW, called Digital Life at the national level. The company collects data (and often can exercise control) from security cameras, locks, sensors on doors, windows, thermostats and lighting devices.

It is too early to talk about competition among suppliers in the field of services for IW.

Obstacles to IW - Emerging Standards

As noted above, there is a wide range of modern technologies that can be combined using IWs, including barcodes, NFC, Bluetooth, Wi-Fi and 4G, and a number of less well-known standards, ranging from smart home systems to industrial markets .
But others are evolving. However, in reality today there are still no widely accepted standards for developers, and thus, the future development of IW will depend on whether the standards are unified.
A particularly interesting problem is with devices that may need to transmit data infrequently or remotely. Here are some updated standards:
. Bluetooth Smart:This standard has already been introduced and has been maintained by Apple for some time. However, it is only starting to be accepted by OSs such as Android and Windows Phone. Smart Bluetooth, an energy-saving version of Bluetooth, originally called WiBree. It allows devices to communicate with each other without prior planning. Many sports trackers such as FitbitOne use Smart Bluetooth.
• The technology is particularly noteworthy in that it is the basis for a new feature supported by Apple, called iBeacon, which allows you to send messages about your location to iOSa devices. Using iBeacons, the retailer can send iPhone product information to a specific area of ​​the store while customers go through it, and possibly even let the user buy it without going to the cloud. Companies that work with iBeacons also offer Estimote and Roximity.
802.11ah: This proposed extension to the Wi-Fi standard is targeted at low-power devices and operates in the crowded 900 MHz band used by older cordless phones.
802.11p:this standard is being promoted for use within vehicles, it allows them to communicate with road sensors and other vehicles at high speeds. Weightless: Weightless advocates see the need for a new protocol for long-range communications. This standard aims to become global, it is designed for use in the widely discussed, but "tricky" way of using the "space gap" between broadcast signals.
AllJoyn: developed by Qualcomm, this standard is not tied to a particular kind of network. Rather, it is a kind of universal language that will allow devices to communicate and control each other.
At the annual developer forum, Intel announced Quark, a low-power processor that can be equipped with wearable devices and other objects.

Other obstacles to IV

In addition to questions about standards, there are other potential barriers to IW. Among them are the scale of the infrastructure being created and the arrays of “big data” required for collecting information and analyzing IW devices. There are also many government policies and guidelines that can slow the development of IW, including increasing the emphasis placed on data privacy in the European Union.

Finally, the return on investment in certain IW initiatives is not always easy to determine, and investments can be cut back until some IW categories prove their worth and value to companies and society.


  • . The Internet of Things, or IW, appears to be a significant event in the history of the Internet.
  • . The numbers predicted by IWs are truly astounding.
  • . Marketers and technology firms agree that the use of IW by enterprises will bring trillions into economic development as it spreads to consumers and the business world.
  • . Among consumers, IW has already given rise to an ecosystem of startups selling home automation, lighting, heating systems and home security systems connected to the Internet.
  • . On the part of consumers, IW has already given rise to an ecosystem of startups selling home automation, lighting, heating and home security systems connected to the Internet.
  • . The main obstacles to the rapid expansion of IW are the still immature and rapidly changing technologies and standards, as well as the large scale and uncertain income ratio of investments in IW-type projects.

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