The Internet of Everything set to yield $14.4 Trillion over the next decade

Written by Martin Roberts, Business Development Manager, SMART Markets, SolutionsPT

Cisco’s series of thought leadership papers on the Internet of Everything (IoE) set out to explore the economic and strategic implications of IoE innovations for companies. The first paper in the series described the impact of the Internet of Everything on enterprises, individuals, and countries now and in the future. In their second paper, they recently published findings of their global survey on the economic value of IoE to global business over the next ten years. Their analysis suggests that the Value at Stake (the combination of increased revenues and lower costs) that will be created or will migrate among companies and industries resulting from Embracing the Internet of Everything, will reach $14.4 Trillion during the next decade (2013 to 2022). In summary Cisco’s findings are:

The factors that are driving the IoE economy:

·         Reduced costs

·         Technology Architectures easing adoption

·         Next generation of users with different expectations

·         ‘Winner takes all’ framework/platform dynamics

·         Disintermediation/re-intermediation

The sources of the $14.4 trillion in Value at Stake over the next 10 years:

·         Asset productivity and cost reduction

·         Employee productivity

·         Supply chain and logistics efficiency

·         Innovation

·         Customer Experience

The use cases that will drive the most Value at Stake:

·         Factory automation

·         Internet advertising/e-marketing

·         Future work/telecommuting

·         Time to market

·         Logical and Physical security

The Industries that will drive the most Value at Stake:

·         Manufacturing, 27%

·         Retail trade, 11%

·         Information, 9%

·         Finance and insurance, 9%

·         Healthcare, 7%

The geographic distribution of the will Value at Stake:

·         United States, 32%

·         Europe, 30%

·         China, 12%

·         Japan, 5%

·         Canada, 3%

·         Rest of World, 18%

Looks like manufacturing alone in Europe is set to see a Value at Stake of $1.2 Trillion (£0.75 Trillion) over the next decade!