Internet of things is coming

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

The Internet of Things will take over the world

IW penetrates into a variety of devices and applications that can be used in all industries and thus connect a huge number of devices. Nearly 2 billion devices in use today and 9 billion by 2018, according to BII estimates. Very bold predictions, is not it? For example, applications for the auto insurance industry, which are able to determine the actual amount of time spent by a driver on the road, can be truly valuable. Forecasts of marketing and technical firms agree that the use of IoT by enterprises will add trillions to economic development.
')
An ecosystem of startups selling home automation, lighting, heating systems and home security systems connected to the Internet is already growing among consumers of IWT.

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

"

Over the past five years, smartphones have taken a confident leadership 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 the McKinsey Global Institute, "can monitor their environment, report on their status, receive instructions, and even act based on the information they receive."
Unlike smartphones and tablets, IV objects often have a limited user interface and can only collect and send data to other devices.
The Internet of things, spreading everywhere, will take our daily life to a new level of functionality, efficiency and convenience. IW transforms the formerly inert objects, tools and instruments into the category of intelligent devices equipped with a sensor that can communicate with other devices familiar to us, in particular with PCs, smartphones and tablets.

As soon as IWI 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 home automation, heating and air-conditioning systems, traffic control ( for example, smart traffic lights), organization of care for the elderly, security systems, as well as cars connected to the Internet and outdoor advertising.
What devices will be used to control 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 controls by IV devices.

Measuring the present and future scale of PE

The tendency of IW will be an increase in the number of devices connected to the Internet.
In fact, IV 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 TV, tablets, laptops and PCs, all together.
The Internet of Things will account for 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 portrayed it in the form of three waves: First, connect devices that serve consumers, then IV expands to connected devices in enterprises, and finally its use becomes widespread through government and public processes.
Forrester found that most IT executives are positively aware 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, companies such as the McKinsey Global Institute and Cisco will increase the number of projects in the trillions of times. The name “Internet of Things” itself suggests that it will not be an autonomous industry or category, but will be some class of devices and technologies that can be applied in enterprises. To provide some numerical perspective, let's assume that global GDP fluctuates around $ 70 trillion.

"

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

Examples of IV devices and applications

In the consumer sector alone, many product categories have already become part of the IW, for example:

. Consumer electronics, including: alarm clocks, digital video cameras, consumer audio systems and speakers.
. Kitchen appliances and household appliances, such as refrigerators. dishwashers, dryers and coffee makers, lamps of various kinds, thermostats and air conditioners.
. Security monitoring devices, such as a radio nanny and elderly care monitoring systems, smoke detectors, fire pumps, cameras equipped with a sensor, boxes and safes, and home alarm systems. Machina and the GSM Association believe that by 2020, it will be possible to save $ 270 billion thanks to sensors and devices that allow older people to live independently outside nursing homes.
. Musical instruments
. Robots
. Toys, starting with remote-controlled machines, ending with flying quadriccopters.
. Health and fitness products that measure steps
sleep, weight, blood pressure and other data.

. Connected Advertising and Marketing: Cisco believes that this category (implied internet-connected billboards) will be one of the top three categories of IW, along with smart factories and telecommunications support systems.
. Intellectual traffic management systems. The Machina study, in a newspaper prepared for the GSM Association, predicts a revenue of $ 100 billion by 2020 due to the use of IW in the system of road benefits and fines. Another source of income will be smart parking management, which is expected to generate $ 30 billion in revenue.
. Waste disposal systems. One of the innovations was the equipping of garbage tanks and urns with RFID sensors, which allow you to see when the garbage was thrown away. Based on this, the city of Cleveland was able to eliminate 10 loading routes and cut operating costs by 13 percent. In Cincinnati, household waste fell by 17 percent, and recycling increased by 49 percent through the use of a “pay if you litter” system (“pay as
you throw ”). This is a program that penalizes those who exceed a given waste limit.
. Smart grids that can monitor and coordinate energy consumption. They will provide savings of between $ 200 and $ 500 billion a year by 2025, according to the McKinsey Global Institute.
. Smart aquatic systems and counters . The cities of Doha, Sao Paulo and Beijing reduced leaks by 40 to 50% by placing sensors in pumps and other water infrastructure.
The Machina study, in an article prepared for the GSM Association, lists 10 categories of IW applications that will provide 60 percent of the revenue of “connected life” by 2020. They include “connected” cars, traffic management 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 the current 10 percent.
. Connected tvs
. Smart watches and other portable 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, since fitness trackers and may be associated 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), intelligent networks, intelligent transportation systems, and portable computers. Here are some useful definitions:

M2M is an interaction between machines, the term is usually applied to systems of machines connected to each other in order to exchange data and increase overall work efficiency, which should be the case with factory machines or utility meters. In the context of IW, one can imagine an in-house sensor system that “communicates” with smart windows and other appliances to ensure 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 refer to measuring the parameters of different sections of a refrigerator so that a homeowner can know whether perishable foods such as ice cream, wine, etc. are cooled in them. - at the correct temperature.
. Telematics - remote device tracking and remote device control. The term usually refers to cars or other road vehicles that transmit information using wireless technologies, taking into account the settings or the movement itself, for remote control in real time. Telematics, can be used in any self-propelled car, in addition to the sensors in the vehicle. Just like a smartphone was created like a PC in terms of user interface and functionality, so the next generation of IoT devices will be created like a smartphone in terms of capabilities connections and applications.

Communication of IV with other types of devices

Basically, the early experience of IW was obtained through transformed products that were never digitally linked to each other.

Examples include Fitbit pedometers, thermostats and Nest smoke alarms and Pebble smart watches.
And these are not just startups. Large sellers of technology made available web connections and created user-friendly software interfaces for ordinary devices that surround us in everyday life.
Examples include LG with its refrigerator, dishwasher and smartThinQ oven or Friedrich with its Kühl conditioner.
SmartThings , for example, built its entire business model around easy-to-use sensors, monitors, and applications that allow consumers to manage everything in their home via 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 objects and software and hardware specially developed for them were taken as the basis for communicating via the Internet or Bluetooth with smartphones and tablets.
One example is the remote unlocking and starting engine option for cars provided by the Viper SmartStart system from Directed Electronics. Indeed, many of the applications of IW, “smart homes,” “smart machines,” and others, are more conveniently perceived as parts of the IW global network.
It is also more convenient to think of IV devices as a new class of devices, existing in the form of connective tissue between something static and unconnected to the Web and the new “networked” world of PCs, tablets and smartphones.
The question remains 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 tags and even barcodes as an ILE element, since they can be scanned by Internet-connected devices to track products in the exhibition hall or products in stock. But this “connectivity” 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”, be it a “smart” refrigerator or an intelligent indicator connected to the Internet, will have three main attributes that will speak about 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 closing sensors in the Smartthings system that hold the cupboard doors, window or door in the house open or closed.
. Connection: An Internet connection is either available to the device itself, or via 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, an IV device will have some computational power “hidden under the hood” that allows analyzing incoming information and transmitting it.
Of course, these characteristics are inherent in all modern smartphones, but there are a few that distinguish many IV devices — especially remote-controlled ones — from smartphones.
. Energy Efficiency: In many IV devices, battery replacement or access to charging can be difficult, expensive, or dangerous. As an example, 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 to be able to “wake up” periodically for data transmission.
. Profitability: objects that contain sensors probably need wide distribution, as an example, consider the sensors on food in supermarkets, which would determine whether the product is spoiled. They should be relatively inexpensive to purchase and install everywhere.
. Quality and reliability: it is possible that the IV devices should be able to work in an aggressive environment outdoors and for a long period of time.

Security: IoT devices must be capable of accurate, sensitive transmission and ordering of information, for example, in the case of 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 IV-systems, which is a step back to the ecosystem of smartphones and tablets.

Internet Service Providers

Service providers will play a crucial role in IW. One of the most significant IW-capabilities is the role of the service provider, as an intermediary between the device and the consumer. In other words, who can be the service provider for IW? Will it be big telecommunication companies or will it be isolated specialists who support the IW jointly?

. One example of the latter category includes Progressive Auto Insurance, which offers the use of specific insurance rates, selected on the basis of behavioral analysis of information from the Snapshot module. The device is installed on the car and allows the service to track how often users actually use their cars. Research by Machina and the 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.
. Companies providing security services 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 capacity of IoT, called Digital Life at the national level. The company collects data (and can often exercise control) from security cameras, locks, sensors on doors, windows, thermostats and lighting devices.

It is too early to talk about competition among service providers for IW.

Barriers to IW - Emerging Standards

As noted above, there is a wide range of modern technologies that can be combined using IVs, including barcodes, NFC, Bluetooth, Wi-Fi and 4G, and a number of lesser known standards, ranging from smart home systems to industrial markets. .
But others are developing. 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 will be 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 supported by Apple for some time. However, it is just beginning to be adopted by OSs such as Android and Windows Phone. Smart Bluetooth, the energy-saving version of Bluetooth, originally called the 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 with the support of Apple, called iBeacon, which allows you to send messages about your location to iOS devices. Using iBeacons, the retailer can send iPhone product information to a specific store area, while customers go through it, and perhaps even allow the user to buy them 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 supporters see the need for a long-range communication protocol. This standard seeks to become global, it is designed for use in the widely discussed, but "tricky" in the use of the "space" between the TV broadcasts.
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 obstacles to IW. Among them is the scale of the infrastructure being created and the arrays of “big data” required for collecting information and analyzing IV devices. There are also many government policies and regulations that can slow down the development of IW, including the increased attention that confidentiality of data in the European Union is attached.

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

SUMMARIZE

. The Internet of Things, or IW, is a significant event in the history of the Internet.
. The numbers predicted by IV, really amazing.
. Marketers and technical firms agree that the use of IoT by enterprises will add trillions to economic development as it spreads among consumers and in 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.
. From the consumer side, 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 still immature and rapidly changing technologies and standards, as well as the large scale and uncertain income ratio of investments in IW-type projects.

PS We still opened a new store in the Mega Belaya Dacha shopping center. How to find us, you can find on our website .