Smart Cities could waste USD341 billion by 2025 on non-standardized IoT deployments
Date: Fri, 05/27/2016 - 10:26 Source: Machina Research
Jeremy Green, Principal Analyst, Machina Research and lead author for this report
Image credited to Machina Research
Commenting on the adoption of IoT, Jim Nolan, Executive Vice President, IoT Solutions, at InterDigital said: “The world of IoT is currently characterized by competing technologies and platforms, further complicated by numerous standards development organizations, and this fragmentation is causing a delay in the widespread adoption of IoT,”. “We can’t hope to realize any smart city ambitions until all stakeholders can agree on a common set of IoT standards. Machina Research’s analysis proves the extremely valuable business case for an open standards-based approach to IoT.”
Smart cities are a complex and multi-dimensional vertical within the IoT landscape, crossing the public and private sectors. Open standards are imperative for the development and deployment of IoT applications and services, where defining a best working practice will ensure stakeholders can maximize the opportunities presented by this rapidly evolving market. Key findings from the report include:
• Using non-standardized IoT solutions, the cost to implement smart city deployments could reach USD1.12 trillion by 2025;
• Adopting standardized solutions on the other hand would equate to a cost of USD781 billion – a savings of USD341 billion worldwide by 2025 – 30% of the non-standardized total;
• Cost savings would result from interoperability, freedom from vendor lock-in, and reduced systems integration costs that IoT standardization provides.
The benefits associated with a standards-based approach to IoT are not purely financial. The report also indicates that, by 2025, a standards-based IoT environment could also mean a 27% increase in the number of connected devices within smart cities, and could improve the speed and extent of adoption of smart city applications.
The introduction of standards-based IoT solutions would also create simpler processes for building new applications and allow easier replication of schemes, and inherent interoperability will also make data monetization easier. Ultimately, standards-based IoT solutions will make smart cities more attractive, provide opportunities for application developers, and accelerate technology innovation.
“Government bodies investing in smart city initiatives to drive civic improvements are under constant scrutiny to ensure public funds are spent wisely. Furthermore, the existing ‘internet of silos’ approach to IoT deployment is delaying the widespread adoption of IoT solutions, including smart cities,” said Jeremy Green, Principal Analyst, Machina Research and lead author for this report. “Our research demonstrates that open standards can solve both challenges, ensuring money is invested more efficiently, and dramatically accelerating IoT adoption and growth.”