Report estimates 50 billion devices will be connected to Web by 2020
Bonn, Germany – An estimated 50 billion devices will be connected to the Internet by 2020 compared to 15 billion today, according to a new trend report from DHL Inc. and Cisco.
The study finds that growth in the Internet of Things (IoT) will generate $8 trillion worldwide in “value at stake” during the next 10 years. (The value at stake metric is a combination of increased revenues and lower costs that is created or will migrate among companies and industries when new connections are made.). The five main factors that are driving it are: innovation and revenue ($2.1 trillion); asset utilization ($2.1 trillion); supply chain and logistics ($1.9 trillion); employee productivity improvements ($1.2 trillion); and enhanced customer and citizen experience ($700 billion).
"Digital disruption is all around us and it’s having massive implications for business. Digitization and the expansion of the Internet of Things is a catalyst for growth, which is driving new economic models and enabling organizations to remain competitive and embrace the pace of change happening globally. This report clearly demonstrates that digitization and the IoT will deliver long term efficiencies and growth opportunities across a wide range of industries,” commented Chris Dedicoat, president, EMEAR for Cisco.
According to the report, over the next decade, the logistics industry could unlock higher levels of operational efficiency as the IoT connects in real time millions of shipments being moved, tracked and stowed each day. In warehousing, connected pallets and items will be a driver for smarter inventory management. In freight transportation, tracking and tracing of goods becomes faster, more accurate, predictive and secure while analytics of a connected fleet can help to predict asset failure and to schedule maintenance checks automatically.
Finally, connecting delivery personnel with surrounding vehicles and people can become a way of monetizing and optimizing the return trip to improve efficiency and service in last mile delivery.
“The Internet of Things is the connection of almost anything – from parcels to people – via sensor technology to the web and both Cisco and DHL believe this will revolutionize business processes across the entire value chain including supply chain and logistics,” said Markus Kückelhaus, VP innovation & trend research, DHL Customer Solutions & Innovation. “To get the maximum global economic benefit, we’ll need to understand how all components in the value chain converge and this will require a comprehensive collaboration, participation and the willingness to invest to create a thriving IoT eco system for sustainable business processes.”
Cisco Consulting Services and DHL are now also collaborating on a joint IoT innovation project that will improve decision-making in the warehouse operations through near real-time data analytics based on Wi-Fi location data of selected devices. The solution is based on Cisco's Connected Mobile Experiences (CMX) which uses the high-density wireless network to collect aggregate location data on Wi-Fi connected devices.