The term ‘Internet of Things’ is much more than just a technology buzzword. It’s set to be a revolutionary movement, with advancements in everyday ‘dumb’ devices, turning them into ‘smart’ objects for our convenience. From running your home and managing your business to having energy efficient cities and controlling traffic, the Internet of Things is going to change everything as we know it.
The Internet of Things is going to completely transform lives, and some experts have even dubbed it as the next ‘Economic Revolution’ or ‘Industrial Revolution’. So what makes IoT such a game changer in today’s world? And how will connected machines help to boost our economy?
Here we look at some of the reasons why our economy will benefit greatly from IoT…
The Industry is Growing Fast
The Internet of Things is growing fast and it is estimated that there will be around 8.4 billion connected devices by the year 2020 (according to a report by Gartner). Whilst there have been several studies, all with varying estimates and no real indication of which is most accurate, it is clear that we are in the billions and billions when it comes to numbers.
This infographic below reveals predictions by GE, claiming that the Internet of Things will add more to the global economy than every major country (except China and the U.S) by 2030.
(Image source: RS Online)
It is clear from this infographic by RS Online that the rate at which the industry is growing will pump trillions of dollars into the economy. And according to the data, the amount could be double that of India, Japan, Germany, Brazil and the UK in terms of economical contributions.
Boost in Economic Productivity
The Internet of Things, like many other revolutions before, will increase economic productivity. Streamlining processes across various industries, helping to cut costs on output and energy consumption, saving money with resources as well as saving time.
As a result, this will drive up average incomes and help to improve the standard of living across the board and all over the world.
The estimated GDP per capita in the United States, for example, in 2030 could be as high as $86,500. This is $20,000 (30%) more than the forecasted GDP if there was no IoT industry accounted for.
Whilst these figures, as shared by RS Online, are on the higher side, even the low estimate predicts at least a 20% rise in average income for the U.S worker. And this financial gain will extend to other parts of the world. Including the UK and Europe, Asia and further afield.
Greater Automation of Human-Intensive Work
The adoption of IoT in certain industries will also help to replace laborious tasks which require expensive manpower. There will be a higher level of automated systems in manufacturing, agriculture, retail and many more industry sectors.
Whilst some may worry that this reduces job opportunities, many employees also believe that the Internet of Things can help to generate new roles. Roles and career paths that may not have existed previously, and millennials will benefit greatly from this.
The combination of work generation and more efficient industries will help to further boost the economy. And as A.I continues to advance in the future, there will be the introduction of robotic technology in everyday business application.