The telecommunication industry will see a focus on connectivity in 2016, as the Internet of Things continues to grow in usage and IoT technology is adopted in an increasing variety of industries. Businesses operating in this industry need to stay on top of technological advances to remain competitive and ensure their products meet the market’s demands.
1. Internet of Things
Internet of Things (IoT) is the term used to describe a network of physical objects enabled to collect and communicate data through use of fitted sensors, software and network connectivity. IoT is one of the fastest growing technology markets, as IoT enabled devices are beneficial to a wide range of industries such as Healthcare, Transportation and Entertainment. IoT devices are designed to collect data from the physical world and communicate this data to computer-based systems, providing efficient and accurate real-time data collection. A key element of this technology is the IoT platform, which is used as the backbone for an overall IoT infrastructure. Examples include Apple’s Homekit and Google’s Brillo, both of which support smart home IoT connectivity. The global IoT devices market is expected to grow at a CAGR of 43% during the 2015-2019 period. The impressive growth of both markets will be spurred on by a high adoption rate by both data-driven businesses and efficiency-focused consumers. IoT will continue to integrate itself into various industries, providing users with unprecedented control over their electronic devices and allowing for quick and effortless management of an increasingly diverse range of products.
2. Wearable Technology
A sector of the IoT market, wearable technology is growing in popularity thanks to its features and simplicity. Wearable technologies consist of clothing and accessory items that utilize advanced electronics and computer technology, often with designs emphasizing the practicality, functionality and fashionability of the device. Wearable technology can be categorized into personal usage devices and business usage devices, and product segments within the wearable technology market include:
- Smart watches
- Smart glasses
- Fitness trackers
- Wearable cameras
- Body sensors
Although rudimentary forms of wearable technology have existed since the 1980’s, market demand for these products started at the beginning of this decade. Like other IoT devices, wearable technology collects and analyzes data from the physical world and communicates this information to the user and other devices. The global wearable sensors market is estimated to grow at a CAGR of 25.7% during the 2015-2020 period. Wearable technology is currently used for health tracking, sports performance monitoring, location tracking and wearable web purposes, but as with other IoT devices we should expect these products to appear in unforeseen markets.
An global in-app advertising market is set to grow at a CAGR of 39.97%. However, the current saturation of the app market requires developers to create innovative and productive apps to rise above the competition.
4. Cloud Computing
Cloud computing utilizes a network of remote servers to process, manage and store Internet data as opposed to a personal computer or local server. Cloud computing enables on-demand access to a shared group of computing resources with rapid efficiency and minute management. This technology is extremely popular with businesses as it allows them to store and process data using third-party data centres rather than on-site servers. Like the aforementioned trends, cloud computing is used for a multitude of purposes in a wide variety of industries and is expected to experience strong growth over the coming years. The global cloud security market is forecast to grow at a CAGR of 20.91% during the 2016-2020 period, implying heavy investment from service providers.
This year will see an aggressive expansion of Internet of Things technology and devices, as businesses and consumers seek out connected devices that permit data collection and processing. The strong growth of IoT will influence the progress of wearable technology, mobile device applications and cloud computing, with the goal of providing users with instant access to easy-to-understand and ultimately beneficial data.