Internet of Things (IoT) is a growing field. The core technology is somewhat mature and there are many applications for it.
It is being adopted by small and large organisations; however there is still a huge growth curve in front of it. And as public and private sector drives towards a more connected world, the question of how it will affect our society should be a topic of discussion.
The value of services delivered via pervasive and connected devices will be immense and has the potential to directly affect both developed and developing countries. In their 2016 report “The Internet of Things: Mapping the Value Beyond the Hype” consultancy firm McKinsey forecast the global economic value of IoT services to be between $4 trillion and $11 trillion by 2025. The sectors most likely to be directly impacted by pervasive personal devices – Human, Health, Vehicles and Offices will together deliver between $550 billion and $3 trillion in value over the same period.
Overall, McKinsey’s analysis suggests that over 60% of the value derived from IoT services will be delivered to the developed world. Despite higher numbers of potential deployments in developing countries the economic benefit, either in consumer surplus, customer value gained from efficiency savings or technology spend, will disproportionately be delivered to developed economies. The disparity is even more stark in terms of the categories where pervasive and connected devices are likely to be the medium of delivery or interface to IoT services. In the Human category – which covers monitoring and managing illness and wellness – almost 90% of the value derived will be in developed nations, partly in recognition of the fact that health-care spending in developed economies is twice that of developing economies.
Both sides of the political spectrum generally give the view that IoT will be a net benefit to society when it comes to simplifying things, reducing waste and making places (factories, cities, remote spaces) safer. I stand firmly with optimism about the new technology, but I do believe it will have a long-term impact on jobs.
Not the loss of jobs, but the changing nature of the work we do.