It is estimated that by 2025, the IoT industry is expected to have an economic impact of 11 trillion U.S. dollars. At the same time, there will be as many as 75 billion IoT devices in the hands of consumers around the world. These are extraordinary numbers, but they are likely to be realistic. In many cases, devices supporting the IoT are cost-effective, easy to manufacture and deploy, and have a significant impact.
Therefore, let us take a closer look at what this impact is and how the IoT directly promotes economic development. To do this, we first need to understand the specific functions supported by IoT deployments and explore how they translate into economic development. The IoT has many professional and unconventional functions, but most of the functions can be classified as follows.
Remote monitoring
Anything can be monitored remotely, from monitoring the performance and condition of the entire utility grid, agricultural areas or entire cities, to the performance and condition of medical devices implanted in patients. From micro to macro, remote monitoring has ever-changing applications, which in turn makes equipment performance more efficient, generates new intelligence for future development, and reduces the resources required to perform manual monitoring. All these factors can promote economic development.
Predictive maintenance
Predictive maintenance works by proactively identifying basic maintenance tasks and integrating remote monitoring with the actual tasks of keeping equipment in top condition. In turn, this will keep the equipment in optimal condition over the long term and reduce accidents that affect operations-both have a positive impact on profit growth.
Asset tracking
Asset tracking involves remote monitoring of equipment and fleets, enabling a large amount of resources to benefit from more dynamic and flexible allocation, thereby reducing theft and accidents. Thirdly, this helps companies develop new sources of income and reduce incidents that may damage profit growth.
Next, we need to consider different ways of measuring economic impact. The IoT has a substantial and positive impact on four major categories of economic impact: GDP growth, growth distribution, labor market, as well as regulation, rent-seeking, and competition.
In terms of GDP growth (which may be the most obvious indicator of economic impact), the IoT is absolutely an indispensable part of digital transformation, and digital transformation in turn can promote the growth of enterprises and the entire economy in various ways . It can help them operate more efficiently, develop new products and services, and establish new and fruitful partnerships. According to Frontier Economics, within 30 years, a 10% increase in machine-to-machine interaction may increase the US GDP by 2.3 trillion US dollars.
The distribution of growth is considered a more useful way of measuring economic impact because it allows for better comparison of economies of different scales. As an article on the popularity of the IoT emphasized, approximately 40% of the value of IoT applications is expected to occur in developing economies, although this is a technology that benefits more advanced economies. The adoption of the IoT has brought positive economic impacts to a wide range of economies.
The IoT promotes the labor market in many ways. As an emerging technology, it is creating new jobs in various fields from design and development to installation and maintenance. It must be emphasized that the deployment of the IoT usually involves automated manual tasks, so it may also lead to unemployment, but these are offset by more technology-centric positions.
Finally, in terms of regulation, rent-seeking, and competition, IoT deployment can promote the development of new regulations in a variety of ways, and enhance competition, thereby increasing productivity. The economic impact of the IoT is just beginning to be understood-we can be sure that it is extensive, dynamic, and has the potential to change the world.
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