Today, there are more digitally connected devices than there are people on the planet. These immense networks are capable of supporting an array of applications—from the mundane to the sophisticated—and can help propel economic opportunities. This vast interconnected system of devices, vehicles and even buildings are all part of the Internet of Things (IoT)—and more and more businesses are investing in it.
According to the International Data Corporation (IDC), worldwide spending on the IoT will experience a growth rate of nearly 16 per cent, reaching $1.29 trillion by 2020.
According to the Worldwide Semiannual Internet of Things Spending Guide, spending is expected to be highest in the following three industries:
- Manufacturing ($178 billion)
- Transportation ($78 billion)
- Utilities ($69 billion)
The IDC reports that hardware, services and software will make up the majority of the investments. In general, modules and sensors that connect endpoints to networks will represent the bulk of hardware purchases. Things like telemetrics, health monitoring, smart home investments, and smart grids for oil and gas utilities are also major spending drivers.
While the IoT continues to change the way companies do business, each new device connected represents another potential point of access for criminals. In addition to the sheer number of connections available to hackers, the interconnectedness of IoT devices poses a new kind of threat. Accessing a single device could, in theory, give a criminal access to a person’s home, car, phone, work and many other smart systems.
To protect themselves, organizations must be proactive regarding their cyber security measures. And while cyber coverage is still in its infancy, the IoT will undoubtedly force the market to consider these new exposures as they develop.
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