Growth in the Internet of Things (IoT) market, as evinced by increasing launches, investments and partnerships, will accelerate in 2017 with the commercialization of narrowband IoT. This cellular communications technology uses licensed spectrum and offers a standardized low-power, wide-area network that can capture previously untapped segments of the market. Further, machine learning and blockchain technologies are being integrated with different industries, such as financial services and energy. In Europe, IoT connections are set to exceed 9 billion by 2021, estimates Frost. Dedicated venture funds for IoT development will help create an ecosystem that is conducive to the growth of startups in the region.
Five emerging growth areas for IoT are: Platform Play– Market launches of new or revamped platform plays for connectivity, service, and application enablement are continuing; LPWAN – With NB-IoT, companies offering connected service in any form will now have more concrete low-power connectivity options to test and deploy suitable new applications from 2017 onwards; Industry Vendor Convergence – Tier-2 industrial vendor merger and acquisition activities will persist, while established conglomerate giants add digital technologies to their portfolios; Cybersecurity in IoT – Focus will be on enabling multi-layered security approaches, while addressing individual behavior risks to IoT systems; and IoT – More proof of concepts and provision of discounts or subsidies will encourage consumers to discover, experiment, and experience connected IoT applications.