Smart cities could waste US$341bn by 2025 on non-standardised IoT deployments

Machina Research analysis shows that using non-standardised versus standards-based solutions for IoT will increase the cost of deployment, hinder mass scale and adoption, and stifle technology innovation for smart city initiatives worldwide.

City authorities and their technology partners could squander US$341 billion by 2025 if they adopt a fragmented versus standardised approach to IoT solution deployment. This is the conclusion reached by Machina Research in a new white paper, commissioned by mobile technology and research company InterDigital, which analyses potential IoT deployments in smart cities. Incorporating a number of vertical domains, multiple parties, and diverse IT systems, smart cities are a microcosm and good illustration of the wider IoT. As such, they reflect the financial and operational risks associated with fragmentation and complexity in IoT deployments.

Commenting on the adoption of IoT, Jim Nolan, EVP, IoT Solutions, at InterDigital said: “The world of IoT is currently characterised by competing technologies and platforms, further complicated by numerous standards development organisations, and this fragmentation is causing a delay in the widespread adoption of IoT,”. “We can’t hope to realise any smart city ambitions until all stakeholders can agree on a common set of IoT standards. Machina Research’s analysis proves the extremely valuable business case for an open standards-based approach to IoT.”

Smart cities are a complex and multi-dimensional vertical within the IoT landscape, crossing the public and private sectors. Open standards are imperative for the development and deployment of IoT applications and services, where defining a best working practice will ensure stakeholders can maximise the opportunities presented by this rapidly evolving market. Key findings from the report include:

  • Using non-standardised IoT solutions, the cost to implement smart city deployments could reach US$1.12 trillion by 2025;
  • Adopting standardised solutions on the other hand would equate to a cost of US$781 billion – a savings of US$341 billion wordwide by 2025 – 30% of the non-standardised total;
  • Cost savings would result from interoperability, freedom from vendor lock-in, and reduced systems integration costs that IoT standardisation provides.

The benefits associated with a standards-based approach to IoT are not purely financial. The report also indicates that, by 2025, a standards-based IoT environment could also mean a 27% increase in the number of connected devices within smart cities, and could improve the speed and extent of adoption of smart city applications.

Jeremy Green, principal analyst, Machina Research
Jeremy Green, principal analyst, Machina Research

The introduction of standards-based IoT solutions would also create simpler processes for building new applications and allow easier replication of schemes, and inherent interoperability will also make data monetisation easier. Ultimately, standards-based IoT solutions will make smart cities more attractive, provide opportunities for application developers, and accelerate technology innovation.

“Government bodies investing in smart city initiatives to drive civic improvements are under constant scrutiny to ensure public funds are spent wisely. Furthermore, the existing ‘internet of silos’ approach to IoT deployment is delaying the widespread adoption of IoT solutions, including smart cities,” said Jeremy Green, principal analyst, Machina Research and lead author for this report. “Our research demonstrates that open standards can solve both challenges, ensuring money is invested more efficiently, and dramatically accelerating IoT adoption and growth.”

The full White Paper, entitled ‘Open standards in IoT deployments would accelerate growth by 27% and reduce deployment costs by 30%’, is available to download [here]

Comment on this article below or via Twitter: @IoTNow_ OR @jcIoTnow

RECENT ARTICLES

QualSights unveils product consumption intelligence platform

Posted on: December 5, 2022

QualSights, the insights company in the United States, this week has announced the launch of Product Consumption Intelligence, a platform to passively measure human behavior in-home.

Read more

Daikin acquires Venstar, controls and energy management system provider

Posted on: December 5, 2022

Daikin Comfort Technologies North America, Inc. has acquired Venstar, Inc., a prominent controls and energy management systems provider whose technology and indoor comfort solutions are used in millions of residences and light commercial applications across the United States, Canada and Mexico.

Read more
FEATURED IoT STORIES

The IoT Adoption Boom – Everything You Need to Know

Posted on: September 28, 2022

In an age when we seem to go through technology boom after technology boom, it’s hard to imagine one sticking out. However, IoT adoption, or the Internet of Things adoption, is leading the charge to dominate the next decade’s discussion around business IT. Below, we’ll discuss the current boom, what’s driving it, where it’s going,

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more