Four Opportunities for Original Equipment Manufacturers in IoT
OEM and IoT Key Takeaways:
- As of 2020 there are roughly 31 billion IoT devices worldwide, up from 7 billion in 2018.
- The IoT industry is on track to reach $1.6 trillion in market revenue by 2025.
- OEMs can leverage IoT to offer not only hardware, but high-value services as well.
- Four IoT opportunities for OEMs
The State of IoT
From smart thermostats that reduce our carbon footprints and chip away at our monthly electricity bills, to virtual assistants that remind us about upcoming appointments, the Internet of Things (IoT) is fast becoming an essential feature to our daily lives.
Consider this. In 2018 there were roughly 7 billion IoT devices worldwide, not counting smartphones, tablets, and similar devices. By the end of 2020, it’s estimated that there will be 31 billion IoT devices operating all over the globe. So, perhaps McKinsey was on to something when they estimated that 127 new IoT devices connect to the Internet every second.
What’s more, if the good folks at Statista are to be believed, growth in the IoT space shows no signs of abatement. While the consumer data company notes that the IoT industry raked in some $100 billion in market revenue in 2017, they estimate that figure will reach a whopping $1.6 trillion by 2025.
So, it suffices to say, the IoT market is flourishing. And not for nothing. As the technology has become more sophisticated, it’s taken root in practically every sector; healthcare, transportation, manufacturing, agriculture — you name it.
Thus, astute original equipment manufacturers (OEMs) have taken note of the huge competitive advantage IoT offers. By building products, parts, and devices capable of interacting with a variety of digital tools, they can offer not only top-notch hardware, but high-value services as well.
Four Opportunities for Original Equipment Manufacturers (OEMs) in IoT
Broadly speaking, IoT solutions fall into four distinct categories, each ripe with opportunity for OEMs. These categories are Consumer IoT, Commercial IoT, Industrial IoT (IIoT), and Infrastructure IoT.
Here are four examples of how OEMs have approached each category to establish themselves in the IoT market:
- Smart LED Light Bulbs — Consumer IoT
IoT devices have been around for quite a while, at least 30 years. But IoT solutions have only recently found widespread consumer appreciation. Indeed, the availability of affordable smartphones, tablets, and other such devices have given consumers a concrete and convenient way to interact with IoT networks. Take smart LED light bulbs, for instance. Before the arrival of IoT, most consumers didn’t put much thought into the bulbs they purchased. They bought whichever was cheapest at the local hardware store, then forgot about them until flipping the light switch failed to brighten their rooms. By developing smart LED light bulbs, however, manufacturers gave consumers an intriguing new option. They could create affordable, sophisticated lighting systems that reduced the amount of electricity they consumed per month. Moreover, because these systems are managed via their mobile devices, they can turn lights on and off remotely, get real-time energy consumption data, and receive notifications when it’s time to replace a bulb.
- Hospital Asset Tracking — Commercial IoT
These days, most hospitals have Wi-Fi throughout their facilities. If not for patients and visitors, then at least for doctors, nurses, and staff. Medical device and equipment manufacturers should consider this when developing their products. By installing Bluetooth tags in hospital beds, wheelchairs, and other equipment, OEMs can build value-added, beacon-powered applications that enable hospital managers to keep track of limited hospital resources.
- Smart Farming — Industrial Internet of Things (IIoT)
Real-time data analysis is one of the key value props for IoT. In the agricultural sector, for instance, something as simple as a monitoring sensor can help farmers prevent crop failure by sending instantaneous feedback on climate, plant, and soil conditions over cellular networks. Along the same lines, by installing a sensor on a tractor, aerator, or backhoe, manufacturers can collect data to help farmers manage their land more effectively or troubleshoot problems with their vehicles. Thus, OEMs focused on agriculture can leverage IoT to improve customer service while helping farmers produce bigger crop yields.
- Smart City — Infrastructure IoT
As we wrote in a previous blog, cities all over the world are looking for ways to leverage IoT to create efficiencies, improve sustainability, and foster economic development. Indeed, one of the more brilliant aspects of smart city solutions is that most require very little in the way of new infrastructure. IoT sensors, connected devices, and IoT management solutions have made it possible for streetlamps to moonlight as security cameras and traffic lights to double up as environmental sensors. This enables cities to launch sophisticated initiatives that generate revenue, improve operational efficiencies, and reduce external costs associated with poor community safety. For instance, OEMs can build:
• Connected LCD displays that serve up advertisements, traffic announcements, weather warnings, security notices, amber alerts, and other useful information.
• Smart streetlights that immediately tell city managers when they’ve malfunctioned.
• Smart parking meters that make it easy to pay for parking and enable remote top-ups for optimum convenience. READ MORE: Pareteum Experience Cloud for OEMs
How Can Pareteum Help?
No matter how OEMs approach the IoT space, Pareteum has all their connectivity requirements covered. By integrating cellular and Wi-Fi connectivity in 200+ countries and territories, with intelligent network selection for optimized performance, cost, and reach; Pareteum can guarantee an always-best-connected experience for any IoT solution.
The Pareteum Smart Network is composed of three primary features:
- Global Wi-Fi and Cellular
— Top tier voice and data connectivity from mobile networks all over the globe. Door-to-door Wi-Fi connectivity in tens-of-millions of commercial and community venues, hundreds-of-thousands of restaurants, cafés, and coffee shops; tens-of-thousands of hotels and hospitality sites, nearly 700 airports, and more than 5,000 airplanes from 40 of the world’s leading airlines.
- Wi-Fi SmartConnect — Automatically connect to Wi-Fi or cellular networks based on quality of service. Reduce connectivity costs by offloading to Wi-Fi.
- Last Mile VPN — Secure all Wi-Fi connections to protect against crippling cyber-attacks and devastating data breaches.
Without connectivity, smart devices and IoT deployments lose much of their appeal. By leveraging Pareteum’s Smart Network, IoT solutions can stay connected, no matter what, at the lowest possible costs.