Internet of Things and Next Industrial Revolution

Internet of Things (IoT) is a phenomenon that is expected to transform manufacturing, healthcare, energy, transportation, and other sectors ofeconomy, which is expected to reach value of USD 11,1 trillion by 2025.

What IoT is about? In a nutshell IoT refers to ability of hardware, software and sensors to collect and exchange data through networks and deliver services enabled through it.

What differs IoT from current machine-to-machine (M2M) communication is going beyond simple data exchange to advanced data usage resulting in various applications.

IoT fields of exploration are linked with electronic devices and refer to e.g. build-in sensors in vehicles leading to decrease in energy consumption, weather forecasting impacting home heating systems, monitoring of human vital signals for preventing diseases, and many more.

At this moment, part of IoT value proposals being worked out can be found at Angel Lists, which collected almost 2500 start-ups focused on IoT area.

IoT is a cornerstone of wider phenomenon that in public discourse is called Industry 4.0. Industry 4.0 refers to the next wave of industrial revolution, which is happening now, thanks to the exchange of data between devices, incl. manufacturing technologies and also cloud computing.  Industry 4.0 creates aan opportunity for start-ups to foster interoperability of machines, devices, and sensors, increase quality and transparency of information being exchanged, creation of assistance systems for aggregation and visualization of information collected, and execution of accurate decisions basing on them.

More insights on value looked for in Industry 4.0 era can be found in McKinsey’s report here. A lot of IoT enriching materials have been published by Cisco in form of white papers and case studies available at their website here.

IoT is supported by numerous start-up acceleration programmes and government agendas around the world. Current open start-up acceleration programmes incl. Plug and Play IoT Accelerator from Silicon Valley with ongoing call for applications, Techstars IoT Accelerator with multiple applications scheduled for 2016 in US, or ABC Accelerator in Slovenia with call for IoT oriented start-ups with deadline of 31st of July 2016.

European Commission also fosters IoT with focus on integration and creation of open platforms leveraging its usage. Under Horizon 2020 programme European Commission announced dedicated call for research and innovation projects with particular IoT focus with EUR 35 mln budget. The call is planned to be opened on 8th of December 2016 and closed on 25th of April 2017. As in all Horizon 2020 co-financing programmes participation requires creation of consortium of entities from at least 3 European Union countries. Funding rate covered by European Commission is up to 100%.

What is your favourite application of IoT, worth to explore?