A new McKinsey Global Institute report, “The Internet of Things: Mapping the Value Beyond the Hype,” finds that the hype may actually understate IoT’s full potential — but that capturing it will require an understanding of where real value can be created and a successful effort to address a set of systems issues, including interoperability.
According to McKinsey research, IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025.
MGI’s Michael Chui believes that these factors will determine how successful businesses are at unlocking trillions of dollars in value during the next decade:
Interoperability between IoT systems is critical.
Currently, most IoT data are not even used for optimization and prediction, which provide the greatest value.
Business-to-business applications will probably capture more value—nearly 70 percent of it—than consumer uses.
IoT users (businesses, other organizations, and consumers) could capture 90 percent of the value that IoT applications generate.