As the years and technology progress, we can only expect that the number of things connected to the Internet will also grow at a positive exponential rate.  Because of this, many companies are now interested in the Internet of Things, powered by the Industrial Internet.

According to Cardinal Peak’s infographic “Monetizing the Internet of Things,” the projected market value of smart appliances connected to the Internet is at $5.4 billion by 2015, the smart lighting market is at $6.7 billion by 2018, the home automation market is at $35.6 billion by 2016, and in 2018 the projected market value of the connected car market is at $54 billion.

This projection is based on the growing interest of companies in the Internet of Things.  About 15 percent of companies already have IoT solutions in place such as Google, Cisco, Intel, Oracle, Samsung, and Hitachi, while 28 percent of companies will have IoT solutions in place in the next 12 month.  As for other companies, , 25 percent plan on establishing IoT solutions in the next one-to-two years, with 14 percent planning on setting up IoT solutions in the next two-to-five years.

The infographic also stated that of the 10 most coveted technologies today, five of them are connected to the Internet, such as wireless home security systems, lighting control systems, wireless home audio systems, connected thermostats, and energy management systems.

In the next six months, it is expected that connected thermostats will be one of the most in demand IoT devices in the market, especially when homes equipped with smart thermostats can save up to 20 percent on their electric bills per month.

Other IoT devices that will be getting much attention from consumers are security systems with wireless components, connected cars, connected fitness or wellness devices, and usage-based insurance.  Internet-enabled appliances, health monitoring systems for chronic conditions, and smart meters are also expected to see a spike in interest from consumers.

4 key areas of focus

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If you’re wondering why it is important for companies to connect everything to the Internet, it’s for the simple reason of data gathering.  Companies can understand their consumers better if they get real-time feedback from devices connected to the Internet, ultimately making products and services better for end users.

For companies who are still not sold on the Internet of Things or are just gearing up for it, Martie Spoche, a degree holder in trademark and copyright law with a minor in IT, says there are four key areas in IoT that businesses should be focusing on:

Controlling configurations. Embedded Licensing monitors two aspects of how your software is used: by controlling access to the software source code and by controlling how the software-embedded hardware is used.

Supporting field upgrades. Field upgrades allow a customer to decide to upgrade their software without having to send it back to the company or purchase a new piece of hardware. With embedded software licensing, companies can verify the software’s integrity and then perform the upgrade in the field.

Creating personalized offerings. When your smart software is monitored with an embedded license, you are able to offer different levels of software functionality within the same essential hardware device. This allows you to market essentially the same piece of hardware with different software at different price points to remain competitive.

Gathering usage data. With licensing that ensures software cannot be tampered with or hacked, it becomes possible to monitor detailed usage data from the moment the object leaves the warehouse. This allows your company to learn which features are more or less popular, offer value-driven upgrade options and more.

See Cardinal Peak’s full infographic below:

images courtesy of Cardinal Peak