How can the internet of Things create real economic value? A new McKinsey Global Institute report, The Internet of Things: Mapping the value beyond the hype, details150 use cases, ranging from devices that monitor health and wellness to manufacturers that use sensors to optimize the maintenance of equipment and protect the safety of workers. The findings indicate that the IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025.
To reach that goal, interoperability between IoT systems is crucial. Of the total potential economic value the IoT enables, interoperability is required for 40 percent on average and for nearly 60 percent in some settings. Of course, most of the publcity will go to retail customers, who will reap a large share of the benefits. McKinsey estimates that IoT users, including businesses, other organizations and consumers could capture 90 percent of the value that IoT applications generate. For instance, in 2025 remote monitoring could create as much as $1.1 trillion a year in value by improving the health of chronic-disease patients.
Following is a look at where the most value from IoT solutions will reap the most value, courtesy of the McKinsey Global Institute.