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Number of internet of things connections tops 1 billion


The number of business-to-business 'internet of things' (IoT) connections reached more than 1 billion for the first time last year, according to new research.

There were 1.2 billion such connections in 2014, according to Verizon's report on the state of the internet of things market in 2015 (24-page / 1.69MB PDF). Verizon said that by 2020 the number of IoT-enabled applications and devices will be 5.4bn.

The report outlined a 204% rise in the number of machine-to-machine connections in the manufacturing industry from 2013 to 2014, with M2M connections also more than doubling in the finance and insurance market (128% rise) and the media and entertainment sector (120% rise).

Verizon said the IoT is enabling companies to grow their business, improve safety and reduce risks. It cited an example of businesses using wearable devices to "sense environmental factors ... and identify when a worker has had an accident or is in imminent danger" and of manufacturers using sensors to collect data on machine performance to enable "predictive maintenance".

"With IoT, manufacturers can remotely monitor the condition of equipment and look for indicators of imminent failure — for example vibration, temperature, or pressure outside normal limits," Verizon said. "This means that the manufacturer can make fewer visits, reducing costs and freeing up employees. For the customer it means less disruption, increased uptime, and ultimately higher satisfaction. Taking this to the next level, manufacturers can offer a price-per-use, inclusive of all hardware, installation, and servicing. This is servitisation, and it’s very attractive to customers looking to spread costs and increase accountability."

Improvements in the management of energy needs can be enabled by the IoT through the development of 'smart grids', Verizon said. It also said the IoT can help improve health care too.

"IoT-enabled wearable devices can also play an important role in preventive medicine," it said. "By encouraging the population to lead a more healthy lifestyle, the incidence of obesity and other conditions that can be a factor in many serious health conditions can be reduced. Wearables can also help general practitioners to make sure that patients are sticking to activity plans."

Verizon's report also identified the potential of IoT to deliver truly 'smart' cities, with subsequent benefits in savings to the public purse and potential reductions in emissions. These benefits can delivered through making use of data aggregated from "integrating multiple connected systems".

"When decision-makers have a holistic view of everything from energy use and traffic flows to crime and air pollution, they can make better policy decisions," Verizon said. "Digital signage, connected CCTV cameras, and fleet management solutions can enable emergency responders to coordinate activity in response to a disaster. Aggregating data from smart parking, cameras, traffic lights, and public transit systems can help planners understand and manage how people are moving around the city. The insight gained from this can help make better investment decisions and cut congestion."

"Networked sensors can automate the collection of data related to air and water quality, weather conditions, noise and condition (including dams, waterways, and vulnerable historical monuments). With this data, local authorities can issue smog warnings and enforce noise pollution orders, water companies can impose water usage restrictions, and maintenance crews can be sent to fix infrastructure. Sensors can also monitor for dangerous levels of UV and radiation, temperature, gas leaks, flood, and other environmental risks that may need intervention," it said.

Verizon said businesses embracing the potential of the IoT must address security and privacy issues. It backed a range of solutions to secure connected systems and preserve individuals' privacy, including the adoption of a security-by-design approach and the authentication and authorisation of individuals looking to access connected systems and the data being transmitted across IoT networks.

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