Juniper Research says there will be a fourfold increase in spending over this year’s estimated $670 million spend, including investment in Bluetooth Beacons and radio frequency ID tags (RFID).
According to Juniper, leading retailers using the IoT to generate an ‘ecosystem’ are poised to gain market advantage and “truly capitalise” on the opportunity.
Research report author Steffen Sorrell said linking the hardware elements of RFID tags, beacons and connected consumer electronics, such as wearables, with software analytics “promises in-depth business insight and an enhanced customer experience.”
The Juniper research found that with the number of connected units within the IoT forecast to reach 38.5 billion in 2020, attitudes and methods with regards to cybersecurity will have to undergo fundamental change.
According to Sorrell, where today’s security is principally focussed on access prevention, the IoT security model will require “robust means of identifying inevitable network breaches.”
“Should suspicious activity be detected, parts of the network can then be ‘shut off’ in similar fashion to marine vessel bulkheads to prevent attack spread.”
Other findings by Juniper include:
• 70% of IoT units are expected to be composed of non-consumer devices by 2020
• With diverse business models and aims of IoT projects such as service revenue, spend and cost-savings taken into account, Juniper forecasts the IoT opportunity to approach $300 billion annually in 2020.