A new report from AT&T shows how businesses can best use the Internet of Things (IoT), and provides meaningful data on how connected devices can help cut costs, grow revenues, boost efficiency and satisfy customers.
The Right Information Can Change the World explains the opportunity for businesses as millions of connected devices and processes join the IoT. It also identifies insights from industries already transforming with IoT. Topics covered include:
- Accelerating innovation
- Understanding the challenges IT organizations may face
- Real-life business use cases generating tangible return on investment
- The developer opportunity in IoT
“There’s a lot of noise out there about the IoT. Our goal is to replace confusion with clarity,” said Chris Penrose, senior vice president, Internet of Things Solutions, AT&T Mobility. “Businesses can harness data safely and more securely from the IoT. They can then predict, learn and make near real-time decisions – and that can create a distinct competitive advantage.”
An estimated 50 billion “things”— from sensors in cars and traffic lights to utility meters and household appliances — will share data over the Internet by 2020.
As of the third quarter 2015, more than 25 million connected devices were on the AT&T network, and that number is growing rapidly: 1.6 million devices were added to the network in that quarter alone.
The report identifies these industries where the IoT is making a difference:
- Connected Car – Machina Research predicts that global connections in the automotive sector will grow from 125 million in 2014 to 1.2 billion in 2024 with a Compound Annual Growth Rate (CAGR) of 23%. The AT&T Drive Studio works with automakers and developers to enhance in-car experiences and safety. AT&T expects more than 10 million connected cars to be connected on its network by the end of 2017.
- Fleet Management and Telematics – The IoT helps fleet managers monitor assets 24/7. This can help reduce maintenance, idle time, paperwork, regulatory violations and insurance expense. According to a new research report from the analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in North America was 4.7 million in Q4 2014. Working with AT&T, B&P Enterprises saved $86,000 annually on insurance and slashed Department of Transportation violations by 80%.
- Smart Cities – IoT gives cities powerful new tools to save money and operate more efficiently and sustainably. There’s a rapid population shift to cities. A United Nations report predicts that nearly 70% of the global population will live in urban areas by 2050. AT&T offers IoT solutions to cities globally. For example, AT&T is working with Mueller Water Products and IBM to provide solutions that can help detect leaks in water mains with IoT technology.
- Utilities – Total annual sales of U.S. utilities are about $370 billion. Yet more than 70% of the U.S. electrical transmission system is over 25 years old and unpaid bills cost utilities $1 billion annually. AT&T is working with companies to develop the next generation of IoT smart energy solutions to help the industry become more efficient.
- Supply chain – Connected devices can help track and manage assets on the move. A global survey of shippers and logistics providers found that companies using monitoring technologies are moving beyond location data into areas such as temperature and humidity control. AT&T is working with the global shipper Maersk to track and monitor the condition of over 280,000 connected refrigerated shipping containers with perishable goods. Additionally, through AT&T Cargo View with Flight Safe, customers can help monitor freight for temperature, humidity, pressure, shock and vibration from takeoff to landing.
International Data Corporation (IDC), the global market intelligence firm, estimates that the global IoT market will nearly triple to $1.7 trillion by 2020. IDC expects the IoT to grow at a CAGR of 19.2% through 2020. That compares to 9.5% for other connected devices such as smartphones, tablets and laptops.
AT&T has launched a new website that offers an interactive experience showing how everyday objects – from lampposts, tractors and medical devices to specialized industrial equipment – are evolving to help create an interconnected world. The website shows how businesses can work with AT&T experts to set up new connected machine solutions – including network performance, open platform, custom development, and expert collaboration – that will help them realize the potential of IoT.
To learn more about IoT’s potential for your business, download the report here.