Internet of Things

The Internet of Things (IoT) is the connection of smart devices like fridges, lightbulbs, phones, wearables and other everyday items over the internet. Every device gets its own IP-Address, which allows standardized communication with a smartphone, a computer or even the cloud. These devices exchange data gained by different sensors and embedded software. For example, it allows the fridge to autonomously buy food, if it is empty or the heater to activate itself before the residents arrive home. But not only do you see IoT in homes, handheld and personal devices are going to be connected which can have a profound systemic change for business operations, products and ways they go to market.

The International Data Corporation (IDC) estimates that there will be 30 billion connected devices in the market by 2020. IDC also estimates the economic value of IoT to be around $1.46 trillion in 2020. IoT offers great opportunities for businesses in selling not only smart products and new services. It offers them the opportunity to take part in a process, which shapes the economy of a new age – extremely important for countries like Germany, the United States or China, whose wealth depends among other things on efficient and reliable manufacturing.

The expansion and development of new technology involves always risks. For this specific trend, security is the main issue as systems can be hacked and abused. Governments and businesses will need to work together to ensure the protection of citizens and customers.