World industry could be missing out on a potential US$14.3trn in internet of things (IoT) technology by 2030, according to a new report, due to lack of understanding and inaction.
The report released by Accenture at this year’s World Economic Forum (WEF) at Davos, Switzerland, highlights that the IoT is much more than simply connecting devices on a consumer level, but initiating a practice that would increase productivity and GDP significantly in the coming decades.
Referred to as the industrial internet of things (IIoT), Accenture believe that in the US alone, capital investments in IIoT are expected to reach as much as US$6.1trn in the proceeding 15 years.
With their findings however, if this investment in IIoT was to increase a further 50pc, with the addition of improved broadband networks, this value figure could be worth as much as an additional U$1trn lifting the country’s GDP by 3.2pc.
Likewise, China could see a US$1.8trn boost to its economy by 2030 with similar levels of investment with Germany believed to harbour estimates of approximately US$700bn.
However, this could all prove a moot point given that Accenture estimate that just under two-thirds of 1,400 global companies have yet to make any concrete plans for a future IIoT infrastructure.
The biggest issue 57pc of business leaders have found, according to the report, is using its potential to generate new revenue streams, but rather see its future uses in employee productivity and reduced operational expenses.
Governments could ease transition
Another issue that was raised by the report shows that many of the 20 countries surveyed were found to have ‘insufficient supporting conditions’ for IIoT’s rapid expansion with Spain, Italy, Russia, India and Brazil found to be some of the weakest countries in this regard.
Many of the issues found in these countries are related to limited infrastructure and the skills or institutional foundations required to support the widespread adoption of new technologies.
“The IIoT has the capacity to significantly boost the productivity and competitiveness of industrial economies, but poor supporting conditions – especially the lack of digital literacy – will hold many countries back,” said Bruno Berthon, managing director of Accenture’s digital strategy, in a statement.
“Businesses must work with policy makers to put in place the necessary factors, not just to unleash the innovative and entrepreneurial spirit that is needed to create and apply digital technologies broadly across economies, but to compete for foreign investors seeking ideal locations for their global operations.”
Connected world map image via Shutterstock