Internet of Things(IOT)

Market Research

-By Suyash Mulay, IIM Nagpur

Overview of the industry
Industry IOT division
• 1.9 Bn units installed BFSIOthers
3% 3%
Agriculture
• Fast adoption of analytics, AI, 8% Utilities
25%
ML Retail
9%
• Migration to cloud to improve
synchronization
healthcare
• Mostly start-ups offer IOT 10%

based solutions
Manufacturing
• Require real time data Automotive
18%

11%
• GOI initiatives for smart cities Transport &
logistics
13%
Parameters of evaluation
• Current state and potential of IOT in the sector/industry
• Increase in revenue after IOT adoption
• Future growth expectations of IOT in that industry/sector
• Application in smart cities
 Current state and
potential of IOT
Utilities
1. Smart meters
2. Smart grids
3. Optimization of power
usage
4. Theft identification and
leakages
5. Water management
6. Smart cities
Utilities sector has high
losses, they need smart
solutions to cut down their
costs
Focus on increasing the
efficiency of usages
Market Leaders
Manufacturing
1. Reduce machine downtime by
regular monitoring
2. Improve efficiency of
manufacturing processes
3. Usage of sensors for In-depth
data analysis on faults, quality
analysis, environment data
4. RFID tags to improve productivity
Proactive implementation of IOT
Private players ready for high
investment
Looking to cut costs and improve
efficiency by employing analytics
Logistics
1. Fleet management
2. Freight monitoring
3. Maintenance
4. Optimize fuel consumption
5. Temperature check and
quality management of
consumables
Need to make transport
convenient and safer
Maintenance of vehicles to
monitor brakes, engine,
tyres,etc
Streamline their operations by
managing their fleet
Current state and potential of IOT
Healthcare
1. Realtime tracking
2. Equipment troubleshooting
and maintenance
3. Wearable technologies like
heart rate monitors, step
count, sensors to monitor
patients
High spending readiness
Huge potential as medical
technologies advance
High acceptance rate of IOT by
organizations
Retail Agriculture
1. RFID tags 1. Nutrient and soil health
2. Inventory management monitoring in soil
3. Automated notifications to 2. Weather check
consumers about coupons and 3. Realtime yield analysis
sales 4. Health of livestock
4. Personalized shopping experience
Investment by Government is low
High future prospects In early stages of digitization
Low investment in India in IOT Low research spending
Digitization still in initial stages Low encouragement levels for IOT
adoption
Impact on revenues because of IOT
implementation
Mean Revenue growth (%)
Manufacturing 27.1
BFSI 18.9

Transport & logistics 15.6

Utilities 13.9

Retail 13.3

healthcare 12.3

Automotive 12.3

Agriculture* 9
0 5 10 15 20 25 30
Impact on revenues
• We can see that most of the sectors give around 12-15% of revenue
growth after implementing IOT solution
• The manufacturing sector gives 27.1% growth in revenue, this sector
• High growth in BFSI sector
• Agriculture low growth, not favourable in India
• Overall impact of IOT really positive in terms of revenues
Industry Growth
Industry IOT Growth rate (%)
healthcare 29.9
BFSI 26.5
Transport & logistics 24.7
Manufacturing 21.3
Retail 19.6
Automotive 16.4
Agriculture 14.1
Utilities 13
0 5 10 15 20 25 30 35
Industry Growth
• Healthcare is leading the IOT growth because of increase health
tracking wearable devices, digital health initiatives on smartphones,
also real-time tracking on biomedical devices
• High growth in BFSI due to cloud use, e-wallets service, virtual
assistants, self assisted devices, and high security requirements
• Utilities experiencing comparatively low growth due increased costs
and less private players
Smart Cities
1. Waste management
All of these and more solutions
2. Water management
belong to Utilities sector
3. Smart Street Lighting
4. Smart parking solutions
5. Traffic solutions GOI has targeted to create IOT
6. Energy efficient solutions smart cities market value of
7. Clean Environment 15 Billion

365% growth in
tenders These projects will
3500 smart improve the functioning
city projects the city and also help to
324% growth in
implementation cut costs
Recommendation
• Utilities
• Healthcare
• Manufacturing
References
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