Internet of Things

Revenue From IoT Implementation in India Will Be About $4 Billion By 2020: IDC

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Revenue From IoT Implementation in India Will Be About $4 Billion By 2020: IDC 8

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IoT seems to have arrived in India and how. According to a latest prediction made by International Data Corporation (IDC), the revenue from IoT implementation in the country for manufacturing will skyrocket and hit around $4 billion in another four years in 2020. This figure makes it a Compound Annual Growth Rate (CAGR) of a staggering 20 percent.

According to a recently published article of IDC’s Manufacturing Insights on the current trends in the adoption of IoT and the opportunities offered by IT system integrators for their implementation, the IoT industry is at a maturity stage in India today where innovative use cases are being employed in certain pockets which is resulting in great amount of business impact.

Multiple diverse components from sensors are combined with products to telemetry for remote connectivity, networking gateways, infrastructure such as an Internet of things platform for computing and storage and an analytics engine in order to bring out key insights from raw data that are required to be integrated together so as for an effective business value to deliver good operational performance. There is no individual player available that can expertise in all these aforementioned areas.

Since the difficulty and complexity involved with multiple systems that need to be integrated is huge, hence, one’s choice of partners becomes equally important as the narrowing down of specific operational technologies.

With their escalating investments in Internet of things, system integrators are said to emerge as the key stakeholders in IoT who will end up supervising end-to-end execution by managing to bring together multiple players and their own skills. Companies like Cognizant, Wipro etc. have already openly acknowledged IoT as a top driver for growth while some others have started setting up Internet of things test beds in collaboration with the Industrial Internet Consortium.

According to IDC, the use cases in Manufacturing can be broadly classified into 3 broad categories. These are as follows –

1) Connected supply chain
2) Connected assets within the enterprise
3) Connected products

For a super successful Internet of things blue print, domain knowledge and skills in the aforementioned areas and centric to the industry are very important.

System Integrators who have enough experience in implementing traditional Information technology applications in manufacturing can prove to be extremely beneficial for a connected enterprise.

The IDC report also throws light on the capabilities of twelve System Integrators in terms of their engagement models, use cases, infrastructure, challenges faced and the way through which these challenges were overcome.

According to Ramachandran S, Principal Research Manager, IDC Manufacturing Insights Asia/Pacific, “Successful implementation of IoT projects will be subject to awareness and choice of appropriate partner based on well-defined evaluation parameters for their end-to-end management. The onus of technology perspective and their management will be on partners. This will help manufacturing enterprises to focus on the core areas of IoT in bundling them with their product and services portfolio and in rolling out profitable business models.”

Verticals such as ownership of data, cost sharing and incentives, ensuring their security and interoperability, need to be well-defined in order to make sure that there’s an overall enhancement of the system which results in making engagement models extremely important for Internet of things projects.

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Suman Chaudhary
An engineer by education and writer by profession, Suman keeps tab on startup ecosystem of India and leads the research team of IndiaWeb2 for covering funding deals, merger & acquisition and market reports.

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