Future technology available today (papers #1-4)
Many countries have pinned their hopes on the digital economy, a term that covers various types of automation. The Internet of Things (IoT) has the potential to push digitalisation to a new level. With the growing number of connected devices worldwide (according to industry analysts, we will have 20 to 50 billion connected successful when both government and business are involved. The Internet of Things is not just another technology, but a foundation for a new production system and philosophy that will guide companies from across various industries.
However, despite the rapid adoption of innovative technologies in telecommunications, data sharing and the Internet in the 2000s, we have yet to see the productivity gains promised by automation.
The figures on the potential capacity of the IoT market vary. While it could exceed USD 1.2 trillion worldwide by 2020, the share of the Russian market is still relatively moderate. The range of estimates depends on who makes the calculations and what segments are included in the market structure. From our viewpoint, the most important indicator is not the size of the market for technological solutions and IoT consulting, but the multiplier effect that these technologies can produce on various industries by improving productivity and lowering costs.
According to our estimates, the cumulative impact from adopting IoT technology in six sectors (electricity, healthcare, agriculture, transport and storage, smart cities and smart homes) will reach around 47 bln $ by 2025. The contributing factors behind this outlook include, first and foremost, the reduced costs for repair and maintenance of production assets, more energy-efficient production facilities, buildings, and other structures, optimised transport and logistics flows, and improved production processes.
Selecting specific industries for analysis
Selecting organisations and experts for data collection and interviews
Reviewing the findings
Evaluating the potential impact of the adoption of IoT in Russia
Partner, Telecom, Utilities, Communication & Entertainment (TUCE) Leader, PwC Russia
Tel: +7 (495) 967 6499
Director, Consulting Services, PwC Russia
Tel: +7 (495) 223 5085
Director, Strategy & Operations, Power&Utilities sector, PwC Russia
Tel: +7 (495) 223 5044