Internet of Things in the energy market is expected to reach US$22.34bn by 2020, growing at a CAGR of 24.1% over the next five years, according to a new report by MarketsandMarkets.
The report segments the global Internet of Things market by network technologies, services, applications and region.
The research categories IoT applications specifically for energy as predictive maintenance, platform security, connected logistics, compliance and risk management, energy analytics, intelligent energy management, mobile workforce management, and field surveillance and monitoring.
The report adds that IoT, when used for energy-related purposes, “is primarily aimed at achieving the integration of machines and intelligent data analysis to enhance the operational efficiency targets being set by energy companies.”
The Internet of Things also enables analytics-based decision making, with the aim of minimising energy trading risk factors, as well as data privacy and security.
IoT and security
The report, entitled 'Internet of Things (IoT) in Energy Market by Systems & Solutions by Application, by Services and by Regions - Global Forecast to 2020' also highlights security concerns regarding cyber-attacks.
It adds that demand for increased operational efficiency and associated technologies, such as next-gen sensors, is expected to drive the IoT in Energy Market over the next several years.
Solution providers will therefore shift their focus IoT security solutions to protect connected devices.
The release notes that lack of skilled labour and concern about data security and privacy could potentially be factors that stifle growth in the market.
In another IoT industry forecast, global market and business intelligence firm Infiniti Research, expects the Industrial Internet of Things (IIoT) industry to grow at a CAGR of 26.56% over the next 4 years.
Growth in Industrial IoT
The Global Industrial IoT Market Research report 2015-2019 segments the IIoT industry into four end-user segments including manufacturing, energy and utilities, automotive and transportation as well as healthcare.
The report states the rising number of connected devices, which are being used in industries to boost the amount of data generated. It adds that businesses are looking to use this data to effect changes in current business models.
Analysts from Infiniti Research said that the growth in the Industrial Internet of Things market may also cause a shift in employment structures, where both humans and machines work together to attain outcomes that neither humans nor machines could produce alone.
The report goes on to say that “increased usage of smart devices, intelligent systems, and robots will likely completely transform the skills and jobs required in the future.
“Companies will use intelligent machines and network systems to automate tasks at lower costs and achieve high quality outcomes.”