IOT investment to jump four-fold to $2.5bn by 2020: Research

NEW DELHI: Major retailers are expected to increase their investment in internet of things (IoT) technology four-fold to $2.5 billion by 2020, nearly a four-fold increase over this year’s estimated $670 million spend, according to Juniper Research.

The hardware spend includes Bluetooth Beacons and RFID (radio frequency ID) tags. In the first instance, Bluetooth beacons enable visibility over footfall as well as the ability to push relevant information to consumers’ smartphones.

Meanwhile, RFID aids in real-time asset tracking, reduced labour costs and even dynamic pricing according to stock levels and online pricing.

The new research, The Internet of Things: Consumer, Industrial & Public Services 2015-2020, found that leading retailers using IoT to generate an ‘ecosystem’ are poised to gain market advantage and truly capitalize on the opportunity.

"Retailers such as Zara and Target are already taking advantage of the benefits offered by RFID asset tracking," noted author Steffen Sorrell.

"Meanwhile, the beacon industry is expanding rapidly; used as a method to provide consumers with contextually relevant information in conjunction with their smartphone or wearable will enormously enhance the in-store experience,” said Sorrell.

Additionally, Juniper Research found, the number of connected units within IoT is forecast to reach 38.5 billion in 2020. At the same time, attitudes and methods with regards to cybersecurity will have to undergo fundamental change.