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Internet of Things Still Growing at Rapid Pace Amid Growing Privacy Concerns

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For quite some time now, the Internet of Things (IoT) has been the word of mouth in the tech industry. Lately, it seems to be increasing in popularity at a much faster rate.

A lot of people are saying that the IoT may be heard about more often in 2015. However, there is also speculation that some of the talk about the IoT may not be as good as expected. This could be attributed to some privacy and security concerns from consumers.

According to a new study from the Internet of Things Consortium (IoTC), almost 65 percent of U.S. consumers are either moderately or extremely open to the idea of adopting smart home technology. Moreover, 71 percent of this group of consumers would consider purchasing products and services for a smart home only after being recommended -- through word of mouth -- by trusted individuals or in-store employees.

"Data security and identity protection are clearly top of mind for consumers looking at IoT products and services," said Jack Ogawa, director of marketing for NXP Semiconductors. "The developing IoT industry has an opportunity to utilize state-of-the-art software and semiconductor technology to set the standard for secure connections, both in the Cloud and in the connected IoT products themselves."

The consumer side of the IoT would somehow create an impression that everything about it is a result of plain curiosity. While it is true that a number of products have already been introduced, most of them have gained attention because of their novelty. Moreover, the convenience that they promise is very minimal.

At the moment, the IoT needs to showcase synergy and measurable value, which it has yet to prove.

The industrial significance of the IoT tells a different story. According to an analysis made by David Floyer, CTO of Wikibon, IoT implementations on industrial plant equipment have resulted in an increase in efficiency and reduction in maintenance. The range can start from at least 10 percent to 25 percent in both scenarios.

As a result of the proven ROI, industries are beginning to adopt IoT technologies. Around 18 percent of companies that have been streamlined using industrial machinery are now implementing the IoT into their systems and production lines.

Floyer further predicts that by 2020, investment in Industrial IoT could reach as much as $500 billion. This could generate an annual value return of a whopping $1.2 trillion.

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