There’s been a lot of discussion recently around the changing face of manufacturing, the forces causing that shift, and how those forces are leading to a world that’s smart and connected -- what some refer to as the Internet of Things (IoT). As defined by McKinsey & Company, the “IoT is embedding sensors and actuators in machines and other physical objects to bring them into the connected world.”
There are many ways that end-users and manufacturers alike can benefit from such a world. For example, the IoT lets businesses manage assets, optimize performance of those assets, and even create new business models from those same assets. But perhaps what’s most remarkable about this pervasive network of “things” is how much potential economic impact it carries.
A recent McKinsey Global Institute report, "Disruptive technologies: Advances that will transform life, business, and the global economy," estimates that by 2025, the economic impact of the IoT could be as much as $5 trillion to $7 trillion. A similar Gartner report is a bit more conservative, but still estimates a whopping $1.9 trillion worldwide economic value impact from the IoT by 2020.
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— Lee Smith is a guest blogger on Design News. He is the divisional general manager, Service Lifecycle Management (SLM), at PTC.