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What is IoT?
IoT, also known as the “Internet of Things”, describes the network of physical objects, so known as, "things" that are embedded with sensors, software, and other technologies that is used for the purpose of connecting and exchanging data with other devices and systems over the Internet . The data is initially collected by sensors then shared in an enormous “cloud-like” network. Afterwards, monitors and other devices can be used to alter or maintain its environment. IoT technology can be adopted in several industries. It is currently seen in the consumers’ home market, transportation, healthcare, buildings/infrastructure and city management.
In 2020 the IoT industry was estimated to have a total worldwide revenue of $389.2 billion USD. As the research conducted by IoT Analytics clearly shows, global IoT spending is expected to grow 24% in 2021, led by investments in IoT software and IoT security. Overall Internet of Things (IoT) enterprises spending grew 12.1% in 2020 to $128.9 billion. Asia-Pacific (APAC) saw the fastest growth (17.0%), followed by North America (14.9%) and Europe (9.7%). However, expenses increase is not homogeneous for every industry. For instance, expenditures on IoT hardware grew 5.4% in 2020, while spending on IoT cloud/infrastructure services grew 34.7% in the same timeframe. Anyway, predictions for the future are bright: spending for enterprises is expected to grow 24.0% in 2021. Beyond 2021, it is projected that IoT spending will grow at 26.7% annually. Such a high growth rate is justified by the fact that technology markets are re-accelerating in 2021 as COVID-19 starts fading. Additionally, IoT remains a high-growth market with opportunities across the entire technology stack, especially in Greater China.
Let us see now some of the most relevant IoT applications: healthcare and agritech.
IoT in Healthcare
The worldwide pandemic during 2020 was a driving force for the increased interest and usage of IoT in healthcare. Mayo Clinic, a US healthcare provider, reported a 10,880% increase in home video appointments. Wearables, as its name suggests, are devices individuals can wear to monitor bodily functions. Various FDA approved wearable devices include Apple’s Watch Series 5, the Fitbit Sense and the Samsung Galaxy Watch 3. Unfortunately, ongoing issues with patient data security raise privacy concerns and act as a barrier to growth.
Regulations supporting the integration of IoT promote the growth of this industry. The US FDA launched its Digital Health Center of Excellence in September 2020 with the goal of removing regulatory barriers to digital innovation within healthcare. Similar initiatives were launched internationally: Brazil's Chamber of Health 4.0 program and India's National Digital Health Mission. Both initiatives aim to increase efficiency, accessibility, inclusiveness, and security of healthcare in their respective countries through digitalization.
Not only were regulations favourable, but investments as well. Within the first nine months of the year, levels of investment were record-breaking. The $9.2 billion USD of investment recorded by the end of third quarter of 2020 exceeded the previous record of $8.2 billion USD in 2018. Rock Health estimates that total funding for the year will exceed $12.0 billion USD however, however FitchSolutions expect levels to moderate in 2021 as the pandemic eases.
IoT in Agriculture
Smart Agriculture (SA) is the use and application of the following interconnected technologies:Intelligent information and communication technologies (IICT), machine learning (ML), AI, IoT, cloud-based analytics, actuators, and sensors with the aid of satellite remote sensing. Smart Agriculture achieves real-time and continuous monitoring of weather, crop growth, plant physical/chemical variables, and other important environmental factors.
Benefits include:
Reduction of water consumption
Implementation of a better plant nursing process with optimized nutrient levels
Decrease risk of yield loss
Assurance of higher revenue
Better yield quality
Decrease overall production of waste
Simplification of labour
Enhance environmental protection
There is undoubtedly an incredible potential with smart agriculture, but technical issues such as expensive high-tech solutions that are not fully accessible, reliable, and durable are still present. As to be expected, the limited internet coverage in rural areas, especially in emerging economies also remains a barrier.
Focus on China
Authorities have pledged to advance the development of online diagnosis and treatment as well as internet-based hospitals. This is expected to help relieve the pressure on medical institutions offline and contribute to outbreak prevention and control. The digitalization of China's healthcare system entails electronic records, digital prescriptions and other IT infrastructure that can systematically track and analyze patient data.
In November 2020, Johnson & Johnson Innovation announced collaborations with Chinese companies that showcase innovation and focus on leveraging advances in science and technology to target areas of high unmet medical need across several areas such as discovery science, lung cancer and medical devices.
Janssen Pharmaceutica has established a multi-target drug discovery collaboration with Insilico Medicine Hong Kong, a Johnson & Johnson Innovation – JLABS @ Shanghai resident company specializing in AI-based drug discovery. The collaboration aims to generate novel and fully patentable chemical scaffolds for difficult targets using AI-based drug designing, potentially leading to significant reductions in time and cost in identifying biologically active hits against selected targets.
The Lung Cancer Initiative at Johnson & Johnson in China, through its affiliate Johnson & Johnson (China) Investment Limited, entered a research collaboration with Diannei (Shanghai) Biotechnology, a Chinese company specializing in AI solutions for lung cancer management. Both parties work together to develop computer vision AI for lung cancer diagnosis.
IoT has impacted various industries so far and will impact many more. Its growth and development are foreseeable, and would profit those who stay connected.
Thank you for reading and we look forward to working with you!