Management consulting firm McKinsey & Company (New York, NY) has published a list of ten trends that it sees as shaping the Internet of Things (IoT) business landscape in 2019.
McKinsey sees the following trends occurring at the market level:
- Favorable winds are blowing in heavy industrial sectors - The "industrial Internet" is real. The company sees clients gaining meaningful traction in oil and gas, mining, utilities, and agriculture, while impact is developing quickly in advanced industries such as automotive, complex machinery, and discrete manufacturing.
- Amazon and Google have hit critical mass in connected homes - The connected home has been a commercially available concept for more than 25 years but has always failed to live up to its hype. This is finally changing. Alexa and Google Assistant have achieved critical mass and, despite some security and privacy concerns, are increasingly integrated into how we operate things in our homes.
- Chinese IoT firms are winning locally and starting to gain ground globally - Many Western start-ups and large companies alike want to capture a small piece of the impressively large IoT market opportunity in China. However, at nearly every turn, a credible Chinese company has emerged to compete - for example, BAT (Baidu, Alibaba, Tencent) in native cloud infrastructure as a service (IaaS), Xiaomi in wearables and smartphones, Ayla in connected HVAC and appliances, or Lifesmart or Landing in smart home. Also, these Chinese IoT firms have global aspirations and are following Chinese industrial companies that are globalizing and also moving into Belt & Road initiative countries.