Internet of Things to play a pivotal role in the development of 'Smart' technology across industries
The convergence of the various industries is expected to spark innovation opportunities, especially in the area of connected industries which will be significantly enhanced through the use of information and communication technologies (ICT).
"Connected industries will be a catalyst for efficiency and productivity by linking power, data and signals to enable greater automation processes, creating 'intelligent devices,'" says Nitin Bhat, Partner, Frost & Sullivan Asia Pacific.
Key examples of industries expected to undergo ICT driven transformations include automotive (connected cars), healthcare (connected health) and manufacturing (smart manufacturing), all of which will be influenced by IoT.
2014: Internet of Things (IoT) a pivotal catalyst for the ICT industry
The Internet of Things (IoT) is set to be a key area of interest for IT buyers and sellers in 2014. The explosion of IoT activity over the next few years will be driven by the nexus of low cost sensors, cloud computing, advanced data analytics and mobility.
Andrew Milroy, Vice President, ICT Practice, Frost & Sullivan Asia Pacific believes that IoT will be significant. "Numerous opportunities will emerge as more and more data is generated by machines ('things') than human beings."
He added, "These include the ability to analyse and use vast amounts of data, to store data and source application functionality in/from the cloud, to create, manage and support apps that enable the operation and management of IoT implementations and to provide high speed connectivity between objects and the people, who work with them and use them."
2014: Telecoms market will continue to experience positive growth
For the traditional telecoms revenue comprising of voice and data, it was estimated at USD532.5 billion and is expected to reach USD608.5 billion by 2018. For the Southeast Asia region, in which Singapore is part of, the CAGR is expected to grow by 2.57% over the next 5 years and will be driven by generous voice and data packages through the bundling of services to reduce drop out rates and drive steady growth.
"For the Singapore market, mobile penetration has already exceeded 100% and there is a rising trend that consumers are carrying two or more handheld smart devices and hence effective average revenue per user (ARPU) will be a challenge for service providers," says Nitin Bhat, Partner, Frost & Sullivan Asia Pacific.
Service providers need to re-evaluate their portfolio and introduce new services targeted at the digital lifestyle of the consumer and their participation in the paradigm of Internet of Things (driven by the increasing ubiquity of high speed connectivity of physical and virtual objects).
"To stem the loss of revenue to third party content providers such as Viber, they will need to evaluate new partnership / business models with non-traditional value chain players or utilise strategies such as developing effecting pricing strategies," opined Bhat.
2014: Technology to drive healthcare transformation
The delivery of healthcare services is challenged by rapidly aging populations, disparity in healthcare access, shortage of medical resources and rising costs, while an increasingly technology-conversant patient is rapidly raising expectations for better healthcare information and care.
"Increasing application of technology such as telehealth, mobile and digital health can be instrumental in mobilising scarce resources and managing efficiency. Over the last decade, the focus has been on implementing technology and applications that improve operating efficiency and achieve cost savings," says Rhenu Bhuller, Senior Vice-President, Healthcare Practice, Frost & Sullivan Asia Pacific.
Stakeholders in the healthcare industry, particularly providers and patients are becoming far more aware of the benefits and applications of technology in healthcare.
"Healthcare providers are now looking for measurable ROIs on their investments. Technology areas demanded by providers include knowledge and tools to support better patient outcomes, improvements in workflow efficiency and healthcare service mobility," she added.
2014: Automobiles: Immense possibilities for development
The Google car provides a hint of the immense possibilities with the convergence of the car with the Internet. For instance, its 360 degree Laser Detection (LIDAR) has made it possible to achieve map-accuracy as close as 10cm, a milestone in automotive navigation input capabilities.
Connecting the car to the cloud is likely to bring about a host of opportunities - ranging from self-driving cars to involvement of artificial intelligence software in which there will be no driver involvement.
"We expect that the car will eventually be connected to the following; Home (Home Energy Management System), OEM (Location based services), Infrastructure (Vehicle to Vehicle Communication) and Social (Social Network)," says Vivek Vaidya, Vice President, VP, Automotive & Transport Practice, Frost & Sullivan Asia Pacific.
However, as car manufacturers are not yet equipped to drive the transformation of the 'smart cars', this is a lucrative opportunity for ICT companies to work with automobile manufacturers to transform the industry.