State and IoT: growth vectors in Russia and worldwide
Even now, there is a ready-made infrastructure for working with the Internet of Things: data transfer networks, data centers, and computing resources for data bulk processing. It makes IoT one of the most promising modern technologies.
The application of the Internet of Things in the manufacturing industry and urban infrastructure allows to improve conditions for business growth, increasing the economy level in general.
Therefore, countries design government programs aimed at the IoT support. For example, China, Singapore, and Russia have chosen the way of IoT integrated development. They form roadmaps with specified implementation dates: most frequently up to 2020–2021. Such countries as the USA, Germany, and the UK prefer to conduct specialized initiatives focused on certain activity areas.
Let’s examine how the innovative policy affects the IoT evolution in Russia and throughout the world.
IoT implementation policy: overall picture
Following the results of 2018, International Data Corporation (IDC) has estimated the volume of the Internet of Thing global market at $646 billion. As a comparison, researchers from MarketsandMarkets estimated the market at $424.7 billion in 2017. Analysts predict that the annual market growth, on the average, will be 23.1% and will reach approximately $1.2 trillion by 2020.
The analytics of Russian IoT segment is compliant with foreign trends. According to PwC Russia, the effect of the IoT integration into electric power industry, healthcare, agriculture, storage of cargoes, as well as smart cities and smart homes in Russia will be around 2.8 trillion RUB by 2025. It will be caused by savings on costs for technical services and business asset maintenance, increase in production energy efficiency, and optimization of transport and logistics flows.
Industrial Internet of Things: advantages for economy
Producing operations with advanced technologies are faster and larger. IIoT (Industrial Internet of Things) is able to modernize manufacturing as well as to make it more efficient and competitive, which is quite significant in the context of open economy.
Currently, key participants of the Industrial Internet of Things can be found in the USA, Germany, and China: General Electric, Cisco, Intel, Rockwell Automation, ARM, ABB, Siemens AG, Honeywell, Dassault Systemes, Huawei, Zebra Technologies, IBM, and Bosch.
For instance, US-based General Electric has integrated a remote monitoring system in order to reduce expenses of customers utilizing gas turbines all over the world. The program collects data on turbine operations and sends them to the processing center. Based on the obtained information, the team of 20 specialists accepts prompt decisions regarding machinery maintenance.
As the result, due to General Electric, the overall cutting of staff payment costs is estimated at $9 million in 2018. Expenditures for third-party software development are decreased by $3 million, while added values for turbine utilizing enterprises are assessed at $100 million per year.
IIoT projects in Russia
Although the amount of sensors and connected devices in Russia is rapidly growing, experts stress the absence of carrier-class platforms adapted to IoT requirements.
This is because Russia has a range of specific factors complicating decision making in favor of IoT. One of them is the absence of return on investment within 2–3 years, thus investing in long-running technologies is extremely unprofitable.
Besides, it is difficult to change companies’ internal processes, regulations, document flow, approaches to information receiving and processing. A lot of companies are still not ready to enhance flexibility, as this alteration requires a cultural transformation of senior managers, personnel, partners, and contractors.
“The IoT development in Russia depends largely on the level of state support and entrepreneurs’ awareness of Internet of Things advantages. Technological solutions offered by both foreign and Russian providers are already available on the market, but users are still lack of technology usage scenarios that will produce the meaningful outcome,” Elena Semenovskaya, Research Director at International Data Corporation Russia, says.
Smart cities as an element of technology-savvy country image
One of the Smart City features is creating of innovative country image. To spark such an interest, international IT companies frequently publish world ratings of smart cities. In 2018, Juniper Research and ОСIntel included Melbourne (Australia), Geneva (Switzerland), Amsterdam (the Netherlands), San Francisco (the USA), and Tokyo (Japan) in their list. Singapore has become the finalist.
The Asian megalopolis was mentioned due to the efficient public transport system and social activity of citizens. Inhabitants of Singapore can save up to 60 hours per year because of the advanced transport system, while a video surveillance complex allows law enforcement authorities totackle crime more successfully. Moreover, the city authorities have succeeded in providing senior citizens with various mobile gadgets helping them to monitor health conditions and talk to doctors remotely.
By the way, Singapore’s market economy stays at a high ebb even during low tax rates, which makes the city perfect for attracting investors.
Smart City in Russia
Russian cities also started developing the smart infrastructure. The capital of Russia has shown the best results as of today. Moscow has been integrating intelligent systems into several areas over the last few years.
Russia’s capital has designed electronic services in order to simplify making appointments or taxpaying. One is integrating the Smart City transport system aimed at informing drivers of the weather and road conditions as well as at monitoring road traffic. Wi-Fi hotspots are installed in parks, pedestrian areas, and in public transport of Moscow.
iKS-Consulting calculated that the number of IoT devices in Russia was 15.2 million in 2018. Given the popularity of IoT gadgets among inhabitants and, consequently, the increase in hacker attacks, the Russian authorities are actively focusing on the industry standardization. By September 2019, Russia should develop a legal framework for the identification of the user Internet of Things.
Smart household appliances are produced by different standards, which can be accompanied by conflicts and failures. It is expected that the total identification will enhance the common network stability. It will also become a tool for combating hackers who conduct DDoS attacks from hacked smart gadgets.
Discover more about the Internet of Things at IoT Conference
to be held on March 27 in Moscow.