IoT rising out of Asia and Australia

Photo credits: Mario Behling

Internet of Things (IoT) has been “the next big thing” for a while now. Machine-to-machine (M2M) communication empowering computers to collect, analyze and utilize data was going to make everything “smart”. Signs of IoT taking over are still few and far between, but if you turn your eyes to the east, a very different picture emerges.

A significant boost in the IoT industry in the Asia-Pacific is building its way to a boom that will affect technology, economics, and politics the world over.

Globally, there are currently 10 billion devices connected to the internet; by 2020, estimations from a Business Insider Intelligence report mention 35 billion. BI also predicts that nearly US$6 trillion will be spent on IoT solutions in the next five years.

What’s true for the western economy is all that much clearer in the east. An increasing amount of companies and startups from Japan, Australia, India and other Asian countries are making headlines in the IoT world.

In a recent report, Frost & Sullivan predicted that in 2016, IoT will be one of the biggest investment venues in the Association of Southeast Asian Nations (ASEAN) markets. According to the estimates, the ASEAN IoT market was US$1.68 billion for 2015, and is expected grow to US$7.53 billion by 2020. The main technologies to share the focus will be cyber security, mobile payments and ecommerce.

State encouragement

The report seems to represent the area’s state of mind well. In Australia, the Australian Communication Alliance established a special think tank to prepare for the major changes IoT is about to bring. Their report recommended the government does its part to support IoT deployments, from adjusting licensing to ensuring Internet Protocol version 6 (IPv6) standards are default.

Some IoT functions are already under way: smart city Adelaide has teamed up with Cisco to create parking sensors to easily direct drivers to available parking places and ease congestions in the city.

Meanwhile, Australian Rail Track Corporation, working with Lockheed Martin, are running trials on a new system of digital signalling for trains, and sensors are being added to the Sydney Harbour Bridge for remote monitoring.

The government is fully engaged in IoT in India too. Prime Minister Narendra Modi announced Make in India, an international marketing campaign, in order to attract investors from various tech sectors, including IoT. Several IoT-oriented startup incubators will also be joining the party.

Investors are starting to catch up. SenseGiz, a wearable IoT firm, just raised US$600,000 from two major venture funds in India and in Japan. SenseGiz’s products include STAR, a band or clip that triggers automatic alarms in selected contacts’ phones in case of emergency.

Two more names to look out for are CarIQ, a USB-like device for cars that can track various parameters like engine load and coolant temperature, and send feedback to the driver; and Entrib ShopWorx, which monitors and provides analytics in order to improve manufacturing processes.

Rising to the challenge

China, the world’s largest internet user base, is expected to become one of the world leaders when it comes to IoT. Between 2009-2013 the Chinese IoT market has grown at a staggering pace – from US$27 billion to US$82 billion.

The market is currently engrossed in solving some of the industry challenges it faces. Perhaps the biggest of all is the lack of universal IoT standards, as M2M communications today rely on anything from Wi-Fi and Bluetooth to mobile networks.

IoT’s ecommerce potential