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Report claims $341bn could be squandered on non-standardised IoT deployments in smart cities by 2025.
A new report by Machina Research predicted that around $341 billion could be “squandered” by 2025 on the deployment of IoT applications in smart cities if city authorities and their technology partners do not adopt a standardised approach.
The report, which was commissioned by InterDigital, said smart cities represent a microcosm of the wider IoT and thus reflect the financial and operational risks associated with fragmentation and complexity in IoT deployments.
It found that the use of open standards “is imperative” if the best use is to be made of IoT applications and services. The $341 billion figure was obtained from the prediction that the cost to implement smart city deployments could reach $1.12 trillion by 2025 if non-standardized IoT solutions are used, while adopting standardized solutions would equate to a cost of $781 billion.
Machina Research said the cost savings would result from interoperability, freedom from vendor lock-in and the reduced systems integration costs that IoT standardisation provides. It said the report also indicated that a standards-based IoT environment could also mean a 27% increase in the number of connected devices within smart cities by 2025.
Mobile technology specialist InterDigital is a strong supporter of open standards for IoT. Its oneMPOWER platform, which supports the oneTRANSPORT smart city initiative, is based on the oneM2M global standards initiative for machine-to-machine and the IoT that has the support of eight global ICT standards bodies and more than 200 companies worldwide.
Jim Nolan, executive VP for IoT solutions at InterDigital, said the current fragmentation that characterises the world of IoT is causing a delay in the widespread adoption of IoT.
“We can’t hope to realize any smart city ambitions until all stakeholders can agree on a common set of IoT standards,” Nolan said.
Jeremy Green, principal analyst at Machina Research and lead author for the report, added that government bodies investing in smart city initiatives to drive civic improvements are under constant scrutiny to ensure public funds are spent wisely.
“Furthermore, the existing ‘internet of silos’ approach to IoT deployment is delaying the widespread adoption of IoT solutions, including smart cities. Our research demonstrates that open standards can solve both challenges, ensuring money is invested more efficiently, and dramatically accelerating IoT adoption and growth,” Green said.
