Smart Cities Could Waste $341 Billion by 2025 on Non-Standardized IoT Deployments
May 05 2016 - 3:00AM
City authorities and their technology partners could squander $341
billion by 2025 if they adopt a fragmented versus standardized
approach to IoT solution deployment. This is the conclusion reached
by Machina Research in a new white paper, commissioned by mobile
technology and research company InterDigital, Inc. (NASDAQ:IDCC),
which analyzes potential IoT deployments in smart cities.
Incorporating a number of vertical domains, multiple parties, and
diverse IT systems, smart cities are a microcosm and good
illustration of the wider IoT. As such, they reflect the financial
and operational risks associated with fragmentation and complexity
in IoT deployments.
“The world of IoT is currently characterized by competing
technologies and platforms, further complicated by numerous
standards development organizations, and this fragmentation is
causing a delay in the widespread adoption of IoT,” said Jim Nolan,
Executive Vice President, IoT Solutions, at InterDigital. “We can’t
hope to realize any smart city ambitions until all stakeholders can
agree on a common set of IoT standards. Machina Research’s analysis
proves the extremely valuable business case for an open
standards-based approach to IoT.”
Smart cities are a complex and multi-dimensional vertical within
the IoT landscape, crossing the public and private sectors. Open
standards are imperative for the development and deployment of IoT
applications and services, where defining a best working practice
will ensure stakeholders can maximize the opportunities presented
by this rapidly evolving market. Key findings from the Machina
Research report include:
- Using non-standardized IoT solutions, the cost to implement
smart city deployments could reach $1.12 trillion by 2025;
- Adopting standardized solutions on the other hand would equate
to a cost of $781 billion – a saving of $341 billion worldwide by
2025 – 30% of the non-standardized total;
- Cost savings would result from interoperability, freedom from
vendor lock-in, and reduced systems integration costs that IoT
standardization provides.
The benefits associated with a standards-based approach to IoT
are not purely financial. The Machina Research report also
indicates that, by 2025, a standards-based IoT environment could
also mean a 27% increase in the number of connected devices within
smart cities, and could improve the speed and extent of adoption of
smart city applications.
The introduction of standards-based IoT solutions would also
create simpler processes for building new applications and allow
easier replication of schemes, and inherent interoperability will
also make data monetization easier. Ultimately, standards-based IoT
solutions will make smart cities more attractive, provide
opportunities for application developers, and accelerate technology
innovation.
“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,” said Jeremy
Green, Principal Analyst, Machina Research and lead author for this
report. “Our research demonstrates that open standards can help to
solve both challenges, ensuring money is invested more efficiently,
and dramatically accelerating IoT adoption and growth.”
InterDigital develops wireless technologies for mobile devices,
networks, and services. It is a key contributor to global wireless
standards, designing and developing a wide range of innovations
that are used in digital cellular and wireless products and
networks, including IoT, 2G, 3G, 4G and IEEE 802-related products
and networks.
InterDigital’s oneMPOWER™ platform is driving the oneTRANSPORT
initiative, an innovative smart city project focused on addressing
the challenges in transportation systems with IoT technology. It
enables transport information to be shared by a number of
stakeholders including transport authorities, municipal
authorities, and new third parties, to optimize transport networks
across towns and cities. The project, being run by InterDigital and
10 partners, integrates a multitude of previously fragmented and
isolated data assets and data services into a holistic application
that sets the foundation for more efficient transportation systems
for cities and travelers alike.
“InterDigital has long recognized the inherent value that open
standards can bring across many domains. As curiosity and
development around IoT grows, it’s in the interests of all
stakeholders that standards are created and implemented that
increase adoption and protect against wasted investment. Our
approach to open standards for IoT is already being realized
through oneMPOWER and the oneTRANSPORT initiative. Testament to
this approach is the trial and adoption of the platform by a number
of municipal authorities in the United Kingdom. We expect
InterDigital will play a full role in the standardization of
solutions to help ensure the IoT becomes a reality,” concluded Jim
Nolan.
The full Machina Research report, entitled ‘Open standards in
IoT deployments would accelerate growth by 27% and reduce
deployment costs by 30%’, is available to download here.
About InterDigital®
InterDigital develops mobile technologies that are at the core
of devices, networks, and services worldwide. We solve many of the
industry's most critical and complex technical challenges,
inventing solutions for more efficient broadband networks and a
richer multimedia experience years ahead of market deployment.
InterDigital has licenses and strategic relationships with many of
the world's leading wireless companies. Founded in 1972,
InterDigital is listed on NASDAQ and is included in the S&P
MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital Contact:
Patrick Van de Wille
Email: patrick.vandewille@interdigital.com
+1 (858) 210-4814
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