What is IoT? Its New Opportunities and Markets

The burgeoning Internet of Things (IoT) movement - where everyday devices are connected to the Internet and each other - is one of the most talked about tech sectors in recent years. Connected gadgets, from wearables and home appliances to jet engines and industrial machinery, are expected to create a nearly US$2 trillion global market by 2020. The business implications for advertising agencies, electronics makers, and even the neighborhood coffee shop cannot be ignored.

Japan, specifically, is playing catch-up with the West. IoT was born in Silicon Valley, and experts believe that Japanese IoT innovation will lag several years behind the fast-moving US firms. What can be done to speed up the process and what sectors should entrepreneurs, advertisers, and business owners be focusing on?

With its rapidly aging and shrinking population, Japan is on the cusp of a population crisis. Caring for the sick and elderly with fewer and fewer capable humans will create a huge market in the medical tech segment. Every machine in the hospital room of the future will be connected to the internet and sensors will fill in where round-the-clock nurses cannot.

The manufacturing sector will also embrace IoT as production lines become increasingly automated. Big data will boost accuracy and efficiency with floor managers able to monitor tasks from anywhere using a smartphone or tablet.

Brick and mortar retail stores will send coupons directly to passerby’s smartwatches. Perhaps entire neighborhoods - even cities - will soon connect to the Internet.

For all of its benefits, the fledgling IoT sector is also creating concerns. With a reliance on a persistent, strong signal, what happens when the Internet goes down? How long will it be before hackers are exploiting your washing machine and making the lights flicker - or opening a dam? How much change will be necessary to bring existing infrastructure up to speed and how much will service providers charge when everything with an on/off switch is using data?