Internet of Things
Hype in consumers - possibilities in companies
Technology, Media & Telecommunications Predictions: In year 2015 there will be over one billion smartphone upgrades. This year in-store smartphone purchases increase worldwide. Companies are pioneers in adopting new technologies. Print is not dead, at least not for print books.
According to Deloitte’s predictions 1.35 billion smartphones will be sold in 2015, but over a billion of them will be upgrades – new phones to those who already have one. Increased screen size, faster speed, bigger storage and updated software drive consumers to upgrade their smartphones with a frequent pace.
The growing popularity of smartphones also influence on payment methods. Mobile payments are expected to increase exponentially in 2015. This year in-store smartphone purchases worldwide will increase by more than 1,000% from last year. While the mobile wallet won’t replace the traditional wallet yet, 2015 will be a tipping point toward wider consumer adoption of in-store smartphone payments.
"Smartphones are already being used to check balances, transfer funds and transact online, but contactless in-store payments have not yet gained wider international acceptance. We predict that 2015 will be the first year in which the multiple prerequisites for mainstream adoption have been sufficiently addressed", says Deloitte’s Partner and Technology, Media & Telecommunications Industry Leader Jukka-Petteri Suortti.
These predictions are according to the 14th edition of Technology, Media & Telecommunications predictions, a report by Deloitte.
Internet of Things conquering enterprise market
During the past years, consumers have led the way in adopting new technologies. The situation seems to be now changed. According to our predictions new technologies such as Internet of Things (IoT) devices and 3D printers are becoming more common especially among enterprises. At least this year, the consumer market will remain a niche.
In 2015, one billion wireless IoT devices will be shipped, up 60% from 2014. Despite media focus on consumer oriented IoT devices such as smart washers and lamps, companies are the main players behind the market growth.
“Internet of things creates many new possibilities for both consumers and companies. However, according to our predictions many of the possibilities are in companies, at least for now. In 2015, the IoT specific hardware is likely to be worth $ 10 billion, and the associated services enabled by the devices worth about $ 70 billion. 60 % of all wireless IoT devices will be bought, paid for and used by enterprises and industries. Enterprises are strongly creating the world of internet of things”, concludes Suortti.
3D printers are also getting more common in the enterprise market, not the consumer. Based on our predictions, in 2015 nearly 220 000 3D printers will be sold worldwide, with a dollar value of $ 1.6 billion. We estimate that enterprises will account for just under 90% of the value of all 3D printers and over 95% of all printed objects by volume.
Print is not dead
Print is alive and well, at least for print books. We predict that in 2015 print will represent more than 80% of all book sales in dollars worldwide. Despite the rapid growth of e-books, especially young consumers are not ready to give up on printed books. Young people are attached to print books and are willing to pay for them.
Whether it is online or print, consumers are ready to pay for the rich content. Despite of the economic downturn, young adults lead the way in 2015 and spend on pay TV, music, computer games, books and live sports.
The TMT Predictions are based on worldwide research supported by in-depth interviews and input from Deloitte member firm clients, Deloitte alumni, its industry analysts, leading TMT executives, and thousands of Deloitte member firm TMT practitioners across its global network. The focus of Predictions varies from year-to -year, but one theme appears constant: the impact of TMT on our behavior steadily deepens.