This problem with the Internet of Things may increase smart city costs by $341 billion

According to the latest analysis of Internet of Things and M2M market research firm Machine Research, one of the difficulties encountered in the development of the Internet of Things may increase the cost of smart city projects by 43.4%.

Currently, the Internet of Things does not yet have a universal interoperability standard. IoT devices developed by different vendors do not communicate well with each other and share data. The lack of such standards has become a major obstacle to the further development of the smart home market, because consumers do not want to purchase smart home devices that cannot be uniformly controlled.

In the smart city sector, this issue may add hundreds of billions of dollars in the cost of smart city projects around the world. Machine Research anticipates that deploying IoT solutions without interoperability standards will increase the global smart city project's cost by $341 billion by 2025; without standardized solutions, the deployment cost of the global smart city project will It reached 1.12 trillion U.S. dollars, and if a standardized solution is used, this cost can be reduced to 781 billion U.S. dollars.

The huge difference in cost is because if there is no universal interoperability standard, municipal authorities deploying smart cities must spend more to integrate different systems and equipment from different vendors so that they can communicate with each other.

These high integration costs will seriously affect the promotion of smart cities. The report points out that the development of universal interoperability standards for the Internet of Things can increase the total number of networked devices deployed by the global smart city project by 2025 by 27%.

Cost has become an important challenge for smart city projects, and municipalities everywhere are constraining their budgets. BusinessInsider’s research organization BII estimates that the number of connected devices in smart city projects worldwide will exceed 1 billion units next year.

The accelerating development of urbanization will force cities around the world to solve population growth, traffic congestion and pollution issues as soon as possible in the coming years. The pressure on the municipal authorities is increasing. They hope to use the Internet of Things technology to improve service efficiency and improve the quality of life of citizens.

Many cities have already connected their infrastructure to IoT devices such as sensors and smart meters. The fastest-growing smart city project is Barcelona.

BII research analyst Jonathan Camhi compiled a detailed smart city report explaining how other cities can learn from Barcelona's smart city project. Other cities invest in IoT technology. How will the development of time and how these investments will affect the global urban economy?

Came’s report draws the following key conclusions:

· Internet of Things deployment will create $421 billion worth of economic value for global cities in 2019. These economic values ​​will be reflected in the revenue contribution from the installation and sales of IoT equipment and the savings from the efficiency of urban services.

· Between 2015 and 2019, global cities’ investment in IoT technology will increase by US$97 billion, which will be the main content of government IoT technology investment, surpassing government’s other IoT application cases such as military drones and robots. On the investment.

· Over the next four years, the number of IoT devices installed in global cities will increase by more than 5 billion units, which will create a huge business opportunity for IoT hardware vendors and software vendors.

· Internet of Things technology will bring many benefits to cities around the world, including reducing traffic congestion and air pollution, improving public safety, and providing new ways for governments to interact with citizens.

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