Accenture reveals that the Industrial Internet of Things will accelerate the reinvention of sectors that account for almost two-thirds of world output.
While the Internet of Things (IoT) continues to infiltrate the consumer world, a new report from Accenture reveals that the Industrial Internet of Things (IIoT) is also expected to boost growth in mature markets.
By 2030, capital investments in the IIoT and the productivity gains that should follow are expected to add $6.1 trillion to the United States’ cumulative GDP, the firm said. Potential gains from the IIoT — which refers to new digital services and business models based on intelligent connected devices and machines — could be at risk if companies or governments fail to take sufficient actions to put in place the conditions necessary for the wide adoption of the smart technology.
If the U.S. were to invest 50% more in IIoT technologies and improve enabling factors, such as its skills and broadband networks, the gain could reach $7.1 trillion by 2030, raising its GDP 2.3 percent higher in 2030 than trend projections. The report goes on to note that Germany could also enhance its cumulative GDP by $700 billion during the same time period by taking similar additional actions, raising its GDP 1.7%. Meanwhile, the UK could increase GDP by $531 billion, lifting its GDP in 2030 by 1.8% over trend projections. With IIoT-enhanced measures in place, Accenture projects that China could up its cumulative GDP by $1.8 trillion as well.
The firm surveyed more than 1,400 global business leaders, of whom 736 are CEOs. At the moment, nearly six in 10 (57%) of these corporate executives state that new revenues will be the greatest opportunity of the IIoT, while a number of their companies are focused on using the IIoT to make efficiency gains and see employee productivity and reduced operational expenses, cited by 46% and 44% respectively, as the most likely benefits for their companies. In addition, 87% of business leaders believe that the IIoT will be a net creator of jobs.
“The Industrial Internet of Things will make every worker a knowledge worker, enabling machine operators and other workers to use data to achieve more with equipment than they can today,” said Paul Daugherty, Accenture CTO. “It’s not just about productivity but about being able to offer new value with the help of data delivered to workers in new ways. The Industrial Internet of Things will not only augment work, but result in more virtual and collaborative working environments, as well as create entirely new categories of jobs.”
The IIoT is define as a network of physical objects, systems platforms and applications that contain embedded technology to communicate and share intelligence with each other, the external environment and with people. Interested in reading more about the topic? You can access the entire Accenture report here, and browse through the Bits & Pieces archive here.