People use the internet for a variety of things.
Such as navigating websites, reading blogs, looking up destinations, and making purchases.However, the internet is much more than just a place to browse.
It provides the digital tethers that connect one web page to another and communicates across them as well, which makes information accessible from virtually anywhere.
As technology has advanced in the last 15 or so years a new form of the internet has been born, the Internet of Things.
The Internet of Things, or IoT, is not a collection of web pages but is made up of the vast amount of internet-connected devices we use every day.
These "smart" devices collect data, track your usage, and automate many systems and processes we face on a daily basis.
They also range from handheld personal items, such as the Fitbit or iPhone, to very complex medical devices that track your health. There are even thousands of smart devices just for your home as well.
So how can this new realm of technology be an asset in your financial ventures?
Well, let's find out!
Size & Scope
Every day more and more people are investing in the IoT and it isn't stopping anytime soon.
Business Insider estimates that there will be over 24 billion smart or internet-connected devices installed across the globe by 2020.
To put it in easier terms, that means at least 4 devices per every person on earth.
Sales of the IoT have also increased from $18 billion in 2009 to $1.1 trillion in 2017 and are expected to reach $1.7 trillion by 2019.
With such strong and steady growth, investment opportunities are at an all-time high.
Breaking Down The IoT
Whenever you hear the words "smart device" or "smart home" and maybe even "Internet of Things", what comes to mind?
For most, they think of the plethora of smart devices you can get at Best Buy or Target such as smart light switches, smartphones, and smart televisions.
Consumer electronics are just a small subsection of products that are a part of the IoT.
So what are the other subsections of the IoT?
The IoT breaks down into 4 major areas:
- Consumer Electronics
Let's take a closer look at each of these.
Like I mentioned before, most people think of consumer electronics when they hear about new smart tech coming out.
Brands such as Apple, Microsoft, Amazon, and Google all have their hands in on creating new Internet-connected devices and any and everything that supplements these devices.
While these brands may not recognize themselves as IoT companies, the work they do directly and indirectly affects this newer industry.
Most people now have somehow interacted with a smart consumer device in some way, whether it was using a friend's Amazon Echo or just using a smartphone.
For investors, consumer electronics is the easiest area of the IoT to see potential growth.
Most of these consumer electronics offer many opportunities to spend more money beyond the initial sale of the device.
For example, you go purchase a smart security camera from the store.
You get home and get it installed and it works perfectly.
What you didn't realize is that the camera's company only allows up to 5 gigabytes of video storage in their cloud for free.
Don't fear, they offer more storage and 24/7 support if and only if you sign-up for a subscription for only $10 a month.
This is how these tech companies are growing so rapidly and investors should get excited about it.
Look closely because there are companies such as GE that you wouldn't classify as an IoT company but are stepping up and creating amazing IoT appliances.
The world of healthcare is also playing a huge role in the IoT.
Companies like Apple are collecting healthcare data from their smartwatches to ultimately find better solutions to help their users.
This kind of personalized tracking and data aggregation can help an individual better themselves through data.
On a larger scale, IBM created their AI platform known as Watson that powers many health-related services.
Watson helps find more precise cancer-treatments, uses data to find alternative uses of medicine, and even help manage healthcare programs.
This is by no means the largest section of IoT but is growing rapidly.
Investors would be wise to jump on board now.
In the world of agriculture today, the most popular term being thrown around is "precision farming".
Precision farming is the use of IoT devices to track things such as temperature changes, rainfall, and even soil conditions.
With this type of technology, farmers could avoid loss crops due to atmospheric changes and ultimately bring down the cost of fresh produce.
The precision farming industry was valued at almost $4.5 billion and is predicted to double by 2019.
Agriculture is a slow growing area of the IoT but has a lot of promise in the coming years.
Top IoT Stocks
Don't Miss Out
As you now know the growing industry of the IoT could mean big money, but like any stocks, it is all about timing.
Even though the world of IoT devices has grown immensely in the last decade, competition is still relatively low with a handful of large players dominating the markets.
With that, you should take a closer look at these IoT giants and decide for yourself what you want to invest in before the competition gets high and the stock's value decreases.
Diversify your portfolio with the Internet of Things today and see your investments grow.
Want to know how smart tech can start enhancing your daily life or place of work? Book Your Discover Call with KP Evolutions today to see what is available for you!