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​Smart cities will use 1.6B ‘connected things’ in 2016: Gartner

​Smart cities will use 1.6B ‘connected things’ in 2016: Gartner

Gartner analyst Bettina Tratz-Ryan lists factors driving this IoT implementation - and its impact across public and private organisations.

Gartner estimates that 1.6 billion connected things will be used by smart cities next year, an increase of 39 percent from 2015.

"Smart commercial buildings will be the highest user of Internet of Things (IoT) until 2017, after which smart homes will take the lead with just over one billion connected things in 2018," says Bettina Tratz-Ryan, research vice president at Gartner.

Commercial real estate benefits greatly from IoT implementation. IoT creates a unified view of facilities management as well as advanced service operations through the collection of data and insights from a multitude of sensors.

"Especially in large sites, such as industrial zones, office parks, shopping malls, airports or seaports, IoT can help reduce the cost of energy, spatial management and building maintenance by up to 30 per cent," says Tratz-Ryan, in a statement.

The business applications that are fueling the growth of IoT in commercial buildings are handled through building information management systems that drive operations management, especially around energy efficiency and user-centric service environments.

In 2016, commercial security cameras and webcams as well as indoor LEDs will drive total growth, representing 24 percent of the IoT market for smart cities.

IoT deployment in commercial buildings will continue to grow rapidly over the next few years, and is expected to reach just over one billion in 2018.

"Incentives into the deployment of IoT in commercial real estate will fuel its development," says Tratz-Ryan. "The UK's building information modelling (BIM) mandate, for example, requires that all public sector construction commencing in 2016 complies with BIM (level 2)."

BIM uses data models coming from various information sources including IoT, which will be used by commercial real estate in the future.

Read more: The CIO for a digital era: A collaborative bi-modal approach

In smart homes, the consumer IoT applications that are fuelling growth are smart TVs, smart set-top boxes, smart bulbs and various home automation tools such as smart thermostats, home security systems and kitchen appliances.

"The growing maturity of smart home platforms through an ecosystem of home appliances, infotainment and home sensors will mean that smart home investments overtake those of commercial buildings in 2018," says Tratz-Ryan.

Smart homes will represent 21 per cent of total IoT use in smart cities in 2016, and will record the highest increase over the next five years, she states.

"Device and wireless standards will be embedded in more devices. Homes will move from being interconnected to information- and smart-enabled — an integrated services environment that will provide value to the home and the individual ambience."

Bettina Tratz-Ryan notes that at the recent United Nations' climate change and sustainability conference, COP21 in Paris, many cities pledged on environmental goals to reduce greenhouse gas emissions and improve environmental standards.

"Thanks to data collected from sensors, smart cities can interact and engage with residents and businesses, creating a collaborative environment," she states.

In Singapore, for example, sensors in bus stops can identify people with different needs — buses are announced early to allow enough time for elderly people to be ready to board.

In Malaga or Madrid, environmental sensor-mounted bikes or mail carts register air pollution, with the data uploaded onto a web portal accessible by the public.

Read more: 'CIOs must clearly demonstrate their own ability to change'

“Citizens can actively contribute to the development and strategic direction of their city. At the same time, businesses become more empowered to utilise the sensor data to create their value proposition,” she concludes.

Send news tips and comments to divina_paredes@idg.co.nz

Follow Divina Paredes on Twitter: @divinap

Follow CIO New Zealand on Twitter:@cio_nz

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