Retail Spend on Internet of Things to Reach $2.5 Billion by 2020

Sep 03, 2015

New data from Juniper Research has revealed that retailers seeking to capitalize on IoT (Internet of Things) technologies will spend an estimated $2.5 billion on hardware and installation costs, nearly a fourfold increase over this year's estimated $670 million spend. The hardware spend includes Bluetooth Beacons and RFID (radio frequency ID) tags. In the first instance, Bluetooth beacons enable visibility over footfall as well as the ability to push relevant information to consumers' smartphones. Meanwhile, RFID aids in real-time asset tracking, reduced labor costs, and even dynamic pricing according to stock levels and online pricing.

The new research, The Internet of Things: Consumer, Industrial & Public Services 2015-2020, found that leading retailers using the IoT to generate an ecosystem are poised to gain market advantage and truly capitalize on the opportunity. Linking the hardware elements of RFID tags, beacons, and connected consumer electronics, such as wearables, with software analytics promises in-depth business insight and an enhanced customer experience.

Additionally, Juniper Research found, with the number of connected units within the IoT forecast to reach 38.5 billion in 2020, attitudes and methods with regards to cybersecurity will have to undergo fundamental change. Where today's security is principally focused on access prevention, the IoT security model will require robust means of identifying inevitable network breaches. Should suspicious activity be detected, parts of the network can then be shut off in similar fashion to marine vessel bulkheads to prevent attack spread.