So the UK government's decision to spend an extra £45m on developing IoT technologies is a welcome and needed development, according to the analyst.
The list of UK firms hoping for business grwoth from IoT include ARM, with its low power processors, wireless chip firm CSR and white-space radio firm Neul along with a growing number of smaller companies that are achieving substantial revenues by providing IoT middleware - for example, New Forest Communications in Dorset and London-based Stream Communications.
UK companies are preparing for a year of growth and opportunity in 2014. So-called Internet of things technologies are expected to provide business opportunities in various applications ranging from smart metering to automotive and retail.
“Without a shadow of a doubt the biggest opportunity for the industry is the ‘Internet of Things’ and everything that it encompasses,” said Joep van Beurden, CEO of CSR. “2014 will be the turning point for technology moving from just connecting people through the Internet to connecting almost everything. This represents massive opportunities in not just hardware, but also in software, devices and services,” said van Beurden.
The expectation is that hardware and software firms can benefit from the opportunity offered by extending mobile communications networks to connect systems and machines as well as mobile phones.
For the mobile networks alone, IoT generated $10bn in revenues worldwide in 2013 for mobile network operators, and this will increase to $88bn by 2023, says Morgan Mullooly.