102 million connected things illustrates rapid growth of Internet of Things in Nordics
The Nordic region is in pole position to capture IoT opportunities, driving business innovation and improving quality of life across the region. A new report by TeliaSonera and Arthur D. Little expects there will be close to four connected devices per person in the Nordics by 2018, totaling 102 million connected things. Advancements in connected cars, smart homes and digital health are expected to help drive market growth for IoT solutions by 23 percent annually until 2018, reaching a market value of EUR 9,1 billion.
“The Internet of things is growing rapidly in the Nordics; it is the early stages of a revolution that is going to transform society, industries and the way we live. From a peoples’ perspective this will mean new ways of keeping homes safe, more efficient and convenient transportation systems as well as improved healthcare. It will also create new opportunities for Nordic companies to launch innovative products and services that will have a profound impact across industries”, says Hans Dahlberg, head of TeliaSonera Global M2M Services.
“We believe that the Internet of Things will continue to disrupt old value chains and service models. Seizing the opportunity is key to ensure future competitiveness in all industries”, says Martin Glaumann, Partner at Arthur D. Little.
Similarly, improved security and convenience is enticing car manufacturers and owners alike to push more connected cars unto the streets, aided by favorable regulatory and political conditions.
From remote control to autonomous connected things
IoT services that remotely control and monitor connected things are increasingly common. At the same time, more companies are asking themselves how to best make use of the vast amounts of data these devices generate to enable intelligent decision making, research and development, and predictive services. On the horizon are autonomous connected things, such as driverless cars, which will place entirely new demands on regulation, security and quality of service of connectivity.
“IoT allows third party businesses to leverage information from thousands of connected devices to launch new innovative services. For example, information about cars’ health and how they are driven can help reshape business models in car insurance and change repair shops go to market strategy; this is a fundamental shift in how these industries traditionally operate,” says Hans Dahlberg.
Interoperability between connected things - key to realizing full potential of IoT
In parallel to this development, connected things are expected to increasingly communicate with each other; improved interoperability will enable even more advanced services. For connected vehicles, a transformation of mobility through intelligent transport systems can be observed. In healthcare this means establishing more patient centric care processes across providers and levels of care. Connected buildings, like smart homes, are gradually changing to smart cities.
“Previously separated ecosystems will converge into fully integrated systems, interoperability is key to realize the full potential of IoT”, concludes Martin Glaumann.
About the 2015 edition of the Connected Things report
TeliaSonera and Arthur D. Little have teamed up to draw insight from the IoT development in the Nordic region, highlighting significant benefits to individuals as well as substantial opportunities for private and public organizations. The report deep dives into three segments that will have a profound impact on the way we live in the Nordics: Connected Vehicle, Connected Building and Connected People.
About Arthur D. Little
Arthur D. Little, founded in 1886, is a global leader in management consultancy, linking strategy, innovation and technology with deep industry knowledge. We offer our clients sustainable solutions to their most complex business problems. Arthur D. Little has a collaborative client engagement style, exceptional people and a firm-wide commitment to quality and integrity. The firm has over 30 offices worldwide. Arthur D. Little is proud to serve many of the Fortune 100 companies globally, in addition to many other leading firms and public sector organizations.
TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera helps people and companies communicate in an easy, efficient and environmentally friendly way. Our ambition is to be number one or two in all our markets, providing the best customer experience, high quality networks and cost efficient operations. TeliaSonera is also a leading wholesale provider who owns and operates one of the world’s most extensive fiber backbones. In 2014, net sales amounted to SEK 101.1 billion, EBITDA to SEK 35.2 billion and earnings per share to SEK 3.35. The TeliaSonera share is listed on Nasdaq Stockholm and Nasdaq Helsinki. Read more at www.teliasonera.com .