$ 341 billion, are what will cost the lack of standards in the town connected over the next years. Additional costs, but also brake for global deployments and adoption, the market slowdown is to run against the fragmentation of standards implemented for countless connected objects that fall under the name of “Smart City”. Deployment costs will reach 1.120 billion dollars by 2025 including a third that could be saved with better standardisation.
Analysts estimate the market for Smart City between 1,100 and 1,500 billion
For equipment suppliers, the Smart Cities market is a real eldorado. More than 1,000 billion dollars to be shared between providers lighting solutions, equipment HVAC (heating, ventilation and air conditioning”), management of energy of buildings, parking and of course security. A way for cities to lower the costs of this mutation would be to push vendors to agree on common standards, and promote solutions compatible with these standards in their purchases.
Machina Research analysts that the generalization of such an approach would reduce by a third the amount of the invoice, bringing the total to $ 781 billion. The advantages of the development of standards in a market are now well known: better interoperability of equipment, more freedom of choice of suppliers, lower costs and faster growth of the market. Always in the case of successful standardization, experts estimate that the number of objects connected will be 27% higher than a scenario without standards.
However, what is called Smart City is a vast area encompassing many areas very distinct from the other and if standardization around large networks of communications IoT and a few standards exchange market well defined as the Smart Water, Smart Grid in many niche areas it will take several years before that standards are needed.
Translation : Bing Translator
“Open standards in IoT deployments would accelerate growth by 27% and reduce deployment costs by 30%”, White Paper InterDigital, may 2016
“Smart cities could waste USD341 billion by 2025 on non-standardized IoT deployments”, IoT news, May 5, 2016