Menu
Retail spend on Internet of Things to reach $2.5 billion by 2020

Retail spend on Internet of Things to reach $2.5 billion by 2020

“Retailers such as Zara and Target are already taking advantage of the benefits offered by RFID asset tracking."

Retailers seeking to capitalise on Internet of Things technologies will spend an estimated US$2.5 billion in hardware and installation costs, nearly a fourfold increase over this year’s estimated US$670 million spend.

New data from Juniper Research reports that 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 labour 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 capitalise 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.

“Retailers such as Zara and Target are already taking advantage of the benefits offered by RFID asset tracking,” says Steffen Sorrell, Research Author, Juniper Research.

“Meanwhile the beacon industry is expanding rapidly; used as a method to provide consumers with contextually relevant information in conjunction with their smartphone or wearable will enormously enhance the in-store 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 focussed 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.

Additional findings also claim that 70 percent of IoT units are expected to be composed of non-consumer devices by 2020.

With diverse business models and aims of IoT projects such as service revenue, spend and cost-savings taken into account, Juniper forecasts the IoT opportunity to approach US$300 billion annually in 2020.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Internet of ThingsJuniper Research

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments