Internet of Things in the Post Covid Era
COVID-19 has completely changed our life, the way we work, how we interact with people, the global economy. What changes will bring to the IoT industry during the epidemic and post-epidemic era?
(Source：Paolo Azzoni, Artemis Magazine 18-June 2020）
In the environment where we live, a tiny planet in the universe, we share billions of tons of biomass very different from human life, including millions of virus species, some of which we don’t even know of their existence. Viruses have a role in our delicate environment, and we cannot imagine completely eradicating them. As humans, we are programmed to try to anticipate and plan the future, but an analysis of the past in a similar crisis is fundamental to avoid the repetition of previous errors. Probably, the COVID outbreak is strictly linked to the underestimation of risks that characterize our society, in almost every sector. In 1986, just after the Chernobyl disaster, Ulrich Beck published the book “Risk Society: Towards a New Modernity” (“Risikogesellschaft”), in which he highlights that the primary characterizing element of modern society is its increasing tendency to create catastrophes, with dramatic impact on humans and their activities. He considers the “risk society” as the last step in the evolution of society, a step where the greater the hazard, the more the reward… Unfortunately, sooner or later, a similar approach presents the bill, a bill that all the humanity has to pay.
Economic Recession
In June, the IMF (International Monetary Fund) adjusted its views on the depth of the economic crisis. It is predicted that global growth will reach -4.9% by 2020, which forecast is 1.9 percentage points lower than the “World Economic Outlook” on April, 2020. Due to the huge uncertainty, the re-emergence of a new wave of pandemic and the potential vaccines will affect the recovery of the market. However, one thing is certain: government supports are very important. Regions unable to formulate a stimulus plan will be hit harder than other regions. We have seen the largest contraction in Africa and Latin America. North America, Western Europe, and parts of the Asia-Pacific region will benefit from fiscal stimulus plans that will help the recovery, especially in the important SME sector.
The estimation of the global revenues is confirmed at USD 1.5 tr by 2030 (USD 1.1 tr by 2025), with a geographical share evenly distributed: 23% Europe, 24 % North America, 26% China and 27% in the rest of the world.
(Source：Paolo Azzoni, Artemis Magazine 18-June 2020）
Short-term damage but long-term growth potential
Although it is difficult to predict the future trend of the global epidemic, some key assumptions and driving factors affecting the IoT industry can be analyzed:
(Source：Paolo Azzoni, Artemis Magazine 18-June 2020）
In the short term, economic uncertainty may negatively impacted for IoT projects. However, every crisis will produce faster innovation and adapt to the new normal. Therefore, it is reasonable to assume that Covid-19 will drive to the Internet of Things, the companies must promote digital transformation faster. Enterprises will have to adopt automated operations. The way of working is changing all over the world: in order to participate, companies and individuals must adapt. The hardware access growth rate of the Internet of Things in 2020 will be lower than forecast in December 2019, and the net increase will drop by 45%.
In the long term, The Internet of Things (IoT) will be integral to the long-term recovery plans of the post-COVID-19 economy worldwide, yet some facets of the IoT itself will be negatively impacted in the short term. A combination of manufacturing shut-downs, supply chain interruptions, and changes in connected product availability and demand is expected to cause an 18% drop in the net addition of IoT devices in 2020, according to global tech market advisory, ABI Research. Although the growth of enterprises slows down in the short term, they must adapt to the new normal. In the vertical field, the adoption rate of the Internet of Things will increase substantially. Due to the combination of these two trends, there will be 25 billion end-to-end IoT connections worldwide by 2025. This is similar to the outlook for December 2019. (Source: ABI Research)
(Source：Paolo Azzoni, Artemis Magazine 18-June 2020）
In GSMA latest report of "IoT Revenue: state of the market 2020", the global Internet of Things (IoT) market will be worth $900 billion in revenue by 2025 – an almost threefold increase on 2019. However, we expect the revenue opportunity to contract by $200 billion compared to our previous forecast, on account of Covid-19. (The 2018 forecast is 11 trillion U.S. dollars, it’s 2.6 times the number in 2020). Covid-19 (coronavirus) is driven factors. The pandemic has disrupted the world as we know it, including the industry chain. Although IoT budgets and expenditures will shrink in the short term, we will also see the impact of Covid-19 transforming and promoting the digital transformation of the world.
As a participant in the IoT ecosystem, Remo Wireless provides customers with a complete IoT solutions from product development, design, manufacturing and system integration. Our products cover Telematics (vehicle tracking), Retail (face payment solution), communication (desktop communication terminal) and security (person/asset tracking systems).
About Remo Wireless
Shanghai Remo Wireless Communication Technology Co., Ltd was established in 2013. Remo focuses on product development, product design and manufacturing, system integration of wireless devices to meet the needs of the rapidly growing Internet of Things industry. Our products include telematics hardware for vehicle and home security, asset tracking devices, networking device, etc.
REMO Wireless products and solutions are designed for different technology platforms, GSM/GPRS, CDMA, WCDMA, TD-SCDMA, and LTE to successfully operate in the field of transportation, energy, automotive, retail, security, health care.
Remo believes that we will use the professional knowledge and experience from all over the world specialist to better meet customer needs. We have offices and partners in China, Europe and North America to provide customers with quality products and solutions.
