A new McKinsey & Co. report projects the total economic impact of Internet-connected devices to fall somewhere between $3.9 trillion and $11.1 trillion by 2025.
The June 2015 report said technological innovations, investments in talent and adoption of new business models are the trends that will drive the potential of Internet of Things-based platforms.
McKinsey cited transportation, cities, retail industry, factories, homes and offices as some of the areas where IoT’s economic value may accumulate.
The authors highlighted what they see as the need to address interoperability issues between IoT applications and the potential role of enterprises in the development of new IoT systems and processes.
“With policy actions to encourage interoperability, ensure security, and protect privacy and property rights, the Internet of Things can begin to reach its full potential—especially if leaders truly embrace data-driven decision making,” they added.