According to Industrial IoT 5g, cities implementing smart technologies to manage public utilities like water or power and to help coordinate traffic are estimated to spend upwards of $1.12 trillion on moving new initiatives forward by 2025. Most of the technology they are looking to implement is proprietary in nature, meaning that the specifications that govern those solutions are also largely proprietary, and may not adhere to established or emerging IoT standards.
As we have highlighted on this blog, standards – particularly open standards — will play a critical role in our ability to realize the socio-economic promises of The Internet of Things (IoT). According to Industrial IoT 5g, we can now assign a monetary amount that helps quantify the importance of standards for smart cities:
$341 Billion by 2025
It’s a research driven estimate of how much smart cities may save by adopting standardized IoT solutions. Machina Research also estimates that the adoption of standards would result in a 27% increase in connected devices within these “smart cities,” which indicates both an increase in apps and a greater adoption of apps created for smart cities.
The report asserts that ”the world would be a tidier place” if standards were developed in a more top-down manner by companies or within specific projects. Examples of top-down standards initiatives for smart cities include the Joint Technical Committee (JTC) of the International Standards Organisation (ISO) and the International Electronical Commission and the IEC’s System Evaluation Group (SEG) on smart cities, to name a few.
Machina analyst and report author Jeremy Green states, “Open standards can [ensure] money is invested more efficiently and dramatically accelerate IoT adoption and growth.” We appreciate the emphasis on the need to develop smart cities by leveraging standards. However, as there are a number of definitions for open standards on the market, we encourage the use of standards that adhere to the OpenStand Principles of transparency, accessibility, open collaboration to support innovation for smart cities.
Machina Research’s 16-page research report is available online, with a simple registration. It includes brief descriptions of many emerging IoT standards that may be helpful to readers. For additional information on the impact open standards can have on smart cities, these two articles from Computer World and Industrial IoT5G provide additional insight and infographics.
If you agree with the principles of openness, transparency, accessibility, and market-driven standards adoption, we hope you’ll consider becoming an OpenStand Advocate.