A national roll out of IoT (Internet of Things) across New Zealand’s key sectors could bring with it billions of dollars in benefits for the New Zealand economy.
This is according to a 92-page report commissioned by the New Zealand IoT Alliance, an independent member-funded group of technology firms, corporates, start-ups, universities and government agencies.
The study found that across a mere nine common IoT applications the potential net benefit over 10 years could be $2.2 billion in present value terms.
Alliance chair and NZTech chief executive Graeme Muller says despite the general agreement that IoT will be important for the New Zealand economy, there has been little research into its true potential until now.
With the research, the New Zealand IoT Alliance wanted to find out just how important IoT will be for the nation, adds Muller.
“This study was designed to provide a stocktake of the current ecosystem of IoT in New Zealand, an economic analysis of the potential impact to the economy of the deployment of IoT in various applications and identification of opportunities and risk,” comments Muller.
“The primary objective is to identify opportunities for economic growth through clever use of the Internet of Things. The report found New Zealand ranked highly as a nation in terms of IoT readiness yet a lack of understanding of the economic value appears to be holding back investment.
Muller continues, “the economic value that accelerated uptake of IoT could bring is substantial for the New Zealand economy. There are many ways to stimulate the uptake of IoT with most stemming from an increased awareness of the potential value that IoT can bring.”
Muller says New Zealand has a vibrant IoT ecosystem and some of the more significant IoT projects underway include:
The Internet of Things is a collection of interconnected things and devices that, through their connection to the internet, are able to collect and exchange data.
Muller continues, “New Zealand has world class internet connectivity with the rollouts of the government's ultra-fast broadband and rural broadband initiatives, plus cellular networks and LPWAN.”
Muller says that while all of these projects indicate an active IoT supply in New Zealand, the demand uptake is slower.
“The research found that only 14% of New Zealand enterprises have deployed an IoT solution.”
“The report makes quite a number of recommendations including one where the government should use their purchasing power to demonstrate the value IoT can offer in providing efficient and effective delivery of government services.”
“The key inhibitor for IoT uptake in New Zealand is a lack of understanding, knowledge and skill. This is not a technical issue, it is an education and awareness issue. To increase IoT uptake we need to look at issues such as reducing market fragmentation and for discussions to move away from technology to solving business problems.”
Muller concludes, “additionally, our government should ensure there are no unnecessary barriers deterring universities from undertaking research into IoT or preventing the IoT sector from accessing current research and development funding mechanisms.”