Among the modern technologies Internet of Things (IoT) is the current buzzword that will take a lion share of the market in India by 2020. As per the NASSCOM report, the Indian IoT market will account for 5% of the global market, which is approx. $15 billion by 2020. Interestingly, IoT devices are growing globally, with a growing amount of 2 billion objects in 2006 to a projected 200 billion IoT devices by 2020. This is equal to 26 smart IoT devices per head on the Earth as per the report projected by Gartner IDC. The Internet of Things is definitely the area through which the Indian govt can realize its outlined dream of making ‘Digital India.’

Fig. 1. Forecast on the growth of the global IoT market (Source: Bain Analysis)

What is the internet of things?

IoT architecture, by its nature, embraces everyday objects using the Internet. This is performed using network devices or routers where these devices exchange data. It allows controlling objects remotely across the existing network. It connects physical items with the virtual world using internet services. By its nature, the Internet of Things is dynamic. It converges multiple technologies to create a new dimension of services that materializes people's smart living in day-to-day activities. This, indeed, potentially improve security, efficiency in life activities, education, smart cities, smart homes, and many other aspects of daily life. Besides, for enterprises, the internet of things can zero in on improved decision-making and enhance productivity in different sectors like retail, manufacturing, agriculture, etc.

Internet of Things brings its own sensitivity along with other advantages. Here the backend is the centralized network, which in other terms is a concern in whole architecture. Here devices are connected behind the firewall of the network. Security is a big question here because at the individual level securing the devices is easy but securing IoT devices requires a lot more- attention as it needs to incorporate the security between the network connection and the software applications, which are responsible to link the devices. No doubt, trust becomes a key issue here. Interestingly, Blockchain has become one of the essential IoT technology trends because it essentially keeps data safe.

What is the IoT market in India?

The key technology factors which enable the Internet of Things adoption in India are as follows –

• Networks
• Sensors
• Standards
• Augmented Intelligence
• Augmented Behaviour
• Focused on innovative IoT solutions 

These hold immense promise for the internet of things India in the coming years.

According to a report published by the Deloitte, the following forecast is depicted in the Internet of Things space of India

Expected growth of IoT devices: ~32x

No. of devices increase: from 60 million units to 1.9 billion units by 2020

Expected growth rate: ~7x

Growth share: US$ 9 billion by 2020 from US$ 1.3 billion in 2016

Fig. 2. The Indian IoT market (Source: Deloitte)

Focused consumer applications: Personalization, Customization, Authentication, Verification and wearable devices.

Potential industries in focus: Transportation, Economy, Health, Environment, Administration, and Security.

Besides consumer IoT applications, vendors are also focussing on Industrial IoT (IIoT). Both these areas are expected to consume a 50% share of the internet of things India. Here besides consumer solutions, hardware vendors, too, are focussing on R&D activities to expand the product portfolio in IoT.

Related post - What is the Industrial Internet of Things (IIoT)?

So, in the Indian Internet of Things ecosystem, we can categorize mainly four types of stakeholders –

• hardware vendors,
• network operators
• software application vendors
• System integrators.

Here more than 60% of stakeholders are startups. Hence, we can conclude that there are plenty of opportunities for all stakeholders across the ecosystem. So, what all benefits end users are achieving with the application of the Internet of Things? These are obviously in consumer-level which include –

• improved monitoring
• better productivity
• real-time data monitoring
• connected homes
• smart lifestyles
• enhanced security
• Real-time connectivity. 

From the Digital India point of view, the Internet of Things is supposed to reach tier 2 and tier 3 towns and India's cities under the Smart India-Smart Cities project. No doubt, this is an alluring opportunity for IoT companies in India. Interestingly, startups offering innovative Internet of Things solutions at the consumer as well industrial level. Furthermore, India is concerned not only merely with consumer IoT solutions but also with smart solutions, smart grid, climate monitoring, security-related issues, and industrial IoT. 

However, as there are advantages, there are concerns too. As the IoT devices are controlled remotely, concerns are raised for privacy, the security of data being churned. Issues like hacking, stolen identities, hijacking need to be closely watched.

What is the internet of things India vision?

The Indian government has planned for the development of 100 smart cities in India, for which they have fixed a budget of approx.7,000 crore. As a result, the underlying infrastructure needs upgradation to support advanced IoT technology. As a result, this improved infrastructure and IoT implantation will bring new investment scope for India in the future. Till now, Tata communication has committed a $100 million budget to smart cities. The most important investment areas are manufacturing, utilities, transport, healthcare, automotive, retail, and agriculture.

Industrial applications of the IoT in India

Industrial Internet of Things or IIoT has been adopted in India and globally that has far exceeded consumer applications. The term Industry 4.0 is the new revolution in the smart world of the Internet of Things. Through automation, analytics, and connectivity, the IoT is expected to drive operational efficiencies.

Fig. 3. Indian consumer expectation from the IoT (Source: Tata Communications, 2018)

In India, sectors such as manufacturing, transportation, automotive, and logistics are experiencing the highest adoption levels. Typical industrial applications include:

• Manufacturing/Supply chain: Connected factory, improved process automation, tracking of goods, robotics, tools, etc.
• Agriculture: IoT devices to figure out the moisture of soil etc.
• Transportation: Better transport management, improved vehicle tracking, etc.
• Energy: Potential faults, efficient energy usage management, etc.

How India is ready for IoT technology and protects the privacy

Data privacy is the greatest measure that India takes to enjoy the benefits of IoT. As per the Supreme Court of India, the information privacy right is the fundamental right for all Indians. In addition to that, the ministry of electronics and information technology (meitY) has prepared the draft of IoT policy that directs a committee that comprises important stakeholders in the industry, government, and academia. The landmark NDCP has released the National Data Protection Policy, which acts as an essential to prioritize the right application grounds for IoT technology. The policy introduces a 'fiber-first' policy for better fiber connectivity. This is to support 5G technology, which is going to play a vital catalyst for IoT. The other goal of NDCP is to increase the public Wi-Fi hotspots in the country. Currently, there are 35,000 hotspots in India, whereas we need more than 8 million hotspots.

Final verdict

It is high time for India to reach an equal rank like other nations and leverage advanced IoT technology. We can achieve multiple benefits by controlling rising pollution levels, more accessible healthcare services, and timely medical interventions. India needs to be more focused on building capabilities across areas and network infrastructure, standards, and so on. Also, we need to fill the talent gaps in terms of cross-functional and specialized skills, that are necessary for the growth of the IoT in India.

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