US Government's IoT focus may shift towards civilian applications
A new report suggests that between 2011 and 2015, the US Government invested almost $35bn in the Internet of Things (IoT). The investment was divided between infrastructures such as wireless devices and cloud storage; software, including device-based apps analytics, and cyber-security solutions. While military contractors such as Lockheed Martin currently account for the lion's share of the government's investment, spending on IoT solutions is expected to rise and also a shift towards focusing on civilian applications is anticipated. The future may see connected homes, cars, and smart buildings, with an increasing ability for consumers, governments, and businesses to control many aspects of day-to-day life.

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The U.S. government is forging ahead into the Internet of Things.

The federal government spent $8.8 billion in the fiscual year of 2015, up from $7.7 billion in the fiscal year 2014, according to a report from Govini, which collects and analyzes data about government contracts. Overall, the federal government spent almost $35 billion on IoT solutions from the fiscal year 2011 through the fiscal year 2015.

The report split the government's IoT investments into three categories. First is infrastructure, such as wireless devices, sensors, and cloud storage. Second is software, which includesdevice-based apps, tools for extracting, transmitting, and processing data, analytics, and database software. Third is cybersecurity solutions to protect IoT devices.

Device-based apps attracted the most investment at $10.7 billion during the fiscal years 2011 to 2015. Cybersecurity was second at $8.6 billion and wireless devices were third at $4.5 billion.

The category with the most rapid investment growth was sensors, which grew from $578 million in the fiscal year 2011 to $1.6 billion in the fiscal year 2015. This was due largely to military investment in biosensors that can gather health and medical information from soldiers in the field, as well as sensors that can collect data about soldiers' surroundings to determine threats.

Defense agencies represented 88% of all government spending on sensors, and most of that spending went to major military contractors such as Raytheon, Lockheed Martin, Northrop Grumman, and BAE Systems.

The increase in research and development by the government, academic institutions, and merchants could help tweak some of these sensor applications for consumers. For example, the military biosensors could be used to track patients' health in hospitals.

Government spending on IoT solutions should continue to rise and move more toward civilian use cases, such as sensors and connected cars for smart cities.

This surge in government spending makes it clear that the IoT Revolution is picking up speed and when it does, it will change how we live, work, travel, entertain, and more.

From connected homes and connected cars to smart buildings and transportation, every aspect of our lives will be affected by the increasing ability of consumers, businesses, and governments to connect to and control everything around them.

Imagine “smart mirrors” that allow you to digitally try on clothes. Assembly line sensors that can detect even the smallest decrease in efficiency and determine when crucial equipment needs to be repaired or replaced. GPS-guided agricultural equipment that can plant, fertilize, and harvest crops. Fitness trackers that allow users to transmit data to their doctors.

It’s not science fiction. This “next Industrial Revolution” is happening as we speak. It’s so big that it could mean new revenue streams for your company and new opportunities for you. The only question is: Are you fully up to speed on the IoT?



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The report gives a thorough outlook on the future of the Internet of Things, including the following big picture insights:

IoT devices connected to the Internet will more than triple by 2020, from 10 billion to 34 billion. IoT devices will account for 24 billion, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion.

Nearly $6 trillion will be spent on IoT solutions over the next five years.

Businesses will be the top adopter of IoT solutions because they will use IoT to 1) lower operating costs; 2) increase productivity; and 3) expand to new markets or develop new product offerings.

Governments will be the second-largest adopters, while consumers will be the group least transformed by the IoT.

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The complex infrastructure of the Internet of Things distilled into a single ecosystem

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The important role analytics systems, including edge analytics, cloud analytics, will play in making the most of IoT investments

The sizable security challenges presented by the IoT and how they can be overcome

The four powerful forces driving IoT innovation, plus the four difficult market barriers to IoT adoption

Complete analysis of the likely future investment in the critical IoT infrastructure: connectivity, security, data storage, system integration, device hardware, and application development

In-depth analysis of how the IoT ecosystem will change and disrupt 16 different industries

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