The modern world where everything is digitally connected is about to become broader and faster in terms of connectivity with the rising adoption of the Internet of Things (IoT). As we all know IoT refers to the billions of physical devices that are connected to the internet and it provides a platform for every industry to foster productivity and innovation. Even though the technology is still in its infancy, its impact on businesses is massive, representing the next evolution of the connected world. IoT is able to glean, assess and distribute data, enabling organizations to turn into actionable insight and wisdom.

According to a Cisco report, IoT's roots can be traced back to the Massachusetts Institute of Technology (MIT), from work at the Auto-ID Center, a research group working in the field of networked radio-frequency identification (RFID) and emerging sensing technologies. The group involves seven research universities located across four continents. These institutions were chosen by the Auto-ID Center to design the architecture for IoT.

As the use of IoT allows businesses to realize efficiencies and capture new revenue from new services, Cisco noted that there were 500 million devices connected to the Internet in 2003. And the number was tremendously increased to 12.5 billion in 2010, with the explosive growth of smartphones and tablet PCs.

In the current scenario, IoT has shifted from a futurist concept to the central focus area of every industry, ranging from manufacturing and retail to healthcare and real estate, among others. According to the IoT Total Addressable Market (TAM) by Transforma Insights, the global IoT market will grow to 24.1 billion devices in 2030, generating US$1.5 trillion annual revenue.

As per the report, short-range technologies such as WiFi, Bluetooth, and Zigbee are likely to dominate connections and account for 72 percent in 2030, compared to 74 percent for now. Public networks, which are led by cellular networks, will reach 4.7 billion during the same period of time from 1.2 billion. In addition, private networks account for the balance of connections with 10 percent in 2019 and 8 percent in 2030.

Today, IoT is everywhere, from wearable devices and portable technologies to health-related accessories. In the industrial setting, the internet of things makes possible to turn a factory into fully automated. As automated systems generate a massive amount of data, IoT helps gather that data from sensors on the machines to perform analysis and deliver insights on maintaining acceptable performance and identifying optimization that would otherwise go overlooked. E-commerce giant Amazon, for instance, has already begun automating some of its factories with their famed Packing Algorithm that determines what size package to put a customer's order in to optimize the number of packages that can fit in a delivery truck without having to move anything around.

Moreover, power grid systems can be revamped with IoT-powered platforms relying on data gained from grid controls. Leveraging that data, processes like intelligent power switching, or lessened load transmission can be triggered automatically, advancing the optimization and efficiency of the grid. Thus, the improved applications of IoT are also driving the most rapid market growth worldwide.