High-tech market analyses are beginning to sound a lot like the prescription medications drug companies are pitching on TV. Once you get through the side effects you’ve got to wonder whether taking the medication is worth it.
The IoT, smart grid and RFID chip markets are all predicted to expand by double digits through 2022, according to a series of market reports. But every single one of those markets cite security as a major concern.
The global IoT chip market was USD 4.71 billion in 2015 and is estimated to reach USD 9.32 billion by 2022, at a CAGR of 10.27 percent for the forecasted period, according to Research and Markets.
A lack of a communication standard across platforms, technology barriers and market fragmentation have proven to be a big deterrent for the IoT which, in turn, has affected the IoT chip market as well. Privacy and security are also some concerns that might hold back the otherwise high-potential market, the report added.
The “Global Smart Grid T&D Equipment Market 2016-2020” report forecasts the global smart grid T&D equipment market to grow at a CAGR of 16.23 percent during the period 2016-2020.
The report added that advancement in IT and implementation of technology to control power generation and distribution have increased the chances of cyber-attacks. Smart grid infrastructure uses internet technologies, and hence, is extremely vulnerable to security threats in the absence of a robust cyber security setup.
The global chipless RFID market is expected to grow at a CAGR of 29.33 percent during the period 2016-2020.
Chipless RFID keeps track of all products and lets the manufacturer know if any product is out of stock. It is also used in the healthcare sector, especially in hospitals. Chipless RFID helps the management keep track of medical equipment.
The report also states that the data security issues are a major challenge for manufacturers, as they negatively affect the market for RFIDs.
None of this is new or particularly surprising—security has been cited all along as a challenge in the connected world. Aside from the implications of hacking -- which are considerable -- I'm worried that I’ll need a password to turn on the air conditioning or open my refrigerator door. I know communications and data communications companies are working on centralizing a control panel for all of this stuff which might be my phone, my PC or -- heaven forbid – my TV, which has defaulted from one remote to three because we’ve failed to sync things after a power outage.
None of this is insurmountable, either. But I’m not really that unhappy with my manual thermostat or the fact that my fridge can’t tell my phone that we’re out of milk. When I weigh the advantages of the connected world against all the possible side effects right now I'm saying "no thanks."