The Internet of Things (IoT) is being developed by the United States, but Germany has a more aggressive plan to connect devices such as kitchen appliances, security cameras, smoke detectors, and fitness trackers. A new survey shows that German manufacturers have more plans to create digital and IoT solutions than the US.
A Boston Consulting Group (BCG) survey reported the findings. It polled over 300 German and US manufacturing executives about if they had applied digital solutions to factories, or had future plans.
The German companies beat the American firms in both categories. Only 17 percent of German and US manufacturers already use such tech in their factories. However, while over 40 percent of German companies plan to take the step in the future, about one-quarter of American businesses do, according to Business Insider.
Meanwhile, while 14 percent of German manufacturers now use autonomous robots and assistance systems, the figure is just 8 percent in the US. In addition, 39 percent of German companies plan to add the machines/systems to their factories during the next two years. Only one-fifth of US companies plan to upgrade.
Many companies are starting to move factories in Asian countries back to their biggest sales markets. They are also using technology such as industrial robots to save money required for paying salaries of human workers.
IoT is changing traditional business models and especially in the manufacturing sector. Web-connected machines are boosting output and automating many processes.
BCG's report also shows that global manufacturers are making big investments in IoT. Worldwide spending on IoT solutions will skyrocket from $29 billion in 2015 to $70 billion in 2020.
IoT has often been praised as the next big tech revolution. IoT devices can be used to provide web connectivity to various gadgets in smart homes and offices.
Wrist wearables, smart cars, and healthcare facilities could use IoT technologies in an industry estimated to be worth $1.9 trillion through the year 2024, according to The Motley Fool.
Google's parent company Alphabet and Amazon are some of the companies solving security and connectivity problems related to IoT tech. In addition, competing tech companies must work together to advance the IoT industry.
Here's a video on Apple's new Home app for IoT devices: