The above introductory comments are edited excerpts from an article by Mark Melin (ValueWalk.com) entitled Goldman Projects “Internet of Things” To Become Biggest Mega Trend Yet.
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Melin goes on to say in further edited excerpts:
3 stages of Internet Development
…Goldman Sachs looks at the development of the Internet in three stages:
- the fix Internet of the 1990s, using primarily desktop computers;
- the mobile internet of the 2000s, utilizing smart phones and tablets;
- and now the Internet of Things, which includes connecting wearables, cars homes cites and industrial concerns.
The first and second phase connected up to 2 billion people while the Internet of Things is expected to connect over 28 billion people and appliances, highlighting what is said to be the most explosive and important trend yet.
5 Primary Verticals of the Internet of Things
Goldman Sachs breaks down the Internet of Things into five primary verticals to watch:
- Connected Wearable Devices,
- Connected Cars,
- Connected Homes,
- Connected Cities, and
- the Industrial Internet.
Specific Stocks & Sectors of Interest
In terms of specific stocks and sectors that might outshine, the report cites several areas including sensor technology. “Sensors have outgrown other semiconductor units by five percentage points over the last two years, and we expect that trend to continue as they proliferate,” the report said.
3 Factors driving Internet of Things trend growth
Goldman notes three factors driving trend growth. Health and wellness, as witnessed in the fitness band craze, is a key motivator for people to embrace the technology, as is the environment and safety.
While there is potential enormous growth potential, there are also significant barriers to adoption. Among the most significant concerns is security.
“Security concerns escalate to a whole new level with the Internet of Things,” the report noted, “given the potential for privacy violations or safety issues as a result of the ability to remotely manipulate physical assets.” This could include hackers controlling cars remotely, which is reported to already be the case, as well as privacy issues.
Citing “just early example of vulnerabilities,” the report noted that in one major security breach, hackers realized that they could access the live streams of any camera over the Internet, resulting in over 700 cameras’ live video feeds being streamed over the Internet. This included footage of babies, young children, and people engaging in daily life activities in their homes.
Other barriers to this trend being adopted were regulation and compliance concerns as well as standards that may be imposed as well as ease of use concerns.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.valuewalk.com/2014/06/internet-of-things-to-become-biggest-mega-trend-yet/ (© 2014 ValueWalk LLC All Rights Reserved; Sign Up For Our Free Newsletter to never miss an article.)
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