Atoms and bits

The internet of things (IoT) has attracted less attention recently, but the technology appears to be moving beyond hype and into a more productive phase. By infusing physical objects (atoms) with digital technology (bits), industrial applications of IoT are having a material impact on operations and margins in multiple sectors from factory automation to logistics. Driven in large measure by margin improvements, McKinsey estimates that by 2030 IoT could generate USD 5.5 trillion to USD 12.6 trillion in value globally. To read more about the outlook for IoT and adjacent technologies, please see our recent paper, 5 digital innovations to shape a new era of growth.

Source: McKinsey, 2022