IoT and Big Data to contribute £322bn to UK economy by 2020

IoT and Big Data to contribute £322bn to UK economy by 2020

The power of Big Data and connected IoT devices is set to boost the UK economy by well over £300 billion, according to a report from SAS in collaboration with the Centre for Economics and Business Research (Cebr).

The report, entitled ‘The Value of Big Data and the Internet of Things to the UK Economy’, suggest that the adoption of big data analytics and IoT are expected to create around 182,000 new jobs through the five-year period between 2015 and 2020.

To put the £322 billion figure into perspective, it is twice the size of the budgets for the NHS, Education and Defence combined for 2014-15, and a staggering 22% of the UK’s net public debt, which was put at nearly £1.5 trillion last year.

The report highlights the huge impact expected over the coming years as more UK businesses embrace IoT and the value of big data. Currently half of British businesses are not utilising any form of big data analytics, while those that are may only be applying it infrequently in a few selected areas. Adoption rates for IoT are even lower –at around 1 in 3.

Also read: Analysts warn businesses of IoT hype

IoT in manufacturing

The potential is clearly present to improve decision-making and efficiencies across the board, while opening doors to new business opportunities. According to the report the sectors that are set to benefit most over the next few years include manufacturing, professional services, retail banking and telecoms.

Speaking exclusively to Internet of Business, Jason du Preez, CEO of data security experts Privitar, high-lighted the implications of growing IoT and Big Data sectors.

He said: “While we are being sold the dream of an internet-of-everything, we should be keenly aware of the risks. Exploits and bugs will no doubt be part of the show, only this time they will provide a window into our most private sanctuaries. We also cannot disregard the fact that even working perfectly, the Internet of Things is designed to give companies and the entire app-making eco-system an even deeper dig into our private lives.

“Organisations need to ensure that they are ahead of evolving regulation and take this invitation into our living rooms seriously. They must enforce the most rigorous measures to ensure our data is safe from abuse or theft. This means strong governance, best-practice infrastructure and application security measures, alongside leading data-centric approaches to keeping sensitive data private”, he said.

Also read: What exactly is the Internet of Things?

 

Malek Murison: Malek Murison is a writer, editor and tech journalist based in London. www.malekmurisonmedia.com
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