It is almost impossible to clearly separate the value of internet of things from the value of edge computing, as the one generally drives the other. The value of sensor data, though, mostly hinges on the analytics.
Insights gleaned by analytics is the driver of value produced by internet of things sensors, but a fraction of the data is likely to produce most of the value. Alarms and control of processes are the common use cases.
By perhaps 2028, the greatest single area of edge infrastructure investment will have been made to support mobile customers and residential consumers.
Key applications include infotainment. In fact, infotainment might represent between 29 percent and 47 percent of the global edge footprint between 2019 and 2028, the report says.
Smart appliances might represent 19 percent of the edge footprint between 2019 and 2028. Security with an edge footprint will increase from 10 to 16 percent.
The footprint for energy management is forecast to increase from 10 to 16 percent. Edge computing facilities also will play a role in assisted living, at two to five percent of the total edge capability, between 2019 and 2028.
“For example, on an oil rig that has 30,000 sensors, only one percent of the data are examined,” McKinsey consultants say. Most of the data is used to detect and control anomalies--a valuable function, to be sure.
On the other hand, optimization and prediction might provide the greatest value, say James Manyika, Jonathan Woetzel, and Richard Dobbs McKinsey Global Institute directors; Michael Chui, partner; Peter Bisson, director in McKinsey’s Stamford office; Jacques Bughin, director in the Brussels office and Dan Aharon, consultant in the New York office.
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