The IoT market in Asia-Pacific is expected grow at a CAGR of 35% between 2014 and 2020, according to Frost & Sullivan.
In Malaysia, the deployment of IoT will gain traction in the transportation, logistics and connected consumer sectors such as wearables, connected homes and home automation.
“Readily accessible and cost-effective storage, computing and programmable networking systems are fueling novel business applications and IT delivery models, thus facilitating a distributed intelligent network,” said Serene Chan, Frost & Sullivan’s ICT industry manager.
“Embedded systems will provide the crucial link between cloud solutions and fully autonomous end devices, speeding up the transition to IoT,” said Chan.
Finding value in the vast array of unstructured machine and connected device data available will be critical to support IoT-based services for a variety of industries. Currently, less than 1% of the data captured by sensors is used for analytics and optimization.
In addition, Malaysian operators struggle to offer IoT services due to market fragmentation as well as security and privacy concerns. These challenges are organizational rather than technical in nature, as operators still focus on selling connectivity instead of solutions and services.
“Entering into the IoT space requires industry players to acquire capabilities beyond their core functions,” said Chan. “The CSPs in Malaysia must collaborate with a variety of partners to deliver relevant end-to-end services in specific industries.”
She said that evolving from a cost-optimized connectivity provider to an IoT service provider will drive business objectives and enable innovations in the changing ICT domain.