Big Data & IoT To Add £322bn To UK Economy By 2020

18 July 2016

Ben Rossi’s article for Information Age simply says ‘What do you call big data on steroids? The Internet of Things’. Well that’s one way of putting it.

The Internet of Things (IoT) is regarded by many as being the bigger version of Big Data. Whilst that may not initially make sense, it does when you listen to this definition of IoT from ITU: ‘IoT is the network of physical devices, vehicles, buildings and other items—embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data.’

So now you are clearer on the magnitude of how Big Data and IoT operates, it may be easier to get your head around the figures in the headline of this blog.

The impact of both Big Data and IoT is huge, let’s not underestimate that. The industries are forecast to add a massive £322bn to the UK’s economy by 2020 according to research by the Centre for Economics and Business Research (Cebr).

This is twice the size of the combined education, NHS and defence budgets for 2014-15, and 22% of the UK’s net public debt (circa. £1.5 trillion in 2014-15).

Graham Brough, CEO at Cebr, the company who conducted the report said: “Our research finds that the majority of firms have implemented between one and three big data analytics solutions. However, the key is making sure those solutions are extracting maximum insight which is then turned into business actions.

“IoT is earlier in its lifecycle, and will provide more data for analysis in areas that may be new to analytics, reinforcing the potential benefits to the UK economy.”

Data is being used in nearly every industry and the analysis taken from it can be hugely important for companies. Information Age say that Adoption rates for big data analytics are estimated to rise from 56% in 2015 to 67% by 2020. By comparison, IoT adoption will increase at a slightly higher rate from 30% in 2015 to 43% by 2020.

These figures highlight why it is becoming essential to be well-educated in this area, and it is worth considering Data and Analytics University courses that are emerging.

Did you know: Data & Analytics has even predicted the outcome of the Rio 2016 Olympics.