The Internet of Things (IoT)—the connected network of Internet-enabled physical devices that collect and exchange information with each other—is rapidly growing in both acceptance and applicability across a number of industries.

This trend shows no signs of slowing down. Studies predict that by 2020, the IoT will include nearly 50 billion devices worldwide with 212 billion sensors producing 44 zetabytes of data. These devices, the “things” in the IoT, include everything from smartphones and automobiles to valves and pumps in industrial plants.

The growing momentum of IoT adoption is mainly driven by the reduction in cost of connectivity and computation. According to market studies, over the past 10 years, the cost of sensors has been cut in half, the cost of bandwidth has dropped by a factor of 40, and the cost of processing has decreased by a factor of 60. Although further efforts are required to lower the cost of sensors, the number of new IoT use cases has grown and a greater number of technology companies are developing IoT-­specific services and technologies ranging from sensors and chip sets to platforms and software systems. The main barriers to IoT adoption by industries—network security and scalability—have also been addressed, with reliable and highly secure communication systems and analytics.