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DUBAI / Emirates Business
The Internet of Things (IoT) has the potential to unlock up to 11 percent in incremental GDP driving economic growth in the GCC region, according to A. T. Kearney’s latest report, ‘IoT in the GCC: Building a Brighter, More Sustainable Future’.
By 2025, the IoT solutions market in the region will be worth $11 billion, generating potential value for the economy of nearly $160 billion; implying that every dollar spent on IoT solutions could produce nearly $14.50 in economic value.
According to the report, the region’s governments have been increasingly investing in next-generation technologies such as IoT, in an effort to move their economies away from heavy reliance on oil. IoT, an exponentially growing ecosystem of connected devices and systems, offers a major avenue for innovation and economic growth, and has the potential to address many of the region’s challenges.
Adel Belcaid, Principal at A.T. Kearney Middle East commented, “Next-generation technologies such as IoT are creating massive opportunities for economic transformation in the region, and could lead to an industrial revolution in its own right, referred to globally as the fourth
Industrial Revolution.
The report states that the surge in economic value comes from three main sources, including productivity gains, time economies connected and purchasing power
The report also shared insights on the impact of IoT on major business sectors, stating that the manufacturing sector would benefit the most in terms of productivity gains and time economies at a value of $43 billion. In factories, improved productivity can boost manufacturing’s contribution to GDP by 4 percent. In addition, automated energy systems will reduce spending on not only energy but also maintenance, repair, and operations by about 16 percent. By 2025, overall productivity gains from smart manufacturing could reach about $20 billion.
Other industries expected to benefit from leveraging IoT solutions include mining and extraction, healthcare, transportation and logistics, housing and construction, and of course connectivity (telco).