22 November 2023
The Internet of Things, or IoT for short, is becoming part of our daily vernacular – at least for those who are clued up on the trajectory of technology. The IoT refers to the interconnectedness of anything from devices and appliances to municipal services around the globe.
The Internet of Things, or IoT for short, is becoming part of our daily vernacular – at least for those who are clued up on the trajectory of technology. The IoT refers to the interconnectedness of anything from devices and appliances to municipal services around the globe. The vision for IoT is that everything non-human around us will be able to communicate with each other – such as street lights being able to self-report when they are dim, or traffic lights being able to alter timing during peak periods to alleviate congestion. The Internet of Things is an integral aspect of what is known as a ‘Smart City’. By definition, a Smart City utilises IoT sensors, actuators and technologies to construct a network, culminating in an interconnected city that efficiently runs on AI.
Whilst it may sound foreign and probably only something the most developed and progressive cities in the world are dipping their toes into, IoT is far more prominent and advanced than the general public thinks. By 2020, the Smart City industry is predicted to be valued at $400 billion, making it one of the most lucrative and rapidly developing in the world. According to a McKinsey research report, these cities are expected to generate 60% of the world’s GDP by 2025. More than this, there are over 600 cities in the world that have met the criteria to be considered ‘Smart Cities’, meaning that not only is this market flourishing, it is competitive.
Australia is certainly in the race, with the number of companies using IoT tools and solutions growing from 12 per cent in 2013 to 29 percent in 2017. The establishment of a new Australian Government branch called the Office of Future Transport Technologies in late 2018 further indicates that our nation is catching wind of the new era sweeping the globe and revolutionising the way we live.
Additionally, the smart mobility market in the APAC region is set to grow significantly, and tools like AI, analytics and IoT will be at the heart of intelligent public transport management systems, smart junction management and many other offerings that will likely become standard in the near future. In Ipswich, Queensland, the Smart City Program in place already includes smart parking and transport, smart lighting and energy management, autonomous lawn mowing and automation, just to name a few.
The statistics don’t lie, and it is clear that not only Australian society but the future of the world is headed in a single direction: towards greater and grander efficiency and sustainability, with the Iot and Smart Cities being two irrevocable tools in achieving this utopia.
Australian companies such as Traffic Technologies (ASX: TTI) are tapping into this growing market. TTI has gained a strong reputation within the field, and is also looking to expand their smart city deliverables to Mexico, Hong Kong, Qatar and China.
For more information on TTI, please visit their Investor Centre.
*Reach Markets have been engaged by TTI to assist with private investor management.