Internet of things to boost UK’s economy by $531bn

Manufacturers and developers investing in the Industrial Internet of Things (IoT) could add a staggering $531bn to the UK economy by 2030, according to a new report.

The research by Accenture said the figure represents a 1.8% increase in GDP over current trend projections, as long as action is taken to boost skills, industry partnerships and broadband networks.

The report, published today, also found that the Industrial IoT could contribute $14.2 trillion to the world economy over the next 15 years, $700bn to Germany, $1.8 trillion to China and $7.1 trillion to the US.

However, Accenture said the potential gains are at risk because neither companies nor governments are taking sufficient actions to put in place the necessary conditions for the Industrial IoT.

The research coincides with another Accenture survey of 1,400 global business leaders from the world’s largest companies, which found that 73% have yet to make concrete plans for the Industrial IoT, while only 7% have developed a "comprehensive strategy".

"The Industrial Internet of Things is here today, helping to improve productivity and reduce costs," Accenture’s CTO Paul Daugherty said.

"But its full economic potential will only be achieved if companies move beyond using digital technology to make efficiency gains alone and unlock the value of data to create new markets and revenue streams. That means radically changing how they do business: working with competitors, forming partnerships with other industries, redesigning organisational structures and investing in new skills and talent."

Bruno Berthon, managing director, Digital Strategy, Accenture Strategy, added: "Businesses must work with policy makers to put in place the necessary factors, not just to unleash the innovative and entrepreneurial spirit that is needed to create and apply digital technologies broadly across economies, but to compete for foreign investors seeking ideal locations for their global operations."

The research follows a report by Federal of Small Businesses (FSB), which found that the development of the UK’s £400bn rurual economy is at risk of losing momentum, as rural businesses suffer from slow broadband connections.