News: IoT & big data analytics expected to add £322bn to the UK economy by 2020.
The growth in big data analytics and the Internet of Things (IoT) is estimated to add £322bn to the UK economy by 2020, in addition to creating 182,000 new jobs.
Big data analytics is expected to contribute £241bn to the UK economy between 2015 and 2020, while the total economic benefit of the IoT is anticipated to total £81bn.
Carried out by the Centre for Economics and Business Research (Cebr) on behalf of analytics vendor SAS, the report was based on 409 interviews with senior UK decision makers, as well as official government data.
Cebr arrived at these figures by asking business decision makers about the efficiency, innovation and business creation gains they have seen as a result of investments in IoT and big data and then factoring in projected adoption growth of the two technologies.
Big data is expected to result in efficiency savings of £220.4bn, innovation benefits of £12.4bn and business creation benefits of £8.1bn in the next five years, according to the SAS report.
The IoT is anticipated to bring efficiency benefits of £72.5bn, innovation benefits of £4.5bn and business creation benefits of £4.3bn.
With respect to adoption rates, around 56% of companies surveyed in the SAS report have currently rolled out big data analytics. This is expected to rise to 67% by 2020.
The IoT adoption rate is set to increase from 30% to 45% during the same period, driven by the growth in smart homes, wearable tech and other connected devices.
SAS regional vice president of Northern Europe and Russia/CIS Mark Wilkinson said: "The combined benefits of IoT and big data will fuel our economy like nothing else.
"Just under half of UK businesses are not using any form of Big Data analytics, and those that are will sometimes be using it infrequently in just one or a few areas of the business. Less than one in three have adopted IoT."
Manufacturing, professional services, retail banking and telecoms will benefit from the growth in the next few years.