From the Internet of Things to an Economy of Things

Thanks to the Internet of Things (IoT), physical assets are turning into participants in real-time global digital markets. The countless types of assets around us will become as easily indexed, searched and traded as any online commodity. While some industries will be tougher to transform than others – those with physical limitations, such as manufacturing, will be harder to digitize – untold economic opportunities exist for growth and advancement.

Our research shows this will create a new “Economy of Things” with significant consequences. Here, we explore this transformation, including what could happen to industry profit pools, as well as the likely impacts on existing players in different industries.

Study highlights

The IoT can create liquid marketplaces of physical assets by enabling real-time discoverability, usability and payment.

Instrumentation and digitization can revolutionize credit and lending by building more accurate pictures of risk.

Insights from IoT devices in industries that are not technology-intensive could yield substantial gains in efficiency.

About the authors

Veena Pureswaran

Veena Pureswaran
Global Electronics Industry Lead,
IBM Institute for Business Value

Dr. Robin Lougee

Dr. Robin Lougee
Global Research Industry Lead for the Consumer
Product and Agriculture Industries, IBM Research

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