0
0
Home » Technology

Internet of Things in Consumer Goods – Thematic Research

Internet of things (IoT) technology is most valuable to consumer goods companies in its capacity to facilitate the deployment of artificial intelligence (AI). IoT collects the data, 5G transmits it, and AI extracts insight from it. All three technologies have recently come of age and can now be implemented at low cost for high rewards. They should be implemented across the entire supply chain.

The global internet of things (IoT) revenue in the consumer goods industry was valued at $2.7 billion in 2019 and is expected grow at CAGR of more than 10% between 2020-2025. The IoT investment will not be as significant in the consumer goods industry as in some other markets, but it will still deliver significant returns. At present, industry IoT adoption is relatively low, and the technology is quite mature. Therefore, companies can invest with little risk. COVID-19 highlighted the need for greater supply chain visibility and flexibility, so companies should be more interested in IoT investments in the future.

Overview of IoT in consumer goods market

Overview of IoT in consumer goods market

For more insights, download a free report sample

What are the market dynamics in IoT in consumer goods?

Consumers are hyper-connected and information rich. They confidently embrace new information tools to understand and assess the products they buy and assert their preferences more strongly. They monitor their activity and order products through wearables, smart assistants, and smart appliances. Due to these developments in technology and behavior, much of the ordering process may soon be fully automated.

Installing IoT technologies across the value chain enables companies to generate end-to-end overviews of their processes with live information on the activity at each stage. These technologies include sensors, cameras, GPS trackers, barcodes, smart labels, RFID tags, beacons, and more. They are cheap, and their deployment can bring massive rewards. From end-to-end overviews, companies can create models, which AI tools can analyze to identify inefficiencies and predict problems. The relevant AI tools can be relatively cheap, and the returns can be significant. In warehouses, inventory control and organization can be improved. By monitoring staff locations from warehouses to distribution, companies can make recommendations to minimize unnecessary travel time.

IoT integration enables broader intra-supply chain information flow. With a better picture of the activity of others, each part of the supply chain can operate with leaner error margins built-in and fewer misunderstandings and miscommunications. The broader information flow can be used to attract third parties. Retailers, which operate on tight logistical margins, demand ready, reliable stock information, as it reduces costs.

What are the value chain segments in IoT?

The value chain for IoT is segmented into five layers: devices, connectivity, data, apps, and services. In the device layer, we find the makers of connected things, including sensors, embedded chips, and their components. Connected things can include connected cars, smart thermostats, fitness bands, smart light bulbs, or a parcel in a delivery truck. The essential electronic components include microcontroller chips, AI chips, communications chips, and sensors. In the connectivity layer, providers of network connections are the key players, including major telecom operators and networking equipment vendors. We also find in this category makers of edge devices (e.g., routers and gateways), which provide entry into the communications network.

In the data layer, the information is collected, processed, integrated with other systems, analyzed and utilized in an IoT environment. Much of the analytics, security, and management is provided by companies offering infrastructure as a service (IaaS). In the app layer, we find the smart hubs that control and monitor connected things. This is where the long-term value reside and this layer is also where start-ups are most active. In the services layer, we find the technology service providers who provide system integration, consulting, and other data services related to the development and maintenance of IoT ecosystems. IoT services have become a necessary addition to the IoT value chain over the last decade because many IoT adopters lack the design, technical, integration, or data analysis skills to be able to deliver a successful IoT implementation.

Which are the key players deploying IoT in consumer goods ecosystem?

Coca cola, Colgate-Palmolive, Diageo, Heineken, Johnson & Johnson, Kellogg’s, Kraft Heinz, Loreal, Nestle, Procter & Gamble, and Unilever are some of the leading companies deploying IoT in consumer goods ecosystem.

IoT in consumer goods market, by key players

IoT in consumer goods market, by key players

To know more about key players, download a free report sample

Market report scope

Market size (2019) $2.7 billion
CAGR >10%
Forecast Period 2020-2025
Key Value Chain Segments of IoT Devices, Connectivity, Data, Apps, and Services
Key Players Coca cola, Colgate-Palmolive, Diageo, Heineken, Johnson & Johnson, Kellogg’s, Kraft Heinz, Loreal, Nestle, Procter & Gamble, and Unilever

 Scope

  • Internet of Things (IoT) technology is most valuable to consumer goods companies in its capacity to facilitate the deployment of artificial intelligence (AI).
  • Consumer goods companies should install dumb, basic IoT sensors across the value chain to gather the data required by AI systems. With astute implementation, this will enhance operational efficiency, reduce costs, improve decision-making, and provide a better customer experience.
  • Companies should resist flashy, gimmicky IoT features. Technological features do not attract consumers.

Reasons to Buy

  • Identify leading IoT vendors in the consumer goods sector and select potential technology partners based on their competitive position within the IoT theme.
  • Benchmark your IoT strategy against leading IoT adopters in the consumer goods sector. Gain a deeper understanding of the competitive landscape of the industry and spot gaps in the market for new uses of IoT.
  • Prioritize investments in the areas of IoT which will deliver the best results for your company. We provide recommendations on the areas of the value chain you should focus investment on and highlight the parts you can confidently ignore.
  • Develop marketing messages and value propositions for your IoT capabilities that will help you emerge as a leader in your sector.
  • Quantify the global sales opportunity for IoT services to the packaging industry by accessing GlobalData’s market size and forecasts, produced by our consumer goods and technology analysts.

Table of Contents

| Contents

Executive summary

IoT value chain

Consumer goods challenges

The impact of IoT on consumer goods

Case studies

Market size and growth forecasts

Mergers and acquisitions

IoT timeline

Companies

Sector scorecard

Glossary

Further reading

| Our thematic research methodology

| About GlobalData

| Contact Us

Frequently Asked Questions

The IoT market in consumer goods sector was valued at $2.7 billion in 2019.

The IoT market in consumer goods sector is expected to grow at a CAGR of more than 10% during the period 2020-2025.

The IoT value chain is segmented into devices, connectivity, data, apps and services.

The key players of IoT in consumer goods sector are Coca cola, Colgate-Palmolive, Diageo, Heineken, Johnson & Johnson, Kellogg’s, Kraft Heinz, Loreal, Nestle, Procter & Gamble and Unilever.

    Pricing

Discounts available for multiple purchases.

reportstore@globaldata.com
+44 20 7947 2960

Join our mailing list

Saved reports