Big Data and IoT worth £322 billion to the UK by 2020

A new research report by SAS and the Centre for Economics and Business Research states that Big Data and the Internet of Things (IoT) is set to be worth £322 billion to the UK economy, or 2.7% of GDP, by 2020. The report is based on the findings of a survey which asks businesses and Government to examine the value of Big Data and the IoT to a range of specific industries and to the UK as a whole.

According to “The Value of Big Data and the Internet of Things to the UK Economy” Big Data Analytics will represent £241 billion of this value while the IoT will contribute £81billion with a combined £292 billion generated from efficiency savings alone. In addition Big Data will provide 157,000 additional jobs by 2017 and the IoT will create 67,000 jobs between 2015 and 2020.

This detailed report, which is a follow-up to Cebr’s 2012 “Data Equity: Unlocking the value of Big Data” report, notes that the value of Big Data and the IoT is realised in many ways with 84% of businesses surveyed reporting increased revenues from Big Data investments, with 85% for IoT. In addition 93% of businesses enjoyed cost savings through Big Data and 91% through the IoT.

The efficiency savings, referenced in the report as the key contributor to GDP, come from various channels including customer intelligence, supply chain management, quality management, performance management and fraud detection. These savings enable companies to invest in product innovation and business creation which in turn leads to increased employment opportunities across all industries both through hiring specialist technological staff and through general business expansion. The survey findings also reveals that gaining insights into customer behaviour is one of the most popular uses of Big Data, as well better decision-making, risk management and gaining better views into operational data.

The report highlights that businesses of all sizes can enjoy these benefits with small (71%), medium (68%) and large (85%) businesses all believing Big Data and IoT allows for greater innovation. However, the realisation of the value and opportunities presented by Big Data and IoT will be generated through increased adoption rates of these technologies. The report claims that currently 30% of businesses have adopted IoT strategies and 56% have implemented Big Data solutions. These are expected to rise to 43% and 67% respectively by 2020.

techUK is continuing to look at the value of Big Data and how to drive its implementation. As part of this work techUK are holding a session on how Big Data and the IoT can add value to the UK agriculture industry on 30 March 2016, as well as regional Big Data in Action Roadshows, the first of which will take place in London on 12 April 2016.

FROM SOCIAL MEDIA

Join techUK at the Privacy Conference 2017 where @techUKdepCEO Antony Walker will speak. 15% off for techUK members. https://t.co/i2Yo73N80W
What Would Great #Connectivity Deliver? #Autonomous vehicles - read more about Environmental Benefits here =>… https://t.co/sBJSwQC1bY
Join us on 11 Sept for our AI & the Comms sector event with speakers inc @verizon, @awscloud & @rethinkresearch https://t.co/MO6DsXSdmD
The 2017 ScaleUp Business Survey is here! What is needed to help businesses achieve scale? https://t.co/CIRXCaKr8b
Booking's now open for our Health & Social Care Industry Dinner on 15 Nov sponsored by @UKCloudHealth https://t.co/yku5PlQ77t #HSCDinner17
Our Policy Manager @doniyasoni comments on #alevelresults - welcoming 34% increase in girls taking computing https://t.co/CX9r9EdKOh
Registration for #Supercharging17 is now open. How does the UK secure its leadership in a Global Economy? https://t.co/HvjzIvkecJ
techUK is delighted to be a Partner of @cyberawaregov ensuring SMEs and individuals are better protected against cyber criminals #CyberAware
Nominations for @BCloudUK’s tech firsts list closes tomorrow – if you’re doing something new get in touch!… https://t.co/W1AT1tK6hB