Economy forecasters and analytics knew Big data and the Internet of Things (IoT) will have an impact on UK’s economy, but the numbers that just got released in a new study are quite impressive.
According to a new research done by the Centre for Economics and Business Research (Cebr) and SAS, entitled ‘The value of big data and the Internet of Things to the UK economy’, the industry is expected to add £322 billion to the UK economy by 2020.
In a press release following the announcement, the two companies tried to put things into perspective: that amount of money is twice the size of education, NHS, and defence budgets for 2014-15 – combined (they are comparing four years’ worth of money with a yearly budget, but nevertheless). The money also equals to more than a fifth (22 per cent) of UK’s net public debt.
The report breaks down values of Big data and the IoT. Every year, Big data will earn the economy an average of £40 billion, which equals 2.2 per cent of GDP. The biggest winners will be the manufacturing industry, the report suggests.
As for the IoT, its value is expected to reach £81 billion by 2020, or £14 per year, or 0.7 per cent of annual GDP.
“The combined benefits of IoT and big data will fuel our economy like nothing else,” said Mark Wilkinson, SAS Regional Vice President – Northern Europe and Russia/CIS. “The global environment continues to be in a state of flux, with only one thing certain – that everything is changing. 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.
The full report can be found on this link.