The Internet of Things holds the future of numerous industries and consumer goods within its grasp. Demand for connectivity among consumers is rising, and businesses now wonder whether their market is ripe for smart, connected products. The answer depends in great part on location. It’s no shock that developed regions garner the lion’s share of the IoT market. What is surprising, though, is how much market success relates to decisions made by governmental agencies as much as it does with consumers’ standard of living or levels of disposable income.

The U.S. Government is pushing spending on IoT manufacturing technologies

Governments are rapidly getting on board the Internet of Things. The Pentagon, for example, has led U.S. spending on IoT sensors in the last four years. The State Department recently awarded a contract to create an IoT platform that will control sensors and energy use across its 22,000 buildings around the world. The interest in smart products also flows down to the state level, as evinced by President Barack Obama’s decision to make Los Angeles his administration’s ninth U.S. manufacturing hub and one of the first to focus on “smart sensors and digital process controls.” The hub, entitled the Smart Manufacturing Innovation Institute, will integrate smart capabilities into commercial manufacturing processes via an open-source digital platform, directly impacting product manufacturing in America.

IoT platforms such as these are creating ecosystems that enable business managers, developers and vendors to communicate and partner more easily, making smart products more viable on a large scale.

The U.S. and North America is leading the world in IoT revenue

The move to smart technologies is more than a search for new, ecologically sustainable and cost-effective manufacturing methods. It’s also a move to keep U.S. products competitive. Nearly two-thirds of decision-makers surveyed by IDC were aware of the inherent value in IoT. Furthermore, surveys show that North America as a whole leads the world in IoT revenue and product usage.

IoT revenue by region
North America leads the world in Internet of Things revenue. Image Source: IDC 2014

The possible sources of revenue and savings from smart products and IoT technology are endless. Morgan Stanley estimated that automated, driverless cars “will generate $1.3 trillion in savings” for the U.S. Cars, along with consumer goods and industry, are one of the largest opportunities for implementing smart, connected technology to revitalize products and increase sales and revenue.

IoT revenue will grow in the U.S. through smart cars.
Connected cars are a growing source of revenue for the U.S. and North America. Source: ABI research. Taken from


Despite such a clear incentive to utilize IoT platforms and technology, some manufacturers are still hesitant to get on board with IoT due to fears about data and network security. Here, too, The U.S. government is taking up the reins to encourage IoT technology development and implementation. The U.S. Defense Department and DARPA are looking for new ways to monitor security through ‘low-resource, embedded” and IoT devices. The fact that a larger body is encouraging security developments in IoT will have a quick ripple effect that reaches private businesses and will encourage more companies to build smart products.

Judging by government decisions and research statistics, U.S. and North American dominance in IoT revenue and consumer demand is only growing. The efforts to add IoT to U.S. manufacturing infrastructure on the governmental level will directly impact the speed of IoT market penetration in America.

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Zahava Dalin-Kaptzan

Zahava is a Content and Marketing Manager at Seebo and a writer who loves exploring new technologies through the written world.