Figure 5-3-3-1 Perceptions of promising fields

(Source) "Study Report on Structural Changes and Future Prospects for the Global ICT Industry," MIC (2015)

## Section 4 Structural Changes in the Economy Caused by ICT Advancement

In this section, we analyze three noteworthy structural changes in the economy brought about by ICT advancement. The first is the changes caused by the Internet of Things (IoT), which has gained a lot of attention

### 1. IoT's impact on industry

This paragraph provides a general overview, interspersed with examples from multiple perspectives, of the impact of the Internet of Things (IoT), which has gained a lot of attention recently, will have on industry.

## (1) From ubiquitous networks to the IoT

The ubiquitous-networked society, in which everything and everyone is connected to networks everywhere and all the time, was conceived in the first part of the 2000s. Its actualization has rapidly taken off in recent years primarily due to advances in component technologies that will be mentioned below. The ubiquitous networks that are finally coming into being are now expressed by the term Internet of Things (IoT). IoT means that a multitude of things—not just conventional ICT devices like computers, smartphones, and tablets—will form part of the Internet by virtue of sensors and wireless communications.

The IoT concept refers to a state where vehicles, white appliances, robots, facilities, and nearly all other things connect to the Internet and exchange information with each other. According to the concept, as things are converted into data and automation based on these data progresses, new added value will be generated. The IoT will also contribute to transforming things into services, where not only are products sold; products are used to recently; the second is the changes that ICT is starting to bring to bear on the entrepreneurial process; and the third is the changes that are occurring as a result of advances in the use and application of big data.

provide services.

An unmistakable indicator of the advent of the IoT era is claimed to be the explosive growth in the numbers of things connected to the Internet. According to IHS, the number of things connected to the Internet (i.e., IoT devices) in 2013 was approximately 15.8 billion. The company estimates this figure will soar to about 53.0 billion by 2020 (Figure 5-4-1-1).

IoT is being closely watched in the automotive and industry sectors because of its growth rate (Figure 5-4-1-2). On the other side, according to Cisco, of the 1.5 trillion things existing today in the world, 99.4 percent of them are not connected to the Internet. Assuming in the future many more of these things will be connected to the Internet, it is possible to glimpse the scale of the latent value the IoT concept holds.

## (2) Specific impacts of the implementation of the IoT

What specific ramifications will the realization of the IoT have? Here, we give a general overview of real applications divided into three areas: the manufacturing industry, public infrastructure, and personal services.

### a. Impacts on industry (manufacturing and other industries)

The IoT can improve production lines in manufacturing plants, by making it possible to collect and analyze