PwC Herald Talks: The internet of things

Stores where customers can walk in, take an item off the shelf and be charged for it without having to go through the checkout will be "everywhere" in the next five years, says an expert.

Amazon has already rolled out a prototype supermarket in Seattle where shoppers scan their smartphone when walking in and sensors automatically detect what they take off the shelves.

Ulrich Frerk, founder and chief executive of Kiwi tech firm Adroit, said these types of shops would be everywhere within five years.

Frerk was the keynote speaker at the latest PwC Herald Talks in Auckland yesterday on the Internet of Things.

The Internet of Things, or IoT for short, is the name given to the massive rise of connected devices that can communicate with each other via WiFi, Bluetooth or other protocols. The number of internet-connected devices worldwide is predicted to hit 25 billion by 2020 from about 5 billion today.

Products in the market right now include internet-connected light bulbs, which allow owners to measure and control light and energy use. Frerk has also been involved in developing a connected spa-pool, which can let the owner know when it needs to be cleaned via a smartphone application.

"The IoT is bringing more and more things into the digital fold every day which will more than likely make the IoT a multi-trillion dollar industry in the near future."

On a broader scale, the IoT could help enable smart cities by reducing waste and improving energy efficiency.

One of the key benefits of IoT was that it helped businesses better understand their customers, he said.