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When it comes to the IoT, Germany is beating the U.S.

Internet of Things
The Internet of Things is taking over in a big way, what with connected devices and smart homes solidifying their position as the next trend in tech. And while Silicon Valley generally seems to be at the forefront of such innovations, that may not be the case this time around. In fact, according to a new survey from Boston Consulting Group (BCG), despite the loads of money the U.S. is pouring into the IoT, it all pales in comparison when placed next to Germany.

That’s right — the nation known for its fine craftsmanship and luxury cars is placing big bets on the IoT, and when BCG polled over 300 German and American manufacturing executives to ask if they had already applied or planned to apply digital solutions in their factories, the Germans came away the clear winners.

As per survey results, 17 percent of German and U.S. manufacturers say they’ve already applied predictive maintenance solutions in their facilities, but over 40 percent of Germans say they plan to do so in the next one or two years, whereas only 24 percent of Americans can say the same. And while 39 percent of German manufacturers plan to employ autonomous robots and assistance systems in the next couple years, only 20 percent of Americans are as ambitious.

While many factories still rely primarily upon human capital, this may soon change — automation appears to be taking on an increasingly important role in the manufacturing world, and Germany is certainly ahead of the curve. According to BCG’s report, worldwide spending on IoT solutions is on track to jump to $70 billion by 2020, up from $29 billion in 2015. And as the revolution continues, it seems that manufacturing has the most to gain.

Indeed, according to a TATA Consultancy Survey, manufacturers who used IoT tools in 2014 enjoyed an average increase of 28.5 percent in revenue between 2013 and 2014.

So watch out, America. It may be high time to take a page out of Germany’s book as the new age of technology dawns.

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