Poland 2.0

Poland might not have been the first to adopt the concept of the Internet of Things, nor be its most fervent implementer, but the it is certain to become a part of everyday life

Imagine getting an SMS on your smartphone from your fridge. It’s writing to tell you that the milk is about to expire, but it also informs you that it has already made an order at your favourite online shop and a fresh supply will be delivered later today. Sound a bit far-fetched? It might be closer than you think, as more and more items which we consider to be decidedly low tech are getting connected to the internet.

Although the penetration of internet-controlled gadgets in Poland is not yet on par with world leaders such as South Korea, the country is already a hotspot in the production of Internet of Things (IoT), according to Ludovic Subran, Group Chief Economist at Euler Hermes, who explained that, unlike other countries which “don’t have the sheer need to move beyond the technological frontier, Poland could experiment with IoT in real life, with a clear business incentive.”

Tomasz Kowalczyk, Innovation Manager of HardGamma Ventures, a Warsaw-based VC firm, declares that there are some companies from Poland making waves on the international stage, but that there is still plenty of room for growth.

Keeping a tab on the kids

Kowalczyk cited Blastlab – in which HardGamma Ventures is an investor – as a company which has received positiveresponses from overseas. The Gdańsk-based firm specialises in beacons, devices which are constantly aware of where they are due to a number of receivers, and can relay different types of information to users. It produces a device which essentially consists of two armbands. One is worn around the wrist of a child, the other around that of the parent. The parent’s armband vibrates whenever the child gets too far away. Think of it as a baby monitor for the new age.

Meanwhile, Oort, another Polish company specialising in home automation equipment, is producing items such as smart lightbulbs and smart power sockets which you can turn off and on through your mobile device. Do you want your meal to be warm when you get home from work? These products allow you to turn on your slowcooker from your phone or tablet.

Oort CEO Radek Tadajewski says that start-ups from Poland often find barriers in realising their potential abroad. “In Western Europe, I feel- and sometimes hear – that the fact that we are Polish means that we don’t make ideal partners for cooperation. This is quite different from the United States or Asia. There’s no such problem there,” Tadajewski told Polish Radio in a recent interview.

HardGamma’s Kowalczyk said that what is missing for Polish start-ups operating in the IoT ecosystem and beyond, is to establish a strong relationship between the level of technology– which in his opinion is quite high – and the management capabilities which will allow these companies to grow.

Buying in bulk

But Polish companies are clearly still new to the trend towards IoT. According to Poland’s Office of ElectronicCommunications (UKE), only three percent of Polish companies use technology which is connected to the internet (apart from computers). Meanwhile, only six percent intend to expand into IoT in the near future.

Of these companies, most are in the field of transport and logistics, using it for measuring fuel consumption, for example, or to notify of road accidents. Around a third of companies use it in trade, and merely one percent use IoT solutions to monitor vehicles and buildings.

“The Internet of Things is still a relatively young solution which the market is only just getting used to,” says Adam Stańczyk, Business Analyst at BPSC, a Chorzów-based IT solutions company. “This is evident even in large companies, particularly in production plants, where, despite large investments in recent years in progressive automation and robotics, machines practically do not communicate with the software.”

‘The Internet of Things is still a relatively young solution.’

According to Cisco, which analysed the attitude of Polish entrepreneurs to such new solutions, the most common barriers to IoT are lack of funds (21 percent) and not seeing its importance for their business (20 percent). As many as 15 percent blamed a lack of knowledge about IoT.

Consumer solutions

While IoT might still seem like something far off, the price point of many products like smart TVs, internet-connected lightbulbs and location beacons is dropping, becoming ever more within the range of an increasing number of people. A total of 40 percent of Poles own products running on the IoT ecosystem, while 50 percent claim that they will buy such devices in the near future, according to a recent poll by IAB Poland.

“As Poles become wealthier, they will purchase more and more of this technology,” said HardGamma’s Kowalczyk, The market for IoT will double between 2014 and 2018, according to IDC, a global advisory firm, from $1.5 bln in 2014 to $3.1 bln by 2018. As more households and businesses recognise the potential for IoT to not only make their lives easier, but also safer and more productive, the domestic sector will continue to grow impressively.

Globally, the market for internet of things will continue to grow exponentially. According to EY, ” the number of connected devices [will] exceed 50 billion by the year 2020″. 

November 03, 2017
A good year for capital in Poland says Del Chandler
Del Chandler, managing director capital markets CEE at BNP Paribas Real Estate, talks to Poland Today about the year ahead in Polish investment and development.  How would you summarise the real estate market in Poland & CEE over the last year, and what is your outlook for the year ahead? Investment volume in Poland and [...]
November 03, 2017
For retailers, e-commerce is nothing to be afraid of
The rising tide of e-commerce won’t destroy bricks and mortar operations, but it will force them to become more tech savvy. What is the view of the e-commerce trend in Poland’s commercial real estate market?  E-commerce in Poland has been growing at more than 20% annually over the past three years and it still has [...]
Written by: