Intel's (INTC) investment in the Internet of Things is paying off, with new products being launched this year and revenue growing for the division.
Intel recently introduced several technologies aimed at the retail industry.
"Retail is a great example of one of the industrial markets that is taking advantage of IoT," said Bridget Karlin, managing director of the IoT Strategy and Technology Office at Intel's Internet of Things Group.
She estimates retail is expected to be about a $35 billion industry with IoT by 2020.
Intel recently partnered with Levi Strauss & Co. to help the San Francisco-based retailer address issues of inventory management.
"Inventory management for the whole industry is a significant problem, it's about a one trillion dollar problem a year, in terms of potentially lost sales, due to the right product not being on the shelf at the right time and that sort of thing,'' said Karlin.
Intel's Retail Sensor Platform uses technology to track RFID tags in clothing, allowing stores to keep tabs on inventory and customer preferences.
Other retailers, like Brooks Brothers and Nordstrom (JWN) , are using Intel-powered digital scanning powered to determine a customer's precise fit.
Intel is also looking to other industries for IoT applications. The company is currently piloting a DAQRI smart helmet with several companies. The helmet is essentially a connected hard hat that uses sensors to allow industrial workers to get real time information on the job, providing an additional level of safety.
"We're starting to see that from an enablement standpoint, Intel's partnering with these companies to start putting IoT in what were everyday devices that are now reimaged to be smart and connected," said Karlin.
The Internet of Things is a significant growth engine for Intel, according to Karlin.
"We're expecting anywhere around 50 billion devices coming on to the market by 2020," she said.
Intel reported revenue of $2.3 billion for its IoT unit in 2015, up 7% from the prior year. But growth of connected devices has brought increased concerns about hacking.
"It is one of the most fundamental challenges the market has in really accelerating growth of IoT,'' said Karlin, who believes security must be integrated at the chip level and that Intel has a unique opportunity to address that.