The immature and fragmented state of markets for many IoT services increases development and operational costs. A Korean government review found limited application of IoT e-government pilot projects and a low rate of introduction of IoT services in small and medium-sized enterprises (SMEs). To encourage new businesses to develop and use IoT applications, some governments (including those of Rep. of Korea, China, India and the United Kingdom) are supporting the development of IoT business incubators and innovation centres, which include platforms and testbeds for start-ups and SMEs. These can increase market entry, leading to increased competition and reduced costs42. In addition to these issues, there is a coordination challenge. Put simply, IoT infrastructure must be deployed in a given industry sector before applications can be deployed to bring the concrete benefits of IoT to that sector. Large investments may be needed to finance the development of infrastructure and applications, but this creates a Trends in Telecommunication Reform 2016 77 Chapter 3 Table 3.1: Overview of some key applications to-date (end)Areas of applications Drivers Examples Possible development Connected vehicles • Faster and more targeted emergency response to accidents.• To enable drivers to mon-itor their cars’ operational condition and performance, allowing them to improve vehicle reliability and fuel effi-ciency, as well as keep track of journeys.• Pay-as-you-drive insurance.• Stolen cars can be remotely tracked and disabled.• Autonomous driving.• Worldwide, the top 14 car manufacturers, which account for 80 per cent of the global market, all have connected vehicle strategies28.• The EU is close to agree-ing on requirements for all new cars and small trucks to feature an “eCall” system from April 201829.• By 2020, an estimated 90 per cent of cars sold in the United States will have an Internet con-nection -- an increase of more than 80 per cent over 201330. • Cars will share conges-tion and road problem data, enabling other cars to avoid traffic snags and to notify repair and emergency services of road maintenance problems.• More efficient insurance markets, particularly for under-served groups such as young adults.Healthcare • The need to improve effi-ciency and care in existing healthcare settings. • The need to enable much greater use of remote tele-medicine services, with greater patient comfort and lower cost.• Letting individuals monitor own health, improving well-being by better managing conditions such as diabetes, encouraging exercise and healthy eating, diagnosing medical conditions more quickly, and encouraging compliance with treatment regimes.• Patients with chronic conditions can monitor and report warning signs, using devices such as connected insulin pumps and blood-pressure cuffs.• The annual cost of chronic conditions could reach USD 15.5 trillion by 2025, with remote monitoring potentially reducing this figure by 10-20 per cent31.• “Quantified self” systems will measure heart rate, breathing, temperature, sleep and brainwaves, and apps will help users record diet and alcohol intake – increasingly collected and linked via users’ smart phones or other wireless devices32. • Patients will share data to reassure care-givers and relatives, share advice in online patient forums, and volunteer information to medical researchers.