Predictions that the Internet of Things (IoT) will usher in a new era of prosperity get some backing in a new study by consulting firm McKinsey & Company.

The study estimates that the annual value of IoT applications may be equivalent -- in the best case -- to about 11% of the world's economy in 2025. That's based on a number of assumptions, including the willingness of governments and vendors to enable interoperability through policies and technologies.

IOT is expected to deliver improvements to the reliability of machines, as well as to individual health and life overall. But it may also be intrusive on privacy, and while the IoT will create new jobs, it will cost some as well.

Here are five major points from this report: