Together, the IoT ecosystem represents boundless opportunities -- billions of connected things within a wide variety of industries across the globe. The combined revenue opportunities are forecast to be one of the bright spots on the new Internet-related technology frontier.
A recent forecast from International Data Corporation (IDC), based upon an extensive global market study, provides insights from their latest findings -- defining the hardware, software, services, connectivity, and security aspects that make up the evolving IoT ecosystem.
According to the IDC assessment, the worldwide IoT market is forecast to grow from $1.3 trillion in 2013 to $3.04 trillion in 2020, with a compound annual growth rate (CAGR) of 13 percent.
IDC defines the Internet of Things as a network of networks of uniquely identifiable endpoints that communicate without human interaction using IP connectivity – be it locally, regionally or globally.
Their view of the IoT ecosystem includes intelligent systems, network equipment, connectivity services, data integration, and often other types of software, applications, services and security capabilities.
As IoT matures, a variety of vendor strategies and key players will emerge to find success in meeting customers' needs -- as well as growing new revenue streams from this net new market development.
"The opportunities presented by IoT are driving widespread attention among both traditional and non-traditional ICT vendors looking to take advantage of emerging revenue opportunities," said Vernon Turner, senior vice president at IDC. "We're still in the early stages of maturation and IoT represents unparalleled opportunity in government, consumer, and enterprise environments."
IDC believes that the North American market has sidestepped border-driven IoT adoption challenges and set the groundwork for IoT market growth. In addition, government mandates will drive the Western Europe and Asia-Pacific regions to outpace North America in terms of IoT revenues and installed base through 2020.
Regarding the current outlook, IDC says there likely won't be one dominant leader in this market. The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions.
Additional findings from the market study include:
- In the IoT market, a collection of vendors, service providers and systems integrators must co-exist and integrate products and solutions to realize success.
- The installed and connected base of IoT units will reach approximately 30 billion in 2020.
- Startup vendors are working feverishly to carve out their strategies to attack this market and will drive the innovation pace of larger vendors..