The public internet has been an enabler of growth within the global networked economy. The next wave of connectivity applications will greatly expand internet use-cases, but complexity within the technology ecosystem has also increased. There are now many mutually dependent participants.
IDATE has released its latest forecast for the global Internet of Things (IoT) market. They decided to examine the overall market which still raises a host of questions. Such as, is the IoT market development really progressing as anticipated, and how long will it take to gain significant momentum?
They also considered which IoT business models seem the most reliable? Which market players and countries are in the best position to benefit from this latest development in the Internet's evolution?
"Although the Internet of Things is a powerful concept, it is not necessarily a market in and of itself. IoT encompasses a very disparate array of fields that need to be examined separately, to obtain an accurate understanding of their particular features, and their true growth potential," said Samuel Ropert, head M2M and IoT analyst at IDATE.
IDATE forecasts that the global IoT market will grow from a base of 42 billion objects in 2015 to reach 155 billion by 2025 -- which translates into an average annual increase of 14 percent.
According to the IDATE assessment, the Internet of Objects (IoO) represents the bulk of the IoT market (80 percent), as a result of its widespread adoption by a number of commercial sectors, and due to the very low cost of electronic tags.
The connected information devices segment is the second largest in terms of volume, representing 13 percent of connected things, and it's forecast to grow by an average 13 percent per year up to 2025.
Regardless of all the hype in the global marketplace, M2M (machine to machine) applications represent only 6 percent of connected things today.
Moreover, the smallest market in terms of volume is also the newest. Wearables has reached just 1 percent of the market in 2015, but IDATE believes that it's also the market that will grow the fastest over the next 10 years -- by an average of 30 percent up to 2025.
Compared to the size of the Internet of Objects and Connected information devices segments, the rest of the market is splintered between a host of vertical industry applications.
The utilities market is reporting rapid growth, stimulated by regulations and public policies. The electronic equipment and automotive markets are also among the largest today, while the consumer electronics industry is incorporating connectivity into more and more traditional products.