The Internet of Things (IoT) market momentum has grown steadily and the upside promise is slowly becoming a reality. According to a market study by International Data Corporation (IDC), a transformation is underway that will see the worldwide market for IoT solutions grow from $1.9 trillion in 2013 to $7.1 trillion in 2020.
IDC defines the Internet of Things as a network of networks of uniquely identifiable endpoints (or things) that communicate without human interaction using Internet Protocol (IP) connectivity – be it locally or globally.
Globally, informed people are developing a high affinity for full-time online connectivity, which makes consumer IoT a compelling value proposition. Meanwhile, enterprise leaders are intrigued by the efficiencies, business process implications, and revenue opportunities that IoT solutions can generate over time.
"Businesses are taking the necessary steps to gain a deeper understanding of IoT and the overall value," said Vernon Turner, senior vice president at IDC. "Technology vendors are evolving their solutions in a supply-driven market that's edging toward becoming a more demand-driven market."
The worldwide IoT market is exploding, and IDC's research examines the full breadth of the IoT ecosystem -- including intelligent and embedded systems shipments, connectivity services, infrastructure, purpose-built IoT platforms, applications, security, analytics, and professional services.
IoT solutions are at the heart of IDC's view of the 3rd Platform and the four pillars -- mobility, social business, big data/analytics, and cloud -- resulting in millions of applications available to billions of end points.
Other findings from the market study include:
IDC defines the Internet of Things as a network of networks of uniquely identifiable endpoints (or things) that communicate without human interaction using Internet Protocol (IP) connectivity – be it locally or globally.
Globally, informed people are developing a high affinity for full-time online connectivity, which makes consumer IoT a compelling value proposition. Meanwhile, enterprise leaders are intrigued by the efficiencies, business process implications, and revenue opportunities that IoT solutions can generate over time.
"Businesses are taking the necessary steps to gain a deeper understanding of IoT and the overall value," said Vernon Turner, senior vice president at IDC. "Technology vendors are evolving their solutions in a supply-driven market that's edging toward becoming a more demand-driven market."
The worldwide IoT market is exploding, and IDC's research examines the full breadth of the IoT ecosystem -- including intelligent and embedded systems shipments, connectivity services, infrastructure, purpose-built IoT platforms, applications, security, analytics, and professional services.
IoT solutions are at the heart of IDC's view of the 3rd Platform and the four pillars -- mobility, social business, big data/analytics, and cloud -- resulting in millions of applications available to billions of end points.
Other findings from the market study include:
- Developed regions garner the majority of the IoT market, representing approximately 90 percent of installed units.
- Worldwide IoT Installed Base will experience a compound annual growth rate (CAGR) of 17.5 percent from 2013 to 2020.
- Increasingly over the forecast period, IDC expects product offerings will be differentiated and competition will generally intensify, particularly around holistic solution offerings that incorporate smart analytics and applications.