Skip to main content

The Internet of Things Market to Reach $3.04 Trillion

You're going to see many more references to the Internet of Things (IoT) in 2015, and for a very good reason. Industry analysts now believe that this nascent technology and associated ecosystem of vendors and service providers is ready to experience high growth.

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..

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

How to Apply Sustainability to Drive Value Creation

Global climate change policy initiatives have been an emerging topic for CEOs and their leadership teams, as they look to the future. Many organizations are preparing to play their part and help reduce carbon emissions. Eighty-seven percent of business leaders expect to increase their organization’s investment in sustainability over the next two years, according to the latest worldwide market study by Gartner. Customers are the stakeholder group creating pressure for these organizations to invest or act on sustainability issues -- selected by 80 percent of executives, followed by investors (60 percent) and regulators (55 percent). Sustainability Market Development "Sustainability enables businesses to cope with disruption," said Kristin Moyer, VP analyst at Gartner . "Economic uncertainty, geopolitical conflict and escalating materials and energy costs are forcing businesses to reexamine all forms of expenditure." According to Gartner, this focus on essentialism --