Skip to main content

IoT Connected Device Revenue will Reach $74 Billion

The Internet of Things (IoT) enables the potential for many new categories of connected devices. In the near term, smart wearables will likely be first to disrupt the consumer electronics landscape, as mind-share and eventually revenue shift from PCs and smartphones to these new devices.

Connected device competition will intensify as vendors compete for the nearly $74 billion in new revenue that will be available by 2020, with smart watches accounting for more than $50 billion in revenue, according to the latest market study by Technology Business Research (TBR).

"Most wearables require a mobile device, PC or both for users to gain the most functionality, helping keep PCs and smartphones in the purchasing conversation, especially in consumer markets," said Jack Narcotta, analyst at TBR.

However, as component and chip makers -- such as Intel, Samsung and Qualcomm -- innovate in areas like processors, displays and batteries, smart wearables will become more advanced and autonomous, relegating PCs and smartphones to mere supporting roles.

TBR research uncovered that most people will choose the connected device they need for a specific task or activity, just-in-time, and they view the PC and smartphone as their information and connectivity hubs.

That being said, TBR believes the influx of smart watches creates opportunities for PC and mobile vendors to strengthen the role and appeal of their legacy devices -- even if they do not participate in the smart watch market.

However, as PC and smartphone user attention shifts to smart wearables, revenue and profit growth from these traditional product segments will surely contract. In fact, consistent year-to-year revenue declines experienced by vendors in the TBR benchmark study amplify the pervasive trends.

While TBR estimates total device revenue for 2Q15 rose 7.9 percent year-to-year to $109.1 billion, the Apple iPhone revenue of $31.4 billion accounted for 28.7 percent of total device revenue in 2Q15.

Apple's 58.8 percent year-to-year revenue growth served as a stark contrast to the cumulative 11.1 percent decline of all remaining vendors and segments.

According to the TBR assessment, companies prepared for changes in customer purchasing behaviors and device use-cases will win in these new markets, and those that capitalize on the smart wearables opportunity will strike a balance of making quick decisions to enter the market and cultivating longer-term strategies that identify the next steps to protect legacy core businesses.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How Generative AI Will Reshape the Economy

The Global Networked Economy -- a term synonymous with the interconnectedness of businesses, individuals, and governments worldwide -- has undergone a remarkable transformation in 2023. Fueled by the rapid growth of digital technologies and the global internet, this phenomenon has given rise to a worldwide marketplace that has already revolutionized the way we live, work, and play. The impact of Generative Artificial Intelligence (GenAI) in 2024 will be equally disruptive to many traditional business leaders. GenAI will also create huge opportunities for the fearless pioneers. Global Networked Economy Market Development The Global Networked Economy's evolution traces back to the advent of the Public Internet. The introduction of eCommerce, social media, and cloud computing has been instrumental in reshaping how businesses operate and engage with their customers. This interconnected ecosystem empowers savvy leaders to access new markets, trim operational costs, enhance commercial e