Skip to main content

Worldwide IoT Services Market will Double by 2020

Given the upside potential opportunity for the Internet of Things (IoT) -- most of which is yet to be realized -- enterprise leaders are making significant investments in partnership with key technology service providers to explore new growth areas.

As a result, Everest Group forecasts that the IoT services market will more than double in the next three years, reaching $18 billion by 2020.

IoT Services Market Development

Enterprises are already exploring ways that IoT can be used to achieve higher efficiency, enable data-driven decision-making and develop new revenue opportunities through customer-centric products and services.

With enterprises and service providers considering IoT as their next big opportunity, Everest Group has identified several trends that are emerging from the current adoption pattern:
  • Eighty-seven percent of enterprises are optimistic about the returns on their investments in IoT.
  • The percentage of IoT projects moving from pilot to production has jumped four-fold from 2014 to 2016.
  • All industries are gearing up for IoT adoption; manufacturing is leading the way with 36 percent of IoT adoption.
  • Developing a strong partner ecosystem is extremely complex and requires disruptive vision.
"Enterprises are increasingly adopting IoT to improve operational efficiency and create disruptive business models," said Chirajeet Sengupta, vice president at Everest Group.

A number of players across the IoT stack are making huge investments to grab a larger share of the pie, but most fall short on expectations of a transformation partner. Savvy service providers can draw on their engineering and services expertise, by embracing engagement models to help their clients with long-term innovation.

The current use cases of IoT are dominated by the need of enterprises to drive operational efficiency. However, enterprises will likely leverage IoT to fundamentally transform their business going forward.

In fact, Everest Group has identified four distinct classifications of organization, based upon the business objectives they hope to accomplish through their IoT initiatives:
  • Engagers represent 17 percent of IoT adopters; these enterprises drive IoT adoption largely for customer engagement and creation of experiences.
  • Optimizers (63 percent) adopt IoT mainly to solve operational issues and improve internal efficiencies.
  • For Integrators (14 percent), the objective of IoT adoption is growth for the entire enterprise ecosystem.
  • IoT adoption by Innovators (6 percent) results in transformative disruption and otherwise unthinkable business models.
"Enterprise organizations should adopt IoT across all categories, which will lead to new revenue streams and adoption of new business models," added Sengupta.

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

Precision Medicine Spend to Reach $132.3 Billion

Precision Medicine uses molecular info to extract the optimum medical method from diagnostic protocols, by merging the impact of environmental and genetic factors. Data access is essential, with genetic metabolic and clinical data used to build a fuller picture of a patient's biology. Moreover, the primary aim of precision medicine is to design and optimize a pathway for diagnosis, therapeutic intervention, and prognosis, using large biological datasets. Personalized, evidence-based medicine uses stored health data, which includes patient diagnosis, laboratory work, insurance claims, and demographic information. The results enable healthcare providers to predict and prevent some illnesses. Precision Medicine Market Development According to the latest worldwide market study by Juniper Research, the total investment in precision medicine will reach $132.3 billion globally by 2027 -- that's increasing from only $35.7 billion in 2022. The significant market growth of 270 percent is