A number of new reports on the Internet of Things (IoT) provide a fresh look at the state of this hot market and forecasts for its future impact on the world’s economy.
Sourced through Scoop.it from: www.forbes.com
Profound list of drivers and trends that have been identified in the unfolding development of the IoT, a very worthwhile read.
(1) The economic impact of the IoT will re-shape the world’s economy: The IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025. At the top end, that level of value—including the consumer surplus—would be equivalent to about 11% of the world economy (MGI). The IoT market will expand from $780 billion this year to $1.68 trillion in 2020, growing at a CAGR of 16.9%. Sensors/modules and connectivity account for more than 50% of spending on IoT, followed by IT services at more than 25% and software at 15%. (IDC).
(2) There will be almost 30 billion of IoT devices in 2020: In 2015, 4,800 connected end points are added every minute. This number will grow to 7,900 by 2020. The installed base of the Internet of Things devices will grow from 10.3 billion devices in 2014 to 29.5 billion in 2020. 19 billion of these devices will be installed in North America in 2020 (IDC). The number of IoT devices installed in cities will increase by more than 5 billion in the next four years (BI).
(3) The IoT will be primarily an enterprise market: In 2018, the IoT installed base will be split 70% in the enterprise and 30% in the consumer market, but enterprises will account for 90% of the spending (IDC).
(4) Over the next few years, North America will still be the focal point for the IoT: The IoT has a large potential in developing economies, but it will have a higher overall value impact in advanced economies because of the higher value per use.
(5) The telecommunication industry leads other sectors in IoT investments: The Telecommunications, banking, utilities, and securities/investment services industries are the leading sectors investing in IoT in 2015 (IDC)
(6) IoT adoption is gaining momentum worldwide: 36% of companies in North America have IoT initiatives in 2015 (IDC).
(7) Costs and customers are the key drivers of IoT investments: Lower operational costs and better customer service and support lead the list of significant drivers of current IoT initiatives. In large companies, business process efficiency/operations optimization and customer acquisition and/or retention also top the list (IDC).
(8) Security, culture change, determining priorities, and optimizing ROI are key IoT concerns: Security issues top the list of current barriers to IoT adoption (especially with larger companies), followed by funding the initial investment at the scale needed, determining the highest priority use cases, and changing business processes (IDC).
(9) Microsoft leads the IoT market
The top 5 vendors mentioned as the IoT provider companies “plan to work with within the next 2 years” are: Microsoft, AT&T, Verizon, Cisco, and IBM. For large companies (more than 1000 employees), Microsoft and Cisco lead the list (IDC).
See on Scoop.it – Internet of Things – Company and Research Focus