How much is the Internet of Things worth?
Researching the value of the Internet of Things, International Data Corporation (IDC) expects IoT technology and services spending to generate global revenues of $4.8 trillion in 2012 and $8.9 trillion by 2020.
The research and advisory group expects growth at a compound annual rate (CAGR) of 7.9%.
The Internet of Things (IoT) represents a new construct in the information and communications technology (ICT) world, and provides big potential for new streams of revenue and new customers, the IDC said.
“The momentum of the Internet of Things is driven by a number of factors. There is no doubt that business and consumer demand exists and will continue to expand for IoT solutions,” said Vernon Turner, senior VP of IDC’s Enterprise Infrastructure, Consumer, Network, Telecom, and Sustainability Research.
“I expect the current IoT use cases are just the tip of the iceberg.”
Some enablers to the rise of IoT include:
- Ongoing development of smart cities, cars, and houses
- Enhanced connectivity infrastructure
- An increasingly connected culture
The IDC notes that there are still several factors inhibiting growth of this market including a lack of awareness and other IT/mobility priorities on the demand side.
Despite these challenges, IDC expects the installed base of the Internet of Things will be approximately 212 billion “things” globally by the end of 2020.
This will include 30.1 billion installed “connected (autonomous) things” in 2020. This is largely driven by intelligent systems that will be installed and collecting data – across both consumer and enterprise applications – by the end of the forecast period.
“It is important to remember that while the market for the Internet of Things is still in its infancy, there is a long legacy of autonomous wired connected things,” said Carrie MacGillivray, Program VP, Mobile Services, M2M & Network Infrastructure.
“The enabler for increased growth over the forecast period is the pervasiveness of wireless connectivity and ubiquitous access to the Internet regardless of location.”
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