Framingham, Massachusetts, Nov. 7, 2014: Some more good news for the Internet of Things (IoT) sector. New research by market intelligence firm International Data Corporation (IDC) says the worldwide IoT market will grow from the US $1.3 trillion (2013) to US $3.04 trillion in 2020 with a compound annual growth rate (CAGR) of 13 per cent. And, there will be 30 billion “connected” things by 2020.
IDC said in a statement that its newly released IoT ecosystem forecast provides the much needed clarity, defining the hardware, software, services, connectivity, and security that make up the evolving IoT ecosystem.
IDC defines the Internet of Things as a “network of networks” of uniquely identifiable endpoints (or “things”) that communicate without human interaction using IP connectivity, local or global. IDC’s idea of the IoT ecosystem includes intelligent systems, network equipment, connectivity services, data integration, and often other types of software, applications, services and security.
“The opportunities presented by the 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, Enterprise Infrastructure, Consumer, Network, Telecom and IoT Research. “We’re still in the early stages of maturation and IoT represents unparalleled opportunity in government, consumer, and enterprise environments.”
IDC says the homogeneity of connectivity needs had allowed the North American market to sidestep border-driven IoT adoption challenges and set the groundwork for IoT market growth. In addition, government mandates and more openly eco-conscious cultures will drive Western Europe and Asia/Pacific to outpace North America in terms of IoT revenues and installed base through 2020.
“There will be no one leader in this market,” said Carrie MacGillivray, Vice President, IoT and Mobile Service & Infrastructure. “The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions.”
Additional findings from IDC’s new forecast include the following:
- In the IoT market, a collection of vendors, service providers and systems integrators must co-exist and integrate products and solutions to realise 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.
The IDC study, Worldwide Internet of Things 2014-2020 Forecast analyses the IoT market at a worldwide level and provides forecasts for IoT installed base and revenue opportunity by technology segment as well as by region. It also provides an update to the worldwide IoT market outlook published in Worldwide and Regional Internet of Things (IoT) 2014-2020 Forecast: A Virtuous Circle of Proven Value and Demand (IDC #248451, May 2014).
You may also want to read: Growth of IoT means business worth billions of dollars for verticals: IDC
Image Credit: IDC
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