The International Data Corporation (IDC) has issued a report – Worldwide Internet of Things Spending by Vertical Market 2014-2017 Forecast , which defines the IT opportunity for all vertical markets that comprise the Internet of Things (IoT) market. The report said the greatest initial growth opportunities available for the consumer, discrete manufacturing, and government vertical sectors.
The new report segments the IoT market as well as provides a forecast that illustrates which vertical industries show the greatest market opportunity over the next several years. The market and forecast is based on internal IDC models, analysis, and survey information, which was used to create segmentation models around the 18 vertical markets that IDC tracks
IDC has recommended vendors take the next step and look at this huge IT opportunity in a more realistic framework. “The Internet of Things market must be understood in terms of vertical markets because the value of IoT is based on individual use cases across all markets,” said Scott Tiazkun , Senior Research Analyst with IDC’s Global Technology and Industry Research Organization. “Successful sales and marketing efforts by vendors will be based on understanding the most lucrative verticals that offer current growth and future potential and then creating solutions for specific use cases that address industry-specific business processes.”
According to the report, the first step to understand how vendors can position themselves will be to understand the components of the IoT/M2M IT ecosphere. Because this is a derivative market, there are many opportunities for vendors to offer parts or product suites that cover the needed IoT IT set. And vendors will have incentive to do so due to rapid growth, which will occur as industries see the convenience, productivity, and efficiency that IoT brings to business processes. Accordingly, while horizontal-focused IT vendors will look to offer IoT solutions that appeal to many industries, there will also be impetus to offer vertical-focused solutions that make IoT tangible for both industries applications (M2M) and consumer needs (B2B2C).
Image Credit: IDC
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