One of the strongest growth opportunities for communications service providers is in the Internet of Things, as a new forecast from IDC illustrates.
The worldwide Internet of Things (IoT) market will grow at a 16.9 percent compound annual growth rate (CAGR) from 2014-2020 as revenues rise from $655.8 billion to $1.7 trillion, IDC says. The prediction comes as part of three IoT reports IDC released June 2.
IDC’s Internet of Things Forecast
Devices, connectivity and IT services will account for more than two-thirds of IoT market revenues come 2020, according to IDC. Devices, such as modules and sensors, will account for 31.8 percent of the market. Purpose-built IoT platforms, application software and “as a service” offerings will gain and account for larger shares of overall IoT market revenues over the course of the period, IDC expects.
“While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets,” Vernon Turner, IDC senior vice president and research fellow (IoT), Enterprise Systems was quoted in IDC’s press release.
Turner noted that IoT is having a “ripple effect” and is disrupting the IT status quo because companies are rethinking traditional IT business models, processes, services and products.
IDC released three IoT market research reports: the IDC Worldwide Internet of Things Taxonomy, 2015; Worldwide Internet of Things Forecast, 2015–2020; and the Worldwide IoT Spending Guide by Vertical.
Autonomous network connectivity is the key distinguishing criterion in IDC’s taxonomy of IoT technology. Hence, devices that require human interaction to connect to networks – smartphones, tablets, etc. – aren’t considered IoT devices, even though apps and functions increasingly establish connections and perform tasks without user interaction, or even awareness.
“IDC’s Internet of Things taxonomy is intended to provide a framework to categorize and relate technology and industry-specific aspects of this burgeoning market,” Carrie MacGillivray, IDC program vice president, IoT and Mobile research, explained.