StatsAd Industry MetricsInternet of Things Spending to Reach 1.7 Trillion by 2020

Internet of Things Spending to Reach 1.7 Trillion by 2020

The Internet of Things market is estimated to reach 1.7 trillion globally by 2020, according to a new study by International Data Corporation.

The worldwide Internet of Things (IoT) market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020, according to research company International Data Corporation (IDC).

IDC defines the IoT as a network of identifiable endpoints that communicate using IP connectivity without human interaction, including smart appliances, automated public transit and remote health monitoring, among others. The company predicts that by 2020, devices, connectivity and IT services will represent more than two-thirds of the worldwide IoT market, with devices alone accounting for 31.8 percent of the total

While wearables, like the Apple Watch, remain the most visible faction of the IoT, the real opportunity remains in the enterprise and public sector markets, since the majority of consumers can’t yet afford pricey connected devices, according to Carrie MacGillivray, vice president of IoT and mobile for IDC.

“The largest opportunity is the seemingly endless number of endpoints that businesses and governments can connect. For consumers, we have a finite amount of disposable income and appetite for devices. While the connected home represents an interesting area, there are limits to the growth potential, especially over the next 5 to 6 years,” MacGillivray explains. “Think of how many of your friends have connected light bulbs today? Nest thermostats? Connected cars? Smart watches? It’s going to take some time for any broad adoption.”

Meanwhile, IDC also estimates that IoT purpose-built platforms, application software, and “as a service” offerings will soon make up a larger percentage of revenue.

The phrase IoT reflects the growing number of smart, connected devices that shift consumer behavior and present new opportunities for digital marketers. Major industry players are looking to connect more and more devices. For example, last week, Google introduced a communication system called Weave that will help devices talk to each other using a common language, while Amazon recently unveiled Internet-connected Dash Buttons.

IDC’s new forecast is part of the company’s three completed reports defining the IoT market and identifying opportunities: the Worldwide Internet of Things Taxonomy 2015, the Worldwide Internet of Things Forecast 2015-2020, and the Worldwide IoT Spending Guide by Vertical.

To get more insights, you can request the full report from IDC.

Homepage image via Shutterstock.

Whitepapers

US Mobile Streaming Behavior

Whitepaper | Mobile US Mobile Streaming Behavior

3y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups

Whitepaper | Actionable Analysis Winning the Data Game: Digital Analytics Tactics for Media Groups

3y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Giving a Voice to Your Brand

Whitepaper | AI & Automation Giving a Voice to Your Brand

3y

Giving a Voice to Your Brand

Voice commerce, or conversational commerce, is a major disruptive opportunity in US retail. It opens up the possibility of building deeper relationshi...

View resource
Mobile Messaging Masters

Whitepaper | Mobile Mobile Messaging Masters

3y

Mobile Messaging Masters

Every year the mobile market continues to grow and develop. Cyber Monday 2018 saw $2.2 billion in sales stemming just from smartphones in the United S...

View resource