International Data Corporation (IDC) has analyzed the worldwide opportunity for the flourishing “Internet of Things” (IoT) market, and predicts that it will generate up to USD 8.9 Tn by the year 2020.
The Internet of Things (IoT) is a scenario in which objects, animals or people are provided with unique identifiers and the ability to automatically transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT includes anything from smart phones and long distance communication to internet-enabled televisions and refrigerators.
Growing at a CAGR of 7.9%, the IoT market generated USD 4.8 Tn in 2012. The drivers leading to this include the development of smart cities, cars, and houses; better connectivity infrastructure and an increasingly connected culture.
“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 Vice President 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.”
Although clearly the Internet is making the world a smaller place and there’s a high demand for the IoT, there are many factors that are retarding its growth (even if by a small magnitude). These include challenges like lack of standards, global scalability, and a nascent ecosystem for application development, on the supply side, and lack of awareness and other IT/mobility priorities on the demand side. Yet according to IDC, the installed base of the Internet of Things will be approximately 212 Bn “things” globally by the end of 2020.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology market. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries.
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