The ‘Internet of Things’ Will Be The World’s Most Massive Device Market And Save Companies Billions Of Dollars
“Here are a few of the key findings from the BI Intelligence report:
- The Internet of Things will be the largest device market in the world. We estimate that by 2019 it will be more than double the size of the smartphone, PC, tablet, connected car, and the wearable market combined.
- The IoT will result in $1.7 trillion in value added to the global economy in 2019. This includes hardware, software, installation costs, management services, and economic value added from realized IoT efficiencies.
- Device shipments will reach 6.7 billion in 2019 for a five-year CAGR of 61%. Revenue from hardware sales will be only $50 billion or 8% of the total revenue from IoT-specific efforts, as software makers and infrastructure companies will earn the lion’s share.
- The enterprise sector will lead the IoT, accounting for 46% of device shipments this year, but that share will decline as the government and home sectors gain momentum. By 2019, government will be the leading sector for IoT device shipments.
- The main benefit of growth in the IoT will be increased efficiency and lower costs. The IoT promises increased efficiency within the home, city, and workplace by giving control to the user. However, many are hesitant to use devices as security problems are still an issue.
- The IoT lacks a common set of standards and technologies that would allow for compatibility and ease-of-use. There are currently few standards (or regulations) for what is needed to run an IoT device. Consortia that group together global industrial, tech, and electronics companies are involved in an effort to standardize the IoT and solve the most pressing security concerns. “
Here Are The Four Key Elements That Will Make The ‘Internet Of Things’ An Absolutely Massive Market
“Here are the four important factors propelling the IoT forward:
- The cost of internet-connected sensors is coming down: Many IoT devices rely on multiple sensors to monitor the environment around them. The cost of these sensors declined 50% in the past decade, according to Goldman Sachs. We expect prices to continue dropping at a steady rate, leading to an even more cost-effective sensor.
- A lot more money is being poured into the IoT: Large companies like Dell have begun to aggressively open IoT divisions and innovation labs. There have also been a range of IoT acquisitions including Google acquiring Nest and Intel acquiring Basis. In addition, innovative IoT startups, such as IoT cloud-platform provider Electric Imp and smart plug maker Zuli, have received a combined $70 million in funding just this summer.
- Expanded internet connectivity: The International Telecommunication Union (ITU) estimates that currently 40% of the global population is connected to the internet and by 2019, roughly 57% will be connected. This increase in connectivity will lead to a larger base of individuals interested in purchasing IoT devices.
- High adoption of “remotes,” especially smartphones, phablets and tablets: The IoT is heavily reliant on “remotes,” primarily smartphones and tablets that can manage the IoT. Today, smartphones account for 69% of mobile phones sold globally, and their share is still rising as developing nations introduce better wireless infrastructure. “