According to a new report from Strategy Analytics, there will be nearly 12 billion connected devices in use worldwide by the end of 2014. That is equivalent to 1.7 devices for every person on the planet, a ratio which will rise to 4.3 come 2020, when 33 billion devices are expected to be in use.
The report, entitled “Connected World: The Internet of Things and Connected Devices in 2020,” quantifies the scale of the connected device opportunity across the Internet of Things (IoT), smart home, smartphones, PCs, tablets, smart TVs and wearables.
“Back in 2007 PCs accounted for two-thirds of Internet devices — now it’s only 10 percent,” reveals David Mercer, Principal Analyst at Strategy Analytics. “The impact of the Internet on daily lives has increased rapidly in recent years. Huge growth potential still lies ahead, in terms of both the number of devices relying on Internet connectivity and its geographic reach.”
As Strategy Analytics reveals, emerging categories alone will connect an additional 17.6 billion devices to the Internet by 2020, with IoT leading to rapid growth among new categories such as M2M, smart objects, smart grid and smart cities.
Evident by this recent study, a new generation of connected products is well upon us. From smart meters to wearables, we can expect to see an emergence of web and wireless-enabled devices embedded with Atmel | SMART ARM-based microcontrollers.
“The Internet of Things has already connected five billion devices and we are only at the beginning of this revolution,” explains Strategy Analytics Executive Director Andrew Brown. “Smart cities and smart grid are just two of the ways in which the Internet of Things will touch everyone’s lives over the coming years and decades.”
In fact, the Internet of Things is forecasted to become the world’s most massive device market. BI: Intelligence estimates that by 2019, the IoT will account for more than double the size of the smartphone, PC, tablet, connected car, and the wearable market combined.
Additionally, these smart gadgets will result in an additional $1.7 trillion in value to the global economy in 2019, which includes hardware, software, installation costs, management services, and economic value added from realized IoT efficiencies. BI: Intelligence goes on to note that device shipments will reach 6.7 billion in 2019 for a five-year CAGR of 61%.
It is believed that the enterprise sector will lead the IoT pack, accounting nearly half (46%) of device shipments in 2014; however, that share will surely be reduced as the government and smart home markets continue to gain momentum. Government will be the leading sector for IoT device shipments within the next five years, says Business Insider.
Furthermore, during the recent Internet of Things World Forum, Cisco Chief Globalization Officer Wim Elfrink explored the ways in which the IoT will transcend well beyond consumer-centric connections and transform traditional industries with billions upon billions of sensors.
Elfrink said more than 3 billion objects have been digitally connected over the last year and that the number is growing by 300,000 things every hour. “And, one percent of all things that can be connected, are connected,” he added.
Cisco engineers believe that today 13.5 billion devices are connected and predict that by 2020 there will be 50 billion device connections. Elfrink recounted Cisco’s announcement of 10 billion connected things back in 2013, comparing it to 30 years ago, where he said only 3,000 things were connected.
It is without question that the Internet of Things is surging ahead. Whether it’s bringing wireless capabilities to an embedded design or securely connecting an IoT application, Atmel is making it easier than ever to create our smarter world of tomorrow.