The global Internet of Things (IoT) market will increase 13% to just over $3 trillion in 2020, a new IDC forecast has revealed. During this timespan, the number of installed and connected devices is expected to surpass 30 billion.
IDC defines the IoT as a “network of networks of uniquely identifiable endpoints (or ‘things’) that communicate without human interaction using IP connectivity – be it ‘locally’ or globally.” This connected ecosystem includes everything from intelligent systems and network equipment to data integration and other types of software, applications, services and security.
As IoT moves beyond the hype and promise, a variety of vendor strategies and key players will emerge to find success in meeting customers’ needs as well as growing new revenue streams from this net new market opportunity, IDC points out.
“The opportunities presented by IoT are driving widespread attention among both traditional and non-traditional ICT vendors looking to take advantage of emerging revenue opportunities,” explained Vernon Turner, IDC Senior Vice President. “We’re still in the early stages of maturation and IoT represents unparalleled opportunity in government, consumer, and enterprise environments.”
The research firm notes that homogeneity of connectivity needs has enabled the North American market to sidestep border-driven IoT adoption challenges and set the groundwork for IoT market growth. In addition, government mandates and more openly eco-conscious cultures will drive the Western Europe and APAC regions to outpace North America in terms of IoT revenues and installed base through 2020.
“There will be no one leader in this market,” added Carrie MacGillivray, Vice President, IoT and Mobile Service & Infrastructure. “The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions.”
Evident by the emergence of recent [Atmel powered] Kickstarter and Indiegogo campaigns, startups are working feverishly to carve out their strategies to capitalize on this market and will ultimately drive the innovation pace of larger vendors. Gartner recently revealed that by 2017, over half of the IoT solutions on the market will originate from startups that are less than three years old.
IDC isn’t the only research firm anticipating an uptick for the Internet of Things market. In fact, Gartner predicts that there will be 26 billion installed units by 2020, up from 0.9 billion just five years ago. The firm also believes the IoT processor, sensor and communications markets are set for 30% growth over the next five years.
Meanwhile, Strategy Analytics has stated that there will be 4.3 connected devices for every person on earth come 2020, when 33 billion devices are expected to be in use throughout the world. Cisco has also been an aggressive advocate of IoT, noting that not only are 13.5 billion devices are connected today, but there will be 50 billion device connections by the end of this decade.
While some projections are a bit more optimistic than others, it is without question the IoT will surely go mainstream over the next couple of years. As we’ve previously discussed on Bits & Pieces, the rapidly evolving IoT represents perhaps the greatest potential growth market for semiconductors throughout this time period. And, that is precisely why Atmel remains focused on designing the absolute lowest power sipping products, particularly with regards to MCUs. Whether it’s bringing wireless capabilities to an embedded design or securely connecting an IoT application, we’re making it easier than ever to create the smarter world of tomorrow.
Don’t forget, you can experience all the latest in IoT firsthand this week at Electronica 2014! From November 11-14th, head on over to Messe München where you will find a plethora of smart solutions throughout the the Atmel booth — located in Hall A5, Booth 542.