According to IDC, the Internet of Things market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020.
The global Internet of Things market is expected to grow to $1.7 trillion in 2020, up from $655.8 billion in 2014, as more devices become connected and a bevy of vendors and enterprises begin to embrace the opportunities. According to the latest report from International Data Corporation (IDC), the market will rise at a CAGR of 16.9%.
The research firm projects that smart devices, connectivity and IT services will make up the majority of the IoT over the next five years. Together, they are estimated to account for over two-thirds of the worldwide IoT market in 2020 with modules and sensors alone representing 31.8% of the total.
By 2020, IDC anticipates that IoT purpose-built platforms, application software and “as a service” offerings will represent a much larger percentage of revenue as the market matures. IDC also goes on to note that the number of IoT endpoints will increase from 10.3 million last year to more than 29.5 million in 2020.
“While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets,” explains Vernon Turner, SVP and IoT research fellow at IDC. “The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo.”
The Asia Pacific region captured 58.3% of the revenue from IoT in 2014 and is forecasted to shrink slightly to 51.2% in 2020. IDC reveals that, in China, the combination of a growing population using mobile devices and a push to improve manufacturing efficiency could potentially drive an increase in new gadgets and IoT standards. Meanwhile, North America is expected to maintain revenue share of just more than a quarter (26%) over the five-year period, while Western Europe is projected to jump from 12% to 19.5%.