IOT Market size to reach $ 2 Trillion by 2020 and $ 6 Trillion by 2025
The Internet of Things is a growing market. The revenue potential from services related to monitoring, managing and steering smart objects is very significant. To users of smart objects – such as smart cars to appliances , houses, commodities and medical devices – it holds the promise of greater convenience and higher efficiency.
The Internet of Things refers to the networking of physical objects through the use of embedded sensors, actuators, and other devices that can collect or transmit information about the objects. The data amassed from these devices can then be analyzed to optimize products, services, and operations. Perhaps one of the earliest and best-known applications of such technology has been in the area of energy optimization: sensors deployed across the electricity grid can help utilities remotely monitor energy usage and adjust generation and distribution flows to account for peak times and downtimes. But applications are also being introduced in a number of other industries.
The market for Internet of Things devices, products, and services appears to be accelerating toward just such an inflection point, in view of four critical indicators.
- Innovation in Technology
- Setting up of New Standards
Unfortunately the industry is very much fragmented and having diversified supply chain management from hardware, software to service providers. For the market to pick up steady growth, We need few leaders who can integrate services.
As per IDC, The IoT ( Internet of Things ) market, valued at $655.8 billion in 2014, is set to grow at a CAGR of 16.9 %.
IDC further added “Devices, connectivity, and IT services will make up the majority of the IoT market in 2020. Together, they are estimated to account for over two-thirds of the worldwide IoT market in 2020.”
Even Gartner predicted the future as ” “The Internet of Things will include 26 billion units installed by 2020. IoT product and service suppliers will generate incremental revenue exceeding $300 billion, mostly in services, in 2020. It will result in $1.9 trillion in global economic value-add through sales into diverse end markets.”
What Mckinsey has to say about IOT Market “We estimate the potential economic impact of the Internet of Things to be $2.7 trillion to $6.2 trillion per year by 2025 through use in a half-dozen major applications that we have sized. The largest impacts among sized applications would be in health care and manufacturing. Across the health-care applications we analyzed, Internet of Things technology could have an economic impact of $1.1 trillion to $2.5 trillion per year by 2025.”
The Big Influential players will be Cisco, Ericsson, Intel, GE, AT&T & few more.
This is just the glimpse of IOT Market. More to follow in coming post where in we will segregate the Market size by IOT and M2M. ( Under development )