IDC: Internet of Things Market Set to Explode
The worldwide Internet of Things market will grow to $1.7 trillion in 2020 from $655.8 billion in 2014, researchers at IDC say, as more devices come online and more platforms and services take shape around them. The compound annual growth rate (CAGR) for the market through 2020 will be a healthy 16.9%, the forecast notes.
Devices, connectivity, and IT services will make up the majority of the IoT market in 2020, according to IDC. Together, they are estimated to account for over two-thirds of the worldwide IoT market in 2020, with devices (modules/sensors) alone representing 31.8% of the total. By 2020, IDC expects that IoT purpose-built platforms, application software, and "as a service" offerings will capture a larger percentage of revenue.
The new forecast is actually one of three recently completed reports defining the IoT market and identifying opportunities: IDC's Worldwide Internet of Things Taxonomy, 2015, Worldwide Internet of Things Forecast, 2015–2020, and the Worldwide IoT Spending Guide by Vertical.
"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," said Vernon Turner, senior vice president and research fellow (IoT), Enterprise Systems. "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."
Of course, we've been noting that there are concerns about security and IoT, especially as security standards are still in their infancy. New devices reaching out to emerging types of networks introduce new ways to attack enterprise networks, a new study by OpenDNS reports.
And, of course, let's not forget that open source is driving IoT forward. We recently interviewed Philip DesAutels, who oversees The AllSeen Alliance, focused on IoT. He is seen above.
DesAutels works with Alliance members to advance the Internet of Everything by building out an open source software framework, AllJoyn, to seamlessly connect a range of objects and devices in homes, cars and businesses. He oversees and guides all aspects of the Alliance, from governance and technology, to the developer community and marketing efforts.
"In five years, I think all of this will be around us everywhere, in everything. Predictions that were made three and four years ago have already come true in terms of the ubiquity of bandwidth, connectivity, the availability of radios, and more. We are going to have a lot of power to orchestrate the experiences that we want.”
“The next phase is going to be the really transformational phase. Systems around you will have a whole lot more information. They’ll be able to deliver a lot more value.”