The Internet of Things is quickly becoming the Internet of Everything. As connectivity moves to more things like cars and B2B applications, the potential for monetizing services and the data produced by them continues to grow.
The total number of IoT connections is expected to grow from $6 billion in 2015 to $27 billion in 2025, according to Machina Research’s annual report on the global growth of the market. Spending on IoT, or IoE as it may be, is now expected to reach $3 trillion by 2025, a significant increase from the $750 billion in 2015, according to the report.
This exciting growth will certainly come with some pains, but that will only open more opportunities for those that provide IoT solutions.
By 2025, IoT will generate over 2 zettabytes of data (1 zettabyte is equal to about 1 billion terabytes), mostly generated by consumer electronics devices, but it will account for less than 1% of cellular data traffic.
In addition, 11% of connections in 2025 will use Low Power Wide Area (LPWA) connections, such as Sigfox, LoRa, and LTE-NB1.
“IoT growth will be very strong over the next 10 years. Short-range technologies will dominate, and new LPWA technologies will become increasingly important,” Matt Hatton, CEO of Machina Research told InformationWeek in an interview.
“It’s a $3 trillion market, which is very substantial, simply because IoT is starting to incorporate so much of what we might previously have thought of as IT. As usual China and the US vie to be the biggest markets.”
Of the $3 trillion figure, $1.3 trillion is projected to be accounted for by revenue directly derived from end-users in the form of devices, connectivity, and application revenue.
The remainder will come from upstream and downstream IoT-related sources, such as application development, systems integration, hosting, and data monetization.
Hatton explained IT departments need to know that IoT will likely be transformational to their company. It will be a major competitive differentiator in the future, or rather, the information it will provide will allow great competitive differentiation.
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