Recent research from IDC predicts that the global Internet of Things market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020. This confirms that IoT technology continues to be integrated within a cross-section of industries. The sectors will be mainly made up of IT services, connectivity and devices used to access IoT. Alongside this, there will be an increase in the number of platforms and software used to support the IoT.
The estimated growth of IoT will primarily be due to a substantial rise in the number of connected devices and objects that are connected to the Internet, predicted by Cisco to reach 50 billion by 2020. The growing use of cloud services is also essential to the success of this industry, meaning IoT connected devices can access vital information and data in real-time. The platforms and services supporting the IoT will expand, to make up a significant proportion of the industry’s revenue and contributing to its overall growth. Another factor behind the growth of IoT is the rising number of mobile device users worldwide.
The manufacturing industry will benefit immensely from the increased use of IoT. It will allow manufacturers to improve efficiency rates through providing real time information on systems and practices to identify areas for development and improve decision-making. IoT in the manufacturing industry is expected to more than double from $42.2 billion to $98.8 billion by 2018. An example of IoT use in the manufacturing sector is the introduction of smart meters in control systems, building and maintaining links between separate islands of automation.
The IoT will also be prevalent in the retail industry, supporting retailers to increase sales and attract new customers. An example of this will be the use of digital signage, which can be controlled and monitored through the use of IoT, creating rich digital experiences for the consumer. This is demonstrated through predictions that the digital signage sector will grow to around $27.5 billion, by 2018. The increase in the use of IoT in the retail industry is also driven by its ability to improve the nurturing of businesses relationships with customers, by allowing them to collect specific data about the customer and how they’re using their connected devices.
The fast pace of the growth can be explained by the rate at which technology is advancing, resulting in a decline in the cost of implementing IoT into business practices. The cost savings that the IoT offers are also seen as a reason for its fast growth, however the increased growth means the IoT workload will be upped by 750%, as billions of connected devices produce masses of data.
At Web Associates LLC, recognising the need to manage the costs of the abundance of connected devices is not only crucial for businesses to get the most out of its capabilities, but is essential to ensure the success of the IoT industry.
Thanks to Ben Mendoza for the post !