Internet of Things to be a $7 Trillion Industry by 2020

SUMMARY: The worldwide market for Internet of things will develop more than triple from US$1.9 trillion in 2013 to US$7.1 trillion in 2020, as per figures from IDC.

Image: Smarthouse Illustration

Image: Smarthouse Illustration

Over the coming years, IDC expects product offerings will be differentiated and competition for the most part will heap on, especially around comprehensive solution offerings that infuse smart analytics and applications

IDC characterizes the internet of things as a network of networks of uniquely identifiable endpoints (or ‘things’) that convey without human interaction utilizing IP integration — whether locally or universally.

The research company predicts that the introduction base of internet of things unit will develop at 17.5 percent CAGR over the forecast period to 28.1 billion in 2020.

It evaluates that, as of the end of 2013, there were 9.1 billion units introduced. The research company recognizes the challenges faced as competition priorities in developing regions, global versatility, protection and lack of standards as well as a an ecosystem for developments.

“The worldwide IoT market is exploding, and IDC’s research examines the full breadth of its ecosystem, including intelligent and embedded systems shipments, connectivity services, infrastructure, purpose-built IoT platforms, applications, security, analytics, and professional services,” added Carrie MacGillivray, Program Vice President, Mobile Services, IoT, and Network Infrastructure at IDC.

Consumers are more and more coming in contact with connected smart devices, right from cars, houses to work. With the advent of smartphone, full-time connectivity is now becoming a way of life, making the internet of things more of a compelling proposition.

According to the findings 43 percent of US broadband homes have already invested in a smart home package that includes safety and security features and is slowly changing consumers in France, UK, Germany and Belgium.

The IoT doesn’t just end at smarthouse, it is slowly affecting global businesses too.

In April, Microsoft began to strategize for supporting organizations embrace the internet of things with the limited public purview of the Microsoft Azure Intelligent Systems Service.

The new cloud-based service permits clients to interface, manage, capture and transform machine-generated data from sensors and service, regardless of the OS or platform they are using.

“Through the Internet of Your Things strategy, retailers can leverage Windows Embedded and the Microsoft Azure cloud platform – as well as software such as Dynamics CRM or Dynamics ERP – to capture and analyse the data produced by these traditional devices,” Steve Dunbar, intelligent systems lead, EMEA at Microsoft told OnWindows.

Coca-Cola Amatil, a beverage producer in the Asia-Pacific, implemented the framework from Microsoft, and digital marketing agency TKM9 to make an immersive experience at POS Locations. Sanjay Ravi, Managing Direction explains how the IoT is driving a change in the manufacturing industry “Automotive manufacturers, for example, can communicate with customers when they are in their vehicle through a two-way in-car platform to provide value-added services, using vehicle related, location-specific, and consumer-context information, or by equipping a tyre with a sensor, instead of selling the product, manufacturers can sell the miles their customers drive on it.

“Another example is the smart TV where manufacturers can also sell services through the product and provide a rich connected experience.”

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

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