As the hype over the Internet of Things continues, some new studies predicting the size of the market have emerged. Research firm International Data Corp. (IDC) says that the worldwide market for IoT solutions will grow from $1.9 trillion in 2013 to more than $7 trillion by 2020.
At the same time, ABI Research estimates that the number of developers involved in IoT solutions will reach 1.7 million globally by the end of this year. By 2019, the size of the IoT ecosystem will surpass three million developers, representing approximately 10 percent of all software developers.
IDC defines the Internet of Things as a network of networks of uniquely identifiable endpoints (or “things”) that communicate without human interaction using IP connectivity – be it “locally” or globally.
IDC expects that 28 billion devices will be connected through the IoT by 2020. Consumers continue to experience and embrace IoT in their homes, such as wireless thermostats like the Nest, in their cars, and in many other aspects of their daily life.
Globally, individuals are developing a high affinity for full-time connectivity, which makes consumer IoT a compelling proposition. Businesses are intrigued by the efficiencies, business process implications, and revenue opportunities IoT solutions can generate.
“Businesses are taking the necessary steps to gain a deeper understanding of IoT and the overall value,” says Vernon Turner, senior vice president of IDC’s Enterprise Infrastructure, Consumer, Network, Telecom and Sustainability Research.
“Technology vendors are evolving their solutions in a supply-driven market that’s edging toward becoming a more demand-driven market.”
IDC’s research also reveals that developed regions garner the majority of the IoT market, representing approximately 90 percent of installed units.
In addition, IDC predicts that worldwide IoT installed base will experience a compound annual growth rate of 17.5 percent until 2020.
ABI Research practice director Dan Shey says that the IoT may actually represent the beginning of a hardware renaissance.
“After all the talk about hardware being irreversibly commoditized and software ‘eating the world’ we may be actually soon witnessing a countertrend in the technology industry, driven by the consumer IoT,” he says. “Consumers will shun away from anything that is not inspiringly designed and robustly produced, so any consumer-facing IoT play needs to deliver on both of those fronts if it’s to have any traction.”