- The global IoT market will grow from $157B in 2016 to $457B by 2020, attaining a Compound Annual Growth Rate (CAGR) of 28.5%.
- Discrete Manufacturing, Transportation and Logistics, and Utilities will lead all industries in IoT spending by 2020, averaging $40B each.
- Bain predicts B2B IoT segments will generate more than $300B annually by 2020, including about $85B in the industrial sector.
- Internet Of Things Market To Reach $267B By 2020 according to Boston Consulting Group.
The last twelve months of Internet of Things (IoT) forecasts and market estimates reflect enterprises’ higher expectations for scale, scope and Return on Investment (ROI) from their IoT initiatives. Business benefits and outcomes are what drives the majority of organizations to experiment with IoT and invest in large-scale initiatives. That expectation is driving a new research agenda across the many research firms mentioned in this roundup. The majority of enterprises adopting IoT today are using metrics and key performance indicators (KPIs) that reflect operational improvements, customer experience, logistics, and supply chain gains. Key takeaways from the collection of IoT forecasts and market estimates include the following:
- The global Internet of Things (IoT) market is projected to grow from $2.99T in 2014 to $8.9T in 2020, attaining a 19.92% Compound Annual Growth Rate (CAGR). Industrial manufacturing is predicted to increase from $472B in 2014 to $890B in global IoT spending. Healthcare and life sciences are projected to increase from $520B in 2014 to $1.335T in 2020, attaining a 17% CAGR. Source: Statista, Size of the Internet of Things market worldwide in 2014 and 2020, by industry (in billion U.S. dollars).
- The global IoT market will grow from $157B in 2016 to $457B by 2020, attaining a Compound Annual Growth Rate (CAGR) of 28.5%. According to GrowthEnabler & MarketsandMarkets analysis, the global IoT market share will be dominated by three sub-sectors; Smart Cities (26%), Industrial IoT (24%) and Connected Health (20%). Followed by Smart Homes (14%), Connected Cars (7%), Smart Utilities (4%) and Wearables (3%). Source: GrowthEnabler, Market Pulse Report, Internet of Things (IoT), 19 pp., PDF, free, no opt-in.
- Bain predicts B2B IoT segments will generate more than $300B annually by 2020, including about $85B in the industrial sector. Advisory firm Bain predicts the most competitive areas of IoT will be in the enterprise and industrial segments. Bain predicts consumer applications will generate $150B by 2020, with B2B applications being worth more than $300B. Globally, enthusiasm for the Internet of Things has fueled more than $80B in merger and acquisition (M&A) investments by major vendors and more than $30B in venture capital, according to Bain’s estimates. Source: Bain Insights: Choosing The Right Platform For The Internet Of Things
- The global IoT market is growing at a 23% CAGR of 23% between 2014-2019, enabling smart solutions in major industries including agriculture, automotive and infrastructure. ― Key challenges to growth are the security and scalability of all-new connected devices and the adherence to open standards to facilitate large-scale monitoring of different systems. Source: Export opportunities of the Dutch ICT sector to Germany (25-04-17), PDF, 95 pp., no opt-in
- $6T will be spent on IoT solutions between 2015 and 2020 according to PwC. IoT investments by businesses will grow from $215B in 2015 to $832B in 2020, while consumer spending on IoT solutions will rise from $72B to $236B. Source: PwC, Leveraging the Upcoming Disruptions from AI and IoT, 20 pp., PDF, free, no opt-in
- Discrete Manufacturing, Transportation and Logistics, and Utilities will lead all industries in IoT spending by 2020, averaging $40B each. Improving the accuracy, speed, and scale of supply chains is an area many organizations are concentrating on with IoT. IoT has the potential to redefine quality management, compliance, traceability and Manufacturing Intelligence. Business-to-Consumer (B2C) companies are projected to spend $25B on IoT in 2020, up from $5B in 2015. The following graphic compares global spending by vertical between 2015 and 2020. Source: Statista, Spending on the Internet of Things worldwide by vertical in 2015 and 2020 (in billion U.S. dollars).
- Manufacturing dominates the growth of IoT network connections in the last year, growing 84%. Verizon’s annual study of IoT adoption finds manufacturing dominating network connection growth followed by energy & utilities, transportation & distribution, and smart cities.Source: Verizon State of the Market: Internet of Things 2017 Making way for the enterprise.
- Accenture estimates the IIoT could add $14.2T to the economy by 2020. The global market for Industrial Internet of Things (IIoT) is projected to grow at a 7.3% CAGR through 2020. Source: Pete Wassell (Augmate): AR Smart Glasses and the Industrial IoT
- By 2020, 50% of IoT spending will be driven by discrete manufacturing, transportation, and logistics, and utilities BCG predicts that IoT will have the most transformative effect on industries that aren’t technology-based today. The most critical success factor all these use cases depend on secure, scalable and reliable end-to-end integration solutions that encompass on-premise, legacy and cloud systems, and platforms.Source: Internet Of Things Market To Reach $267B By 2020.
- The hottest application areas for IoT in manufacturing include Industrial Asset Management, Inventory and Warehouse Management and Supply Chain Management.In high tech manufacturing, Smart Products, and Industrial Asset Management are the hottest application areas. The following Forrester heat Map for 2017 shows the fastest growing areas of IoT adoption by industry. Source: IoT Opportunities, Trends, and Momentum Robert E Stroud CGEIT CRISC.
- B2B spending on IoT technologies, apps and solutions will reach €250B ($296.8B) by 2020 according to a recent study by Boston Consulting Group (BCG). IoT Analytics spending is predicted to generate €20B ($23.7B) by 2020. Between 2015 to 2020, BCG predicts revenue from all layers of the IoT technology stack will have attained at least a 20% Compound Annual Growth Rate (CAGR). B2B customers are the most focused on services, IoT analytics, and applications, making these two areas of the technology stack the fastest growing. By 2020, these two layers will have captured 60% of the growth from IoT. Source: Internet Of Things Market To Reach $267B By 2020.
- Improving customer experiences (70%) and safety (56%) are the two areas enterprises are using data generated from IoT solutions most often today. Gaining cost efficiencies, improving organizational capabilities, and gaining supply chain visibility (all 53%) is the third most popular uses of data generated from IoT solutions today. 53% of enterprises expect data from IoT solutions to increase revenues in the next year. 53% expect data generated from their IoT solutions will assist in increasing revenues in the next year. 51% expect data from IoT solutions will open up new markets in the next year. 42% of enterprises are spending an average of $3.1M annually on IoT. Source: 70% Of Enterprises Invest In IoT To Improve Customer Experiences.
- McKinsey Global Institute estimates IoT could have an annual economic impact of $3.9T to $11.1T by 2025. Their forecast scenario includes diverse settings and use cases including factories, cities, retail environments, and the human body. Factories alone could contribute between $1.2T to $3.7T in IoT-driven value. Source: McKinsey & Company, What’s New With The Internet of Things?
- By 2020, the installed base of the Internet of Things devices is forecast to grow to almost 31B worldwide. By 2025 the installed base of IoT devices will be over 75.4B devices. Source: Statista, Internet of Things (IoT) connected devices installed base worldwide from 2015 to 2025 (in billions).
- According to IDC by 2018, investments in Operational Sensing through IoT and situational awareness via analytics will deliver 30% improvement in Critical Process Cycle Times. IDC also predicts by 2019, at Least 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge of, the network. Source: IDC FutureScape: Worldwide Internet of Things 2017 Predictions, 7 pp., PDF, no opt-in.
- Cisco predicts there will be 3.3B Machine-to-Machine (M2M) global connections by 2021, increasing from 1.5B in 2018. In 2017, Cisco predicts 1.1B M2M connections will be in place globally. M2M’s rapid adoption is the result of manufacturing, industry & logistics and utilities all adopting IoT-based strategies across broader segments of operations through the forecast period. Source: Statista, Number of Machine-to-Machine (M2M) connections worldwide from 2014 to 2021 (in billions).
- Gartner Says 8.4B Connected “Things” will be in use in 2017, Up 31% from 2016. Total spending on endpoints and services will reach almost $2T in 2017. In 2017 businesses will drive $964B in global spending. Consumer applications will amount to $725B in 2017. By 2020, hardware spending from both segments will reach almost $3T. Source: Gartner Says 8.4 Billion Connected “Things” Will Be in Use in 2017, Up 31 Percent From 2016.
- By 2022, Pressure and Temperature sensors will account for 62% of all globally enabled IoT sensors. Light sensors (17.27%), Chemical (10.21%), Motion (8.35%) and other sensors (1.97%) are the remainder of the market. The following graphic provides a global IoT market forecast by sensor type in Source: Statista, Projected global Internet of Things enabled sensors market in 2022, by segment.
- The global IoT market is projected to grow to $661.74B by 2021. The Industrial IoT market is expected to grow to $123.8B by 2021, and the IoT Cloud Market is estimated to grow to $7.15B by Source: IoT Growth: A Forecast.
- WiFi and Bluetooth low energy (BLE) are top contenders as preferred IoT connectivity mechanisms. However, long-range, wide-area networks (LoRaWAN) and narrowband IoT (NB-IoT) are equally poised to give a tough fight to WiFi and BLE vendors. Data analytics, correlation, and pattern recognition capabilities at point-of-data creation prove to be a key decision factor in vendor evaluation. Source: IDC Survey Reveals Significant Impact of Internet of Things Initiatives on IT Infrastructure.
- Global IoT spending will experience a compound annual growth rate (CAGR) of 15.6% over the 2015-2020 forecast period, reaching $1.29T in 2020. The industries forecast to make the largest IoT investments in 2016 are Manufacturing ($178B), Transportation ($78B), and Utilities ($69B). Consumer IoT purchases, the fourth largest market segment in 2016, will become the third largest segment by 2020. Source: Internet of Things Spending Forecast to Grow 17.9% in 2016 Led by Manufacturing, Transportation, and Utilities Investments, According to New IDC Spending Guide.
- IDC predicts that by 2021, global IoT spending is expected to total nearly $1.4T in hardware, software, services, and connectivity that enable the IoT. IoT use cases gaining the greatest investments in 2017 include Manufacturing Operations ($105B), freight monitoring ($50B), and production asset management ($45B). Please see the source document for additional details on IDC’s forecast. Source: IDC, Worldwide Spending on the Internet of Things Forecast to Reach Nearly $1.4 Trillion in 2021, According to New IDC Spending Guide.
- Gartner predicts by 2020, more than 65% of enterprises (up from 30% today) will adopt IoT products. By 2020, more than 10% of new IoT products from traditional industries will be headed by the CIO. Through 2020, a lack of data science specialists will inhibit 75% of organizations from achieving the full potential of IoT. Source: Gartner, Leading the IoT, Gartner Insights on How to Lead in a Connected World, PDF, 29 pp., free, no opt-in.
- 72% of the companies will increase their IoT spending in the next three years. A solid amount of companies plan to keep this increase between 10% and 30%, while some of them are willing to raise spending by more than 30%. Source: Cognizant Trend Study: Digital Industrial Transformation with the Internet of Things: How can European companies benefit from IoT?
- According to IDC, worldwide spending on the Internet of Things (IoT) is forecast to reach $772.5B in 2018, an increase of 14.6% over the $674B that will be spent in 2017. IoT hardware will be the largest technology category in 2018 with $239B going largely toward modules and sensors along with some spending on infrastructure and security. Services will be the second largest technology category, followed by software and connectivity. Source: IDC Forecasts Worldwide Spending on the Internet of Things to Reach $772 Billion in 2018.
GrowthEnabler, Market Pulse Report, Internet of Things (IoT), 19 pp., PDF, free, no opt-in
IDC, Worldwide Spending on the Internet of Things Forecast to Reach Nearly $1.4 Trillion in 2021, According to New IDC Spending Guide
Stanford University Course EE392B, Industrial IoT: Applications Overview April 4, 2017, Dimitry Gorinevsky