Spending on “Internet of Things” (IoT) technology and services is set to generate global revenues of $8.9 trillion in 2020, up from $4.8 trillion in 2012, according to new research from IDC.
“The momentum of the Internet of Things is driven by a number of factors,” said Vernon Turner, senior vice president of IDC's enterprise infrastructure, consumer, network telecoms and sustainability research. “There is no doubt that business and consumer demand exists and will continue to expand for IoT solutions. I expect the current IoT use cases are just the tip of the iceberg.”
The market-research company says a number of factors are spurring IoT growth, including the ongoing development of smart cities, cars and houses, better connectivity infrastructure and an increasingly connected culture.
Nevertheless, the research also points to a number of challenges for IoT companies in the years ahead.
On the supply side, for instance, there remains a lack of standards and global scalability, while the ecosystem for application development is still nascent.
Challenges on the demand side include lack of awareness and the prioritization of other IT and mobility services.
Despite these challenges, IDC predicts there will be approximately 30.1 billion “connected (autonomous) things” globally in 2020, driven by the take-up of intelligent systems able to collect and analyze data.
“It is important to remember that while the market for the Internet of Things is still in its infancy, there is a long legacy of autonomous wired connected things,” said Carrie MacGillivray, program vice president of mobile services, M2M and network infrastructure.
“The enabler for increased growth over the forecast period is the pervasiveness of wireless connectivity and ubiquitous access to the Internet regardless of location,” added MacGillivray.