IoT payments market will grow at an average of 75 percent per annum over the next 5 years; reaching $410 billion by 2023, says a new report from Juniper Research. This is up from an estimated $24.5 billion in 2018.
The automotive sector will become the most lucrative IoT platform by 2021, accounting for $63 billion in transactions that year, 55 percent of the overall market.
The US and China will ultimately be the largest single markets for in-vehicle payments; while China will near $50 billion and the US be more than twice that, no other country will grow to more than Germany’s $19.6 billion in transaction revenues.
Connected home devices, including smart speakers and TVs, will account for over $50 billion.
Meanwhile, smart speaker voice-enabled commerce transactions are forecast to reach $51 billion annually by 2023. Goods purchased through these devices will account for just under 12 percent of connected home transactions by volume over the next 5 years. The majority of purchases will be for digital content, typically made through connected TVs.
“Full financial service products will be slow to come to voice commerce, as the automated processes need to satisfy compliance requirements,” said research author James Moar. “However, with voice assistants already supplying advisory and finance updates, there will be much data to draw on once the regulatory requirements are met.”
Voice-based banking and money transfer are not likely to emerge as large part of this ecosystem until 2020, thanks to uneven bank deployments and regulatory hurdles.
IoT-enabled insurance market will exceed $334 billion by 2023, primarily through telematics-based motor policies. This is likely to reduce premiums, impacting insurers’ gross revenues. However, the decline in premiums will be offset by improved overall profitability due to reduced costs per claim; this will become more immediately evident in home insurance, with automated accident prevention through the IoT.