The Internet of Things (IoT) market will grow to $1.7 trillion in 2020 from $655.8 billion in 2014 — with a compound annual growth rate (CAGR) of 16.9 percent.
Devices, connectivity, and IT services, which will make up the majority of the IoT market in 2020, will account for over two-thirds of the worldwide IoT market in 2020. Devices (modules/sensors) alone will be representing 31.8 percent of the total. IoT purpose-built platforms, application software and as a service offerings will capture a larger percentage of revenue.
“While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets,” said Vernon Turner, senior vice president and research fellow (IoT), Enterprise Systems.
“The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo,” said Turner.