Is Internet of Things Market Growing?
The convergence of the cloud, mobile, big data, social and other sensors, is generating huge new opportunities for companies to offer their customers and employees services and modes of interaction that were previously unimaginable. People, things, machines and processes are becoming increasingly networked, creating a permanent channel between the real world and the virtual dimension, and revolutionizing the way we interact with all not only in the private sphere but also in the work context and business.
At the center of this revolution is the Internet of Things (IoT), which allows you to create new generations of solutions in diverse fields. Globally, the turnover associated with this market (sensors, services, platforms, and analytics) will grow from $1.3 trillion in 2013 to $3.04 trillion in 2020 with a compound annual growth rate (CAGR) of 13%, says IDC. At the end of 2017, the value could reach $2.3 trillion, of which about 27 percent resulting from the scope commercial, 19 percent by the public sector, and the rest from the set of industries.
IDC defines in the report, “Worldwide and Regional Internet of Things (IoT) Forecast: A Virtuous Circle of Proven Value and Demand”, the Internet of Things as a network of networks with uniquely identifiable endpoints that interact without human intervention, using an IP connection, both locally and globally. The early stage of formation of the market, according to analysts IDC, provides an unprecedented opportunity for governments, suppliers, and consumers. With the development of IoT, various strategies of key players will lead to an understanding of consumer needs and increase their satisfaction, and revenue growth.
This revolution implies a profound transformation of production processes and an increasing convergence between the industrial system, ICT technologies, and communications infrastructure. According to IDC, over the next few years devices, sensors, applications, and data centers will talk more and more in a heterogeneous technology environment, where the evolution will be driven by the ability to experiment and collaborate with the most innovative companies.
The report noted that the opportunities presented by IoT are driving widespread attention among both traditional and non-traditional ICT vendors looking to take advantage of emerging revenue opportunities. The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions.
It is also noted that the startups in this area are working very hard, trying to quickly decide on strategies that will attack the market. And this activity is stimulating the pace of learning and innovation among the major players.
The European IoT market promises fast growth with a CAGR of 21.3% from 2013-2018, exceeding that of the world market, thanks to widespread environmental awareness and a strong propensity for experimentation of public and private companies.
The areas where the Internet of Things will have the greatest impact over the next few years, ranging from construction (construction industry) to manufacturing, from the environment to the utility, the Smart city to advertising, from transport to the smart home (homes hyper-connected), from shopping to healthcare. The structure of the IoT ecosystem includes devices such as intelligent surveillance systems, network equipment, network services, appliances, and software products.