03 How large is the IoT Market?
Posted by Superadmin on December 11 2015 05:15:52
The current potential market for IoT is huge it just isn’t visible in our everyday lives, or rather we are not identifying the technologies as IoT. Currently there are many IoT devices and solutions on the market, from smart home control devices like Nest, to wearable eHealth devices like Pebble and Jawbone, although probably not many people consider these IoT devices. Today in 2015, there are estimated to be circa 8-9 million devices
connected to the internet, and all these are potential IoT devices and sensors. However, by 2020 this figure could rise to a staggering 50 billion connected devices. Indeed, within only 5 years it is estimates that 57,000 devices will be connected to the internet every second, that is how huge the growth of the potential market is expected to be in terms of devices.
In financial terms, the market is measured in Trillions of dollars, with estimates at $9 Trillion dollars by 2020. Of course, this will not all come from new profit lines but in part from massive productivity gains and efficiency savings in industry. In the short-term, growth to 2018, current projections are for a 300% growth in profits from incremental profits due to IoT. Furthermore, this is being projected and reported across all the major
vertical markets such as Banking, Retail, Health, Transport, Manufacturing, Utilities and Government. Therefore, in both the short and long term, financial growth projections are staggering.
Currently, Asia leads the way with 40% of Machine-to-Machine connections (M2M). This isn’t surprising, because China has already committed $603 Billion towards machine-tomachine connections leaving the USA and EU well behind. Recently, in March 2015 the UK launched a major government sponsored initiative to encourage IoT research, development and implementation. The goal of the UK IoT project is to encourage business to adopt this new revolutionary technology.