The Internet of Things (IoT) is widely touted as having the potential to open vast new vistas of opportunity across economic sectors as devices and equipment used in power, manufacturing and industrial plants, the transportation sector and U.S. homes and retail businesses are enabled with Internet connectivity. Identifying and taking advantage of opportunities for revenue growth isn’t a simple or straightforward task, however, according to a new market research report from IDC.
As explained in a press release, IDC defines IoT “as a network of networks of uniquely identifiable endpoints (or ‘things’) that communicate without human interaction using IP connectivity” – be it locally or globally. “As IoT moves beyond the hype and promise, a variety of vendor strategies and key players will emerge to find success in meeting customers’ needs as well as growing new revenue streams from this net new market opportunity,” the market research company states.
Internet of Things Base
According to IDC’s “Worldwide Internet of Things 2014-2020 Forecast”:
- In the IoT market, a collection of vendors, service providers and systems integrators must co-exist and integrate products and solutions to realize success;
- The installed and connected base of IoT units will reach approximately 30 billion in 2020;
- Start-up vendors are working feverishly to carve out their strategies to attack this market and will drive the innovation pace of larger vendors.
“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,” Vernon Turner, IDC SVP, Enterprise Infrastructure, Consumer, Network, Telecom and IoT Research. “We’re still in the early stages of maturation and IoT represents unparalleled opportunity in government, consumer, and enterprise environments.”
Lacking the number of national boundaries and other barriers dividing markets on other continents, North America has set the stage for global IoT growth, IDC says. “In addition, government mandates and more openly eco-conscious cultures will drive Western Europe and Asia-Pacific to outpace North America in terms of IoT revenues and installed base through 2020,” IDC observes.
“There will be no one leader in this market,” commented Carrie MacGillivray, IDC vice president, IoT and Mobile Service & Infrastructure for IDC. “The market will rely on partnerships, federation, and innovative services to create truly valuable IoT solutions.”