Roundup Of Internet Of Things Forecasts And Market Estimates, 2016 – Forbes
- Bain predicts that by 2020 annual revenues could exceed $470B for the IoT vendors selling the hardware, software and comprehensive solutions.
- McKinsey estimates the total IoT market size in 2015 was up to $900M, growing to $3.7B in 2020 attaining a 32.6% CAGR.
- General Electric predicts investment in the Industrial Internet of Things (IIoT) is expected to top $60 trillion during the next 15 years.
- IHS forecasts that the IoT market will grow from an installed base of 15.4 billion devices in 2015 to 30.7 billion devices in 2020 and 75.4 billion in 2025
This years’ series of Internet of Things (IoT) and Industrial Internet of Things (IIoT) forecasts reflect a growing focus on driving results using sensor-based data and creating analytically rich data sets. What emerges is a glimpse into where IoT and IIoT can deliver the most value, and that’s in solving complex logistics, manufacturing, services, and supply chain problems.
An example is how Lufthansa is using an IoT-based strategy to create an entirely new business mining data from their maintenance, repair and overhaul (MRO) operations and providing it to their customers. They are also using real-time aircraft, airport, and weather sensor data to improve on-time performance and optimize operations. Lufthansa aggregates all available data together to consistently deliver excellent customer experiences as a result. It’s these sensor-driven strategies that drive the most reliable IoT and IIoT forecasts and predict the future of this industry.
Key takeaways from the collection of IoT forecasts and market estimates include the following:
- IHS forecasts that the IoT market will grow from an installed base of 15.4 billion devices in 2015 to 30.7 billion devices in 2020 and 75.4 billion in 2025. Source: IoT platforms: enabling the Internet of Things, March 2016 (free, opt-in, PDF).
- Forrester predicts fleet management in transportation, security and surveillance applications in government, inventory and warehouse management applications in retail and industrial asset management in primary manufacturing will be the hottest areas for IoT growth. Forrester also found enterprises are more likely than smaller companies to use IoT. 23% of global enterprise respondents use IoT, but only about 14% of small and medium-size business (SMB) respondents do. For example, Lufthansa Airlines is using real-time aircraft, airport, and weather sensor data to improve on-time performance and optimize operations. Source: Forrester, courtesy of Cloudera (reprint) The Internet Of Things Heat Map, 2016 Where IoT Will Have The Biggest Impact On Digital Business by Michele Pelino and Frank E. Gillett January 14, 2016
- McKinsey estimates the total IoT market size in 2015 was up to $900M, growing to $3.7B in 2020 attaining a 32.6% CAGR. The Internet of Things (IoT) has a potential economic impact of $2.7 to $6.2T until 2025. Source: Internet of Things The IoT opportunity – Are you ready to capture a once-in-a-lifetime value pool? Chris Ip (叶远扬) Hong Kong IoT Conference 21 June 2016
- Global spending on IoT technology-based products and services by enterprises is predicted to reach $120B in 2016, growing to $253B in 2021, attaining a 16% CAGR. IoT Technology Services spending alone is expected to grow at 17% CAGR in the next five years to reach $143 Billion in 2021. At 20% CAGR, Asia is projected to grow at the highest rate contributing to ~35% of total spend by 2021. Source: Zinnov Zones 2016 – Internet Of Things Technology Services.
- Bain predicts that by 2020 annual revenues could exceed $470B for the IoT vendors selling the hardware, software and comprehensive solutions. By 2020, total available profit will reach $60B based on their analysis and recent survey. Bain predicts cloud service providers and analytics and infrastructure software vendors will have the most influence over IoT purchases. Source: Bain & Company, How Providers Can Succeed in the Internet of Things (PDF).
- Gartner predicts 6.4B connected things will be in use worldwide in 2016, up 30% from 2015, and will reach 20.8 billion by 2020. In 2016, 5.5 million new things will get connected every day. Source: Gartner Says 6.4 Billion Connected “Things” Will Be in Use in 2016, Up 30 Percent From 2015.
- IDC predicts global IoT revenue will reach $7.065B by 2020 from $2.712B in 2015, attaining a Compound Annual Growth Rate (CAGR) of 21.11%. IDC predicts the installed base of IoT units to grow at a 17.5% CAGR over the forecast period to 28.1 billion in 2020. Source: IDC Market in a Minute: Internet of Things.
- IoT hardware, software, and services will generate an additional $344B in revenues by 2020.t. Kearney predicts there will be a $1.9T productivity improvement, and $177B in cost reductions driven by IoT and realized by customers. Source: Internet of Things 2020: A Glimpse into the Future by Alex Blanter and Mark Holman.
- The number of B2B IoT connections will increase to 5.4 billion by 2020 according to Verizon, attaining a 28% CAGR from the forecast base year of 2014. Enterprises will lead all sectors with the number of installed IoT devices. Source: Spark Labs Global Ventures’ Internet of Things & Hardware Industry Report 2016.
- Internet of Things (IoT) sensors and devices are expected to exceed mobile phones as the largest category of connected devices in 2018, growing at a 23% compound annual growth rate (CAGR) from 2015 to 2021. Ericcson predicts there will be a total of approximately 28B connected devices worldwide by 2021, with nearly 16B related to IoT. The following graphic compares cellular IoT, non-cellular IoT, PC/laptop/tablet, mobile phones, and fixed phones connected devices growth from 2015 to 2021.Source: Ericsson Mobility Report; June 2016.
- Biotechnology, consulting, and advertising are the industries that believe IoT is the most relevant to their industries. Adoption of IoT across a wide variety of industries is happening today, with significant results being delivered in manufacturing, distribution including asset management, logistics, supply chain management, and marketing. The study found that the majority of industries see IoT as not important today, except biotechnology. Source: 2016 Internet Of Things (IOT), Big Data & Business Intelligence Update.
- The worldwide market for IoT platforms reached $298M in 2015 with an estimated compound annual growth rate (CAGR) of 33%, predicted to reach $1.6B in 2021. PTC is the IoT platform market leader with 18% market share, reporting revenue of $53M in 2015, up from $5.2M in 2014. Source: IOT Analytics: IOT Platforms Market Report, 2015 – 20121, PTC Excerpt.
- The Industrial Internet has the potential to deliver up to $11.1T on an annual basis by 2025. 70% of this would be captured by business-to-business solutions. Source: GE Digital, The Emerging Industrial App Economy.
- IndustryARC research predicts the Industrial IoT (IIOT) market will reach $123.89B by 2021. The following graphic compares market estimates from Accenture, Morgan Stanley, and IndustryARC. Source: The Industrial Internet of Things (IIoT): innovation, benefits, and barriers.
- Accenture estimates the Industrial Internet of Things (IIoT) could add $14.2T to the global economy by 2030. Source: Accenture: Winning with the Industrial Internet of Things.
- The Industrial Internet of Things (IIoT) market was valued at $93.9B in 2014, projected to reach $151.01B by 2020 and is expected to grow at a CAGR of 8.03% between 2015 and 2020. The base year used for study is 2014 and the forecast period is between 2015 and 2020. Source: Industrial IoT Market by Technology (Sensors, RFID, Industrial Robotics, 3D Printing, DCS, Condition Monitoring, Smart Meter, Autonomous Haulage System, Yield Monitors, Guidance & Steering, GPS/GNSS), Software, & Geography – Global Forecast to 2020
- General Electric predicts investment in the Industrial Internet of Things (IIoT) is expected to top $60 trillion during the next 15 years. Source: GE Announces Predix Cloud – The World’s First Cloud Service Built for Industrial Data and Analytics.
- The global industrial internet of things market is projected to reach $123.8B by 2021; the market is forecast to grow at a CAGR of 21% through 2016 to 2021. Source: Industrial Internet of Things (IIoT) Market Analysis – By Components (Sensors, Memory, Processors, RFID); By End-Use Industry (Manufacturing, Transportation, Energy, Retail, Healthcare, Agriculture) – Forecast (2016-2021).
- By 2017, 60% of global manufacturers will use analytics to sense and analyze data from connected products and manufacturing and optimize increasingly complex portfolios of products. By 2018, the proliferation of advanced, purpose-built, analytic applications aligned with the IoT will result in 15% productivity improvements for manufacturers regarding innovation delivery and supply chain performance. Source: IDC, IoT, and Digital Transformation: A Tale of Four Industries (PDF).
- Worldwide shipments of wearable devices are expected to reach 110 million by the end of 2016 with 38.2% growth over the previous year. Watch, and wristband shipments will reach a combined total of 100 million shipments in 2016, up from 72.2 million in 2015. Source: IDC Forecasts Worldwide Shipments of Wearables to Surpass 200 Million in 2019, Driven by Strong Smartwatch Growth and the Emergence of Smarter Watches.
- Worldwide spending on Internet of Things (IoT) security will reach $348M in 2016, a 23.7% increase from 2015 spending of $281.5M according to Gartner, Inc. Spending on IoT security is expected to reach $547 million in 2018, Source: Gartner Says Worldwide IoT Security Spending to Reach $348 Million in 2016.
- Nearly $6T will be spent on IoT solutions over the next five years. In total, Business Insider forecasts there will be 34B devices connected to the internet by 2020, up from 10B in 2015. IoT devices will account for 24B, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion. Source: How the ‘Internet of Things’ will impact consumers, businesses, and governments in 2016 and beyond.