IoT to add $1.7t to global economy by 2019
THE Internet of Things (IoT) is beginning to grow significantly, as consumers, businesses, and governments recognize the benefit of connecting inert devices to the Internet.
In an all-new report from BI Intelligence, it examines what is currently driving growth in the IoT and how various sectors of the economy will embrace its innovations.
According to the report, IoT will be the largest device market in the world. BI estimated that by 2019 it will be more than double the size of the smartphone, PC, tablet, connected car, and the wearable market combined.
Besides, the IoT will result in $1.7 trillion in value added to the global economy in 2019. This includes hardware, software, installation costs, management services, and economic value added from realized IoT efficiencies.
The BI also projected that device shipments will reach 6.7 billion in 2019 for a five-year CAGR of 61 per cent. Revenue from hardware sales will be only $50 billion or eight per cent of the total revenue from IoT-specific efforts, as software makers and infrastructure companies will earn the lion’s share.
The enterprise sector will lead the IoT, accounting for 46 per cent of device shipments this year, but that share will decline as the government and home sectors gain momentum.
It stressed that by 2019, government will be the leading sector for IoT device shipments.
According to it, the main benefit of growth in the IoT will be increased efficiency and lower costs. The IoT promises increased efficiency within the home, city, and workplace by giving control to the user. However, many are hesitant to use devices as security problems are still an issue.
The IoT lacks a common set of standards and technologies that would allow for compatibility and ease-of-use. There are currently few standards (or regulations) for what is needed to run an IoT device. Consortia that group together global industrial, tech, and electronics companies are involved in an effort to standardize the IoT and solve the most pressing security concerns.
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