IoT to Enable 25 Billion Smart Things by 2020
A new report from Gartner concludes that the Internet of things (IoT) is poised to make smart technology the norm and forecasts there will be 25 billion smart devices in use by 2020. The report also estimates that IoT will support total services spending of $69.5 billion in 2015 and $263 billion by 2020.
The IoT is the network of dedicated physical objects—the things—that contain embedded technology to sense or interact with their external environment. In other words, There’s an app for that will include pretty much every facet of daily life.
According to Gartner’s report, “The Internet of things has become a powerful force for business transformation, and its disruptive impact will be felt across all industries and all areas of society.”
Gartner vice president Jim Tully says, “The digital shift instigated by the nexus of forces (cloud, mobile, social and information), and boosted by IoT, threatens many existing businesses. They have no choice but to pursue IoT, like they’ve done with the consumerization of IT.”
Consumer applications will be the primary driver of connected things, while enterprise will account for most of the revenue. The automotive sector is expected to show the highest growth rate (96 percent) in 2015. Manufacturing, utilities, and transportation are predicted to be the top three verticals using IoT in 2015.
Tully notes, “Government will take the No. 3 spot as it invests in smart street and area lighting for energy saving reasons. Utilities will move to the No. 1 position because of investment in smart meters.”
But this brave new connected world isn’t simply about being able to communicate with your thermostat. Steve Prentice, Gartner vice president, adds: “CIOs must understand that the most disruptive impact and competitive threats—and, equally, the greatest competitive opportunities—arise not from simply digitalizing a product or service, but from creating a new…value propositions. The number of connected intelligent devices will continue to grow exponentially, giving ’smart things’ the ability to sense, interpret, communicate, and negotiate, and effectively have a digital ‘voice.’ CIOs must look for opportunities to create new services, usage scenarios, and business models based on this growth.”
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