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BizReport : Trends & Ideas archives : June 05, 2015

IoT spending to triple to $1.7 trillion by 2020

The IT industry will see a strong demand for the Internet of Things in the next few years. Analysts at International Data Corporation (IDC) predict the solutions and services market for the Internet of Things will triple by 2020.

by Helen Leggatt

The Internet of Things market is predicted to triple from 2014's $655.8 billion to $1.7 trillion by 2020, according to IDC's 'The Worldwide Internet of Things Forecast 2015-2020'. That represents a market expansion of 16.9% CAGR in the intervening years.

"While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets," said IDC senior vice president Vernon Turner in a statement. "The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo."

The majority of the Internet of Things market will be made up from devices, connectivity and IT services, says the IDC report, accounting for about two-thirds of the worldwide market in 2020 with devices (modules/sensors) representing the lion's share (31.8%).

According to Carrie MacGillivray, vice president of Internet of Things and mobile at IDC, wearables such as the Apple Watch will remain the most visible of devices, but the real opportunity lies in the enterprise and public sector markets since consumers can not yet afford pricey connected devices.

Image via Shutterstock

Tags: Internet of Things, market forecast, technology

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