Note: The following is an excerpt from our Internet of Things 2015 Report. You can download the full report as a PDF by clicking the link below. In addition, we have provided links to all of the charts and data in Excel and a separate infographic.
- The Internet of Things (IoT) is a vast and growing network of connected objects able to collect and exchange data using embedded sensors. Businesses, governments, and consumers (referred to in this report as “entities”) can monitor and control IoT devices remotely. From a productivity, efficiency, and innovation perspective, we believe the IoT, ultimately, will be as transformative to society as was the Industrial Revolution.
- An IoT device includes any stand-alone internet-connected device that can be either monitored and/or controlled from a remote location. By the end of 2020, we project an installed base of 24 billion IoT devices worldwide, up from 4.2 billion in 2015. 11.2 billion IoT devices will be installed in enterprise settings, 7.7 billion in government settings, and 5 billion in consumer settings.
- Businesses will be the top adopter of IoT solutions. There are three ways the IoT can improve their bottom line: 1) lower operating costs; 2) increased productivity; and 3) expansion to new markets or development of new product offerings.
- Governments are focused on increasing productivity, decreasing costs, and improving their citizens’ quality of life. We believe they will be the second-largest adopters of IoT ecosystems.
- Consumers will lag behind businesses and governments in IoT adoption. Still, they will purchase a massive number of devices and invest a lot of money in IoT ecosystems.
- There are four market drivers propelling IoT growth. These include expanded internet connectivity, high adoption of mobile devices, low cost of sensors, and large investments from tech companies in IoT sectors.
- The four barriers preventing adoption include a lack of security, privacy concerns, large-scale implementation hurdles, and technological fragmentation within the IoT ecosystem.
- In total, we project there will be 34 billion devices connected to the internet by 2020, up from 10 billion in 2015. IoT devices will account for 24 billion, while remotes will account for 10 billion.
- Businesses, governments and consumers will invest nearly $1.6 trillion to install IoT solutions in 2020, up [...]