- The IoT will be by far the largest device market in the world. We estimate by 2019 there will be 23.3 billion active IoT devices connected to the internet, with the installed base growing by a five-year compound annual growth rate (CAGR) of 57% from 2014 through the end of the forecast period.
- For context, that will be two-times larger than the combined number of active PCs, smartphones, and tablets in that year.
- The IoT will result in $1.7 trillion added to the global economy in 2019. This includes hardware, software, installation costs, management services, and economic value added from realized IoT efficiencies. To put that in perspective, the global GDP in 2013 was $74.9 trillion.
- Device shipments across the three main IoT sectors — government, enterprise, and home — will grow from 618 million this year, to 6.7 billion by 2019, for a CAGR of 61%. Revenues from hardware sales will reach $50 billion in 2019, up from $6 billion this year.
- The enterprise sector will lead the IoT, accounting for 46% of device shipments this year, but that share will decline as the government and home sectors gain momentum. By 2019, government will be the leading sector for IoT device shipments.
- The expansion of the IoT will be driven by four main factors — the spread of internet connectivity, the high adoption of "remotes," i.e., smartphones and tablets that control the IoT, large-scale IoT investments, and the declining cost of internet-connected sensors. The cost of these sensors fell from $1.30 to $0.60 in the last decade, according to Goldman Sachs.
- The IoT companies' revenue opportunity lies primarily with those who can create the infrastructure and networks that IoT devices run on. We estimate that hardware will account for only $50 billion by 2019, whereas software and service providers will generate up to $550 billion.
- The main benefit of growth in the IoT will be increased efficiency and lowered costs.
- In Barcelona, applying smart water IoT solutions saved the city $58 million a year in costs, while increasing revenue by $50 million, [...]