KEY POINTS

  • 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.
  • IoT devices are connected within the IoT ecosystem. The ecosystem includes all the components that enable businesses, governments, and consumers to connect to and control their IoT devices, including remotes, dashboards, networks, gateways, analytics, data storage, and security.
  • Remotes enable entities that utilize IoT devices to connect with and control them using a dashboard, such as a mobile application. Smartphones and PCs are the most prevalent remotes. We estimate there will be nearly 10 million remotes installed worldwide by 2020.
  • The dashboard, housed on the remote, displays information about the IoT ecosystem to users and enables them to control their IoT ecosystem. The most popular platforms for dashboards include Android and Windows, respectively the most prevalent mobile and desktop operating systems.
  • Networks play a crucial role in relaying and coordinating the flow of information back and forth across the IoT ecosystem. There are many types of IoT networks, including mesh networks like ZigBee and Z-Wave, internet-centered networks like Wi-Fi, and cellular networks, such as 3G/4G, each with distinct use cases and benefits/limitations.
  • Analytics systems are used to evaluate processes to increase efficiency. They will drive the IoT ecosystem’s value.
  • Data storage will be increasingly important for the IoT, as billions of new connected devices generate massive volumes of data.
  • Each component within an IoT ecosystem requires security. A lack of security standards is the biggest barrier to IoT adoption, yet there are steps device makers and end users can take to ensure ecosystem components are secure.

Note: The following is an excerpt from our Internet of Things 2015 Report. You can download the full report as a PDF by [...]