BI Intelligence projects 34 billion devices will be connected by 2020
In our new Internet of Things report, we project there will be 34 billion devices connected to the internet by 2020, up from 10 billion in 2015, representing a 28% five-year compound annual growth rate (CAGR). Here’s how we've divided our forecast into IoT devices and remotes.
- IoT devices include any stand-alone internet-connected device that can be either monitored and/or controlled from a remote location. These devices will account for the lion’s share of total connected devices, with the installed base growing from 4.2 billion in 2015 to 24 billion in 2020 — 73% of the total internet-connected base.
- Remotes enable entities that utilize IoT devices to connect with and control them using a dashboard, such as a mobile application. They include smartphones, tablets, PCs, smartwatches, connected TVs, and nontraditional remotes, such as the Amazon Echo. We estimate there will be nearly 10 billion remotes installed worldwide by 2020, up from 5.6 billion in 2015.
Our estimates show the number of connected IoT devices will eclipse the number of installed remotes sometime next year. However, as we explain in our recent Internet of Things report, the continued growth and connectedness of remotes will drive the proliferation of IoT devices because remotes — the backbone of the ecosystem — enable the consumer to connect to and control their IoT devices.
Here are some key points from the report:
- 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 traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion.
- Nearly $6 trillion will be spent on IoT solutions over the next five years.
- Businesses will be the top adopter of IoT solutions. They see three ways the IoT can improve their bottom line by 1) lowering operating costs; 2) increasing productivity; and 3) expanding to new markets or developing 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 significant amount of money in IoT ecosystems.
In full, the report:
- Distills the technological complexities of the Internet of Things into a single ecosystem
- Explains the benefits and shortcomings of many networks, including mesh (e.g. ZigBee, Z-Wave, etc.), cellular (e.g. 3G/4G, Sigfox, etc.), and internet networks (e.g. Wi-Fi, Ethernet, etc.)
- Discusses analytics systems, including edge analytics, cloud analytics, and more
- Examines IoT security best practices
- Details the four IoT market drivers and four IoT market barriers
- Forecasts IoT investment by six layers: connectivity, security, data storage, system integration, device hardware, and application development
- Analyzes how the IoT ecosystem is being using in a number of industries
- Defines Internet of Things terminology within a glossary
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