- By 2020, Discrete Manufacturing, Transportation & Logistics and Utilities industries are projected to spend $40B each on IoT platforms, systems, and services.
- McKinsey predicts the IoT market will be worth $581B for ICT-based spend alone by 2020, growing at a Compound Annual Growth Rate (CAGR) between 7 and 15%.
- Industrial products lead all industries in IoT adoption at 45% with an additional 22% planning to adopt IoT in the next 12 months according to a recent Forrester survey.
- The Industrial Internet of Things (IIoT) market is predicted to reach $123B in 2021, attaining a CAGR of 7.3% through 2020.
- Harley Davidson reduced its build-to-order cycle by a factor of 36 and grew overall profitability by 3% to 4% by shifting production to a fully IoT-enabled plant according to Capgemini.
Realizing the Internet of Thing’s (IoT) potential to reduce costs and enable new business models needs to start with a platform perspective that includes app development and integration. IoT is one of the most-researched emerging markets globally, with a specific focus on how Cloud Services and APIs will enable a faster proliferation of applications and the marketplaces that offer them. APIs will enable IoT projects to succeed faster and with greater accuracy by enabling more real-time integration points between systems. High-speed wireless networks are a key growth catalyst for IoT, which is why Samsung, Qualcomm, LG, Huawei, and Intel all are vying to establish product leadership with patents. These top five patent holders together control over 13,300 IoT patents today. The following ten charts provide insights into IoT’s explosive growth:
- By 2020, Discrete Manufacturing, Transportation & Logistics and Utilities industries are projected to spend $40B each on IoT platforms, systems, and services. Globally B2C Commerce is projected to invest $25B in IoT systems, software, and platforms within two years. Healthcare and Process industries are projected to invest $15B each in IoT. The following graphic compares the projected growth in spending by vertical globally, from 2015 to 2020. Source: Statista.