Skip to content

Posts tagged ‘Internet of Things’

Roundup Of Internet of Things Forecasts And Market Estimates, 2015

  • Internet of things forecastCisco predicts the global IoT market will be $14.4T by 2022.
  • IC Insights predicts revenue from Industrial Internet IoT spending will increase from $6.4B in 2012 to $12.4B in 2015.
  • IoT in manufacturing market size is estimated to grow from $4.11B in 2015 to $13.49B by 2020, attaining a CAGR of 26.9%.

With the potential to streamline and deliver greater time and cost savings to a broad spectrum of enterprise tasks, opportunities for Internet of Things (IoT) adoption are proliferating. It’s encouraging to see so many industry-leading manufacturers, service providers, software and systems developers getting down to the hard work of making the vision IoT investments pay off.

Forecasting methodologies shifted in 2015 from the purely theoretical to being more anchored in early adoption performance gains. Gil Press wrote an excellent post on this topic Internet of Things By The Numbers: Market Estimates And Forecasts which continues to be a useful reference for market data and insights, as does his recent post, Internet Of Things (IoT) News Roundup: Onwards And Upwards To 30 Billion Connected Things.

Key takeaways from the collection of IoT forecasts and market estimates include the following:

ABI Research market estimates; Internet of Things market forecast

1`4 4 Trillion IoT Internet of Things market forecast

green graphic IoT Internet of Things market forecast

software BI; Internet of Things market forecast

  • IC Insights predicts revenue from Industrial Internet of Things spending will increase from $6.4B in 2012 to $12.4B in 2015, attaining a 17.98% CAGR. IC Insights predicts the Industrial Internet will lead all five categories of its forecast, with Connected Cities being the second-most lucrative, attaining a 13.16% CAGR in the forecast period. The research firm segments the industry into five IoT market categories: connected homes, connected vehicles, wearable systems, industrial Internet, and connected cities. Source: IC Insights Raises Growth Forecast for IoT.

revenue for IoT systems; Internet of Things market forecast

  • Manufacturing (27%), retail trade (11%), information services (9%), and finance and insurance (9%) are the four industries that comprise more than half the total value of the projected $14.4T market. The remaining 14 industries range between 7% percent and 1%. The following graphic based on Cisco’s analysis of the IoT market potential by industry and degree of impact. Cisco predicts Smart Factories will contribute $1.95T of the total value at stake by 2022. Source: Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion, white paper published by Cisco.

top four industries IoT; Internet of Things market forecast

  • Intel Capital, Qualcomm Ventures, Foundry Group, Kleiner Perkins Caufield & Byers (KPCB), Andreessen Horowitz, Khosla Ventures, True Ventures and Cisco Investments are the leading IoT investors this year. Intel Capital is investing in a broad base of IoT-related technologies, encompassing 3D body-scanning and biometric sensors, wearable sand IoT infrastructure startups. Source: The Most Active VCs In The Internet Of Things And Their Investments In One Infographic. 

mot active IoT investors; Internet of Things market forecast

  • Vodafone’s latest Machine-to-Machine (M2M) study found that 37% of enterprises have projects targeted to go live in 2017. Vodafone defines M2M as technologies that connect machines, devices, and objects to the Internet, turning them into ‘intelligent’ assets that can communicate. M2M enables the Internet of Things. The following graphics compare M2M adoption trends from 2013 and 2015 and by industry. Source: 2015 Vodafone M2M Barometer Report (free, opt-in reqd., 36 pp.).

adoption of M2M 2013 2015; Internet of Things market forecast

adoption of M2M by industry; Internet of Things market forecast

growth iot; Internet of Things market forecast

  • New connections to the Internet of Things (IoT) will grow from about 1.7B in 2015 to nearly 3.1B in 2019. IoT applications will also fuel strong sales growth in optoelectronics, sensors/actuators, and discrete semiconductors, which are projected to reach $11.6B in 2019, attaining a CAGR of 26% during the forecast period. Source:  IC Insights Internet of Things Market to Nearly Double by 2019.

New Connections Internet of Things; Internet of Things market forecast

Internet of things forecast Microsoft; Internet of Things market forecast

McKinsey Institute Internet of Things; Internet of Things market forecast

  • IDC predicts that by 2018, 40% of the top 100 discrete manufacturers will rely on connected products to provide product as a service. 55% of discrete manufacturers are researching, piloting, or in production with IoT initiatives. By 2017, 50% of manufacturers will explore the viability of micrologistics networks to enable the promise of accelerated delivery for select products and customers. 65% of companies with more than ten plants will enable workers on the factory floor to make better business decisions through investments in operational intelligence. Source: IDC Manufacturing Insights Report courtesy of Cognizant, Transforming Manufacturing with the Internet of Things May 2015

 

5 Insights & Predictions On Disruptive Tech From KPMG’s 2015 Global Innovation Survey

  • cloud computing survey 215% of U.S. tech leaders see biotech/digital health/healthcare IT as the most disruptive consumer-driven technology in the next three years.
  • 13% of U.S. tech leaders predict data and analytics will be the most disruptive enterprise technology in three years.
  • Global tech leaders predict cloud computing (11%), mobile platforms and apps (9%), Internet of Things (IoT)/machine-to-machine (M2M) (9%) and data and analytics (9%) will be the most disruptive technologies over the next three years.

These and many other insights are from the fourth annual 2015 Global Technology Innovation Survey released via webcast by KPMG last month. KPMG surveyed 832 technology industry business leaders globally, with the majority of being C-level executives (87%). Respondents were selected from a broad spectrum of businesses including tech industry startups, mid- and large-scale enterprises, angel investors and venture capital firms. For an in-depth explanation of the survey methodology, please see slides 6 and 7 of the webinar presentation. The goals of the survey include spotting disruptive technologies, identifying tech innovation barriers and opportunities, and tracking emerging tech innovation hubs.

The five insights and predictions from the report include the following:

  • Global tech leaders predict cloud computing (11%), mobile platforms and apps (9%), Internet of Things (IoT)/M2M (9%) and data and analytics (9%) will be the most disruptive technologies over the next three years.  U.S. tech leaders predict biotech/digital health/healthcare IT (15%), data and analytics (14%) and cloud computing (14%) will be the three most disruptive technologies over the next three years.  Chinese tech leaders predict artificial intelligence/cognitive computing (15%) will be the most disruptive technology impacting the global business-to-consumer (B2C) marketplace.

tech driving consumer technologies

  • The three most disruptive technologies predicted to drive business transformation in enterprises over the next three years in the U.S. include cloud computing (13%), data and analytics (13%), and cyber security (10%). Japanese tech leaders predict artificial intelligence/cognitive computing will have the greatest effect (23%), and 14% of Chinese tech leaders predict the Internet of Things/M2M (14%) will have the greatest impact on business transformation in their country.  The following table compares global tech leader’s predictions of which technologies will disrupt enterprises the most and drive business transformation over the next three years.

business transformation

  • Improving business efficiencies/higher productivity, and faster innovation cycles (both 20%) are top benefits tech leaders globally are pursuing with IoT strategies. The point was made on the webinar that in Asia, consumers are driving greater adoption of IoT-based devices to a richer contextual customer experience. Greatest challenges globally to adopting IoT is technology complexity (22%), lack of experience in the new technology or business model (16%), and both displacement of the existing tech roadmap and security (both 13%).       

IoT in the enteprrise

  • Analytics are most often adopted to gain faster innovation cycles (25%), improved business efficiencies and higher productivity (17%) and more effective R&D (13%).  The greatest challenges are technology complexity (20%) and lack of experience in the new technology or business model (19%),

data and analytics KPMG Survey

  • Tech leaders predict the greatest potential revenue growth for IoT in the next three years is in consumer and retail markets (22%).  IoT/M2M is also expected to see significant revenue growth in technology industries (13%), aerospace and defense (10%), and education (9%).  The following graphic compares tech leader’s predictions of the industries with the greatest potential revenue growth (or monetization potential) in the next three years.

Emerging Tech IoT monetization

 

Sources:

Tech Innovation Global Webcast presenting the findings of KPMG’s 2015 Global Technology Innovation Survey

KPMG Survey: Top Disruptive Consumer Tech – AI In China, Healthtech In U.S., 3-D Printing In EMEA

 

%d bloggers like this: