Whether you are prepared for the change or not, the Internet of Things is taking over the world. From coffee makers to security cameras, from air quality sensors to connected cars, there isn’t going to be a single area of our life that won’t be left untouched by IoT devices in the next decade.
Technology giant, Ericsson predicts that in 2018, there will be more IoT gadgets than mobile devices. For many companies, now is the time to start thinking about the long-term implication of this new landscape.
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So what does the IoT have in store for companies and their customers? Here are 13 stats that show how this space will influence consumer behavior, transform major industries and change business forever.
How many devices are we talking about?
In 2015, there were about 15.4 billion connected devices. According to IHS, this number will grow to 30.7 billion in 2020, and 75.4 billion by 2025.
Intel has forecasted that by 2020, 200 billion connected devices will be used actively.
Products like industrial sensors, connected manufacturing machines, in-store analysis devices and workspace management applications are already on the market. These B2B IoT devices will fundamentally transform the way organizations do business with other companies. Sparklabs – app developing company, predicts an exponential rise in this spacefrom 2.5 billion connections in 2017 to 5.4 billion devices in 2020.
28.3 million Units of smart wears were sold in 2016, IDC forecasts an increase to 82.5 million units in 2020.
How much money is involved in the IoT?
In 2016, global spending on the IoT across markets was $737 billion. IDC predicts that by 2020, this number will reach $1.29 trillion, which accounts to a compound annual growth rate of 15.6 percent.
According to General Electric, the IoT will add $10 to $15 trillion to worldwide GDP growth by 2030 which is equivalent of China’s entire current economy.
The health care market will feel the impact of the IoT. ACT, an organization representing over 5,000 mobile technology companies, is forecasting a $117 billion connected health care market by 2020.
The IoT isn’t all about spending, either. For example, the city of Barcelona saves $37 million a year by equipping smart lighting. And the city’s many IoT initiatives have created 47,000 new jobs.
Business Insider predicts that total business spending on IoT solutions will reach $6 trillion by 2021.
How will the IoT affect our world?
According to IDC and SAP , by this year 60 percent of global manufacturers will use analytics data recorded from connected devices to analyze processes and identify optimization possibilities.
The same report also predicts that the IoT will lead to a 15 percent productivity increase in delivery and supply chain performance.
Business Insider forecasts that by 2020, 75% of new cars will come with built-in IoT connectivity.
Technology is already in our clothes, too! According to Report buyer (Market researchers), there were 968,000 smart clothing units sold in 2015. This number will rise by 24.75 billion in 2021. This accounts to 71.6 percent compound annual growth rate.
The IoT is growing at an unprecedented pace
Investing heavily in IoT and connected device programs doesn’t guarantee success. Companies need to accurately define what the IoT is, get a better understanding of how this technology transforms customer expectations and develop a plan to use customer feedback as they develop new products.