Where IoT Growth is Coming From Might Surprise You

Consumer whims coupled with volatility among telecom managed service providers — due to mergers and acquisitions — make IoT far less lucrative in the near term than the enterprise. The latter segment is where companies want to drive more efficiency into their operations and nurture loyalty among customers by leveraging IoT technology.

By 2018 the telecom real-time billing sector will account for 30 percent of the installed base of IoT devices, while the enterprise will account for the rest. However, the consumer sector will generate just 10 percent of the anticipated spend in that year.

Between now and 2020, the global IoT market will grow nearly 17 percent per year, with western Europe growing faster than the average, North America growing at about the average rate and Asia growing just slightly below the average telecommunication services. The global IoT market will generate $1.68 billion in revenue in 2020 compared with $780 billion this year.

In 2014, there were 10.3 billion IoT telecom self care devices installed around the world; by 2020 that will grow to 29.5 billion or a compound growth rate of 19.2 percent. The rate of end points connected will almost double from about 4,800 per minute today to 7,900 per minute in 2020, according to IDC’s forecast. Some business segments are much keener to embrace IoT solutions than others, according to IDC’s research.

Telecommunications, banking, utilities, investment services and process manufacturing companies are more likely to put aside the telecom process management budget for IoT investments in the coming years compared with organizations in government, education and construction.