IoT Market Forecast by Gartner

The use of IOT in business and the number of connected devices will explode in the next three years.

In 2017 the use of IoT devices will surge by 31% from the 2016 forecast and by 2020 the number of connected IoT devices is estimated to reach at least 20.4 billion.

China, North America and Western Europe are at the forefront in driving the usage of connected devices in businesses and companies this will represent over 60% of installed IoT devices in 2017.

IoT devices will be used in multiple devices

According to their specific applications, these include manufacturing field devices in buildings, process sensors for electrical generating plants and real-time location devices in healthcare such as hospitals and clinics.

Cross-industry devices developed for smart building will be leading connectivity these devices range from LED lighting, HVAC, and physical security systems, by 2020 this particular sector of IoT the number will be 4.4 billion units.

Ms Rueb Gartner Research Director stated “Services are dominated by the professional IoT-operational technology category in which providers assist businesses in designing, implementing and operating IoT systems, However, connectivity services and consumer services will grow at a faster pace. Consumer IoT services are newer and growing off a small base. Similarly, connectivity services are growing robustly as costs drop, and new applications emerge.”

IoT Units Installed Base by Category (Millions of Units)

Category 2016 2017 2018 2020
Consumer 3,963.0 5,244.3 7,036.3 12,863.0
Business: Cross-Industry 1,102.1 1,501.0 2,132.6 4,381.4
Business: Vertical-Specific 1,316.6 1,635.4 2,027.7 3,171.0
Grand Total 6,381.8 8,380.6 11,196.6 20,415.4

 

Gartner research vice-president Bettina Tratz-Ryan said: “We see a strong use of the internet of things [IoT] in manufacturing and industry 4.0 applications, the platform market will increase, as will services relating to identity and access management.”

Statistically, consumers purchase more IoT devices for personal usage yet businesses spend more in the installment and usage of hardware this among different businesses will drive $964 billion in 2017 whilst consumers will amount to $725 billion.

IoT Endpoint Spending by Category (Billions of Dollars)

Category 2016 2017 2018 2020
Consumer 532,515 725,696 985,348 1,494,466
Business: Cross-Industry 212,069 280,059 372,989 567,659
Business: Vertical-Specific 634,921 683,817 736,543 863,662
Grand Total 1,379,505 1,689,572 2,094,881 2,925,787

 

About Gartner INC

The world’s leading information technology research and advisory company, the company delivers the technology-related insight necessary for clients to make the right decisions. Gartner is currently a valuable partner to 10,000 distinct enterprises worldwide, founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA.

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