The number of Internet of Things (IoT) connected devices will reach 38.5 billion units in 2020 up from 13.4 billion in 2015 while experiencing rise of over 285 percent, mentioned Juniper Research in a report.
According to the report, the industrial and public services sector such as retail, agriculture, smart buildings and smart grid applications will form the majority of the device base.
Additionally, the number of connected devices already exceeds the number of humans on the planet by over 2 times while enterprises’ priority is to connect their systems and devices, according to The Internet of Things: Consumer, Industrial & Public Services 2015-2020.
The combination of devices and software systems connected via the Internet, receive and analyze data, aims of transcending traditional siloed ecosystems of electronic information in order to improve quality of life, efficiency, create value and reduce cost.
According to Juniper consumer segment represents a high ARPU (average revenue per user) market segment.
In addition, the industrial sector (composed of retail, connected buildings and agriculture) will enable high ROI (return on investment) through IoT projects.
Meanwhile Garter in a report said the IoT is turning many manufacturers of things into new software vendors that need licensing and entitlement management (LEM) solutions.
According to Gartner, revenue potential can be enhanced by shifting product value from device hardware to the software running on the device and applying an appropriate licensing strategy.
Additionally, for the first time software providers, the IoT represents a significant market opportunity.
Device manufacturers can protect and monetize the intellectual property (IP) contained in applications with the LEM solutions to monetize their software via the IoT.
This apart, LEM also enables flexible pricing and packaging so that manufactures can bundle product features, capabilities and capacities, ensure payment, provide verified upgrade paths and create new revenue streams.