Internet of Things (IoT) market is expected to grow at compound annual growth rate (CAGR) of 13 percent to $3.04 trillion in 2020 from $1.3 trillion in 2013, said IDC.
IDC said the IoT ecosystem includes intelligent systems, network equipment, connectivity services, data integration, and often other types of software, applications, services and security.
Earlier, IDC predicted that the IoT solutions market will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020. The growth will be fuelled by consumers’ aspirations to experience IoT in their homes, cars and demand for full-time connectivity. Worldwide IoT Installed Base will post CAGR of 17.5 percent from 2013 to 2020.
“While the homogeneity of connectivity needs is the growth driver in the North American market, government mandates and more openly eco-conscious cultures will drive Western Europe and Asia Pacific to outpace North America in terms of IoT revenues and installed base through 2020,” said IDC in a statement.
A collection of vendors, service providers and systems integrators must co-exist and integrate products and solutions to realize success, said IDC.
IDC forecasts that the installed and connected base of IoT units will reach approximately 30 billion in 2020.
The report found that startup vendors are working feverishly to carve out their strategies to attack this market and will drive the innovation pace of larger vendors.
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In April 2014, Gartner shared 5 tips to monetize from IoT. Simplify, differentiate, drive revenue, grow market and protect your IP are the five tips that can assist to monetize from M2M initiatives.