IoT products, services to add $1.9 trillion to world economy by 2020, predicts Gartner
Internet of Things (IoT) product and service suppliers are expected to generate incremental revenue of more than $300 billion in 2020, adding $1.9 trillion in global economic value-add by then, forecasts market research firm Gartner.
Economic value-add represents the "aggregate benefits that businesses derive through the sale and usage of IoT technology," explains Gartner.
The number of IoT connected devices will reach 26 billion units by 2020, a 30-fold increase from 2009 levels, predicts Gartner.
IoT is the name given to the network of devices that have embedded technology to monitor internal conditions and interact with the external environment. Not included in the IoT device category are PCs, tablets and smartphones.
IoT devices serve an array of enterprise functions, including asset tracking, process monitoring, remote sensing, factory automation, telematics and "smart building" technologies, says Gartner.
The industries that are leading IoT adoption are manufacturing, healthcare and insurance.
"By 2020, component costs will have come down to the point that connectivity will become a standard feature, even for processors costing less than $1. This opens up the possibility of connecting just about anything, from the very simple to the very complex, to offer remote control, monitoring and sensing," explains Peter Middleton, research director at Gartner.
Gartner's estimate is only half the estimate of 50 billion connected devices made by Ericsson. "The vision of more than 50 billion connected devices will see profound changes in the way people, businesses and society interact. With ubiquitous mobile broadband-enabled internet access, connectivity and networking are becoming completely independent of location," proclaims Ericsson in a February 2011 white paper (.pdf)