Today, more businesses are taking advantage of and acknowledging the benefits of IoT than ever before. Machine learning, AI, instant feedback and remote monitoring and operations are not merely the future - they’re already here, and they’re showing no signs of slowing down.
With the explosive growth of IoT uses and adoption, there are some great opportunities for businesses who join the IoT revolution early. The corporations who manage to transform and empower themselves through the benefits of IoT could create undeniable competitive advantages.
Here are just a few reasons why IoT will shape the future and not only be a simple trend.
1. IoT Market to Reach $1111.3 Billion by 2026
IoT is growing at a phenomenal rate.
According to Cision, PR Newswire, the IoT market has an unbelievable compound annual growth rate of 24.7%, and big-name companies such as Google, Cisco, Microsoft, Dell, Apple, Facebook among others are investing heavily in IoT applications.
Organisations such as these are increasingly adopting advanced technologies, which is driving the global IoT Market. Year on year growth for demand of technologies such as cloud computing and artificial intelligence continues to fuel the IoT market which has wide applications for financial institutions, security, retail, government, healthcare, transformation and manufacturing, to name a few key industries.
2. 26.66 Billion IoT Devices were Active in 2019
The adoption of smart devices as a means of accessing the Internet of Things is increasing every year - with 2019 seeing over 26 billion active devices. 2020 is expected to see an average of 6.58 connected devices per person.
According to disruptive Asia, businesses are already responsible for 57% of overall IoT spending, but the consumer market is hardly a force to be ignored. By the end of 2020, more than two-thirds of world-wide consumers are likely to purchase IoT devices for their homes, with consumer IoT becoming the third largest industry in terms of IoT spending.
3. The ‘Smart City’ Solutions Market will amount to over $400 billion by 2020
‘Smart Cities’, as in cities that use IoT sensors to collect data and generate insights for better management, are already a major market, but continue to grow with each year.
Cities like London, San Francisco, Rio de Janeiro and Copenhagen already implement IoT driven applications, and most of the IoT projects in 2018 were in the ‘smart city’ segment. These cities are expected to continue to use solutions such as smart meters, which are expected to grow to nearly 1.1 billion in investment by 2022.
4. 94% of businesses will use IoT by the end of 2021
According to a new report from Microsoft, almost all businesses will use some form of IoT by the end of next year. The core IoT industries such as manufacturing, retail, transportation, government and healthcare continue to introduce new IoT applications and solutions to their daily operations.
Among the current IoT business adopters, 88% believe IoT is ‘critical to their business success’, and project a 30% ROI, inclusive of cost savings and efficiencies, two years from now due to IoT applications.
5. $1.1 Trillion Will Be Spent on IoT in 2023
Statista says the projected global IoT spending is valued at over 1.1 trillion dollars and has been steadily growing.
While this is a substantial amount, IoT has also demonstrated the potential to save us money, with driverless cars generating over 5.6 trillion dollars in savings world-wide, and IoT in agricultural technologies set to cut food prices nearly in half by 2050.
It is expected that by the end of 2020, 75% of new cars will come equipped with some form of built-in IoT connectivity to cut down the number of road crashes and reduce the time a car spends in congestion and seeking parking.
Room for Improvement
Despite these amazing statistics and figures, there is still room for improvement in IoT.
IoT Magazine reports that nearly all IoT adopters - 97% - have security concerns and 38% cite complexity and technical challenges in using IoT. The lack of talent and training currently available is self-evident, with 47% of IoT adopters stating that there isn’t enough. Other companies have said that connectivity to remote operations is a significant hindrance to IoT implementation.
Despite these concerns, market barriers are being removed as more solutions become available every day. One such solution is IoT FIRST from Eutelsat, a simple and inexpensive IoT connectivity service. With outstanding reach and resilience, IoT FIRST connects assets no matter where they are located.
If you would like to find out more about IoT solutions, or IoT FIRST, visit Eutelsat’s IoT webpage, or contact us for more information.