The Internet of Things (IoT) market value is expected to grow from $1.9 trillion in 2013 to $7.1 trillion by 2020 as competition intensifies around smart analytics and applications, according to research.
IoT refers to appliances enabled with sensors and assigned their own IP address that connect to the internet - thus creating a world where devices and machines can communicate with each other, interpret information and make intelligent decisions in real time as more and more devices connect to the internet.
The growth will be driven by increased demand for full-time connectivity as consumers aspire to experience IoT in their homes, cars and daily life.
Vernon Turner, SVP for telecoms, networks and IoT at IDC, said businesses are also taking steps to gain a deeper understanding of the efficiencies, business process implications, and revenue opportunities the IoT can generate.
"Technology vendors are evolving their solutions in a supply-driven market that's edging toward becoming a more demand-driven market," he said.
Developed regions would hold 90% of the IoT market, while worldwide IoT Installed Base will experience a compound annual growth rate (CAGR) of 17.5% from 2013 to 2020.
In October 2013, IDC predicted sales for the IoT would hit $8.9 trillion.
Figures from other sources including analyst Gartner said 26 billion IOT units will be installed by 2020, while Cisco estimates that 50 billion devices and objects will be connected to the internet by 2020.
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