Spending on IoT to reach $1.7 Trillion (with a T) by 2020

IDC sees growth way beyond wearables
By Mike Miliard
10:59 AM

Three new reports from IDC forecast "explosive" growth in spending on the Internet of Things in the coming years, with healthcare one of the biggest investors in connected devices and networked technology.

The worldwide IoT market will grow from $655.8 billion this past year to $1.7 trillion in 2020 with a compound annual growth rate of 16.9 percent.

Together, devices, connectivity technology, and IT services are projected to account for more than two-thirds of the worldwide IoT market in 2020, according to IDC, with devices (modules/sensors) alone representing 31.8 percent of the total. IDC expects that IoT purpose-built platforms, application software, and "as a service" offerings will see more and more growth in the years ahead, however.

Three new studies from IDC study explore the future of IoT. Worldwide Internet of Things Forecast, 2015–2020 predicts the installed base by region as well as revenue projections from both a regional and technology split perspective. IDC's Worldwide Internet of Things Taxonomy, 2015 offers a framework for vendors and organizations to help make sense of the still-new but fast-growing market. The Worldwide IoT Spending Guide by Vertical highlights country-level spending across IoT use cases and technologies, including remote health monitoring, smart appliances and more.

"While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets," said Vernon Turner senior vice president and research fellow at IDC in a press statement. "The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo."