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Author: David Kerr


Co Authors: Chris Ambrosio, Matt Wilkins , Andrew Brown


Publication Date: Apr 03 2017


Pages: 37


Report Type: Forecast and Outlook



 IoT

Global IoT: A Billion not Trillion Dollar Opportunity




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Report Summary:

IoT has made solid progress over the last few years but remains very much in the nascent stage in terms of deployments, spend and share of the IT budget in global businesses. Estimates that put the IoT market value at $10T or more have a credibility problem. Can IoT really be bigger than the entire IT industry? Can IoT really be bigger than the Health Care sector which accounts for 10% of global GDP? The economic value potential of IoT is indeed huge but the opportunity for suppliers of products, and services is likely to be measured in US$ Billions not US$ Trillions.

This report provides our updated forecast of the global IoT market spend by vertical market through 2025.  Across the 2016-2025 forecast period, the revenue mix by category will see both Connectivity and Services revenues grow their share of total IoT revenues at the expense of hardware revenues.

By 2025, Security will be the leading vertical accounting for 20% of global IoT revenues, with Primary Processing second at 16% followed by Automotive.



Table of Contents

Contents
1. Executive Summary     4
2. Sizing the IoT Market 6
2.1 Drivers for IoT Spending 8
2.2 Barriers to IoT Deployment 9
2.3 Sizing Current and Planned IoT Deployments 11
3. IoT Spending Forecast 15
3.1 IoT Spending Forecast by Vertical Market 16
4. Vertical Analysis 21
4.1 Utilities 21
4.2 Primary Processing 22
4.3 Transport 24
4.4 Security 26
4.5 POS/Retail 28
4.6 Home (non-security) 30
4.7 Industrial and Manufacturing 31
4.8 Automotive 32
4.9 Healthcare 34
5. Conclusions 36

Exhibits
Figure 1: Scaling IoT Potential vs Global IT and GDP 4
Figure 2: Global IoT Spend by Services, Connectivity and Hardware 5
Figure 3: The IoT Buyer Journey 6
Figure 4: IoT Forecast Anchored by IT Budget Reality 7
Figure 5: Business Benefits of IoT 8
Figure 6: Challenges of Data Collection and Analysis 9
Figure 7: Barriers to IoT Implementation 10
Figure 8: Average 2016 IoT Spend by Business in the UK, U.S., France and Germany 12
Figure 9: IoT Share of Total IT Spend by Industry 13
Figure 10: Growth Expected in IoT Share of IT Budget by Vertical 14
Figure 11: Global IoT Revenues by Category 16
Figure 12: 2025 IoT Vertical Market Ranking 17
Figure 13: Global IoT Revenue by Vertical Market 18
Figure 14: Cost/Benefit Analysis of Smart Meters in EU Member States 22
Figure 15: Cisco Connected Mining 24
Figure 16: Maersk Line Shipping Containers 26
Figure 17: Coca Cola Vending Machines 29
Figure 18: IoT Retail Use Cases 30
Figure 19: Bosch Connected Parking 33
Figure 20: IoT Solutions Matrix 37

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