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Future Market Insights Reports on Expected IoT Growth Through 2020

October 01, 2015

Future Market Insights (FMI) recently released a report about the Internet of Things (IoT) market which predicts that the current installation base is set to increase substantially through the year 2020.

FMI’s report, “Internet of Things (IoT) Market: Global Industry Analysis and Opportunity Assessment 2014-2020,” shows that the installation base in 2013 was approximately 170 billion units. This number could increase to 193.9 billion units by 2020 if researchers guess correctly. The market’s value, by the end of the decade, would then reach more than $7 trillion as businesses continue to drive adoption of this network of linked devices.

There are a number of consumer-related devices on the market, and surely there will be many more as the decade’s end comes to pass. However, FMI indicates that the business-to-business (B2B) segment of the market accounts for more than 74 percent of the whole. Furthermore, it predicts that the B2B segment will increase its role to about 76 percent in five years.

A number of specific business sectors should benefit from this wave of innovation. To begin, the manufacturing sector could show growth to more than $1 trillion by 2020 – increasing its hold on the market in 2013 where it accounted for more than a third of all IoT.

Image via Shutterstock

IoT nodes are expected to make manufacturing plants more efficient by gathering data about weather and by using analytics to show, in real time, business actions and how they can improve. Supply chain management, as well, is expected to become more efficient as it digs deeper into big data and uses IoT nodes to collect relevant information about its processes.

Not to be left out entirely, consumer applications are expected to expand in the form of government services and education materials. For government, this means easier delivery of services such as drivers license renewal. Public and private houses of education could also use the IoT to help provide student resources and to digitize course materials. Overall, the public segment of the growing IoT market is expected to reach nearly $640 billion by 2020 and, although it is smaller than B2B, will represent market growth and a host of new services for consumers across many aspects of society.

Edited by Maurice Nagle

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