The adoption rate of the Internet of things is rising, but due to the different definitions of “things”, it is difficult to have a consistent statement about the figures around the market scale.

When telecom operators first set foot in the Internet of things, the idea of a fully interconnected object world still has a long way to go. Initially, the Internet of things, known as machine to machine, has achieved significant growth over the past decade and spans multiple vertical areas.

It is difficult to determine how many IOT devices are running, because there is no 100% consensus on the composition of “things” in the Internet of things. Some analysts count any device connected to the Internet, including laptops and smartphones, while others exclude ordinary products such as laptops and smartphones.

According to statista, by 2025, the number of global IOT devices will reach 38.6 billion. The current figures are more difficult to interpret – statista said 8.74 billion devices were in use in 2020. But in other statista reports, the estimate is more conservative – it is expected to reach about 16.44 billion by 2025.

IOT analytics provides slightly different data. It is estimated that by the end of 2020, the number of IOT devices used worldwide will be 21.7 billion. The analysis company estimates that this figure will reach 30 billion by 2025.

By 2025, 152200 IOT devices are expected to be connected to the Internet every minute. Therefore, it is difficult to grasp the actual figures – but from all these different statistics, we can determine at least one fact: the market is growing.

market value

It is estimated that the actual revenue of the global Internet of things market is about US $212 billion. Nevertheless, due to the lack of a unified definition of the composition of the Internet of things, there are other data from different analysts. For example, fortune business insights estimates that the value of the market will grow to $1854.76 billion by 2028, with a CAGR of 25.4% between 2021 and 28.

In contrast, the IOT forecast report estimates that Internet of things spending will exceed $1 trillion by 2020, of which consumer spending accounts for nearly three-quarters.

Business insider claims that the global Internet of things revenue exceeds $212 billion. They also showed great optimism that the Internet of things market will grow to more than $3 trillion by 2026. Bain claims that the Internet of things market, including hardware, software, system integration and data services, will be about $520 billion in 2021.

Obviously, the Internet of things is growing significantly. By 2023, Cisco predicts 15 billion M2M connections. In 2018, the figure was 6 billion, of which connected home applications are expected to account for 48% of the total number of M2M connections.

This will also lead to a surge in data collection. According to IDC data, by 2025, the amount of data generated by IOT devices is expected to reach 73.1 ZB, most of which are generated by intelligent monitoring tools. IDC added that 75% of the world’s 56 billion networked devices are expected to be connected to the Internet of things platform.

Drive growth

So which markets have played the biggest role in promoting the adoption of animal networking? Cisco said the fastest-growing area is connected vehicles, including fleet management, navigation and vehicle diagnosis. From now to 2023, the compound annual growth rate of the industry will reach 30%.

The Internet of things will also play a key role in the deployment of autonomous vehicle. Statista predicts that by 2025, we will see a surge in some self driving vehicles, and the market size will reach $36 billion. Finally, by 2035, North America will have 29% of autonomous vehicle, followed by China, accounting for 24%, and Western Europe, accounting for 20%.

However, smart home is still the largest market for Internet of things devices. According to statista, the global smart home market, including automation systems that control lighting, climate, entertainment, appliances and home safety, is estimated to be about $126 billion in 2022 and will reach $208 billion by 2026. According to the company, there were 25854 million smart homes in 2021, accounting for 12.2% of all households.

A study by Frost & Sullivan shows that by 2025, the world’s 600 smart cities will account for 60% of global GDP. Experts estimate that by 2025, the market value of smart cities will exceed $2 trillion, of which artificial intelligence and the Internet of things are the main driving forces.

Another area where the Internet of things can play an important role is health care. Deloitte reported that iomt (Medical Internet of things) is expected to reach US $158.1 billion in 2022. According to the data of grand view research, the IOT medical market is expected to reach US $534.3 billion by 2025.

There will also be significant growth in the industrial sector. Industrial Internet of things, commonly known as industry 4.0, is one of the largest market segments of Internet of things projects, which is expected to reach US $106.1 billion by 2026.

So why is the adoption rate of the Internet of things getting higher and higher? Gartner’s study found that 63% of organizations investing in the Internet of things believe they will achieve the expected financial return within three years.

According to PwC’s Internet of things survey, the biggest benefit of the Internet of things to enterprises is the acquisition of new capabilities (35%) and efficiency.

Effect of COVID-19

Another important consideration is the effect of COVID-19. Most reports and studies on the Internet of things were conducted in 2020, although companies such as Gartner and statista have provided results since the outbreak began.

Gartner found that after the outbreak of COVID-19, 47% of organizations were developing new Internet of things investment plans, and 35% of organizations had reduced their investment.

According to IOT analytics, some IOT companies’ new orders fell by 50% because COVID-19 forced their customers to freeze their budgets or postpone it/ IOT spending. The shortage caused by the epidemic has exacerbated this problem, including the supply of chips.

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