By 2025, it is predicted that there will be more than 25 billion IoT connections worldwide, meaning the IoT market will be worth an estimated $1 trillion or more, according to new data from GSMA Intelligence.
Sylwia Kechiche, Principle Analysis of IoT at GSMA Intelligence, predicts that the industry will shift from connectivity and start concentrating on the specific demands of businesses.
A trillion dollar market
Sylwia Kechiche stated, “As the number of connected consumer devices and industrial machines grow rapidly, the IoT ecosystem will evolve to become a trillion-dollar market over the course of the next decade. But the IoT revenue opportunity is shifting away from simply connecting devices to addressing specific sectors with tailored solutions, and successful ecosystem players will need to adapt their business models in line with these market trends.”
Not just about connectivity…
The applications, services and platforms sectors will maintain a share of overall IoT revenue, making up a predicted 68% of the total by 2025. Even though revenue from connectivity is expected to grow between now and 2025, it will only make up around 5% of overall IoT. This means that operators will need to broaden their capabilities and concentrate on more than connectivity in order to obtain a greater market share.
According to the forecast from GSMA, industrial IoT will make up more than half the connections total, which is expected to reach 25.2 billion by 2025…a huge increase from the 6.2 billion in 2016! In the consumer segment, the amount of connections is expected to reach 11.4 billion thanks to advancements in smart devices in the home.
Here to stay…
If the GSMA Intelligence is anything to go by, then it seems that the Internet of Things is here for the long haul, and we will see huge growth over the next 7 years.
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