According to the latest figures from Machina Research’s IoT Global Forecast and Analysis 2015-2025, the total number of Internet of Things (IoT) connections is expected to jump from 6 billion last year to more than 27 billion by 2025, representing a massive compound annual growth rate (CAGR) of 16 percent. As a result, the market for IoT devices could exceed $3 trillion over the next decade, fueled largely by an uptick in the use of low-power technologies like Bluetooth low energy.
Should these findings ring true; the IoT market will generate more than 2 zettabytes – or 2 billion terabytes, for perspective – of data by 2025 across both the consumer and industrial IoT marketplaces. This frames the IoT and its related industries – from electronic devices manufacturers to the retailers and network operators bringing the devices to consumers – as a booming market on the cusp of exploding. The massive projected growth of IoT connections in the near future will no doubt impact stakeholders across the delivery chain, not to mention the day-to-day life of the average global citizen.
In 2015, annual revenue for the IoT was already a lofty $750 billion globally. The market is expected to balloon to a nearly $3 trillion valuation through the proliferation of technologies like our power efficient SmartBond™ Bluetooth low energy SoCs and highly integrated, PMIC subsystems that provide a gateway to personal connectivity and easy access to the cloud, ranging from wearables to proximity trackers to smart home applications. These solutions enable devices to connect to networks and other devices without individually requiring large amounts of bandwidth, while ensuring that the devices can operate at a lower cost with greater power efficiency.
The smart home market is rapidly gaining traction with consumers, largely in part to accessibility of Bluetooth connectivity, as the Bluetooth technology is already integrated into millions of smartphones, tablets and other portable devices. What many consumers don’t realize is that as of 2008, there were already more "things” connected to the Internet than people in the home, and that 2014, this segment was already accounting for roughly $79 billion of the entire IoT market. Further enhancements to the technology – including updates to Internet Protocol version 6 (IPv6) – have made it possible for sensors to communicate more seamlessly with control devices and interfaces, as well as easily transfer data to the cloud for analysis. As more consumers become aware of just how seamlessly connected their homes already are – and of the numerous opportunities available for them to expand on their IoT initiatives – this corner of the market is projected to account for $490 billion of total IoT revenue by 2020.
While much of the conversation regarding the IoT has been focused around consumers, the industrial IoT requires a big data approach that will allow companies to drive and optimize their operational efficiencies over a global communication network. Big data analytics promises enhanced process efficiency, from managing assets, to tracking usage and consumption and monitoring the health and safety of its workers. This area of the larger IoT market will potentially account for $151 billion in IoT revenue by 2020, with improvements to industrial processes trickling down to greater savings for both industrial manufacturers and the customers they serve.
Wherever you land on the spectrum of IoT stakeholders, know that it’s all made possible thanks to products like our latest Bluetooth low energy SoC, the DA14681, which offers unparalleled integration and flexibility into a wide array of IoT devices. This and the other SmartBond products in our product portfolio will be crucial components of the IoT future.