Internet of Things market to reach $1.7 trillion by 2020: IDC

The global Internet of Things market will grow to $1.7 trillion in 2020 from $655.8 billion in 2014, research firm IDC says, as more devices come online and a bevy of platforms and services grow up around them.

The firm predicts that the number of “IoT endpoints,” connected devices such as cars, refrigerators and everything in between, will grow from 10.3 million in 2014 to more than 29.5 million in 2020.

Devices, connectivity and IT services are expected to account for the majority of the global IoT market in 2020, with devices alone accounting for 31.8% of the total. Purpose-built platforms, storage, security, application software and “as a service” offerings are expected to capture a greater percentage of revenue as the market matures.

The Asia Pacific region captured around 58.3% of the revenue from IoT in 2014 and will shrink slightly to 51.2% in 2020. In China, a large and growing population using mobile devices alongside a push to make manufacturing practices more efficient may spur a significant number of new devices and IoT standards, said Vernon Turner, IDC’s research fellow for the Internet of Things. Well networked countries like South Korea and Singapore may also ramp up smart city initiatives.

North America is expected to maintain revenue share of just more than 26% over the forecast period, while the share in Western Europe is expected to jump from 12% to about 19.5%.