Internet of Things to grow 35 percent each year

$ 1.16 billion by 2020

The Internet of Things (IOT) platform market is expected to grow 35 percent annually to $ 1.16 billion by 2020, according to Verizon’s State of the Market: Internet of Things 2017 report.

The report finds that the biggest growth will be in business-to-business applications which can generate nearly 70 percent of potential value enabled by IoT.

More than 73 percent of executives either researching or currently deploying IoT. Manufacturing, transportation and utilities make up the largest percent of investments, while insurance and consumers represent the fastest areas of spending growth.

Currently there are 8.4 billion connected “things” in use in 2017, up 31 percent from 2016, and network technology, cost reductions and regulatory pressures driving adoption, business leaders are not only paying attention, they’re getting in the game the report said.

While the opportunity for revenue growth is the biggest factor driving IoT adoption, regulatory compliance remains a driving factor behind enterprise IoT implementation. Standards, security, interoperability and cost make up over 50 percent of executive concerns around IoT. These uncertainties are holding businesses back from full IoT deployment, with many still in proof-of-concept or pilot phase.

Early adopters seem focused on proving out simple use cases to track data and send status alerts, just starting to realize the full value IoT has to offer in driving growth and efficiencies across business, the report said.

The report’s author Mark Bartolomeo, VP of IoT Connected Solutions at Verizon said: “Over the past year, industry innovators in energy, healthcare, construction, government, agtech and beyond have not only piloted, but in many cases, deployed IoT technology to improve business efficiencies, track and manage assets to drive value to the bottom line. In 2017, advancements in technology and standards, coupled with changing consumer behaviours and cost reductions, have made IoT enterprise-grade, and it’s just the tip of the iceberg in driving economic value across the board.”