The Internet of Things continues to expand rapidly, and the smart home will be one of the keys to further growth through the 2020s, according to new research from Strategy Analytics.
The report found that nearly 20 billion IoT and connected devices will be deployed worldwide by the end of this year, and a further 10 billion will be added over the next four years.
Enterprise IoT has been the key sector in recent years but longer term projections suggest that the smart home is likely to become a major generator of connected and IoT device deployment growth during the 2020s, taking the total figure towards 50 billion.
Other key findings:
- Smart home devices will overtake smartphones by 2021 as a share of deployed connected/IoT devices
- The Internet of Things will grow by 17% in 2017, but annual growth will decline to 9% by 2021
- Enterprise IoT currently accounts for 52% of the total connected/IoT installed base.
“The original connected device, the PC, now represents only 5% of the total market, which illustrates how the internet has permeated so many aspects of our lives,” says David Mercer, principal analyst and the report’s author.
“The smart home is only at the beginning of its evolution, and as homes install increasing numbers of connected devices it is set to become one of the largest segments in the wider internet of things over the coming decade,” comments Bill Ablondi, Director of Smart Home Strategies.
Meanwhile, IHS Markit says that the number of connected IoT devices worldwide will jump 12% on average annually, from nearly 27 billion in 2017 to 125 billion in 2030.
In a new free ebook [PDF],” IHS Markit says global data transmissions are expected to increase from 20 to 25% annually to 50% per year, on average, in the next 15 years.
“The emerging IoT movement is impacting virtually all stages of industry and nearly all market areas — from raw materials to production to distribution and even the consumption of final goods,” said Jenalea Howell, research director for IoT connectivity and smart cities at IHS Markit. “This represents a constantly evolving movement of profound change in how humans interact with machines, information and even each other.”
IHS Markit has identified four foundational, interconnected pillars at the core of the IoT movement: connect, collect, compute and create. The entire IoT is built upon these four innovational pillars:
- New connections of devices and information
- Enhanced collection of data that grows from the connections of devices and information
- Advanced computation that transforms collected data into new possibilities
- Unique creation of new interactions, business models and solutions.