Internet of Things is one of the booming technologies among the blockchain, AI and smart technologies. There are new exciting IoT solutions coming with ever increasing speed; created to solve the major problems of our time like climate change as well as ease the everyday life on the Earth.
A brief look at the blockchain, cryptocurrency and AI market before we start on IoT. Important ones to mention as with this trio, we have a really strong combination of technologies with the potential to make a difference.
The cryptocurrency market boomed last year and was heading towards 1 trillion before this year downtrend which has led the cryptocurrency markets to come down to 200 billion USD. Cryptocurrency market is still 5 times up from last year lowest despite the massive drop of over 70%.
The size of the industry is growing with initial coin offerings ICO’s raising millions from the market reaching total 20 billion USD this year compared to the last year 6 billion USD. World Economic Forum has estimated that there would be total 10 trillion USD 10% of the global GDB 100 trillion USD generated through blockchain related technologies by the year 2027.
Artificial Intelligence AI is making machines to function like humans which will eventually unleash the hand of people from the daily tasks to more productive ones. AI is already making our daily life easier by providing answers and completing simple tasks. Artificial Intelligence is forecasted by McKinsey to generate between 3,5 and 5,8 trillion USD annually across 9 business functions in 19 industries by 2025.
Internet of Things
Here is a great quote from the Kevin Ashton who has conceptualized the Internet of Things and featured by many as the father of IoT:
“If we had computers that knew everything there was to know about things — using data they gathered without any help from us — we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best. We need to empower computers with their own means of gathering information, so they can see, hear and smell the world for themselves, in all its random glory. RFID and sensor technologies enable computers to observe, identify and understand the world — without the limitations of human-entered data.” — Kevin Ashton Father of IoT
We are getting closer to Ashton’s dream every day. The number of IoT devices is growing at the ever-increasing speed with cars, clothes, watches and almost anything is being connected to the internet nowadays. According to Statista, there will be over 70 billion Internet of Things devices connected by the year 2025. (Graph below)
We can see the increasing development of IoT solutions from big companies like IBM, Microsoft, Intel, Oracle… New innovative solutions are gaining publicity and already solving real problems we face in our everyday life. Internet of Things combined with other smart technologies will have a major role in saving our planet and building sustainability on Earth. As a result, the Internet of Things market is seeing high growth rates, therefore, attracting a huge amount of investments. Almost 100 billion is floating to IoT markets yearly and annual revenues for IoT companies are forecasted to exceed 450 billion by the year 2020 (Bain)
Here is segmentation of annual revenues in different sectors by Bain:
Fortunately, these investments are expected with some high result when we look into the market potential of IoT.
There could be 11,1 Trillion USD generated a year in 2025 by linking the physical and digital world According to McKinsey’s report. It is a huge number when comparing global GDP of 100 trillion USD. Moreover, according to the Business Insiders Intelligence report Internet of Things 2018, there could be nearly 15 trillion aggregate IoT investment by 2025.
Spending on IoT is seeing growth as well with Worldwide Semiannual Internet of Things Spending Guide report estimating the spending increase to over 1 trillion USD yearly by 2021.
Impressive numbers but we are already seeing many new innovations coming from the big companies as well as from the new startup companies. Innovations that are solving actual problems and providing a comfortable life for all.
- McKinsey & Company
- The World Economic Forum
- * Statista – The Statistics Portal for Market Data, Market Research and Market Studies
- Enabling Digital Transformation | Business Insider Intelligence
- Bain & Company
- Cryptocurrency Market Capitalizations | CoinMarketCap
Internet of Things booming 15 Trillion Market was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.