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25 killer stats that tell you what to expect from the Internet of Things

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In 1943 Thomas Watson, president of IBM, said: “I think there is a world market for maybe five computers.”

By 2020 he will be out by 40,899,995 according to ABI Research.

Or maybe he’ll be closer. He might only be 25,999,995 out if you prefer Gartner’s projections.

Watson was thinking about computers when these machines filled rooms.

But now it’s possible to put a computer on a sliver of silicon – and thereby turn any ‘thing’ into a connected device.

As we approach the end of this decade the market for connected devices (or machine to machine or Internet of Things – whatever you call it) is set to explode.

But in 2015, it’s the hype that’s exploding.

While it’s true that sensors are slowly making their way into previously ‘dumb’ industrial objects – meters, elevators, heating systems – and consumer wearables are moving into the mainstream, we’re still a long way from a connected world.

So, will the IoT market be like the smartphone and maraud its way to ubiquity inside five years?

Or will its progress be delayed by connectivity issues, security scares and consumer mistrust?

No one knows for certain. But plenty are willing to speculate.

We trawled the wires to see what they analysts and experts are saying about the IoT market, and here’s what we found…

1. The Industrial IoT market was worth $181.29 billion in 2013, and will reach $319.62 billion at a CAGR of 8.15 per cent from 2014 to 2020.

source: MarketsAndMarkets

2. The Internet of Things will comprise 26 billion installed units by 2020, generating $300 billion, mostly in services.

source: Gartner

3. The ‘global economic value-add’ of the IoT market will be $1.9 trillion by 2020.

source: Gartner

4. The impact of the Internet of Things on the global economy might be as high as $6.2 trillion by 2025.

source: McKinsey

5. Global cellular M2M connections will reach close to one billion by 2020, growing at 25 per cent per year between 2015 and 2020. But if certain conditions are met, it could be 2bn.

source: GSMA

6. The Asia/Pacific Internet of Things industry will grow its number of connected “things” from 3.1 billion to 8.6 billion by 2020. Over this same period, the market value will increase from $250 billion to $583 billion.

source: IDC

7. Samsung will spend $100 million to develop an open IoT framework for connecting cars, wearables, and home appliances. It says 90 per cent of its products will be able to connect to the Web by 2017.

source: Samsung

8. There are 1,103 IoT start-ups listed on Angelist. Their average valuation is $4.8m, and 1,932 individuals have invested in them.

source: Angelist

9. VCs contributed over $300 million in 97 venture rounds for IoT startups by Q4 2015.

source: TechCrunch

10. Jasper, which describes itself as the ‘on switch’ for the Internet of Things may be the most invested-in IoT specialist. It has received $205.3 million in six rounds.

Source: CrunchBase

11. The installed base of active wireless connected devices will exceed 16 billion in 2014, with 40.9 billion forecasted for 2020.

source: ABI Research

12. Smartphones, PCs, and other ‘hub’ devices represent 44 per cent of IoT devices, but by 2020 their share is set to drop to 32 per cent. Thus, 75 per cent of the growth between today and the end of the decade will come from non-hub devices: sensor nodes and accessories.

source: ABI Research

13. The worldwide installed base of smart meters will grow from 313 million in 2013 to nearly 1.1 billion in 2022.

source: Navigant

14. By 2023 there will be almost 7.2 billion M2M connected consumer electronic devices in use worldwide. The majority will be connected audio visual sources (2.8 billion) and displays (1.9 billion). The total market for M2M connected consumer electronics will reach $697 billion by 2023.

source: Machina Research

15. The worldwide IoT market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020 with a compound annual growth rate (CAGR) of 16.9 per cent.

source: IDC

16. Barcelona is saving $58 million a year thanks to has connected water management alone. Meanwhile connected street lighting has reduced costs by a third, saving Barcelona $37 million annually. The city estimates that the IoT has created 47,000 jobs over the past seven years.

source: World Economic Forum

17. The total market opportunity of the ‘Internet of Everything’ is $19 trillion – $14.4 trillion in private sector and $4.6 trillion in public sector.

Source: Cisco CEO John Chambers

18. “By 2017, that IoT market will be five to 10 times more impactful in one decade than the whole Internet has been.”

Source: Cisco CEO John Chambers

19. There will be almost 1 billion cellular M2M connections worldwide by 2020. In 2013 there were just 172 million.

source: Beecham Research

20. The wearable tech market is on course to be worth $3bn by 2018 – with the potential to be worth $9.3bn by 2018.

source: Beecham Research

21. Wearables shipments will hit 75 million in 2015, up 158 per cent on 2014. Apple Watch will account for over a quarter of wearables shipments in 2015.

22. By 2018 almost 350 million wearable devices will be in use worldwide

source: CCS Insight

23. There will be over 300 industry sectors within the overall IoT market

source: Beecham Research

24. By 2020, there will be a quarter of a billion connected vehicles on the road.

source: Gartner

The installed base of IoT devices by category by 2020 will break down as follows: Automotive (3.51bn), Consumer (13.1bn), Generic Business (5,15bn), Vertical Business (3,16bn).

source: Gartner