Proving the Business Case for the Internet of Things

IoT market to grow one fifth this year, predicts IDC

Steve Rogerson
May 21, 2015
 
The worldwide IoT market is expected to grow 19% in 2015, led by digital signage, according to a new forecast from International Data Corporation (IDC). The second annual forecast focuses on growing IoT use in 11 vertical industries, including consumer, retail, healthcare, government, manufacturing and transportation, while also sizing IoT opportunities for 25 vertical-specific use cases.
 
Unlike any other research in the industry, the forecast specifically highlights worldwide spending across IoT use cases, including smart appliances, automated public transit, remote health monitoring, digital signage, connected vehicles and air traffic monitoring. The spending model was designed to help vendors understand the industry-specific opportunity for IoT technologies today.
 
The IoT market in manufacturing operations will grow from $42.2bn in 2013 to $98.8bn in 2018, a five-year compound annual growth rate (CAGR) of 18.6%. Growth will be driven by on-going efforts to increase efficiency and link islands of automation.
 
Digital signage use in retail outlets will grow from $6.0bn in 2013 to $27.5bn in 2018, a 35.7% five-year CAGR, as retailers continue to digitise the consumer experience.
 
The hottest US market is in connected vehicles, with 34.8% year-over-year growth anticipated in 2015.
 
"Working in concert with both IDC's technology and regional analysts, we have built IoT market models for key vertical-specific use cases from the ground up,” said Bob Kraus, senior research analyst at IDC. “This forecast is an invaluable tool for those business leaders evaluating the vendor opportunities in IoT for a 12-layer technology stack, which includes modules, sensors, software, installation, on-going services and connectivity."
 
A forecast update is planned for November 2015 and this will evaluate additional vertical-specific use cases, including smart agriculture.