China and the U.S. will lead the market in terms of internet of things connections and revenue
Global internet of things (IoT) connections will reach 27 billion in 2025, up compared to 6 billion connections last year, according to a recent report by Machina Research.
According to the study, global IoT connections will grow at a CAGR of 16% during the 2015-2025 period.
The study revealed that 71% of all IoT connections are currently connected using a short range technologies like Wi-Fi, Zigbee or in-building PLC.
Cellular-based internet of things connections will grow from 334 million at the end of 2015 to 2.2 billion by 2025, of which the majority will be LTE. Machina Research also said that 45% of those cellular connections will be in the “connected car” segment.
China and the U.S. will dominate the IoT market by 2025. China will account for 21% of global IoT connections, followed by the U.S. with 20%. In terms of revenues, the U.S. market will occupy the leading position with 22% followed by China with 19%. The third largest market will be Japan with 7% of all connections and 6% of global revenue.
The total IoT revenue opportunity will be $3 trillion in 2025, up from $750 billion in 2015. Of this figure, $1.3 trillion will come from end users in the form of devices, connectivity and application revenue. The remainder comes from upstream and downstream IoT-related sources such as application development, systems integration, hosting and data monetization.
“To take advantage of the opportunities in IoT, suppliers need to understand the key market dynamics and their competitive environment, and develop best practice,” Machina Research CEO Matt Hatton said. He called the projections “eye-catching and the opportunity is substantial.”
