Skip to main content

Internet of Things investment will run to $140bn in next five years

The Internet of Things (IoT) is one of the, well, next big things which is going to transform the world alongside the advancement of wearables, smart home gadgets, smart cars and so forth.

Plenty of analyst reports have laid out arguments for how the IoT will change consumers’ lives and the way businesses work, and Gartner for one sees the IoT expanding to 25 billion connected devices by 2020.

And now a new report from BI Intelligence has looked at the sectors which are driving growth in enterprise IoT, and has named those top areas of industry.

We can expect massive investment in IoT solutions, in fact the estimate runs to $140 billion (£90 billion) over the next five years, with manufacturing firms laying down much of that dough. Factories will be where IoT really makes its presence felt in industry, with connected machines expanding at a fast rate. Indeed, 18 per cent of industrial machinery already uses IoT devices, so claims a SAS study, in the battle for greater efficiency and cost savings.

Another big arena for IoT which the report singles out is the automotive industry, with 17 per cent of companies using IoT devices on their vehicle production lines (which is no surprise, as the car industry has always been very tech-focused and keen on its automation).

And the third largest industry sector for IoT? That would be IT (and telecommunications).

As we noted in a recent feature on the IoT, Forrester Consulting observed: “We are at the tipping point for broader IoT adoption with 53 per cent of organisations planning to implement an IoT solution in the next 24 months.”