New data from GSMA Intelligence projects that the global Internet of Things (IoT (opens in new tab)) market will be worth $1.1tn in revenue by 2025 as market value shifts from connectivity (opens in new tab) to platforms, applications and services.
By that time, there will over 25bn IoT connections driven by growth in the industrial IoT market with the Asia Pacific region forecast to become the largest global IoT region in terms of both connections and revenue.
Principal Analyst, IoT at GSM Intelligence, Sylwia Kechiche highlighted how the industry will move away from connections to addressing the specific needs of businesses, saying:
“As the number of connected consumer devices and industrial machines grow rapidly, the IoT ecosystem will evolve to become a trillion-dollar market over the course of the next decade. But the IoT revenue opportunity is shifting away from simply connecting devices to addressing specific sectors with tailored solutions, and successful ecosystem players will need to adapt their business models in line with these market trends.”
Though connectivity revenue will grow over the period, it will only account for five per cent of total IoT revenue opportunity by 2025. As a result, operators need to expand their capabilities beyond connectivity to capture a greater share of market value. However, a number of operators have already addressed this by creating dedicated IoT business units and service lines.
The platforms, applications and services segment will continue to increase as a share of overall IoT revenue and will capture 68 per cent of the total by 2025.
GSMA Intelligence forecasts that the total number of IoT connections will reach 25.2bn in 2025, up from 6.3bn in 2016. Industrial IoT will account for more than half of the connections total while advancements in the smart home market will help the number of IoT connections in the consumer segment reach 11.4bn.
The Internet of Things is here to stay and if GSMA Intelligence is correct, the IoT market is set to grow considerably in the coming years.
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