Billions and billions of IoT connections by 2016: Gartner

• Number of connected devices to reach 20.8bil by 2020
• Services are the real driver of value in the IoT, says VP

ANALYST and research firm Gartner Inc forecasts that 6.4 billion connected ‘things’ will be in use worldwide in 2016, up 30% from 2015.
 
This will reach 20.8 billion by 2020. In 2016, 5.5 million new things will get connected every day, Gartner said in a statement.
 
Gartner estimates that the Internet of Things (IoT) will support total services spending of US$235 billion in 2016, up 22% from 2015.
 
Services are dominated by the professional category, in which businesses contract with external providers in order to design, install and operate IoT systems.

However, connectivity services (through communications service providers) and consumer services will grow at a faster pace, it added.
 
“… services are the real driver of value in the IoT, and increasing attention is being focused on new services by end-user organisations and vendors,” said Jim Tully (pic), vice president and distinguished analyst at Gartner.
 
“Aside from connected cars, consumer uses will continue to account for the greatest number of connected things, while enterprise will account for the largest spending,” he added.

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Gartner estimates that four billion connected things will be in use in the consumer sector in 2016, and will reach 13.5 billion in 2020 (see Table 1).
 

 

 
In terms of hardware spending, consumer applications will amount to US$546 billion in 2016, while the use of connected things in the enterprise will drive US$868 billion in 2016 (see Table 2).

 
In the enterprise, Gartner considers two classes of connected things. The first class consists of generic or cross-industry devices that are used in multiple industries, and vertical-specific devices that are found in particular industries.
 
Cross-industry devices include connected light bulbs, HVAC and building management systems that are mainly deployed for purposes of cost saving.
 
The second class includes vertical-specific devices, such as specialised equipment used in hospital operating theatres, tracking devices in container ships, and many others.
 
“Connected things for specialised use are currently the largest category – however, this is quickly changing with the increased use of generic devices.
 
“By 2020, cross-industry devices will dominate the number of connected things used in the enterprise,” said Tully.
 
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