The Internet of Things (IoT) surpassed the human population in number more than a decade ago. And every fact and figure, trend, study and sign points to the same thing–its growth isn’t slowing down, not even a bit. To illustrate this, we compiled a collection of IoT statistics in this article.
After reading this article, you should have a better grasp of the role IoT can play in the business landscape, the best artificial intelligence software you can use to harness this, as well as how other companies are using this technology. After all, only a handful of things can compare to this technology’s growth. The numbers for 2019 are enormous. But it still doesn’t hold a candle to what the future of IoT is shaping up to be.
Different research bodies and organizations conducted intensive studies to accurately measure the IoT market. The results vary, but they all have one thing in common–the numbers always present a staggering amount. This collection of IoT market statistics provides good insight into how active this industry is.
$1.7 trillion – the forecast net worth of the global IoT market in 2019. (Statista)
$151 billion – the projected global market worth of IoT in 2018 by IoT Analytics. This is 37% higher than the previous year. (IoT Analytics)
The future is bright for this industry. IoT software market size will continue to grow both in the short- and long-term. It promises to be ubiquitous, with IoT devices installed and embedded in practically all the technologies that humans interface with. Also, IoT is usually deployed together with the tools for artificial intelligence out there in the market. This allows analysts to generate more insights from complex data through machine learning tools and predictive analytics. Thus, it is good to note that IoT use and adoption grows in relation to that the adoption rate of AI as well. Here’s a list that details how IoT devices would impact different sectors.
1 million IoT devices are going to be purchased and installed each hour in 2021. Now wrap your head around that. (Gartner)
3.5 billion – number of cellular devices that will include IoT connections by 2023. (Ericcson)
2.5 billion to 5.4 billion – the increase of B2B IoT device connections from 2017 to 2020, according to Sparklabs. Examples of these devices include industrial sensors and workspace management apps. (Halberd Bastion)
15.4 billion – the number of devices that are going to be connected by 2015. This figure is expected to grow to 30.7 billion and 75.4 billion in 2020 and 2025, respectively. (IHS Inc.)
71.6% is the Compound Annual Growth Rate (CAGR) of smart clothing (IoT connected) units sold. That’s such a huge leap from 968,000 in 2015 to 24.75 billion in 2021. (Report Buyer)
75% of new cars will include a built-in IoT connectivity by 2020. (Business Insider)
$117 billion – total net worth of the connected health care market in 2020. (Forbes)
Best Artificial Intelligence Software
Cloud Machine Learning Engine is a powerful cloud-based predictive analytics modeling software. It comes with features like Cloud Datalab and Prediction Services to help you make sense of your IoT data and build predictive models and gain useful business insights.
Azure Machine Learning Studio is a top machine learning platform that helps its users create applications for business intelligence among other uses. It has powerful web-based modules for experiments, trained models, projects, and APIs housed in its easy drag-and-drop interface.
Salesforce Einstein is a highly-specialized AI platform dedicated to sales data processing. Its modules can help you make sense of IoT data and apply insights and models from the program to real-world uses to boost your ROI.
IBM Watson is a popular AI platform for research and discovery. It sports features like visual recognition, a language translator, and natural language classifier that is perfect for many IoT data uses.
Nvidia Deep Learning AI is another popular platform for AI and IoT data analytics. With powerful features like inference creation and testing, deep learning training, and AI exploration tools, it makes generating insights from connected devices easier for analysts.
IoT Big Acquisition Statistics
If we’re going to believe in any of the IoT market analysis conducted by various organizations, one thing’s clear. The IoT market is going to get a lot bigger than it is right now. Therefore, it comes as no surprise that these huge companies are already starting to invest in this technology. There has been a good number of corporations that purchased smaller companies in the past few years. Some of the most notable ones are presented in the statistics below.
$3.2 billion – the amount with which Google purchased NEST in 2018. (VCCircle)
$1 billion – in 2018, Amazon acquired Ring for this price. (Adweek)
$32 billion – the whopping sum with which Softbank purchased ARM in 2016. (SDxCentral)
$1.4 billion – the amount paid in cash by Cisco to acquire IoT startup company, Jasper Technologies, in 2016. (SDxCentral)
$8 billion – how much Samsung invested to acquire a connected car technology company in 2017. (CRN)
$2.4 billion – the acquisition fee of Verizon to get the rights of Fleetmatics, a fleet management company, in 2016. This is the most notable one out of all this telco company’s IoT-related acquisitions. (IoT World Today)
IoT Challenges Statistics
This technology, however large its market potential is, poses some issues. Human beings’ natural resistance to change is one. However, there are other serious problems that surface; the more IoT data is presented. Both the critics and supporters of this industry have shared sentiments regarding these challenges. And we have a list of statistics to show for it. Some of the most important issues that must be addressed before truly enjoying every benefit that IoT products bring include:
40% of rural areas either lack reliable internet connection or any connectivity at all. (Brookings Institution)
60% of Americans never update their router’s firmware. This adds to the security threats that IoT technology faces. (Bitdefender)
90% of developers believe that IoT products aren’t equipped with sufficient security features. (Innovation Enterprise)
85% of developers felt the pressure to finish an IoT app and sell it to the market even if security concerns are still present. (Innovation Enterprise)
70% of IoT devices found on the market are vulnerable to security issues, to begin with. (Entrepreneur Media)
64% of Americans have personally experienced major data breaches. Some of them even say that the federal government and social media can’t be trusted with their personal info. (Pew Research Center)
75% of organizations will not benefit from the full potential of the IoT technology they’re using. That’s due to the lack of data science specialists. (Gartner)
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Most Common Types of Personal Data Breaches
Most Common Types of Personal Data Breaches Fraudulent credit card charges: 41%
Fraudulent credit card charges
Most Common Types of Personal Data Breaches Compromised sensitive information: 35%
Compromised sensitive information
Most Common Types of Personal Data Breaches Hacked email accounts: 16%
Hacked email accounts
Most Common Types of Personal Data Breaches Compromised Social Security number: 15%
Compromised Social Security number
Most Common Types of Personal Data Breaches Credit card used to take loans: 14%
Credit card used to take loans
Most Common Types of Personal Data Breaches Impersonated to file fraudulent tax returns: 6%
Impersonated to file fraudulent tax returns
Source: Pew Research, 2016
IoT Benefits Statistics
Phones aren’t the only smart thing present these days. There are also smart homes, smart cities, smart cars, and others. IoT is such a big industry because of the wide application it has. The convenience it brings and the lives it saves are just a few of its benefits. So needless to say, IoT market size is varied, enormous, and steadily growing. Here’s a list of statistics showing a few of the benefits brought by this technology.
90% of senior executives in telecom, media, and technology companies consider IoT growth as critical to their business. (Statista)
$37 million – yearly savings of the city of Barcelona thanks to smart lighting. Not to mention the 47,000 new job opportunities it opened. (Data-Smart City Solutions)
80% of retailers will use IoT to customize store visits by 2021. (SAS)
66% of cities in the US are making investments in smart city IoT technology. This includes intelligent traffic signals, smart meters, and Wi-Fi kiosks. (TechRepublic)
Healthcare organizations can save up to 25% in business costs, with the aid of IoT edge devices. (Health IT Analytics)
250 million connected cars will be present in 2020. Consequently, IoT technology will play a huge role in making safety and interoperability measures. (Gartner)
IoT Spending Statistics
At this point, we’ve shared enough IoT reports, and we couldn’t stress enough how big a market this is. In this light, spending a huge amount on this industry isn’t a surprising action at all. Government agencies, private companies, and huge corporations all agree to this as well. To illustrate, the next set of statistics shows just that.
$1.2 trillion – the predicted technology spending on IoT by 2022. That’s a 13.6% CAGR from 2017 – 2022. (IDC)
Consumers, governments, and businesses will have a combined investment of $1.6 trillion for installing IoT solutions in 2020. (Business Insider)
27.04% – CAGR of predicted global spending on Industry 4.0 services and products. It’s a leap from $119 billion in 2020 to $310 billion in 2023. (iot-analytics.com)
$6 trillion – the total business spending on IoT solutions by 2021. (Business Insider)
Internet of Things is Inevitable
Whether we are ready or not, IoT is definitely finding its way into our lives. The presented IoT market research reflects this. With billions of dollars being spent on it, there is no telling where the future would lead.
It’s not a bad thing, however, because this innovative technology can bring a lot of positive changes. For us personally, it could provide a lot of conveniences.
For businesses, IoT, together with CRM can influence customer engagement. Healthcare could save more lives, and more smart cities can be developed further. These examples aren’t even scratching the surface of what the Internet of Things can do. For better or worse, it’s capable of a lot more.
B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. From pitch deck to exit strategy, he is no stranger to project business hiccups and essentials. He has been involved in a few internet startups including a digital route planner for a triple A affiliate. His advice to vendors and users alike? "Think of benefits, not features."
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