The global market for the Internet of Things is anticipated to almost triple by 2020, achieving $1.7 trillion, the research company International Data Corp stated.

According to a recent research, conducted by International Data Corp, the world market for Internet of Things will reach $1.7 trillion by 2020, representing a compound annual growth rate of 16.9%. The upturn is attributed to the increasing production of Internet-connected household devices.

Last year, the IoT market was estimated at $655.8 billion. International Data Corp predicts that the average number of connected devices will amount to over 29.5 million in 2020, 19.2 million higher than in 2014.

“Devices, connectivity, and IT services will make up the majority of the IoT market in 2020,” the company stated. “Together, they are estimated to account for over two-thirds of the worldwide IoT market in 2020, with devices (modules/sensors) alone representing 31.8% of the total.”

The value of the IoT market in the APAC region is forecast to slightly decrease from 58.3% in 2014 to 51.2% in 2020. The increasing population in China, which leads to the growing usage of mobile devices in the country, is expected to encourage further development of new IoT devices.

The countries of Western Europe are expected to demonstrate the growth of the revenue share from 12% to 19.5% over the reviewed period. Meantime, North America is set to hold a share of over 26%.

“While wearable devices are the consumer face of the Internet of Things, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets,” senior vice president at International Data Corp, Vernon Turner, commented.

“The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the IT status quo,” he added.

Such tech giants as GoogleFacebook, Intel, Samsung Electronics and Cisco Systems are actively working on the development and production of new network-connected home appliances. Today, tech companies are betting on the IoT market, which is becoming more attractive as a potential source of revenues.

Last week, Google has introduced its new Brillo project, an Android-based operating system that is designed to connect low-power home appliances.

Embracing opportunities within the IoT market, Intel has announced the acquisition of Altera, a US-based producer of programmable devices. The deal was valued at $16.7 billion, the company’s largest purchase by far.

There are definitely a lot of benefits of integrating IoT devices in our lives. They can be useful in many areas, including security, health, shipping and energy consumption. Moreover, they could significantly improve the lives of people in older age.

“These tech-enabled services will support many people who live alone in retirement, often at a distance from family,” the WSJ writes. “The Internet of Things will create a new line-item of monthly costs in our retirement budgets. These will be expenses that are neither strictly health care nor communications, but an entirely new price of living well in older age.”

“Tomorrow’s retirement living will be shaped by technology. While high-tech will provide incredible benefits, it will also bring new costs, both financial and social, that should be considered as a new part of retirement planning,” WSJ says.

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