The Business Insider’s research service BI Intelligence has been tracking the growth of the Internet of Things industry for more than two years, specifically how consumers, businesses, and governments are using the IoT ecosystem. John Greenough and Jonathan Camhi of BII have created the infographic to show how the IoT ecosystem functions and to demonstrate how the IoT is poised to explode by 2020.
According to the BII, the market drivers are expanded internet connectivity, high mobile adoption, low-cost sensors, large IoT investments; while the market barriers are security and privacy concerns, implementation problems, technological fragmentation.
The research service prognoses that there will be 24 billion IoT devices installed by 2020, $6 billion will be invested on IoT solutions over the next five years. Furthermore, total investments over the next five years will generate $13 trillion by 2025.
BI Intelligence has analyzed the entities using IoT ecosystems: businesses, governments and consumers. It is expected that 11.2 billion devices will be installed by businesses by 2020, $3 billion will be spent during the years 2015-2020, ROI is estimated to be $7.6 billion during the years 2015-2025. While governments will install 7.7 billion devices by 2020, spend $2.1 billion during the years 2015-2020 and have $4.74 ROI during the years 2015-2025. Consumers will install 5 billion devices by 2020, will spend $900 million during the years 2015-2020 and ROI is calculated to be $400 million during the years 2015-2025.
The BII researchers believe that many industries will benefit from utilizing the IoT ecosystems. For instance, 35% of manufacturers already use smart sensors. 74% of insurance executives said they believe the IoT will disrupt insurance within the next five years. It is estimated that 5.4 million IoT devices – Internet connected sensors used to provide environmental metrics – will be used on oil extraction sites by 2020.
Connected cars are a top IoT device: there will be over 220 million connected cars by 2020. Spending on drones will reach $8.7 billion in 2020; 126,000 military robots will be shipped by 2020. 75 million IoT devices will be shipped for agricultural uses – sensors placed in soil to track acidity levels, temperature, and variables that help farmers increase crop yields.
Furthermore, municipalities worldwide will increase their spending on IoT systems from $36 billion in 2014 to $133 billion in 2019. This investment is believed to generate $421 billion in economic value for cities worldwide in 2019. Energy companies throughout the world will be installing nearly 1 billion smart meters by 2020.