Internet of Things, IoT, M2M Global Market

Main section: Internet of Things (IoT)

IoT-platforms

• IoT-platforms

Internet of Things in Telecom

• Internet of Things in Telecom

IIoT - Industrial Internet of Things

A separate article is devoted to the review of the industrial Internet of Things:

• IIoT - Industrial Internet of Things

Chips for IoT devices

Main article: Chips for IoT devices

The typology of government programs to support IoT abroad

Mergers and Acquisitions in the Internet of Things

Main article: Mergers and acquisitions in the Internet of Things

2024: Top emerging IoT technologies named

Some of the key areas of development of the global Internet of Things (IoT) market are artificial intelligence technologies and the use of 5G communication networks. This is stated in the Omdia review, which TAdviser got acquainted with in early August 2024.

It is noted that against the background of stabilization of the macroeconomic situation, a favorable climate is being formed for the further growth of the IoT industry. Implementing appropriate solutions helps companies address supply chain challenges as well as achieve sustainable development goals by improving efficiency. Among the key areas of application of IoT systems are smart cities, self-driving cars, telemedicine and healthcare, smart agriculture, retail, manufacturing, etc. Omdia highlights the following emerging areas of the Internet of Things.

Artificial Intelligence and Machine Learning

These technologies help in the processing of huge amounts of data that are generated by IoT devices. The AI-based Internet of Things allows you to create smart machines with intelligent behavior that can make decisions with little or no human intervention. Neural networks will help ensure optimal use of resources, reduce energy consumption and reduce financial costs when implementing a variety of projects. Among the key areas in which AI can transform the IoT sector are named unmanned aerial vehicles, autonomous transport, product quality control, supply chains, risk management, etc. AI tools can be built into mobile gadgets, vehicles, medical diagnostics equipment, streaming video analytics systems, etc. In addition, the integration of AI algorithms plays an important role in ensuring the security of the Internet of things.

5G communication networks

Fifth generation mobile technologies provide higher data rates at low latencies. This makes it possible to analyze and manage large amounts of data collected by IoT devices. In addition, 5G networks contribute to the proliferation of self-driving cars, as well as the development of platforms such as remote monitoring, autonomous operations and accurate production. Due to the rapid increase in the number of IoT devices, traditional 4G networks struggle to cope with the processing of generated data, which stimulates the expansion of 5G infrastructure. Due to small delays, the efficiency of automation systems, telemedicine platforms, virtual and augmented reality services is increased.

Satellite communications

Omdia analysts believe that satellite data networks will help improve the resiliency of the Internet of Things. It is expected that spending in the relevant area will rise from $385 million in 2021 to $1.2 billion in 2027. Investment in satellite communications will grow amid geopolitical instability.

Overall, Omdia believes, IoT technologies are critical to the digital transformation of the business. The ability to access information from anywhere, at any time, from any device simplifies decision-making and increases transparency. On the other hand, there are certain problems. The Internet of Things accelerates automation, which can reduce the number of workplaces. Large amounts of data generated by IoT devices pose privacy risks. In addition, a hardware or software failure within a large-scale IoT infrastructure can lead to serious consequences and huge financial losses.^[1]

2023

The volume of the global satellite M2M market for the year increased by 7% to $5.36 billion

In 2023, the costs of the global M2M satellite communications market (machine-to-machine interaction) amounted to $5.36 billion. This is 7% more compared to 2022, when expenses were estimated at $5.02 billion. The industry is showing steady growth, as outlined in the Market Research Future review presented in mid-December 2024.

One of the main drivers of the market in question is the rapid development Internet of things (IoT). Enterprises from the spheres, agriculture health care production, transport and other areas are actively implementing IoT solutions, which creates a need for reliable data transmission channels. Satellite communication technology offers unique advantages, especially in environments where traditional networks have limited or no availability. Satellite platforms provide global coverage, ensuring that IoT devices can exchange information regardless of their geographic location. In addition, satellite communication allows projects to be implemented in hard-to-reach and underdeveloped areas.

The volume of the global satellite M2M market for the year reached $5.36 billion

Technological advances have a positive impact on the industry. In particular, low-orbit satellites provide lower latency and improved data rates compared to conventional spacecraft. Software Defined Networking (SDN) and Network Function Virtualization (NFV ) help create more flexible and scalable infrastructures.

Another stimulating factor is support from the state. Governments around the world are increasingly aware of the importance of satellite communications for applications ranging from national security to disaster management. The authorities are investing heavily in advanced satellite infrastructure and technology to provide reliable communications in remote areas. These initiatives not only stimulate market growth, but also encourage cooperation between the public and private sectors.

The authors of the study identify three key market segments: fully satellite communications, terrestrial communications and hybrid communications. The first direction in 2023 provided revenue in the amount of $2.14 billion. Next comes the terrestrial communications segment with an estimate of $1.62 billion. Another $1.6 billion came from hybrid solutions that combine the advantages of both satellite and ground communications, which allows you to meet the needs of various industries. The key players in the global market are:

• Thales Group;
• Satcom Direct;
• Hughes Network Systems;
• Orbcomm;
• Speedcast;
• Inmarsat;
• SES S.A.;
• Iridium Communications;
• OneWeb;
• Telesat;
• Iometrix;
• Globalstar;
• Cobham Limited;
• Intelsat;
• K Satellite.

In 2023, North America leads geographically with a cost of $2.4 billion: the dominance of the region is explained by the active introduction of satellite technologies in various sectors, including public administration. This is followed by the $1.4 billion Asia-Pacific region, driven by rapidly expanding telecommunications infrastructure in countries such as India and China. Europe closes the top three with an estimate of $1.2 billion.

In the future, positive dynamics are expected to remain. At the end of 2024, the volume of the global satellite M2M market is estimated at $5.72 billion. Market Research Future analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 6.78%. As a result, by 2032, costs on a global scale could rise to $9.67 billion.^[2]

The volume of the global OS market for the Internet of Things for the year reached $0.6 billion

In 2023, expenses in the global market of operating systems for the Internet of Things (IoT) amounted to about $0.6 billion. The need for such platforms is growing steadily, which is explained by the rapid development of the IoT ecosystem as a whole. Industry trends are addressed in the Market Research Future survey published in early December 2024. Read more here

The volume of the global market for binding software for the Internet of Things for the year reached $10.52 billion

In 2023, the cost of binding software for the Internet of Things (IoT) globally reached $10.52 billion. This sector is showing steady positive dynamics, as stated in the analytical review of Market Research Future, published in mid-November 2024. Read more here.

The number of IoT devices with eSIM in the world exceeded 1 billion

At the end of 2023, the number of [[Internet Internet of Things (IoT) devices |[[Internet of Things (IoT)|Internet of Things (IoT)]]]] with technology support eSIM (built-in SIM card) on a global scale exceeded 1 billion. The main application of such products is remote monitoring systems, as stated in the study by Omdia, the results of which were presented on February 14, 2024.

Analysts believe that the further implementation of eSIM in the IoT segment will be facilitated by the emergence of GSMA SGP.31/32 specifications, which will simplify the use of the technology in LPWAN (energy efficient long-range network) devices. With the ability to switch different eSIM profiles, enterprise users can effectively manage a large fleet of equipment and expand the coverage area.

The eSIM architecture assumes that all maintenance can be performed remotely: this is activation, deactivation, modification and deletion of profiles. Thus, the costs of logistics and maintenance of SIM-cards are reduced. The introduction of eSIM also improves the quality and reliability of IoT equipment: the device can be made completely sealed, since there is no need for physical access to the SIM card.

Omdia notes that the market is driven not only by improvements in eSIM technology itself, but also by other key trends driving the adoption of the IoT concept, such as 5G RedCap. RedCap's 5G technology, or Reduced Capability, reduces device requirements and at the same time provides enhanced capabilities over 4G, particularly faster data rates at lower latencies. At the same time, 5G RedCap networks are adapted specifically for IoT devices. In general, according to Omdia forecasts, by 2030 the number of IoT devices with eSIM in the world will reach 3.6 billion.^[3]

2022

The number of Internet of Things connections in the world increased by 18% to 14.3 billion

The number of connections to the Internet of Things in the world in 2022 increased by 18% compared to 2021 and reached 14.3 billion devices. This is evidenced by the data of the analytical company IoT Analytics, which were released on May 24, 2023.

According to the study, the world's five largest telecommunication operators China Mobile-,,, and China Telecom China Unicom Vodafone AT&T managed 84% of all global cellular IoT connections. The share of the leading China Mobile in 2022 was 15.3%. In second place is AT&T with 13.6% result.

Among the trends in the Internet of Things market, IoT Analytics noted the unification of LPWAN wireless technologies and the growth of satellite IoT connections, which are more stable and provide constant communication even during natural disasters.

Analysts believe that several factors contribute to the rise of the global IoT market, including the growing adoption of cloud computing, as well as the cheapness and low power consumption of IoT sensors. In addition, the concept of the Internet of Things involves high-speed network communications, which is also an additional positive factor for the development of the market. Another plus in favor of the IoT market is the implementation of smart cities projects around the world and the spread of 5G networks.

The fastest market is expected to Internet of Things grow in the Asia-Pacific region. In recent years, as reported in a study by IoT Analytics in May 2023, government initiatives in the field of smart cities and reducing carbon emissions have been actively promoted there. However, the lack of knowledge and expertise of end-users, as well as resources and infrastructure in developing countries, will constrain spending on the Internet of Things in the Asia-Pacific region, the researchers believe. ^[4]

Companies' spending on the Internet of Things increased by 21.5%

Global corporate spending in the Internet of Things segment in 2022 amounted to approximately $201 billion. This is 21.5% more than the result for the previous year. Such figures are reflected in the IoT Analytics report, released in early February 2023.

In the total amount of expenses, the lion's share was made up of hardware components and all kinds of devices: they accounted for 44% of costs. Another 27% brought IoT services, about 26% - related software. The contribution of security means is estimated at 3%. It is noted that in 2021 the volume of the global IoT industry amounted to approximately $165 billion, while the distribution of expenses in various market segments was comparable to 2022.

At the same time, it is noted that the growth rate of the IoT sphere was slightly lower than forecasts: analysts believed that by the end of 2022, costs would rise by 23%. The slowdown in the sector is explained by several reasons: sustainable inflation, high interest rates, as well as general macroeconomic difficulties are named among them. In addition, there were failures in supply channels and a shortage of electronic components. Against this background, companies began to invest more carefully in digital transformation and IoT projects. Yet in challenging times, the global IoT industry has maintained a steady growth trend.

IoT Analytics also notes that the market is affected by lower GDP growth. Globally, in 2022 it amounted to 3.4%, although experts from the International Monetary Fund (IMF) expected to fix the figure at 4.4%. In the largest regions, in terms of the introduction of IoT technologies - in China and North America - GDP growth in 2022 amounted to 3% and 2%, respectively. Nevertheless, analysts believe that in the future, costs in the global Internet of Things market will continue to increase.^[5]

Named the ten most promising directions for the development and application of Internet of Things technologies

The Institute for Statistical Research and Knowledge Economics (ISIEZ) of the Higher School of Economics, using the iFORA big data analysis system, has identified the top ten most promising areas for the development and application of Internet of Things technologies, which will be especially in demand in the world in 2023 and over the short and medium term horizon. The HSE announced this on January 19, 2023.

By 2030, the global demand for Internet Internet of Things (IoT) solutions will amount to more than 620 billion, dollars an increase of almost 3.5 times in 10 years. Companies are increasingly using these technologies the Russian : among them, according to IIEZ estimates, almost one in six (16.7%) already apply certain solutions.

The leader of the world agenda in this area of ​ ​ development is the medical Internet of Medical Things. The global market for solutions based on this technology has almost quadrupled in five years (to $158 billion in 2022).

Artificial Intelligence of Things and Satellite Internet of Things are developing very dynamically. Interest in these solutions may be associated with the need to overcome the challenges of the COVID-19 pandemic. The three technologies noted show significant growth potential and on the horizon of three to six years.

Individual developments are already firmly entrenched in the market. An example of such a mature enough technology is the Internet of Things in transport. Solutions based on it, in particular, contribute to improving energy efficiency and resource saving. At New Delhi International Airport, its implementation helped to reduce fuel consumption by 23% as part of the modernization of fire engines, on which sensors and sensors were installed to collect and process information (about operating hours, routes, the amount of resources consumed and carbon emissions, etc.).

The development and distribution of IoT in the world continues at a very intensive pace, and already in 2023 we can expect significant progress in economies on the path of digital transformation of business and everyday practices of the population. For example, medicine using remote monitoring and online consultation systems is becoming increasingly available, personalized and patient-oriented. The industry is actively mastering radical innovations: to monitor production processes and control equipment parameters in real time, digital twins, sensors and IoT sensors are being introduced, which, in addition to transforming traditional technological processes, launches changes at the level of enterprise management and their subsequent transition to new business models, in particular described within the framework of the concepts of digital or virtual "factories of the future," - noted Konstantin Vishnevsky, Director of the Center for Digital Economics Research at the Higher School of Economics.

The calculations were carried out by ISIEZ HSE specialists on the basis of more than 5.7 thousand sources for 2018-2022, selected by iFORA algorithms from the arrays of foreign professional media reflecting the current business agenda^[6].

China became the world leader in the number of IoT connections

On January 18, 2023, the Ministry of Industry and Informatization of the PRC announced that the number of mobile connections to the [[Internet of Things (IoT)|[[Internet of Things (IoT)|[[Internet of Things (IoT)|[[Internet of Things (IoT)|[[Internet of Things (IoT)|[[Internet of Things (IoT)|[[Internet of Things (IoT)|[[Internet of Things (IoT)|Internet of Things (IoT) infrastructure]]]]]]]]]]] in the country reached 1.84 billion in 2022. Thus, China has become the world leader in the number of IoT connections.

It is noted that the PRC has become the first country in which the number of IoT connections exceeds the number of cellular users. Mobile IoT connections in China account for approximately 70% of the total number of such connections globally. The Internet of Things covers 45 main segments of the national economy of the PRC.

Zhang Yunming, Vice Minister of Industry and, information technology China called on telecommunications companies such as China Mobile China Unicom and to China Telecom step up the construction and expansion of new network infrastructure. By the end of 2022, more than 2.3 million base stations were deployed in the PRC. 5G The country expects to connect over 500 million households to a gigabit optical network. Against this background, the segment Internet of things is actively developing.

China's digital economy used to be largely focused on consumer internet applications such as e-commerce. But now business applications, in particular the industrial Internet and IoT, play a much larger role. According to a report published by the Cyberspace Administration of China, the country's digital economy reached 45.5 trillion yuan ($6.71 trillion at the exchange rate as of January 20, 2023) in 2021 - the second largest indicator in the world after. USA It is said that China has formed an extensive telecommunications infrastructure that will lay a solid foundation for the qualitative development of the digital economy. states^[7]

2021

Growth in the number of IoT devices by 8% to 12.2 billion units, the main market trends

By the end of 2021, there were 12.2 billion Internet of Things devices in operation worldwide, up 8% from a year earlier. Such data in the research company IoT Analytics was released in May 2022.

According to experts, the volume of the market in question was below their expectations - 12.3 billion IoT devices were initially predicted. Analysts note that the shortage of chips has a negative impact on the Internet of Things industry, which may persist after 2023. In addition, IoT Analytics attributed the ongoing COVID-19 coronavirus pandemic and supply chain disruptions to the number of negative factors.

The study lists four main trends that in 2021 had one or another impact on the IoT equipment market:

• Expansion of LPWA networks, especially those using NB-IoT technology. By the end of 2021, the number of active devices supporting the NB-IoT standard increased by 61% compared to the previous year earlier due to the large number of projects in the world (primarily in the field of accounting for gas and water consumption).
• Users are moving from legacy 2G and 3G networks to 4G and 5G. The number of IoT equipment connections via LTE networks increased by 24% in 2021 due to the wider use of LTE Cat 1, Cat 4 and Cat 6 chipsets. According to analysts, for many projects, the LTE Cat 1 bis standard is becoming an alternative to LPWA technology.
• The shortage of chips continued to restrain the recovery of the Internet of Things market
• The pandemic continued to affect food supplies. Restrictions related to the spread of the coronavirus COVID-19 in different countries in 2021 led to the emergence of new serious problems in the supply channels of IoT devices. There were difficulties with the transportation of equipment by freight and shipping, as well as with container transportation. In addition, port congestion was observed in 2021.

Experts also named three main macroeconomic factors that hinder the development of the Internet of Things industry:

• Inflation. Inflation in most major countries is expected to exceed 5% in 2022, worsening economic growth and affecting many markets, including IoT;
• Military conflict in Ukraine. The Russian special operation in Ukraine aggravated the already strong problems with the supply of IoT electronics and components for it. The conflict can have a significant impact on the supply of neon and hexafluorobutadiene, which are important elements for the production of chips, since these gases are used in lithography processes in semiconductor production, analysts say.
• Struggle for IT professionals. In 2021, the shortage of IT personnel in such areas as artificial intelligence, the Internet of Things and cloud computing worsened. IoT Analytics estimates that IoT job ads were up 32% by April 2022.

Another point of the IoT Analytics study concerns investment in the Internet of Things market. In the first quarter of 2022, the volume of venture financing in the relevant startups reached a record $1.2 billion against $266 million for the same period in 2021. The number of investment transactions has decreased here, but there are more large rounds. Investors are of particular interest to developers of IoT technologies related to artificial intelligence, analytics and cybersecurity.

According to IoT Analytics, approximately 45% of IoT purchases were made by developers specializing in AI and analytical tools, software and chips.^[8]

Global IoT market tops $190 billion

The volume of the global Internet of Things market in 2021 reached $190.26 billion. Analysts at ResearchAndMarkets announced this in May 2022. This amount includes sales of hardware, software, services and professional services in the field of IoT.

According to experts, the coronavirus pandemic had a significant impact on the Internet of Things market, in COVID-19 which digital transformation has become one of the main agendas in some industries, which has accelerated the development of IoT solutions.

However, in 2020, at the height of the pandemic, many major IoT projects were canceled or frozen. At the same time, the IoT market began a rapid recovery in 2021. Analysts predict that the market growth in 2022 will be 28%, and in 2023 - 20%.

According to a study published by the German research firm IoT Analytics, in 2021, spending on IoT solutions in the corporate sector increased by 22% compared to 2020 - to $157.9 billion. This was despite some adverse conditions, including a shortage of labor and chips.

That figure is slightly lower than the 24% the company had forecast in previous reports, but it's still a significant growth rate. IoT Analytics expects it to continue for the next five years, with a projected market total of $525 billion by 2027.

One of the main factors driving the lower growth of corporate IoT was a shortage of skilled workers, according to the report. In 2021, enterprises had problems finding enough IoT employees to promote digital transformation projects and the Internet of Things. At the same time, the number of job advertisements related to IoT in the period from July 2021 to March 2022 increased by 41%. The firm also cited another Inmarsat study, which said a lack of knowledge about IoT is one of the key hurdles in companies to deploy IoT more widely.

Another key barrier to global growth in corporate IoT is the persistent shortage of chips worldwide. While the impact of shortages is felt in almost all markets, it is particularly painful for the IoT sector, where lead times in some cases stretch to 40 or 50 weeks.

IoT Analytics said that in 2021, due to supply problems, about 20 million chips of the cellular Internet of Things were not enough. This means that due to supply problems and subsequent price increases, some IoT projects simply will not be able to be completed.

Despite the negative factors, lingering security concerns and mediocre demand growth, analysts say that thanks to a host of tailwinds, the outlook for corporate IoT remains relatively strong.

Key macroeconomic factors influencing the future size of the IoT market include the development of technologies such as artificial intelligence, 5G and the cloud, as well as the role of the IoT in achieving sustainable development goals, said Philippe Wegner, chief analyst at IoT Analytics.

Additionally, advances in connectivity, including better 5G networks, LPWANs and even low-orbit satellite networks, should increase the flexibility of potential IoT deployments, according to the study.

The participation of large providers of public cloud services such as Google, Amazon and Microsoft, which have extensive IoT offerings, also contributes to the development of the market, experts say.^[9]

Insurance IoT Solutions Market Valued at $13.3 Billion

The global market for IoT solutions in the field of insurance at the end of 2021 is estimated at $13.3 billion. Such data in mid-February 2022 were cited by analysts at ResearchAndMarkets.

Experts expect the IoT insurance market to reach $150.7 billion by 2026, an average increase of 62.5%. Increased product adoption]]]]]]]]]]]]]]]]]]]]]]] in [[Internet of Things (IoT)|Internet of Things (IoT) developing and developed countries is one of the main factors contributing to market growth. Insurance industry services are improved by IoT-enabled devices, as insurance companies can partner with companies to access improved or new cross-industry products and services using IoT technologies and new ecosystems. In addition, the increasing need for cloud services in the insurance industry and the reduction of insurance premiums and risk-related costs due to the use Internet of things are also contributing to the growth of the market.

However, data privacy issues and lack of customer engagement, awareness, skills and procurement policies can hinder market growth, according to ResearchAndMarkets. Some of the factors expected to create key market growth opportunities are growing investment in IoT startups, the evolution of insurance models, and the growing need for multiple IoT-enabled applications.

Among the main players in the IoT market in the field of insurance:

• Accenture;
• Aeris Group;
• Allianz;
• Azure;
• Capgemini;
• Chubb Limited;
• Cisco Systems;
• Concirrus;
• Damco Solutions;
• Dell Services;
• Genpact;
• HBF;
• Hippo Insurance;
• Hitachi Vantara;
• IBM;
• Intel;
• Lemonade;
• LexisNexis;
• Oracle;
• Parsyl Insurance;
• SAP;
• Telit;
• Wipro;
• ZurichInsurance Group.

According to ResearchAndMarkets, North America will be the market leader for the forecast period^[10]

Design implementation of IoT solutions is a thing of the past

On December 23, 2021, the results of a study conducted by Oracle and Transforma Insights on the opinion of companies implementing Internet of Things (IoT) technologies showed a growing need for ready-made services. The majority of decision-makers strive to give preference to comprehensive offers, rather than custom development - this opinion is shared by 64% of respondents. Moreover, 75% of the study participants would like the issues of connecting smart devices to be resolved by the product provider, and 70% also want to get tools for analytics and data work together with an IoT solution. Thus, analysts note the desire of corporate customers for easier to implement IoT technologies that can bring business results faster.

The Transforma Insights study also showed a change in the business models of IoT providers themselves. On the side of service providers, there is further platforming and production of offers, because providers seek to position themselves as vendors of'ready-made solutions'. Accordingly, 56% of respondents from among the responsible persons of customers note that they are inclined to choose one of these suppliers for the implementation of IoT instead of contacting the system integrator.

{{quote 'Private solution development increases the cost and complexity of implementing IoT solutions, and therefore corporations are looking for a way to get returns as quickly as possible and are striving to use ready-made IoT systems, which imply the presence of connectivity and analytical tools, "said Andrew Morawski, senior vice president and chief executive of Oracle Communications, - 5G is a critical component for implementing the latest generation of IoT solutions, especially if we talk about the development of cloud-native technologies that take full advantage of the clouds. }}

Among the most interesting conclusions of the study:

• Finished products increase the speed of implementation: the time to conduct such a project is on average 8.5 months versus 11 months for private development.
• IoT projects enter the sphere of critical processes: Almost 90% of current projects were marked by respondents as "fundamental" or "very important."
• Customers began to look for ready-made solutions: Three quarters (75%) of respondents want connection issues to be resolved on the provider side, and 25% do not even want to be able to track solution components.
• Industry standards lead to a transformation of solutions: Almost all (85%) respondents note the need to meet any requirements when implementing solutions, which pushes IoT providers to apply uniform standards.
• The need for analytical tools for IoT platforms is growing: Less and less IoT projects are limited to simple data collection. Survey participants noted that in 80% of cases, they require bidirectional data transfer and advanced analytics.

At the same time, the potential of the IoT market continues to grow. According to Transforma Insights, the total number of IoT device connections will reach 28 billion by 2030, and the GSMA Mobile Economy forecast estimates the IoT market potential at more than $1 trillion by 2025.

The survey was conducted among 800 companies.

Top forecasts for the development of the Internet of Things

In early March 2021, the analytical company IoT Analytics presented a forecast for the development of the Internet of Things based on its own data and data from market participants.

"'The list of growing segments of the industry is led by smart healthcare, smart power systems and connected vehicles

Healthcare topped the list of segments with the largest growth in IoT adoption. It is followed by smart power systems, connected cars and applications for. smart cities It is assumed that IoT spending in the sector will health care USA grow by almost 39% and reach $188.2 billion by 2025, while at the end of 2020 this figure amounted to $72.5 billion.

In turn, smart meters connected to LPWAN networks become the basis of the new energy ecosystem, as remote access to energy facilities and meters with remote write-off of indicators becomes increasingly important. Analysts predict that innovations in the power segment will eventually increase the level of fault tolerance of the network.

The automotive industry will use connected vehicles to improve the comfort and convenience of users, but for this it needs to ensure the safety and confidentiality of data for drivers and passengers. Therefore, organizations are creating new rules to regulate the segment of connected cars.

"'IoT Security Will Remain a Top Priority

IoT GSMA connections are projected to double to nearly 25 billion globally by 2025, and as IoT's popularity increases, so does the risk. cyber attacks Cyber security IoT is a concern for 95% of respondents to a survey conducted by IoT Analytics analysts, with almost 40% "very concerned" about possible Internet of Things vulnerabilities. 88% indicated that they support the implementation of IoT security rules and the adoption of industry standards for managing best practices. cyber security The IoT security market is expected to grow to $36.6 billion by 2025, up from $12.5 billion in 2020.

Distributed denial-of-service (DDoS) and ransomware attacks pose a growing threat to poorly protected IoT devices. However, many OEMs can reduce risk with built-in protection at every stage of product manufacturing and implementation, and throughout the life of the application.

"'5G accelerates the development of the Internet of Things

5G is the fastest-growing mobile technology in wireless history, according to reports. It is in 2021 that 5G networks will indeed become available to a wide range of consumers. Analysts believe that by 2025 the number of 5G connections will grow to 1.8 billion, and high speed, expanded bandwidth, low latency indicators and high power can significantly speed up IoT connectivity. According to analysts, 5G will become the main technology for connecting to IoT.

"'LPWAN and 4G are gaining momentum

Nevertheless, LPWAN and 4G will still play a prominent role in connecting to the Internet of Things. The main focus in this case is the efficient transfer of small amounts of data using devices that require a wide coverage area and long battery life. These systems are ideal for smart meters and tracking applications that are speed and latency independent but require optimal energy efficiency.^[11]

2020: UK prepares legislation to protect IoT devices

On January 28, 2020, it became known that the UK Government unveiled a bill aimed at protecting IoT devices. Read more here.

2019

The market size of AI solutions for IoT amounted to $2.64 billion

According to the ReportCrux Market Research^[12]global demand for artificial intelligence in the IoT market was valued at about $2.64 billion in 2019, and revenue is expected to be about $15.72 billion by the end of 2027, giving average growth (CAGR) of 25.0% from 2020 to 2027. Read more here.

Sales of equipment for the Internet of things - $465 billion

Global sales of equipment for the Internet of Things in 2019 reached $465 billion, and the number of such devices in operation increased to 7.6 billion units. Such data in May 2019 led to the research company Transforma Insights.

According to experts, the most popular communication technologies in the IoT equipment market are Wi-Fi, Bluetooth and Zigbee, which accounted for 74% of product shipments in 2019. The number of connections in public networks (mainly in cellular) in 2019 amounted to 1.2 billion, their share was equal to 16%.

In terms of revenue, the largest segment of the IoT equipment market is consumer. In 2019, it accounted for 62% of all device connections.

Analysts say the IoT market saw massive growth in available technologies, platforms and solutions in 2019. Interest in the Internet of Things also developed in industry: companies actively explored the possibilities of IoT technologies and applied to their business processes.

To effectively apply IoT and extract business benefits from it, it is necessary that data from sensors be analyzed in the context of other company data - reference information, financial data, etc., the study says. The problem is that so far few have managed to organize such a scheme. Some organizations do not yet collect all the data necessary to analyze information with IoT. Others - collect them, but store them separately, fragmented, in separate databases or files. At the same time, in order for IoT to benefit, the organization needs to implement a number of basic solutions, the researchers note.

They see great potential for the use of the Internet of Things in the energy sector, especially in terms of the use of smart electric meters.^[13]

Forrester: what to expect from the IoT market in 2020

At the end of November 2019, the analytical company Forrester published a report on what to expect from the IoT market in 2020. The experts' forecast, they said, should help Chief information officers and their organizations work in the evolving IoT ecosystem.

IoT architects will integrate 5G into new projects, but not as a replacement for LoWPAN

Before 5G networks, many IoT devices transmitted data using low-power wireless personal networking (LoWPAN) technologies. However, while 5G is becoming increasingly popular, this network will not replace the existing LoWPAN networks, but will only expand their application, the report said. Many industries will continue to use LoWPAN technologies, and 5G network solutions will be applied to data transfer to cloud services or via telecommunications networks.

Consumers will use smart displays, driving growth in multimodal design

These technologies are expected to evolve rapidly in 2020, encompassing both personal and corporate devices. One of the most popular enterprise solutions will be conference room management solutions that allow entire groups to interact with remote users. As the technology evolves, it will increasingly move towards multimodal design, giving equal meaning to voice, display and touch control. At the same time, leading developers will create software that will allow intelligent displays to adapt to various situations.

Cybercriminals will use IoT devices to get ransom from the manufacturer

Although IoT provides many benefits, the growth of devices expands the field of action for cybercriminals. Connecting all devices to the network makes them extremely vulnerable. It is assumed that in 2020, attackers will use both personal and corporate devices for ransom. This means that cybercriminals can blackmail regular customers and device manufacturers. To prevent this, developers must work closely with security teams or hire experts who can integrate risk mitigation methods. In addition, companies need to carefully consider an action plan in the event of a cyber attack.

Connected trucks will use IoT to transform supply chain

It is assumed that IoT will provide more efficient logistics in the field of freight transportation and optimize the supply chain. Constant communication and control will reduce the number of empty trucks, speeding up and reducing the cost of transportation. In addition, IoT will help drivers comply with the mode of operation and rest on the way, increasing the safety of cargo transportation, as well as allow faster detection and repair of damage to cars. In warehouses, IoT devices will be used to ensure the safe operation of machines and the movement of heavy objects on automated trolleys. IoT technology will also help improve the quality of customer service - delivery of goods will become more personalized.

Emergence of an ecosystem of related services

Many large companies that offer connected products will provide services based on the IoT database. Connected products provide continuous communication between customers and the manufacturer. They also cause constant costs for manufacturers who need to monitor product performance and provide software updates. So manufacturers are looking for new revenue streams for connected products to offset those costs. According to the report, in 2020, large consumers and service providers will move from selling individual products to offering IoT services with the support of partners in a single ecosystem.^[14]

Microsoft: 85% of companies use the Internet of Things

On August 20, 2019, Microsoft presented an IoT Signals study on the dynamics of IoT adoption in companies from different industries and countries of the world^[15]. According to its results, 85% of organizations already have at least one business project in this area, and by 2021 this figure will grow to 94%. At the same time, 88% of managers of such projects realize the advantages of technology for the success of the company and expect a 30% return on investment in a two-year perspective.

Among the main goals of implementation, respondents highlighted the need to optimize work processes (56%), increase employee productivity (47%), as well as the overall safety of the company (44%). Respondents predict that artificial intelligence, modern computing technology, 5G, digital twins and blockchain will accelerate the spread of the Internet of Things.

One of the main stop factors in the application of Internet of Things technologies was the complexity of implementation and further work (38%), including the lack of the necessary IT infrastructure in companies. Also, those who have already launched projects in the field of the Internet of Things faced a shortage of qualified specialists (47%) and resources for their training (44%).

At the same time, despite the fact that 97% of respondents are concerned about the security of Internet of Things systems, this factor does not restrain the speed and volume of implementations. As the most promising preventive measures, they highlight: creating a reliable user authentication system (43%), tracking and managing Internet of Things devices (38%) and protecting their endpoints (38%).

Microsoft supports the development of smart devices and the Internet of Things and plans to invest $5 billion in this area by 2022. We create solutions to make IoT projects as efficient as possible for our customers' business. Thus, the Azure IoT Central platform simplifies the implementation of solutions, reduces the burden and costs associated with management and development. And the Microsoft Azure Sphere operating system provides several layers of protection, thus helping to prevent negative situations, for example, data loss. It is already used by companies like Starbucks: it trusts our system to protect dozens of devices at every outlet,

US authorities plan to take the Internet of things under tight control

On April 30, 2019, it became known that a hearing on cybersecurity was held in the US Senate, the participants of which will discuss a bill giving the country's authorities full access to Internet of Things (IoT) devices. The Senate website says it will discuss "threats and security issues posed by the Internet of Things" and "ways to create additional cybersecurity."

If this document is adopted, by 2020, the United States will be able to use only government-approved Internet of Things devices that meet security requirements (we are talking about devices that connect to the Internet and transmit information, but are not computers or smartphones: smart TV, smart home systems, etc.). The bill assumes that the developers of such devices will transfer to the authorities all information about the firmware, the scheme of work, any risks of hacking devices, as well as ways to counter possible hacking. Devices manufactured outside the United States, whose developers refuse to provide relevant information, will be prohibited from use.

{{quote 'author="' Dmitry Marinichev, RadiusGroup Dmitry Ma '| These devices are a powerful flagship for DDoS attacks and cybercrime, because they are all microcomputers. The devices control hazardous industries, interference can lead to a man-made catastrophe. Therefore, the topic is certainly serious and should be controlled by the state at the level of traffic protection that goes between the provider and the device. There are also requirements for encryption, administration and security. And, of course, all this needs to be controlled at the protocol level.}}

He noted that "a close discussion of these innovations and methods of control" is also underway in Russia.

In the draft target program "Development of industrial production of fifth-generation networks and the Internet of Things in the Russian Federation for 2019-2024," developed by the Ministry of Industry and Trade, it is planned to allocate about 28 billion rubles to create equipment and software for 5G and IoT networks in Russia. It is planned to establish the production and introduction of micro- and macrobase, switches for various types of networks, operational search measures (SORM) systems and other network equipment, as well as 5G modules for smartphones and other user devices, SIM cards of the USIM/SIM standards, digital IoT platforms and software for monitoring and managing 5G networks.

In early April 2019, the concept of the development of IoT in Russia was approved by the Ministry of Communications. It involves the creation of the Register of Internet of Things Identifiers, which will provide a single identification of users of these networks and, in fact, will create a closed IoT network in the country. The concept also spelled out a four-level model for the operation of Internet of Things networks^[16].

Top 10 Internet of Things cybersecurity trends - Counterpoint Technology

In early February 2019, Counterpoint Technology Market Research provided ten information security forecasts for 2019. Read more here.

2018

The number of IoT devices in the world has reached 22 billion, but making money on them is not easy - Strategy Analytics

By the end of 2018, the number of devices connected to the Internet of Things worldwide reached 22 billion, according to the research company Strategy Analytics. The data was released on May 16, 2019.

According to experts, more than half of the working IoT equipment at the end of 2018 fell on corporate solutions. The share of mobile and computer devices was just over 25%. At the same time, experts believe that the fastest growing segment of the Internet of things market will be household appliances due to the penetration of smart home systems in regions in which they are poorly developed.

The Strategy Analytics report concluded that despite the increasing number of IoT devices, the opportunities for generating revenue from them remain uncertain, especially for service companies.

Service providers can look at the large scale of the Internet of Things and assume that revenue itself will come to them, says Strategy Analytics lead analyst and study author David Mercer. - However, it is not known which applications and services will stimulate revenue growth and to what extent. In addition, more research is needed to understand how this ecosystem will evolve to meet consumer needs in the future.

According to analysts, companies wishing to make money on the Internet of Things need to make a more informed and deliberate choice of segments in which they want to work, as well as correctly prioritize when choosing business projects and models for earning money.

It is predicted that by 2025 and 2030 there will be 38.6 billion and 50 billion IoT devices in the world, respectively. Sales of wearable electronics and cars with IoT functions will grow, but their volumes will not be so large compared to other segments of the IoT market.^[17]

The number of IoT devices connected to cellular networks has exceeded 1 billion - Berg Insight

In 2018, the number of devices internet of things from connected to cellular networks around the world reached 1.2 billion units, an increase of 70% compared to 2017. In money, the volume of this market increased by 19% to 6.7 billion euros. The top 10 producers accounted for about 80% of revenue. Such data were released by the analytical company Berg Insight on May 13, 2019.

The growth of the mobile IoT equipment market is primarily due to the Chinese market, which accounted for about 63% of working devices, the report says.

China is introducing cellular IoT technology on a gigantic scale, says leading analyst at Berg Insight and study author Tobias Ryberg.

According to him, data from Chinese mobile operators show that by the end of 2018, the number of IoT devices operating in China connected to cellular networks amounted to 767 million units, which is 124% more than a year ago. There are 54.7 IoT connections per 100 residents, and China is ahead of Europe and North America in this indicator.

The Chinese government is actively promoting the Internet of Things as a tool to achieve domestic and economic policy goals, and non-state companies are introducing IoT technologies to improve efficiency and stimulate innovation. Berg Insight believes that the role of the authorities is the main explanation for why China is ahead of the rest of the world in terms of the penetration of the Internet of Things.

The average revenue of a mobile operator per cellular IoT device in the Middle Kingdom reached 0.22 euros at the end of 2018. For comparison, in Europe this income turned out to be equal to 0.7 euros.

According to researchers, by 2023, 9 billion IoT devices operating in cellular networks will be read in the world.^[18]

$646 billion market size - IDC

The analytical company International Data Corporation (IDC) estimated the global IoT market at $646 billion in 2018. Such data are provided in the Worldwide Semiannual Internet of Things Spending Guide, which experts updated in early January 2019.

The Internet of Things is being implemented in all industries, in governments and in the daily life of consumers,  "comments Carrie MacGillivray, IDC vice president of Internet of Things and Mobility. - We are increasingly seeing how data generated by connected devices helps companies operate more efficiently, understand business processes, and make real-time decisions. For consumers, access to data changes the way they obtain information about the condition of households, vehicles and family members, as well as their own health and physical condition. A new stage for IoT is just beginning: we are seeing a transition from digitalization, providing physical capabilities, to automation and expanding the human experience in the connected world.

According to experts, global IoT spending in 2019 will increase by 15.4% and reach $745 billion, and in subsequent years they will also rise at double-digit rates and exceed $1 trillion in 2022.

By the end of 2018, the largest costs of the Internet of Things fell on production operations, production asset management, smart home systems and transportation monitoring. By 2022, the highest growth rates of IoT investments are expected in the following areas:

• automation of facilities at the airport;
• charging electric vehicles;
• monitoring of processes in agriculture;
• medical telemetry;
• in-store contextual marketing.

IDC's projected trend in spending growth in these areas is shown in the chart above.^[19]

What to expect in the Internet of Things market in 2019 - DataArt

In November 2018,  DataArt, specializing in outsourcing software development and areas such as Internet applications, corporate databases and industrial automation tools, presented a forecast for the development of the Internet of Things market in 2019.

According to experts, the Internet of Things was once a niche technology for startups, and now they are building a corporation business with a turnover of millions of dollars on its basis. IoT has already changed lives, and 2019 should be a period of significant change in this area. IoT specialists DataArt named the main trends that will prevail in the IoT market in 2019.

Boundary calculations

The devices will become even more powerful, providing local data processing and artificial intelligence capabilities. This will reduce data transfers and reliance on cloud computing, as well as provide more flexibility for companies. Edge computing will have a significant impact on industries where immediate response is needed based on complex real-time data analysis (e.g., manufacturing and public safety) and where cloud communications can be limited (delivery, logistics, etc.).

Increased competition in the field of information security

A key step  towards the transformation of the industry will be the race of companies that will compete in the development of the most efficient and secure IoT solutions. IoT market experts will focus on solving key security problems and eliminating Internet of Things vulnerabilities  that previously prevented the widespread spread of the technology.^[20]

Big players' dominance

According to DataArt forecasts, in 2019 there will be increased competition between tech giants, like, and Amazon Web Services (AWS) Microsoft , Google as large IoT platforms have become commonplace. Such corporations will be able to capture most of the market and continue to expand  the area of ​ ​ influence at the expense of adjacent organizations. Against the background of the struggle for market share among large manufacturers of IoT platforms, small companies will be forced to survive to focus on niche areas (for example, data movement, solving specific problems in selected industries, working with certain types of devices  , etc.).

Growing use of smart devices

Analysts say smart devices will undoubtedly become even more popular in various industries. The growing use of such electronics in automotive, industrial, medical, manufacturing and other sectors is expected.

Shift in the Automotive Market Business Model

Data is becoming a vital mainstay of the auto industry. Market participants will continue to actively introduce IoT technologies in order to provide machines with invisible data collection and monitoring, as well as their interaction with smart city services and other vehicles.

As a result, the auto industry will continue to switch to business models related mainly to the use of data. We can see a special shift in OEMs that invest heavily in innovative startups for data analysis and processing, the study says.

The 5G era is here

5G networks, considered one of the most anticipated technological trends, will usher in a new era for the Internet of Things, helping to strengthen the interconnection of elements of the modern world. This will lead to the further development of IoT innovations, which will make it possible to collect data, analyze it  and manage it in almost real time.^[21]

Forrester's Five Trends for 2019

The number of vendors looking to take part of the market IIoT continues to grow, but some leaders have emerged from the field, another study published this week said. According Forrester Research to the IIoT Software Platforms Report, C3 IoT,,,, and are Microsoft PTC SAP IBM industry leaders, with C3 IoT making the strongest offer and IBM far ahead of other vendors in strategy. Amazon Web Services is considered only a "contender" for the IIoT space, being left behind by the strongest players such as, and. GE Oracle Siemens Forrester ranked last Cisco , 15th among companies in range and strategy. Vendors were evaluated according to 24 criteria, including analytical capabilities, technology use digital twins and production integration.

In November 2018, the analytical company Forrester Research published a forecast for the development of the Internet of Things market in 2019.

Experts say the technology has evolved rapidly in previous years thanks to the widespread adoption of sensors as well as cloud and peripheral computing infrastructures. As a result, the Internet of Things began to change not only the business of companies, but also the lives of ordinary people. Below are five trends that the researchers believe will dominate the IoT space and have an impact on organizations and businesses.

IoT services sold comprehensively will try to stimulate slow growth in the consumer market

Forrester believes that the concept of a centralized "smart" home, in which devices interact closely with each other, has become a dream of companies rather than consumers. Interest in the smart home equipment market is declining from home users who prefer to buy only one multifunctional device controlled by the application. This trend is likely to continue in 2019. But companies may try to bundle services and attract customers with discounts, but people are not yet ready for this kind of integrated communications, according to a report released in November 2018.

IoT ceases to be just a generic term

According to analysts, talk about the Internet of Things as an incomprehensible fashion term will fade into the background, and on the first - projects for the real use of technology will appear.^[22]

The Internet of Things itself does not carry value, says Forrester analyst Michelle Pelino . - It would be time to engage in practice, solutions, applications, management and monitoring tools, performance management solutions, all kinds of solutions that together allow you to solve the problem. Here's what an attractive offer is.

IoT vendors will become niche

Analysts believe that in 2019, developers of IoT platforms will narrow their scope, focusing on certain use cases. For example, businessmen do not need one single industrial Internet of Things platform to manage each process in their company. Instead, they are looking for solutions that specialize in specific tasks. In this regard, in 2019 we should expect even more partnership agreements with IoT vendors.

Hackers will attack smart cities

Experts call cyber attacks on the systems of "smart" cities another trend in 2019. Many cities are unable to ensure the security of connected devices, sensors and communication infrastructure, as well as citizens' privacy in smart city systems. Experts predict an increase in the number of targeted attacks using ransomware against vulnerable components of the deployment of smart cities, which will lead to failures in the service of citizens and will force cities to invest in cybersecurity in order to minimize the risk of further attacks.

IoT Systems Management Services Market Emergence

Forrester sees the emergence of a market for services for the management and operation of fragmented IoT objects.

The idea of managing the continuous entire lifecycle of a connected product is becoming increasingly important, and eventually opportunities for such management services will need momentum next year. This is very much due to the fact that we are seeing more and more kinds of products that interact with each other in an industrial setting, "Pelino said.

GlobalData Forecast

The global Internet of Things (IoT) technology market, which consists of software, services, connection services and devices, reached $201 billion in 2018. According to forecasts of the analytical company GlobalData, by 2023 its volume will be $318 billion, with a total annual growth (CAGR) of 20%.

Solutions for utilities and production enterprises are leading the market. Analysts estimate their capabilities at 58% this year and 55% of the market in 2023. Power and transport experts allocate 15% of the market during the forecast period. Software and services such as design, installation, maintenance and project management, as well as IoT platforms, application development services and software have the greatest potential for profit in the market .

From the point of view of implementing IoT in production, enterprises are just beginning to use technolonia to more effectively control costs or increase productivity. IoT deployments are becoming more extensive, the technology is gaining appeal for companies. Technology is being transformed by augmented and virtual reality, machine learning and artificial intelligence, which will ultimately allow enterprises not only to optimize current products and processes with IoT, but also to generate new revenue streams through the development of their own new products and services.

Market Research Engine Forecast

In August 2018, three research companies prepared reports on the prospects for the development of the industrial Internet of Things (IIoT) market, writes Internet of Business^[23]The global IIoT market will exceed $176 billion by 2022^[24] to the latest Market Research Engine report . Over the next four years, the market will grow at a cumulative annual growth rate (CAGR) above 8%.

Analysts consider the development of semiconductors and electronic devices, standardization, IPv6 growth cloud computing and support from governments as the main growth factors. Restraining factors continue to be the need for standardization and a lack of skilled labor - this report echoes the work of other investigators. The authors of the report included,,,,,,,,,,,,,,,,,,, and General Electric Cisco Intel Rockwell Automation ARM ABB Siemens AG Honeywell Dassault Systemes other Huawei Zebra Technologies IBM Bosch companies among the key participants in the global IIoT sector.

Zion Market Research Forecast

Researchers at Zion Market Research believe that IIoT will grow with a CAGR of just over 8% over the next five years, but they estimate it will reach $232.15 billion by 2023. Zion estimated the value of IIoT in 2017 at $145.81 billion, well above Market Research Engine data.

Juniper Research Forecast

The number of connected sensors and devices of the Internet of Things in the world in 2018 will amount to 21 billion, and by 2022 will exceed 50 billion. This is stated in a study by Juniper Research.

The growth driver is the development of peripheral computing, experts say. The essence of this approach is data processing not in the center of the network, but at its borders, on the periphery. The development of such calculations will reduce network bandwidth requirements, reduce application response time, and increase data security.

Projects of consortia based on blockchain and other distributed registry technologies will play an important role in the development of the Internet of Things. However, the possibilities of using blockchain in IoT will be limited until real decentralization is achieved, experts at Juniper Research say.

IBM, Microsoft, Intel, Bosch and Nokia are named the key IoT vendors in the report .

Software AG: Why half of IoT projects fail

By May 2018, the introduction of digital technologies in all spheres of life began to take place in leaps and bounds, but the prospects are not yet as bright as we would like. IoT Software AG Bernd Gross, senior vice president of cloud services at a German technology company, notes that a real tsunami of new devices in the field has poured into the market. Internet of Things They come to the fore because the cost of connecting them is constantly falling and they are becoming more affordable. However, more than 50% of IoT projects fail, and one of the main reasons, according to Gross, can be considered the desire of developers to introduce the technology before they have time to assess all the influencing connectivity factors and the total amount of technologies involved.

Gross suggests that IoT success is only possible (or at least most likely) with special software platforms. According to Gross' proposal, IoT devices should track their own status and send the necessary data to the control panel. She, in turn, will conduct an assessment on key performance indicators. All of these features must be accessible to software developers through open programming interfaces. Software AG Vice President of Industry Marketing Theo Hildyard supported the theories put forward by his colleague Gross and proposed three main stages for implementing IoT applications.

First, Hildyard said, it's best to start with separate projects with one IoT application each. Sensors and other instruments are installed first; in this case, some of the analyzed data may come from the archive, but some of them will be transmitted in real time, so the operator is required to monitor the installed devices to some extent. At this stage, the commercial profitability and effectiveness of the project should be confirmed. Developers must eliminate unnecessary risk due to the fact that the application will not be fully integrated into the operation of the rest of the company's operating processes.

The second stage is called the integration period of processes based on the received data. At this stage, the company may begin to consider the results of IoT analytics when planning further activities. Operating technologies are used to monitor the processes and operation of devices; based on the data obtained, they can adjust production and industrial operations. At this stage, as Hildyard notes, it is already possible to use IoT to call a specialist if it is necessary to maintain the device or to order fuel, spare parts and other goods necessary for the uninterrupted operation of the device.

Only at a later stage, with the help of machine learning and artificial intelligence can the introduction of innovative technologies begin based on the data obtained and analyzed by IoT. At this stage, the company can start working on new devices and even enter new markets.

Gross also noted that certain characteristics should be considered when choosing an IoT platform. Firstly, the ability to quickly deploy is very important, since not all IoT projects are successful, and any company needs to be able to quickly move on to another idea within a few days, not months. Secondly, open independent technology is of particular importance - all functionality must be available through open programming interfaces. The company should be able to expand the project if it is successful. And, of course, the reliability and security of the platform should be ensured - the focus remains on the issue of data privacy, added a top manager at Software AG.^[25]

2017

The number of IoT connections reached 407 million

Ten mobile operators account for 76% of the global market internet of things (Internet of Things,) IoT in cellular networks. According to the largest companies, the number of IoT connections in the world as of the end of the first half of 2017 amounted to 407 million.

The largest provider was China Mobile with 150 million IoT connections during this period. Vodafone came in second with 59 million connections, ahead of China Unicom with 50 million IoT connections. AT&T and China Telecom (China Telecom) took fourth and fifth places (36 million and 28 million IoT connections, respectively).

Operators such as Deutsche Telekom, Softbank/Sprint, Verizon and Telefónica are in the range of 15-20 million IoT cellular subscribers, the number of which is growing by 15-30% annually. Telenor was in tenth place with about 12 million IoT cellular subscribers.

Chinese operators are leading in the number of connections, but Western companies are ahead of them in revenue. Analysts estimate that at least three operator groups - AT&T, Verizon and Vodafone - will receive more than $1 billion in IoT revenue in 2018.^[26]

10 trends from Forrester Research

In December 2017, analysts at Forrester Research outlined 10 key trends expected in 2018 in the Internet of Things (IoT) industry.

1. Distribution of voice services

Companies will offer more and more voice services, and the number of the latter will double in 2018. At the same time, financial institutions and other industries providing services in which authentication is required to conduct operations will not be so active in this regard.

2. Commercialization of IoT data

European regulators will prepare laws that will open the way for the commercialization of IoT data. Forrester notes that US companies are ahead of European ones in terms of making a profit from IoT. To narrow this gap, the European Commission will approve directives that stimulate the use of advanced technologies and the development of the digital economy.

3. Marketers recognize the capabilities of IoT

Seeing the growing popularity of smart digital assistants like Amazon Alexa and Google Assistant and their introduction in an increasing number of devices, marketers will understand what huge prospects this opens up in terms of the ability to "reach" the target audience. At the same time, Forrester believes wearable electronics will still remain a niche segment in 2018.

4. Deploying Peripheral IoT Systems

So far, IoT data processing takes place mainly in the data center or in the cloud, but in 2018 the so-called peripheral IoT devices (EdgeT devices), capable of locally analyzing the data generated by them, will begin to be implemented, and cloud power will be used for security, scalability, configuration and management.

5. Providers of industrial IoT platforms will leave the IaaS business

In 2017, all leading industrial IoT platforms provided at least some of their services and IoT capabilities through hyperscale cloud providers, including Amazon Web Services (AWS), IBM and Microsoft. With the growth of the geography of coverage and IoT capabilities of the latter in 2018, this trend will intensify.

6. IoT Platform Specialization

IoT product developers need tools to remotely monitor and manage devices. Accordingly, IoT operators need to create specialized software that will connect various IoT assets of enterprises into a single business process and eliminate the need to manually configure individual IoT elements. Preference will be given to IoT platforms designed to meet the needs of the client.

7. Consolidation of IoT platforms

In an effort to reduce costs and network latency when entering data and waiting for a response, more businesses will seek to use edge segments of the network for data processing and analysis. The increase in costs due to the need to develop not only the core network, but also peripheral capacity, will affect all, with the exception of the largest IoT platform providers, and will force players to moderate their ambitions or leave the market in the next three years.

8. Integration of IoT platforms with public cloud services

Requirements for IoT platform developers, such as low implementation costs, rapid prototyping, global reach, easy integration with recording and interoperability systems, and minimal maintenance, will contribute to the accelerated adoption of IoT platforms by public cloud providers.

9. IoT at centre of increasingly devastating cyber attacks

Forrester analysts predict an increase in IoT-related cyberattacks as the issue of IoT security for manufacturers remains secondary.

10. Blockchain-based IoT platforms

Experts expect blockchain to actively penetrate the Internet of Things. Forrester estimates that the adoption of blockchain-based IoT platforms will reach 5% in 2018^[27]

HPE: more than 50% of companies have mastered the Internet of Things

According to HPE, approximately 57% of companies have already implemented IoT technologies, and by 2019 this share could grow to 85%. Many (88%) of those who already use the Internet of Things noted a rapid return on investment in these projects.

In 80% of medical institutions that have already mastered the Internet of Things, there was an increase in innovations, for example, related to the availability of constant access to medical data of patients and the possibility of prompt diagnosis. Almost the same respondents (76%) noted that the Internet of Things has increased the transparency of the processes taking place in organizations, simplifying the joint work of medical personnel. 73% of healthcare institutions were able to reduce costs through IoT solutions.

About 72% of commercial organizations use the capabilities of the Internet of Things. Most often, this is expressed in the use of "smart" air conditioning and lighting systems (56% of respondents work with them) and personal mobile devices (51%). In addition, some companies are connected to location IoT services and utility control services (electricity, etc.).

It is claimed that the use of IoT technologies has improved the efficiency of IT departments in 78% of companies.

The Internet of Things is increasingly penetrating government agencies. About 42% of them use IoT innovations, including in security systems (57%), street lighting (32%) and vehicles (20%). 70% of government agencies said that the Internet of Things has helped increase the transparency of the organization as a whole.^[28]

Almost all companies (97%) that took part in the survey expressed confidence that the introduction of IoT technologies will pay off within five years.

IoT Analytics: The number of IoT platforms in the world has reached 450

The number of IoT platforms worldwide has grown by 25% over the past year and amounted to 450 - such data are provided in the Global IoT Platform report prepared by IoT Analytics.^[29]

"The IoT platform market is still becoming more saturated and fragmented. However, the dynamics are changing: despite the fact that we continue to observe the emergence of startups in this segment, most large suppliers already offer their IoT platforms. It is likely that the emergence of new IoT platforms from IT giants will become a rare phenomenon, "said IoT Analytics Director Knuda Lasse Lue

.

According to the report, platforms from 40 countries are on the market, but more than half of the developers are based in the United States. At the same time, more than 30 companies from last year's report ceased operations: they either left the business, or were acquired by large players.

Most existing suppliers are now focused on supporting IoT solutions in industrial manufacturing (32%), smart cities (21%) and smart homes (21%). Previously, the segment of smart homes occupied the first line of the rating.

Berg Insight: Top 300 IoT projects account for 156 million subscribers

Consulting firm Berg Insight unveiled a unique database in 2017. The document covers the 300 largest deployments of IoT projects worldwide using mobile technologies. Large-scale projects from 2004 to 2016. in different regions of the world. There is also a five-year forecast for each project^[30].

The extensive list presents various types of projects and product categories deployed in all vertical markets, including the after-sales installation of transport telematics (including post-warranty installation and maintenance), fleet management and MRM (Marketing Resource Management - specialized software products for marketing automation), healthcare, OEM telematics, retail applications, smart homes and buildings, utilities, wearables and consumer electronics, as well as industrial M2M solutions and others.

"Projects included in the top 300 list have approximately 156 million active subscribers of IoT services," said Rickard Andersson, senior analyst at Berg Insight.

He added that this corresponds to 39.2% of the total number of cellular IoT connections worldwide at the end of 2016. By 2021, the volume of the subscriber base of these projects will grow to 344.5 million. The cumulative annual growth rate (CAGR) of the user base is expected to be 17.2%.

"More than 30 deployments account for 1m subscribers. Only the 10 largest projects account for more than 60 million subscribers, "Andersson continued. Fleet management and MRM are the largest verticals in terms of the number of projects deployed. This is followed by retail apps, after-sales transport telematics and OEMs, as well as smart homes and buildings.

Berg Insight analysts also compared the number of active subscribers in each vertical in the top 300 list. It turned out that OEM telematics is the largest position, accounting for 30 million subscribers. Utilities account for not about 27.6 million subscribers. After-sales telematics and service account for 24.1 million subscribers.

IDC Forecast: In Europe and the World

In Central and Eastern Europe

Spending on Internet of Things technologies in Central and Eastern Europe (CEE) in 2017 will exceed $12 billion and reach almost $27 billion in 2021. The average annual market growth rate (CAGR) through the end of the forecast period will be 20.6%.

The largest cases of using IoT, which will attract investments in 2017 - cargo monitoring ($1.8 billion), Smart Grid technologies for electricity, gas and water ($1.2 billion) and the segment of technological operations ($1 billion). Production asset management and smart home technologies are also projected to receive significant investment. These use cases will remain the largest areas of IoT spending in 2021.

Smart home technology is projected to experience strong growth (CAGR 34.4%) during the five-year forecast. The largest increase in costs will also occur in smart network technologies for water (42.9%), insurance telematics (36.8%) and charging stations for electric vehicles (35.7%). In the industry, the largest IoT investments in 2017 will be directed to transport solutions ($2.6 billion), production ($2.2 billion) and utilities ($1.3 billion).

Investments in cross-industrial solutions in IoT will exceed $900 million in 2017. The consumer segment of IoT will become the fourth largest in 2017 (investment of $1.1 billion), but in 2021 it will move to fifth position.

In industries such as insurance (CAGR - 38.9%), cross-industry solutions (31.4%) and construction (28.1%), investment growth is expected to be the highest.

Services and equipment will become the two largest revenue categories.

Software costs are expected to be dominated by application software. Horizontal software (software for a wide range of users, non-specialized software) and analytical software will have a CAGR of 38.2% and 28.1%, respectively. In the security hardware and software segment, CAGR will be 19.3% and 22.7%, respectively.

"Russia will remain the leader in IoT investment in Central and Eastern Europe throughout the forecast period. Spending in 2021 on IoT in this country is expected at $9.4 billion. The second and third positions on expenses will be taken ($5.8 in Poland 2021) and ($2.3 Czech Republic billion), "IDC analysts say.

Transport and manufacturing will prove to be the top two industries for IoT investment in all three countries. In Russia, utilities will take the second position, while in Poland and the Czech Republic - inter-industry solutions. Spending on consumer solutions will be among the leading categories in all three countries.

In the world

According to the forecast, in IDC 2017, costs will Internet of Things increase by 17%, showing that customers around the world are ready to pay for the implementation of these technologies. Organizations continue to invest in hardware, software, services and communication networks, and by 2021, total costs will reach almost $1.4 trillion^[31]

Customers want to apply IoT technologies in a variety of areas, but primarily in production, transportation and utilities, writes IDC. According to the forecast, in 2017, the production sector will be the main source of investment in IoT technologies ($105 billion), and the second place is occupied by control over the transportation of goods (up to $50 billion). Other major areas of implementation of IoT in 2017 will be production capacity management, smart building technologies, as well as intelligent energy, water and gas supply systems.

In terms of segments of this market, IDC expects equipment investments to account for the largest portion of organizations' spending in the next five years; this includes sensors and modules for connecting them to communication networks. Service costs (content transfer, installation and IT services) will also grow, as will software costs.

Investment in IT security hardware will demonstrate a CAGR of 15.1% through 2021, while investment in security software will demonstrate a CAGR of 16.6%.

Cisco study: Nearly three-quarters of IoT projects fail

According to the company's forecasts, IDC the global fleet of installed endpoints (Internet of Things Internet of Things,), IoT which at the end of 2016 amounted to 14.9 billion, in 2025 will exceed 82 billion. At this rate Internet of Things , it may soon become as indispensable as the Internet itself.

However, despite the powerful growth momentum, the data cited in the new study Cisco suggests that 60% of IoT projects are stuck at the prototype stage, and only 26% of companies considered their IoT projects to be completely successful. Worse: a third of all completed projects were considered unsuccessful.

The Cisco study, conducted in the United States, Great Britain and India, involved 1,845 leaders responsible for IT and business decision-making in industries such as manufacturing, local government, retail, hospitality, sports, power (energy systems, oil and gas, mining), transport and healthcare. All respondents worked in organizations that implemented IoT projects or have already completed their implementation. The respondents took part in the implementation of the overall strategy or led at least one of the IoT projects in their organizations. The aim of the study was to understand the success factors and to isolate the challenges that stand in the way of progress.

Key results

• Significance of the human factor. At first glance, the Internet of Things is a purely technological story, but factors such as culture, organization and leadership play a huge role in it. Three of the four main factors that determined the success of IoT projects are relevant to people and their interaction:
  • cooperation between IT and business units came out on top (54% of respondents);
  • A technologically oriented production culture, based on the principles of top-down leadership and leadership support, put 49% of respondents at the forefront;
  • Internet of Things (IoT) experience gained internally or through collaboration with external partners was chosen by 48% of respondents.

In addition, those organizations whose IoT projects were most successful took advantage of ecosystem partnerships more widely than others. They have worked with partners at every stage, from strategic planning to data analysis based on implementation results.

Despite the universal understanding of the importance of collaboration between IT management and business units, a number of interesting disagreements have been identified:

• Heads of IT departments consider more important technologies, organizational culture, experience and vendors;
• Business heads focus on strategy, feasibility studies, processes and targets
• heads of IT divisions are more inclined to consider IoT projects successful (35% of IT division heads named their projects completely successful, while only 15% of business division heads were among business divisions).

• Importance of partnership. 60% of respondents emphasized that IoT projects often look good on paper, but turn out to be much more difficult to implement than could be imagined. The five main challenges at all stages of implementation are completion times, limited experience, data quality, unit integration, and budget overruns. Our research has shown that the most successful organizations at all stages attract an ecosystem of partners, that is, close cooperation throughout the project can smooth out the lack of experience.
• Take advantage. The simultaneous manifestation of critical success factors gives organizations the opportunity to use the results of smart data analysis on a large scale. 73% of survey participants use data from completed IoT projects to improve their business. The top three global benefits of the Internet of Things are customer satisfaction (70%), operational efficiency (67%) and product and service quality (66%). In addition, the main unexpected advantage was the growth of profitability (39%).
• Learn from mistakes. Attempts to implement IoT projects gave another unexpected result: 64% of respondents said that the lessons learned from stalled and unsuccessful IoT initiatives contributed to the fact that their organizations began to increase investment in the Internet of Things.

Despite the problems, many participants in the study are optimistic about the future of the Internet of Things, which, with all its rapid development, remains at the initial stage of evolution. 61% of respondents believe that we have just begun to explore the opportunities that IoT technologies open up for business.

PwC Study and Forecast

The number of "connected" devices is growing in the world (according to industry analysts, their number will reach 20-50 billion units by 2020) and with it - the number of examples of the use of "Internet things" (Internet of Things,) IoT in the economy: , industry, to power housing and communal services,,, agriculture transport healthcare, etc. In ^[32]the ^[33]

The development of IoT in the world was made possible by four technological trends: reducing the cost of computing power; reducing the cost of data transmission; a rapid increase in the number of "connected" devices; cloud development and Big Data. The development of IoT is not only an increase in the penetration of "connected" devices, but also the creation of a technological ecosystem - a set of technological solutions for collecting, transmitting, aggregating data and a platform that allows you to process data and use it to implement "smart" solutions.

In foreign practice, successful examples of the implementation of IoT are known at the initiative of both the state and business. For example, with the support of the state, smart city technologies are being introduced in the countries of the European Union, South Korea, China and India, which can improve the efficiency of energy management and transport flows. In the UK and the USA, large-scale programs have been implemented to introduce "smart meters" for remote control of energy consumption in households.

IoT allows you to gain a competitive advantage by reducing costs and developing new sources of income. For example, the American company GE Aviation produces aircraft engines on which sensors are installed, which allow you to remotely receive data on operation and on their basis identify optimal algorithms for aircraft maintenance, which made it possible to reduce maintenance costs by seven times.

Another example is the mining company Rio Tinto in Australia, which uses unmanned mining dump trucks operated continuously and operated from an operations centre at a distance of 1200 km. Industrial IoT technologies are at the heart of Industry 4.0: according to the German Academy of Science and Technology, their implementation will increase the performance of German industrial enterprises by 30% on the horizon until 2025. The consumer market is increasingly filled with smart technologies: for example, according to a PwC survey in the United States, devices with smart home technology are used by every fourth consumer.

PwC research has found that companies' expectations of IoT adoption differ by industry. As part of a survey of executives from the largest companies in the countries, ATES3 were asked in which areas they expect the greatest benefits from the introduction of IoT technologies in the next three years. Most executives expect investment in IoT to reduce costs - among industrial companies, this response was the first most popular. Company executives in financial services, technology and consumer products are looking to improve customer service in the first place. At the same time, the heads of financial companies have high expectations for risk mitigation through investment in IoT. For example, it allows the development of "smart" insurance, where vehicle control data is transferred to the insurance company in real time, affecting risk assessments and insurance rates. Most tech executives also expect the IoT rollout to boost service revenue.

IoT technologies used in industry ("Industrial Internet of Things") can significantly reduce costs and increase productivity. According to a survey of the largest German companies, it was revealed that according to the expectations of companies within five years, investments in industrial Internet technologies can increase efficiency by an average of 18% and reduce costs by 14%. At the same time, IoT allows industrial companies to transform business models and increase revenues from services (for example, from after-sales services): companies predict that on average these technologies will provide revenue growth of 2.9% annually.

Gartner forecast

Analysts Gartner have estimated that by the end of 2017, there will be 8.4 billion devices connected to the Network around the world. Compared to last year, their number will grow by 31%. It is assumed that by 2020 the number of IoT devices will reach 20.4 billion units. At the end of 2017, the market volume Internet of Things in monetary terms will amount to 1.7 trillion. dollars against 1.4 trillion. dollars in 2016.

According to analysts' forecast, in 2017, global costs for IoT services, including professional, consumer and communication services, will reach $273 billion. Solutions targeting specific vertical markets, such as the manufacturing of peripherals, process sensors for power plants and medical instruments, are expected to drive the use of IoT systems in 2017.

Researchers predict that if in 2016 the cost of IoT devices amounted to $532.5 billion, then in this they will increase to $725.7 billion. By 2020, the cost of purchasing IoT devices and subscription services will almost double, reaching $1.5 trillion.

Research Nester: IoT market to grow to $724.2 billion by 2023

The global IoT market reached $598.2 billion 2015 year, and is expected to grow to $724.2 billion by 2023 by 2023. The average annual growth theme could be 13.2% during the forecast period, according to Research Nester^[34][35] will^[36]

The Internet of Things includes components and devices that enable communication and information exchange. The expansion of the e-commerce sector and the attention of manufacturers to applications and online portals for consumers is the main reason for the growth of this industry.

However, the consumer electronics segment accounted for only 32% of the IoT market in 2015. As expected, the growth of this share should be affected by the expansion of penetration of devices with remote access. The largest growth is likely to be in the Asia-Pacific region, due to the presence of large players such as Philips, Samsung, etc. This will contribute to the introduction of advanced and affordable electronics in the near future. The region accumulated 36% of the global share of revenues in 2015, and by 2023 is expected to grow by an average of 10.2%.

At the same time, North America, especially the United States, will maintain its 24.2% revenue share. The European market will generate more revenue, showing a share increase from 12.2% to 20.2%.

2016

GSMA, Markets & Markets data

McKinsey data

Juniper Research: 2016-2021: IoT market to show 200% growth

Juniper Research predicts that by 2021 the volume of the Internet of Things (IoT) market in numerical terms will triple compared to 2016. The assessment takes into account the supply of products like "smart" sensors, various actuators with a network connection, etc. According to experts, this year the volume of the corresponding segment in unit terms will amount to about 15 billion units. By 2021, growth is expected by about 200% - up to 46 billion units.

Analysts believe that the market growth will be largely facilitated by a decrease in the cost of IoT solutions. However, the development of the industry, as noted, will be fraught with a number of problems. One of them is the need for a comprehensive modernization of the communication infrastructure. Experts expect that the largest dynamics of sales growth (on average by more than 24% annually in 2016-2021) of IoT solutions will be shown by utilities and production and technical services.

Juniper Research notes that some service providers should educate customers about the benefits of IoT solutions. This procedure is necessary due to the lack of customer skills and sufficient knowledge of new technologies.

The study also reports threats associated with the implementation of IoT solutions. In 2016, several large attacks on IoT networks were recorded, and in the near future, theft of personal and corporate data and even physical damage to network objects will become the main targets for hackers.

The IoT consumer sector is especially vulnerable to malicious attacks. The fact is that vendors that produce smart watches, lamps, robotics and other connected devices pay insufficient attention to their safety. This is due to the fact that the audit of vulnerabilities requires additional costs and, accordingly, affects the final cost of devices. At the same time, industrial systems are protected more - vendors do not skimp on investments to protect critical^[37] systems^[38].

IDC: 2016-2020 Forecast

According to the IDC forecast, the IoT market will reach $1.7 trillion in 2020. In 2015, many vendors created IoT platforms and made significant investments in related applications - recall at least IBM's statement that it will invest $3 billion in the development of cloud services and software related to IoT. 2016 was even more significant for IoT: vendors began to understand their position in the market and build strategies. Many vendors are increasing their investment in IoT by allocating more money for R&D, startup financing and expanding partner ecosystems.

IDC estimated global spending on the Internet of Things at $737 billion in 2016. This amount includes the purchase of equipment, software, expenses for services, communications, etc. Global IoT spending is projected for 2020 at $1.29 trillion. Average annual growth rates from 2015 to 2020 are expected at 15.6%.

By the end of 2016, mobile operators will receive 11 billion euros from IoT services, follows from the Berg Insight report.

In the top - transport and "smart homes"

In 2016, the largest volumes of global investments were invested in the Internet of Things in the field of production ($178 billion), cargo transportation ($78 billion) and power systems ($69 billion). According to forecasts, the fourth largest segment of the market in 2016 - consumer spending on IV - will become the third by 2020. Cross-industry implementations will also increase, implementing the same scenarios for using IV for all industries. For example, Internet vehicles and smart buildings will be top market segments over the five-year forecast period. The most rapid growth in investment in the Internet of Things will be noticeable in the insurance industry, the consumption sector, healthcare and retail. ^[39] have^[40].

Growth in the IoT equipment market will be moderate

Throughout the forecast period, the main share of the IoT market will be in equipment. Despite the fact that within five years the volume of investments in equipment will almost double, this market segment will show the lowest growth rates, experts say. Areas software and services in the field of IV will grow much faster than equipment and communications. By 2020, spending on equipment for the Internet of Things will reach $400 billion.

IW for Manufacturing is the leader in investment in the United States

The largest financial investments will come from the Asia-Pacific region (except Japan), as well as from the USA, Western Europe and Japan. Almost a third of the volume of VE purchases in the region will fall on the production sector, and the energy and cargo transportation industries will change places - by the end of the forecast period they will become the second and third largest sectors of VE, respectively. In North America, the Internet of Things for production will become the leader in investment for the entire forecast period, but the share of total funding will be low (about 15%). By 2020, in Western Europe, the consumer segment of the Internet of Things will become the second largest, surpassing the volume of investments in the transport and energy sector.

Technavio: IoT growth rate in telecom to 2020 will be 42%

Analytical company Technavio released in December its report on the global telecommunications Internet of Things market. Thus, according to the company's forecasts, the Internet of Things market in telecom will increase with a CAGR of more than 42% until 2020. One of the main factors that will have a positive impact on the market will be the growing introduction of intelligent transport systems (ITS). So, thanks to ITS, telecom operators will begin to acquire, analyze and distribute network resources. In addition, intelligent transport systems will help improve the road situation. Investments in such smart solutions will cause a positive effect in the^[41] market^[42]

The main areas of application of IoT in telecommunications will be smart energy, smart healthcare, smart manufacturing, smart buildings. AT&T, China Mobile, Deutsche Telekom are expected to be the leading suppliers in the market.

J’son & Partners Consulting

Global IoT Market Estimates

In 2011, the number of connected physical objects in the world exceeded the number of connected people. Since that time, it is customary to calculate the rapid development of the Internet of Things era.

Most international analytical agencies predict that the number of connected devices in the world will reach from hundreds of millions to tens of billions by 2020, and estimates for IoT market revenues also differ by orders of magnitude.

Market participants give high estimates of the growth in the number of connected devices in the world, and these estimates differ seriously depending on the chosen methodology.

Estimates of different sources differ by an order of magnitude. According to analysts, Gartner the number of connected devices will reach 21 billion units in 2020, while Intel it gives a figure of 200 billion units.

Despite the significant differences in estimates, it is possible to note the high growth rate of the Internet of Things market, which causes serious interest in this segment from industrial companies, large device suppliers, platform and application developers, research agencies and national government agencies.

Global IoT Market Outlook in Industry Context

Despite differences in the methodology for assessing various international analytical agencies, it can be stated that the application of the new concept will be primarily related to the widespread use of the Internet of Things in the sectors of the economy.

Examples of such estimates for the number of connected devices and income by sector of the economy are given below.

Thus, Ovum predicts that the total volume of connected devices in the world will reach about 530 million units in 2019, while the largest number of such devices will be in the field of power and housing and communal services, transport, industry, health care and trade. The key driver of growth will be the continued decline in the cost of sensors and equipment, communication services, data processing and system integration. According to Machina Research and Nokia, the revenues of the global industrial Internet of Things market will reach 484 billion euros in 2025, and the main sectors will be transport, industry, housing and communal services, healthcare and applications for the Smart Home. At the same time, the main income will fall on applications, analytics and services for end users. At the same time, Machina Research and Cisco estimate the total estimates of the Internet of Things (user and corporate) market in the world to $4.3 trillion in 2025.

SAS: IoT Implementation Will Require Specialist Costs

SAS surveyed 75 organizations that define themselves as successful "pioneers" on the path to integration Internet of Things into their own. business processes Respondents presented nine industries - from industry to the public sector, and fifteen different uses. Internet of Things

Almost 20% of respondents noted "communication with customers" as the main advantage of the IoT concept, then there are "automatic diagnostics" (17%) and "asset control" (16%).

In terms of results for respondents, the list of the most anticipated aspects of IoT is led by "operational efficiency" (43%) and "user experience expansion" (36%).

Regarding the challenges faced and overcome by companies implementing the Internet of Things, TOP-3 presented:

• "the need for real-time data analysis" - 22%,
• "security issues" - 22%
• "cultural change management" -20%.

The Internet of Things blurs the lines between industries. This fact was confirmed by the involvement of external consultants in cooperation - 15% of respondents mentioned this as a productive solution in the implementation of the concept. The reason is that the capabilities of regular data scientists are limited by the scope of specialization.

There is some gap between the needs and the competencies available in companies. Many managers have already realized that preparing their own personnel for working with the Internet of Things will take a long time, while the development of the concept cannot wait for employees to gain experience and get the necessary qualifications. Therefore, at this stage, it is important for company leaders to correctly build a long-term strategy for the interaction of external and internal specialists. Mathias Coopmans, SAS Business Development Director

Verizon: Power, Housing and Utilities and Housing Monitoring - Top IoT Drivers

In the report Verizon State of the Market: Internet of Things ^[43] ("State of the market: Internet of Things 2016") it is indicated that among the various sectors in which from 2014 to 2015 there was an increase in network IoT connections, the first place is occupied by power and utilities (an increase of 58%), and the second - monitoring of residential premises (50%). Examples of IoT use in these sectors extend from power grids that become intelligent to smart home meters^[44] is ^[45]

The growth of IoT connections in the transport and commodity supply sector from 2014 to 2015 was 49%, in agriculture - 33%, and in healthcare and pharmaceuticals - 26%.

Factors contributing to the progress in using IoT will be both networks that are already beginning to evolve towards 5G and easy-to-operate platforms to provide streaming access to IoT data. These include Apple's HomeKit, Google's Brillo, IBM's Watson and Verizon's ThingSpace.

Platforms like the above provide a secure infrastructure, can be applied everywhere and allow you to see data in a more digestible format through a rationally organized dashboard. IoT will also lead to a shift from descriptive analytics (what is happening now) to predictive (what may happen) and prescriptive analytics (what should happen).

Ericsson: The number of IoT devices will bypass the number of mobile phones by 2018

According to the Ericsson report, the number of IoT devices will bypass the number of mobile phones by 2018.

The IoT segment will grow faster than connecting other devices. The annual growth of IoT connections is expected to be 23% between 2015 and 2021. By the end of the forecast period, out of 28 billion connected devices, 16 billion will come from IoT devices.

The most active growth will be demonstrated by the countries of Western Europe, where the number of connected devices by 2021 will increase by 400%. The main growth driver in Western Europe will be regulatory requirements regarding the development of smart power grids, as well as the growing segment of connected cars and the parallel development of the European eCall emergency call system, which should be equipped with all machines starting in 2018.

By 2021, 9 billion mobile subscribers, 7.7 billion mobile subscribers of the broadband network and 6.3 billion subscribers with smartphones are predicted.

The number of subscribers with smartphones will grow worldwide from 2015 to 2021 with an average annual growth rate of 10.6%, with 1.7 billion new subscribers appearing in the Asia-Pacific region alone.

Only 25% of top managers understand the strategy for introducing the industrial Internet of Things

According to a 2016 study, 81% of top managers of industrial organizations believe that the use of the Internet of Things in their activities will be the key to future success. These are the findings of a global survey conducted by the Genpact Research Institute. The study involved 173 top managers, and it turned out that only 25% of respondents clearly understand the strategy for introducing the industrial Internet of Things. Of these, only 24% of managers are satisfied with the implementation of this strategy^[46].

The study was conducted with the participation of the GE Digital technology concern (part of General Electric). According to the corporation's forecast, the volume of investments in the industrial Internet of things will reach $60 trillion by 2030, while the value of assets connected to the Internet will amount to more than $50 billion - these are equipment, equipment, turbines, rolling stock, etc. Among the respondents, two segments were highlighted: "leaders" who assess the level of use of industrial Internet of things technologies in their companies as higher compared to competitors; "strivers" who do not believe that in this direction they overtook "colleagues in the workshop."

The figure of $60 trillion takes into account the total potential of areas in which the industrial Internet of things is involved - aviation, transport, power, healthcare, automotive, factory production, mining, oil, water, wind, as well as its impact on the global economy.

35% of respondents considered the qualification of IT employees insufficient to implement a long-term strategy focused on the introduction of the industrial Internet of Things. 34% of respondents saw a potential barrier to using legacy systems.

The question of the quality of data generated by the industrial Internet of Things has also become a topic of discussion. 34% of those surveyed said the information raised problems, but not solutions. Information security has become the main criterion of concern for more than half of respondents who cited the industrial Internet of Things as a source for future cyber attacks.

2015

Gartner: In cities in 2015, 1.1 billion IoT devices

In the spring of 2015, Gartner updated its IoT market forecast for 2015: In 2015, according to Gartner estimates, cities will have 1.1 billion IoT devices, almost half of them - 45% - this year will be smart homes and commercial buildings. By 2020, according to analysts, the total number of connected things will reach 9.7 billion, and their share in residential and commercial buildings will grow to 81%. Smart cities provide technology and service providers (TSPs) with ample opportunities for profitable businesses, says Bettina Tratz-Ryan, Gartner's vice president of research, but companies must already plan, shape and market their offerings.

By the number of devices in 2015, such areas of application of the Internet of Things as:

• smart homes (294 million units),
• Housing and communal services (252 million),
• transport ( 237 million) and
• commercial buildings (206 million).

But residents of cities will invest in smart solutions at a faster pace, and in 2017 the number of connected things in residential buildings will pass the billion-dollar milestone, reaching 1,067 million units. In second place will be commercial buildings (648 million), and housing and communal services and transport will share the third or fourth places (371 million each). "Most of the investment in IoT in smart cities will come from the private sector," comments Ms Tratz-Ryan, "and that's good news for TSP as the private sector has a shorter procurement cycle than the public sector and city administrations."

Popular connected items include LED (LED) lighting, health monitoring devices, smart locks and various sensors such as motion or carbon dioxide sensors. Smart LED lighting will develop at the fastest pace of all user applications of the Internet of Things, from 6 million units in 2015 to 570 million by 2020. Smart homes will turn into a single information and intellectual environment, creating a personal space for their residents that will provide them with help and protection, experts say.

In addition to residential buildings, IoT in cities will play a prominent role in parking and traffic management, as well as in measuring traffic density. The Internet of Things is able to quickly win by eliminating traffic jams, experts say. For example, in the UK and the state of California in the United States, radio sensors or sensors are being introduced on highways that diagnose the road situation in real time. Another example of the successful application of IoT in the city is smart parking. So, Los Angeles is introducing new parking meters, sensors indicating free parking spaces, and a fully automated control system that regulates parking during peak hours.

As electric vehicles evolve, new ecosystems and directions for business will emerge. For example, car companies could invest in building traffic lights with built-in charging stations for transport, thereby reducing infrastructure costs for charging electric vehicles. Special sensors will tell drivers of such cars where there are free stations for recharging, transmitting data through mobile applications or on-board control systems.

From the point of view of economics for smart cities, the main factor is infrastructure investments, but services and analytics bring real profits to TSP providers, Gartner notes. The company expects that by 2020 the revenues of IoT companies will grow by more than 50% due to services and software sales. The security segment for smart homes in 2017 will become the second most profitable market for services, Gartner predicts. The volume of the segment of smart devices for healthcare and fitness in 2020 will be about $38 billion.

IDC: IoT market size in EMEA to exceed $50 billion

According to IDC analysts, the IoT segment in 2015-2018 will become one of the fastest growing areas, which, moreover, will be able to become a growth driver for related industries. According to IDC analysts, by 2018 the IoT market in the EMEA region alone will exceed $50 billion. At the same time, the number of connected devices will exceed 2 billion units.

IDC analysts note that the IoT segment will grow at a very high rate, which is partly due to the fact that at the moment it is almost at the birth stage. In particular, this applies to the Central and Eastern, Europe Middle East and Africa - the EMEA region.

In 2015, the Internet of Things in the EMEA region will take off, which will lead to critical technological changes, which will allow modernizing business processes. This growth of the Internet of Things will be able to become a driver of the growth of further digital transformations, much more active than observed before this year. IDC expects the Internet of Things market in the EMEA region to exceed $50 billion by 2018, by about the same time about 2 billion autonomous devices or "things" connected to each other via the Internet will be installed in this territory.

One of the areas for which IoT will become the most important driver, according to IDC forecasts, is healthcare. It is in this industry that, thanks to the development of the Internet of Things, digital transformation will go at a high pace.

Also, the increase in the penetration of the Internet of Things will increase the demand for cloud services in industry, and in addition, the increase in interaction between Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) will affect the development of the transport market. Telecommunications companies will actively develop the M2M direction.

According to analysts, by 2018, IoT spending for omni-channel operations will double. Retailers will develop the directions of digital offers and personalized promotions.

At the same time, the main concern of companies operating in the IoT segment and implementing IoT will remain security, which will contribute to the development of the security solutions market.

More than a third of government spending on public safety and emergency response systems through 2018 will come from the IoT segment. As a result, by 2020, over 35% of commercial and public monitoring systems in Central and Eastern Europe will be directly related to various public administration systems. However, the development of "smart cities" will still remain not ubiquitous, but very regionally differentiated.

In 2015, the IoT market will show double-digit growth and provide a high-income opportunity for all participants in this ecosystem thanks to the unprecedented opportunity to connect "things" in the context of both the enterprise and the consumer.

According to forecasts of the Accenture study, during a period of instability in the global economy, IoT's contribution to world production by 2030 could amount to about $14.2 trillion.

2014

Gartner: In 2015, 4.9 billion devices will be connected to the Internet, by 2020 - 26 billion

According to Gartner, by 2020, the Internet of Things (IoT) will combine 26 billion devices, and the revenue of suppliers of products and services of the IoT market will be $300 billion by this time.

In November 2014, the company presented a forecast at Gartner Symposium/ITxpo 2014, according to which in 2015 the number of devices connected to the Internet worldwide will amount to 4.9 billion, 30% more than in 2014, and by 2020 will reach 25 billion - three for each inhabitant of the planet.

The impact of the Internet of Things on the economy is growing as consumers, businesses, city officials, medicine, etc. find new ways to apply these technologies. According to Gartner estimates, total revenue from IoT-related services will be $69.5 billion in 2015 and $263 billion by 2020. Interestingly, user applications provide an increase in the number of connected devices, and the corporate sector generates most of the revenue. In the consumer sector, according to Gartner estimates, 2.9 billion devices will operate in 2015, and by 2020 - more than 13 billion. The highest growth rates of their number next year will show the automotive segment - by 96%. These figures are noticeably at odds with the forecasts of Cisco Consulting Services, according to which by 2017 there will be more industrial connections than consumer ones, and their total number will reach 50 billion.

According to analysts, in Gartner 2015, the three main vertical markets where IoT technologies will be used will be production, utilities and transport: these three industries will account for a total of 736 million connected devices. But by 2020, utilities will come first, production will be second, and the third will be occupied by state organizations, and together they will use 1.7 billion "things." The share will states grow as city administrations allocate funds for "smart" lighting of streets and residential areas in order to save electricity, Tully notes, and the utilities will overtake everyone by investing in smart meters.

Connected devices such as ATMs or airport check-in terminals have existed before, but now even the most common items are being "reinvented," acquiring digital sensors, computing and communication capabilities, experts say. Thus, things get a "digital voice" and the ability to create and transmit streams of information about their own state and about their environment. This allows you to offer previously impossible services and device use cases, developing new business models.

Apparently, in the next few years, some level of built-in intelligence and communication capabilities will become the standard for devices, analysts believe, and this standard will quickly begin to spread "down" to consumer products and services.

BI Intelligence: "Internet of Things" will become the largest electronics market

According to forecasts of the research company BI Intelligence, by 2019 the Internet of Things will become the world's largest market in terms of the number of electronic devices, ahead of the markets for smartphones, personal computers, tablets, wearable gadgets and smart cars combined in terms of volume.

The economic effect of the development of the IoT sector will be expressed as $1.7 trillion. This amount will include software and hardware sales, hardware installation costs and management services. Sales of devices representing this market will occupy only 8% (about $50 billion) in its volume, and the lion's share of revenues will be provided by software manufacturers and infrastructure companies.^[47]

Experts expect that from 2014 to 2019, deliveries of Internet of Things-related devices will increase annually by an average of 61% and reach 6.7 billion units by the end of the forecast period. Most of the product shipments will come from the public sector, while the corporate segment now dominates. Another major market for the Internet of Things will be consumer, the study said.

The peak growth of the Internet of Things market will be in 2015

As the IoT market grows, analysts say its efficiency will increase and costs will decrease. As for the main problems in the IoT industry, BI Intelligence employees include the lack of uniform standards and technologies that can establish compatibility of various electronics and simplify its use.

2013

IDC: IoT market volume in 2013 - $42.2 billion, forecast for 2018 - $98.8 billion

The IoT market is expected to grow from $42.2 billion in 2013 to $98.8 billion in 2018. Thus, the CAGR over 5 years will be 18.6%. The use of digital video advertising (Digital Signage) technologies in large shopping centers and on the streets will grow from $6.0 billion as of 2013 to $27.5 billion by 2018. In this area, the average annual growth rate (CAGR) for the five-year period will be 35.7%. Major retailers will continue their intensive adoption of digital technologies to improve the quality of interaction with the buyer.

retail Government projects, industry, health care and other sectors of the economy will have a significant impact on market growth. The most common IoT technologies will be used in Digital Signage, medical devices for remote monitoring of health parameters, automated public, transport connected vehicles (in particular,), cars as well as in air traffic monitoring tools.

Investment in IoT in 2013 amounted to $1.2 billion

The number of smart things, for example, according to the MIT Technology Review Business Report, will exceed the number of smartphones and PCs by 2020.

In world practice, investments in IoT in 2013 amounted to about $1.2 billion, and in the first quarter of 2014 - more than $868.26 million. The main investors in the world are: Intel Capital, True Ventures, Foundry Group, Doll Capital Management, First Round Capital, The Social + Capital Partners, and in Russia these are TMT Investments, Leta Capital and Maxfield Capital.

Cisco CEO: IoT will generate $14 trillion in revenue in the next 10 years

In May 2013, the head of the company Cisco John Chambers (John Chambers) at the AllThingsD's D11 conference announced that the new technology market related Internet to things (Internet of Things (), IoT in the next decade, will generate $14 trillion in revenue. "" Internet of Things will become the largest component of the IT market in the next 10 years.

According to Chambers, this statement is based on Cisco research in this area. In May 2013, the company also presented a new report on Internet trends. According to the forecasts contained in it, by 2017 there will be about 2.8 billion machines on the Internet, which is 30% of all devices connected to the global network worldwide. In 2012, this figure was 960 million and 17%, respectively.

The growth of penetration of these devices will provoke the growth of the market for related applications, services, support services, as well as encourage business and service providers to update their networks. Without a doubt, these processes will become a source of profit for many technology companies, Cisco is confident.

2010

Cisco IBSG: By 2015, 25 billion devices will be connected to the Internet

Looking ahead, Cisco IBSG predicts that 25 billion devices will be connected to the Internet by 2015, and 50 billion devices by 2020. It is important to note that these forecasts do not take into account the accelerated development of Internet technologies and devices. The indicators presented in Figure 1 are based on the views for 2010.

There is nothing permanent in our world, especially on the Internet. Initiatives and achievements such as Cisco Planetary Skin, HP CeNSE (Central Nervous System for the Earth) and smart dust can connect millions and even billions of sensors to the Internet. As cows and other animals, as well as plants, water pipes, people and their shoes, connect to the Internet of Things, our world may change for the better. When a trillion sensors with all the accompanying computing systems, software and services connect to the Internet, we will hear Earth's pulse.

According to Peter Hartwell, a senior researcher at HP laboratories, this will cause profound changes in our life to become revolutionary transformations in the field of communications that occurred during the previous stage of Internet development.

IMS Research: 5 billion devices connected to the Internet, in 2020 there will be 22 billion

According to analysts at IMS Research, in August 2010 the number of devices connected to the Internet worldwide will pass in five billion, and in ten years it will increase at least four times more - to 22 billion.

An obvious source of growth is the increase in the number of mobile phones and other consumer electronic devices. At communication Internet present, about a billion personal computers and laptops are regularly published. But the number of smartphones other cellular devices with an Internet connection in the world has exceeded a billion and is growing at a much faster pace. According to IMS forecasts, in ten years there will be 6 billion of them. Approximately 2.5 billion TVs will be replaced by models with a network connection (directly or via set-top boxes).

However, much more important, emphasize in IMS Research, is the expansion of the field of application of other devices that communicate with each other via the Internet: electricity meters, surveillance cameras and other sensors. Smart networks will control the operation of climate equipment and other household devices, traffic and parking.

See also

• Internet of Things (IoT)
• Internet of Things, IoT, M2M (Global Market)
• Internet of Things, IoT (Russian market)
• IIoT - Industrial Internet of Things
• Internet of Things: you can't stay in time
• RFID
• Smart Grid
• NB-IoT Low-Power and Wide-Area Standard, LPWAN
• Non-IP Data Delivery (NIDD)
• APCS

• Internet of Things in Medicine
• Internet of Things in Telecom
• Internet of things in housing and communal services

• Big Data
• Big Data (Big Data) Global Market
• Big Data in Russia
• Big Data in E-Commerce

Notes