The Global IoT market opportunity will reach USD4 trillion by 2025
Machina Research expands the scope of its IoT forecasts and highlights a USD4 trillion revenue opportunity in 2025.
Machina Research comprehensively extends the coverage of its IoT forecasts to include almost the entirety of the Internet of Things revenue opportunity, predicting it will rise from USD892 billion in 2015 to USD4 trillion in 2025.Machina Research today announced the expansion of its industry benchmark IoT Forecast Database. Until now, Machina Research has focussed on publishing machine-to-machine (M2M) forecasts, covering numbers of connected devices and also the commercial opportunities flowing from those connected devices and associated services. It is, however, clear that the Internet of Things (IoT) encompasses much more than just M2M, and represents a far greater revenue opportunity than that represented by just M2M applications.
In order to publish IoT forecasts that reflect the true scale of the IoT opportunity, Machina Research has undertaken an initiative to forecast these ‘missing’ revenues. Specifically, they have now added revenues associated with IoT-like applications that are powered by ‘exhaust data’ from M2M applications as well as more ‘horizontal’ revenue types such as application development and project work, which have not been included in our forecasts so far (other than indirectly, via M2M application revenues for deployed services, where relevant).
Machina Research has therefore incorporated the below in the scope of its IoT Forecasts:
- Project work, including work by systems integrators and strategy consultancies
- Platforms and middleware, including middleware and all platform activities other than connectivity support
- Applications, including application provision and hosting and application development
- Data monetisation, including API monetisation, and sales of data and IoT services
As a result of adding these additional elements Machina Research’s overall forecast for the total value of the IoT market in 2025 is USD4 trillion, up from USD892 billion in 2015.
Commenting on the importance of these changes, Jim Morrish, Founder and Chief Research Officer of Machina Research commented:
“These new forecasts represent a significant step forwards in analysing opportunities associated with our connected future, reflecting as they do our expectation that the concept of IoT will subsume almost all of IT within the medium term future.”However, Jim also commented that the figures should be interpreted with caution:
“for instance, forecasting the revenue opportunity for an IoT platform will always be a far more complicated exercise than simply referencing estimates of market size. We do have existing frameworks for this kind of analysis and they are complex and detailed, and bear only limited relation to investments that are likely to be made in the platforms space.”