80bn ‘things’ connected by 2020

IDATE has published its report on the Internet of Things market. It provides an opportunity to clarify the frontiers of this new market and to present and analyse the key building blocks; the market structure, the players’ strategies and the dynamics of the key vertical markets (automotive, aeronautics, energy, food and retail, connected home, healthcare, textile).

The Internet of Things is a concept whereby any item can connect to the Internet to retrieve information to enhance its intrinsic value. The scope of the Internet of Things (IoT) is therefore very broad. It includes communicating devices and M2M but it aims to go beyond M2M by enabling any object to connect and leverage the Internet (Internet of Objects – IoO) even if it does not contain the electronics required to connect directly to the Internet; it connects to the internet with the use of an intermediate device.

According to this definition, 15 billion things (machines, connected devices and objects) were connected to the Internet in 2012, up from 4 billion in 2010. According to Samuel Ropert, project leader of this report “In 2020, there will be 80 billion where IoO will represent 85 per cent of the total IoT, ahead of communicating devices with 11 per cent and M2M with only 4 per cent.” In terms of growth, IoO still leads with a 41 per cent CAGR between 2010 and 2020, followed by communicating devices with 22 per cent CAGR and M2M with 16 per cent CAGR.

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