Overall IoT Connections on cellular across the US are forecast to grow from 42 million at the end of 2014 to 203.1 million in 2020 at a compound annual growth rate (CAGR) of 30 percent, according to Compass Intelligence, a market analytics and consulting firm. Out of this, the Business IoT Connections are expected to grow from 20.3 million to 145.6 million (CAGR of 37.7 percent) while consumer IoT Connections are expected to grow from 21.7 million to 57.5 million (CAGR of 17.7 percent) for the same tenure.
Compass Intelligence said that in 2020, retail applications such as vending, PoS, transaction terminals and digital signage are expected to be the largest applications within the Business IoT space as advertising continues to grow and the need for quick updates to content becomes even more critical. This is a major shift from the current concentration of IoT connections in areas such as fleet tracking and portable asset tracking.
On the consumer front, in 2014, connected car (OEM telematics) was the largest application with over 8.7 million cellular connections. In 2020, smart home and alarm monitoring solutions are expected to be the largest application in this segment.
Compass also added that industrial IoT which includes applications such as industrial automation and building automation are expected to grow rapidly over the next 5 years with CAGR exceeding 60 percent. This is the biggest area of focus for MNOs, industrial vendors and service providers, said the firm, as it presents them with a tremendous growth opportunity from upgrades of existing infrastructure.
Keith Robinson, Director of M2M & IoT Research & Consulting
The IoT market is revealing itself to really focus on businesses, rather than consumers. While consumer applications can help companies create buzz and media coverage, the real money to be made in IoT is with businesses. To be successful in the industry, vendors and service providers must work with Enterprise management software powerhouses to develop solutions that integrate all aspects of a business with IoT.
