The Internet of Things, which excludes PCs, tablets and smartphones, will grow to 26 billion units installed in 2020 representing an almost 30-fold increase from 0.9 billion in 2009, according to Gartner.
The Internet of Things product and service suppliers will generate incremental revenue exceeding $300 billion, mostly in services, in 2020. It will result in $1.9 trillion in global economic value-add through sales into diverse end markets.
“The growth of the Internet of Things will far exceed that of other connected devices. By 2020, the number of smartphones tablets and PCs in use will reach about 7.3 billion units,” said Peter Middleton, research director at Gartner. “In contrast, the Internet of Things will have expanded at a much faster rate, resulting in a population of about 26 billion units at that time.”
“By 2020, component costs will have come down to the point that connectivity will become a standard feature, even for processors costing less than $1. This opens up the possibility of connecting just about anything, from the very simple to the very complex, to offer remote control, monitoring and sensing,” said Mr. Middleton. “The fact is, that today, many categories of connected things in 2020 don’t yet exist. As product designers dream up ways to exploit the inherent connectivity that will be offered in intelligent products, we expect the variety of devices offered to explode.”
Due to the low cost of adding the Internet of Things capability to consumer products, Gartner expects that “ghost” devices with unused connectivity will be common. This will be a combination of products that have the capability built in but require software to “activate” it and products with the Internet of Thing functionality that customers do not actively leverage.
(Press release: Gartner Says the Internet of Things Installed Base Will Grow to 26 Billion Units By 2020)