STAMFORD, Conn. — Gartner Inc. forecasts that 6.4 billion connected devices will be in use worldwide in 2016, up 30 percent from 2015, and will reach 20.8 billion by 2020. In 2016, 5.5 million new devices will get connected every day.

Gartner estimates that the Internet of Things (IoT) will support total services spending of $235 billion in 2016, up 22 percent from 2015. Services are dominated by the professional category (in which businesses contract with external providers in order to design, install, and operate IoT systems); however, connectivity services (through communications service providers) and consumer services will grow at a faster pace.

“IoT services are the real driver of value in IoT, and increasing attention is being focused on new services by end-user organizations and vendors,” said Jim Tully, vice president and distinguished analyst at Gartner.

“Aside from connected cars, consumer uses will continue to account for the greatest number of connected things, while enterprise will account for the largest spending,” said Tully. Gartner estimates that 4 billion connected devices will be in use in the consumer sector in 2016, and will reach 13.5 billion in 2020.

In terms of hardware spending, consumer applications will amount to $546 billion in 2016, while the use of connected devices in the enterprise will total $868 billion in 2016.

In the enterprise, Gartner considers two classes of connected things. These consist of generic or cross-industry devices that are used in multiple industries, and vertical-specific devices that are found in particular industries.

Cross-industry devices include connected HVAC, lighting, and building management systems that are mainly deployed for purposes of cost saving. The second class includes vertical-specific devices such as specialized equipment used in hospital operating rooms, tracking devices in container ships, and many others.

“Connected things for specialized use are currently the largest category; however, this is quickly changing with the increased use of generic devices. By 2020, cross-industry devices will dominate the number of connected things used in the enterprise,” said Tully.

For more information, visit www.gartner.com.

Publication date: 12/31/2015

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