The market for products related to the Internet of Things will increase 19 percent in 2015, and one of the biggest growth areas will be digital signage in retail stores.
The use of digital signs in retail outlets is expected to grow from $6 billion in 2013 to $27.5 billion in 2018, a 35.7 percent, five-year compound annual growth rate (CAGR), as retailers continue to digitize the consumer experience, according to International Data Corp.'s second annual forecast on the IoT. The total worldwide retail opportunity for IoT in 2015 is $37.6 billion.
Another major growth area is manufacturing operations, which will grow from $42.2 billion in 2013 to $98.8 billion in 2018, an 18.6 percent five-year CAGR. This growth will be driven by ongoing efforts to increase efficiency and connect islands of automation, IDC reported. Connected vehicles will grow 34.8 percent year-over-year in 2015.
According to research company Berg Insight, total IoT platform revenues will grow at a CAGR of 32.2 percent from about $500 million in 2014 to about $2.6 billion in 2020, CIO Today reported. This increase will occur as machine-to-machine communications move from vertical single-purpose solutions to multi-purpose and collaborative applications, interacting across industry verticals, organizations and people. In other words, the Internet of Things.
"M2M often involves highly customized solutions deployed within single industry verticals or companies to improve existing business operations," said André Malm, senior analyst at Berg Insight. "IoT focuses on gaining new insights from analytics based on data from diverse sources to support decision making and improve products and services."
Berg numbers for the global shipments of connected digital signage displays show growth of 21.7 percent to 7.3 million units in 2014, Information Week reported. This growth is being driven by more demand for digital signs in a variety of markets as well as technical advances and declining prices.
Both the high-end and entry-level segments of digital signs will expand concurrently. Berg said the global shipments of digital signage displays will grow 18.7 percent CAGR in the next five years, reaching 17.2 million units by 2019.
The number of connected digital signage displays around the world is predicted to grow from 25.4 million in 2014 at a growth rate of 20 percent, approaching a total of 64 million in 2019.
Research from OpenText predicts the overall market will see 50 billion devices connected by 2020 and a value of $14.4 trillion, Mark Barrenechea, OpenText president and CEO, told CIO Today. OpenText's number accounts for all IoT considerations.
"Its potential impact is huge," Barrenechea said. "Thanks to the IoT, many of our everyday appliances will soon have the ability to self-monitor and communicate with a network of relevant products/services.
"Organizations in both the public and private sector are already using sensor-based technologies to improve inventory control and manage energy through smart grids. As we progress through 2015, more and more people will come to realize the IoT is simply the next evolution of the internet."
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