The worldwide Internet of Things (IoT) market is forecast to grow 19 per cent in 2015, according to analyst firm IDC.
Across the globe, digital signage use in retail outlets is expected to see the strongest growth, with predictions this IoT use case will increase from $6.0 billion in 2013 to $27.5 billion in 2018, representing a 35.7 per cent five-year compound annual growth rate (CAGR). This is largely being driven by retailers continuing to digitise the consumer experience.
In the US, the fastest expanding use case is in connected vehicles, with 34.8 per cent year-over-year growth anticipated in 2015.
Strong growth is also forecast for IoT in manufacturing operations, with ongoing efforts to increase efficiency and link areas of automation driving growth from $42.2 billion in 2013 to $98.8 billion in 2018, a five-year CAGR of 18.6 per cent.
IDC’s second annual IoT forecast focuses on the use of IoT in 11 vertical industries, including consumer, retail, healthcare, government, manufacturing, transportation and other industries, as well as evaluating IoT opportunities for 25 vertical-specific use cases, such as smart appliances, automated public transit, remote health monitoring, digital signage, connected vehicles, and air traffic monitoring.
According to Bob Kraus, senior research analyst, global technology and industry research organization, IDC, the forecast is a valuable tool for business leaders evaluating vendor opportunities in IoT for a 12-layer technology stack, which includes modules/sensors, software, installation/ongoing services, and connectivity.
A forecast update is planned for November 2015 and will evaluate additional vertical-specific use cases, including smart agriculture.
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