The Intelligent Systems Market, also known as the IoT (Internet of Things) is expected to be worth about 2.2 trillion dollars by 2020—that’s trillions, not billions! In 2014 this market generated about 1.43 billion U.S. dollars in revenue.
This new tech era is in essence, a marriage of the digital and physical worlds at a very large scale. In a Press Release from IDC, they state, “The report forecasts that intelligent systems will log a compound annual growth rate (CAGR) of 7.2% from 2015-2020 with revenues exceeding $2.2 trillion in 2020.”
The press release goes on to say; “The vision of intelligent connected systems is real and far-reaching,” said Mario Morales, program vice president, Enabling Technologies, and Semiconductors at IDC. “The IT (Information Technology) and OT (Operational Technology) industries are moving beyond the Internet of Things (IoT) buzz and are now deploying intelligent systems in specific markets like retail, industrial automation, automotive systems, and directly in our homes. Despite IT vendors and technology suppliers maintaining the initial mind share as the key builders of the IoT world, the vision, implementation, and ecosystem is centered on OT companies like GE, Siemens, ABB, GM, Bosch, Ford, Volvo, Toyota, Samsung, Honeywell, Hitachi, and others that hold decades of system knowledge and an entrenched position in each of the major industries investing in the next wave of embedded and intelligent systems.”
Smart Home, Security, Fitness and Health monitoring are just a few of the consumer markets who’s smart tech products fall under the Internet of things (IoT) umbrella. Beyond the consumer markets are the industries that will utilize IoT tech, like medical, insurance, automotive, industrial. On top of that is the eco-system and cloud services that support the IoT.
Cloud technology is at a point where it can handle a large scale proliferation of smart devices and sensors as mentioned later in the IDC press release. ”A radical transformation is underway from the cloud to the edge of every major system. In an effort to address the opportunity, both edge and cloud infrastructure needs to continue to scale and support trillions of sensors and billions of systems,” said Les Santiago, research director, Wireless and IoT Semiconductors at IDC. “Increasing intelligence at the edge will be one of the primary drivers of growth of the overall semiconductor market over the next few years against the backdrop of a maturing smartphone and PC market and a difficult pricing environment in the memory markets. As such, vendors would benefit from structuring their product portfolios to take advantage of this trend.”
With all this Smart Tech coming our way continued growth for the companies that make the components, chips and sensors that go into these products as well as the services that support the IoT is expected.