Digitalisation will significantly change the technology market through the Internet of Things, according to a report by Gartner Inc.
While IT spending in Europe, the Middle East and Africa (EMEA) will show an average annual growth rate of 2.2 per cent through 2017, the Internet of Things (things, people, places and systems) will create new markets and a new economy.
“The traditional IT market is not going to grow at a faster rate any time soon, if ever. Increased growth will come from the non-traditional IT market,” said Peter Sondergaard, senior vice president at Gartner and global head of Research.
“While in 2015 the combined IT and telecom market will hit nearly $4 trillion, the incremental revenue generated by the Internet of Things’ suppliers is estimated to reach $309 billion per year by 2020. Half of this activity will be new start-ups and 80 per cent will be in services rather than in products. The Internet of Things is a strategically important market. It will accelerate fast and will drive both revenue and cost efficiencies,” Sondergaard added.
In 2009, there were 2.5 billion connected devices; most of these were mobile phones, PCs and tablets. In 2020, there will be over 30 billion devices connected, it added.
“The Internet of Things will create greater economic value for all organisations, and for the global economy,” said Sondergaard.
Gartner predicts that the total economic value add for the Internet of Things will be $1.9 trillion in 2020, seen across a number of industries. The verticals that are leading its adoption are manufacturing (15 per cent), healthcare (15 per cent) and insurance (11 per cent).