tmt-predictions-15

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The Internet of Things really is things, not people

TMT Predictions 2015

Deloitte predicts that in 2015 one billion wireless Internet of Things (IoT) devices will be shipped, up 60 percent from 2014, and leading to an installed base of 2.8 billion devices.

Executive summary

Deloitte predicts that in 2015 one billion wireless Internet of Things (IoT) devices will be shipped, up 60 percent from 2014, and leading to an installed base of 2.8 billion devices . The IoT-specific hardware (which could be a more expensive cellular modem, or a much cheaper Wi-Fi chip) is likely to be worth $10 billion, and the associated services enabled by the devices worth about $70 billion. Services include all of the data plans that may be necessary to connect a device over a network, the professional services (consulting, implementation, or analyzing the data) and then things like an insurance policy discount for a telematics device in a car or a wearable device for health purposes.

IoT hardware and connectivity revenues are growing at about 10-20 percent annually, while the apps, analytics and services are growing even more rapidly at 40-50 percent. While the press may focus on consumers controlling their thermostats, lights and appliances (from washing machines to tea kettles), Deloitte predicts that 60 percent of all wireless IoT devices will be bought, paid for and used by enterprises and industries, and 90 percent of the services revenue will likewise be enterprise-driven.

Modern wireless technology, whether cellular or Wi-Fi, allows a consumer with a smartphone to perform multiple useful tasks remotely: from controlling appliances to home security, climate control and lighting.

Despite all the media excitement around consumer uses for the Internet of Things, most items are selling in the hundreds of thousands as connected devices, sensors or controllers; very few are selling in their millions. Meanwhile enterprises are buying and using tens or even hundreds of millions of IoT devices. Smart meters, smart grids, smart homes, smart cities and smart highways are just some examples. Factories, mHealth, shared transportation solutions (such as car and bike rentals) or resource industries can all benefit too.

The Internet of Things really is things, not people

1For a complete list of references and footnotes, please download the full PDF version of the TMT Predictions 2015 report.

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