Gartner predicts 25 billion 'things' by 2020

Gartner Inc, a leading information technology research and advisory company, has released a report forecasting that 4.9 billion connected things will be in use by 2015, climbing swiftly to 25 billion only five years later. The report suggests that the Internet of Things (IoT) has become a powerful force for business transformation and its disruptive influence will be apparent across all industries and all areas of society.

The report refers to the Nexus of Forces (NoF), a concept Gartner developed that describes how the convergence and mutual strengthening of social media, mobility, cloud computing and information patterns are creating new business opportunities. NoF has instigated a digital shift and, in combination with IoT, represents a major threat to existing businesses. Gartner VP and analyst Jim Tully says that companies will have no choice but to pursue IoT, much as they had to with consumerisation of IT.

It is envisaged that, while consumer applications will drive the number of connected things, enterprise will account for much of the revenue. Consumer growth is estimated to move from 2.9 billion connected things in 2015 to over 13 billion in 2020. By 2020, the top business user will be the utilities sector, due to investment in smart metering. Government spending on smart street and area lighting will see it take third spot.

There are many existing connected things, of course, including ATMs and airline check-in kiosks, but an increasing number of new devices and objects are being invented and reinvented to incorporate sensing and communications capability. The impact of providing previously passive devices with a digital voice will be far reaching, as these types of developments tend to radically change the value proposition and create new scenarios that in turn provide new business opportunities.

The full report can be found here