International Data Corp., June 10, 2014

As the growth of the Internet of Things market continues, new studies predicting the size of the market have emerged. International Data Corp. (IDC) has predicted that the worldwide market for IoT solutions will grow from $1.9 trillion in 2013 to over $7 trillion by 2020.

ABI Research estimates the number of developers involved in IoT solutions will reach 1.7 million worldwide by the end of 2014. By 2019, the the IoT ecosystem will surpass three million developers, representing approximately 10 percent of all software developers.

IDC defines the Internet of Things as a “network of networks of uniquely identifiable endpoints (or “things”)” that communicate without human interaction using IP connectivity, locally or globally.

IDC expects that 28 billion devices will be connected through the IoT by 2020. Consumers continue to experience and embrace IoT in their homes, such as wireless thermostats like the Nest, in their cars, and in many other aspects of their daily life.

Globally, individuals are developing a high affinity for full-time connectivity, which makes consumer IoT a compelling proposition. Businesses are intrigued by the efficiencies, business process implications, and revenue opportunities IoT solutions can generate.

“Businesses are taking the necessary steps to gain a deeper understanding of IoT and the overall value,” says Vernon Turner, senior vice president of IDC’s Enterprise Infrastructure, Consumer, Network, Telecom and Sustainability Research.

“Technology vendors are evolving their solutions in a supply-driven market that’s edging toward becoming a more demand-driven market.”

IDC’s research reveals that developed regions garner the majority of the IoT market, representing approximately 90 percent of installed units. In addition, IDC predicts that the worldwide IoT installed base will experience a compound annual growth rate of 17.5 percent through 2020.

Dan Shey, ABI Research practice director, says the IoT may actually represent the beginning of a hardware renaissance.

“After all the talk about hardware being irreversibly commoditized and software ‘eating the world’ we may be actually soon witnessing a counter-trend in the technology industry, driven by the IoT,” he says. “Consumers will shun away from anything that is not inspiringly designed and robustly produced, so any consumer-facing IoT play needs to deliver on both of those fronts if it is to have any traction.”