The enterprise market will drive hardware spending in the IoT market next year, but its dominance will be shortlived, according to new research.

Businesses will spend $868 billion (€810bn) next year on IoT-related hardware as the number of devices hits 2.4 billion, according to Gartner’s latest forecast.

The forecast includes generic or cross-industry devices that are used in multiple industries, and vertical-specific devices that are found in particular sectors.

Gartner analyst Jim Tully said: "Connected things for specialised use are currently the largest category, however, this is quickly changing with the increased use of generic devices.

“By 2020, cross-industry devices will dominate the number of connected things used in the enterprise.”

The consumer market will attract $546 billion (€510bn) of hardware spending in 2016 but will account for a larger number of connected devices – four billion.

The tables turn in 2020, however, as spending on consumer hardware outpaces that of business hardware by 180 percent to 70 percent compared to 2016.

Meanwhile, the number of connected consumer devices is expected to reach 13.5 billion in five years time versus 7.3 billion enterprise-focused devices.

On top of the number of devices and hardware spending, the research firm predicts that the IoT will support services spending of $235 billion (€219bn) in 2016, up 22 percent from 2015.

[Read more: Analyst firm slaps down 'unrealistic' and 'potentially damaging' IoT predictions]

Services are dominated by businesses contracting external providers to design, install and operate IoT systems, but connectivity - via operators – and consumer services will grow at a faster pace.

Tully commented: “IoT services are the real driver of value in IoT, and increasing attention is being focused on new services by end-user organisations and vendors.”

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms