The CEO of analyst firm Beecham Research has hit out at the hype surrounding the IoT and the potential revenues some are predicting it will create.
Amid some forecasts of IoT revenues in the trillions of dollars, Robin Duke-Woolley said everyone needed to “get real” about the potential size of the market.
Taking the total GDP of the United States – currently $18 trillion dollars annually, according to the IMF – as an example, the CEO said that to suggest revenues from the IoT would approach even 10 percent of this over a 5-10 year period was “unrealistic and unhelpful”.
Last month, Orange’s VP of Digital Innovation outlined how the France-based operator aims to generate €600 million in revenues from connected objects by 2018.
Duke-Woolley said: “There is no doubt that the M2M and IoT markets are moving quickly and there are great new business opportunities, but with unrealistic predictions around the growth of connected devices, there is also the risk that companies will run out of time and money before they see a return on their investment.
“We know that today, excluding mobile phones and general purpose devices like tablets, there are significantly less than one billion connected devices worldwide.
“To suggest that growth rates exceeding 50 percent per annum are credible when the long term growth in this market has been consistently in the range 20-30 percent per annum prompts the question – why and what is likely to accelerate the overall growth rate so spectacularly?
“There is no answer to that. Equally problematic, even if those numbers could be achieved in shipments, there is not nearly enough resource available to install and implement them.”
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