Revenues from the Internet of Things are set to top $3 trillion in 2025, up from $750 billion last year, new research has claimed.
Machina Research said more than one third, or $1.3 trillion, of the revenues in 2025 would be derived “directly” from end users in the form of devices, connectivity, and application revenue.
Most will be delivered via short range technologies such as Wi-Fi and Zigbee, and low-power wide area technologies such as Sigfox and LoRa.
The remainder will come from “upstream and downstream” IoT-related sources, such as application development, systems integration, hosting and data monetisation.
Last year, the research firm forecast that revenues would reach just $1.6 trillion by 2024.
Founder and CEO Matt Hatton said the significant jump was down to the fact last year’s report only counted spend on IoT applications by end users.
Meanwhile, the total number of IoT connections will grow from six billion in 2015 to 27 billion in 2025.
China will account for 21 percent of global IoT connections and 19 percent of revenue, while the US will account for 20 percent and 22 percent, respectively.
Japan will be the third largest market, with seven percent of all connections and six percent of revenue.
Hatton said Europe would represent around 27 percent of global application revenue.
“This year the top line figures of 27 billion connections and $3 trillion of revenue are eye-catching and the opportunity is substantial. However it’s not just a case of rising tides lifting all boats,” said Hatton.
“To take advantage of the opportunities in IoT, suppliers need to understand the key market dynamics and their competitive environment, and develop best practice.”