The worldwide market for Internet of Things technology -- comprising software, services, devices and connectivity -- reached $130 billion this year, according to a new forecast by GlobalData.
The IoT market is projected to grow 20% a year, reaching $318 billion by 2023.
Software and services -- including project management, engineering, installation and maintenance -- is projected to be the largest market opportunity. Solutions for utilities, government and manufacturing will account for 58% of the market this year and an estimated 55% in 2023, followed by transportation and energy at 15% of the market.
“The diverse ecosystem of providers offering software and services makes this segment especially competitive,” stated Kathryn Weldon, technology analyst at GlobalData. “Operators are vying to offer value-added services beyond connectivity, while network and infrastructure vendors are branching out into IoT platforms and applications.”
Capabilities involving new technologies such as augmented and virtual reality and artificial intelligence will change how companies use the Internet of Things, including the generation of new revenue streams via the development of new products and services, according to the report.