Internet of Things (IoT), the emerging buzzword in almost every single business industry, can be termed as the new moneymaker in 2019 and years to come. That’s because IoT is striking a new revolution where increasing needs for a connected device ecosystem is becoming essential from two perspectives – One from the convenience and the other from innovation.
By the year 2021, the worldwide market share of this technology would add up to a whopping $1.13 Tn and that’s certainly a massive figure. With the rise of this technology in the past two years, every business has realized it’s real potential. Due to this, we could observe a lot of companies popping up driven by IoT Technology.
Out of the total IoT projects that started in the Asia Pacific, European and American regions, more than 80% of them deem themselves as successful investments. This is going to increase in 2019 and years to come after that hugely. Hence for entrepreneurs in 2019 and beyond, this particular technology is going to become the new emerging money-making machine.
By the Year 2021,
- The USA will account for 24.2% of global market share in this technology with a CAGR rate of 13%.
- Europe will have a 20.3% share in the market at a CAGR rate of 17%.
- The Asia Pacific region will account for 38.9% of the global market share with a 12.3% of CAGR rate.
- Japan will account for 9% of the market share and will have a CAGR rate of 16.7 %.
The Evolution of IoT
When the Internet of Things started a couple of years back, their major industry trends were seen across segments like manufacturing, utilities, and transportation. As the technology developed, today we can see this technology in almost every type of consumer industry segments along with the previous ones.
The future of this technology can be seen in the development of smart cities that come under cross-industry data sharing and exchange. This means one thing for sure – IoT applications will be playing a massive role in technology backed development in the year 2019 and years to come after that.
Even though the Internet of Things has faced quite a few challenges in its emergence, still it is finding a way to become mainstream in entrepreneurship. That’s because of the decline in the cost and investment required to kick-start an IoT based business.
Some of the significant challenges were – Security and integrity aspects and the shortage of relevant talent. But these have become the least concern due to proper development and evolution in this technology.
Now let’s come to the spending percentage for this technology globally. IoT applications that run any business usually comprises of four essential components –
In 2018 each of these components accounted for 30.9%, 24.5%, 15.6% and 28.9% respectively.
But, by the year 2021 arrives these percentages will change to 29.6%, 25.5%, 15.4%, and 29.4% respectively.
What Can We Conclude From This Observation?
Spending on IoT related software development and providing relevant services will rise by 2021. Hence, this will increase the opportunity for entrepreneurs to emerge out as the money-making businesses by providing IoT related services to almost any kind of industry segment.
By the year 2021, IoT Projects are predicted to see spending of around –
- $329 Bn in America,
- $500 Bn in the Asia Pacific region, and
- $264 Bn across the European Region.
This significant spending is all set to bring a disruptive change in digitally-driven entrepreneurship across more than 50 major industry segments.
What We Will See Is,
Manufacturing, transportation, utilities, home automation, environmental monitoring, connected vehicles, retail and many more growing and becoming primary applications this technology. By 2021, the majority of industry verticals will adopt IoT somehow or the other, according to IDC.
So, What Should Be Your Major Takeaway?
IoT is going to sweep into every significant industry segment in the next couple of years.
We will see significant industry segments becoming dependent on IoT for innovation and solving day to day problems of the users. With such massive spending across different regions of the world, technology is going to overtake business drastically.