If we look at analyst forecasts for IoT market growth, we often see a hockey stick with seemingly no end to growth. Ten-year forecasts point to 30bn+ IOT devices with around 30% being new connections
The fact remains that all technology markets pass through various phases of development, and as a market matures, growth in device numbers / connections and revenues begin to flatten. IoT is no exception to these market dynamics.
Forecasts point to a CAGR of around 10% over the next ten years. We could assume that IoT is heading towards the latter stage of its growth phase and high growth rates will start to reduce over the next few years to reflect more mature market characteristics. This naturally has implications for IoT suppliers in terms of the strategies they adopt as the market dynamics shift.
Across the IoT market as a whole, growth appears to be slowing as the market matures. Based on a recent TecFutures survey, CSPs expect to see an average growth of 6.5% in enterprise IoT connections by volume in the next 12 to 24 months although MNOs are a little more optimistic than MVNOs.
So the big question is whether developments around connectivity, device functionality, and even the incorporation of AI into the service wrap give IOT added impetus and drive revenue growth?
Read more in our latest report at www.tecfutures.com/unlocking-value-in-enterprise-iot free to download. And follow TecFutures for more content and views on developing a successful market strategy in a potentially flattening market.
Find out more, Reach out to Phil Todd or Andrew Parkin-White. TecFutures: Helping clients build competitive advantage and revenue growth with tailored advisory solutions. We design custom consulting projects that deliver strategic insight and analysis to global technology ecosystem suppliers.