Menu
As IoT sales surge, consumers still lead the way

As IoT sales surge, consumers still lead the way

Enterprise IoT will be mostly for specialized needs until next year, Gartner says

The internet of things will have nearly one-third more devices by the end of this year, though many of them won’t exactly be exotic.

There will be 8.4 billion IoT devices in use at the end of 2017, up 31 percent from the end of 2016, Gartner estimated on Tuesday. That's slightly faster than the growth rate last year. The number will keep growing at about the same pace until 2020, when there will be just over 20 billion devices, the research company says.

Nearly two-thirds of the connected objects in use this year will be consumer products, especially smart TVs, set-top boxes, and in-car devices such as entertainment systems and sensors that help insurance companies monitor driving. Home IoT gadgets like connected door locks and lightbulbs are still popular mostly among tech-focused early adopters, analysts say.

Enterprise IoT is playing out in a similar way, as vertical industries like manufacturing and health care lead the charge with more than 1.6 million devices for specialized needs, Gartner analyst Peter Middleton said. But in 2018, cross-industry IoT systems like connected lighting, heating and security, will start to overtake the vertical uses, he said.

Businesses already spend more than consumers on IoT, with hardware purchases hitting US$964 billion this year, Gartner says. Consumers will spend $725 billion.

IoT might grow even faster in the next few years thanks to more economical products from China, Middleton said. China’s electric utilities have done a surprisingly good job of driving down the cost of things like smart meters through competitive bidding among their suppliers, he said. What Chinese companies learn from that could lead to a wave of cost-effective products in North America and Europe that might accelerate the growth of IoT.

However, security worries might cool consumers’ love for smart-home gear, Middleton added. More incidents like last year’s DDoS attack from a botnet of insecure connected cameras and DVRs might slow down IoT growth.

“It could cause consumers to think twice about employing connected devices,” Middleton said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments