IoT Technology Spend is Likely to Grow at 20% in Next 5 Years: Zinnov

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The addressed market share of IoT service providers stands at $4.9 billion and has recorded a growth of 28% in the past year

Currently, the spending on internet of things (IoT) technology and services is estimated at $201 billion and is likely to grow at a compound annual growth rate (CAGR) of 20% in the next 5 years, according to the research and analysis by Zinnov, a leading global management consulting firm.

The IoT adoption is being driven by increasing maturity to enable technologies around networking, storage and computing. The enterprises are also adopting transformative business models enabled by IoT to generate alternate revenue streams, according to Zinnov.

Zinnov released the ratings for Zinnov Zones 2018 – Internet of Things Technology Services that will enable the business leadership across various industries so that they can make informed decisions regarding selection of their partners across geographies for their IoT-led service initiatives.

Disruptive technologies accelerating IoT adoption

Pari Natarajan, CEO, Zinnov, while speaking about the rating, said, “The convergence of disruptive technologies is accelerating the adoption of IoT in enterprises. However, unclear returns on investments is an obstacle. Enterprises need to design a value proposition and return on investment (RoI) model to include relevant metrics around operational efficiencies and customer experience, in addition to enabling new revenue streams. Enterprises will need to adopt an open innovation fabric, and partner with various entities to achieve favorable outcomes.”

Besides analysing the IoT adoption state in enterprises, the report examines the current business of IoT service providers. The addressed market share of IoT service providers stands at $4.9 billion and has recorded a growth of 28% in the past year. The marketplace of IoT services is largely consolidated with the major 25 IoT service providers make up for over three-fourth share of the market.

On service provider opportunity, Pari, said, “Service Providers with end-to-end capabilities help enterprises manage the challenge of multiple vendors. The market being addressed by Service Providers is growing faster than the rate of IoT spend, as enterprises are increasingly seeking support across different layers of their IoT initiatives.”

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