Enterprises will Pay for 76 pc of IoT Device Revenue in 2023

Analysts at Mobile Experts released the Big Picture of IoT report for 2018. The report demonstrates how the IoT market will achieve very healthy growth over the next five years—but nothing like the industry's rabble rousers claim.  

To be clear, this report illustrates how the installed base of "Connected Devices" (including RFID) will reach more than 16 billion by 2023, but the installed base of "IoT Devices" will be 8.6 billion in 2023.

"New technology has emerged that allows new IoT applications to grow," commented Principal analyst, Joe Madden. "Device networking has become a lot more practical, and hybrid computing applications are coming to market which provide real value for enterprises.  

"On the other hand, the concept of shared IoT networks serving multiple applications has not taken off as quickly as some thought, and certain vertical markets have remained separate despite possible technology synergy. We see the IoT market growing at a CAGR of 28 percent over the next five years—that's good growth, but not enough to revolutionize the wireless industry."

According to the Mobile Experts report, the number of IoT devices will grow from 700 million to 2.5 billion in 2023 due to strong growth in a few different market areas. The report details how the diversity in the market makes IoT less lumpy than other wireless markets. The report explains that as the IoT market is growing, other connected devices will also grow.

"Mobile operators will support an installed base of about 1 billion devices by 2023, with $140 billion or more in service revenues worldwide. This is a success scenario, growing from 0.3 percent of the total mobile market today to almost 10 percent. The IoT market is growing—but people should think about it as an incremental revenue opportunity, not a revolutionary market," commented Madden.