The Internet of Things:
a movement, not a market

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The Internet of Things:
revolutionizing the competitive landscape
IoT is more than just the latest buzzword about the future of business and technology.
IoT is transforming everyday business practices and opening new windows of opportunity.
IoT is here, and the future is happening now.

Did you know?

Global data transmissions
are expected to increase
from 20-25% annually to

The number of connected IoT
devices worldwide will jump
12% on average annually, fromnearly 27 billion in 2017 to50% per year, onaverage, in thenext 15 years.

125 billion in 2030.

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IoT: a movement, not a market
Despite the revolutionary potential of IoT, many companies have trouble
identifying a consistent IoT strategy. The reason IoT can often seem like anelusive concept is rooted in a simple yet often overlooked fact:

IoT is a movement,
not a market.
IoT is a process,not a product.

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The future is now: why IoT matters
IoT is here and growing exponentially.
IoT represents a constantly evolving movement of profound change in how humans interact with machines,
information, and even each other. The emerging IoT movement is impacting virtually all stages of industry andnearly all market areas—from raw materials to production to distribution and even the consumption of final goods.

>27 billion
Medical
337 million devices
20.8% CAGR 2013-30

Commercial &industrial electronics
4.3 billion devices
24.3% CAGR 2013-30

Automotive &Transportation
789 million devices
21.4% CAGR 2013-30

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connected IoT
devices in 2017

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5.2 billion devices13.8% CAGR 2013-30

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NextCommunications
14.6 billion devices
7.8% CAGR 2013-30

Computer
1.7 billion devices-2% CAGR 2013-30

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The future is now: why IoT matters (continued)
IHS Markit can help organizations develop strategies, discover new opportunities, and test IoT acrossthis dynamic movement.
Combining unmatched quantitative and qualitative IoT analysis and network testing withprimary research across the entire IoT value chain, IHS Markit helps companies develop current
and future strategies to uncover new growth opportunities across the converging IoT ecosystems.
822.6 million devices in 201719.61% CAGR 2016-2021

Smart Buildings

407.4 million devices in 201713.96% CAGR 2016-2021

Connected &Smart Home
Personal IoT>450 million devices in 2017>18% CAGR 2016-2021

Smart
Agriculture

Smart Cities

56.5 million devices in 2017
Smart Energy
Management356.5 million devices in 2017

Commercial
Transport

Industrial
IoT

23.24% CAGR 2016-2021

Intelligent
RetailCONNECT

13.62% CAGR 2016-2021

Connected Car

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103.4 million devices in 2017

Medical IoT

15.33% CAGR 2016-2021

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CREATE5The four foundational pillars of IoT
IHS Markit has identified four foundational, interconnected pillars at the core of the IoT movement:
connect, collect, compute, and create. The entire IoT is built upon these four innovational pillars.
‒‒ New Connections of devices
and information‒‒ Advanced Computation that transforms
collected data into new possibilities‒‒ Enhanced Collection of data that grows
from the connections of devices and information‒‒ Unique Creation of new interactions,business models, and solutions

Sweat

2021:
20 billon
Connectivity IC
Shipments

13%

Platform (PaaS)$10.7B

Lotion/Oil
Infrastructure (IaaS)$48.2B

Software (SaaS)$54.8B

62%

23%
34%

Cellular

Low Power Wireless

WILAN & Bluetooth Classic

Wired

New 5G & NB-IoT capabilities shiftdemand for celluar activity

25%
2017

Condensation

2016 Global Revenue

Emerging biometrics sensing
technologies provide moreconvenient and stronger security

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Cloud & XaaS driving new businessmodels and cost efficiencies

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2020

43%
■ Google Assistant■ Amazon Alexa■ Other

Artificial Intelligence drives Google
dominance in digital assistant market

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6IoT insights for your business: The IHS Markit advantage
With insights and analysis available across eleven key research areas and even more adjacent markets, IHS Markit is uniquely
positioned to offer an unmatched horizontal and vertical view of the IoT movement within and across each of the four IoT pillars.
Helping shape both short- and long-term strategies, the insights and analysis that IHS Markit provides mirrors the very connect,collect, compute, and create pillars of the IoT itself.
‒‒ We connect industries that are otherwise
viewed in isolation‒‒ We compute the impact of these changes tocreate new and unmatched insights‒‒ We collect more and better data‒‒ We create insights that show unique value
opportunities for each vertical market

AutomotiveElectronics

Displays

Enterprise & IT

Healthcare Technology

Manufacturing
TechnologyMedia & Advertising

Mobile, Consumer& Connected Devices

Mobile & Telecom

Power &Energy Technology

Security Technology

Semiconductors

Teardowns &Cost Benchmarking

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IoT insights for your business: The IHS Markit advantage (continued)
The depth and breadth of IHS Markit primary research allows for unprecedented analysis of IoT.
Our information helps inform both short- and long-term organizational strategies. IHS Markit can help you:‒‒ See how each individual IoT pillar is changing your market aswell as related horizontal and vertical markets and industries‒‒ Identify new growth opportunities and find competitive
advantages across the IoT value chain‒‒ Understand and anticipate market trends as connections,collection methods, computations, and the creationof new opportunities expand exponentially‒‒ Utilize IHS Markit’s industry leading primary research across theentire IoT movement.

New opportunities for cellular IoT

Smart Cities Projects by Type11%

Massive IoT

5G24%‒‒ Cheaper‒‒ 10+ year battery life‒‒ 100k devices/cell‒‒ Deep coverage

26%
10%

Mission-Critical

3%

26%

‒‒ Sub-1ms latency‒‒ High reliability & availability

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Energy & resource efficiency

Physical infrastructure

Mobility & transport

Healthcare

Governance

Safety & security

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8Learn more
IHS Markit Technology’s unique breadth and depth of industry researchacross multiple key vertical markets and technologies offers the mostcomprehensive insights and analysis of the IoT movement available.
Learn more about IHS Markit’s critical IoT insights andvisit our IoT feature page.

About IHS Markit
The Technology Group at IHS Markit is the leading source of information, insight and analytics incritical areas that shape today’s technology ecosystem—from materials and components, to devices
and equipment, to end markets and consumers. Businesses and governments in more than 150
countries around the globe rely on the deep market insight and expert independent analysis of our300+ industry analysts in technology sectors spanning IT, telecom, media, industrial, automotive,electronics, solar and more.
Copyright © 2017 IHS Markit. All Rights Reserved

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