In 2014 IoT was sitting at the top of the Gartner Hype Cycle, with predictions of 50 billion connected devices and $20 trillion in investment by 2020 ramping up the excitement. Now, the dust is settling, and we can see a much clearer picture of how companies benefit from IoT, which companies are leading the pack, and just how far IoT has moved away from the buzz – and from hype to reality. 

The Numbers

In 2016 Berg Insight released its first IoT project overview, covering the 300 largest cellular IoT deployments. The projects included accounting for approximately 156 million active cellular subscriptions, which corresponded to as much as 39.2% of the total number of global cellular IoT connections at the end of 2016. More than 30 deployments had already surpassed one million subscriptions and the top ten projects accounted for more than 60 million units.

Now Berg Insight has released another report, which looks at the top-350 largest cellular global IoT deployments through the end of 2017, which account for more than 213 million active cellular connections – or as much as 33% of the total number of global IoT connections. More than 40 of those deployments topped 1 million units – and the top ten accounted for more than 80 million units. And Berg estimates that the number of these 350 projects alone will grow to 521 million units by 2022.

The Industries

Today, companies are not just scaling their IoT solutions, they are understanding that IoT is an essential part of their business strategy. But who are the biggest players when it comes to cellular IoT deployment?

Aftermarket automotive: 26,650,000, Active Units and 12.3% of projects

Fleet Management: 30,776,000, Active Units and 33.4% of projects

Healthcare: 8,870,000, Active Units and 3.1% of projects

Industrial: 22,854,000, Active Units and 5.4% of projects

OEM Automotive: 46,133,000, Active Units and 10.3% of projects

Smart homes/buildings: 29,501,000, Active Units and 10.0% of projects

Utilities: 34,090,000, Active Units and  8.9% of projects

Retail applications: 10,072,000, Active Units and 14.9% of projects

Fleet management is clearly the largest in terms of number of projects, while OEM automotive is the largest vertical. The top five are forecasted to more than double in the next five years, from 213.6 million units to more than 520.5.  Bergs predicts OEM automotive will enjoy the highest growth rates at around 32%, with industrial M2M, healthcare, and fleet management expected to experience CAGRs of roughly 17-18%.

The Takeaway

IoT is an established global market that is already a critical component in many industries and is invaluable to any business wishing to maintain or expand its foothold in the market. And because IoT will continue to evolve and grow in the coming years, it is important to understand how harnessing the power of IoT is vital to your company’s future.

Join us at IoT Talks on 27 November in Stockholm, where we’ll be discussing how IoT is no longer a just a buzzword but a reality – and how it can change your business.