SCOTTSDALE, AZ – Revenues associated with network communications, sensing, and control functions in subsystems and objects attached to the Internet of Things (IoT) are forecast to grow 29% in 2015 to $62.4 billion. The jump follows a 21% gain in 2014, adds IC Insights, which released the figures.
IC Insights raised its projection for IoT-related revenues in 2015 to show stronger growth in wearable systems after the launch of Apple’s first smartwatches in April.
The launch of the Apple Watch has provided a major boost to semiconductor unit shipments and sales in the wearable IoT category, the research firm says.
Total IoT-related revenues (excluding Internet servers, network infrastructure, and cloud-computing systems) are now expected to rise by a CAGR of 21.1% from 2013 to 2018, reaching $104.1 billion at the end of the forecast period.
New connections to IoT are forecast to increase 40% in 2015, with 574 million new Internet connections expected to be attached to embedded systems, sensors, instruments, vehicles, controllers, cameras, wearable electronics, and other objects.
IoT connections grew to 410 million in 2014, up 45% from 2013.
The total installed base of connected things on the IoT is forecast to reach 13.2 billion units worldwide in 2015 versus about 3.1 billion humans using computers, cellphones, and other system applications over the Internet this year. By the end of the decade, more than 25 billion systems and objects are expected to be attached to the Internet versus about 4.4 billion human users.