Internet of Things market spend likely to grow to USD 1.29 trillion in 2020: Report

LAS VEGAS, NV - JANUARY 04: Tim Baxter, President and Chief Operating Officer of Samsung Electronics America, speaks during a press event for CES 2017 at the Mandalay Bay Convention Center on January 4, 2017 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 5-8 and is expected to feature 3,800 exhibitors showing off their latest products and services to more than 165,000 attendees. (Photo by Alex Wong/Getty Images)

Digital technology like Internet of Things (IoT) is poised to transform the way businesses generate and consume data and the worldwide IoT market spend is expected to grow to USD 1.29 trillion in 2020, says a report.

A key factor driving its adoption is the increasing realisation of the value that IoT brings along improving customer experience.

In addition, most businesses today are either at a starting point in their IoT journey or are at some stage considering an IoT deployment which in turn will lead to significant uptrend in the adoption of IoT.

According to an IDC-Aeris report, the worldwide IoT market spend will grow from USD 625.2 billion in 2015 to USD 1.29 trillion in 2020, with a compounded annual growth rate (CAGR) of 15.6 percent.

"Today, IoT has gone way beyond tagging and tracking and has entered diverse domains and is enabling a range of business benefits," said Rishi Bhatnagar, President of Aeris in India.

The report further noted that the installed base of IoT end points will grow to more than 30 billion by 2020, from 12.1 billion at 2015-end.

"As CIOs, IT, and business leaders move towards transforming their enterprises and expanding their digital footprint, the role of IoT will be a lynchpin for causing disruption and driving transformation," said Arjun Vishwanathan, Associate Director for Emerging Technologies, IDC India.