A new report from Gartner predicts the myriad ways in which digitalization will significantly change the technology market through the “Internet of Things.”
Put differently, the non-traditional IT market is set for rapid expansion in the coming years.
Consider this: In 2009, there were 2.5 billion connected devices; most of these were mobile phones, PCs and tablets. In 2020, there will be over 30 billion devices connected, of far greater variety.
Based on Gartner’s estimates, IT spending in Europe, the Middle East and Africa (EMEA) will show an average annual growth rate of 2.2 percent through 2017,but the Internet of Things (things, people, places and systems) will create new markets and a new economy.
“The traditional IT market is not going to grow at a faster rate any time soon, if ever. Increased growth will come from the non-traditional IT market,” projects Peter Sondergaard, senior vice president at Gartner and global head of Research.
“While in 2015 the combined IT and telecom market will hit nearly $4 trillion, the incremental revenue generated by the Internet of Things’ suppliers is estimated to reach $309 billion per year by 2020,” Sondergaard adds. “Half of this activity will be new start-ups and 80 percent will be in services rather than in products. The Internet of Things is a strategically important market. It will accelerate fast and will drive both revenue and cost efficiencies.”