The tech market intelligence firm International Data Corporation has issued an industry forecast that suggests digital signage is the biggest growth driver globally for the so-called Internet of Things.
The IoT market is expected to grow by 19% this year, says the forecast, with the biggest bump among vertical industries coming for the one that gets stuff on screens.
Digital signage use in retail outlets will grow from $6.0 billion in 2013 to $27.5 billion in 2018, a 35.7% five-year CAGR, as retailers continue to digitize the consumer experience.
IDC’s 2nd annual forecast, says a news release, looks at growing IoT use in 11 vertical industries, including consumer, retail, healthcare, government, manufacturing, transportation, and other industries, while also sizing IoT opportunities for 25 vertical-specific use cases.
Unlike any other research in the industry, the new forecast specifically highlights worldwide spending across IoT use cases, including smart appliances, automated public transit, remote health monitoring, digital signage, connected vehicles, and air traffic monitoring, among others. The comprehensive spending model was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.
Other key findings from the new forecast include:
- The IoT market in manufacturing operations will grow from $42.2 billion in 2013 to $98.8 billion in 2018, a five-year compound annual growth rate (CAGR) of 18.6%. Growth will be driven by ongoing efforts to increase efficiency and link islands of automation.
- The hottest US market is in connected vehicles, with 34.8% year-over-year growth anticipated in 2015.
According to Bob Kraus, Senior Research Analyst, Global Technology and Industry Research Organization, IDC, “Working in concert with both IDC’s technology and regional analysts, we have built IoT market models for key vertical-specific use cases from the ground up. This forecast is an invaluable tool for those business leaders evaluating the vendor opportunities in IoT for a 12-layer technology stack, which includes modules/sensors, software, installation/ongoing services, and connectivity.”
A forecast update is planned for November 2015 and will evaluate additional vertical-specific use cases, including smart agriculture.
I tend to be very skeptical of companies that generate report after report after report, but unlike what seems like the majority, IDC is focused on IT. Some of the other digital signage sector reports that come out through a year are generated by the same research mills that also issue reports the same day on things like insulin pumps and artificial insemination.
I’ve been doing a bit of work in the IoT market lately, and can see how IoT would be something of a driver. Signage puts a lot of devices in the field – players, smart screens, modems, routers, cameras, readers and on and on. Signage is also a rare industry where the benefits of all those connected devices can be readily apparent through dynamic data on screens.