The global Internet of Things (IoT) market will be worth $1.1 trillion in revenue by 2025 as market value shifts from connectivity to platforms, applications and services, according to new data from GSMA Intelligence. By that point, there will be more than 25 billion IoT connections (cellular and non-cellular), driven largely by growth in the industrial IoT market.
- Operator connectivity revenue will grow over the period but only account for 5% of the total IoT revenue opportunity by 2025, underscoring the need for operators to expand their capabilities beyond connectivity in order to capture a greater share of market value.
- Platforms, applications and services will continue to increase as a share of overall IoT revenue, capturing 68% of the total by 2025. This category spans multiple IoT layers such as platforms; application services; cloud; data analytics; and security.
- IoT professional services – which include system integration, managed services and consulting – will account for the remaining 27% share of revenue by 2025.
Sylwia Kechiche, Principal Analyst, IoT, GSMA Intelligence.