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Internet of Things to Drive Wireless Connected Devices to 40.9 billion by 2020

Published: 11 September 2014 Category: Industry News

According to an updated market forecast from ABI Research, the installed base of active wireless connected devices will exceed 16 billion in 2014, about 20% more than in 2013. The number of devices will more than double from the current level, with 40.9 billion forecasted for 2020.

Internet of Things to Drive Wireless Connected Devices to 40.9 billion by 2020
According to ABI’s principal analyst Aapo Markkanen: “The driving force behind the surge in connections is that usual buzzword suspect, the Internet of Things (IoT). If we look at this year’s installed base, smartphones, PCs, and other ‘hub’ devices represent still 44% of the active total, but by end-2020 their share is set to drop to 32%. In other words, 75% of the growth between today and the end of the decade will come from non-hub devices: sensor nodes and accessories.”
 
From every technology supplier’s strategic point of view, the critical question is how this plethora of IoT devices will ultimately be connected. Until recently, the choices that product OEMs have faced have been fairly straightforward, with cellular, Wi-Fi, Bluetooth, and others all generally addressing their relative comfort zones.
 
Practice director Dan Shey added: “The recently introduced ‘Thread’ protocol is the clearest example of this convergence. It’s not only setting the bar higher for ZigBee in the 802.15.4 space, but also putting pressure on Bluetooth suppliers to enable mesh networking. In the meantime, startups like Electric Imp and Spark could do the same for Wi-Fi. Also, we shouldn’t ignore what’s going on with passive, proximity-based connectivity offered by RFID and NFC. For example, Thinfilm’s plans with printed electronics warrant attention.”